Westland Financial Services

A Case to Share January 16, 2020

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During the last few weeks 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? 
 
Case 1 
 
93 year old in good health looking at a forced annuitization and doesn’t want the income.  What to do?
 
Client has an annuity with a value of $1,800,000 and a cost basis of $1,100,000.  She believes she isn’t leaving this world any time soon and doesn’t want to be forced to start taking income.  Her two daughters will be beneficiaries and want to keep options open also.  
 
Luckily, we have an indexed annuity option that issues to age 93.  The Standard Indexed Select Annuity with an S&P 500 cap today of 4.75%. Good upside potential. However the company has a $1,000,000 limit without prior approval.  We requested an exception and received approval for $1,500,000.  Additional good news, The Standard accepts partial 1035 amounts and the releasing annuity company also honors partial 1035’s.  The balance will be placed in Legacy Care with State Life.  
 
Case 2
 
Solid Premium Finance Case. Female single age 70 with net worth of $35,000,000. Liquid assets over $3,000,000 and income of over $800,000 annual.
 
$7,000,000 current life insurance needed with rising death benefit to help offset estate tax burden. Case designed by advanced markets team…  
 
Life Premium $732,676 for 10 years – client out of pocket $325,000 for 15 years. Repay loan of just under $5,000,000 in year 16 from cash value of life insurance.  Net death benefit at life expectancy of about $13,000,000.
 
Expected IRR of over 7.0% through age 90.
 
Have a potential large case.  Call us today.  (800)238-8144
 
Call or E-mail Nancy Woo to discuss a life or LTC case today.
E-Mail: Nancy Woo
(800)238-8144 x103
 
Call or E-mail Sean Sahin to discuss an annuity or LTC case today.
E-Mail: Sean Sahin
(800)238-8144 x120
 
Tim Morton, CEO, anytime about any case or marketing program
E-Mail: Tim Morton
(800)238-8144 x127
Your Westland Team

A Case to Share December 6, 2019

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During the last few weeks 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? 
 
Case 1 
 
Single Female age 70 in good health.  Her son has a thriving business and wanted to make sure mom had a solid long term care protection strategy in place.  He wanted to commit $100,000 to take care of mom, make sure she had quality of life should a need present itself and to make sure that he and his wife remained care coordinators and not care providers.
 
We looked at several alternatives – the top 4 were.
 
1) MoneyGuard with an inflation rider (7 year benefit period)
2) MoneyGuard with a level benefit (6 year benefit period)
3) ForeCare Annuity (6 year benefit period)
4) John Hancock with the LTC Rider (25 month benefit period at max monthly available)
 
Monthly Benefits:
1) $2,478 at start rising at 3% – max LTC benefit pool $354,929 at age 85
2) $3,879 at start and level – max LTC benefit pool $279,288
3) $4,167 at start and level – max LTC benefit pool just over $300,000
4) $10,623 at start and level – max LTC benefit pool $265,585
 
In our analysis and after discussions with the client we recommended the John Hancock option.
 
If mom died in her sleep with no LTC event – $100,000 becomes $265,585
If mom has a typical LTC event at age 85 with a hypothetical cost of $8,000 per month, the John Hancock benefit would last 33 months with no other out of pocket expense.  The exposure is for a longer LTC event.
 
With the other choices, this same hypothetical LTC event at $8,000 monthly, would require about $4,000 per month out of his portfolio to supplement the LTC benefit payments.  Over the first 33 months, he would have had to spend about $132,000 additional.  This same $132,000 would extend the John Hancock benefit by another 16 months or so.
 
All in all, choices 1-3 were beneficial only when there was a longer duration event of over 4 years. A shorter duration or no LTC event and John Hancock was clearly more advantageous. 
 
Call Westland to help you research options and make a recommendation for you.  We won’t just send you illustration after illustration.
Call Westland about a case today and let us go to work for you.
Call or E-mail Nancy Woo to discuss a life or LTC case today.
E-Mail: Nancy Woo
(800)238-8144 x103
 
Call or E-mail Sean Sahin to discuss an annuity or LTC case today.
E-Mail: Sean Sahin
(800)238-8144 x120
 
Tim Morton, CEO, anytime about any case or marketing program
E-Mail: Tim Morton
(800)238-8144 x127
Your Westland Team

A Case to Share November 7, 2019

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During the last few weeks 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? 
 
Case 1 
 
Couple ages 61 and 56 doing well living in the bay area.  As part of their annual review their Advisor had an agenda item to review and present options to address LTC risk.  In the past, they had deferred the discussion to a future meeting, but the time was now.  Their Advisor was more determined to have the discussion and put a plan in place to fulfill his planning obligation to this couple who were “A” Clients.
 
We explored “asset based” options with a budget of $150,000.
 
MoneyGuard $78,000 for him and $83,000 for her created a $4,500 monthly benefit with 3% inflation growth.  The pool of benefits started out at $350,000.  By age 85 the monthly benefits would be over $10,000 monthly with a pool available over $820,000 for her – 10X leverage on her initial deposit.  Death benefit never less than $108,000 each (more than their initial deposit).
 
Asset Care $154,000 deposit for joint life protection would provide monthly benefit of $9,000.  The lifetime Continuation of Benefits (COB) rider was an additional $2,441 annual creating an unlimited pool of benefits.  Over 30 years that rider expense would be over $73,000.  Joint life Death Benefit of $300,000 if care not needed.
 
John Hancock – Life with LTC Rider.  $80,000 for him and $70,000 for her would create death benefits (DB) of $257,000 for him and $302,000 for her.  The DB is liquid for LTC at $10,000 monthly for him and $12,000 monthly for her.  All unused DB goes to heirs.
 
Traditional LTCi – For $4,879 monthly they would each have a LTC policy that would provide a $4,500 monthly benefit for 4 years growing at 3% annually.  With no rate changes, they would spend about $146,000 over 30 years.  No Death Benefit if care was not needed.
 
Tough decision since each option has its benefits and you could make a good case recommendation.  The eventual decision for this case was to go with MoneyGuard. Mainly because of reputation, guarantees, application process and individual benefits with a DB available to survivor if care not needed.
Call Westland about a case today and let us go to work for you.
Call or E-mail Nancy Woo to discuss a life case today.
E-Mail: Nancy Woo
(800)238-8144 x103
 
Call or E-mail Sean Sahin to discuss an annuity case today.
E-Mail: Sean Sahin
(800)238-8144 x120
 
Your Westland Team

A Case to Share September 13, 2019

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During the last few weeks 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? 
 
Case 1 – Another tough case placed!
We had submitted a case about 8 months ago for a female client who had a recent scare regarding a lump in her breast.  Luckily a biopsy came back as benign, but the doctor recommended a 6 month follow up.  The carrier came back with a hold on the case (not declined) until after the 6 month appointment and results known.  So we waited. The follow up appointment was held and there were no new concerns, however the doctor again had indicated that a follow up was required in 6 months.  The insurance company would not re-open the case again until the results were known of the recommended follow up appointment!  With recommended 6 month follow ups, because of a history of breast cancer, she would never get approved.  We complained!Luckily we had documentation of what the carrier had said…  If the follow up appointment still showed stability of the mass then they will reconsider the case.  After an escalation to a senior underwriter we got the case re-opened and she was approved.
Call Westland about a case today and let us go to work for you.
Call or E-mail Nancy Woo to discuss a life case today.
E-Mail: Nancy Woo
(800)238-8144 x103
 
Call or E-mail Sean Sahin to discuss an annuity case today.
E-Mail: Sean Sahin
(800)238-8144 x120
 
Your Westland Team

A Case to Share September 5, 2019

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During the last few weeks 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? 
 
Case 1 – Life Insurance Can make a World of Difference!
Advisor had a client age 62 still planning and needing to work another 8 years or so prior to retirement and had a $800,000 term policy that was at the end of its term.  What to do to protect the family (non-working spouse)?   Client had a nice home with a mortgage and good equity and a rental property also with a mortgage and good equity. He earned a good living with discretionary income available and about a $500,000 portfolio almost all in qualified funds.
After careful consideration of the mortgage balances, current good health and lifestyle we came up with two choices for consideration.  A 15 year term of $700,000 or 20 year term of $500,000. The cost of which were about the same price and was still affordable to the couple.
 
Clients were presented with both options and after a discussion about longevity in both their families, it was recommended they take the $500,000 which would be enough to pay off the rental mortgage and still have $300,000 to provide for additional supplemental income should he happen to pass anytime soon.  If he passes after retirement, Social Security, Rental income, lifetime income from an indexed annuity would all contribute to the income needs and lessen the stress of having to draw too much from the portfolio.  Luckily, this couple already had long term care insurance risk covered with a traditional LTC policy purchased several years earlier.
 
Having the LTC already in place was a key factor to minimize the risks to their retirement planning and not having to recommend immediate changes to budget (lifestyle) today or potentially for the surviving spouse.
 
Case 2 – Client was the unexpected beneficiary of a large estate from a non-spouse, some of which (over $1,000,000) were in non-qualified annuities with low cost basis.  We researched options and working with the Advisor, settled on a non-qualified stretch solution using a fixed indexed annuity.  Researching carriers that accept this business we recommended Lincoln’s Optiblend Fixed Indexed Annuity.
 
 
Call Westland about a case today and let us go to work for you.
Call or E-mail Nancy Woo to discuss a life case today.
E-Mail: Nancy Woo
(800)238-8144 x103
 
Call or E-mail Sean Sahin to discuss an annuity case today.
E-Mail: Sean Sahin
(800)238-8144 x120
 
Your Westland Team

A Case to Share August 16, 2019

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During the last few weeks 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? 
 
Case 1– Life Insurance Underwriting Improvement.  Behind the scenes knowledge is king!
We had a case for a client who had “Athlete Heart”. Fit young man, higher earner and young family at 32 years old .  Earning $1mm annually from his business and had a solid plan of investing and already owned several rental properties.  He already had a $3.5 million 30 year term policy purchase a year earlier from Banner Life.  He was rated at Table 4 and had a premium of $7,718 annually.
 

We discussed the case with our Underwriter and immediately found out that Protective or Lincoln may have offered a better outcome if he had gone in that direction.  We then asked for and received a copy of his medical records in hopes that we could shop his case and get a better offer.

After review of medical records, Lincoln made a tentative offer of Preferred Non-Smoker and we are in the application process now.  New premium is expected to be $2,943.  A Savings of $4,775 annually.
 

Call Westland about rated cases and let us go to work for you.  Maybe there is a chance of a better outcome with the right carrier and the right behind the scenes discussions between our underwriter and that of the carrier.

Call or E-mail Nancy Woo to discuss a life case today.
 
E-Mail: Nancy Woo
(800)238-8144 x103
 
Your Westland Team

A Case to Share July 18, 2019

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During the last few weeks 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? 
 
Case 1– Long term Care Review:  Advisor had a couple ages 66 and 62 who purchased traditional long term care protection on their own a couple of years earlier from LifeSecure in CA.  LifeSecure is no longer accepting new customers in CA.  This wasn’t bad protection, but the clients didn’t even ask their financial planner about this because they didn’t think he did life and long term care.
 

These are great clients of his with a liquid net worth of over $2.5 million he was managing.  He was just too focused on managing assets and wasn’t holistically focused enough and decided to use Westland as his LTC and Life Insurance Expert Partner.  Now he can better serve clients adding this expertise to his arsenal.

We discussed the case and reviewed the current protection and looked for alternatives that may better serve these clients. After careful analysis we recommended a linked-benefit strategy through State Life – One America (Asset Care III).  We re-positioned $200,000 of IRA funds and gave them each lifetime long term care protection.  They are currently dealing with a close family member with Alzheimer’s.
There is a guaranteed joint life death benefit of $358,261 should care never be needed and the lifetime monthly level benefit was nearly 3 times the previous coverage out of the gate. This monthly benefit continued to be more than the traditional benefit through ages 98 and 93 since the traditional product had a 3% inflation rider. Westland produced a LTC Needs report and side by side analysis for client review.
Westland then assisted and hosted a client conference call to go through the recommendation with the client and both client and Advisor were thrilled.  Westland took the application and completed everything required to put this coverage In Force. The Advisor received 70% of the compensation – over $9,000 for business that would never have happened without his partnership with Westland.
Call Westland today about our Trusted Partner Program. Westland Trusted Partnership
 
Case 2 – Advisor had a client with a net worth of over $10 million who wanted to protect some of the gains from his investment portfolio. He was looking for a highly liquid short term indexedannuity. After doing our diligent research we recommended the Athene Protector 5.  A 5 year indexed annuity with solid rates and a Return of Premium (ROP) rider (cost 40 basis points).  The ROP allowed for full return of deposit anytime or cash surrender value, whichever was higher.  In addition, if the annuity was held through year 5, there was a 10% guarantee as a minimum return.  In short, the case was for $500,000 and after our presentation, the client decided to put in $1,000,000.  After 5 years, worst case was to walk away with $1,100,000 or account value whichever was higher.
 
Call or E-mail Sean Sahin to discuss a case today.
 
E-Mail: Sean Sahin
(800)238-8144 x120
 
Your Westland Team

A Case to Share April 29, 2019

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During the last few weeks 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? 
 
Case 1 – Rising Income Options: If you have clients that need or will need supplemental income from their portfolio and not looking at an annuity with a rising income option, then you may be doing your clients a big disservice. 
 
Please allow Westland to assist with designing and incorporating a rising income option to achieve significant improvements with generating much higher accumulated incomes during retirement.  Our analysis routinely shows potentially 25% – 100% more income over a 20-30 year retirement.  
 
Case in point:  Client was age 70 and had a John Hancock (JH) Variable Annuity with an income rider.  The account value was about $153,000 and income from JH was guaranteed at $9,375 annual.  At age 90 her accumulated income distributions would be $196,875.
 
The rising income option showed a starting income of $8,577 annually. At a conservative 3.5% growth estimate, that income would be $16,489 by age 90 and accumulated income of $242,555.  This is a 29% increase in income.  Granted this is hypothetical vs. guaranteed, but most clients will jump at the opportunity for the increased option.  It could be much higher or a little lower, but in almost all planning simulations, it is better.
 
At age 95, the difference is 43% better.  
 
Her E-Money simulation showed a tight plan with a net worth at age 100 of only $22,000 with JH and an improved hypothetical net worth of over $286,000 with the 1035 change.  Compliance approved the transaction.
 
Call or E-mail Sean Sahin to discuss a case today.
 
E-Mail: Sean Sahin
(800)238-8144 x120

A Case to Share April 10, 2019

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During the last few weeks 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? 
 
Case 1 – Premium Finance – No Collateral: A top financial adviser called to discuss a case for a high wage earner that needed life insurance protection now and wanted to add a significant supplemental tax-free income to his retirement plan.   Doctor Age 56.
 
A max funded Indexed Life Program was designed with a premium finance option to keep out of pocket amounts at a minimum.
 
Out of Pocket from Client $104,000 for 5 years
Premiums for life policy: $207,899 for 10 years (paid by financing company)
Initial Net Death Benefit: $2,922,000
Projected Tax Free Income at age 69: $82,000 Annual for life.
 
Expected death benefit at life expectancy (late 80’s): $1,000,000
 
You can do this!  One case a year could really boost your practice and help a client.
Compensation to Adviser: over $70,000
 
Call or E-mail Nancy Woo, Director of Life Marketing, to help you design a case today.
 
E-Mail: Nancy Woo
(800)238-8144 x103

A Case to Share March 7, 2019

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Case 1 – Premium Finance Case – this option can fit many client scenarios: A top financial adviser called to discuss a case for a high wage earner that needed life insurance protection and add a significant supplemental tax-free income to his retirement plan.  Doctor Age 51.
 
A max funded Indexed Life Program was designed with a premium finance option to keep out of pocket amounts at a minimum.
 
Out of Pocket from Client $100,000 for 5 years
Premiums for life policy: $198,589 for 10 years
Initial Net Death Benefit: $3,423,000
Projected Tax Free Income at age 65: $95,000 Annual for life.
 
Expected death benefit at life expectancy (late 80’s): $2,000,000
 
You can do this!  One case a year could really boost your practice and help a client.
Compensation to Adviser: over $65,000
 
Call or E-mail Nancy Woo, Director of Life Marketing, to help you design a case today.
 
E-Mail: Nancy Woo
 
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For Professional Use Only-Securities offered through Lucia Securities, LLC,. Member FINRA/SIPC13520 Evening Creek Dr. N., Suite 300, San Diego, CA 92128.
Westland Financial Services, Inc. is not affiliated with Lucia Securities, LLC,. Westland CA Insurance Lic #: 0785972