Tuesday Tips – September 12th, 2017

Alerts

Phoenix Rate Increase

Effective Monday September 11th Phoenix has increased rates on multiple products.  The enhancements include cap increases as well as income rider enhancements.  Call today for additional details.

Hurricane Update

In light of the recent hurricanes several carriers have eased lapse windows as well as premium drafting.  If you have clients impacted by these events give us a call to get a list of which insurance companies have made adjustments.

Sales Concept

Life Checklist

Life events typically create an opportunity to review ones financial plan.  Events such as marriage, divorce, death, a new home purchase, etc. can be a stressful time and knowing what to consider during these events is important.  Available for download are a series of checklists that cover a variety of life events and what to consider during those times.

Industry News

Congress Back In Session

Congress is back in session and September should prove to be an interesting month with calls for increased military spending, a debt limit increase, ACA funding, and many other items.  Hopefully a government shut down isn’t on the table and cooler heads will prevail.

Hot Rates

Protective Classic Choice Term

Protective has rolled out a new term planned that is designed to be incredibly low cost.  The product has been stripped down and is designed for those individuals that are just concerned about short term coverage and aren’t looking for a lot of bells and whistles on a product.

Marketing Corner – The Road to Retirement

Marketing Corner – Thursday September 7th, 2017

The Road to Retirement, sometimes called “The Bridge” or “Bridging The Gap,” is a useful yellow-pad concept for a number of reasons. It illustrates many of the challenges a consumer faces as they drive toward retirement, the tools that can be used to address these challenges, and a specific product (Indexed Universal Life Insurance) that can provide the final layer of protection.

In Step 1, we see that there is a gap between now and retirement.

How does one cross a large gulley like this? With a bridge of course (Step 2).

Unfortunately, as we see in Step 3, there are many factors that can weaken or break our bridge. These downward forces include:

  • Medical Expenses
  • Market Volatility
  • Taxation

The bridge can be strengthened with the trusses of tax-deferral and insurance, as we see in Step 4. Tax-deferral allows a consumer to accumulate a greater amount of funds before facing a tax-liability, while insurance protects against some risks.

However, even with these extra protections, should there be a market downturn, the consumer can swerve right off the bridge, just as retirement appears on the horizon.

This is where Indexed Universal Life Insurance—with its guaranteed return and upside potential—can provide the guardrails needed to keep the consumer on the road. (Step 5).

The final interpretation of this yellow pad concept should look a bit like this:

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Tuesday Tips – September 5th, 2017

Alerts

ANICO Discontinuing iPipeline

American National has announced it will be discontinuing the use of iPipeline’s E application. September 29th 2017 will be the last day to submit new cases through iGO. Moving forward ANICO will be using their in house system ExpertApp. Call today for additional details.

Protective Conversion Options

Protective has announced a change to conversion options on current inforce term business as well as business going forward. Moving forward a client will be able to convert to a product on Protective’s expanded portfolio. After 5 years they will be able to convert to the basic list of products. In addition to this moving forward a client will not be able to convert a product in the last 2 years of the term. Call today for additional details.

Sales Concept

Life Insurance Awareness Month

Life Insurance Awareness Month is here. September is a great opportunity to begin the life insurance conversation with new prospects as well as existing clients. Make sure to request your complimentary life insurance awareness kit. Call today for additional details.

Industry News

Delay for DOL Fiduciary Rule

Last week the Office of Management and Budget approved an 18 month delay for the fiduciary rule. Now that the OMB has approved the delay it will go back to Labor to be finalized within the next 30 days.

Hot Rates

AIG Power 10 Protector

The Power 10 Protector by AIG is a competitive FIA 10 year product designed for accumulation. The product offers annual pt to pt caps on the S&P as high as 5%. In addition to this it offers a spread of 1.5% uncapped on their MLSB index. The product also offers a competitive 1.75% fixed rate on the product. Call today for additional details.

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Marketing Corner – Life Insurance Trivia

Marketing Corner – Thursday August 31st, 2017

Life Insurance Trivia

You Can Use Life Insurance To Give Whiskers
The Good Life After You’re Gone

While most insurance carriers won’t allow you to directly name your cat or dog beneficiary since states generally consider pets to be property, you can use life insurance to fund a pet trust. This will make sure that your beloved animal lives out the remainder of its life in style. Since other family members (and even courts) may find this arrangement distasteful, a pet trust will need to be properly structured. Trouble Helmsley, the Maltese recipient of $12 Million from Leona Helmsley, famously had his inheritance reduced to a mere $2 million after the hotelier’s grandchildren contested.

The Apollo 11 Astronauts’ Unusual Life Insurance Policy

Certain occupations and hobbies can incur high-risk ratings or preclude life insurance coverage altogether. But what if your job is an astronaut and your mission is to go to the moon? This is what the astronauts of Apollo 11 faced. With prohibitively high coverage options, Buzz Aldrin, Neil Armstrong, and Michael Collins resorted to a creative solution—autographed “covers,” signed envelopes post-marked on significant days. In the event of their death, the astronauts knew their autographs would fetch a great sum.

The Largest Life Insurance Policy Ever

According to Guinness World Records, an anonymous, but “well-known,” Silicon Valley billionaire purchased the most valuable life policy ever in 2014. The coverage amount? $201 million. This doubles the previous record of $100 million set in 1990. The most valuable policy was unsurprisingly complex, involving 19 different insurance companies for the underwriting.

Unclaimed Benefits Amount

According to Consumer Reports in 2013, the amount of unclaimed life insurance benefits is “at least” $1 billion. How can this happen? There are a few reasons. For one, consumers may be unaware of their beneficiary status. Policy owners may have poor record keeping. Insurance companies recently got themselves into trouble by failing to be more proactive in seeking out beneficiaries once policyholders died.

Life Insurance Ownership and Marriage Rates

Comparing data from the U.S Census and the American Council of Life Insurers Factbook, Bankrate found that states with a higher marriage rate generally had a lower life insurance ratio and vice versa. As the article postulates, this could be because the states with the highest marriage rates also have the youngest median ages for marriage, and life insurance may not be a priority for young newlyweds. Southern states had high policies-to-population ratios, with Alabama topping the list for life insurance ownership.

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Tuesday Tips – August 29th, 2017

Alerts

North American Updated Suitability Forms

Effective September 1st North American will require the use of a new updated suitability form.  Call today to request the updated form.

LMG Product Announcement

Legacy Marketing Group has announced a new product launch for September 18th, 2017.  The FlexMark Select will have enhanced upside potential as well as 2 proprietary indexes.  In addition to this the product will have enhanced liquidity features allowing for up to a 20% free withdrawal.  It will also offer multiple income rider options including a no cost rider and the ability to double for qualifying events.

Sales Concept

Retirement Backstop

Outliving your retirement income is a major concern for most retirees.  Life insurance can be an effective tool to help mitigate that risk.  Cash value life insurance partnered with an LTC or chronic illness rider can act as a backstop in retirement.  As the client ages if there is a concern about exhausting their retirement funds they can draw on the policies cash value tax free.  In the event of a chronic illness the death benefit can be advanced to help cover the cost instead of using retirement funds.  Available for download is a guide that discusses this strategy.

Industry News

Hurricane Harvey

Hurricane Harvey is currently tormenting parts of Texas and Louisiana.  The primary concern at this point is the safety of all those that are being impacted.  Over the longer term it is a reminder of the importance of having an emergency plan in place as an advisor.  As people seek to file insurance claims and access funds to begin rebuilding it is important to have a plan in place to offer as much help and support as possible to clients.

Hot Rates

American National Xpress Plus

American National has launched a new underwriting program called Xpress Plus for their entire portfolio of products.  The Xpress Plus program allows the client to get up to $1mm of coverage without an automatic exam.  Clients 0-50 applying for amounts $250,001-$1mm and clients 51-60 applying for $250,001-$500,000 qualify for the program.  If after the initial review an exam isn’t necessary the policy will be approved and issued.  In order to participate the application must be an Eapp.  Call today for additional details.

Sales Concept Downloads

Marketing Corner – Overcoming Life Insurance Objections

Marketing Corner – Thursday August 24, 2017

Overcoming Life Insurance Objections

Even with a greater amount of consumer education than in previous decades, selling is still an important aspect of connecting prospects to an appropriate insurance solution. A big part of selling is dealing with objections. Here are five common life insurance objections you’ll likely face from consumers and what you can say to overcome these objections.

“Life Insurance is too expensive!”

This is probably the most common objection you’ll hear from consumers. It’s true that life insurance premiums can initially be jarring, but remember that expensive is a relative term. Plus, consumers often overestimate the cost of insurance. Last year’s Insurance Barometer Study found that the median estimated yearly cost for a 250,000 term policy for a 30-year-old non-smoker was more than double the actual cost.

• “When was the last time you looked at insurance prices?”

• “Did you know that most people overestimate the cost of life insurance?”

• “Did you know premiums increase with age, you’re never going to be any younger than you are today.”

• “Most people don’t get healthier as they age.”

• “We don’t really know what the price of insurance is because it’s set based on underwriting. So let’s get you medically underwritten and then we can talk about what the actual numbers will be.”

“I don’t qualify because of health issues.”

This objection arises because consumers are aware that many life insurance policies require medical underwriting. But like other aspects of life insurance, they may have misconceptions on how this process works or impacts their options.

• “Did you know there are certain types of insurance that are guaranteed issue?”

• “Just about anybody can qualify for a life insurance policy—there are many different types that account for many different situations.”

• “Consumer may have misconceptions about the underwriting process, what is prompting you to say that?”

“I have money saved up.”

It’s possible that a consumer feels that they have enough money accumulated through savings and other assets that they don’t need life insurance. Maybe once they give you a peek at their financials they do—but this presents an opportunity to discuss efficient wealth transfer and estate planning options. If they don’t, explain what the average cost of retirement is. According to the U.S. Dept. of Labor, the average household will use nearly 41,000 per year in retirement. So if a household retires at 65 and expects to live another twenty years, the retirement amount used for this time period will be $820,000. Converting a large sum of savings into a cash value life insurance policy can help clients achieve a robust source of retirement income on top of a death benefit.

• “Are you aware that you can use life insurance to transfer wealth in a more tax-efficient manner? This can be true if you want to endow a charity or transfer to family members.”

• “Most of the time when someone tells me that it is based on a specific set of assumptions for the future, are you sure your savings are sufficient?”

• “Given what we know about life expectancies and inflation, are you confident that your savings of _______ will give you the retirement you desire?”

“I already have life insurance.”

This should be an easy objection to overcome. If a consumer already has a policy, find out when they purchased it, what type it is, and if they have been any significant life events. A good financial plan, whether it involves a life insurance product or other solution, should be reviewed periodically to make sure it still matches the consumer’s needs and objectives, and to see if there are other opportunities.

• “When was the last time you had a policy review?”

• “What life changes have happened since it was purchased?

• “How do you know that your policy still meets your needs?”

• “Would you invest $10,000 in the stock market and never look at it again?”

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Tuesday Tips – August 22nd, 2017

Alerts

Global Atlantic Sunsetting Products

Global Atlantic has announced that they will be retiring the Income 125+ and Index bonus 115 products.  The last day to submit an application is  September 1st.  Call today for additional details.

AIG Price Reduction

AIG has lowered pricing on their term portfolio.  The reduced pricing impacts death benefit amounts of 500k+ and applies to non New York and New York cases.

Sales Concept

Policy Stacking With ROP

Several carriers now offer ROP on their GUL products.  If a client has a death benefit need that they expect to be lower in the future stacking 2 policies together can be a cost effective way to address their current death benefit need as well as their death benefit need in the future.  When the client is ready to reduce the face amount they can surrender one policy and pay up the remaining plan and eliminate any future premium payments on a guaranteed basis.  Call today to learn more.

Industry News

LPL Buys NPH

It was announced last week that LPL has completed the purchase of National Planning Holdings Inc. an independent broker dealer.  The initial price was $325mm with an additional payment of up to $123mm due next year depending on how many advisers the LPL retains.

Hot Rates

AIG Max Accumulator + IUL

The Max Accumulator + IUL by AIG is a competitive, flexible IUL designed for income as well as life’s what ifs.  The product offers an annual point to point cap on the S&P of 13% along with multiple other indices.  In addition to this the product offers a chronic illness rider, income for life rider, and a select income rider which lowers the cost of the plan if the death benefit is taken in installments.  Call today for additional details and state availability.

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Marketing Corner – 5 Marketing Resources You May Not Know You Already Have

Marketing Corner – Thursday August 10th, 2017

5 Marketing Resources You May Not Know You Already Have

A good advisor is always on the hunt for new clients and marketing opportunities. And it can seem like every day there is some new program to try—fintech, exclusive lead gen funnels, alternative marketing concepts, etc. While many of these can prove to be effective for the needs of your practice, some can involve significant time and money. However, there are a few resources you already have that can be leveraged. Things such as…

Prospect Lists

Over the course of building your practice, you likely have a warm prospect list. These are the consumers that you’ve had some level of contact with, but haven’t had a chance to convert. You can take this list of consumers and build a drip pipeline with contact specifically tailored to them. You may not convert prospects right away, but this gives you a marketing channel that can basically run in the background, while you focus on other activities. It may require a bit of organization, effort, and thought to properly establish a prospect marketing channel, but once you have it done you now have another funnel that you can build on with little work. Already have something like this? Take a look at your list, evaluate its success, and see if it needs to be refreshed with new contacts.

Current Clients

Advisors know that current clients can generate other planning opportunities, but how many actually leverage their current book of business? This is why low-effort marketing activity—such as holiday and birthday messages—throughout the year is helpful to keep you in front of consumers. But also consider the impact of the annual review. Financial professionals often tell consumers how important periodic reviews of financial plans are, but focus their attention on new clients. Keep your current book engaged with messages throughout the year and send anniversary reminders to draw up review opportunities.

For Example:

Congratulations [CLIENT NAME],

Your Financial Plan is one year old today!

A lot can happen in a year. New jobs. Marriage. New child.

As part of our dedicated service to you, we would like to schedule an annual financial check-up to make sure everything is still on track to meet your objectives. Give us a call at XXX-XXX-XXXX and let’s get something on the books.

Thank you, 

[Your Name]

Better yet, you could establish the annual review at the initial appointment and then send reminders as the date approaches.

LinkedIn

LinkedIn is a great resource for professionals like financial advisors. More formal than Facebook or Twitter, LinkedIn presents itself as the social network for professional connections. Obviously, one way to use LinkedIn for marketing is to syndicate content and participate in relevant groups. But there is another way to leverage LinkedIn for your business: exporting your growing list of connections. Contact us for help with this process. You can add this list to your base email marketing campaigns or drop them into a unique distro.

Carrier Marketing Material

Most carriers will have a small library of material available through their agent portals. These pieces may be producer guides about specific products, but there will likely be general, high-level concept information that can be used for a variety of purposes. These concept documents can be re-shaped and used as items in your e-marketing channels or given directly to consumers at appointments. Stay away from pieces that are too sales-y and product heavy. Instead focus more on basic information (retirement basics, life insurance overview, etc.) Include a branded letter from you that explains what the consumer is receiving.

For example:

[LOGO/LETTERHEAD]

Dear [CONSUMER NAME],

I am giving you this piece from one of the insurance carriers I work with. Based on what we discussed in our appointment, you might benefit from this high-level overview of retirement planning. Please let me know if you have any questions. I’ll reach out to you soon.

Sincerely,

[YOUR NAME]

Yourself

The biggest resource in your firm is not a new lead-gen program, sophisticated quoting software, or high-quality deliverables (although these are important). No, the biggest resource your business has is yourself. If you work in the business planning realm, you are familiar with this concept. Consider how you are or aren’t leveraging your experience, knowledge, and expertise. Do you have a specific approach or specialized knowledge than not only would appeal to your target base, but also distinguish you from your competitors?

If so, how can you highlight this? Here are a few ways to do so:

  • Clearly identify designations, specialties, and experience in bios (don’t brag, but be proud)
  • Build your brand around the specialty or area of focus

Create marketing collateral based on your approaches, experience, and specialties. The cost of this might be the time it takes to write it down and maybe some printing

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Tuesday Tips – August 8th, 2017

Alerts

Rate Increase

Several carriers have announced rate increases on caps and reductions in spreads. Call today to get the most up to date rates.

Prudential SUL Pricing Increase

Prudential has announced that they will be increasing pricing on their SUL Protector. Level pay scenarios will see a 6% increase while single pay scenarios will see a 14% increase on average. A date for the change hasn’t been announced yet.

Sales Concept

Life Insurance Awareness Month

September is Life Insurance Awareness Month and now is the time to ramp up to generate more business. In preparation for life insurance awareness month we have put together a complimentary guide that includes presentations, sales concepts, and prospecting materials to help you close more business. Request your kit today.

Industry News

Genworth Rate Increase

Genworth has announced they will be implementing their previously announced rate increase. Affected blocks of business will have premiums increased over the next 12 months and affected clients will be notified 60 days in advance of the increase. You can see what clients will be impacted by visiting www.pro.genworth.com.

Hot Rates

North American Legacy Optimizer

North American has rolled out a new single premium simplified issue IUL. The product has a full death benefit guarantee and can be approved in as little as 15 minutes with a tele interview. The product writes ages 50-80 and offers terminal and chronic illness riders as well. The product offers a 10% premium bonus as well as a return of premium feature. Call today for additional details.

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2017 Life Insurance Awareness Month Kit

Tuesday Tips – August 1st, 2017

Alerts

Athene Premium Increase

Athene has announced it will increase the minimum premium from $5,000 to $10,000 on the following products: Ascent Pro Bonus, Athene Benefit 10, Athene MaxRate.  This change takes effect October 2, 2017.

Sagicor Commission Incentive

Sagicor is kicking off a commission incentive for their Fixed Indexed Single Premium Whole Life product.  The incentive runs from August 1st-October 31st.  Qualifying cases will receive an additional 1% commission during this period.  Call today for additional details.

Sales Concept

Legacy Marketing Group Marketing Reimbursement

LMG is currently offering .25% reimbursement for marketing costs on every $250k of non qualified business submitted.  The promotion runs through December 31st, 2017.  In order to receive your reimbursement an invoice must be provided.  Call today for additional details.

Industry News

FINRA Fines

FINRA reported that operating revenues declined by 6% in 2016.  Fortunately for FINRA due to an increase in fines the decrease was offset.  Funds from fines increased to $173.8 million from $93.8 million in 2015.

Hot Rates

Lifetime Legacy with LMG

LMG offers a competitive simplified issue single premium life product.  The product writes 55-85 and offers chronic and ADD riders.  In addition to this the product has a guaranteed 4% interest rate and offers a teleunderwriting option that can be done at point of sale.  Call for additional details and product availability.

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