CPS Insurance Services

About CPS Insurance Services

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Questions? Contact our Sales Teams at (949) 863-0700. Life Insurance - Option 1 / Annuities - Option 2 / LTC - Option 3 / DI - Option 4.

Posts by CPS Insurance Services :

March 25, 2026

$50M Key Person Disability Placement

CPS Insurance Services

Capital Management Firm Case Study

Client:

A Southern California based Asset Management & Investment firm managing a portfolio of $17 billion.

Situation:

The CEO wears many important hats—CEO, President, Chief Investment Officer, Market Strategist—as well as overseeing all the firm’s U.S. equity and hedge fund strategies. In the past 10 years, the firm’s assets under management have risen from $3.5 billion to $17 billion dollars, thus elevating the overall importance of the key person’s responsibilities.

Assessment:

Chief Investment Officers in the hedge fund universe are unique human capital assets. Investors invest in a fund based largely on performance, which is attributed to the CEO. In the event of a serious disability, cash would be needed to retrain key staff as well as manage the winding down of the fund if a permanent disability were to strike. With the obligation of succession planning resting on the shoulders of the Board of Directors, the Board saw a need to initiate additional coverage in the event the CEO was no longer able to perform his duties. The Board’s directive stipulated that an accelerated divestiture clause be built into their investment agreements, which would allow investors to accelerate the rate at which investors can pull their funds should the fund manager become incapacitated.

Solution:

A plan was designed for a $50 million key-person disability insurance policy, payable to the company in a lump sum after 12 months, should the CEO be unable to perform his duties.

Result:

With a reasonable level of key person disability insurance protection now in place, an additional succession planning strategy was created to manage the associated risks involved if the CIO were seriously disabled. A number of sub managers were also identified as critical, and additional protection was likewise sought for four additional investment managers.

To the Producer:

The premium on this case exceeds $200,000 annually plus taxes and fees. Please keep in mind, while it’s a great case and one we want to replicate often, many of the key person disability policies we write are your $2M/$5M/$10M placements, which are almost always cross-sold in conjunction with key person life insurance.

Have you identified an opportunity or two within your client base? Please contact your Disability Specialist for assistance, or with any questions you may have.

March 24, 2026

Bonus FIAs: The Secret To Getting More Roth Conversions

CPS Insurance Services

Over the past two decades, the U.S. tax landscape has shifted meaningfully, and the trend has been unmistakable: higher taxes for many Americans, particularly those approaching or already in retirement.

Looking back 20 years, the top federal income tax bracket in the early 2000s was 35%. Today, the top marginal rate stands at 37%, and that increase does not account for additional layers such as the 3.8% Net Investment Income Tax, higher Medicare surtaxes, and the steady rise in state and local taxes.

In addition, required minimum distributions (RMDs) now force retirees to recognize taxable income later in life—often at a time when Social Security benefits, pensions, and investment income are already pushing them into higher brackets.

Tax brackets themselves have also become more compressed. While rates may appear historically “reasonable,” many deductions have been reduced or eliminated, and the standard deduction structure has shifted who actually benefits. The result is that a larger portion of retirement income is exposed to taxation, and future tax increases remain a real possibility as government debt and entitlement obligations continue to grow.

This environment has made tax diversification just as important as asset diversification—and that is where Roth IRAs become particularly compelling.

A Roth IRA offers something increasingly rare: tax-free income. Contributions (or converted dollars) are taxed upfront, but once inside the Roth, growth is tax-free, withdrawals are tax-free, and there are no RMDs during the owner’s lifetime. For retirees concerned about future tax rates, this creates certainty and flexibility—two things traditional IRAs simply cannot offer.

The challenge, of course, is that converting pre-tax IRA dollars to a Roth IRA triggers a taxable event. For many investors, the idea of writing a large check to the IRS upfront can feel like a deal-breaker.

This is where bonus annuities can play a powerful role.

Certain fixed indexed annuities offer upfront bonus credits that can be as high as 30%. These bonuses are immediately added to the account value and can significantly offset the taxes owed from a Roth conversion. In practical terms, the bonus can recoup much—or in some cases nearly all—of the conversion cost, allowing investors to reposition assets into a tax-free environment with far less out-of-pocket impact than they might expect.

When structured properly, this strategy combines three powerful benefits:

Addressing today’s known tax liability before future rates potentially rise
Creating tax-free income and legacy assets through a Roth IRA
Using annuity bonuses to materially reduce or neutralize the cost of conversion

In a world where taxes have steadily increased and uncertainty lies ahead, proactive planning matters. Leveraging Roth conversions alongside bonus annuities can be an effective way to take control of future tax exposure, preserve retirement income, and create long-term financial confidence.

Contact us to discuss which products we are seeing success with in the Roth Conversion market and what tools are available to you to share this idea with your clients.

March 24, 2026

Life Policy Beneficiaries – 7 Common And Costly Mistakes

CPS Insurance Services

The beneficiary designation is one of the smallest areas on an application form. It is also the site of some of the biggest mistakes.

Here are the seven most common:

Making the estate the beneficiary – Death proceeds are turned over to the Probate Court where they will be subject to creditor claims.Distribution is according to the insured’s Will and could take two years or more.Everything is a matter of public record.
Failing to name a contingent – The beneficiary will not always outlive the insured, true half the time when married couples have cross-owned policies.
Multiple beneficiaries, improper designation – Is distribution to be made equally or disproportionately?Is surviving the insured necessary to collect?If not, does the share pass per stirpes or per capita? Full instructions are necessary, even if it means an addendum to the application.
Multiple beneficiaries, insufficient allocation – The total death benefit must be disbursed.Carriers insist that shares be on a percentage basis, not in dollar amounts, adding up to 100%.
Designating minors – Every state prohibits distributions before the age of legal majority.A custodian must be appointed for a minor according to the state’s Uniform Transfers to Minors Act.
Insufficient identification – Make sure there is sufficient information on the application or upon delivery to assure the carrier can find the beneficiary.
Ignoring changed circumstances – When beneficial interests change with events it should be reflected with beneficiary changes.The most often overlooked are in response to a divorce.

Plain and simple, beneficiary designations are tricky. We will help you get them properly drafted in a manner approved by the carrier. Contact Tom Virkler, JD – Director of Advanced Markets, at 706-614-3796 or tom@cpsadvancedmarkets.com.

March 23, 2026

The New Insurance Policy – Do Your Clients Have It?

CPS Insurance Services

Today’s life insurance products are very different from past product offerings. We need to educate and share details of how today’s options can help solve the real life problems modern families face.

Are we asking the proper questions? Are we creating enough of a sense of urgency to move clients to take action?

50% of American households acknowledge they don’t have enough life insurance – LIMRA

How do we turn a non-buyer of insurance products into a client who sees value in the products we offer?

It has become increasingly difficult for a client to identify the proper products, let alone the correct amounts of insurance coverage they should own. In most cases, the consumer is intimidated with the process of buying insurance, or at least that is what past research indicates.

We need to make the process appealing and as ‘client-centric’ as possible. If they are buying insurance, let’s do what it takes to make sure they buy it from you.

21% of consumers had no idea what type of coverage they had bought – LIMRA Over 60% of life insurance shoppers are proactive; most often they want to either review coverage or are impacted by a specific life experience which triggered the need in their mind – LIMRA

Many families are looking to protect assets, accumulate cash savings for retirement and prepare for the possibility that they may require professional care at older ages. We offer a product which can address all of these concerns – a single product that can meet all of these needs in one transaction!

How do we find clients?

Do you know someone who needs retirement planning?
Do you know someone who has taken care of a loved one?
Do you know someone who wants to leave a legacy behind?

Do you have anyone who fits one or more of the three descriptions above?

We want to help you deliver for your clients. Access to accumulated cash value; money for long-term care services and/or tax favored money for heirs – let’s take a close look at how insurance can secure your clients’ financial futures. Contact your Life Sales Rep today.

March 20, 2026

Underwriting Program Improves Sub-Standard Ratings

CPS Insurance Services

One of our A+ rated carriers has underwriting crediting program that will benefit more of your clients.

Here’s an example:

Seeking term coverage
45-year-old male, non-tobacco
History of bipolar disorder with occasional minor episodes treated with medication on an as-needed basis – no daily medication
History of elevated cholesterol with favorable cholesterol ratio of 3.17
Family history of early heart disease – had a coronary artery calcium score test 3 years ago showing a zero calcium score (no heart disease)
Favorable height/weight 5’10” 174 lbs. (BMI 25.0)

Initial assessment is Table B, but with the application of this crediting program, a more favorable underwriting decision is possible. Underwriting outcome; Standard!

Our Underwriting Team is here to help with all your impaired risk cases. Please contact us today for more information about this carrier and how we can help boost your sales.

March 19, 2026

3 Key Questions Demonstrating The Need For LTC

CPS Insurance Services

Finding reasons why your clients need LTCi can be a challenge. You want them to understand the importance and need for the product, and also how it can impact them and their family.

Ask these 3 questions to your prospective clients to drive the point home on why having a LTCi policy is so important.

1. What’s your plan?

Your client has probably not thought about what they will do when they reach an age when they need help with tasks they are used to doing themselves. Have they thought about where they will live, or who they will live with? These planning questions are a great starting block to getting the LTCi sale.

2. Who do you know?

Ask your client if they know someone that has been in a LTC situation, or maybe they have even been in one them self? If they have seen the emotional, physical and financial burden a LTC situation can have, they most likely do not want the same to happen to their family.

3. How will you pay?

Does your client know that health insurance does not cover LTC services? Explain to them that a LTCi policy can give them the care they want and prefer. A LTCi policy can also make sure funds are available when your client needs them, then they won’t diminish their retirement savings or have to liquidate assets.

These questions are just the beginning on how to demonstrate to your clients the need for LTCi. Be sure to ask these questions and stress the need of LTC on your next appointment.

Our LTC Team is available to answer any questions you may have. Contact us today.

March 18, 2026

Can Your Clients Afford A 58% Pay Cut?

CPS Insurance Services

A majority of employees working for large companies have Disability Income protection provided by their employer. However, they are unaware of how much coverage their plan would provide if they were to be too sick or hurt to work.

Many individuals live with a false sense of security regarding their Income Protection plan – believing that if an accident were to occur, they would be financially set until they could return to work.

The Reality

A typical group Disability Insurance policy covers 60% of their base income. This can be a good income replacement safety net. However, benefits are usually taxed and the remaining after-tax monthly benefit could be as little as 42% of a person’s regular base income.

For highly compensated employees, this amount could be even lower if there is a monthly benefit cap, or if incentive pay or bonuses are not covered by their plan.

The Solution

Fill the gap by offering an Individual Disability Income insurance policy in conjunction with the Group Long-Term Disability (LTD) insurance.

This additional coverage can bring your client’s income back to approximately 80% of their pre-disability earnings and can be offered on a simplified issue basis. With no exams or tax returns, they can buy up to $7,500 off additional monthly income protection.

Plus, when three or more lives are covered with Individual DI insurance policies and share a common employer, all are eligible for at least a 20% discount on unisex rates.

So, when your client says they don’t need an Income Protection plan because they are already covered through work, don’t let that be the end of your conversation. Find out exactly what their plan would pay them if they were unable to work, and if those benefits would be taxable to them. A small amount of additional coverage can put them right where they need to be: financially sound.

For more information on how you can provide your clients with the coverage they need – contact your Disability Income Specialist today.

March 17, 2026

Three Sheets Of Paper, Or Three Sheets To The Wind?

CPS Insurance Services

Those familiar with Tom Clancy’s novel Debt of Honor will recall how a radical Japanese financial conglomerate sabotaged the U.S. securities markets by electronically erasing a full day’s trading records. But a solution emerged when Ryan’s wife, Caroline Ryan, MD, advised, “If something isn’t written down, it didn’t happen.” Then all proceeded normally as the financial world simply picked up where prices from previous day had left off.

Dr. Cathy’s remark is nowhere more pertinent than in your clients’ estate planning.

It doesn’t matter how firmly resolved clients are in the desired future conduct of their affairs, or how many people they have told; if it isn’t written down, it doesn’t matter, the difference here being there is no safety net for failure to put pen to paper.

While we don’t give legal advice, we do well to alert our clientele that at least three written and properly executed documents are the necessary foundation of any estate plan:

Durable Power-of-attorney – Who has authority to handle your clients’ affairs when circumstances (e.g. foreign travel) or lack of mental capacity prevent them from doing so?

Health Proxy (or Living Will, or Health Directive) – Who will make medical decisions (up to and including life or death determinations) for your clients if they are unable?

Last Will & Testament – How, when, and to whom will your clients’ property be distributed in the event of death?

Without written directions, a client’s future affairs are in the wind, with no assurance of results. We will get on the call with you and your clients to discuss the importance of these documents and how they can be effectively coordinated with all that you do for them. Contact Tom Virkler, JD – Director of Advanced Markets at 706-614-3796 or tom@cpsadvancedmarkets.com today!

March 16, 2026

The Life Insurance Triple Play

CPS Insurance Services

When you mention life insurance to your clients, chances are the first thing they think about is protecting their families in case they should die prematurely. Yet the reality is that they can face just as much risk by living too long.

What if they outlive their retirement savings? Or become unable to take care of themselves in their old age?

Life insurance with a long-term care (LTC) rider can help provide benefits for your clients whether they live or die.

The first benefit provided by life insurance is the death benefit: a source of immediate liquidity payable at death that can help provide income replacement, fund estate settlement costs and repay existing debts.

But the right kind of life insurance, properly structured, also generates a significant cash value. The potential cash value can be accessed at retirement via policy loans and withdrawals to supplement your client’s retirement income.

Finally, if the policy is purchased with an LTC rider, it can also provide funds to cover long-term care benefits, such as nursing home costs and/or skilled in-home nursing.

With such a policy, your clients have now covered three major risks: dying too soon, living too long and living with an impairment.

Contact your Life Sales & Marketing Associate today for more information.

March 13, 2026

Underwriting Niches Lead To Opportunities To Place More Cases

CPS Insurance Services

We know how to elevate your sales. We are experts when it comes to new and innovative underwriting changes. We also know which carriers to recommend for your challenging clients.

Bottom line, we find ways to say “yes” to your cases.

We represent carriers that can offer:

Right away to individuals after treatment is completed for early stage prostate and breast cancer
Preferred Non-Smoker rates to your clients who use marijuana on a regular basis
Up to $3 million of term or permanent plan coverage to your healthy clients without any exam requirements, and can still offer their Super Preferred rates
Standard or even better to your clients with Type 2 diabetes
Preferred classes to your overweight clients
Preferred Best rates even if someone’s total cholesterol level is up to 300
Preferred Best rates for someone who is treated for depression
Preferred or better for your clients treated for sleep apnea using their CPAP machine on a nightly basis
Non-Smoker rates to your clients who smoke cigars or pipes or use tobacco chew on a regular basis (even daily) and have a positive specimen for nicotine

Contact the Life Underwriting Team – get some Preferred Best service as we help you with your next case!

CPS Insurance Services

About CPS Insurance Services

Posts by CPS Insurance Services :

Client:

Situation:

Assessment:

Solution:

Result:

To the Producer:

This environment has made tax diversification just as important as asset diversification—and that is where Roth IRAs become particularly compelling.

This is where bonus annuities can play a powerful role.

When structured properly, this strategy combines three powerful benefits:

Here are the seven most common:

Are we asking the proper questions? Are we creating enough of a sense of urgency to move clients to take action?

How do we turn a non-buyer of insurance products into a client who sees value in the products we offer?

How do we find clients?

Do you have anyone who fits one or more of the three descriptions above?

Here’s an example:

1. What’s your plan?

2. Who do you know?

3. How will you pay?

The Reality

The Solution

While we don’t give legal advice, we do well to alert our clientele that at least three written and properly executed documents are the necessary foundation of any estate plan:

Life insurance with a long-term care (LTC) rider can help provide benefits for your clients whether they live or die.

We represent carriers that can offer:

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