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.

How To Lower Your Client’s Premium – Every Time

What if you could offer your client the lowest premium on any Term or UL policy every time?

For years, Life Insurance carriers haven’t given their clients the option to offer the death benefit proceeds to be paid in any way but a lump sum.  However, with new product advancements a few carriers now offer a flexible death benefit payment option than can provide an income stream for the beneficiaries, while significantly lowering the premium for the insured.

The Income Provider Option from a few of our selected carriers allows the policy owner to select a guaranteed annual or monthly income stream death benefit for payment to one or more beneficiaries.

How it works:

Not only will this Income Provider Option allow the policy owner to control how the benefits will be paid, it also decreases current cost of the insurance by providing graded premium discounts based on how long the income stream pays out.  This endorsement is an extremely innovative and cost effective way to hedge against adverse underwriting or premiums above your client’s tolerance to get them the coverage they really need.

The Income Provider Option also presents the client with a great deal of flexibility granting them the ability to directly specify how the payments will be made to the beneficiary.  Payments can be structured so that a surviving spouse receives a payment from the policy every wedding anniversary, or a grandchild receives a sizable birthday gift from a grandparent for a designated amount of years.  This payment option can provide a lasting legacy and address the personal and sentimental value of the Life Insurance policy by ensuring the death benefit is paid the way the insured intended.

The Income Provider Option provides your client with two immediate benefits; first, it will give them peace of mind knowing their family will be cared for the way they intended, and second it will help lower current premiums, leaving them more discretionary income while they are still alive.

If you have a client in mind or would like to learn more about this great endorsement, please contact your dedicated Life Sales Associate.

Life Insurance With Affordable Long-Term Care

It is a common belief amongst today’s consumers that Long-Term Care Insurance is too expensive.  In addition, they also worry about paying for a product that they may not even need, or end up using.

Thankfully, the Long-Term Care market has drastically changed over the last decade – now many companies offer new products that address and overcome common objections.

Consider coupling a Permanent Life Insurance Policy with a Long-Term Care Rider to affordably cover all your clients needs.

Take this case for example:

Male, age 45, in good health, can purchase a $300,000 universal life policy for family income replacement for $182 per month.  For an additional $15 per month this individual can add a long-term care rider that can accelerate the $300,000 death benefit at 2% per month ($6,000) while living to pay for qualified long-term care expenses.

Now the client has addressed several needs with one policy – he has life insurance to protect and provide for his family and the ability to use the death benefit while living for long-term care expenses should the need arise.  All of this gives him the added piece of mind knowing that a benefit will be provided while living or at death as long as the policy is kept in-force.

For more information about life insurance with living benefits for long-term care contact your Life Sales & Marketing Manager.