During the last week we have worked on dozens of life, long term care, disability and annuity cases working alongside our Advisers.
If you are not discussing these issues with your clients, then who will?
Westland is here to help you protect your clients, their, families, their businesses and their portfolio.
I have been asked many times “At what age should LTC be purchased” and the short answer is, today! Today, may be the healthiest day of the rest of your life and insurance products will likely never be less expensive in the future. You definitely must buy insurance before you need it.
Case 1 – Young Couple – Supplemental Retirement
Clients, ages 39 and 41 sought to add additional life insurance to protect their family and had been introduced to a permanent concept. The primary breadwinner was underinsured using a simple needs analysis. Current coverage was $750,000 with about $80,000 in income. They had goals, to retire about age 65, fund college education for two young children and to pay off the mortgage. For about $100 per month, they could add $1,000,000 20 year term for him and $500,000 for her. Should the worst happen to one or both, the family would now be much better positioned to continue financially.
We also illustrated a permanent option for consideration so that they would have some death protection if they survived the term insurance and to supplement retirement.
For $300 per month each:
Him: Max funded IUL starting death benefit of $100,000. At age 65 the death benefit expected to be $267,000 and cash value $167,000. The hypothetical TAX-FREE income to age 95 was just over $14,000 annual. At age 85 the death benefit was $122,000. The estimated account value needed to generate $14,000 tax free was over $430,000 at his age 65.
Her: Max funded IUL starting death benefit of $125,000. At age 65 the death benefit expected to be $321,000 and cash value $198,000. The hypothetical TAX-FREE income for to age 95 was just about $17,000 annually. At age 85 the death benefit was $140,000. The estimated account value needed to generate $17,000 tax free was over $500,000 at her age 65.
Case 2 – High Blood Pressure – “White Coat” Syndrome
Agent had applied for large term life policy at a Preferred health rating and was made an offer at Standard Table 4. Findings were that, though she was a young high achiever, she had very high blood pressure. This was uncontrolled. The first explanation response was, that the high reading during the paramedical exam was related to anxiety. Sometimes referred to as “white coat” syndrome – a fear of doctors. After a more thorough review of medical records, it was determined that the issue was a bit more serious and this client should be addressing her medical condition.
We recommended that she accept the coverage at the rated table-4 rate and work on getting her blood pressure under control via diet, medication or other stress relief measures. Then we could request a reconsideration with the current carrier or seek out new coverage after one year. Even though this client would be year older, the coverage would still be much less expensive if she could qualify for Standard Health and no table rating and hopefully her health would be much improved.
Call for assistance with any LTC, Annuity, DI or Life case today.