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Open the Door to Small Business Sales

Selling Long-Term Care Insurance to small business owners is not like the emotional roller coaster sale it is when selling to individuals. Business owners tend to look at this as a logical discussion of how you can help with their business finances.
 
Many are always looking for a way to save on taxes so a great way to open the door to an LTC sale would be, “If I could show you something that could help your business reduce its tax burden, would you be interested?”

All businesses can deduct LTC Insurance premiums paid using business dollars.

Depending on the tax structure of the business, the owner can either deduct the actual premium or eligible premium.  How?
 
Owners of C corporations can deduct the actual premium paid on a LTC Insurance policy for the owner / employee, spouse, dependents and a designated class of employees.
 
Self employed business owners such as sole proprietors, partnerships or LLCs can deduct the eligible premium paid for the owner, spouse and dependents. The eligible premium is established annually based on the medical care components of the Consumer Price Index.
 
This opportunity allows you to approach any type of small business because you are able to offer a money saving solution. Be sure to approach small business owners with a plan that provides essential LTC coverage and allows them to take advantage of federal tax incentives.
 
For more information about selling LTC to small business owners contact your LTC Specialist today.
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Why Business Owners Should Invest in Disability Buyout Insurance

When a business has multiple owners, Disability Buyout Insurance provides funds to buy out the disabled owner’s share of the business. This ensures that the business can continue operating smoothly without financial strain.

The Importance of Disability Buyout Insurance

Without this insurance, a disabled owner’s share of the business could become a burden, leading to potential disputes and financial instability.

Who Needs Disability Buyout Insurance?

Any business with more than one owner can benefit from Disability Buyout Insurance. Whether it’s a partnership, a corporation, or a limited liability company, having this insurance in place can safeguard the business from potential disruptions caused by a co-owner’s disability.

How Disability Buyout Insurance Works

When a co-owner becomes disabled, the Disability Buyout Insurance policy is triggered. The policy provides the necessary funds for the remaining owners to buy out the disabled owner’s share of the business. This ensures a smooth transition of ownership and allows the business to continue operating without interruption.

Choosing the Right Disability Buyout Insurance

Factors such as the value of the business, the number of owners, and the potential impact of a co-owner’s disability should be taken into account. Working with an experienced insurance advisor can help in choosing the most suitable policy.

Conclusion

Disability Buyout Insurance provides financial protection and ensures a smooth transition in the event of a co-owner’s long-term disability. By understanding the importance of this insurance and choosing the right policy, business owners can mitigate potential risks and secure the future of their business. Contact your Disability Insurance Specialist to learn more.

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Avoiding The Gift Tax, But Keeping The Benefits

A song familiar to all tells us that, “Love and marriage go together like a horse and carriage.”   Maybe so.  But when it comes to finances and marriage the use of the two as grist to the mill of so many matrimony jokes does not suggest such an harmonious coupling.  Consider a couple tame examples:

Wife to husband:  “I didn’t report your stolen credit card because the thief is using it more wisely than you did!”

Husband to wife:  “I think I need to buy you a new bank account.  The one you have keeps running out of money!”

Fortunately, fact usually looms larger than the fiction of humor.  We find most high-net-worth married couples in full financial tandem, especially when it allows them to move large amounts of net worth out of their joint taxable estate and still keep access to the benefit of the assets after the transfer.

This is done through a common and time-tested planning device most-often referred to as the Spousal Lifetime Access Trust (SLAT).  

With the help of legal and tax counsel its implementation and function are as follows:
  1. The taxpayer sets up an irrevocable grantor trust with intended heirs (usually the kids) as trust beneficiaries.
  2. In addition, the taxpayer’s spouse is made a lifetime beneficiary of the trust – that is what makes it a SLAT.
  3. The beneficiary spouse can have the right to withdraw all income generated in the trust each year.
  4. The beneficiary spouse can have the right to draw 5% of the trust corpus each year.
  5. The trustee of the SLAT can have the power to make discretionary distributions for the health, education, maintenance, or support (HEMS!) of the beneficiary spouse.  And if your trustee can’t justify a distribution for one of these reasons, someone should be appointed who has a better imagination!
  6. The beneficiary spouse can even be the SLAT trustee who makes the discretionary distributions discussed in #5!

So… a high-net-worth taxpayer can make full use of the current high lifetime exemption of $13,900,000 by transferring that amount to a SLAT for a spouse and still maintain vicarious access through that beneficiary spouse to the benefits of the property gifted.

A SLAT can also serve as the depository for life insurance outside the estate that can assist in payment of any unavoidable death taxes.  In addition, legal counsel can be sought to see if a second trust can be used in a marriage to take similar advantage of the other lifetime exemption available to a married couple.

Call with additional questions or to arrange a conference or Zoom call on any planning topic with you and your clients, or their advisors, at Tom Virkler, 706-614-3796, or tom@cpsadvancedmarkets.com. 

For What It’s Worth:  Considered by many the wealthiest celebrity couple, and thus much in need of estate planning, are actress Salma Hayek and luxury goods CEO Francois-Henri Pinault.  Married since 2009, the two share an estimated net worth of around $7.1 billion.

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Protection For Life – Benefits While Living!

Do your clients have life insurance that provides long-term financial security while covering multiple needs? If not, it’s time to seriously consider offering affordable permanent life insurance with living benefits that include critical illness, long-term care, and Vitality.

Life insurance with critical illness benefits allow policyholders to access a portion of their death benefit if they experience a qualifying health condition, such as a heart attack.

This can help cover the cost of treatments, care, or other expenses during challenging times. Long-term care benefits ensure that clients can afford necessary care, whether at home or in a nursing facility, without depleting their savings.

Additionally, with Vitality wellness benefits, clients can earn valuable rewards and premium discounts for engaging in healthy lifestyle activities. Vitality motivates clients to take charge of their health by rewarding healthy behaviors. This encouragement can improve their quality of life and reduce the risk of a critical illness or long-term care event.

Let us be your trusted partner in providing comprehensive solutions built to stand the test of time!

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Client’s Family History Have You Down? We Have a Solution!

If you feel challenged with significant adverse family history compromising your client’s ability to achieve Preferred rates, we have a solution.

Our Underwriting Team is here to help with all your impaired risk cases.

Here are some examples:
 
Example #1
  • 67- year- old male
  • 5’10”, 190 lbs.
  • BP averages 140/84, total cholesterol 218, & Chol/HDL ratio 4.6
  • Father died at age 45 due to a heart attack and mother died at age 60 due to advanced breast cancer
  • No other adverse medical history in his APS records
Underwriting Decision: Preferred Best!
 
Key Factor: Family history is NOT considered when the proposed insured is older than 65. Therefore, the fact that our individual had two parents dying of heart disease/cancer at age 60 and younger had no bearing on the final decision.
 
Example #2
  • 42- year- old female
  • 5’3”, 154 lbs.
  • BP averages 130/80, total cholesterol 220, & Chol/HDL ratio 4.2
  • Both hypertension and cholesterol are currently being treated with medications
  • Father passed away at age 59 due to prostate cancer
  • No other adverse medical history in her APS records
Underwriting Decision: Preferred Best!
 
Key Factor: Gender specific cancers are not considered on proposed insured’s of the opposite sex. Since our female applicant’s adverse family history was due to a male disease, it also had no bearing on the final decision.
 
Please contact us today for more information about this carrier and how we can help boost your sales.
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Why Family Should Not Be A Long-Term Care Plan

One reason why you need to bring up the topic of Long-Term Care with your clients: family.
 
Past history has shown us that parents who do not plan adequately for their long-term care needs ultimately end up sacrificing their income, assets and financial promises that they have made to pay for their care.
 
Since we are on the topic of history, it is also proven that if a parent does not have a proper plan in place, their family becomes their long-term care plan.

Parents must consider the potential physical, emotional and financial damage that is also done to the family members who are personally involved in delivering their long-term care.

There are a myriad of issues to consider when a family gets involved in their parent’s long-term care plan.
 
Among them:
  • Time Management
  • Geography
  • Funding
Think about how pressed for time your children already are – balancing families, careers and child activities.
 
Ponder also the challenges that could ensue from a care giving perspective geographically speaking if they do not all live in the same city. Then there are funding issues to consider as well, because someone has to pay for the care.
 
Further, multiple polls have taught us that most children do not want to take care of their parents, but when faced with these circumstances – they can and almost always do care for their parents… even if their relationship is not strong with them.
 
Long-Term Care and the challenges associated with it can often require more and more of family members’ involvement as time passes
 
The collateral damage that can be associated with being directly involved in a family member’s long-term care plan can often involve irreversible damage to relationships within the caregivers, and there can also be profound resentment toward the folks that the care is being delivered to.
 
Keep in mind also the opportunity costs that your family could be experiencing as it relates to their career, children, church or synagogue because the time that is usually allocated to these aforementioned items has now been allocated to you.
 
There are a variety of ways available to possibly remove this potential burden from your family.
 
Talk to your LTCi Sales & Marketing Associate today to learn more.
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New Markets To Grow Your DI Sales

The need for an income protection plan is not just for the Executive, Doctor or Attorney earning in excess of $150,000. According to the United States Census Bureau, in October 2020 the Median Household annual income in the United States was $67,521 from all occupations.
 
Average everyday working people (Middle America) are just as dependent on their income to provide for themselves and their families as anyone in those higher tax brackets.
 
Your opportunities are endless – reach out to your clients, friends, or family.
 
Ask if they have an income protection plan in place should they get sick or hurt. You can offer them an affordable plan to protect them and their family. Of the advisors I speak with every day, Life Insurance Agents, Health Insurance Agents, and P&C Brokers, 92% are not talking to their clients about income protection and how affordable it can be.
 
You can differentiate yourself as an advisor just by offering valuable coverage to your clients that no one has ever spoke to them about.
 
Here’s an example:
 
Did you know that the premium for a 40 year old Male Office Administrator for $3,400 monthly benefit is only $41.63 per month? There are affordable plans for even part time Dental Hygienist and Registered Nurses working as little as 24 hours per week.
 
Talk about opportunities, there are over 192,800 Dental Hygienist in the US earning an average annual income of $97,250* and 2.7 million Registered Nurses earning approx the same income.
 
Never let premium be the reason your client’s income is left unprotected from an injury or sickness.
 
The new affordable DI plans can fit most any budget. The premium for a 35 year old Female Dental Hygienist for $2,500 monthly benefit is only $55.52 per month. A 40 year old Male Insurance Agent can purchase $4,000 monthly benefit for $60.28 per month.
 
Your clients want to buy Income Protection, but they need someone they know and can trust to ask them about it. You are at the front-line to educate your Middle America clientele about the vital need for income protection in the event of an injury or sickness and how affordable it can be.
 
Discuss income protection insurance with all your prospects and clients, because they may not understand the risk of losing their income should an injury or an illness strike.
 
Contact your Disability Experts for Marketing Tools and Sales Ideas to help your clients.
 
*according to the Bureau of Labor Statistics
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Unlocking New Opportunities With FIAs In Today’s Market

Over the past decade, we’ve seen dramatic shifts in the interest rate environment, directly impacting the performance of annuity products.

Between 2018 and 2021, historically low interest rates resulted in lower Fixed Indexed Annuity (FIA) cap rates and modest fixed interest crediting strategies.

While these products still beat the fixed rate environment with market linked growth and protected assets, the growth they provided a few years ago pails in comparison to what is on the table with todays FIAs.

Fast forward to today, and we find ourselves in a much more favorable interest rate climate. Insurance carriers have responded by offering significantly improved FIA cap rates, participation rates, and even premium bonuses—an upfront boost that increases the cash value of a contract from day one.

The Power of Premium Bonuses

One of the standout features of many modern FIAs is the premium bonus. This bonus, which can range from a few percentage points to double-digit figures, is immediately applied to the contract value. For clients who may feel locked into an underperforming FIA from the low-rate era, this presents a unique opportunity. In many cases, the premium bonus can completely offset surrender charges, allowing them to exit an old contract without financial penalty and move into a more competitive, higher-growth potential annuity.

Why This Matters for Agents and Clients

For financial professionals, this shift in the market creates an incredible opportunity to revisit clients’ existing annuity contracts. With a complimentary annuity review, you can assess whether a client’s current FIA is still serving their best interests or if transitioning to a new product could provide them with greater growth potential, better guarantees, and enhanced benefits. Not only does this help clients maximize their retirement savings, but it also generates new business opportunities for agents looking to strengthen client relationships and expand their portfolios.

Take Advantage of the Current Market

If you or your clients hold an FIA that was purchased during the low-rate years, now is the time to explore options. A strategic annuity exchange could mean more earning potential, a stronger retirement plan, and greater peace of mind.

We offer a free annuity review service to help financial professionals evaluate existing contracts and determine the best path forward for their clients. Contact us today to see how you can leverage today’s improved annuity landscape to create better outcomes for your clients — and grow your business in the process.

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Create New Sales Opportunities With Term Insurance

Term Insurance is often used as a cost effective way to replace income, repay debts and/or provide a legacy in the event of a premature death.
 
In addition to these great functions, there are certain term insurance products that can provide your clients with more comprehensive benefits while they are still alive.

Promoting these solutions will not only deliver additional value to your clients, but will also help differentiate you from the competition in what is largely a price driven marketplace.

Consider This
 
For many clients, a major medical event (such as a heart attack, stroke or being diagnosed with cancer) can have devastating financial effects and leave their family unsure of how they will continue to make ends meet while paying for medical care.
 
Did you know that there are term insurance products which could be used as a source of income in the event that the insured were to experience once of these medical events?
 
With built in critical illness and chronic illness benefits, you can help your clients obtain coverage that will offer benefits while the insured is still alive. There is even a product available with these living benefits that can accommodate non-medical underwriting for face amounts up to $249,999!
 
With the introduction of these living benefit features to the term insurance marketplace, you now have a simple sales concept that you can use to create new sales with prospects and existing clients alike. How many of your clients would consider replacing their existing term coverage with a product that could pay benefits if they were to experience a major health event?
 
Contact us today for a copy of our Policy Review Kit and to learn more about the living benefit term solutions available in your state.
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Preferred Is Possible For Thyroid Cancer

The thyroid is a butterfly-shaped gland located at the front base of the neck. It produces hormones that regulate heart rate, blood pressure, body temperature and weight.
 
Thyroid cancer occurs when abnormal cells grow in the thyroid gland. The incidence of thyroid cancer seems to be increasing as new technology is allowing doctors to find small thyroid cancers that may not have been found in the past. The most common type of thyroid cancer is papillary carcinoma and has a good prognosis, particularly in individuals less than 50 years old.

One of our A+ carriers takes an aggressive approach to underwriting thyroid cancer and in some cases, can offer Preferred rates.

Take a look at this case study:
  • Female, age 43, non smoker
  • Stage I papillary thyroid cancer diagnosed and treated 2 years ago
  • Completes regular physician follow ups
  • May qualify for PREFERRED Non Tobacco rates
Contact our Underwriting Team on your thyroid cancer cases and lets work together to get the offer you need!

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