The New Insurance Policy – Do Your Clients Have It?

Today’s life insurance products are very different from past product offerings.  We need to educate and share details of how today’s options can help solve the real life problems modern families face.

Are we asking the proper questions?  Are we creating enough of a sense of urgency to move clients to take action?

50% of American households acknowledge they don’t have enough life insurance – LIMRA

How do we turn a non-buyer of insurance products into a client who sees value in the products we offer?

It has become increasingly difficult for a client to identify the proper products, let alone the correct amounts of insurance coverage they should own.  In most cases, the consumer is intimidated with the process of buying insurance, or at least that is what past research indicates.

We need to make the process appealing and as ‘client-centric’ as possible.  If they are buying insurance, let’s do what it takes to make sure they buy it from you.

21% of consumers had no idea what type of coverage they had bought – LIMRA

Over 60% of life insurance shoppers are proactive; most often they want to either review coverage or are impacted by a specific life experience which triggered the need in their mind – LIMRA

Many families are looking to protect assets, accumulate cash savings for retirement and prepare for the possibility that they may require professional care at older ages.  We offer a product which can address all of these concerns – a single product that can meet all of these needs in one transaction!

How do we find clients?
  • Do you know someone who needs retirement planning?
  • Do you know someone who has taken care of a loved one?
  • Do you know someone who wants to leave a legacy behind?
Do you have anyone who fits one or more of the three descriptions above?

We want to help you deliver for your clients.  Access to accumulated cash value; money for long-term care services and/or tax favored money for heirs – let’s take a close look at how insurance can secure your clients’ financial futures.  Contact your Life Sales Rep today.

An Affordable Alternative To Estate Planning For Hesitant Clients

In today’s economy, some of your wealthier clients may be hesitant to purchase Survivorship Life Insurance coverage due to uncertainty, either in the market, estate taxes or their family’s circumstances.  There is another way to cover their insurance need without the finality of a Survivorship plan or the cost.

We have contracts with carriers who offer the ability to convert Individual Term Insurance policies into a Survivorship plan during the designated conversion period.

Your clients receive immediate insurance protection while locking in their underwriting class.  This approach requires less of a commitment coming out of your client’s checkbook while satisfying the total insurance need.

The policies can be owned individually or by an Irrevocable Life Insurance Trust (ILIT) and down the road they will have the ability to convert into a SUL plan at attained age if the uncertainty regarding estate taxes and the current market condition erodes.

Items to keep in mind when considering using an ILIT to purchase Term coverage

First, if you use a trust, the individual who is not covered by the Term policy will need to provide evidence of insurability when the policy is converted to a SUL plan.  Second, you could have the trust purchase half of the total insurance need on each spouse.

Using this method, the individuals will be able to acquire the total insurance need without showing proof of insurability at the time of the policy change.

If you have clients who are hesitant to address their estate planning needs and are taking a “wait and see” approach, you may want to introduce this strategy.

Our Life Sales & Marketing Associates can show you which carriers Term policies can participate in this concept and prepare quotes showing the most affordable options.

Study Reveals What Clients Value – We Offer The Solution

Whether it’s at the grocery store or the doctor’s office, your clients want personalized, engaging solutions that make their lives better and more convenient.  This is true for life insurance, too.

In fact, according to a recent study by LifeHealth.com, two thirds of consumers surveyed would likely switch their life insurance provider to a company that could tailor coverage offerings to fit their individual insurance and wellness needs.

Fortunately, that life insurance solution already exists – John Hancock Vitality.

Contact your Life Sales Representative for more information.

Help Protect Your Client’s Income With Linked Benefit Life Insurance

Do you have a client who would like to purchase a Disability Income policy but face the difficulty of qualifying due to the nature of their profession?  Perhaps their reported income is low and the amount of benefit available is insufficient.

A DI alternative through a Linked Benefit Life Insurance policy

Today, many carriers are offering linked benefit products which allow your clients to access a percentage of their policy’s death benefit in order to cover their Long-Term Care (LTC) expenses.

Typically, in order to qualify for this acceleration of benefit, the client will need to have lost the ability to perform two of the six Activities of Daily Living (ADL’s) which include eating, bathing, dressing, toileting, transferring and maintaining continence.  Odds are that if you could satisfy the parameters to go on disability claim then you could also satisfy these parameters to exercise your LTC benefit.

The benefit is not based on earnings and there is no income verification needed

This product qualifies your client only on their health, not on their occupation.  As a result, you can offer a linked benefit plan to any of your clients who could qualify for a typical Life Insurance policy.  There are numerous products that offer this LTC rider.

Whether your client is interested in a guaranteed death benefit, building cash value or a combination of both, there is a product available that can provide a monthly benefit in the event that your client is unable to perform two ADL’s and cannot earn their income.

Call your dedicated Life Marketing Specialist if you have a client to consider or if you would like to learn more about how linked benefit life products work.

Non-Reportable, Tax-Free Income During Retirement By Using Index UL

There aren’t many investment vehicles available that offer the tax advantages of properly structured, permanent life insurance.  Unfortunately, many clients are not aware of those benefits when purchasing term insurance, and they may not know about alternative product solutions.

Within your existing book of clients, do you have any individuals who are hitting the contribution limits in their qualified plans?

If so, Index Universal Life (UL) may be a great concept to introduce to them in your next meeting, as it can provide a number of benefits that are comparable to a qualified plan.

The following series of questions can be used to frame the benefits of Index UL, without specifically introducing the concept of life insurance
  • Do you believe that taxes will be static, or fluctuate over your lifetime?
  • Are you contributing to any qualified retirement plans? If so, are you funding to the maximum limits of those plans?
  • Would you be willing to trade the benefits of interest crediting in order to remove the risk of losing accumulated values, due to downturns in the market?
  • Do you mind paying taxes on income that you receive from your non-qualified assets?

Many of your clients will meet the contribution limits in their qualified plans; believe taxes are only going to increase; will not like exposure to loss of accumulated values due to downturns in the market, and will not like paying taxes on their distributions.

All you need to do next is ask them is how much they would like to contribute monthly for a vehicle that has
  • No contribution limits
  • No downside market risk
  • Compound interest crediting in the 10-12% range annually, without the possibility of losing their accounts’ value due to negative returns in the market
  • Non-reportable, tax-free distributions of their accounts’ accumulated value

Once your clients provide you with a premium commitment, we will help you to assess their insurability, and prepare proposals that solve for a minimum death benefit and provide the most efficient cash value accumulation.

Ideally, Index UL policies should be funded for 10-15 years prior to taking policy distributions, but they can be customized to meet many different specifications depending on your clients’ age and preferred premium schedule.

This strategy is not limited to clients who are maximizing their qualified plan contributions

Index UL can be an efficient solution for younger clients (ages 30-50) who are looking to further fund their retirement, prepare for a child or grandchild’s school tuition costs, or contribute discretionary income into a product with the tax favored features mentioned above.

We will help you identify clients within your existing database who would be good prospects for this strategy, and will create customized solutions to meet their needs.  To learn more about the Index UL products that are now available, and to explore how they can drive new sales opportunities – call your Life Sales Rep today.