LeeGT Insurance

Life Insurance is a Women’s Issue
There is a looming crisis for Baby Boomer women. The facts are clear: 7 out of 10 Baby Boomer women will become wid­ows.1 And, because Boomer women tend to marry men older than themselves, and live longer than men, they can look for­ward to a widowhood of 15, 20 even 25 years.1 These women are going to be living with the consequences of how much life insurance is on the man in their lives. I am not at all say­ing that women should not have life insurance, quite the con­trary – they need to have life insurance as well. Many Boomer women are the breadwinners in their family. But, again, the facts are clear – there is a 70 percent chance that the woman will be the beneficiary of the life insurance contract.1 So, it is imperative that insurance professionals approach this issue with Baby Boomer women.
Most Boomer men are underinsured.2 Now, with home prices, stock portfolios and 401(k) accounts down, they are the most underinsured they have ever been. If Boomer women do not ensure that the men in their lives are properly covered, they will live with the consequences. I always tell women to not just take my word for it. A simple homework assignment will suffice – find a widow who is living well, and find one who isn’t. Talk to them. There is really one thing separating those two women – life insurance!
Life Insurance is a Tax Issue
The average marginal tax rate in the last 100 years has been about 61 percent.3 It has been as high as 90 percent and as low as in the low 30 percent range.3 The current marginal tax rate is 35 percent. 401k’s and IRA’s started when marginal tax rates were near 70 percent, and that strategy made perfect sense: take money out of your paycheck that you otherwise would pay 40, 50, 60 percent or more, allow it to grow tax deferred, and take it out when you retire and are in a much lower tax bracket. As I said, this makes perfect financial sense. However, does this strategy still make perfect sense? I think not.
Our country is facing a financial mess – we’ve been in two wars overseas costing hundreds of billions of dollars; we have spent over a trillion dollars in the last few years with bailouts, stimulus plans, more bailouts. We have Social Security that is not properly funded. We have Medicare that is eight times worse. Government and military pensions are underfunded. Every man, woman and child now owes about $500,000 each in deficit obligations!4
So let me ask you a question – Where do you think taxes are going from here? If you said “up,” then let me ask you another question – why are you putting any more money into your 401(k) (other than to get the match), your IRA, deferred com­pensation, 403b’s, etc.? So you can avoid paying taxes at our current low rates, defer and grow it so you can take it out when marginal tax rates are possibly back in the 40, 50 percent or higher range? That would make terrible financial sense. What is the solution? Permanent life insurance!
While you don’t get to deduct your premiums, they do grow tax deferred. Here is the kicker – you can withdraw money from these policies TAX FREE! And when you die, the benefits go to your family TAX FREE as well! Additionally, in many states, the cash value and death benefit are protected from creditors. As more and more wealthy people figure this out, permanent life insurance sales will go through the roof.
Life Insurance is a Wealth Transfer Issue
One of the most difficult life insurance sales is trying to con­vince someone who has $15 or 20 million that s/he needs to purchase a large, permanent life insurance policy. S/he will often say, “I’m wealthy, the last thing on earth I need is any life insurance – you’re just trying to make a big commission.” Even attorneys and accountants struggle with this one. I han­dle this objection by simply agreeing with the client. “You’re right! You don’t need any life insurance. But the facts are clear. When you die (notice I didn’t say if), when you die, without an effective estate plan in place, there is the potential for substan­tial estate taxation. What you do need is a way to transfer your wealth in the most tax-efficient way possible. If we could do it with stocks, bonds, real estate or any other vehicle, we would. But, again, the facts are clear – permanent life insurance is the very best wealth transfer tool available.”
A simple example would be a person who has $15 million. The agent could put $10 million into a life-only lifetime in­come annuity. Why life-only? Because at death, that $10 million is completely eliminated from the estate – no income taxes or estate taxes on that $10 million. Okay, but won’t the family be upset about $10 million disappearing from the estate? Absolutely not, because that $10 million was pay­ing the premiums on a $20 million Life Insurance policy in a trust outside of the estate – completely income and estate TAX FREE! (See an advanced planning attorney to set this up properly with gifting, trusts, etc.). Again, when wealthy peo­ple and their attorneys and accountants fully understand this, the only sensible solution is permanent LIFE INSURANCE!
This article was first published by the American College in the Wealth Channel Magazine under the title, Three  Simple Life Insurance Client Discussions for Times Like These.
1) Source:  2000 Administration on Aging; “Older Women” – Older Americans; Month 2000:  In the New Century…The Future is Aging
2) Source:  Women and Life Insurance – The Bridge to Somewhere by Mary Quist-Newins, CLU®, ChFC®, CFP® 4/13/2009
Source: 48 Million US Households are Underinsured Says AAA; Business Wire; Sep 13 2006
3) Source:  Top US Marginal Income Tax Rates, 1913-2003; www. truthandpolitics.org
Source: History of Federal Individual Income Bottom and Top Bracket Rates 1913-2008; www.ntu.org
4) Source:  America’s Total Debt Report by Michael Hodges, April 2

Source: http://www.producersesource.com/featured-slider/how-to-sell-life-insurance-3-vital-client-discussions/

Our forum would like to welcome our first and (as of now) only sponsor. Brokers Alliance and their new Elite Producer Program. We have held off for a long time and turned down a lot of MGA/IMO's because we wanted to find one that we can really stand behind as a great resource for our members. If you are looking to get appointed to sell life or annuity products, please give Shelly a call. They take care of all the grunt work so you can focus on developing new clients. Try them out and you will see why we picked them. Be sure to mention our forum for special treatment!

Phone: (800) 290-7226 Ext 146 and ask for Shelly Manning.


Fax: (866) 706-4385
Email: info@brokersalliance.com

Corporate-Style Benefits, Top Contracts, Over 25% Bonus and much more - TheEliteProducer.com
Providing Top Life Insurance, Annuity, Life Settlement and Premium Financing contracts and support to Agents | Brokers Alliance

You can see a list of carriers here. Life Insurance Options | Brokers Alliance

For over 26 years, Brokers Alliance has provided marketing and advanced case support for life and annuity agents nationwide. However, more than just service and commission, Brokers Alliance provides the level of support needed to ensure that producers experience longevity and success in the financial industry. Brokers Alliance President, David Racich, has forged long-standing relationships with insurance and marketing companies, as well as a variety of vendors who enable Brokers Alliance to help not just the independent agent, but the larger BGA and MGA level agencies. Their strength, knowledge, and experience in the Life and Annuity business will continue to help agents stay on top.

Marketing Support:

Brokers Alliance originally began as a media resource for independent agents by providing knowledge about the industry through the publication of magazines and marketing pieces. This experience has led them to evolve into a brokerage that is able to customize and develop marketing ads and strategies for their top producers. Additionally, marketing managers are available to keep Brokers updated on the latest carriers and products, but also help customize and coordinate marketing efforts.

Agents have access to:

• A dedicated marketing manager
• Online tools for running quotes and illustrations
• Tools to access specific carrier and product details
• Advanced marketing support for large cases, planning, premium finance, life settlements, etc.
• Access to Underwriters with many companies
• Direct access to carrier support teams and marketers*

Case Support

From their case management staff, to online case support tools, agents can rest assured that they will be provided the most up to date status on pending cases and new business. Brokers Alliance is dedicated to making sure your cases are paid quickly by moving through the appropriate channels with ease. This not only helps achieve top conversion, but also allows agents to grow their business more rapidly.

Case support includes:

• Online case status in real-time feeds from insurance carriers
• Regular case status updates via email
• Case manager support on Life, Annuity and Life Settlement applications
• Access to carrier contacts for direct updates*
• Digital and Tele-Application solutions for ease of business

Licensing and Commissions

There is a lot of paperwork and follow up required to keep an agent's licensing and appointments organized and processed in a timely manner. Their experienced dedicated licensing and commission managers are prepared to handle carrier appointments and commissions.

Licensing support includes:

• Dedicated licensing support for carrier appointments
• Status and follow up for licensing requirements
• Status and follow up for commissions, overrides, and bonuses

We understand that there are many Marketing Companies and Brokerages to work with. You should give them a try and you will see why we support them. There are already a number of forum members who use Brokers Alliance.

Source: http://www.insurance-forums.net/forum/life-insurance-forum/looking-independent-marketing-organization-managing-general-agent-life-insurance-look-no-further-t5386.html