Blogs for the 'Financial Planning' Category

Taxes and Life Insurance Proceeds

January 17th, 2019

It is commonly known that the proceeds from life insurance coverage can provide survivors with a “safety net” for a myriad of possible needs like paying off debts, taking care of the insured’s funeral and other final expenses, replacing income, and / or ensuring a child or grandchild’s future college education fund.

But when you factor in Uncle Sam’s portion in terms of taxation, how much of the policy’s proceeds will actually be received?

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Should Life Insurance Be on Your Clients’ Agendas for 2019?

January 9th, 2019

With 2019 now in full swing, there are many people who are moving forward with making good on their New Year’s resolutions – and for a large majority of people, these goals will oftentimes include bettering their financial situation. With that in mind, for most any financial plan to be complete, it should include at least some amount of life insurance.

So, why is it that so many people are still under-insured (or not insured at all)?

One of the biggest reasons is because people typically don’t want to think about how things will be after they’re gone. Yet, while this is certainly understandable, the reality is that, due to unanticipated illnesses and accidents, the unthinkable can and does happen – regardless of one’s current age or health condition. And because of that, loved ones should always be protected financially…just in case.

Why Most People Need Life Insurance

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Helping Clients Understand Survivorship Life Insurance

December 10th, 2018

While life insurance is oftentimes used as a method of ensuring ongoing income and/or debt payoff for survivors, there are many, many other strategies where this financial tool can be an ideal fit. One is for estate planning purposes – and one type of coverage that is often used here is survivorship life.

What is Survivorship Life Insurance?
Survivorship life insurance policies are a type of policy that insures the lives of two people. Typically, the two insureds are spouses or partners. With survivorship life insurance, the two insureds are covered under one death benefit. This means that the benefits from the policy are paid out at the death of the second insured.

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Selling Life Insurance to Clients with Health Issues

August 27th, 2018

If you’ve been in the business of selling life insurance for any length of time, then you know all too well that a prospective client who has certain types of adverse health conditions may not qualify for a policy.

But even if someone has been turned down for life insurance coverage in the past, you may still be able to help them with not only securing coverage, but also with working towards other financial needs, such as supplementing future retirement income or saving for a child’s or grandchild’s college education.

 

Securing Life Insurance Coverage for Higher Risk Applicants

There are actually several ways that you could go with an applicant for coverage who may not necessarily be in the best of health. One option would be to offer a no medical exam policy. In this case, while there are still health related questions to answer on the application, the individual will not be required to undergo a medical examination. And because of this, he or she could pass through the underwriting process and secure an approval.

(As a side note, a no medical exam life insurance policy may also be an option for those who are fearful of needles. That is because there is no requirement for the applicant to submit a blood sample. In this case, while the policy’s premium will oftentimes be higher than that of a comparable policy that requires full underwriting, going this route can provide a stress-free method of obtaining coverage).

In other instances, if an individual has even some serious health conditions, there is the option of a guaranteed acceptance policy. As the name implies, anyone who applies for this coverage will be accepted.

These policies will typically only require the applicant to answer a few (or no) medical questions. And, there is also no medical exam required. Because of this, a no medical exam life insurance policy can oftentimes be approved and issued very quickly – in some cases, the very same day that the individual applies for it.

These policies can be either term or permanent. With a term policy, there is death benefit only coverage, with no cash value or savings build up. A permanent policy, however, will provide a death benefit component, as well as a cash value component.

The cash in the cash value area of the policy is allowed to grow tax-deferred, so it can essentially build up more rapidly than if the gains were taxable each year. These funds can be borrowed or withdrawn for any reason by the policy holder, such as for payment of medical expenses, supplementing future retirement income needs, or helping a loved one with the payment of college tuition costs.

 

Ensuring That You Keep Your Prospecting Pipeline Filled with Solid Leads

Regardless of your tenure in the insurance industry, it goes without saying that unless you have someone to talk to about your product, it really doesn’t matter how good your offering is because it is highly unlikely that you’ll make very many sales.

But what if you could forgo many of the “traditional” (and very outdated) methods of life insurance prospecting and marketing and instead have a steady flow of leads coming in on a regular basis?

Sound appealing?

If so, give us a call today, toll-free, at 1-800-643-6143 and we will give you all of the details that you need for getting started.


Protecting the Business Interests of Clients Using Life Insurance

July 13th, 2018

If you have clients who own or operate a business, then it is likely that they are heavily relied upon for the company’s success – and that it could make for a big impact if they were suddenly no longer there.

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Will Your Clients Need to Worry About Student Loan Interest Rates?

June 13th, 2018

With the cost of a college education climbing higher every year, it is no wonder that more than 70% of all students graduating from four-year colleges have at least some amount of student loan debt. Depending on whether a student attends a public or a for-profit institution, this figure could actually rise to nearly 90%.1

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The Ins and Outs of Life Insurance Policy Loans

May 14th, 2018

There are many types of permanent life insurance policies that offer a cash value component. The cash value in a permanent life insurance policy typically earns interest or returns, allowing it to grow over time – and it can do so on a tax-deferred basis.

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Leading Your Sales Presentation with Life Insurance Living Benefits

May 4th, 2018

Although life insurance death benefit proceeds can provide financial security for an insured’s survivors, this financial vehicle can also be used as a tool for solving a wide variety of needs while the policy holder is still alive.

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Using Life Insurance for Multiple Client Needs

April 30th, 2018

If your clients have multiple coverage needs, then it is likely that they own a number of different insurance policies, such as life, long-term care, disability, auto, and home owners. It is also likely that they are paying numerous premiums in order to fund this array of coverage.

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Life Insurance and Taxes

April 6th, 2018

Throughout life, there are many constants – and one of those is paying taxes. We typically pay tax on the items and services we purchase, as well as on the income that we earn, and on the gain that we receive on many types of investments.

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