By Matt Kaas, Life Marketing Consultant
Let’s talk about a concept that will work for the financial professional who most likely picked up this magazine to see what the “hot” caps and rates were on an annuity, happened to stumble upon this article, and hasn’t figured out that it is about life insurance. If that is you, bear with me for five minutes, the time it takes you to read 400 words, and I think you will be able to identify a few suitable prospect opportunities for this idea within your existing book of business.
Typically a client’s retirement plan will be divided into three time horizons: there is the “now” money, or money that they are using to live on now and for emergencies, and the “later” money, or money that they plan on using to live on later in retirement. More than likely you have already taken care of your client’s “now” and “later” money, assuming you have done some sort of retirement income planning. That leaves the client’s “never” money, or the money that they will never need for income and will pass to the next generation.
Typically a client’s “never” money is invested in a bank account, or even a CD – some vehicle that provides the client with relative control over their money, access to it in case they needed it, and the security of knowing that their money is protected. One of the things that all of these options have in common is that they pass taxable as income to any beneficiary.
This concept utilizes single-premium life insurance as a more efficient wealth transfer solution for your client’s “never” money. The client gains the death benefit that will transfer income-tax-free to their properly named beneficiary, immediately creating a larger and more tax-efficient legacy for their beneficiary. The living benefits associated with this strategy address those concerns about principal protection as well as liquidity. Options that include return-of-premium features offer the client upside cash-value growth potential comparable to other vehicles (on either a guaranteed or indexed interest rate basis). Other benefits include accelerated benefits that offer the client the ability to accelerate a portion of their death benefit, income-tax-free, for qualifying chronic, critical, and terminal illness. And before I lose you I will mention that there are multiple “simplified issue” single-premium life options that do not require the client to get a medical exam – the only underwriting is a series of point-of-sale health qualification questions.
In essence, optimize your client’s legacy by helping to maximize their “never” money! Do not let sidelined assets “go to waste” when opportunities exist not only to create a more efficient transfer of wealth but also offer your client living benefits. For more information on how single-premium life insurance may be able to put your client’s “never” money to work for them, give me a call at 800.321.3924 x133.
Matt Kaas | Life Marketing Consultant
Ann Arbor Annuity Exchange
Ph: 800.321.3924 x133 | Dir: 734.786.6133
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