- Nursing Facility
- Residential Care Facilities
- Adult Day Care
- Home Health Care Services
- (includes Hospice Services, Respite Care and Homemaker Services)
A Case to Share March 17, 2022
CASE 1
Clients are age 51 and 52 in great health. They have a net worth of nearly $8 million but are still very concerned about being a burden to their children having gone through a long care event with a parent. Amazingly, they had no life insurance or long-term-care protection yet. Luckily they have done well financially with a few real estate investments and hadn’t seen the risks they have until their new advisor made these discussions a high priority in the services he offers. They also have some concern with estate taxes as they continue to earn good income, make solid investments and expect a small future inheritance. Their advisor pointed out the possibility of the sunset on inheritance tax exemption limits and the potential growth they might enjoy over the next 30-45 years.
After discussions on hybrid and asset based LTC strategies, they have decided on $500,000 John Hancock Protection UL with a 4% LTC rider. This will give each of them a solid $500,000 pool for potential LTC expenses at up to $20,000 monthly. Cost for her policy was only $5,051 Annually and his was $5,541. LTC protection if they need it and a death benefit if they don’t.
Again, we looked at single pay and shorter pay options, but this couple would rather deploy their extra cash in funding other goals and investments.
Call me about a case today.
Tim Morton, CEO
(800)238-8144 x127
If you are not discussing these types of cases with your clients, then who will?
Westland is here to help you protect your clients, their families, their businesses and their portfolio.
Call for assistance with any LTC, Annuity, DI or Life case today.
A Case to Share March 7, 2022
During the last week we have worked on dozens of life, long term care, disability and annuity cases working alongside our Advisers.
CASE 1
2 individuals (business partners) wanted to purchase a home together at 50/50 ownership and pay cash to be able to compete in today’s rising real estate market. One will live in the home and improve the property being responsible for taxes, insurance and improvement costs since he will have no rent. Their exit arrangement is that, in no longer than 5 years, the one living in the property will agree to sell and split the proceeds or refinance and return to his financing partner 50% of the home value at time of refinance or sale. The parties agreed to buy 10 year term insurance on each other to have cash available to buy out their partners 50% and not be forced to sell the property or be in business with the deceased estate (family). Once the exit happens, the term insurance will be cancelled.
This strategy can be applied in many business situations.
CASE 2
Client wanted to research options for building a tax free legacy using life insurance and reached out to their financial advisor for guidance.
NOTE: Do 100% of your clients know that you handle life, long term care and disability insurance?
This client was age 59 and in good health today but did not have longevity in his family.
$100,000 death benefit illustrated the concept: We solved for an increasing death benefit over 20 years of payments, then level death benefit. The premium was $6,912 annually ($138,240 over 20 years). This was guaranteed universal life insurance to age 120. Worst case would be $157,072 death benefit for life. At a conservative 3.75% estimated rate of return, the client would have a tax free death benefit of over $250,000 at age 80. The expected Guaranteed IRR at death for various ages are:
Age 70 17.29%
Age 75 11.25%
Age 80 7.05%
Age 85 5.14%
Age 90 4.03%
The numbers would work the same for larger cases. Give your clients a guaranteed legacy and they might not worry as much about living the life they want on the assets you manage.
Contact me about a case today.
Email: Tim Morton, CEO
(800)238-8144 x127
If you are not discussing these types of cases with your clients, then who will?
Westland is here to help you protect your clients, their families, their businesses and their portfolio.
Call for assistance with any LTC, Annuity, DI or Life case today.
A Case to Share January 14, 2022
Case 1
An Advisor called in to describe a case for one of his top clients who was a young business owner and doing well. We are looking into buy/sell, key man and other options, but personally he was also short on insurance protection and wanted to improve his retirement income prospects. Male age 39 and in good health.
Funding $3,000 monthly into a Indexed Universal Life program to age 50 and then solve for supplemental retirement income for ages 65-80. The initial death benefit was about $750,000 and growing to nearly $2,000,000 at retirement age. The hypothetical shows contributions of $396,000 and tax free income distributions of over $200,000 annual for 15 years or about $3,000,000. Policy might still have well over $1,000,000 tax free death benefit at life expectancy. If god forbid, he passed away at anytime, there would be a significant tax free death benefit available to his family to fund goals and/or to replace lost income.
Case 2
Advisor had clients wishing to do something for their grandchildren. Case for a 5 year old with deposits of $300 monthly for 20 years (total $72,000). We looked at several options and settled on a variable life option with the Equitable. Cash value after year 20 years is projected to be about $145,000 with a death benefit of over $360,000. This gives their grandson a nice pool of funds that would be available tax free for any need and guarantee their insurability.
If they don’t touch it, at age 65 the projections show cash value of over $3,500,000 and a death benefit of over $4,000,000. At age 85 the projections show cash value of over $16,000,000 and a death benefit over $17,000,000. This could be generational wealth and a wonderful legacy. It’s amazing how time and compound interest works its magic.
If you are not discussing these types of cases with your clients, then who will?
Westland is here to help you protect your clients, their families, their businesses and their portfolio.
A Case to share May 28, 2021
Are You Really Using Your Life Insurance License?
Case Study Below
How one Advisor added $75,000 of revenue by asking a simple question.
We are seeing more and more Advisors put added focus on helping clients put in place protection strategies. Using your life insurance license will give you added significance in the lives of your clients, can generate significant revenue for your practice and insurance protections done properly, will never lead to complaints, broker/dealer compliance issues or regulatory inquiry. Finally, life Insurance may be the last and best tax planning and wealth transfer strategy remaining when all the dust settles around new tax regulations.
Almost everyone is aware of the importance of life insurance. That being the case, why are you avoiding this discussion in your client meetings?
Recently, an advisor simply asked one of his good clients if he could review his life insurance program. This client was a super bright retired engineer and was a “do-it-yourself” type and luckily agreed to the review. Together we reviewed 5 life insurance policies and we quickly discovered some problems that needed immediate attention!
Client was age 65, male in excellent health, but a little stocky at 6’1 265 lbs. He had two policies (out of 5) in his Life Insurance Trust (ILIT) that were in trouble. One Universal Life with a death benefit of $1,000,000 had premiums of $5,600 annually and showed an expected lapse at age 81. The other troubled policy was also a Universal Life with a death benefit of $4,167,143 had premiums of $20,560 annually and showed an expected lapse at age 78. He had longevity in his family and created the ILIT to help maximize a wealth transfer strategy and he wanted to continue with that strategy.
We requested in-force illustrations that showed needed premiums to carry these policies to age 95 would require he spend about $3,200,000 over the next 30 years. A different way of looking at this would be looking at the net difference – Expected death benefit of the two policies was $5,167,143 less cost of $3,200,000 (over 30 years) equals Net Death Benefit of $1,967,143. Not a great IRR for a result that was still not guaranteed.
However, spending the money to keep these in force wasn’t what he was wanted to do but he was willing to do and had the where-with-all to do. Westland helped research alternatives and found solid alternate replacements that would cost less with better guarantees to significantly improve the IRR. Then we dug a little deeper and realized that the policies had solid cash values that totaled a little under $800,000 with high cost basis for an after-tax cash value of about $770,000.
This net-cash value information was critical so that we could now explore survivorship or second-to-die options more suitable in an ILIT and that are typically much more cost effective.
In the end two final scenarios were presented:
Use the $770,000 cash to buy a paid up survivorship policy. No additional out-of-pocket premiums.
Use the $770,000 cash to purchase a survivorship policy plus add $30,000 of additional premiums funded through the ILIT. A little more than what he was already contributing for premiums.
Scenario one (no further premiums) final recommendation:
Prudential Survivorship Guaranteed Variable Universal Life – Single pay $770,000 for a guaranteed death benefit of $2,019,087 to age 120. At a conservative 6.5% rate, the expected death benefit was nearly $3,500,000 if one of them reached age 95.
Scenario two (cash plus $30k annual) final recommendation:
Prudential Survivorship Guaranteed Variable Universal Life – Single pay $770,000 Plus $30,000 annually for a guaranteed death benefit of $3,266,934 to age 120. At a conservative 6.5% rate, the expected death benefit was nearly $5,239,702 if one of them reached age 95. Cost was $900,000 over 30 years.
Ultimately, scenario two was accepted and in the works. Client is content with the guaranteed death benefit for the cost and is extremely happy that he will likely realize the same death benefit for his legacy planning that he started with for much less cost.
For simply by asking a question, the compensation will be about $75,000. The process, with Westland’s assistance, was simplified and it has opened this advisor’s eyes to asking about and reviewing life and long-term-care programs for every client and prospect.
Reach out to our team today to inquire about a client situation.
Email: Timm@westlandinc.com
(800)238-8144 x127
Best Place for Cash
If you could have an account that was 100% liquid and would balloon in value should a health event happen, would that be of interest?
If you could have an account that was 100% liquid and balloon in value should you pass unexpectedly, would that be of interest?
Many planners are seeing the benefits of one or both of these options every day.
Option 1 Sample – Female Client Age 65 Deposits $100k
$100,000 Liquid Account Value
$376,000 TAX-FREE Guaranteed Account Value for Long Term Care Expenses
$585,869 TAX-FREE Guaranteed Growth Account Value for LTC by age 85
Option 2 Sample – Female Client Age 65 Deposits $200k
$200,000 Liquid Cash Value
$425,200 TAX-FREE Guaranteed Immediate Death Benefit
3%-4% Expected IRR on Cash
$540,752 Expected Death benefit Tax-Free by age 85
Order these custom illustrations for one of your clients today.
Reach out to: Tim Morton
(800)238-8144 x127
A case to Share April 15, 2021
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.
These last few weeks have provided many opportunities for quoting of term life insurance and custom price sheets are available for your clients to easily compare pricing. However, the lowest price, might not be the best option, especially if conversion to a permanent option might be considered in the future.
Also, please ask your clients in advance about their health. We have processed several Preferred applications that have come back with offers of standard or rated. Even my own brother fudged his weight to me and we got a standard offer vs. his preferred rate expected at time of application. Now we are pivoting to a carrier that is more liberal with their build and BMI requirements for Preferred rates, but still more expensive than applied for and more work to be done. Now he tells me he is dieting and plans to lose 20 lbs. Live and Learn!
Case 1 – Client Age 41 Male High Earner.
Advisor called about this case to duplicate what she did for his spouse a few years earlier when she was with Merrill Lynch before transitioning her practice to an independent RIA.
We looked at many viable options to complete our due diligence in the client best interest and settled on Lincoln MoneyGuard with a 5% compound inflation option for him as well.
The illustration for a $60,000 single deposit provide an account that was partially liquid and provided a nice death benefit and nearly $200,000 in LTC benefits on day 1. The LTC benefit would grow to about $1,700,000 in LTC benefits by age 85 (liquid at over $20,000 monthly).
Case 2 – Traditional LTCi – New option to consider
Advisor had clients ages 62 and 64 married in PA and needed a traditional LTCi solution providing $6,000 monthly with 3% compound for 3 year duration.
Of course, these clients were quoted several months ago and you guessed it, today the pricing has already changed considerably. Mutual of Omaha is the gold standard for many cases today and their cost for this couple was $9,871 Annually. Very solid.
However, National Guardian Life has a unique shared benefit option that should be considered for many traditional LTCi cases today.
To save money, this carrier provides and and option, where they each would have a 2 year duration policy and they share a third 2 year policy (pool of benefits). Meaning, if one of them went on claim, they would first use their own policy benefits and if care still needed, they could tap into the third pool of shared benefits. Anything not used of this third pool would remain for the benefit of the surviving spouse.
The cost of this approach, was $7,916 annually for an annual savings of $1,955.
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
Tyler Harris
(800)238-8144 x116
Email: tylerh@westlandinc.com
A Case to Share March 1, 2021
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.
Tim Morton
(800)238-8144 x127
Email: timm@westlandinc.com
Sean Sahin
(800)238-8144 x120
Email: seans@westlandinc.com
A Case to Share January 29, 2021
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 have been asked many times “At what age should LTC be purchased” and the short answer is, today! Today, may be the healthiest day of the rest of your life and insurance products will likely never be less expensive in the future. You definitely must buy insurance before you need it.
Case 1 – Young Couple – Supplemental Retirement
Clients, ages 39 and 41 sought to add additional life insurance to protect their family and had been introduced to a permanent concept. The primary breadwinner was underinsured using a simple needs analysis. Current coverage was $750,000 with about $80,000 in income. They had goals, to retire about age 65, fund college education for two young children and to pay off the mortgage. For about $100 per month, they could add $1,000,000 20 year term for him and $500,000 for her. Should the worst happen to one or both, the family would now be much better positioned to continue financially.
We also illustrated a permanent option for consideration so that they would have some death protection if they survived the term insurance and to supplement retirement.
For $300 per month each:
Him: Max funded IUL starting death benefit of $100,000. At age 65 the death benefit expected to be $267,000 and cash value $167,000. The hypothetical TAX-FREE income to age 95 was just over $14,000 annual. At age 85 the death benefit was $122,000. The estimated account value needed to generate $14,000 tax free was over $430,000 at his age 65.
Her: Max funded IUL starting death benefit of $125,000. At age 65 the death benefit expected to be $321,000 and cash value $198,000. The hypothetical TAX-FREE income for to age 95 was just about $17,000 annually. At age 85 the death benefit was $140,000. The estimated account value needed to generate $17,000 tax free was over $500,000 at her age 65.
Case 2 – High Blood Pressure – “White Coat” Syndrome
Agent had applied for large term life policy at a Preferred health rating and was made an offer at Standard Table 4. Findings were that, though she was a young high achiever, she had very high blood pressure. This was uncontrolled. The first explanation response was, that the high reading during the paramedical exam was related to anxiety. Sometimes referred to as “white coat” syndrome – a fear of doctors. After a more thorough review of medical records, it was determined that the issue was a bit more serious and this client should be addressing her medical condition.
We recommended that she accept the coverage at the rated table-4 rate and work on getting her blood pressure under control via diet, medication or other stress relief measures. Then we could request a reconsideration with the current carrier or seek out new coverage after one year. Even though this client would be year older, the coverage would still be much less expensive if she could qualify for Standard Health and no table rating and hopefully her health would be much improved.
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
A Case to Share December 21, 2021
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
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