Why Convert Term Life to Permanent Insurance?

Why Convert Term Life to Permanent Insurance?

With everyone’s health on the radar a little more due to Covid, it is important to truly think long term about one’s life insurance.  For some, term insurance will still be satisfactory for what a client is trying to accomplish, which could be protecting lost income or a mortgage.  However, for other clients, it could be an opportune time to look at whether a term conversion makes sense.  With a solid conversion option, a client can choose to keep all or a partial amount of the term coverage that he or she had.  And the beauty of the conversion is that there will be no medical underwriting.  For any client who has had a significant health change, this can invaluable.  A term conversion is a provision that most life insurance carriers offer that allows an insured to convert all or a portion of their coverage to permanent, without having to read more
How to buy life insurance as a couple

How to buy life insurance as a couple

An important part of building a life with your significant other is creating a good financial foundation that can protect each other and your family. Knowing how to buy life insurance as a couple should be a big part of that plan. To find the best coverage for your partner, here are some tips. Buy life insurance for both of you Once you’re married and your lives are bound together, so too is your financial future. Life insurance is a vital component of your financial security. Chances are good that you depend on each other for financial support, and if you have children they also depend on you both. Your spouse can use the life insurance money for a variety of things, including:  Day-to-day living expensesSupporting your childrenInvestments or future incomeThe creation of an extra emergency fundPayments for your final expenses when you pass awayPayments for an outstanding mortgagePayments for read more
“Life” without Contact

“Life” without Contact

It has been a tough couple of weeks learning this new normal, but we are pushing through and we are all here to help. The interest in life insurance is still quite high, especially with the concern about COVID-19. At this point carriers have made limited changes to their underwriting process, mostly concerning foreign travel. The largest change has come with paramed exams. Exams are being delayed or cancelled by clients, concerned about exposure to new people. Exam companies are also making changes, saying that examiners will only come if your client does not show any symptoms of illness. The good news is that we are set up to offer life insurance for your clients without the need for a paramed exam. You can apply with “drop ticket” application, or iGO electronic apps so that you and your clients can talk through the application remotely. The following products are available read more
SECURE ACT – Eliminating the Stretch IRA and Solutions Using Permanent Insurance

SECURE ACT – Eliminating the Stretch IRA and Solutions Using Permanent Insurance

With the SECURE Act passed by Congress, there is a huge opportunity to talk to you clients about permanent life insurance.  The goal of the act was to encourage more businesses to offer a retirement plan to their employees.  However, in order to cover the costs of some of these benefits, the act also took away the Stretch IRA.  The Stretch IRA was a way for non-spousal beneficiaries to stretch out distributions over their life expectancy when inheriting an IRA/Qualified plan.  This would allow the beneficiary to maximize their lifetime distributions while minimizing taxes.  With the elimination of the Stretch IRA, non-spousal beneficiaries will now have to liquidate the account within 10 years.  Here is an example – PRE- SECURE ACT 60 year old male client has $500,00 in his IRA- assuming he takes appropriate RMDs at 70 ½ (5% growth), he would leave an account worth $663,000 at his read more
Life Insurance through work…a potentially false sense of security

Life Insurance through work…a potentially false sense of security

In the 2018 LIMRA Life insurance Barometer study, 60% of Americans own a life insurance policy.  However, continuing the trend that first started in 2017, more Americans are now covered by a group life insurance plan than by an individual plan they purchased. 2017 was the first year since LIMRA began tracking the issue in 1960 that group insurance was more popular than individual plans. Group life insurance is great, often the benefit is free, so why not accept it.  The problem is not accepting the group plan, the problem is the client believing that they no longer need to discuss an individual plan. Some companies will offer a flat amount of $25,000 to $100,000 of life insurance as a group benefit, while others will offer a multiple of the employee’s salary.  If you are one of the lucky few to be debt free, or you do not yet have read more
Why you should have a Contingent Beneficiary

Why you should have a Contingent Beneficiary

A contingent beneficiary is a beneficiary that is next in line if the primary beneficiary pre-deceases the insured.  If an insured does not have a contingent beneficiary and the primary beneficiary dies before the insured, then the insured’s estate will be next in line to receive to the death benefit proceeds.   This is assuming the insured does not make a change.  The issue of leaving death benefit proceeds to an insured’s estate is that the proceeds become susceptible to creditors of the estate.  Even if there are not creditors, the proceeds will be distributed through probate according to intestate law.  The state in which the insured’s estate is settled in will determine who gets the proceeds.  This may be entirely against what the insured wanted to happen when he or she took out the policy.  An example might of an undesirable beneficiary could be a son who is addicted to read more
Life Insurance pricing

Life Insurance pricing

Advertising for Life insurance is becoming more common.  This is a good thing for all of us, but it leads clients down a confusing path.  Are online life insurance plans less expensive?   The answer is no.  Online life insurance quotes are the same pricing that any independent life insurance agent can offer.  There is not special discount for online agents, the pricing for life insurance products are set and approved by State insurance departments.  But, can a certain national online life insurance retailer really help you “save up to 70% on your term life policy…”  The answer to this question, is more difficult.  They may be able to save you 70%, but what are they comparing it to?  All term life insurance companies have different products, with different features.  Saying they are saving you 70% off term insurance, is the same as me selling a Hyundai and saying it is read more
What is AML and what do I have to do?

What is AML and what do I have to do?

A common question asked by many independent life insurance agents is “What is AML?”  AML stands for Anti-Money Laundering training, a requirement by the U.S. Treasury department.  The Treasury department defines money laundering as the following: “Money laundering generally refers to financial transactions in which criminals, including terrorist organizations, attempt to disguise the proceeds, sources or nature of their illicit activities. Money laundering facilitates a broad range of serious underlying criminal offenses and ultimately threatens the integrity of the financial system.” In order to sell any life insurance products that contain a “cash value component,” all Life insurance producers are required to complete Anti-Money Laundering training.  Since life carrier appointments are not product specific, even if you only sell term life insurance, if the insurance carrier offers a “cash value” product, you will be required to take the AML training. To keep your certificate current, AML training is required every read more
Application Options – the truth about Drop Tickets

Application Options – the truth about Drop Tickets

So your client is ready to apply for life insurance.  Have you discussed the application options with them?  Paper applications, e-applications, drop tickets?  There are several options, though not all are available from each carrier.  Not only that, but drop ticket applications vary considerably in the initial questions that are asked by you the agent, and the length of time the telephone interview will take. So the good news is that your comfortable with your options now, the bad news is that not all options are available from every carrier. In fact there are only a few that offer all three options. Here is a list of a few Life insurance carriers and their application options:   Depending on your point of view, if you are a P&C agent or a Carrier life agent, you will either love or hate drop ticket applications.  Regardless, these types of applications are not read more
What ID-Protection Services Really Do

What ID-Protection Services Really Do

We all hear about the big breaches in the marketplace but what does that mean to us, what can an identity theft protection services actually do to protect us? If these questions have ever run through your mind, you are not alone! But, we should understand these services and what they offer. First! No, Identity theft protection services DO NOT prevent identity theft. The prevention of identity theft is a far fetched idea at this point. You would have to gain/regain control over all of your personal information from every area of your life and secure that information. This, unfortunately, is unrealistic as most of our information is out there already. We provide our Personal Identifiable Information (PII) for almost everything/transaction we do. Our own behavior and the companies we associate with every day are susceptible to breach or mishandling information, putting us all at risk. This alone creates exposure read more