May 18th Self-Directed Power Lunch Recap

Welcome to the relaunch of our popular Self-Directed Power Lunch (SDPL) meetings.peter-steiner-power-lunch-cartoon

At our SDPL meeting on Thursday, May 18 co-host Peter Holmes CLU, ChFC, RHU, REBC, CASL (Life Insurance Consultant at The Guardian Life Insurance Company of America) did a superb job addressing questions posed and shared a couple of great product ideas and sales concepts.

Here is the list of topics discussed, followed by links to handouts and/or helpful websites:


Upcoming SDPL scheduled meetings:
Thursday, June 8 | Brooklyn Isaac Deutsch, Account Executive Brokers Central
Tuesday, June 20 | Brooklyn Berel Bronstein, Financial Representative Guardian Life Insurance
Tuesday, July 11 | Brooklyn Samuel Zaidman, CLU, ChFC, CFBS Financial Services Professional MassMutual Financial Group

Do you have a speaker you would like to recommend? Better yet, ask us how you can be the co-host and present at one of our upcoming SDPL meetings! To be put on a priority SDPL invite list make sure to drop us a note with the topics you would like to learn more about at future meetings.


Getting licensed to sell Long-Term Care Insurance: Many states require an initial 8-hour LTC course and ongoing 4-hour LTC course to become licensed to sell both Traditional LTC products as well as many of the newer hybrid, linked and add-on LTC riders. Visit ClearCert for State-by-State rules and course options, you can also visit WebCE for course options.

Whole Life Index Participation Feature: The Index Participation Feature (IPF) is a patent pending feature that combines the guarantees of Whole Life with the upside potential of index linked flexibility. The IPF allows Whole Life policyholders to link a portion of their paid-up additions cash value to the performance of the S&P 500 Price Return Index, subject to cap, floor, and participation rates. To learn more about this unique Guardian rider, what it's all about, IPF mechanics, delivering the guarantees of the IPF and how to sell the IPF download the IPF FAQ guide.

Life insurance held in a Qualified plan: While this topic deserves its own focused in-depth session, our study group did a fine job addressing the basics of holding a life insurance policy within a retirement plan. For more on the topic we suggest downloading Retirement Planning Chart, What Type of Qualified Plan Will Work Hardest for Your Client?, Valuation of Life Insurance in a Qualified Plan and Retirement Planning and Business Life-Cycle guides/handouts.

IRA Rollover Rules: Here is a handy IRS IRA rollover chart that walks you through many Rollover scenarios. You may also want to visit the following IRS web pages for more detailed information. SIMPLE IRA Plan FAQs and Site Index – Information for Retirement Plans

10-Pay Whole Life as a bond portfolio alternative: At our meeting, we discussed the idea of positioning a 10-Pay Whole Life as bond alternative, this can be achieved in part by paring it up with Pre-Paid Side Fund. The following spreadsheet and concept handout illustrate this idea in a practical way.

10-Pay Whole Life policies vs an Overfunded Traditional Whole Life policy: Same client, same premium amount and the same number of years of premium payment. Which one has a better cash value IRR? Is it the 10-Pay Whole Life design or a traditional type of Whole Life with an overfunded premium? Look at what we have found by downloading our Spreadsheet and supporting 10-Pay, 10-Pay + IPF & Traditional WL Illustrations, WL + IPF. (The outcome may be different based on client age, rating, carrier and product used)

Long-Term Care life insurance policy riders: As many are aware, the LTC marketplace shifted dramatically over the past 3 years. This has opened a world of options with Hybrid and Linked LTC products including many popular LTC riders. Some of the riders are reimbursed based, while others are indemnity based. This LTC rider FAQ is a good introduction to this topic. Other popular products include single pay options that now come built on both UL and WL chassis. For an in-depth conversation on this topic join us at our upcoming SDPL meeting on June 8th with our own Isaac Deutsch.

Survivorship Whole Life vs Secondary-Guarantee Survivorship Universal Life: While Universal Life and Whole Life products are very distinct in their characteristics, understanding how to position these products is often key to an appropriate recommendation. The following spreadsheet will show how these products stack up side by side on death benefit and cash value metrics, followed by the supporting Secondary Guarantee Survivorship UL and the Survivorship Whole Life illustrations.

Why people buy survivorship policies: These types of policies are most commonly used for Estate and Legacy Planning, at our SDPL meeting the idea of positioning a Survivorship policy as a Retirement Asset protection idea was brought up. Essentially, the client would purchase an SWL or SUL policy as an insignificant percentage of their retirement account to protect against market volatility or decline as well as estate and possibly punitive income taxes that may become a burden to the eventual beneficiaries. For more on this idea drop me a note to follow up with you. You may also want to look at Top 5 Reasons Why You Should Consider an SWL Policy and SWL Product Highlights.

1035 exchanges with a loan present: This topic also referred to as a Loan Rescue or 1035 Exchanges and Mirrored Loans can be a great solution for a client saddled with a permanent policy with an existing loan. For more on this concept download Client Strategies: 1035 Exchanges and Mirrored Loans and Exchanging Your Policy: "Mirrored Loans" – Your Options & Important Considerations. It is important to know that not all carriers have a program to accommodate a 1035 exchange with an existing loan and not all carriers are setup to provide certain data points required to support the exchange. Prior to offering this as a solution to a client it is important to verify that both the existing carrier and the new carrier or new policy have the setup to support. There are other creative alternatives to rescuing a policy with an existing loan. Our team at Brokers Central can help you and your client come up with the appropriate solution to solve this problem.

Disclaimer: The views expressed in this blog are those of the author and do not represent the views of our meeting co-host or any carrier referenced.