One way to help your clients effectively plan for their long-term needs is to discuss the Term Conversion option.
CPS Midwest Life LIFE
Successful individuals between the ages of 30 and 50 with young families will find that permanent Life Insurance is an ideal asset.
If properly structured, permanent Life Insurance can produce:
- Tax free death benefit to loved ones
- Tax deferred cash accumulation and income
- Tax free benefits to pay for long term care expenses
On top of all these benefits, permanent Life Insurance also offers:
- Flexible payments
- No required minimum distributions
- The opportunity to earn premium discounts and rewards – for clients who engage in John Hancock’s innovative Vitality Program
After all the work, how many of your applications actually end up being placed in-force?
Eliminate any unexpected surprises during underwriting.
Completed forms are analyzed by our dedicated Underwriting Department.
Don’t assume all of your clients are healthy and will qualify at preferred best rates.
A unique feature on guaranteed universal life is a return of premium option, included at no additional charge within the policy, which provides clients with an exit strategy, giving them flexibility for their future.
How does this rider work?
4 Cash Benefits For Your Life Insurance Clients
- For Retirement. A 45-year-old insured receives 20 years of death benefit protection and at age 65 receives her paid premiums back and uses the cash to supplement retirement income.
- For College Costs. The insured bought two permanent policies and currently has young children. One of the policies was a GUL policy with the refund option available. When the children are at the age to attend college, the death benefit needs of the family change. He can surrender his GUL policy in year 15, 20 or 25 and use the cash to help pay for the child’s college education.
- For Business Planning. The insured owns her own business and has a key employee, Tom. She purchases a GUL policy to protect her business if Tom died unexpectedly. In year 18 of 20, Tom resigns – and two years later she will receive all of her premium payments back.
- To Pay-Up Another Policy. A 55 year old has a need for $5M in life insurance. He purchases two GUL policies, one for $2M and another for $3M. When he turns 75, he no longer needs as much coverage. He surrenders the $2M policy and uses the cash value to pay up the remaining policy. The insured still has $3M of insurance with no further premiums due.
Recently, statistics have been released to help better identify the types of companies that typically inquire about business evaluations.
The resulting top five industries are:
- Professional, scientific, and technical services
- Wholesale trade
- Retail trade
When owners use the business evaluation process, results can lead to significant opportunity.
The client does not need to convert their entire term policy at once and can make use of multiple partial conversions to help keep premium costs low while providing added flexibility.
Many of your clients do not know that their term coverage includes this feature.
Don’t set your term sales on auto-pilot.
Consider the following benefits offered by many of the permanent life insurance products available on the market today:
- Tax-free death benefit, cash growth, income, and long-term care benefits
- Market like returns with no downside market risk and flexible funding
- No required minimum distributions or penalties for pre 59 1/2 withdrawals
- No phase-outs for high income earners
- Potential to earn premium discounts and rewards through healthy lifestyle activities
You will often find that the current policy is grossly underperforming due to the decrease in interest rates and that the policy is in danger of lapsing without increased premium payments.
How does it work?
Let’s start with the fundamentals, is there a life insurance need?