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Why Disability Income?

As discretionary income tightens in most households across the country, many Americans have put the purchase of retirement and insurance vehicles on the back burner, leaving themselves open to risk of severe loss and no way to indemnify.

While most would consider their greatest asset to be a house or a car, in reality a human’s most valuable asset is their ability to earn an income.

Without cash inflow, no insurance, investment, or savings product can be purchased and utilized. Disability Income is a commonly overlooked portion of the planning process yet can be the most important piece of the puzzle.
 
Common misconceptions about disabilities.
 
The main reason Disability Income is usually overlooked by Financial Professionals and their clients is the misconception of what causes a disability.
 
A recent consumer study released by the not-for-profit Council for Disability Awareness (CDA) reported that 71% of respondents said a disability is most likely caused by a serious accident.
 
In reality, insurance statistics show that only 9% of long-term disability claims result from serious accidents. The remaining 91% of income-interrupting disabilities come from common ailments like back and joint pain, chronic diseases, cancers, depression and pregnancy.
 
If your client becomes ill with any of the conditions or disabilities listed above and are unable to work for a period of time, will they have sufficient funds available to continue paying for their numerous financial obligations?
 
We can help.
 
We understand the challenges your clients may be faced with during periods of disability.
 
Our strong relationships with top Disability Providers allow us to help you find the best fit for your client regardless of their occupation.
 
Products range from simplified issue to fully underwritten with the goal of getting your client coverage as quickly as possible. Nearly all respondents in the CDA study rated their ability to earn an income as more valuable than any other resource in maintaining financial security. However, only 37% said they have thought about taking steps to protect their income. Don’t let your client fall into the remaining 63%, the need is real.
 
Contact your dedicated Disability Sales Specialist to learn more about how we can help your clients protect their most valuable asset.
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Kids Who Won’t Mind Their Business!

When eating an apple, the only thing worse than finding a worm… is finding half of a worm!
 
For a business-owning parent, the only thing worse than having no kids interested in the succession of the company is when only half the kids are interested in carrying on and inheriting the family store.
 
Consider several scenarios you should address with clients before a life change forces decisions without the time or necessary pre-understandings for proper resolution:
  • If the kids are all uninterested – Begin discussions of the best way to transition ownership to outside the family.A keyperson buy-out arrangement funded with life insurance on the parent is a common arrangement.
  • If only some of the kids are involved and interested – The goal here is estate equalization.To prevent involvement of non-participating siblings, life insurance is often purchased on the parents to provide funds for the bequests to those who won’t inherit any of the family business.
  • A surviving spouse – A non-participating husband or wife left behind that still depends on equity distributions must not be overlooked.Life insurance can be purchased on the parent operating the business that allows children to purchase the business from the surviving spouse.
  • Non-family owners in the mix – A parent who is not a sole owner may want his or her share to go to participating children first.This requires a two-tiered buy-sell agreement giving the children a right-of-first-refusal to purchase or inherit a parent’s interest before non-family owners have a right to purchase.
An attorney will be needed to advise and properly draft the legal documentation. But you can make clients aware of potential problems and initiate serious thinking toward steps to plan properly.
 
Any frustrated homemaker will tell you, “Cleaning your house while your kids are still growing up is like shoveling the sidewalk before it stops snowing.” And so, it might seem to attempt succession planning when everyone is fine and business is going-and-blowing, but it eliminates heavy lifting down the road.
 
For help in getting family business owners to start shoveling the walk now, we will review existing documents and get on the phone with you, your clients, and their advisors to help get discussions started. Contact Tom Virkler, JD – Director of Advanced Markets, at 706-614-3796 or tom@cpsadvancedmarkets.com.
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Is It Time To Upgrade Your Client’s Life Policy?

“Old Insurance” Vs. “New Insurance” – Which Do Your Clients Own?
 
While the death benefit is quite often the most important feature of life insurance, there are many products available that provide additional features and benefits.
 
The term “old insurance” applies to policies that don’t have much additional value beyond the death benefit, while “new insurance” would refer to life insurance where clients do not need to die in order to receive a benefit.
 
We advocate regular reviews of your clients’ insurance policies, to ensure they have the most appropriate and effective product solutions to meet their ever-changing needs.

A policy review may uncover that the existing amount of coverage is no longer reflective of their true need and/or that there’s opportunity to enhance their coverage via the inclusion of living benefits.

Take for example the following:
 
  • Long-Term Care, Chronic Illness and Critical Illness Riders are just a few examples of “new insurance” benefits not commonly available at the turn of the century.
  • The evolution of Index UL can provide your clients with tax-favored accumulation and tax-free income – which can serve as an alternative solution to the Roth IRA if they are restricted by contribution limits or earn too much income, making them ineligible for the Roth IRA altogether.
  • For younger clients concerned about retirement income, cash value life insurance makes for a great addition to their investment portfolio by providing a diversified source of accumulation.
Most clients only know about “old insurance,” and would likely consider a replacement if they were aware of the enhanced benefits available through “new insurance” products.
 
Don’t let your clients hear this story from another agent or advisor. We can provide you with turn-key policy review materials, and will help you to create a list of key talking points you can use to initiate discussions with your clients about their existing policies.
 
Contact your Life Sales Rep today for more information.
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Underwriting Strengths Help Shape Great Offers

The underwriting strengths of a carrier can help you shape up for spring and beyond. Here are some examples to help with the heavy lifting:

Tobacco and Marijuana Underwriting Strengths
  • Occasional cigar users (two per month or less) can qualify for Preferred Plus, Preferred & Standard Plus non-tobacco rates if there is a negative urinalysis test
  • Clients who occasionally use marijuana may qualify for Preferred or Standard Plus non-tobacco rates
Family History Underwriting Strengths
  • Family history qualifications do not apply if the proposed insured is 60 or older for Preferred Plus, Preferred & Standard Plus classes
  • Family history qualifications apply only to deaths rather than disease
  • Family history qualifications do not apply to gender-specific cancers for opposite sex persons
  • Family history of deaths due to diabetes can qualify for Preferred Plus, Preferred and Standard Plus classes
Underwriting Strengths for Common Health Impairments and Non-Medical Risks
  • Mild Asthma clients may be eligible for Preferred
  • Mild Sleep Apnea may be eligible for Preferred with verified C-PAP usage
  • Treatment for cholesterol or hypertension does not exclude a proposed insured from any Preferred classes
  • Maximum cholesterol levels for Preferred classes is 300 with favorable ratios; 5.0 or less for Preferred Plus, 6.0 or less for Preferred, 7.0 or less for Standard Plus
  • Commercial pilots for regularly scheduled passenger airlines can qualify for all Preferred classes
  • Certain private pilots with IFR/ATP rating, flying between 50-250 hours annually and 1000 or more total hours of piloting experience may qualify for Preferred and Standard Plus classes
  • Preferred classes may be available for occasional scuba diving if proposed insured is certified and dives less than 100 feet
Call our Life Underwriting Department today – we can help you shape great offers and get more business on the books!
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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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Affordable Coverage With Real-World Impact

This approach is designed to be more affordable than comprehensive DI policies while still providing meaningful income protection.

The goal is simple: help ensure clients can continue paying for the basics that keep their household running if a disability interrupts their ability to earn an income.

For many clients, the M.U.G. Plan can serve as:
  • An entry point into Disability Insurance
  • A solution for clients with partial or insufficient coverage
  • An opportunity to up-sell or layer additional protection over time
Takes the Guesswork Out of “How Much Coverage Do I Need?”
 
One of the biggest barriers to purchasing DI is confusion around benefit amounts. The M.U.G. Plan simplifies the process with one straightforward question:
 
“How much do you spend each month on your mortgage, utilities, and groceries?”
 
That’s it. No complicated formulas. Just a practical, needs-based conversation that resonates—especially during Disability Insurance Awareness Month, when clients may be more open to discussing protection planning.
 
Tools to Help You Get Started
 
To support your outreach, a customizable M.U.G. Plan marketing flyer is available for download. This flyer is designed to help you present the concept clearly and start meaningful conversations with your clients.
 
Return the completed flyer to your Marketing Representative for a tailored recommendation that aligns protection with your client’s needs.
 
Make May Matter
 
Disability Insurance Awareness Month is about education, awareness, and action. The M.U.G. Plan gives you a simple, client-friendly way to highlight the importance of Disability Income Insurance—and show clients how they can protect what matters most.
 
To learn more about the M.U.G. Plan and best practices for discussing Disability Income Insurance with your clients, contact your Disability Income Insurance Specialist today.
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Are Only The Rich “Trusty?”

The author F. Scott Fitzgerald once said to Ernest Hemingway, “The rich are different from you and me.” Hemingway retorted, “Yes! They have more money!”

Unfortunately, that is often the only difference clients see between themselves and people who plan with irrevocable trusts to protect assets from death taxes.

But there are many planning advantages to suggesting irrevocable trust planning for folks who don’t have to worry about Federal estate taxes.
 
Consider:
  • Avoiding state death taxes – Many states have their own death or inheritance taxes that levy on much smaller amounts of taxpayer net worth.
  • Protection from creditors – Assets in the trust are free from judgement or levies against the creator of the trust.Trust beneficiaries are also protected so long as assets remain in the trust.
  • Detailed and private distribution planning – Sophisticated and multi-generational gifting and inheritance scenarios can be carried out free from the public scrutiny of the Probate Court.
  • Ongoing control of property – Transfers of non-voting interests in property held by a Family LLC allows the creator of a trust to continue to determine use of the trust property.
  • Spousal access – A married creator can grant broad access to trust property to a husband or wife allowing for withdrawals if assets and funds are needed later on.
  • Lower income taxation – Trusts can be designed so that income on assets are taxed in the creator’s lower tax brackets, rather than the compressed high trust rates.
Hemingway also said, “The best way to find out if you can trust somebody is to trust them.” And he would probably say that the best way you can find out if a trust can help is to trust us to help you and your client with their next case, especially in coordinating a trust with their insurance planning. Contact Tom Virkler, JD – Director of Advanced Markets, at 706-614-3796 or tom@cpsadvancedmarkets.com.
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How To Turn Single Term Insurance Sales Into Three Commission Checks

Term Insurance is designed to provide coverage for only a specific duration of time (10, 15, 20, 30 years). However, almost every term policy sold through us includes a provision allowing clients to convert their term policy into a permanent insurance policy – without requiring any new medical underwriting.
 
One of our brokers shared how they use this provision to create additional sales while also providing clients with a solution that they can rely on for the rest of their lives. During the initial sales discussions, they promote this conversion privilege, working with the client to determine how much coverage they would need and how quickly they could afford to exercise this option.
 
Since the pricing for the permanent insurance is based on the client’s attained age at the time of conversion, the sooner that the client converts their coverage, the less expensive it will be.

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.

For example, if the client decides to purchase a 10 term policy for a $1M face amount, they could potentially convert $500K next year, $250K more in 5 years, and then make a decision whether they want to convert and maintain the remaining $250K towards the end of the level term period.
 
Many of your clients do not know that their term coverage includes this feature.
 
Far too often, the discussion of how and when to exercise a term conversion option is a reactive one, taking place when the level term coverage is about to end or shortly after the client has experienced a change in health for the worse.
 
Don’t set your term sales on auto-pilot.
 
Talk to your clients about why it makes sense to take advantage of the conversion provision. Explain how they can keep their initial term policy rating for the rest of their life without having to re-qualify in the future. It’s another great reason to stay in contact with your client and could even create new sales and/or referral opportunities with their family and friends.
 
Oh, and did we mention that you collect a new commission for each conversion sale you make? Your Life Sales Rep is here to help – contact us today.
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Take Heart! Not All Cholesterol Is Bad

Did you know:
  • The liver produces all the cholesterol our body needs, however, dietary cholesterol (taken in through the foods we eat), causes the liver to send even more cholesterol into the bloodstream.
  • High cholesterol can cause fatty build up in the arteries which increases our risk of heart disease and stroke.
  • High-density lipoprotein, or HDL, is considered “good” cholesterol. HDL helps to remove bad cholesterol known as low-density lipoprotein, or LDL. Triglyceride is another form of cholesterol and the most common type of fat in the body.
  • Cholesterol/HDL Ratio is calculated by dividing total cholesterol by HDL. The higher the HDL, the lower the ratio. This is a good thing!
In the past, carriers looked stringently upon all cholesterol levels when underwriting a case.  These days, there are some carriers who can overlook total cholesterol levels if between 150-300.

Preferred classes are available with favorable, low cholesterol/HDL ratios, even with total cholesterol levels nearing 300!

Consider these examples:
  • Male client, age 45, NS
  • Seeking $2 mil of Term, Cholesterol on exam was 298 with a Chol/HDL ratio of 5.0
  • Does not take any medication
Underwriting outcome: PREFERRED BEST!
 
  • Female client, age 60, NS
  • Seeking $1 mil of UL, Cholesterol on exam was 275 with a Chol/HDL ratio of 6.0
  • Takes a prescribed cholesterol medication
Underwriting outcome: PREFERRED!
 
  • Male client, age 52, NS
  • Seeking $500k of Term, Cholesterol on exam was 260 with a Chol/HDL ratio of 7.0
  • Takes a prescribed cholesterol medication
Underwriting outcome: NON SMOKER PLUS!
 
Our Life Underwriting Department has a heart for finding the best possible outcomes on your cholesterol cases.  Give us a call!
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Are Your Clients Prepared for Rising LTC Costs?

Over the years, we’ve observed clear and consistent trends in the long‑term care market. While the cost of care has increased across all provider types, facility‑based care has continued to rise at a faster pace than care delivered at home—placing growing pressure on retirement assets.
 
If you live to age 65, there is approximately a 70% chance you will need some form of long‑term care services during your lifetime.
 
This makes proactive financial planning essential for managing future care costs and protecting long‑term financial security.
 
Current Costs of Long‑Term Care
 
Most long‑term care claims are paid for home care or assisted living, both of which generally cost significantly less than skilled nursing care.
  • Home Health Care Aide: The national median hourly rate for home health aide services is $35 per hour (2025).
  • Assisted Living Facilities: The national median annual cost for an assisted living facility is approximately $74,400 per year, based on a median monthly cost of about $6,200 (2025).
  • Nursing Home (Private Room): The national median annual cost for a private room in a nursing home is approximately $131,600 per year, based on current median monthly pricing (2025).
Projected Future Costs
 
As care costs continue to rise, your clients’ assets face increasing exposure. Assuming an average three‑year claim and a 3% annual inflation rate, the projected cost of a private room in a nursing home 25 years from now could exceed $240,000 per year, resulting in a total cost of roughly $720,000 over three years.
 
Without preparation, these expenses can quickly derail even well‑structured retirement plans.
 
Planning for Long‑Term Care
 
Given today’s cost environment, planning ahead is more important than ever. In 2024, long‑term care insurance carriers paid tens of billions of dollars in claims, continuing a multi‑year trend of historically high benefit payouts.
 
Yet despite the likelihood of needing care, only about 3% to 4% of Americans age 50 and older currently own long‑term care insurance.
 
Evaluating long‑term care insurance solutions can be a prudent step toward:
  • Preserving retirement assets
  • Providing flexibility in care choices
  • Reducing the financial burden on family members
Contact your LTC Specialist today for assistance with your cases and client planning needs.
 

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