Can you believe this? A 67 year old prospect was aggressively pitched moving her $500,000 IRA into a 7 pay immediate annuity. The after tax amount would be used to purchase a whole life product designed to generate $21,000 of tax free income for 15 years beginning in year 8. She didn’t NEED income and the taxable distributions from the IRA would push her into a higher overall tax bracket and she still said YES. These programs are offered by sophisticated and aggressive individuals and sales teams. There goal is to sell products and they make very little effort to understand a clients overall financial situation and goals.
Just be aware. This is the approach of many insurance sales folks and the IMO’s that support them. That is an example of why you need to make sure your clients and prospects know that you also offer full services which include life insurance and other protection strategies.
Use Westland as your partner. We would never allow such a case to move forward.
Good result – she mentioned this to her friend – ME!
My friend is a successful business owner. She obviously never truly understood what I do for a living – my bad. Again, this shows that making sure your friends, family, neighbors, prospects and clients fully understand that you also offer Life Insurance and Long term Care protection strategies.
After setting down with my friend “professionally”, we identified that her two primary goals were added legacy and long term care protection. She had a net worth of over $6 million, but only $500,000 of investable assets. Most other assets were in real estate and her business (valued at $2 million). After our discussion, we have many opportunities identified where insurance would help protect her family, her business and her portfolio.
We are now in the middle of creating a retirement income plan, getting her business valued and working on a longer term business exit plan. She has a quality stock broker, CPA and Attorney that all advise her and I’m working with all of them to coordinate all future planning. I also spoke with the agent who had pitched the whole life program and advised him to back off. To give you an idea, he was E-mailing or calling her several times per day rising to a level of harassment. He then understood that anything further he said or offered would be run by me.
First up – She wanted to take care of setting up an added insurance program to take advantage of the paramedical exam she had already completed this for the whole life mentioned above and to lock in her health and rates for her current age.
We put in place a John Hancock, Protection Universal Life policy with a LTC rider.
Death benefit $800,000
Long Term Care Benefit up to $16,000 monthly if care is ever needed
Cost: $1,500 monthly to age 90
Death Benefit IRR at age 90 is 5.62% (much more at younger ages, less as she ages)
Her son age 33 is a high earner at her business and has a new baby and had NO LIFE INSURANCE. We put in place a $1.5 million 30 year term and $250k of Indexed Life to build up cash as a “Roth Alternative”. His wife at age 31, now back to work, also needed protection. We put in place $1.0 million of 30 year term for now. All well within their budget.
Hopefully these ideas will get your juices going and thinking of clients where you can add real additional value to their family with protection and legacy strategies.
Call for your personalized case designs today. We are here at your service.