What is Your Client's Income Replacement Ratio?

Most people can provide a fairly accurate estimate of immediate cash needs, such as debts, funeral costs, short term living expenses, etc. Quantifying the amount of cash needed to generate income is generally more elusive.

People tend to underestimate how much cash it takes to generate an income stream over an extended period of time. The amount of life coverage they already own sounds like a lot of money when expressed as a lump sum and most families never really determine their income replacement ratio – the percentage of a wage earner’s income the family would need following his/her premature death and for how long.
 
Click here to view two quick reference charts that show lump sums needed to satisfy various income replacement ratios.

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Sun Life External Term Insurance Exchange Program

Sun Life Financial is introducing a new External Term Insurance Exchange Program. Policyholders who have purchased a fully underwritten single life term policy from our select group of carriers within the last three years may be eligible to exchange that external term policy for Sun Life’s Sun AccumULator Universal Life (UL) product. This program will be effective June 1, 2010.

Click here for the program guidelines.

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American General ContinUL

The new ContinUL^® universal life insurance policy offered by the insurers of American General Life Companies (American General) is the right direction. ContinUL offers very competitive pricing, with a focus on insureds under age 60 in continuous and short pay scenarios. American General offers the lowest premiums and highly competitive target premium among carriers compared in the cases illustrated in this table.

Click here to see the carriers compared.

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Looking For Something to Help Close More Sales?

Prudential’s Living Needs Benefit Rider is available at no additional premium on every individual life insurance product we sell. Unlike those of other carriers, this rider does not limit the Living Needs Benefit to permanent products.

While most other companies offer anywhere from 25% to 75% available for acceleration, Pru offers 100%. The Living Needs Benefit Rider also includes a Nursing Home Option. This option will resonate with your clients as it meets a pressing need in today's society.

Click here to see how the Prudential rider stacks up with competitors.

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United of Omaha-Term Answers 30T Extended Conversion Period

Effective July 1, 2010, the conversion period limit is being raised from 15 years to 20 years after policy issue. This applies to applications signed July 1, 2010 and thereafter. This change does not apply to policies in force. This will allow your clients five additional years to convert into any of our permanent life insurance products that are available in your state. The new policy minimum face amounts and issue ages must be met. Please look in the Term Life Answer 30-year policy for details on when it is eligible to convert to permanent life insurance.

Please note: This change applies to all states except Massachusetts and New York. We will notify you when this benefit becomes available in those states.

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West Coast Life’s One-Time Conversion Opportunity

Effective immediately, a special one-time conversion opportunity is being offered to all West Coast Life term policyholders with policies dated January 1, 2008 to present. The details are as follows:

• All West Coast Life term policies dated January 1, 2008 to present are eligible for this special conversion opportunity (subject to conversion provisions within the current policy).
• Eligible conversion products are ModLife or LifeTime Platinum III Plus (LifeTime Platinum III is not available).
• No evidence required.
• Full first year compensation.
• Conversion applications must be signed prior to January 1, 2011 and received in the home office prior to January 15, 2011.
• Products currently available for conversion (LifeTime Advantage Plus, Non-par Whole Life, etc.) still remain eligible.

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No Lapse UL or Current Assumption

Producers say that clients don’t want to worry about unpleasant surprises with their life insurance, such as a decrease in the policy’s crediting rate or an increase in non-guaranteed policy charges. But — is a NLG policy always the right option for all clients?
No Cash Value: NLG contracts produce little or no cash value. They might be appropriate for clients who do not want cash value or the flexibility that comes with cash value, but—

• What happens should their planning needs change?
• What if a more competitive product comes around in the future?
• What if one spouse dies and the client’s gifting capacity is cut in half?
• What if the policyowner(s) has a change in circumstances and needs to rely on the cash value to carry the contract for a few years?

No Flexibility in Premium Payments: NLG contracts have limited ability to miss or skip a premium payment without affecting or decreasing the guarantee.

No Ability to Take Advantage of Increases in Crediting Rates: NLG contracts are appropriate if your client is worried that interest rates will decline, does not think rates will increase or is not concerned about participating in any interest rate increases.

No Ability to 1035 Exchange into a New Contract: A situation may arise where a client may consider a 1035 exchange. Depending on individual circumstances, with little or no cash value, an NLG contract may be the “last train stop” in terms of a client’s life insurance. Think about how much life insurance and underwriting have evolved in just the last 10 years. Do you want to preclude your clients from future options if a more appropriate product becomes available?

Not Concerned with Competitive Internal Rates of Return: Compare the IRR with NLG contracts. In many cases, and with most common funding patterns, you will see that current assumption UL products will offer an IRR on death benefits competitive with NLG contracts.

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Why do life business with ANICO?

Here are eight reasons why and where to do your life business with ANICO:

1. Simplified Issue for Federal Employees, School Teachers and Businesses:
   • Not ‘Table Loaded’ & We Pay Full commission
   • Up to $250,000 – Federal Employees or Public School Teachers
   • Up to $100,000 - businesses/groups of 3 or more – 1 participant minimum
   • UL or WL – 1 page App. And just a few health questions - Table 4 to Standard;
2. Table Shave 4 to Standard Thru Age 85 - up to $99,999 on Executive UL
   • Non-med through age 50 (oral swab for $50,000-$99,999)
   • A Cash Accumulation UL + an Optional No Lapse Guarantee Rider! + Flexibility! 
3. Underwriting Improvements
   • Possible Standard Plus:  Type 2 Diabetics Ages 50+ w/good weight and control
   • Possible Standard: Anemia, Obesity (including surgical treatment), and Prostate Cancer
   • Increased Limits on Cholesterol, Blood Pressure and Build
   • “Occasional” Smokeless Tobacco users: Now like our “Celebratory Cigar Smoker”Category with best possible non-tobacco rating (no more than 2/Months and Negative HOS)
4. Lifestyle Friendly Underwriting Credits for:
   • CAD, Left Bundle Branch Block on EKG, TIA/CVA/Carotid Stenosis
   • Hypertension
   • Diabetes
   • Obesity
   • Breast Cancer
   • Elevated Liver Enzymes
   • Ulcerative Colitis
5. Age Last (attained age) and Ability to Backdate Six Months to Save Age
6. Pilots without an IFR Can Qualify for Preferred (No Exclusion for Aviation)
7. Competitive Tobacco Rates for all Life Products
8. Full Commission on all Table Ratings & on Flat Extras of S Years or Longer

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Aviva Update: Guaranteed UL Solution Now in Massachusetts!

Please note that Aviva's traditional UL, Guaranteed UL Solution Series II ("GUS"), is now available in the State of Massachusetts effective immediately. Please update your Aviva or 3rd-party illustration software for this latest version.

GUS II Fast Facts

• GUS is a GUL - Guaranteed UL Solution II is a guaranteed UL policy with a lifetime death benefit guarantee with very competitive NLG premiums, low overall expenses and utmost flexibility.
• Add the Wellness Rider, if available and the Life Protector Rider to GUS and you have the complete package!
• 3.00% minimum guaranteed interest rate; 4.75% current rate.
• Competitive NLG Pricing across all ages and classes, but especially age 65+.
• GUS/GUS II - State Approvals and Life Product Grid - see attached.

Other Aviva Things to Think About

• Don't forget our other NLG offerings: Advantage Builder III with NLG Rider, and our 2nd-to-Die Index Survivor UL with NLG Rider.
• Our most competitive cash accumulation, high target vehicle is Lifetime Builder II Index UL.
• Current assumption, high target UL Patriot Solution is available with a 4.00% min. guaranteed interest rate!
• Annual Renewable Term issues and is convertible through age 75 - competitive pricing first five years!
• Table Reduction Program - Table 3 to Standard, $10 million face or less, age 70 and under, permanent plans only.

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Revised Routine Requirements from The Principal

Revised requirements effective July 1, 2010:

• Doctor exams are no longer required for any age and/or face amount. If a doctor exam was formerly required, a paramed exam will now take its place.
• The duration for which labs and exams are valid has been extended to 12 months for age 69 and below. For age 70 and above, exams and labs are good for six months.

EKGs and treadmills continue to be valid for 12 months at all ages.

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United of Omaha’s GULC

Most sales of a GULC are designed for a long-term death benefit guarantee, regardless of the interest rate. Mutual of Omaha's GULC does that with numerous options and so much more.  Some highlights include:

• Dial guarantees from as few as 20 years to age 120.
• Issue ages from 18-85
• Very competitive from ages 55-75 at benefit amounts over $500,000.
• To reduce the premium, dial the death benefit below age 100 and notice the significant drop in premiums.
• Maximizing the guaranteed death benefit with a 1035 rollover and paying no more premiums is one of Mutual of Omaha's GULC's clear advantages. Short premium pay periods work as well.
• A Chronic Illness Rider built into the GULC has up to a $250,000 benefit at no additional charge. Our definition of Chronic Illness is being unable to perform 2 of 6 ADLs and confined in a qualified impatient home for 90 days or more.
• Age Last Birthday applies as it does with all of our life products.
• FIT Credits apply for mildly impaired risks (Maximum Table 4) to reduce the risk class up to 2 tables (lowest class available is Standard)
• Available for conversion from our competitive Term Life products.
• If you want a simplified underwritten product, Guaranteed Universal Life Express (GULE) up to $250,000 is available with no blood, no urine, and no paramed.

Flexibility and options are built into Mutual of Omaha's Guaranteed Death Benefit Universal Life products. Are you capitalizing on the Mutual of Omaha Advantage?

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AXA-Announces Athena Index UL

Athena Indexed Universal Life combines the long-term protection guarantees of a universal life insurance policy with the cash accumulation potential of equity index-linked interest options—a blend of benefits vital to a client’s long-term financial strategy.

The advantages your clients need now, through the years and into the future:

• Immediate, affordable financial protection for their family
• Federal income-tax-free death benefit
• Security for their business
• Downside protection
• Legacy planning
• Estate preservation
• Flexible premiums
• Choice of death benefit options
• Flexibility to increase or decrease the Face Amount
• Tax-deferred cash value accumulation
• Interest crediting with market-upside participation
• Potential for partial withdrawals and loans free from current income taxation
• No Lapse Guarantee Rider
• Plus an array of other optional riders

Available in most states as of July 12, 2010

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