Life Insurance

Do you have a client who would like to purchase a Disability Income policy but face the difficulty of qualifying due to the nature of their profession? Perhaps their reported income is low and the amount of benefit available is insufficient.

A DI alternative through a Linked Benefit Life Insurance policy

Today, many carriers are offering Linked Benefit products which allow your clients to access a percentage of their policy’s death benefit in order to cover their Long Term Care expenses.

Typically, in order to qualify for this acceleration of benefit, the client will need to have lost the ability to perform two of the six Activities of Daily Living (ADL’s) which include eating, bathing, dressing, toileting, transferring and maintaining continence. Odds are that if you could satisfy the parameters to go on disability claim then you could also satisfy these parameters to exercise your LTC benefit.

The benefit is not based on earnings and there is no income verification needed

This product qualifies your client only on their health, not on their occupation. As a result, you can offer a Linked Benefit plan to any of your clients who could qualify for a typical Life Insurance policy. There are numerous products that offer this LTC rider.

Whether your client is interested in a guaranteed death benefit, building cash value or a combination of both, there is a product available that can provide a monthly benefit in the event that your client is unable to perform two ADL’s and cannot earn their income.

Call your dedicated Life Marketing Specialist if you have a client to consider or if you would like to learn more about how Linked Benefit Life products work.

Losing a loved one can be devastating to a family, both emotionally and financially. While it is almost impossible to prepare for the emotional challenge of death, it is much easier to prepare for the financial challenge when adequate life insurance coverage is in place.

More than half of Americans believed that they would feel the financial impact from the loss of the primary wage earner within six months.

This doesn’t just speak to households where there is no existing life insurance coverage in place

Over one-quarter of consumers who already own life insurance feel that they do not have an adequate amount of coverage.

As life insurance agents, staying in regular contact with existing clients helps to ensure that the amount of coverage in place is commensurate with changes in their lifestyles.

Many life events such as marriage, divorce, the birth of a child, changes in employment or the purchase of the property will trigger a change in the insured’s need for life insurance coverage. When your clients are going through these experiences, their life insurance coverage is often not at the front of their mind.

We have tools available for your immediate use to simplify the regular review of your clients’ existing coverage

Including customized kits for both you and your clients. Call your CPS Life Sales Rep today to learn more about the resources available.

Benjamin Franklin famously wrote in a 1789 letter, “In this world, nothing can be said to be certain, except death and taxes.” If we know this, should we guarantee a life insurance benefit at our youngest and healthiest age? This may be the million-dollar question.

Let’s take a deeper dive strictly from a death benefit play and examine term vs. permanent insurance premiums on a current 30-year-old to his life expectancy of age 85

Guaranteed universal life policy at top health rates:

• $500 a month
• Buys $1,529,413 death benefit
• Over the next 55 years a total of $330,000 funded into the policy

Let’s take the same client, though in this situation he only wants 20-year term – He is looking for the same death benefit of $1,529,413

30 years old purchases a 20 year term at top health rates:

• $52/mo.
• Over twenty years, premiums total $12,480

At 50 years old he purchases another 20 year term at Preferred health rates:

• $264/mo.
• Over twenty years, premiums total $63,360

At 70 years old he purchases his last 20 year term at Standard health rates:

• $4006/mo.
• Over fifteen years, premiums total $721,080

Term life insurance policies serve a very important purpose. It provides coverage for a limited period of time and is the most affordable type of insurance when initially purchased. Though, if one is to live to life expectancy it can be far more expensive.

It is common to think about term vs. perm as an either/or decision, it may be more appropriate to think of both. Especially if one believes there will always be a need for life insurance.

Contact your life insurance specialist if you think a combination is right for your client.

 

Small business owners often wear many hats – they are HR, IT, Senior Management, and Operations all-in-one. Being a small business owner can be tiring and time-consuming.

Appeal to this market by presenting them with a simple plan – so they can have peace of mind knowing their family and business will be in good hands when they move on.

Help business owners prepare for the future by using a buy-sell agreement.

71% of small business owners surveyed said they have thought about who would run their business in their absence, but only 35% of all surveyed had a business continuation plan.¹

Many business owners don’t have formal plans to transfer their business to a successor in the event of retirement, disability or death. A business may fail due to confusion and lack of a clear plan after such an event.

As a life insurance professional, you can help business owners create a continuation plan using life insurance policies.

How You Can Help Business Owners With Life Insurance:

• Establishes a guaranteed buyer at the time of the triggering event
• Sets a price for the business when the business owner is less vulnerable and ensures the business will be sold at a fair market value
• The surviving business owner(s) won’t have to run their business with the deceased person’s family members (if they choose not to)
• Provides liquidity, when the family needs it most, to fund the sale of the business to surviving partner(s)

We will help you prepare business valuations, design the proper life insurance proposals – give you the tools to become a business insurance expert.

Contact your Life Sales Representative today – maintain a competitive edge in the business insurance marketplace.

1. Lifehealthpro.com, New Tax Laws Open the Door for Business Insurance Discussion, April 2011. The survey was based on 874 small businesses with 100 employees or less.