Westland is here to help you protect your clients, their, families, their businesses and their portfolio.
We have always stated that the cost of care and protection strategies may never be less expensive than they are today? Over the past several months we have had several cases that were presented to clients a few months ago or several years ago but the clients never moved forward with the recommendation. Many top producers don’t forget these earlier discussions and recommendations and will hopefully bring back the risk discussion with their clients in the future. However, many are shocked at the pricing changes that have happened to their favorite option from not that long ago. Remember that most insurance is offered at rates of the nearest age and one year can make a big difference or even make something unavailable due to Covid-19 restrictions or other changes in health. Sometimes a Save age option should be considered (back dating a policy) and is a common practice. Always consider the benefits and drawbacks of such a case.
In fact one case recently caused some concern when the client received their renewal notice just a few months after issue as the back dated anniversary date came due along with another premium payment so close to the first payment.
There are multiple reasons and excuses for the postponement of implementation recommendations. Just know that you will always have a resource in Westland, and we will research available options when the time comes and we’ll present what is in your client’s best interest.
Dig out those old proposals and re-engage your client discussions about life insurance, long term care planning, disability planning, Medicare planning, retirement income planning or safe accumulation accounts and allow Westland to go to work for you.
Case 1 – Young Advisors
What a difference in approach to incorporating protection strategies into a practice.
One young advisor regularly calls to discuss cases for his clients or the clients of the senior advisor of the office he works in. We have helped many clients put in force protection strategies that will always be their best interest with no regrets.
Another young advisor is so busy assisting his senior partner and trying to build his own practice with wealth management clients that he has little time to devote to protection strategies their clients need and want. He even complained about the extra effort and paperwork required and that it wasn’t worth his time. I fear there are many clients in their practice are exposed to risks that could easily have been mitigated with a solid protection plan. Luckily, we are moving forward with a relationship that will take advantage of our Trusted Advisor program where we do all the work after an introduction.
Trusted Advisor Program
Case 2 – Safe Money Legacy
Advisor had a client age 72 and was not in great health and wanted a safe way to boost his legacy. For this case, the Advisor moved $200,000 into the Allianz 222. This product has no fees and includes a Protected Income Value (PIV) that credits an immediate 15% bonus and grows at 150% of whatever is credited by the index allocation performance. At death, this PIV is available to his beneficiaries if paid over at least 5 years.
So this client deposits $200,000 and his legacy is worth $230,000 growing an expected safe yield 3%-8%. Examples: If the underlying index allocation credited 2% the PIV would grow by 3%. If the underlying index allocation credited 6% the PIV would grow by 9%.
Case 3 – Overfunded Life – Repositioned
This case involved a cash value whole life policy that was originally put in place by a previous employer as an executive bonus plan that would provide a future supplemental retirement income to the insured. After leaving that employer at age 62, due to a sale of the company, the Restrictive Endorsement was removed and he could continue the policy on his own, cancel it for the net cash value or exchange it into something else that would be more beneficial in his situation.
We worked with the advisor to get several in-force illustrations to try and salvage some current benefits at a reduced and affordable premium. We weighed these options from the current carrier with options available from other carriers
The end result was the current carrier’s best alternative was for a death benefit of $175,000 and annual premiums of just over $4,000.
We ended up recommending a John Hancock Protection UL with LTC Rider. The death benefit was set at $200,000 and premiums of $2,367. The LTC rider provided LTC liquidity of $8,000 monthly if care was ever needed.
The Advisor and client were both happy with this outcome.
Call for assistance with any LTC, Annuity, DI or Life case today.