by Patrick Swayne | Feb 17, 2022 | Uncategorized
An interesting solution using Hancock’s 2nd to Die SUL. This is one of the few products we have seen that has really stood out in a market where guaranteed products are consistently re-priced in a negative manner. The Protection UL provides a guarantee that lasts to late 80’s/90’s even though it is not fully guaranteed, depending on issue age. We have a couple of advisors who have been using 2nd to Die as an asset replacement strategy for qualified money of clients. Qualified money will be fully taxable when left to beneficiaries.Spouses are able to take withdrawals over their life expectancy, but that is not the case with non-spousal beneficiaries. Non-spousal beneficiaries will need to take ALL the money out within 10 years. That means getting hit with a much larger tax liability, especially if there are limited beneficiaries and the qualified money is a large sum. Case Study. Two 60-year-old clients read more
by Peter Zinnen | Feb 23, 2023 | Life Insurance
Life insurance is a crucial part of financial planning for many families. However, for individuals with pre-existing health conditions, getting life insurance coverage can seem like a daunting task. That’s where the Thompson Agency comes in. Unlocking Life Coverage Using our 5-Steps for Health Issues, we have assisted countless people in obtaining affordable life insurance coverage despite their health issues. Unlocking Life Coverage: 5-Steps for Health Issues Step 1: Don’t assume your client won’t qualify for Life Insurance.The first step in the Thompson Agency’s approach is to not assume that your client won’t qualify for life insurance. Many people with pre-existing health conditions believe that they are automatically disqualified from getting life insurance coverage. However, the Thompson Agency has had success obtaining affordable life insurance coverage for people with histories of obesity, diabetes, heart disorders, stroke, sleep apnea, hepatitis C, depression, smoking, DUI, and more. By not assuming that your read more
by Peter Zinnen | Feb 2, 2023 | Life Insurance, Property and Casualty Insurance
Property and casualty insurance agencies play an important role in protecting people and businesses against the financial losses associated with accidents and natural disasters. While these types of insurance are crucial, they don’t address one of the biggest risks that everyone faces: death. Offering life insurance will help maximize client protection and help your clients ensure their loved ones are financially secure, even if they’re no longer around. Here are the top five reasons why property and casualty insurance agencies should consider offering life insurance: Complementary protection: By offering both property and casualty insurance and life insurance, you can provide a comprehensive coverage plan that addresses all of your client’s insurance needs. Clients will appreciate the one-stop-shop convenience, and you’ll be able to build a stronger relationship with them by becoming their trusted advisor for all of their insurance needs. Increased revenue: Offering life insurance can help you increase your read more
by Brian | Jan 20, 2023 | Uncategorized
Life insurance fraud is a criminal act in which an individual or group of individuals intentionally deceives an insurance company in order to receive a financial benefit or payout from a life insurance policy. This can occur in a variety of ways, from exaggerating or fabricating claims on a policy to providing false information in order to obtain coverage. Examples of life insurance fraud include: Policyholder fraud: This occurs when the policyholder provides false information on a life insurance application in order to obtain coverage, such as exaggerating their health status or providing a false occupation. Beneficiary fraud: This occurs when a beneficiary of a life insurance policy makes false claims in order to receive a payout, such as fabricating the cause of death or providing false documentation. Agent fraud: This occurs when an insurance agent engages in fraudulent activity, such as selling policies to individuals who do not qualify read more
by Brian | Oct 28, 2022 | Uncategorized
Key man Company life insurance is a life insurance policy that a company purchases on the life of an owner, a top executive, or another employee that is critical to the operation of the business. The business owns the policy and is the beneficiary. The business also pays the premiums.The business owner should ask him or herself: What would happen if that key employee died? Would the business be able to keep operations going and keep the status quo?What financial impact could that death cause?What dollar amount would be needed/wanted if that key employee was to pass? By having Key Man coverage, a business can weather the storm if a key employee passes. The death benefit can be used for Recruiting, hiring, and training a new employeeIf the business can’t be continued, the money can be used to pay off debts, distribute money to investors, and provide severance to other employees There read more
by Patrick Swayne | Oct 14, 2022 | Uncategorized
You recognize the importance of knowing what your clients are passionate about in their lives. It is also critical that you are kept informed of any changes in their family, career, or finances. Part of your ongoing due diligence should include assessing the impact of these changes on achieving client goals and, if necessary, recommending adjustments to their strategies to keep them on track. Even if the outcome is simply to stay the course, your proactive review can help deepen relationships. Term policy Is it close to the end of the level term period?Is the coverage appropriate for the client?Conversion options If the client is healthy, it should be compared to the newly underwritten policy.Does the coverage go out far enough? Waiting will be more costly than just having the increase in premium now.What kind of health is the client in right now? Maybe they can quit smoking and acquire read more
by Patrick Swayne | Sep 30, 2022 | Life Insurance, Uncategorized
Do you have any clients with the bulk of their wealth in qualified plans such as 401(k), 403(b), or 457? Do these same clients have children? And is leaving money to them a priority?With the SecureAct eliminating stretch IRA’s, leaving money to the next generation through a qualified plan or IRA is less efficient than ever before. Plan Goal Here is a great presentation that any of our agents/advisors can put together fairly easy for any client who owns a qualified plan. The goal of this presentation is not to steer the client towards buying life insurance, but it is rather an analysis to determine what strategy best fits their needs & wishes. The idea is to show the client a side-by-side comparison of them keeping the status quo, continuing to grow their qualified plan, and then eventually take required minimum distributions. The presentation even offers the options of showing the read more
by Patrick Swayne | Feb 3, 2022 | Uncategorized
How many times do we encounter clients with small health issues, who want some form of life insurance coverage? It happens all the time. Diabetes, as an example, is one health issue that arises more often than not, and can sometimes rear its ugly head when clients get older. Fortunately, Diabetes is not an automatic decline, and many times we can get clients coverage at a reasonable offer/premium. However, for those older clients (60 and above), paying an increased premium on a term policy might not be all that attractive. The thought of paying a higher premium and not having any payoff on the backend can be troubling to some clients. Here is a possible alternative: Case Study Here is a case study where we can utilize a special program, called table reduction, using a Lincoln permanent policy as an alternative to paying a rated premium on term. Let’s assume this 63-year-old read more
by Patrick Swayne | Aug 13, 2021 | Uncategorized
Clients need to start taking RMD’s by April 1st of the year after they reach age 72. This is the new rule that is in effect. For those clients that have accumulated a good deal of assets, this could mean taking required minimum distributions that they DON’T need. As an example, a couple of age 72, who have a combined $2M worth of qualified plans, would need to take a gross distribution of $78,125. See the chart below. Based on how RMD’s are calculated, this generally means that a client’s qualified plan balance declines dramatically in their later years. How can clients retain more of that value to leave to their loved ones? A 2nd to Die policy would provide clients with a leveraged & tax-free approach to leave money to the next generation. Here is a sample quote showing two 71 year old’s (male- standard plus non-tobacco & female- preferred non-tobacco). read more
by Peter Zinnen | Apr 23, 2021 | Life Insurance
Buying the right life insurance coverage with your future retirement in mind can make it easier for your family to handle finances when you die. It can also help protect your money, manage your taxes and give you the opportunity to grow cash value which you can use for a variety of needs and activities. Here are some tips for using life insurance as part of your retirement planning. Permanent life insurance can help your retirement planning Permanent life insurance offers you a death benefit and the potential to build cash value that can be used to help supplement your retirement income. Perhaps one of the most interesting aspects of permanent life insurance is the ability to access the cash value. Cash value is generally tax-free through a policy loan. Why is tax-free so important? Lower taxes during retirement If you use the cash value from your life insurance policy read more
