Case Studies

Challenge:

• Male, Age 38 with family and mortgage earning $80,000 annually
• Because of the growing family and monthly responsibilities, his current savings total 3 months of bills. Needs to protect his income in case of an injury or illness. His co-worker recently lost everything due to injury on vacation even with great health and life insurance.
• Anticipates substantial increases and raises in his near future and throughout his career.
• Currently has Group LTD providing 60% taxable benefits that would only replace 40% of his income after taxes.

Solution:

• CPS Income Protection department proposed an Individual Long Term Income Protection Policy that could be tailored to his needs, guaranteed, and portable throughout his working years.
• CPS was able to secure a simplified issue policy for another $1,600 tax-free dollars per month, that would pay him until age 65 years old with no medical exams or tax returns.
• Given the option at no additional cost to be able to purchase larger amounts of benefits each year as his income grows within the same policy.
• Protects him in his own occupation so that he has the privilege of getting another job that pays well while still collecting his benefits in full.

Benefit:

• Now has sufficient coverage to meet his monthly financial obligations should he get sick or hurt at an affordable rate.
• He tells all the rest at his company about the shortfall in the group plan.
• Broker receives large commission, and renewal for life of the policy.

Challenge:

• Female Dentist age 43 -Owns Dental Practice with 3 employees.
• Current Overhead costs are $23,000 a month including Business loan used to purchase the practice.
• She is worried if she got sick or hurt and could not work, the loan and expenses would not get paid and she would be forced to close her business.

Solution:

• CPS Income Protection department proposed a Business Overhead Expense policy that would provide her with $23,000 a month after a short 30 day waiting period with benefits payable for 18 months and tax-deductible premiums.
• This will allow her to keep her business going while she recovers and she will have a business to come back to. If she is not coming back, she will have the practice to sell that has not depreciated.

Benefit:

• Even if there were a sickness or injury, her business will continue to run and all the business expenses would be paid.
• She tells all her fellow Dentists at monthly fellowship gatherings.
• The broker receives a large commission and residual for life of the policy in force.

Challenge:

• A 70 year-old female client wanted to make sure that her Life Insurance was still the most competitive policy on the market and available when her family needed it most
• Had a $1 million Universal Life policy that was in danger of lapsing in just 7 years based on the guarantees in the contract
• The premium was $13,201 and there was $37K of cash surrender value in her policy

Solution:

• • The CPS Life Department collaborated with the agent to come up with a suitable solution
  • CPS proposed that the client replace the old UL policy with a new Guarantee Death Benefit UL contract
  • We also recommended that she roll over the $37K cash surrender value via a 1035 exchange to the new policy
  • As a result, the client was able to use the $37K 1035 exchange to pay the entire first-year premium without any out of pocket costs.  In addition to paying no out of pocket premium in the first policy year, she was able to reduce her current premium of $13,201 down to $12,162

Benefit:

• The client got a new UL policy that was guaranteed not to lapse for 28 years instead of 7 years and was able to save 1,039.00 per year on her ongoing Life Insurance premiums

Challenge:

• A young couple in their mid 30’s had significant Life Insurance needs but no coverage
• They had a 300K mortgage, four children under the age of five and a limited budget
• The agent needed extra help when it came to finding a proper solution considering that his sole focus was Property and Casualty Insurance

Solution:

• CPS reviewed the client’s situation and suggested the following Term Insurance solution. Based on their desire to provide protection for the children and each other, CPS recommended that they purchase two $500K 30 year level Term policies
• The combined monthly Term premium was $115.00 which fit within their budget

Benefit:

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• Coverage was secured for the couple with a level guaranteed premium for the next 30 years at a low cost using Term Insurance

Challenge:

• Female, Age 57
• Wanted Long Term Care Insurance
• Had unsteady health history and build- underwriting would have been a long shot
• CPS discovered the client was a partner in a small business

Solution:

• Our LTC department proposed an employer sponsored multi-life plan
• We were able to educate the agent on a product with a minimum of three employees required, employer paid, only five underwriting questions, and a 10% policy discount, coupled with a tax deduction for the employer
• The agent then presented the idea to the other partners and they agreed with his recommendation
• The agent was able to parlay one policy into three

Benefit:

• The client received a policy for herself and her business partners while writing it off as a tax deduction

Challenge:

• 56 year old male
• Seeking 1 million of Term Insurance
• Declined due to his 9/2008 CT scan findings showing a pulmonary nodule

Solution:

• Following the CPS Underwriter’s review of the medical records, we felt the decision to decline on the pulmonary nodule and lung function test results was worth appealing
• Our Underwriter suggested a repeat CT scan and a doctor’s letter providing opinion on these two issues
• The information was obtained by the client, submitted to the carrier as an appeal with a request to reconsider based on the new information

Benefit:

• With the help of CPS, the agent was able to place a difficult case
• The client’s case was approved Standard with an annual premium of $6,140

Challenge:

• Review a $10 million UL informal case
• 70 year old male
• Had heart surgery in 1997 and treated for chronic vein disease
• Other BGA’s declined client after looking at medical history

Solution:

• CPS analyzed the case, obtained complete medical information and asked our carriers’ Underwriters to look at the case in the most favorable light possible
• Based on our strong relationships, we received several Standard offers from our strategic carrier partner carriers

Benefit:

• This case was placed Standard with one of our A+ carriers with a $419,000 premium