Live The Good Life And Get Rewarded

One of  our carriers rewards clients for their good health by granting credits against their health impairment ratings – resulting in better underwriting classes for permanent plan cases.

Studies have proven that people who live healthy lifestyles and who are generally fit, live longer – even if they have minor health issues.

During the underwriting process, this carrier will gather information from medical records, for applicants through age 70 around certain lifestyle factors and medical tests and will score each one.  Their final score will then be used for the purposes of improving the underwriting class or offsetting the table rating.

Sample Case:
  • 64 year old male
  • 5’11” 195 lbs
  • Applying for $1.2 million of Universal life coverage
  • Business owner
  • Non-insulin dependent diabetes mellitus
  • History of A1c testing reveals good control over last 5 years

The carrier initially offered Table 2.

Credits were applied based on the following favorable factors:
  • Never used nicotine products
  • Attending physician’s statement reveals regular aerobic exercise four times per week
  • Colonoscopy screening normal
  • PSA testing within normal limits

The carrier was then able to offer Standard Plus Non-Nicotine – a 3 class upgrade!

Our Underwriting Team is here to help with all of your impaired risk cases.  Please contact us today for more information about this carrier – and details of how we can help boost your sales.

Put The Power Of Storytelling To Work For You

You already know that quoting statistics doesn’t sell Long-Term Care Insurance.  That’s because most people don’t see themselves needing LTC services, and using statistics to try to tell them otherwise will do little to convince them.

Barraging prospective clients with product benefits and features doesn’t work either.  If they don’t believe they need LTC Insurance, touting all the bells and whistles of the product isn’t enough to make the sale.

So how do you get people to sit up and take notice?  Tell them a compelling, engaging story about the positive impact an LTC policy had on someone’s life.

Find a good story

Chances are you already have a story that will work for you.  Draw on your own experiences.  If you’ve ever had to care for a parent or grandparent, you know how difficult it can be.

Or you can use other people’s stories.  A story doesn’t have to be your own.  It can be just as powerful to share the experiences of family members, friends or clients.

Make it memorable

When telling your story, paint a word picture.  Don’t just describe what happened.  Instead, talk about how it made you or the people involved feel.

Also, you need to make sure your story is relevant.  A prospective client with no children probably won’t relate to a story about how difficult an LTC situation is on the kids.

Finally, don’t scare people.  Make sure your story has a happy ending that comes about because of LTC.

Get your clients to share their stories

According to a survey of LTC policyholders, 78% said they had a family member or friend who needed LTC services.

So your story may prompt prospective clients to recall stories of their own.  Ask questions that invite them to talk about these experiences.  Who knows, this might be how you get your next good story.

Here are five questions that will help you prompt clients to share their stories:
  • Do you know someone who needed Long-Term Care services?
  • Who provided their care? (Generally, a spouse or child is the primary caregiver.)
  • What effect did this have on the caregiver?  On the family?
  • How did they pay for the care they needed?
  • What effect did this have on their finances?  On their retirement plans?  On the inheritance they hoped to leave for their kids?

For more sales ideas, contact your LTC Specialist today.

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.

The 10-Minute Insurance Analysis

Back in the old days kids would buy a comic book for 10 cents (5 cents if the cover had been removed for re-sale) and peruse the back pages for ads that peddled everything from x-ray glasses to work-out programs that promised to make you into a he-man in two weeks.  Purchases were made by mail and paid for with cash, checks or stamps.  Buyers were alerted to allow 4-6 weeks for delivery!

Not today.  Now “graphic novels” cost around ten bucks and things kids need are purchased online with delivery assured almost the moment of the last key stroke.  Comedian Steven Wright described the acceleration of the pace of life well when he said, “Last night I made some instant coffee in my microwave oven and it almost went backward in time.”

The insurance industry has responded to the fast pace to which a new generation of buyers has become accustomed with abbreviated and accelerated policy underwriting and issuing programs.

And now you can do the same in drawing conclusions with regard to determining financial need for coverage in less time and little financial information.  Try this:

For most people, there is only one need

If a client doesn’t have estate tax concerns, then the only insurance need he or she has is for income replacement protection.  If a family is managing its affairs properly then maintaining its anticipated income level for the anticipated number of working years left will allow for maintaining the household and achievement of retirement goals.

Coverage for that need is easily calculated

Simply take the client’s current earned income and multiple it by the number of working years that remain.  In fact, because a death benefit is received income-tax free, use of after-tax income would still be adequate, but allow for a reduction in the amount of coverage sought.

Protection can be purchased economically

Coverage is needed for a known period of time (i.e. estimated number of working years remaining).  This is exactly when term insurance is needed.  There is no reason to buy higher-priced permanent coverage.  Beyond retirement clients may want to maintain some coverage for estate liquidity, but they can either apply for new permanent coverage or exercise the conversion privilege under the term policy.

The cost is guaranteed and can reduce over time

Clients can “lock-in” the cost of their income replacement protection with guaranteed level term insurance for a period that covers the number of anticipated working years.  As the number of working years reduces with time the death benefit on the policy can be easily reduced.  But often the face amount is left level to accommodate for raises, bonuses, or inflation.

A two-policy proposal

Don’t forget coverage on a spouse, especially if he or she is also a wage-earner.  But even a stay-at-home spouse raising children should be considered for insurance in an amount that would allow for providing the services necessary to keep the household in its accustomed style and schedule of life.

This simplified sales process also allows for more profitable execution of a term sale which, given the lower premium size, is less cost effective for you in terms of commission revenue.

Groucho Marx once commented on the pace of life when he observed:  “Time flies like an arrow.  And fruit flies like an over-ripe banana!”  I believe he would advise that to save time you call for help with your case-related tax and planning issues.

Who Are Your Best Business Owner Prospects?

Companies that inquire about business evaluations are usually looking to learn how much their company is worth – and find business solutions through life insurance.  These solutions range from exit planning, business protection, transferring wealth to the next generation, and even retirement planning.

Recently, statistics have been released to help better identify the types of companies that typically inquire about business evaluations.

The resulting top five industries are:
  • Professional, scientific, and technical services
  • Manufacturing
  • Construction
  • Wholesale trade
  • Retail trade

The statistics also revealed that these companies are mainly S&C corporations, with about 13% being private partnerships – and an overwhelming majority have about 1-99 employees with over 25 years in their respective fields.  Half have an annual sales volume of $1-$3 million; 18% generate $3.1-$10 million, where 12% are reaching $10.1-$50 million in sales.  Less than 3% do more than $50.1 million in sales.

When owners use the business evaluation process, results can lead to significant opportunity.

Related planning in the form of a Buy-Sell case results in an average case size of $11,301.  Average case size for Key Person policies are $8,986.  Executive Bonus cases average $28,756.

Some other interesting statistics advisors should be aware of are the percentages of businesses that successfully pass operations on from one generation to the next: 70% of first-generation operations do not successfully transition to the next generation. 90% of the second-generation do not make it to the third generation, and 96% of the third-generation do not survive to the fourth generation.

The purchase of life insurance policies on the owners’ lives can ensure there is enough money to pass along to the next generation, to successfully run and operate the business going forward.  Or, if an owner has a child who has no intention of running the business, life insurance is a great solution to equalize this child’s inheritance, and help other family members who may be looking to take on the family business avoid any potential tension.

Please reach out to your Life Sales Marketing Manager to learn more about these statistics, and how life insurance is a critical part of the business planning process.