Author Archives: DPhillips

Does your client have Cash Value that isn’t being utilized properly?

What was the purpose for the cash value in the first place? If the cash value isn’t needed, why not move it into a vehicle that would allow your client to maximize their dollars. Depending on your client’s unique situation, you could help your client maximize their dollars by moving the Cash Value into a Guaranteed Universal Life Insurance policy which would give them a significant amount more of Death Benefit.

Here is a recent example:

  • 56 year old, Preferred risk male who owned a Whole Life policy
  • Whole Life policy had $130,000 in cash value
  • Whole Life policy death benefit was $508,000
  • Whole Life policy continued annual premiums were $7,000 until age 100
  • Client did not need the cash value
  • Client primarily needed and wanted death benefit
  • This client chose to move the cash value into a Guaranteed Universal Life policy and short pay the premiums so that when he retires, there would be no further premiums due.

The above scenario allowed the client to maximize their dollars by almost doubling his death benefit while significantly lowering his future premium outlay. This could be a great option for one or more of your clients as well. Call us when you are reviewing your next client file so we can help you design a case that is innovative and puts your client’s money to its best use! We look forward to helping you maximize your client’s un-utilized Cash Value!

 Thank you for your business!

September is Life Insurance Awareness Month

Life Insurance Awareness Month (LIAM) is a great opportunity to talk to your clients and prospects about their life insurance needs. A recent LIMRA study found that 30% of households in the U.S. have NO life insurance coverage…30% represents 35 million people. In addition, many of those people who already have Life Insurance do not have enough coverage. With September being LIAM, this is a perfect opportunity to either provide new coverage or review your client’s current coverage. Please click here for a link to Lifehappens.org’s LIAM tool kit.  Call us today to get a quote or to begin working on a client file!

Update: NAIC Suitability Model Regulation Requirements of Producers

States have adopted the NAIC Suitability Model effective as of the dates indicated in the below chart.  All producers selling annuity products must complete a one-time four-hour general annuity training course  in the states indicated below.  A grace period for previously licensed producers may be available as indicated in the chart below.  The regulation also requires that carriers provide a product-specific training in order that producers may have an adequate knowledge of the specific mechanics and material features of the particular annuity being purchased.�

 

State

Effective Date

Training Requirements

General Annuity Training Grace Period Date


 
 

Product Specific

General Annuity

 
TX

September 1, 2011

Yes

Yes

March 1, 2012

SC

September 25, 2011

Yes

Yes

March 25, 2012

MD

November 1, 2011

Yes

Yes

May 1, 2012

HI

January 1, 2012

Yes

Yes

January 31, 2012

IN

January 1, 2012

Yes

Yes

July 1, 2012

KY

January 1, 2012

Yes

Yes

July 1, 2012

 

Previously Adopted States:  IA, CO, RI, WI, DC, NY, OH, OR, WV, ND