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 Income
A Client received some guidance from a respected source to them – a Knights of Columbus Insurance Agent. He had been their insurance agent for years. These clients were doing fine financially at ages 61 (him) and 60 (her) with almost $2,500,000 in net worth, $1,100,000 liquid and $1,400,000 in real estate equity. He was still working part time and their shortfall monthly was only about $1,500. Their financial planner was concerned because they seemed to be drawing much more than the $1,500 monthly from their Schwab account. Extra cash needed for home repairs, gifts, college tuition, etc. There just wasn’t any discipline and their plan was not showing success to age 100. They mentioned to their insurance agent friend their concern and a plan was proposed to add an annuity to guarantee income that would make up for the shortfall. They liked the new plan and then the rest of their portfolio could grow and be used for these extra unplanned activities that supported their lifestyle.

Down the road, if they needed additional funds they would tap into their rental property equity that was now standing at over $900,000. This was also their fall back position for a LTC event for one or both of them. He was uninsurable and very likely not reach age 100.

The Advisor didn’t like the plan at all and said some things that were very concerning. Stating annuities had high fees, expenses and commissions. And that he could better manage the portfolio to give them the systematic income desired and still achieve some growth, better than the annuity could.

Not all annuities have high expenses and I hope he is right about assuming the risks of the market, longevity risk and sequence of returns risk with his portfolio management abilities.

He didn’t want to take the time to do the analysis of the new plan using and indexed annuity, but only saw this as a threat to share responsibility with another outside trusted advisor. I’ll give you more details next week as we dig into the case a bit more and we’ll either support diversification to an indexed annuity or not. Stay tuned.

Case 2 – Life Replacement
Client Male age 57 had a $500,000 death benefit whole life policy that had an annual premium of $5,000. Cash Value was about $137,000. We replaced the policy with a John Hancock Protection UL including LTC and no additional premiums. The guarantee would take the client to age 90 and at current rate and costs to age 125. If needed, would provide up to $20,000 monthly for LTC costs.

Call for assistance with any LTC, Annuity, DI or Life case today.

Tim Morton
(800)238-8144 x127
Email: timm@westlandinc.com

Sean Sahin
(800)238-8144 x120
Email: seans@westlandinc.com

Westland is here to help you protect your clients, their, families, their businesses and their portfolio.

Case 1 – NEGLECTED CLIENT – DEVASTATING
A Client couldn’t get hold of their Advisor (retired) and he called the carrier after receiving a potential lapse notice. The carrier referred the case to Westland.

This client was 83 years old and had been faithfully paying on his Universal Life policy for over 30 years. He had thought he was being responsible and if he just paid his premiums on time, his insurance would be there when he passed and he would leave a nice legacy for his spouse or family.

Unfortunately this was not the case. His advisor had not served him well and he ignored or didn’t understand the information presented to him on each annual statement received.

I confirmed with the carrier information about his policy. Yes, his premium would need to increase about 6 times to just keep the insurance in force for just another year and would have to increase about 15 times annually to keep it in force to age 100. Both options totally unaffordable and did not make sense. It seemed that he would easily live 10+ years and he would have to spend more than the death benefit over that time to keep his insurance. I could hear the devastation in his voice as he came to a realization that he was not going to be able to continue the life insurance and leave a nice nest egg for his family as planned.

I consoled him with the facts that his family has been protected for many years, should the worst have happened and that he should be thankful that he has been blessed with good health that will likely carry him well into his 90’s.

Take-a-ways: This situation was so avoidable if action was taken early in in the life of the policy. Don’t neglect your responsibility to provide continued service after the sale and make sure you have explained and presented what is being offered credibly so clients know what may happen in the future.

Perform routine policy reviews for products you sold and even for those products that your clients own that you did not sell. You will find many opportunities to assist and Westland will be happy to help you help your clients. Reach out to us anytime.

Simple Policy Review Check List

Case 2 – Policy Review Done Right
I received a copy of a client statement for a John Hancock Protection UL policy with a LTC Rider to review. This was sold 5 years ago with a $100,000 single pay deposit to a Female age 65 at Standard Health. The policy provided $224,146 in death benefit being 100% liquid for any potential LTC costs at $8,966 monthly available. Still a very viable solution for many clients today.

We assisted the Advisor with this review and recommendation.

5 years ago your original hypothetical illustration used during the application process reflected a 5.05% rate. At that time, John Hancock assumed they could maintain that rate to carry your policy to age 125. However, the renewal rate history reflected in your statement over the past 5 years shows that this rate has not been maintained by John Hancock. The current rate is at 4.55%.

As stated in your John Hancock correspondence, if you do nothing and the rate remains at 4.55% and they don’t change the cost of insurance, your policy will still carry to your age 100.

To provide a little more cushion, you could pay an additional $352 annually to carry your policy to age 105. Again, this is assuming today’s rate of 4.55% remains constant along with the current cost of insurance. Please note that if rates improve over time, your statement will reflect a higher age that your policy will carry to at current costs.

We are happy to provide other options for consideration and we can discuss these during our follow up call next week.

You should always review your annual policy statement and understand what it is telling you. You don’t want to get caught down the road and see that your policy may be in danger of lapsing without a high amount of additional premium.

Call for assistance with any LTC, Annuity, DI or Life case today.

Westland is here to help you protect your clients, their, families, their businesses and their portfolio.

Case 1
Client had $700,000 in cash and just wanted a safe place for a portion with a higher earnings potential vs. bank savings and money market rates. She wanted to keep funds liquid. Age 53 Female (Widow) Table 2 Rated Health.

We placed $400,000 into the North American (A+) Smart Builder Indexed Life Insurance product with the “Waiver of Surrender” option to keep the cash value liquid. Her worst case over the first year is still positive, but she should expect 3%-4% yield with average S&P 500 index performance.

Sample Smart Builder Illustration F Age 53 Table 2 $400k

Case 2
Pacific Life PremierCare cases. Get contracted now even if you have current production or have done business with Pacific Life in the past. An new appointment through Westland will not change anything with your existing appointment.

Case 3
LPL Advisors – Great News! I can walk you through ClientWorks as needed to get your OBA processed and approved for doing business with Westland. Reach out to me anytime.

Lock in their insurability and create a Roth like account that can be used for any purpose – Tax Free funds. This illustration shows how $100 per month might perform for a one year old you love.

We ran this one showing supplemental retirement income. Give your children, grandchildren, nieces or nephews a personal pension and/or a death benefit for their family should the unexpected happen.

Sample one year old illustration

A gift that will last a lifetime – you will always be lovingly remembered. Ask for an illustration now. We can show college education funding, first home purchase assistance or supplemental retirement income. One strategy or any combination of these.

Westland is here to help you protect your clients, their, families, their businesses and their portfolio.

Case 1
$1,000,000 30 Term Case for a 38 year old was requested. Once we discussed the case and the need we presented two alternative solutions. Cost $95 monthly for 30 year term.

First alternative – split up the case, $400,000 20 year term and $600,000 30 year term. This will save a few bucks since this was primarily for income protection and at age 60, after the 20 year term expires, there is less need until retirement age. Cost $87 monthly – save $100 year.

Second alternative – split up the case, $300,000 permanent with LTC of $12,000 monthly and $700,000 20 year term. Cost $182 for 20 years and then $140 for life. More cost, but will receive a benefit – either for LTC expenses or death benefit.

Case 2
Client age 57 (Widow) was beneficiary on 4 different annuities (2 IRA and 2 TSA). As the surviving spouse, she may continue these or move to her own IRA. We requested current statements for each account and called the carrier for each annuity to make certain we had all the information available prior to just jumping into providing an illustration.

We took the time to make sure the solution presented would be suitable and in the client’s best interest. Will your IMO/BGA do the same?

In this case, three of the four annuities were absolutely in the client’s best interest to move into her own IRA. They either didn’t have an income rider, the income rider wasn’t great and not needed, or there was an enhanced death benefit option. All waived surrender charges and/or MVA at death for the beneficiary. This client also wanted and liked the protection of what an Indexed Annuity Offered, so we went in search of a solid short term Accumulation product with an uncapped upside index? Some products are only offered to registered representatives and this was the case in this situation. We settled on a 5 year duration product for $250,000 and she still had over $500,000 in liquid cash assets to manage.

Call Sean Sahin at (800)238-8144 x120 to discuss any potential annuity cases. You will be clad you did. Sean can also be reached at seans@westlandinc.com.

Call for assistance with any LTC, Annuity, DI or Life case today.

Tim Morton
(800)238-8144 x127
Email: timm@westlandinc.com

Sean Sahin
(800)238-8144 x120
Email: seans@westlandinc.com

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
Female Client age 60 has two adult children and she wanted to help them out by starting a life insurance program for each of them. The plan was to lock in their future preferred insurability and provide a bucket of tax free cash to help them out when needed or to supplement their retirements.

Mom is funding at $2,000 annually for a $250,000 Indexed Life Product for each.

Daughter: Age 28 (super preferred) At age 60, her cash value is expected to be about $160,000 and her death benefit about $400,000. At age 65, she could draw supplemental tax free annual income of about $22,000.

Son: Age 24 (preferred) At age 60, his cash value is expected to be about $250,000 and his death benefit about $500,000. At age 65, he could draw supplemental tax free annual income of about $42,000.

Super nice legacy gift from mom. You can also see that starting at a younger age has a better expected outcome – the power of compounding. If you have clients with children or grandchildren, these programs make great sense – starting for as little as $100 monthly.

Case 2
Clients owned a large dental practice and unfortunately were divorcing. She runs the business and nearly 20 staff and he is the rainmaker professional dentist. 50/50 ownership. Attorney is drafting the separation agreement and a buy/sell agreement. Both will continue working together in the practice, just not as husband and wife. Her concern, is that she wants the business to continue should something happen to her ex-spouse. This protects her salary and the value of the practice. They had the life insurance covered, but not disability. He had personal DI, but nothing protecting the business. We suggested both a business overhead expense policy and a Disability Buy Out Policy. The overhead expense policy, will allow her to continue the business with up to $50,000 monthly. With scaled back operations and temporary dentist help, she could now continue until a new dentist partner can be found or the practice sold or merged. Win Win!

This case happened because of the divorce situation, but any professional practice and many businesses might be a prospect and should consider this type of protection. Next time you go to your dentist, chiropractor, doctor or visit a business, ask the owner “what would happen if you didn’t come in tomorrow and might not return”. Asking the question, could set in motion a fantastic relationship.

Case 3
Mass Mutual case: Whole life review. Advisor was an agent of record on an existing policy that was originally purchased by a firm as key man protection. Since then, the company was sold and the Sales Manager, who was the key man, personally continued the policy at his separation from employment. We ran several in-force illustrations and walked the advisor through each so that he could present the options and have a quality discussion of the pros and cons of each. We offered to be available during the meeting or to even host the call or zoom meeting as the insurance expert working alongside the advisor.

Call for assistance with a case today.
Sean Sahin
(800)238-8144 x120
Email: seans@westlandinc.com

Tim Morton
(800)238-8144 x127
Email: timm@westlandinc.com