Key Person Contingent Life: Great Ideas for Unique Insurance Sales Opportunities

Three partners whose firm would like to purchase $2,000,000 of Key Person Life Insurance on each of the very busy partners. Like many Key Partners, they shunned the extensive underwriting requirements and the required paramedic exam.

The producer called Petersen International Underwriters and was provided quotes on each partner for a $2,000,000 Key Person Contingent Life Plan. Offered in a very timely manner and requiring only a one page application and financial justification, this plan was just the "key."

The Petersen International Underwriters Contingent Life plans can help producers solve problem cases thought to be undoable or even uninsurable. Informed producers now make Contingent Life part of their portfolios.

Some common uses for Petersen Key Person Contingent Life Insurance:

• Key Person has a history of DRUG use
• Key Person has recently been charged with a DUI
• Key Person needs coverage effective immediately
• Key Person does not want to secure Life coverage
• Key Person is afraid of needles and is not willing to take the Life Insurance exams
• Key Person is on assignment in a foreign country and is not able to secure a policy
• Key Person must travel to War Zones, causing the traditional carriers to decline the application.
• Keep this list handy for solutions for those out-of-the-ordinary cases.

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Choosing the Right Buy Sell Structure From a Tax Point of View

Financial planning professionals work with business owner clients to protect the business, and make sure the owner’s goals are met. A properly drafted and implemented buy sell agreement can act as a key tool for the professional and client.

Professional advisors are often asked to identify the best buy sell structure from a tax point of view. Picking the most efficient way to make a transfer happen from a tax perspective requires balancing multiple tax considerations, and making judgments about managing possible adverse results.

Click here for a great article on how the various types of buy sell plans are treated from a tax perspective.

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Principal Jump into the Exit-Planning Market

The Principal is making it easy for you to jump in to the exit planning market. Our simple – yet comprehensive – exit-planning site will guide you through the process – step by step. We provide you with a turnkey sales process and all the tools and support you'll need. What's stopping you from taking the plunge? Start by learning more about our exit planning approach and then check out the profile of a typical client. Click here.

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AXA Additional Coverage Offer

Great news! AXA Equitable Life Underwriting is pleased to announce offers for additional coverage upon policy delivery without additional medical or financial requirements. All policies will be reviewed when the case is ready for approval to determine if the client qualifies for additional coverage. Policies that do qualify will have a brightly colored page inserted in front of the policy documents indicating the additional amount of insurance available and the requirements necessary to complete the transaction. Click here to see a sample of this flyer.

Information about this program will be included with policies as they are delivered to producers. Offers for additional coverage will be valid two months from the date of approval and are subject to all normal rules.

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Pru ROP Term Reprice

Starting August 16, Pru decreases premiums by an average of 8% on its Return of Premium Term. Recently, many carriers have increased their rates on their return of premium term products or dropped the product entirely. At Pru, not only have we kept the product as an essential part of our dynamic product portfolio – premium rates will drop by an average of 8%!
 
Reasons why you should sell Pru’s ROP Term:
PruLife^® Return of Premium Term will be repriced to offer improved competitiveness and top quartile rates in key cells for all level-term periods! Significant rate decreases (up to 19%!), can be found at:

• $250,000 - $1 million face amounts
• 20 and 30 year level premium periods
• Top four non-smoker underwriting categories

Introducing a new band
We’ve added a new face amount band at $500,000 that allows us to target premium reductions!

• Band 1– $100,000- $249,999 4 Band 3– $500,000- $999,999
• Band 2– $250,000- $499,999 4 Band 4– >= $1,000,000

Plus, be sure to keep an eye on the face amount your clients request – at some band breaks you may be able to offer your clients higher face amounts for lower premiums!

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Lincoln Life Announces DurationGuarantee UL

It’s the perfect complement to the comprehensive Lincoln UL product suite!
Lincoln DurationGuarantee UL offers:

• Affordable guaranteed coverage for the duration clients needs
• Shorter guaranteed duration coverage at older ages
• 1035 rollover capability for short duration guaranteed coverage at all ages
• A solid alternative when term insurance isn’t an option
• The strength of Lincoln

Flexible premium life insurance that provides short-term, guaranteed protection through the Coverage Protection Guarantee (CPG) Rider. This product is not meant to generate significant cash surrender value.
 
You must select your duration period at issue. Your selection cannot be changed after issue. It is important to select the duration that meets or exceeds your insurance needs. After your guaranteed coverage duration ends, the cost for continued coverage will increase dramatically. Duration options are as follows:

• 10-year, 15-year, 20-year, 25-year, 30-year, to age 95

CPG rider-Continues coverage, even if the policy’s cash surrender value does not cover the monthly deduction, as long as the Coverage Protection Guarantee Test is satisfied. This rider is included at issue.
 
Product is not yet approved in the following states: CA, IL, KY, MD, MA, MN, MT, NV, NH, NJ, NY, PA, TX, VT and VA

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Think Prudential for Your Older Age Term Clients

Check out the many benefits of Prudential Term policies: - Living Needs Benefit Rider (Up to 80% of the death benefit for Nursing Home Option and 90-95% for the Terminal Illness and Organ Transplant option) – Pru term is always convertible for at least 5 years (75 year old clients that purchase 10 year term policies can convert until age 80) – Pru Term is convertible to any permanent product, including our guaranteed UL the Pru Life UL Protector. - Pru offers Age Last Birthday Advantage. Where most carriers will make a client a year older within six months of their Birthday, Pru is always actual age! - Pru offers competitive underwriting. Pru is very competitive for many medical impairments - CAD, Diabetes, Build, Family History and more - For clients that smoke cigars, smoke pipes, use chewing tobacco, use nicotine gum or use nicotine patches we can offer up to Non-Smoker Plus rates. Celebratory cigar users can actually get up to Preferred Best rates!

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Aviva Announces LifeStage UL

Aviva LifeStage UL is a current assumption universal life product designed to be a possible alternative to No-Lapse Guarantee products. Clients receive permanent death benefit protection PLUS cash accumulation potential with premiums that are very competitive with our NLG products. Premiums paid on an Aviva LifeStage UL policy can carry to life expectancy and beyond (even using guaranteed interest), plus it provides greater flexibility and cash accumulation potential than an NLG product.

• Guaranteed minimum interest rate of 3.50%, among the highest guaranteed minimums in the industry!
• Traditional fixed declared rate currently 5.25% credited monthly.
• Potential for higher declared rates in the future but never less than 3.50%.

Target Markets:

• For clients who prefer a traditional fixed interest crediting product
• For clients who desire a permanent death benefit with the added potential for cash accumulation.
• Provides competitive endowment premiums across a range of ages and risk classes, especially for issue ages under 65.

Aviva LifeStage UL will replace Patriot Solution in approved states. Guidelines have been established and will be driven by the application signed date. Click here for more information on state approvals and transition guidelines. Please note in states that have not approved Aviva LifeStage UL, we will communicate a separate transition schedule upon approval, using a similar timeline.
 
This product is not yet approved in the following states as of 8/16/10: CA, FL, MA, MD, MN, MT, NY, OH, OR, PA, TX, VA, VT.

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Are you Taking Cash With Your Applications?

At FAIU, we have had several cases where the applicant could have met the criteria but the advisor did not summit money with the application. Subsequently, prior to the conclusion of the underwriting process, the applicants died due to an accident or sudden health change. The advisor was not able to deliver a check to the survivors in each of these cases, which was devastating to the families. 

Taking cash with an app, whenever the applicant qualifies, avoids the possibility of not being able to provide for the family if an unforeseen event happens during underwriting. It also makes for a stronger commitment to purchasing the policy on the part of the owner/insured and makes it much easier to deliver once it is issued. 

Remind your clients that taking money with the application will make sure that you will be able to come back with a policy or a check rather than an apology and condolences.

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NACOLAH-Custom Guarantee

Open up sales opportunities with North American’s Custom Guarantee.
These 5 reasons will unlock the potential for new sales

1. Price. Ranks among the very best for guaranteed death benefit protection.
2. Chronic illness accelerated benefit rider. Allows the client access to a portion of the death benefit for a chronic illness. No additional premium required for the rider.
3. Minimum face amount $25,000. Not every case is $100,00 or more. Help those clients seeking low face amount coverage get the desired protection.
4. No premium payments beyond age 100. Not only is the Custom Guarantee very competitively priced to guarantee coverage to age 120, but it also does it with no premium payments beyond age 100.
5. Competitive commissions with a two-year rolling target.

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2010 May Provide A Limited Time Opportunity to Avoid Generation-Skipping Tax (GST)

With all the discussion and focus on the elimination of estate taxes for 2010, in some planning circles, the repeal of the 2010 generation-skipping tax (GST) has gone unnoticed. Due to this repeal, there are some unique planning opportunities. Congress’ failure to act this year may provide a great savings opportunity for multi-generation planning. With greater after tax gift values available, there remains a larger source of premiums to support the overall estate plan. Click here to learn more about the opportunities.

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Six Reasons Why Your Clients Need Life Insurance

Life insurance can provide a secure foundation for a financial planning program. It provides much needed financial security in several situations. Here are six reasons why your clients life insurance.

Click here to download a customizable piece you can use with your clients.

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