Are you a P&C agent who’s worried about offering life insurance?

You’re not alone. Many P&C agents are hesitant to offer life insurance because they don’t feel like they have enough expertise, don’t have enough time, or are afraid that a poor life insurance experience could cause them to lose their client. But here’s the thing: offering life insurance can be a great way to grow your business and provide your clients with even more protection. And it’s not as daunting as you might think, especially with our turn-key partnership program. Here are a few of the concerns that P&C agents have about offering life insurance, and how to overcome them: Concern over not having enough expertise. This is a common concern, but it’s one that’s easily overcome. There are a number of resources available to help you learn about life insurance, including online courses, webinars, and even books. You can also work with us directly and we are happy to read more

LTC-360: Exploring Existing Funding Options for Long Term Care

Long term care (LTC) can be a costly expense, and many people are not prepared for it. Depending on where your clients live, the cost of a private room in a nursing home is over $12,000 per month. There are several funding options available for LTC, but not all of them are created equal. In this blog post, we will explore some of the most popular LTC funding options, including: Traditional long term care insurance Hybrid products Life insurance riders We will also discuss the reasons why people might not purchase traditional long term care insurance, and how to educate your clients about the need for LTC protection. Traditional Long Term Care Insurance Several years ago, traditional LTC products were the most common LTC option, in fact it was the only option.  There were several carrier choices and product designs.  Fast forwarding to today, we only have 1 primary carrier, read more

How to start the conversation about Long Term Care planning

Talking with your clients about the need to plan for long-term care is a critical conversation about their future, yet it’s not always easy getting people to open up about this potentially sensitive subject. Did you know that the percentage of people who own long-term care insurance (LTCI) is relatively low, compared to the percentage of people who will need long-term care at some point in their lives. According to the American Association for Long-Term Care Insurance (AALTCI), as of 2020, only about 7.5 million Americans have some form of LTCI. This represents about 10% of the population aged 65 and older. On the other hand, it is estimated that about 70% of people aged 65 and older will need some form of long-term care at some point in their lives. This means that the vast majority of people who will need long-term care do not have LTCI. There are read more

Income Replacement Insurance: A Must-Have for Protecting Your Clients’ Monthly Mortgage Costs

As an insurance agent, you know that your clients’ financial security is important to them. One of the biggest financial concerns for many people is their monthly mortgage payments. If a client were to become disabled or unable to work, their ability to make their mortgage payments could be in jeopardy. That’s where income replacement insurance comes in. Income replacement insurance can provide your clients with a monthly income stream if they become disabled or unable to work. This income can be used to help them cover their mortgage payments, as well as other living expenses. There are a number of different income replacement insurance policies available based on your clients occupation and income, which will group them into two product categories, white collar or blue collar products. If you’re not sure which income replacement insurance policy is right for your clients, that is where we come in.  The Thompson read more

CareMatters Together – a new Joint Hybrid Indemnity LTC contract

Nationwide has been a staple of the LTC industry for nearly 25 years and their CareMatters Hybrid product has had great success helping clients plan and protect themselves from a long term health care event. Recently Nationwide has introduced an update to their CareMatters product called, CareMatters Together. This is the first joint hybrid indemnity plan on the market. Here are some of the highlights: Cost-effective benefit coverage for 2 people – in most cases the second to die life insurance benefits provides the same coverage for less than separate policies. Flexible, shared pool of benefits – 1 large pool of money provides both clients with access to the funds. Provides more flexibility if 1 clients needs care for longer. Cash Indemnity benefits – no need to submit receipts, and anyone including family members can provide care. Potential tax advantages: separately identifiable LTC and life insurance premiums – The LTC read more
Unlocking Financial Security: The Importance of Discussing Long-Term Care Planning with your Clients

Unlocking Financial Security: The Importance of Discussing Long-Term Care Planning with your Clients

As an insurance agent, your role extends beyond providing coverage for your clients’ immediate needs. It’s essential to address their long-term financial well-being, and a critical aspect of this is discussing long-term care planning. By engaging in conversations about long-term care, you can empower your clients to protect their assets, secure their future, and navigate the challenges of aging. Let’s explore why it is crucial to ask your clients about long-term care planning. Protecting Financial Assets Long-term care expenses can drain savings rapidly, leaving individuals vulnerable to financial hardship. By discussing long-term care planning, you can help your clients understand the potential risks and explore suitable options to protect their assets. Long-term care insurance, for example, provides coverage for extended care needs, ensuring that your clients’ hard-earned savings remain intact, even in the face of unexpected health challenges. Nurturing Family Relationships Unplanned long-term care needs can place immense strain on read more

Unlocking the Power of Fixed MYG Annuities

Introduction: As insurance agents, you’re constantly searching for products that offer security, growth potential, and peace of mind for your clients. With the new improved interest rate environment…Enter Fixed Multi-Year Guarantee (MYG) annuities, a game-changer in the insurance industry. In this blog post, we’ll explore the benefits and features of Fixed MYG annuities and explain why they should be an integral part of your portfolio. Secure and Predictable: Fixed MYG annuities are renowned for their stability and security. With a fixed interest rate over a specific period (typically 3-10 years), these annuities provide your clients with a predictable income stream. This stability is particularly attractive for risk-averse individuals looking to safeguard their financial future without worrying about market fluctuations. Competitive Growth Potential: Despite the fixed interest rate, Fixed MYG annuities still offer competitive growth potential. The guaranteed rate ensures a minimum return, and some policies provide additional opportunities for growth read more
Affordability and Importance of Life Insurance

Affordability and Importance of Life Insurance

Life insurance is a crucial financial tool that can provide financial security and peace of mind for families in the event of an unexpected death. However, many people are put off by the perceived cost of life insurance, assuming that it is too expensive to be affordable. In reality, life insurance can be very affordable, and not having it can end up costing a family a lot more in the long run. Affordability and Importance of Life Insurance is too important to overlook! There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance is the most common and straightforward type of life insurance. It provides coverage for a set time, such as 10, 20, or 30 years. If the policyholder dies during the term of the policy, their beneficiaries receive a tax-free death benefit payout. Term life insurance is affordable and a read more
Life Insurance Fraud?

Life Insurance Fraud?

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 read more
Key Man Life Insurance:  An Important Business Protection Tool

Key Man Life Insurance:  An Important Business Protection Tool

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
Things to Look for When Doing Policy Reviews

Things to Look for When Doing Policy Reviews

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
LifeLinc – Leveraging qualified plan for Wealth Transfer

LifeLinc – Leveraging qualified plan for Wealth Transfer

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
2nd to Die SUL

2nd to Die SUL

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 read more
Diabetes, a special program

Diabetes, a special program

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
RMD rules and ideas for using RMD’s

RMD rules and ideas for using RMD’s

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
The Importance of Term Conversions & Tips

The Importance of Term Conversions & Tips

A term conversion is a contractual obligation a client has, to convert his or her term policy to that specific carrier’s permanent product(s) without having to go through underwriting again.  Each carrier has its own specific rules for term conversions, with some carriers having more favorable options over others.  For instance, some carriers will allow conversion to their entire permanent portfolio for the entire level term period, up to maximum age (could be anywhere from 65-75).   For those clients that value having these better conversion options, it important to take note of the term conversion guidelines when looking at term policies when first purchasing.  Typically, the carrier will allow the insured to convert to the permanent policy at the same rate class he or she was approved at the term policy.  However, we have seen carriers downgrade an insured’s rate class if the rate class on the term no longer 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
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
Why Use Life Insurance to Supplement a Client’s Retirement?

Why Use Life Insurance to Supplement a Client’s Retirement?

Why would anyone use life insurance to supplement their retirement?  Life Insurance provides valuable death benefit protection.  But a properly designed cash value life insurance policy can also provide living benefits in the form of tax-free distributions.  Let’s look at some of the primary reasons why it is a valuable solution for many clients looking to save for retirement. Tax Diversification One of the primary reasons to use life insurance in one’s retirement planning strategy is for tax diversification. Before looking at why the tax-free advantage is important, let’s first look at what the options the client would have otherwise. A client has the option of three different traditional investments for funding of their retirement.  They can use a tax-deferred vehicle, like a 401(k).  They could fund a taxable investment like mutual funds, stock, and bonds.  And lastly, there are tax-advantaged assets like the Roth IRA and municipal bonds.  And read more