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DI Covers What Workers’ Comp Doesn’t

Alarmingly, nearly 70% of business owners are not covered under the same Workers’ Comp policy they use for their employees. If they were seriously injured on the job, what would they lean on? Medical Insurance doesn’t cover lost income, and pulling revenue out of the corporation is dicey.

An affordable income protection policy to help your business owner clients protect their income from injury and illness – both on and off the job – is available.

Business Overhead Expense Insurance will reimburse the business owner for all fixed expenses – keeping the doors open while they recover.
 
Every business owner who carries Workers’ Comp Insurance is an opportunity – ask if they have a plan in place for themselves. Already covered? Compare the cost. And remind them that even a striving company may not survive long without a chief executive overseeing operations.
 
Business owners aren’t alone – Federal Employees, Independent Contractors, Private Home Domestic Workers, Farm Owners/ Laborers, Maritime Workers, and Railroad Employees are just some of the other occupations also at risk.
 
Contact your Disability Income Specialist for a case design custom to each of your client’s needs.
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Winning In Overtime With Unneeded Life Policies

“I went to a fight the other night and a hockey game broke out!” The famous one-liner by the late comedian Rodney Dangerfield finds it humorous foundation in the reality that those athletes on skates are resourceful in finding occasion for fist-a-cuffs.
 
But the sport offers a life lesson in making the best of a bad situation. If a team wins a game in regulation it is awarded two points in the standings and the loser gets nothing. But if a game is tied even the team that loses in overtime or a “shootout,” gets one point.

As an insurance advisor don’t miss the opportunity to make the “loss” a client may have in an unneeded policy into a positive transaction.

Example: Your client has a life policy into which he or she has paid $50,000 in premium and has a surrender value of only $10,000. The policy requires too much to maintain or is no longer needed.
 
But rather than tossing in the towel, suggest using the policy loss to earn some tax-free money! Consider:
  • Swap the policy for an annuity in a 1035 exchange.
  • Section 1035 allows for transfer of both the cash value ($10,000) and the old policy tax basis ($50,000) into the new contract.
  • Account values in annuities are taxed only to the extent of gain in the contract, the exchanged-for annuity allows room for $40,000 in growth before there is any potential income taxation on full surrender.
  • Additional premium can be contributed at the time of the exchange allowing for quicker loss recovery (e.g., $20,000 new premium results in an initial policy value of $30,000 and initial tax basis of $70,000 – loss in the policy is not affected!).
A 1035 exchange to an annuity is not without its hoops and details, so contact Tom Virkler, JD – Director of Advanced Markets, at tom@cpsadvancedmarkets.com or 706-614-3796 concerning these and any opportunities for increasing your annuity business.
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Top 3 Reasons To Offer Life Insurance With Vitality

Life insurance with Vitality offers a unique blend of life and long-term care insurance and wellness rewards, making it an appealing choice for many. Here are three key reasons to consider:

Incentivizes Healthy Living

The Vitality program rewards policyholders for making healthier lifestyle choices. By tracking activities like exercise, eating nutritious foods, and scheduling regular check-ups, you can earn points that lead to discounts, rewards, and even premium savings. This not only helps improve your health but also gives you tangible benefits for your efforts.

Cost Savings

With John Hancock Vitality, the more you engage in healthy behaviors, the more you can save on your life insurance premiums. By participating in health-related activities, such as walking, running, or getting a fitness check-up, you can lower your premiums over time, making it an affordable choice for many policyholders.

Comprehensive Coverage

In addition to the wellness benefits, certain contracts offers robust life insurance coverage options that include optional long term care and critical illness benefits. With flexible coverage amounts and customizable riders, policyholders can tailor their plans to suit their needs, ensuring peace of mind for themselves and their loved ones.

Overall, John Hancock with Vitality combines financial protection with motivation for a healthier lifestyle, offering unique rewards for those who prioritize their health.

Contact your Life Sales Rep today!

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Underwriting Diabetes

Let’s talk about Diabetes. This is a chronic condition associated with high levels of glucose (sugar) in the blood. Insulin hormone produced in the pancreas helps to turn glucose from the food we eat into energy.
When the body doesn’t produce enough insulin or doesn’t effectively use the insulin produced, it increases the amount of sugar in the blood and can lead to diabetes.
 
Types of diabetes:
  • Type 2: Occurs when the body is resistant to insulin and cannot effectively use the insulin it produces. This is the most common form of diabetes.
  • Type 1: Occurs when the body produces little to no insulin. This is an autoimmune type of diabetes and generally diagnosed early in life. Latent diabetes in adults is a slow-progressing form of autoimmune diabetes.
  • Pre-Diabetes: Also referred to as impaired fasting glucose and impaired glucose tolerance, this occurs when glucose levels are higher than normal but still below the level for a diabetes diagnosis.
  • Gestational Diabetes: Occurs during pregnancy and generally resolves after delivery. Women with gestational diabetes have an increased chance of developing Type 2 diabetes later in life.
A1c blood testing (average blood sugar) is key in determining severity when diagnosed as well as ongoing level of diabetic control.
 
Complications from diabetes can include neuropathy (nerve damage), kidney disease, retinopathy (vision problems caused by damage to the retina), stroke and cardiovascular disease.
 
Now let’s talk about some potential underwriting outcomes for Life coverage.
  • Type 2 diabetes may qualify at a Standard rate class with good diabetic control and no complications.
  • Type 1 diabetes could be as good as Table 2 for over age 50 in a best case scenario. Higher table ratings would apply for ages 50 and under depending on diabetic control and any complications.
  • Pre-diabetes and gestational diabetes may qualify at Standard Plus.
Contact our Underwriting Team for help in pre-screening your client living with diabetes.
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Cross Selling Long-Term Care Insurance

There are numerous people you know that need Long-Term Care (LTC) Insurance, many of them include your current clients. Perhaps you have already sold them a Life Insurance Policy, yet how do you get them interested in LTC?

Cross Selling can be difficult, yet when you present your client with information about LTC, they should understand the benefit of protecting themselves when they may need it.

Begin by talking about the consequences of living a long life will have on their family – and offer to put together a plan to protect them from the biggest risk they face after retirement – one that must be protected with Long-Term Care Insurance.
 
Once the conversation is going, a few good questions to ask include:
  • What percentage of your retirement assets have you set aside to pay for Long-Term Care services?
  • Are you concerned about the impact a chronic illness would have on your retirement savings?
  • If it were necessary to increase your spending by $3,000 or $4,000 a month to pay for LTC services, would that concern you?
To learn more about incorporating Long-Term Care into your product portfolio, or if you need more prospecting tips, contact your LTC Specialists today!
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Integrate Critical Illness With Your Disability Income Case Design

With steadily and rapidly increasing health insurance premiums today’s consumers and employers have adapted as best they can.  The usual result is more out of pocket expenses for individuals in the form of higher deductibles and co-pays. 

This has become a necessity to keep premiums as affordable as possible.  It’s not unusual today to see health insurance deductibles of $5,000, $7,500, or even $10,000. 

The government attempt to soften the blow for tax payers has been the advent of HSA (Health Spending Accounts) plans.  These are a combination of a High Deductible Health Plan (HDHP) and a separate custodial savings account for future medical expenses.

With or without an HSA plan, a serious medical issue could result in a crippling out of pocket expense costing thousands of dollars.  This would financially decimate many people.

Our team has a very affordable solution to this very serious problem and risk in the form of the new critical illness rider. 

This benefit will pay a lump sum payment up to $50,000 in the event of certain medical conditions such as cancer, heart attack, stoke, and up to 12 additional major sicknesses.  There is no need to satisfy the elimination period to qualify for benefits. 

It can be issued on express issue basis on our Short-Term Disability Income (DI) products, and is available on our Long-Term DI plans too.  The value is high and the premiums are low.  People recognize their exposure and will be glad you offered them a solution!

Please contact the your Disability Income Specialist for more details and a case design, customized to your client’s needs.

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Getting Full Trade-In Value For Exchanged Policies

We all know when you buy a car not to let the dealer know you have a trade-in until the terms or the new automobile are negotiated. Otherwise, the salesperson can more easily make a less than competitive offer on the ole rust-bucket/clunker/hooptie and hide it in the overall transaction for both vehicles.
 
A loss can also occur when trading in an old life insurance or annuity policy using the cash value for a new contract more suitable for a client’s current needs. Surrender of the existing contract triggers income tax on any gain in the policy value, leaving less to purchase new coverage.
Fortunately, IRC 1035 allows a non-taxable exchange, but here the trade-in must be in the picture upfront.
Because the transfer of funds must be carrier-to-carrier there are additional steps in the 1035 exchange process, which we will do for you:
 
  • After you have submitted the application we will take all steps to see that all replacement paperwork (much of which cannot be done online) is completed in a proper and timely manner.
  • We determine the exact amount of the old policy value that is to be rolled over and ensure that your sales illustration reflects that amount.
  • Once we have received approval for the new coverage, we will see that the old carrier transfers the funds promptly so the new coverage can get in force.
Contact Tom Virkler, JD – Director of Advanced Markets, at tom@cpsadvancedmarkets.com or 706-614-3796 with all your casework that anticipates a 1035 exchange and we will help your clients maximize their trade-in value by taking effective advantage of this tax-saving opportunity.
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5 Reasons To Use Permanent Life Insurance

Does permanent life insurance have a place in your clients’ overall financial portfolios?
 
Consider the following benefits offered by many of the permanent life insurance products available on the market today:
 
  1. Tax-free death benefit, cash growth, income, and long-term care benefits
  2. Market like returns with no downside market risk and flexible funding
  3. No required minimum distributions or penalties for pre 59 1/2 withdrawals
  4. No phase-outs for high income earners
  5. Potential to earn premium discounts and rewards through healthy lifestyle activities
To learn more about how clients can take advantage of all the benefits of permanent life insurance, please contact your Life Sales Rep today.
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Helping Foreign Nationals Secure Life Insurance—With Confidence

Placing life insurance for foreign nationals doesn’t have to be complicated—with the right underwriting expertise, it can be a smooth and successful experience.
 
While underwriting for foreign national clients is often more complex, understanding how carriers evaluate these cases can dramatically improve outcomes and set clear expectations from the start.
 
Who Is Considered a Foreign National?
 
In general, a foreign national is anyone who is not a U.S. citizen or lawful permanent resident (green card holder). This may include individuals residing outside the U.S. with American ties, U.S. citizens living abroad, temporary visa holders, and international students studying in the United States.
 
Because each carrier defines foreign national eligibility differently, choosing the carrier from the beginning is critical—and that’s where experience truly makes the difference.
 
What Underwriters Evaluate
 
U.S. carriers assess foreign national cases using a holistic approach. Key considerations may include:
 
  • Country of citizenship and current residence
  • Visa type and immigration status
  • Strength of U.S. ties (business, family, property, or financial interests)
  • Length and consistency of time spent in the United States
  • Occupation, income, and global net worth
  • Travel history and future travel plans
  • Purpose and justification for coverage
  • Medical history and access to acceptable medical records outside the U.S.
Each of these factors can impact product availability, pricing, and maximum face amounts—making expert guidance essential.
 
Important Requirements to Know
 
All policy solicitation and insurance exams must be completed within the United States. Some carriers may allow a limited Power of Attorney for policy delivery if the insured is out of the country at issue, though restrictions apply. Product options and coverage limits may also vary based on the overall risk profile.
 
Knowing which carriers are flexible—and which are not—can save time, avoid declines, and protect the client experience.
 
Partner With Experts Who Deliver Results
 
Foreign national underwriting takes more than product knowledge—it requires strategy, carrier insight, and proactive case management. That’s where the our Underwriting Team stands apart.
 
Our seasoned underwriters specialize in the complexities of foreign national cases. From identifying the most appropriate carriers to structuring cases for success, we partner with you every step of the way to help secure the best possible outcomes for your clients.
 
Ready to place your next foreign national case with confidence?
 
Canada and the United States share more than a border—they share similar lifestyles and comparable mortality risks. That insight has led a top carrier to offer underwriting guidelines designed specifically for Canadian citizens living in the U.S. and Canada—creating meaningful opportunities when cases are structured correctly.
 
We act as a true underwriting partner—understanding the nuances, anticipating potential obstacles, and proactively navigating each case to move it forward with clarity and confidence.
 
Contact us for assistance with your case today!
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Help Clients Hedge Their Risk

Highlighting the cost of care can be a powerful, yet non-threatening way to engage clients in a Long-Term Care (LTC) planning discussion. It also can provide a convenient starting point for designing a policy that will meet your client’s needs and budget.

Since the future estimated average cost for multiple years of care can be quite high, it’s important that both you and your client don’t view LTC Insurance coverage as an all-or-nothing proposition.

Highlight The Cost Of Care
 
First, discuss with your clients where they would like to receive care should a Long-Term Care event arise. Based on their response, show them what the estimated cost of three or more years of care is today and in the future.
 
We can help you and your client explore the cost of care, including:
  • Current costs for Long-Term Care for all areas across the country
  • Estimated costs for LTC events lasting 1-10 years
  • Projected future costs for Long-Term Care based on inflation
Develop a Strategy
 
Once your clients have seen the financial impact that a long-term event can have on their assets, help them develop a strategy to insure some or all of the risk. Base your plan design on what you know about your client’s financial goals, and adjust your recommendations based on their budget concerns.
 
Some clients may be willing to insure part of the risk by paying a portion of their future expenses out of pocket. Others may prefer to protect all of their assets, to ensure a spouse/partner’s financial well being or to leave a legacy to their children. In either case, LTC Insurance can provide a significant level of protection.
 
Manage the Premium
 
You have a surprising amount of flexibility when designing an LTC Insurance policy. If you start with a policy that accounts for your client’s total estimated future cost of care, be sure to consider alternate plan designs that help to lower the premium, if needed.
 
Consider this approach:
 
If you started with a longer benefit period and compound inflation, consider shortening to 3-5 years to save money, while still providing ample coverage for most care needs. Leaving off compound inflation protection can make a big impact, potentially cutting the premium in half. With this strategy, consider a higher initial daily benefit to account for future cost of care increases.
 
Become a Resource
 
Become a “cost of care” expert in your community. Leverage us as a point of reference in your prospecting efforts. After seeing the potential impact that an LTC event can have on their assets, your clients may feel compelled to protect their future with LTC Insurance.
 
Contact your LTC Associate today for more information and resources.

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