Provada Blog
 
WCL Sales Idea: How life insurance can be used for blended families with children from a previous marriage
 

Posted by Nickelle Leist on Mon, Apr 26, 2010 @ 12:29 PM

How life insurance can be used for blended families with children from a previous marriage
Advisors are expected to "know their clients." Did you know that blended families now are as common as traditional families across America? By "blended family" we mean a household where one or both spouses were previously married or in a relationship, often with children from the earlier relationship.

How life insurance can be used for blended families with children from a previous marriage
Advisors are expected to "know their clients." Did you know that blended families now are as common as traditional families across America? By "blended family" we mean a household where one or both spouses were previously married or in a relationship, often with children from the earlier relationship.

For blended families, the typical estate planning ideas often used with traditional couples may not be effective due to legal, psychological and practical considerations. The advisor should be familiar with certain strategies that are available to achieve the sometimes unique goals of the blended family client.

For instance, when children from a prior relationship are involved, a frequent concern is how to provide those children with a meaningful and timely inheritance. In conventional estate planning, the children would receive the bulk of their inheritance upon the death of their surviving parent. With a second marriage, the step parent may be closer in age to the children. In that scenario, the conventional plan may hinder or reduce the children's ultimate inheritance and the parent's wealth might not be distributed until the step parent's death. Use of single life permanent insurance and a properly designed ILIT can be a powerful solution.

Tags: Life Insurance, West Coast Life

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For less than $65 per month, your 40 year old client can StartSmart&Build their long-term care coverage
 

Posted by Nickelle Leist on Mon, Apr 26, 2010 @ 11:05 AM

Why let your younger clients go without any Long-Term Care coverage just because they are not yet ready to purchase all of their coverage today?

For less than $65 per month, your 40 year old clients can StartSmart&Build their Long-Term Care coverage.

Brain Shark on program: https://intramet.investmet.com/public/doclib/LifeMarketing/HTML/Hub/LSA/index.html

What does it mean to StartSmart&Build?

  • Your younger clients might have competing demands, and may not be able to afford
    all of the long-term care insurance (LTCI) coverage they feel they will need in the
    future.
  • With MetLife’s Simple Advantage® plan, your clients can purchase the amount of
    LTCI coverage that fits their current financial situation.
  • Later, they can build their protection by purchasing additional coverage as their
    financial situation and life change over time.
    • Every three years, up to age 65, your clients can purchase up to double their initial benefit amount (in increments of 25%).  They could potentially build their coverage to $600,000 TBA and $9,000 MBA.
  • Option to purchase every three years, up to age 65
  • Can double their original Total Benefit Amount, in increments of 25%
  • Without going through additional underwriting

LET’S SEE HOW IT WORKS…

To Start, your client, age 40, Purchases a Simple Advantage Policy:

$300,000 Total Benefit Amount

$4,500 MGA (Not available in all states)

With the Guaranteed Purchase Option (GPO)

= Monthly Premium of $63.69 / Annual Premium of $707.72 (This premium doesn’t include any potential discounts* such as household, preferred health or multi-life discount.  These could potentially decrease your client’s premium by up to 45%.

This policy includes:

  • 100% home care
  • 100 Calendar day elimination Period
  • Return of Premium on death up to age 70
  • 50 days of Bed Reservation per year
  • Needs Assessment and ongoing Care

Tags: Long Term Care, Met Life

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Liberty Mutual Estate Maximizer
 

Posted by Nickelle Leist on Thu, Apr 22, 2010 @ 07:27 AM

Liberty Mutual Estate MaximizerLiberty Mutual Estate Maximizer is a single premium, simplified issue life product. The policy is fully guaranteed, including a guaranteed return of principal, and has some attractive chronic illness and long-term care benefits.

Only 5 Questions Are Asked For Instant Approval of the Liberty Mutual Estate Maximizer.

Quick Facts About The Liberty Mutual Estate Maximizer:

  • Principal Guarantee – 100% of Principal is Guaranteed
  • Accumulation Value – Cash value grows income tax-deferred
  • Death Benefit – Income tax-free death benefit to beneficiaries
  • Access to Contract Values –
    • Withdrawals: 10% free withdrawals after 1st year of current account value
    • Regular Loans: Loans from issue up to the 10th contract anniversary.  Loan inters is charged on loan balance; interest is credited on account value pledged as loan collateral (charge 6%, credit 4%).  On the 10th contract anniversary, regular loans become preferred loans.
    • Preferred Loans:  loans taken on or after the 10th contract anniversary. 
    • Annuitization:  Surrender value or death benefit may be annuitized for no additional fee at purchase rates guaranteed in contract.
    • Waiver of Withdrawal Charges:  For qualifying medical stay. 
  • Surrender Schedule: 7 years.
  • Issue Ages: 0 – 85 (age last birthday) for instant approval.
  • Interest - New Interest is credited on an annual basis.  Interest rates are guaranteed for one year.  On each contract anniversary new rates are declared and locked for one year.
  • Payment Amount - $10,000 minimum premium.

Liberty Mutual Estate Maximizer is a great product for clients wishing to leverage their money and protect themselves against the risk of unexpected medical expenses.

Tags: Life Insurance, Liberty Mutual

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John Hancock Crediting Rate Changes
 

Posted by Nickelle Leist on Wed, Apr 21, 2010 @ 08:59 AM

Effective June 1, 2010, John Hancock will be decreasing the interest crediting rate on certain in-force and new issue Universal Life insurance products. Also, on June 1, 2010, the fixed account rates on certain Variable Life insurance products will also be decreasing.

Tags: John Hancock

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Fund your life insurance with LTC benefits using your IRA!
 

Posted by Nickelle Leist on Tue, Apr 20, 2010 @ 04:39 PM

Do you have clients who receive their Required Minimum Distribution (RMD) and do not have an income need for it?

Do they take their RMD money and place it in a savings or money market account?

Asset-Care® III by State Life Insurance Company, is a strategy that combines an individual retirement annuity (IRA) and a 20-pay whole life policy. The life insurance policy accelerates the death benefit for qualifying long-term care expenses, and is funded through the IRA - which is issued with a single premium.


Clients can benefit from qualified money not needed for income to provide protection from the costs associated with long-term care expenses, with unused amounts payable to heirs or charity.

Tags: Long Term Care

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