Are your clients “house rich and cash poor?” Are you looking for a funding vehicle for Long Term Care premiums? Immediate Annuity premiums?
A reverse mortgage provides funds to a homeowner by drawing against the equity built up in the residence. In addition, the mortgage is not repaid each month. It is repaid when the last surviving borrower (homeowner) sells the home, permanently vacates the property or dies.
Most importantly, the homeowner can use the funds for ANY purpose: supplement fixed income, pay for at-home medical services, travel, or even pay LTC premiums.
Lifetime term covers the loss from a risk that is guaranteed to occur - fountain of youth not withstanding. No one lives forever, everyone will someday die. The question to consider is "Does it make sense to protect from a risk that is certain with a type of insurance that probably will not be inforce when the insured dies?"
Insureds have been told by many financial gurus that people should insure these permanent risks with temporary term insurance. Certainly, if the risk that needs protecting will expire in a known number of years - a 30 year home mortgage for example (assuming that the client will never buy a newer house or refinance in the future), income for a minor child, a bank loan or some business insurance situations like "keyman" coverage, these temporary risks can usually be adequately protected by term insurance.
Unfortunately, when clients try to protect against permanent risks with term insurance, they usually live longer than either they can afford to pay the ever increasing premiums or the term coverage terminates before they do.
Fortunately for today's consumers, leading edge carriers have developed a "Lifetime Term" product. These products have low guaranteed level premiums, payable to age 100 and death benefits that last to age 120 on a guaranteed basis, as long as the premiums are paid as planned. This "Lifetime Term" product is built on a Universal Life chassis, but it builds very low cash values, yet secondary guarantees provide the death benefit even if the policy has no current account or cash values.
Today's consumers can pay a guaranteed low lifetime premium and receive a guaranteed death benefit that will last to age 120. Some carriers offer an age 100 guarantee, but as more and more individuals are living past age 100, it's strongly suggested that consumers insist on age 120 coverage.
For example let’s look at the cost of “Lifetime Term” versus 20/30 year level term contracts for an individual age 50, in the preferred non-tobacco Take note that the renewal term premium in the very first year of renewal already costs more than the total of all premiums in the guarantee period. For example 20 year term – first 20 years of premium totals $14,200, year 21 renewal premium $15,802 and for 30 year term – first 30 years of premiums total $33,660, year 31 renewal premium $75,892.
Which policy should you recommend to your clients for their permanent needs? If you are unsure study the table above. The only time that your client’s cost of insurance is less is if the insured dies within the initial premium guarantee period.
Ask your client whether they want the temporary or lifetime term. What should you buy on your own life. Ask us for our spreadsheet of these “lifetime term products” for your prospect.
There are only a few qualities that make an insurance carrier stand out when competing for the Medicare supplement buyer: price, service and brand name recognition. Mutual of Omaha is one of the top companies selling Medicare supplement policies.
Price. Plan D at Age 65 costs $95.05 per month and Plan F at Age 65 costs $105.17 per month.
Service. Since 1966 Mutual has been a reliable provider of Medicare supplement policies and has paid more than $2.4 billion in benefits.
Brand Name Recognition. For more than 90 years, Mutual has been a trusted name in American households. Mutual of Omaha’s Wild Kingdom was started in 1963 and is back, with shows airing on the Animal Planet cable channel.
DISABILITY INCOME . . .Who’s paycheck can you help protect today? It was a fall. A bad fall. And Megan’s life was changed forever. At 37, a Manager of Sales/Director of Marketing for a family owned health care business, her true love was riding horses. One day, her horse was spooked and Megan was catapulted over the horse. Megan’s diagnosis was “closed head injury” - brain damage forever. Fortunately, Megan had an individual disability plan from Assurity Life.
Many clients would love to have a To Age 65 benefit policy but either don’t qualify or cannot afford this type of policy. Assurity Life offers a Catastrophic Disability Rider that extends the base benefit period beyond the maximum benefit period when the insured is unable to perform at least two (2) ADLs or is cognitively impaired. The rider provides additional base benefits on 1, 2 or 5-year benefit policies, for a maximum of 10 years. For example, an additional 8 years can be added to a 2 year plan. The cost for this rider is minimal compared to the benefits received.
These benefits continue to be competitive for small businesses. We can quote for groups of two or more for LIFE, AD&D, STD, LTD, Dental and Vision coverage. Most of the plans can be offered as either employer paid or 100% voluntary.
Effective January 1, 2003, Allied National announced a new marketing relationship with The United States Life Insurance Company in the City of New York, member of American International Group, Inc. (AIG). This partnership begins with the introduction of a new and improved Horizons Dental Design. This is the premier dental product for employers with more than 10 employees.
· No provider restrictions - choose any dentist
· 12 month rate guarantee
· Orthodontic benefits down to 2 lives
· No ineligible industries
Coming soon - the introduction of new life/AD &D, STD and LTD plans during the third quarter of 2003.
Educator’s Mutual Life Dental Plans just got better! A wider range of choices for your clients is now available. $0 Deductible and $100 Lifetime Deductible plans now available.
SMILE…We Have Great News!!
AIG American General is now marketing their National Dental PPO in all areas of the country! For 10+ groups, here is how it works:
100/90/60 $1000, $1500 or $2000 max, $50 deductible waived for preventive Endo & Perio in Class 2 or 3. Orthodontia optional.
Out of Network (R & C):
100/80/50 $1000, $1500 or $2000 max, $50 deductible waived for preventive. Endo & Perio in Class 2 or 3. Orthodontia optional. Did you know AIG/American General serves more than 65,000 group clients, including two-thirds of the US Fortune 500 companies?
The dentist panel is limited, but notice the out of network benefits of 100/80/50 R & C is the worst case scenario for employer/employee.
Did you know AIG/American General serves more than 65,000 group clients, including two-thirds of the US Fortune 500 companies?