Westland Financial Services

A Case to Share August 5, 2020

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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 know we keep harping on the don’t procrastinate theme, especially when discussing protection strategies, but these cases keep coming.
 
Case 1
 
Advisor & Client (Widow, Female Age 58) wanted to reposition up to $200,000 to address LTC risk. Many options were researched for consideration and the recommendation came down to Nationwide CareMatters with 5% inflation or John Hancock Life with LTC Option. When comparing these options, CareMatters would provide a larger pool of potential benefits paid over a 6 year period in her mid 80’s and John Hancock would give her a much higher death benefit and monthly LTC benefit. In short, CareMatters would be better should she need care over an extended 5-6 year period and John Hancock would be much better for a shorter expensive need or if no care was needed.
When presented, the Client did not want to commit. The agreed to discuss again at a future meeting.
We let the advisor know that the likelihood of things getting less expensive is almost nil.  Products like this are priced based on nearest age, current rates and current health. You can lock these in now.
 
Sometimes it may be a good process to suggest…
 
First, let your client know that you fully understand them and respect their wishes to wait. However, let them know that it is your job to make recommendations in their best interest. Suggest… How about this? Let’s go ahead and see if you can qualify as expected. The underwriting process may take 4-6 weeks or longer and then we still don’t have to commit funds for an additional 30-60 days. You are in control to move forward or not. If you wait 60-90 days to start the process, then the insurance company remains in control or your health and pricing could change.
Just a thought.
 
Case 2
 
Advisor and Client have been discussing LTC protection options for a couple of years and other priorities got in the way of making this happen. Now at age 76, it’s a priority again and we got the call to see what was available. Client is a Female age 76 with a few health issues. Because of Covid-19, most of our go to carriers were out, primarily because of age, though the health issues would have made any offers rated or a decline. The good news is we still had an alternative through StateLife/One America with AnnuityCare. Client could commit $125,000 as deposit into AnnuityCare. The deposit is made into an annuity that grows over time with a 36 month LTC benefit. In this case the initial monthly benefit was $3,290 monthly. This client was also eligible for a 36 month Continuation of Benefit (COB) Rider. The COB could be purchase in a single payment of $11,498 or annually at a cost of $1,130.
 
Case 3
 
Client at age 55 got laid off and was very ill. He was beginning the process of applying for Social Security Disability Benefits. However, the eligibility criteria for these benefits are somewhat tough to overcome. In the meantime, client needed to supplement income from his savings and 401(k). Advisor requested assistance to roll over 401(k) of $325,000 into a solid fixed indexed annuity with the priority being potential accumulation. In addition, we wanted to offer a carrier and product that would allow for 72(t) distributions if needed since the client was younger than age 59 1/2.
We settled on the Athene Performance Plus annuity that offers several quality uncapped index options. This annuity has two sets of indexes, those with fees and those with no fees. We shared these two flyers that will help determine the mix of indexes selected.
 
Call for assistance with a case today.
Sean Sahin
(800)238-8144 x120
Tim Morton
(800)238-8144 x127

A Case to Share July 13, 2020

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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.
 
Case 1
 
Don’t procrastinate discussions about protection strategies
We had a few cases this last week where clients finally decided to move forward with their LTC or Life proposals from late last year. Oops! Most carriers base pricing on nearest age, have had some price adjustments and/or have added additional underwriting restrictions form Covid-19.
Outcomes will either cost your clients more or result in no viable protection options available. Don’t get caught. We have been saying for many years that these protections never seem to get less expensive or result in a better outcome by waiting.
 
Case 2
 
Advisor had a client age 58 that had some health issues and went with a reputable carrier who offered the least expensive rate. However, the result was a rated offer that wasn’t acceptable. When the health issues are vetted in the front end, we can likely go with a carrier that is more likely to make a better offer.
In this case, that is exactly what happened when we started over. Case went from a table 6 offer to a table 2 and saved about $5,000 per year.
Strong pre-sales capability can sure save a good deal of time and frustration.
Call me for assistance with a case today
Tim Morton
(800)238-8144 x127

A case to Share July 10, 2020

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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.
 
Case 1
 
A successful 76 year old retired doctor wanted to move $1,000,000 into a safer account since he had most of his $5,000,000 portfolio exposed to the market. The agent was not securities licensed and called to ask what we could find. Note: There are several products not available to our non-B/D agents. We looked for best pure Accumulation potential and settled on the Athene Performance 10. Hypothetical values were very strong using uncapped strategies. Some strategies have associated fees and others do not. In index down periods fee strategies will show a little erosion of account value (just the fee). However, still full protection of any downside risk. A negative index period still has a floor of zero percent.
 
Hypothetically we could show an account value doubling in 10 years or less using uncapped options. However, we always point out that those types of returns may not be practical to expect. Best results come from a diverse mix of strategies. Check this out:
 

A Case to Share June 15, 2020

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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.
Great way to position and speak about Long Term Care.  Tell this story…
 
Recently a couple was contemplating long term care and they were about settled on the thought that they didn’t need it because they had the where-with-all to self-insure.  
 
The smart and confident advisor said… let’s imagine we were staring at your family home that was burning to the ground with no insurance.  You turn to you wife and say “No worry, we have the funds to rebuild”.  Would it be better to say, “No worry, we have good insurance and we’ll be okay”?
 
The wife turned to husband and said, we’re getting this.
Case 1 
 
A very successful financial advisor providing guidance to his 46 year old successful daughter wanted to assist her with establishing life insurance protection for her family (his grandchildren) and provide her an account that she could tap into for tax free funds for any use in the future.
 
We looked at several IUL options, however we settled on the Variable Life Option with a guaranteed death benefit.  She was able to fund with about $100,000 up front and pay $25,000 annual to age 60.   She would have a guaranteed $2,000,000 death benefit and much more potentially if she lives into her mid 80’s or beyond.  Along the way, she had a nice growing cash value account that she could tap into – estimated to be over $1,000,000 at her age 70.
 
Case 2
 
An advisor had a wealthy female client age 78 that hadn’t really done much in planning and wanted to guarantee a legacy and offset some Estate Tax exposure.  At first glance, you might think not much could be accomplished or leveraged with Life Insurance for a 78 year old.  However you would be surprised that with a $500,000 10 year pay plan she could get a $9,000,000 death benefit at preferred rates.  Through her ILIT, there was also the opportunity to finance the premium. 
 
Case 3
 
CA couple was looking for LTC protection and liked the idea of a Hybrid Life with LTC option.
 
Female age 65 Life with LTC needed.  $500,000 death benefit – John Hancock Recommended.
4% LTC Rider ($20,000 per month for LTC)
Preferred Rate : $11,019    IRR at age 85 7.29%
Standard Rate: $14,412     IRR at age 85 4.99%
Male age 65 Life with LTC protection. $500,000 death benefit – John Hancock Recommended
4% LTC Rider ($20,000 per month for LTC)
Preferred Rate: $11,683    IRR at age 85 6.79%
Standard Rate: $16,682    IRR at age 85 3.71%
————
 
When you speak with clients and calm their fears in this volatile market, why not introduce the life insurance discussion as well.  
 
Ask, what if the worst happened to you?  Would your Family have to make significant lifestyle changes because of the lost income? What would have to happen for your business to continue?
 
Would you like me to look at some life insurance protection for you?
 
Simple questions to help start a discussion, begin helping clients in additional ways and boost the value of your practice.
 
Let’s work together to identify a couple of potential cases and get moving.
Tim Morton, CEO
E-Mail: Tim Morton
(800)238-8144 x127

A Case to Share May 13, 2020

By

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.
 
Case 1 
 
Guaranteed Life Insurance: We have had several cases these last 2 weeks for Guaranteed Universal Life (GUL) and a couple of cases that opted for Variable Life with Guarantees.  Both options will provide guaranteed death benefits through ages 105-126 at more affordable pricing than you might think.  Take a look at the IRR page(s) of an illustration.  Most show a 5.0% – 7.0% IRR through age 90.  
 
In one case, client age 50 Male wanted $1,000,000 Guaranteed and only had a budget of $8,000.  We couldn’t get him the $1,000,000 guaranteed since that cost was over $9,200 annual.  We opted for $700,000 Guaranteed at $6,600 annual and an additional $600,000 of 25 year term at an annual cost of $1,500.  $100 over budget annually, however his family and goals were better protected through age 75. He was happy that his family could continue their lifestyle should his unexpected premature death happen sooner than later. His remaining earning years were better protected and lost social security for his spouse at his death would be protected for life and very likely he would leave a nice legacy should he live a long life. 
 
————
 
Would love your input if you have never done business with Westland – click here  
 
When you speak with clients and calm their fears in this volatile market, why not introduce the life insurance discussion as well.  
 
Ask, what if the worst happened to you?  Would your Family have to make significant lifestyle changes because of the lost income? What would have to happen for your business to continue?
 
Would you like me to look at some life insurance protection for you?
 
Simple questions to help start a discussion, begin helping clients in additional ways and boost the value of your practice.
 
Let’s work together to identify a couple of potential cases and get moving.
Tim Morton, CEO
E-Mail: Tim Morton
(800)238-8144 x127

A Case to Share April 29, 2020

By

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.
 
Case 1 
 
Pension Max: Client was retiring early with a nice pension. However, the joint life amount was almost $3,000 less per month ($36,000 per year) than his single life pension.  We took $20,000 and applied for a Standard Health guaranteed permanent policy with Lincoln and had a guaranteed Death Benefit of about $950,000.  The client will enjoy an additional $16,000 annual in retirement income and protect his surviving spouse with a nice tax-free death benefit should he pass pre-maturely (his single life pension will cease).  Note: We’re hoping he can qualify for preferred health, then the death benefit will be nearly $1,200,000 guaranteed to age 126 (Lincoln VULOne).
Case 2
 
LTC Protection –  Clients ages 55 and 57 (Male/Female) need LTC protection as they prepared for retirement.  After looking at many options including traditional LTCi, State Life AssetCare and other products, we recommended MoneyGuard policies.  These were quoted with a 10 pay option.  Roughly $4,700 annual for him and $5,700 for her.  In their mid 80’s when an LTC event is likely, they will each have nearly $400,000 for care.   
 
Case 3
 
Supplemental Retirement Income:  Client age 31 deposits $3,291 Annually until age 65 to create a potential supplemental tax free retirement income of $28,000 annually at age 66 for 15 years.  This also supports death benefit that should be $470,000 prior to starting the income and still be about $225,000 at age 90.  Win Win
 
_________
 
When you speak with clients and calm their fears in this volatile market, why not introduce a life insurance and/or a LTC discussion as well.  
 
Ask, what if the worst happened to you?  Would your Family have to make significant lifestyle changes because of the lost income (earned, pension or social security)?
What would happen if you needed to spend an extra $5,000 – $8,000 per month for care expenses?
 
What would need to happen for your business to continue?
 
Would you like me to look at some protection options for you?
 
Simple questions to help start a discussion, begin helping clients in additional ways and boost the value of your practice.
 
Let’s work together to identify a couple of potential cases and get moving.
Tim Morton, CEO
E-Mail: Tim Morton
(800)238-8144 x127

A Case to Share April 23, 2020

By

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.
 
Case 1 
 
Simple Idea: Client applied for Term Insurance at a Preferred Rate and got approved for a Preferred Plus Rate.  Instead of taking the lower rate (and lower commission amount) we suggested that the advisor increase the death benefit for the same premium the client was willing to pay. Win Win.
 
Case 2
 
Legacy –  Wealth Transfer: Clients aged 72 wanted to enhance their Legacy.  Simple Survivorship (Second-to-Die) Strategy allowed them to deposit $20,000 for 20 years and create a tax-free death benefit for heirs of $1,100,000.  
 
Case 3
 
Supplemental Retirement Income:  Client age 32 deposits $1,000 monthly until age 50 to create a potential supplemental tax free retirement income of $101,000 annually at age 60 for 30 years.  The client will also have a significant death benefit to help fund goals for his family should he pass away prematurely.  Win Win
 
When you speak with clients and calm their fears in this volatile market, why not introduce the life insurance discussion as well.  
 
Ask, what if the worst happened to you?  Would your Family have to make significant lifestyle changes because of the lost income? What would have to happen for your business to continue?
 
Would you like me to look at some life insurance protection for you?
 
Simple questions to help start a discussion, begin helping clients in additional ways and boost the value of your practice.
 
Let’s work together to identify a couple of potential cases and get moving.
Tim Morton, CEO
E-Mail: Tim Morton
(800)238-8144 x127

A Case to Share April 14, 2020

By

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? 
Westland is here to help you protect your clients, their, families, their businesses and their portfolio.
 
Case 1 
 
Family Planning!  Younger client has a good job with some discretionary income and concern for her parents.  The plan was to share the cost of a Life with LTC protection strategy with her parents and guarantee herself a nice legacy as part of her retirement planning.  
 
$500,000 death benefit with 2% LTC for both mom and dad age 65.
 
Combined cost was roughly $2,000 per month for 20 years.  Parents and daughter split the cost with her parents at $1,000 each. Daughter was primary beneficiary on both policies.
 
No matter what happens in the future, $1,000,000 in benefits will be realized.  Tax-Free death benefit or some or all used for any long-term-care needs of mom and dad – protecting depletion of other assets and home equity.
 
Daughter is leveraging her free income and will spend (invest) about $240,000 over 20 years.
 
The 2% LTC option was chosen to better protect the daughter’s interest.
 
When you speak with clients and calm their fears in this volatile market, why not introduce the life insurance discussion as well.  
 
Ask, what if the worst happened to you? 
 
Would you like me to look at some life insurance protection for you?
 
Also a nice way to boost revenue for your practice while helping clients.  Let’s work together to identify a couple of potential cases and get moving.
Tim Morton, CEO
E-Mail: Tim Morton
(800)238-8144 x127

A Case to Share April 7, 2020

By

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? 
Westland is here to help you protect your clients, their, families, their businesses and their portfolio.
 
Case 1 
 
We completed a life insurance analysis for a couple – Dale age 61 and Mary age 66.  Dale had a $200,000 policy and Mary had no life insurance.  With a pre-mature death of Dale the projections showed that Mary’s plan would carry her through age 100, however, with the pre-mature death of Mary, Dale’s plan showed he would run out of funds at around age 91.
 
We ran the same type of analysis for a hypothetical long-term-care event.  With no protection strategy in place for either of them, we found the same outcome.  A typical 3 year LTC event involving Dale at age 83 and then passing, shows that Mary would still be fine through her age 100.  However, a LTC event involving Mary and then passing at her age 85, showed that Dale would be out of funds at age 91.
 
After careful analysis of many options, we recommended the purchase of a John Hancock Protection IUL with LTC rider for Mary and for Dale to keep his current insurance program in force.  The plan called for a death benefit of $250,000 with 100% available for LTC expenses if and when needed at up to $10,000 monthly.
 
Results: 
 
With the cost of the insurance ($5,633 annual) the change in net worth at Dale’s age 100 was a hypothetical change of only about $130,000 less.  Now with insurance, If Mary passed pre-maturely or had a LTC event, then Dale was much better protected and likely carry his plan to age 100.  
 
Note: The life insurance death benefit amount of $250,000 is fully available to help offset LTC costs for Mary if ever needed.  Any amount of her death benefit not used for LTC expenses will be a tax-free death benefit for Dale or other beneficiaries.
 
When you speak with clients and calm their fears in this volatile market, why not introduce the life insurance discussion as well.  
 
Ask, what if the worst happened to you? 
 
Would you like me to look at some life insurance protection for you?
 
Also a nice way to boost revenue for your practice while helping clients.  Let’s work together to identify a couple of potential cases and get moving.
Tim Morton, CEO
E-Mail: Tim Morton
(800)238-8144 x127

A Case to Share April 2, 2020 Life Insurance in a Pandemic

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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? 
Be rest assured that there will be no drop in service and capability for you and your clients over the coming weeks and months.   Be well and continue to reach out to Westland to help protect your clients, their, families, their businesses and their portfolio.
 
Case 1 
 
Warning! Many of your older clients, their parents or grandparents are receiving care in their homes.  We had a case recently, where a client had an unfortunate turn of events.  First a kitchen fire caused him to have to move out of his home.  He and his live-in caregiver moved into a hotel suite for a couple of weeks until a more appropriate venue was located.  Then the family had no choice but to move him into an assisted living venue and the caregiver was let go.  Immediately, the family was hit with a claim for unemployment coverage.  Within a few weeks, unfortunately, the client passed and a few weeks later the family was hit with a lawsuit claiming overtime pay and other damages.
 
In the midst of their grief, they have to hire legal representation and try to protect as much as they can.  This will be very costly for them as this individual was receiving in-home care for a fairly long time and still had some significant assets.  Tough lesson to learn.
 
Please review this guide and make sure your clients who receive care in their home abide by their state rules and regulations.
 
 
Call us today.  (800)238-8144
 
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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