Term insurance lasts for only a certain number of years and it can be a bargain for your clients. It’s an excellent and very affordable way of protecting against financial disaster, but make sure you warn your clients against sitting on a policy until it is too late to replace it with a permanent option. There are 6 great reasons why a term policy should be converted:
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The insured will likely outlive their term life policy.
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Term policies are not generally seen as an effective estate planning tool, as they will expire after the end of the term- what happens to a growing estate problem then?
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Do we rent or do we buy? There is power in owning and having equity which can pay for college educations, for example.
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Restructuring a client’s retirement plan can include converting to a permanent policy which can be used as a supplemental income tax free.
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A disabled adult may need continued care after the death of the insured.
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No need to go through another medical underwriting as the healthy rate offered when the term policy was originally purchased becomes the offer at the time of conversion.
And a bonus….. External Conversions. What is an external conversion? The specifics vary among participating carriers, but they generally allow clients to convert their existing term policy to a new, permanent policy with an entirely different insurance carrier. More affordable permanent policy rates may be available, or the different carrier may offer types of permanent policies that their current carrier does not offer. Do you discuss life insurance at every client annual review meeting, and review that existing term policy? Even discussing a client’s group term policy at their employer can be as sobering due to even more lack of portability. Call us and allow the conversation to begin….. your clients will thank you for being proactive with them as their advisor.
Upcoming Events
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Plan now to attend
As a financial, investment, retirement, or accounting professional, long-term care planning can be challenging–specifically because it may not be the primary focus of your practice. In fact, you may even avoid it. Yet at the same time, learning about long-term care could be one of the most crucial ways to serve your clients. A potential exposure so great, it could render all other strategies meaningless.
Join us for a free webinar and learn options available for your clients with the Care Solutions–a portfolio of asset-based LTC products that can provide tax advantages and benefits even if care is never needed.
During this webinar you will learn:
- How certain annuities can benefit from the Pension Protection Act and provide income tax free withdrawals for LTC
- About products that issue all the way up to age 85
- How to use qualified money to gain long-term care benefits
- How to speak with your clients about a negative topic (LTC) in a positive way
This learning opportunity will give you the ‘nuts and bolts’ of our products and arm you with the knowledge you need to succeed. At the same time, you will gain a level of comfort and learn how to broach this at times difficult topic with your clients.
Register today! |
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 Featured Speaker:
Chris Huntsman,
Senior Development Wholesaler
OneAmerica
Full Product Webinar:
– Client presentation (advisors only)
– Asset-Care (hybrid life/LTC)
– Annuity Care (hybrid fixed annuity/LTC)
Click Date/Time to Register for Webinar:
* All times Eastern
Friday, July 22nd at 11:00 AM
Friday, August 5th at 11:00 AM
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For company and recruiting use only. Not for public distribution.
Products and services provided by The State Life Insurance Company, Indianapolis, Indiana. Products not available in all states or may vary by state.
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© 2010 OneAmerica Financial Partners, Inc. All rights reserved. OneAmerica® and the OneAmerica banner are all registered trademarks of OneAmerica Financial Partners, Inc. |
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How can Fixed Indexed Annuities help clients retire on schedule?
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Fixed annuities, with their guaranteed interest rates and guaranteed return of principal (less any withdrawals of interest or principal) can help preserve client’s assets, potentially softening the impact of a choppy stock market on their accounts.
- A conservative approach….. provides the client with safety of principal, tax- advantages, liquidity, and legacy planning.
The Next Big Thing in Annuities: If you’re not talking with your clients about QLACs, expect that your competition is. Learn how big this opportunity really is!
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It is imperative to explore all financial options for the clients- why let a client lapse or surrender a policy when determining there is an alternative. Life Settlements- Life Insurance , like every other asset, has a Market Value. Before your client considers letting a policy go, call us to discuss the specifics. And interestingly, all policy types are considered now for Life Settlements- even convertible term insurance. The reality is: you will set yourself apart from other advisors and agents by educating clients on Life Settlements and the options for the unwanted/unneeded life insurance. Clients remember you told them about an idea that others did not- and isn’t that what we want as agents and financial advisors? To be distinguished as unique, with different and compelling ideas for clients provides them with more than the average agent.
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Are you aware within Fixed Indexed Annuities and Indexed Life Insurance there are 100% participation in the various indices up to the caps? Are you aware there are uncapped (yes uncapped) index strategies allowing the client the full index performance less a spread? Why is any of this important? Because clients have told this industry after 2008 that they no longer can endure the wild rides with their money. They have firmly said they are aware they need some exposure to the non-guaranteed markets, but they now also know they must be more diligent with safety, as their individual lives are uncertain and when retirement happens often is not by choice but more by circumstance.
See the attached White Paper by Allianz Life Insurance Company “Reclaiming the Future”
Looking for the latest 2016 tax summary guide? Download here
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