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162 Executive Bonus – More To Life Than Just Life

In addition to the simplicity, ease of implementation and administration, and plan design and funding flexibility, an executive bonus arrangement can meet an array planning needs if presented properly to the employer and comprehensively to the executive.
 
Life for Life or Life for Less
 
The need to protect against death isn’t always one that lasts a lifetime. If coverage is placed in anticipation of future estate tax liability, then the policy better be there until the end – unless an insured wants to bank on the repeal of the inheritance tax during some rare moment of temporary governmental sanity.
 
On the other hand, if the purpose is merely to replace income lost due to death prior to retirement, then term insurance may be a better and more economical choice. There is no reason a plan cannot fund term insurance.
 
An Additional Resource for Retirement
 
In an age of restrictions on access to qualified retirement planning opportunities for the highly compensated, more employees are using over-funded permanent policies as a sort of “Super-Roth IRA” to build cash that will be available on a tax-advantaged basis, and to supplement other retirement fund sources in later years.
 
A plan participant has the freedom to choose whether he or she wants to design their policy under slim or fat funding scenarios, in order to meet their particular needs.
 
Sometimes “Policies” is the Best Policy
 
It may better suit multiple needs if the amount of the bonus to an executive is used to purchase multiple policies; e.g. a term policy to protect for income replacement, and a permanent product for lifelong needs. At retirement, the term policy can lapse or can be converted if the need for permanent protection has increased.
 
Providing for a Long-Term Care Event
 
A participant should consider the option of adding a rider that will allow early access to benefits should long-term care be needed. Withdrawals for long-term care expenses may frustrate the effectiveness of the policy, if the employee is over-funding the contract for use as a supplemental retirement vehicle.
 
Again, this problem can be avoided by using a two-policy executive bonus arrangement – one that is over-funded for retirement purposes, and the other with a LTC rider.
 
And Maybe a Hint of Disability Protection
 
The waiver of premium rider has been pushed to the side in most sales presentations today, but its use can assure that policies will be maintained in the event of a disability, and even if employment ends prior to retirement age for that reason.
 
To Infinity and Beyond – A Bonus is a Bonus is a Bonus
 
The executive bonus can be used to fund any vehicle agreed upon by the employer and the employee. If additional life coverage is not needed, then consider funding an annuity or a free-standing long-term care policy. All aspects and advantages of a 162 bonus plan still apply.
 
Call for design and sales support for a business prospect that needs a simple, non-invasive benefit plan for key employees.
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5 Essential Life Insurance Questions Every Client Should Answer

When it comes to securing a financial future, life insurance is a key piece of the puzzle. However, choosing the right policy isn’t just about picking a plan — it’s about understanding your clients’ needs and making informed decisions.

To ensure you’re getting the best coverage for your clients and their loved ones, it’s important to ask the right questions.

Here are the 5 essential Life Insurance questions every client should answer to make a confident and well-informed choice:
  1. If something happened to you, how would your family manage financially?
  2. If you could get affordable coverage that secures your family’s future, would you be open to exploring options?
  3. Have you heard of life insurance that pays policy holders for healthy living?
  4. Will your business suffer financially if you lose a key employee?
  5. Do you provide group term coverage to all your employees? Would you be interested in rewarding key executives with permanent coverage for less than the cost of term insurance?

For more information or assistance with a case, contact your Life Sales Associate today!

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High BMI Weighing You Down?

Our Underwriting Department can help you make the sale for your clients whose heavy build may be weighing down a chance for a favorable underwriting decision.
 
The reality is…
  • 71% of American adults are considered overweight and nearly 40% considered obese
  • 20% of American adolescents ages 12-19 are overweight or obese
  • 18% of American children ages 6-11 are overweight or obese
Here are some case examples from A+ carriers that may surprise you:
  • A male non-smoker, 5’11” and 265 lbs. and in good health otherwise could qualify for STANDARD rates
  • A female non-smoker, 5’4” and 235 lbs. could qualify for STANDARD rates assuming no co-morbidities (heart disease, diabetes, sleep apnea, etc.)
Call our Underwriting Department today to turn real life cases into success stories for you and your client.
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4 Ways LTC Insurance Provides Tax Advantages

When meeting with clients to discuss the benefit that a Long-Term Care (LTC) Insurance policy has on their overall financial plan, tax deductions might not be the first thing you emphasize, but should be one of your top five discussion points.

Taking the time to explain the tax advantages may provide the tipping point for clients who are hesitant about purchasing a policy.

Here are a few scenarios on how to approach each type of client:
 
The Client On The Fence
 
Many states offer a deduction or credit on paid LTC Insurance premiums, which can make purchasing coverage more attractive to your clients. For example, in the state of Ohio, residents are able to deduct the entire annual premium for their LTCI policies on their tax returns.
 
The Planner
 
If you are working with clients on their tax strategy, consider turning their tax refund into an LTC Insurance premium payment. It’s a great way to plan for the cost of the insurance and can make annual premium payments a non-event.
 
Business Owners
 
When a C-Corporation purchases a policy on behalf of its employees, and their spouses or dependents, the corporation is entitled to take 100% deduction as a business expense on the total premiums paid. If self-employed, clients can deduct 100% of their out-of-pocket LTC premiums up to the age-based Eligible Premium amounts*.
 
Current Policyholders
 
Clients who already have an LTC Insurance policy may not know about the tax deductions available to them. So during your annual review, be sure to educate them about a missed opportunity to take a tax deduction.
 
Contact your Long-Term Care Specialist today to learn more about the tax advantages of LTC Insurance.
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Income Protection Could Never Be More Affordable Than Right Now!

When is the best time to buy an income protection plan? Could it be when my client is at the top of their earning years? Or when they are just starting their career?
 
The answer is, right now, before any health concerns arise that would preclude them from securing this valuable coverage. Before the premium is too expenses due to older ages.
 
Young couples (ages 30 to 50) are very important prospects for income protection. Start the conversation about income protection with young couples who have bought a home or are starting a family. This is the best time to build a foundation of financial protection.
 
Individuals in this age group still have a lifetime of earning potential. Income is their most important asset. Their lifestyle and long-term financial plans depend on the ability to work and earn a living.
 
Example: A 33 year old client earning $60,000 annually will earn $3,463,811 by age 67 with a 3% annual increases. Many would agree that this is an asset worth protecting.

An illness or injury that keeps your client from working can quickly impact other assets such as savings and retirement funds.

These resources could be depleted depending on the time needed for recovery and return to work. It could take years to rebuild these assets.
 
Who to Prospect:
  • Single, fulltime wage earners
  • New home owners or just started a family
  • Primary wage earners in families
  • Your current Life Insurance Clients
  • Auto policy owners with higher limits
Solution:
  • Talk to your clients about the value of their ability to earn an income. Explain what’s at risk. Potentially a lifetime of earning should they lost that ability due to illness or injury. (whatsmyeiq.org)
  • Show how disability income insurance can pay them an income while they recover to help pay expenses and protect their other assets.
  • Let your clients know that there is never a better time than now to purchase this coverage. The premium will never be lower and typically their health will never be better while they are still young.
We have a unique quoting tool (https://cpsinsurance.assurity.com/) and client approved marketing tools to help you prospect your current clients and reach new potential clients. Contact your Disability experts to learn more about growing this part of your business.
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When A Policy Owner Dies

The circumstances surrounding the case weren’t unusual. A single grandparent wanted to purchase coverage on his five year-old grandchild. He loved his son and daughter-in-law, the parents of the proposed insured, but felt they might be tempted to access the cash values during tough times if they were given control of the policy.
 
The agent involved suggested creating a trust for the contract, but the country-time lawyer involved didn’t like living trusts (because, he said, “Nobody ever takes care of them!”) so he drafted a new will for the grandfather with a testamentary trust that could accept the policy on his death and directed that the grandfather be made the policy owner.
 
Two immediate potential problems should have been considered by the trust-resistant attorney:
 
First, if the insured child died first then the proceeds would become part of the grandfather’s estate. Second, if the grandfather died first the policy would be subject to the unnecessary rigors of the probate court before settling into the trust created by the will – perhaps then only to be managed as poorly as all those living trusts the lawyer had experienced.

There’s an old proverb somewhere that says if something can even be worse than anticipated, it probably will.

In this case the policy language had a little surprise for all involved that rendered what would play out even more undesirable and more unmanageable than any imagined!
 
The grandfather did die first. His will was submitted to probate and the agent and the executor took steps to have ownership of the policy transferred to the newly activated testamentary trust under the will.
 
The carrier title department responded [underscoring added]:
 
We understand that [policy owner] may have provided for these policies in his will, however, the ownership of the policies as stated on the application automatically reverts to the individual insured [the still living minor grandchild]. We must adhere to what the contract states and not what was indicated in his will. In the alternative, if they want the ownership to change to the parent [of the insured minor] as indicated in the email below, we would need documentation from the court proving who is the legal guardian of the minor’s property which is different than being the legal guardian. This is something they would have to go to court for and once they obtain the court order, the legal guardian of the property can change the ownership of the policy. Otherwise, we cannot allow any transactions on the policy until the child is at least 15 years old.
 
A response like that will tend to take the ginger out of one’s step! Not only is control of the policy for the next ten years attainable only through a laborious court process, but even then the result would probably be exactly what the grandfather was attempting to avoid – ownership of the policy by the parents of the insured child.
 
Policy provisions that appoint an insured as a default owner are more common than most agents would think. The issue doesn’t arise often because the policy owner is commonly 1) the same as the insured, or 2) a party who cannot die, e.g. a trust, or 3) a person younger than the insured who usually doesn’t die first. But it occurs enough that at least one major carrier has an appointed person who does little more than handle the “Dead Owner” cases.
 
We rightfully agonize much over the choice of contingent beneficiaries. The same attention should be given to the need for and choice of contingent owners when needed. Call with any questions regarding this issue on potential or existing cases.
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Affordable, Fast, And Flexible Life Insurance In Minutes

The primary objective of term insurance is to provide coverage that is efficient, flexible, transparent, and affordable. One exceptional product has achieved these attributes. Furthermore, this product successfully approves 70% of clients through non-medical underwriting.

A fully online application process allows applicants to secure coverage in as little as 18 minutes, offering rapid access to life insurance protection.

The plan includes flexible term lengths of 10, 15, 20, or 30 years and coverage amounts ranging from $100,000 to $5 million. Premiums are fixed and remain unchanged throughout the duration of the selected term. Additionally, the policy features a conversion option within the first 10 years or before the insured reaches age 70, whichever comes first.

A key highlight is it’s adaptable underwriting process.

This product can accommodate diverse health profiles with options such as instant approval, accelerated underwriting, or full underwriting. Applicants aged 60 or younger seeking coverage of $5 million or less are eligible for instant approval, further streamlining the process.

Transparency is a priority, with clear and consistent communication provided to both clients and agents throughout the application process. Regular updates ensure timely application completion, enabling carriers to deliver decisions quickly, whether through instant approval, accelerated underwriting, or full underwriting.

Finally, affordability remains a key focus for this product. Recognized by Forbes and USA Today as ‘Best for Term Life Rates’, it has established itself as a market leader in providing competitive and low-cost solutions

For clients looking for a simple, affordable life insurance solution, this product delivers value, efficiency, and peace of mind. Reach out to your Life Insurance Consultant to explore how this product can benefit your business.

 

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Underwriting Niches Lead To Opportunities To Place More Cases

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!
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The A-B-C’s Of The Cash Benefit

Everyone knows what cash can do. Use this simple concept to demonstrate the value of purchasing a Long-Term Care policy that includes a built-in cash benefit.
 
Take out a piece of paper and write on it vertically: A, B, C.
 
A is for Assets
 
When the need for Long-Term Care first arises, many people worry they may not have assets available to pay for care they need. This is especially true for people who may have to liquidate assets like stocks, CDs or even property to pay for their care.
 
B is for Burden
 
Families typically step in to help a loved one who needs Long-Term Care. But that may be difficult for adult children who have their own family and career responsibilities. If your clients are like most people, the last thing they want to do is to become a burden to their family.
 
C is for Choices
 
A Long-Term Care Insurance policy that offers a cash benefit can help someone receive care in the comfort of their own home.
 
The cash can be used however its needed most. Whether it’s to pay for an airline ticket or a tank of gas so a child can help out or for housekeeping or meal delivery services.
 
With one of our strategic carrier providers, the cash is available to you on day one. That means when you become eligible for benefits under your policy, there’s no waiting period to qualify for cash. This is something you won’t find from other insurance companies.
 
In addition, should your client need a higher level of care someday, they always have the choice to switch from the cash benefit to a traditional reimbursement benefit, which reimburses for the actual Long-Term Care services expenses incurred.
 
For more information about this sales idea, contact your LTC Specialists today.
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Three Questions That Lead You To The DI Sale

Selling Disability Insurance (DI) is a delicate process. You know your clients need the protection, but the ‘hard sell’ angle can be too aggressive. Today, we are working in an environment where a subtle approach has proven much more effective when opening the conversation about Disability Insurance.

Instead of drilling your clients with horror stories about the difficulties they will face without having a DI policy in place, ask them the right questions in order to make the DI sale.

Three Questions That Will Start The Income Protection Conversation
 
Do you have an income protection plan, if you were to get sick or hurt and couldn’t work?
 
“No,” will be the response you will most likely hear, leading you to question two. However, you will have a percentage of clients that may have an Employer funded group plan – and most employees with Group Long-Term Disability couldn’t tell you what their employer sponsored plan would pay if they went on claim. Simply suggest they send an email to their HR dept for an electronic copy of their benefit book.
 
Most group plans will pay 60% of their earnings and is fully taxable to maximum benefit. After taxes, that monthly benefit plummets to around 43% of their earnings – a substantial pay cut, and many aren’t able to sustain their standard of living at only 43%. The opportunity is to have them buy a small personal policy to bring their income up to 65 to 70%.
 
How long would you be able to make your monthly bills if you couldn’t work?
 
This is where we would use the subtle approach to start painting the picture of what it is going to look like after an illness or accident. Ask your client how long their Savings, Retirement Plan, and Credit cards would carry them. 3 months? 6 Months? 1 year?
 
And where is the money going to come from after that?
 
Wait to let them answer. You are still painting the picture. Let your client know that you have an affordable plan that would protect their income if they got sick or hurt. Simply ask if they would like to learn more about it. You will have a percentage of clients who ‘get it’ and will want to learn more, and you will have those that don’t care. And that’s okay – as long as you make the effort to provide them the protection, when they are ready to buy, they will come to you.
 
These three simple questions will paint the picture for your clients and help identify their need for an Income Protection Plan. Please contact your DI Sales Rep for support with your Income Protection Business.

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