Pages

Thursday, May 25, 2017

Bridging the Gap from Annuities to Life Insurance

By: Charlie Gipple CLU, ChFC, SVP Sales and Marketing at Partners Advantage Insurance Services, LLC

Today, there are about 325 million people that live in the United States. However, only around 4.8 million of those people have a long-term care policy, and long-term care can be expensive! In 2015, the median cost of a private room in a nursing home was around $90,000 per year and the median assisted living facility was around $42,000 per year. Considering there is a 70% chance that if you are over the age of 65 you will experience a long-term care event, these statistics are worrisome. Especially considering the persisting hesitancy for consumers to purchase long-term care insurance because of the high cost, premium increases, and the big one; if the consumer doesn’t use the benefit, they lose it!

The good news is Single Premium Life Insurance can help in this area as well. Many products have long-term care, chronic illness and/or terminal illness benefits that come along with the product, whether in the form of a rider or an imbedded benefit. 

Many times what these riders will allow is an “acceleration” of X percent of the death benefit if the consumer has a condition that qualifies. Taking one very popular SPL product in the marketplace as an example; this product has a terminal illness rider that will pay out 95% of the death benefit if the insured is diagnosed with a terminal illness. Furthermore, 100% of the death benefit (minus a $250 charge) can be paid to the insured over a period of time if the client is either confined to a nursing home or diagnosed with a chronic illness. If the client wants the nursing care confinement benefit or chronic illness benefit in a lump sum, there are “discount factors” that would be applied to the death benefit, for example 85% and 75% respectively for the nursing care confinement and chronic illness benefits. 

Furthermore, the underwriting for these extra “morbidity” benefits many times amounts to nothing as the insurance company may only underwrite for mortality (Death) and not morbidity (Illness). So, for a consumer that has been denied traditional long-term care insurance, these benefits attached to an SPL policy may be a good alternative. 

The time has never been better for the “Live, Die, or Quit” value proposition of Single Premium Life. To clarify, if the consumer lives long enough to have a chronic illness, there is great value in SPL. Conversely, if the consumer dies, the death benefit will pay out to a beneficiary. Or lastly, if the consumer realizes they want to “quit” their policy, they can do that at any time and get at least their original premium back.

Learn more in the full white paper "SPL: Bridging the Gap from Annuities to Life Insurance," by Charlie Gipple, CLU, ChFC. It provides case examples, addresses costs, and how you can find success in explaining these products to clients.  

Questions or Need Case Assistance: Contact the Partners Advantage Brokerage Team at 888-251-5525, Ext. 700.


Fill out my online form.



For financial professional use only. Not for use with consumers.

This material is intended for educational purposes only and is not intended to serve as the basis for any investment or purchasing decision. Insurance and annuity products: Are not deposits. Are not guaranteed by a bank or its affiliates. May decrease in value. Are not insured by the FDIC or any other federal government agency. This information is written in connection with the promotion or marketing of the matters addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice. Pursuant to IRS Circular 230, Partners Advantage Insurance Services and their representatives do not give tax or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Encourage your clients to consult their tax advisor or attorney. The information contained in this article is not intended to serve as tax or legal advice and is not intended to provide financial or legal advice and does not address individual circumstances. Encourage your clients to consult their tax advisor or attorney. The information contained in this article is not intended to serve as tax or legal advice and is not intended to provide financial or legal advice and does not address individual circumstances. Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with any accrued loan interest, will reduce the policy’s account value and death benefit. Assuming a policy is not a modified endowment contract (MEC), withdrawals are taxed only to the extent that they exceed the policy owner’s cost basis in the policy and usually loans are free from current federal taxation. A policy loan could result in tax consequences if the policy lapses or is surrendered while a loan is outstanding. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59½, with certain exceptions. These characters are fictional and are not actual customers. Your own decisions should be made in light of your own financial situations. This hypothetical examples used are for illustrative purposes only, is no guarantee of return or future performance, and does not depict the actual performance of a specific product or its investment options. In order to provide a recommendation to a client about the liquidation of a securities product, including those within an IRA, 401(k) or other retirement plan, to purchase a fixed or variable annuity or for other similar purposes, you must hold the proper securities registration and be currently affiliated with a broker/dealer or registered investment adviser. If you are unsure whether or not the information you are providing to a client represents general guidance or a specific to liquidate a security, please contact the individual state securities department in the states in which you conduct business. Indexed Universal Life is not a stock market investment and does not directly participate in any stock or equity investments. Market Indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks; a market-indexed insurance product is not comparable to a direct investment in the equity markets. Clients who purchase IUL are not directly investing in a stock market index.

65157

Thursday, May 18, 2017

Developing a Referral Mindset

By: Michael Macias, Relationship Coordinator at Partners Advantage Insurance Services, LLC

First, ask yourself this question: Doesn’t it make sense to make a decision to build a business based on how people want to meet us? Here are five steps that could potentially help put you in front of more clients and grow your business by fully engaging a referral mindset. This will benefit your current clients, future prospects, and even the network of other financial professionals you work with on a regular basis.

Step 1: Make a Decision and Throw Out the HeadTrash1
Before developing your referral strategy, you need to make a decision; the decision that you want to be in front of more clients and you are willing to put forth the effort that can potentially create the success you want to achieve.

Step 2: Develop and Work a Process
Developing a process needs to be customized in a way that works for you and your unique business model, but inflexible enough so that you will stick to it.

Step 3: Develop “Referral” Networks
Have you ever thought of giving referrals yourself? What if giving those referrals equated to you receiving referrals in return?

Step 4: Harness the Power of Expectation
Rather than be hopeful of getting referrals, be expectant. Would you agree going into any situation expecting a certain outcome would increase the chances of that outcome actually happening?

Step 5: Rinse, Repeat, and Monitor Results
The final step in the process is bringing it all together. Monitor your process over time for results based off of the action items you have taken. Are you getting the results you are “expecting”?

Putting forth effort into this process can help create a profitable referral strategy. When combined with your overall business model and prospecting strategy, you can create a solid foundation where your referral network and business can continue to grow.


Contact Michael Macias, Relationship Coordinator for additional creative ways to ask for referrals: 888-251-5525, Ext. 389. 

Fill out my online form.



1headtrash911.com

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE PUBLIC.


This material is intended to provide general information only. It is not intended to render legal, accounting, Social Security or tax advice, and the services of those professionals should be sought. Financial professionals who utilize this material may be able to identify potential retirement income gaps and introduce products, such as fixed annuities, as potential solutions. The testimonial may not be representative of the experience of other financial professionals and is no guarantee of future success.


Always follow your firm’s policies and procedures regarding review and use of third-party templates, creation and distribution of client and prospect materials, hosting of client and prospect events, offering giveaways or prizes, and your firm’s employment process.


132336

Monday, May 15, 2017

Help Your Clients Be Prepared For Life Changes With A Policy Review

Do you have clients who are getting married? Buying a house? Having grandchildren? Recently widowed? Acquiring assets?

An essential component of the life insurance sales process is periodically reviewing the coverage to make sure it is addressing your clients' current needs. Many people assume their protection is sufficient and appropriate for the duration of their lives. However, life changes, and a client's life insurance plan should adapt as well.

Have your clients' needs changed?

With a client review, you can help your clients make use of their premium payments and accumulated cash values. Position yourself as a reliable financial professional. Call Partners Advantage today and we'll provide you with three marketing pieces: life events checklist, life insurance client review, and a case study. These three items can help you explore the client review process and put it to work to help you further grow your sales. 

Start now and help your clients meet their financial protection goals today and into the future. Call us at 888-251-5525, Ext. 389 or email Michael Macias at 
mmacias@partnersadvantage.com.

We are available to you by phone 12 hours each business day - 7 a.m. to 7 p.m. Central. 

For financial professional use only. Not for use with consumers.

137301

Thursday, May 11, 2017

The Mind-Game of Seminars

By: Charlie Gipple CLU, ChFC, SVP Sales and Marketing at Partners Advantage Insurance Services, LLC

Conducting presentations is one big mind-game. I believe it is the mind-games that presenting plays on us that makes presenting the number one fear in America in study after study. Just google “America’s #1 fear” to see my point. I therefore believe that the mindset of the presenter is what will determine the success or failure of a seminar presentation. 

So, allow me to address different areas of “mindset” that are of huge importance.

Preparation: Practice How You Play
To me, preparation is rehearsing.  A lot of people have this backwards—they spend more time on the PowerPoint slides than the rehearsing. Rehearsing out loud is crucial. I stress out loud because even though the words and the flow may sound smooth while rehearsing silently, it can be a night and day difference when the words are actually coming out of your mouth. Your brain works at a much different pace than your vocal cords and your tongue. By rehearsing (out loud) to the point where you have done one full presentation to yourself that flowed well, had the right pauses, right energy, right content, etc., you will knock it out of the park.  

Embrace the Butterflies
Many people view being nervous before presentations as a bad thing. I believe that being nervous can have a positive impact on a presentation. As a matter of fact, the positive effect of being nervous is a chemical and biological fact, not something I am speaking about theoretically. Our maker has given us something called adrenaline, which is a blessing!

As you are walking up on stage the number one thing you should have in your mind is almost a verbatim “script” of the first couple of sentences of your talk. Once you have successfully articulated those first couple of sentences, your nervousness will have gone down significantly and your preparation/training will then kick in. Furthermore, after the first couple of sentences, that very important first impression mentioned earlier would have already been formed in the minds of the audience. The opening determines everything! Embrace the butterflies!

Confidence
I believe the core mindset variable that determines your success or failure in this mind-game of presenting is confidence. If you come across as confident to the audience (even if you aren’t confident), your audience will feel this confidence and reflect positive body language back to you which in turn creates confidence in your own mind. Now, if for whatever reason you do not feel confident, the term “fake it till you make it” has some truth here because of that self-fulfilling prophecy.


Want to learn more? Call the Partners Advantage Brokerage Team at 
888-251-5525, Ext. 700.


Fill out my online form.




This material is intended for educational purposes only.  For financial professional use only. Not to be used for consumer solicitation purposes.

121838

Tuesday, May 9, 2017

Meeting the Life Insurance Needs of Affluent Foreign Nationals

By: Bill Jackson J.D., CLU®, Sr. Advanced Markets Consultant at 
Partners Advantage Insurance Services, LLC

With increasing globalization, more and more affluent foreign nationals have a presence in the United States. It is estimated that affluent foreign nationals control more than $70 trillion in assets and number over 14 million individuals*. Furthermore, these affluent families are culturally receptive to the protection offered by life insurance.

Why do many savvy foreign nationals look to the United States to buy life insurance? There are the usual reasons, perhaps to protect a business interest. Two reasons stand out above the rest. Foreign nationals, who own property in the United States, have unusual exposure to Federal Estate Tax. Also, foreign nationals crave the guarantees and stability of U.S. dollar based life insurance policies offered by U.S. carriers.

Resident and Non-resident aliens are treated differently for estate transfer tax purposes. Resident aliens are taxed just like U.S. citizens, and have the $5.4 million unified gift and estate tax exemption as well as the annual $14,000 gift tax exemption. The hurdle they face is that all foreign assets are included. They also do not have access to the unlimited marital deduction. Non-resident aliens don’t include foreign assets, but U.S. assets are subject to the 40% federal estate tax rate and they only have a $60,000 exemption. They can however, exclude annual gifts up to $14,000. In other words, a foreign national with a million dollar California residence would be liable for $376,000 of federal estate tax on that property alone on the death of the first spouse. Life insurance is the go-to option to avoid liquidation, and a secondary benefit is that life insurance is not considered U.S. situs property subject to estate tax. 

Even foreign nationals who hail from Class A or B countries often face volatile currency fluctuations. So, when they are looking to protect their family, they naturally gravitate towards carriers offering products backed by a stable currency. Therefore U.S. currency products and carriers are in demand. 

Because non-resident aliens can hold life insurance policies personally, without the policy being subject to U.S. income or estate tax, the goals of wealth preservation and providing retirement income can easily be accommodated. No life insurance trust would be required.
Which foreign nationals could benefit from U.S. based policies? Most carriers require some U.S. connection. These connections could take the form of a minimum stay of say 15 days per year, real estate ownership, a business interest or immediate family living in the U.S. Some carriers may also require that a percentage of the assets used to justify the coverage be held in the U.S.

Most all carriers will require that solicitation and applications be taken in the U.S., as well as medical exams are usually expected to be completed in the U.S.

At Partners Advantage Insurance Services, we have the experience and resources to help you be successful in this lucrative market segment. Not only do we provide access to the major U.S. carriers who cater to the foreign national market, we also have relationships that can provide international coverage to foreign nationals who do not have a connection with the U.S.

Call Bill Jackson J.D. CLU, Senior Advanced Markets Consultant if you have a case you would like to discuss or would like added information on: 888-251-5525, ext. 361.

For financial professional use only. Not for use with consumers.

*Source: World Wealth Report, 2015, Capgemini and RBC Wealth Management
Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013.

This material is intended to provide general information only. It is not intended to render legal, accounting, Social Security or tax advice, and the services of those professionals should be sought. Financial professionals who utilize this material may be able to identify potential retirement income gaps and introduce products, such as fixed annuities, as potential solutions. The testimonial may not be representative of the experience of other financial professionals and is no guarantee of future success.

151561

Thursday, May 4, 2017

Tips on Communicating Effectively with Women Clientele

By: Vanessa González, Internal Wholesaler, Partners Advantage Insurance Services

Have you ever wondered what percentage of your clients feel underserved, or if they have considered finding a new financial professional? Did you know that there are millions of household decision-makers in the United States needing financial guidance and solutions, but don’t know who they can turn to? 

Today, more and more women are a large part of a rising generation with high income potential that are beginning to save for retirement, looking for life insurance, and long-term care planning. As a financial professional, what are you doing to help? The women’s market has a lot of untapped potential and is a great opportunity for you.

Why isn’t there a better connection between women and their financial professional? The answer is SIMPLICITY. Yes, just keep it simple. If you can provide your women clients with the personal attention and coaching they need to achieve their goals, not only will you gain their trust, but you’ll benefit from their loyalty. Additionally, a happy client would most likely become a source of referrals.

Contact Vanessa Gonzalez for support in increasing your presence in the women's markets at 888-251-5525, Ext. 145.


Fill out my online form.



For financial professional use only. Not for use with consumers.

The information in this article is for general information only.

133757 

Thursday, April 27, 2017

Stars are Aligned for Fixed Indexed Annuities and Guaranteed Lifetime Withdrawal Benefits

By: Charlie Gipple, CLU, ChFC, SVP Sales and Marketing at Partners Advantage Insurance Services, LLC

With FIAs, IT’S NOT ABOUT THE AMOUNT OF RETURN ON YOUR MONEY, IT’S ABOUT THE AMOUNT OF MONEY YOU’RE GETTING THE RETURN ON.  

The year was 1994, and there was a CFP from California that would create one of the most profound “rules of thumb” for retirement income that has ever been created.  William Bengen wrote an article which appeared in the Journal of Financial Planning, and it released the results of this very profound study that he had just undertaken.  This study is what started the “Gold Standard” safe withdrawal rate of 4%.  William basically said that even though over time the market had averaged around 10%, in the distribution years, it doesn’t mean that a client can “safely” withdraw 10% from their portfolios.  So, what William did is he back-tested hypothetical retirement “start dates,” assuming a 50% stock and 50% bond portfolio all the way back to the 1920s, using the actual stock and bond market performance. 

After the analysis was said and done, he said that consumers were “safe” by withdrawing 4% of their initial portfolio value per year adjusted for inflation or deflation.  By “safe,” what he meant was that the 4% distributions were very unlikely to spend down the client’s portfolio/retirement money before the end of the 30-year retirement.  As a matter of fact, in his study, he had a 100% success rate using the 4% rule for retirement income. 
As a result of this study, securities reps for almost two decades have been living and dying by this rule. If a client has a million dollars at retirement, then the client should not take more than $40,000 during the first retirement year, for example. A later study was done in 2013 that was coauthored by Morningstar Inc. It established, in this new world of volatile markets and low interest rates, that the new “safe withdrawal rate” is actually 2.8%. 

The study also indicated that with today’s low-interest rates, market volatility, and SEQUENCE OF RETURNS RISK that there is almost a 52% chance of failure using the 4% rule. Would you get on an airplane if there was a 48% chance of having the number of landings equal the number of takeoffs?

Before looking at what a GLWB can do for a client on a “guaranteed* basis,” I want to point something out. When you look at this risk that we just discussed, which is the client losing 20% of their portfolio value and then taking a major pay cut in retirement or having to delay retirement, this risk is just as catastrophic as say a car crash, medical emergency, a house fire, etc. Or, maybe even death itself. What is the point? My point is, when risks in our lives are catastrophic, should they occur, we take actions to hedge those risks. What do we use? We use something called insurance!

Learn more about FIAs and GLWBs in the full white paper "Stars are Aligned for Fixed Indexed Annuities and Guaranteed Lifetime Withdrawal Benefits" by Charlie Gipple, CLU, ChFC. Gain insights on how to help your clients with FIAs and GLWBs and walk them through hypothetical scenarios that show them how FIAs can be great inflation fighting products.

Call your Partners Advantage Brokerage Team at 888-251-5525, ext. 700 for a copy.

For financial professional use only. Not for use with consumers4

*Guarantees are backed by the Financial Strength and claims-paying ability of issuing company.

Annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of premium and credited interest, and the reassurance of a death benefit for beneficiaries.

An income rider or benefit (sometimes called Guaranteed Lifetime Withdrawal benefit rider or GLWB rider) is an additional feature available with some annuities and generally optional and come with additional costs. Income benefits are designed to provide income options above and beyond the standard annuitization or free withdrawal features in annuities.

Pursuant to IRS Circular 230, Partners Advantage Insurance Services and their 
representatives do not give tax or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Encourage your clients to consult their tax advisor or attorney.

The information contained in this article is not intended to serve as tax or legal advice and is not intended to provide financial or legal advice and does not address individual circumstances.

30377

Thursday, April 20, 2017

Are PowerPoints Your Best Friend or Your Worst Enemy?

By: Charlie Gipple CLU, ChFC, SVP Sales and Marketing at Partners Advantage Insurance Services, LLC

I believe wholeheartedly that the purpose for PowerPoints has been lost on many presenters because of those presenters’ own shortcomings at presenting. Let me explain. For many that do presentations wrong, the idea of putting together a long deck of beautiful slides that are extremely wordy automatically makes them think the presentation will be well received. Thus, the amount of time preparing for what is really important— practicing the words you use and how you use them—has gone by the wayside.

In a people business, where people want to connect with people, this is the wrong way of presenting yourself. Creating PowerPoint slides should be secondary and should take you only a fraction of the amount of time that it takes you to think through and rehearse the delivery of your words to the audience. If you have this backward, you are simply choosing your priorities and needs over those of the audience. There is no way that even a powerful PowerPoint could ever offset shortcomings in the presenter’s word and concept delivery.
With that as a primer, I want to share with you five quick tips that I teach people for using PowerPoint slides so they are not falling victim to the traps I just outlined. 
  1. Less is Better. I believe if you are going to use PowerPoint slides, there should be no more than one slide for every two minutes of speaking you do. 
  2. Know Your Transitions. Having smooth transitions makes the presentation one cohesive message, as opposed to starting and stopping 30 times which is equivalent to Ambien. 
  3. Never read the PowerPoint slides verbatim. PowerPoint content should be merely bullet points or pictorials to tee up a much broader conversation. Paragraphs in PowerPoint are deadly to a presentation. PowerPoints are points—with you elaborating on them verbally.
  4. Favor Stage Right. Of course, stage right is on the left-hand side for the audience. So as you speak on the left-hand side of the projector screen, from the observer’s standpoint it is subconsciously more natural. The audience is able to look at you on their left and then to the right to the PowerPoint.
  5. Learn and Rehearse Stories and Jokes. As I am pulling everything back up after a crash, I will tell a story or a joke in order to fill what otherwise would be an awkward silence. When you do this, you are showing that you are in control, not panicked, and have been there and done this before.
In closing, I am a PowerPoint fan if it is used correctly. The problem with this wonderful technology is that it has made our lives so much easier, that it is easy to rely on this tool too much while cannibalizing the important stuff—delivery. And good delivery is hard because it takes a ton of elbow grease. A good presentation takes work—not more slides!


Want to learn more? Call the Partners Advantage Brokerage Team at 
888-251-5525, Ext. 700.
Fill out my online form.


For financial professional use only. Not for use with consumers.


The information in this article is for general information only.


Always follow your firm’s policies and procedures regarding review and use of third-party templates, creation and distribution of client and prospect materials, hosting of client and prospect events, offering giveaways or prizes, and your firm’s employment process.



Wednesday, April 12, 2017

The Official Delay of the DOL Fiduciary Rule – Now What Happens?

We all had a sigh of relief hearing the official delay of the DOL Fiduciary Rule until June 9. While Partners Advantage has been preparing for the April 10 rule implementation for over a year, we are celebrating the news of the rule’s delay.

However, Partners Advantage will continue to prepare for possible future changes. 

You can listen to Partners Advantage’s DOL strategy here: 

You will hear four main points during the webinar:
  • The backdrop of the past and future, regarding the DOL Fiduciary Rule. When you take time to understand the history, it helps you better understand what is going on currently. Then what does this delay mean and how do you make sense of it all?
  • Partners Advantage’s General Counsel Patrick will provide answers to questions many agents currently have. 
  • Now what? What happens between now and June 9?
  • Partners Advantage’s Senior VP of Sales and Marketing, Charlie Gipple, will share why Partners Advantage is continuing to flourish despite all of the changes within the industry. How can you join them?
We bring you the key tools to prepare you for changes like the DOL Rule and provide you with a critical link towards continued success of your business. If you would like more information on how we can PARTNER, please contact us at 888-251-5525, Ext. 700. 


For financial professional use only. Not for use with consumers.

134153

Thursday, April 6, 2017

The DOL Rule Delay Is In...What Now?

The fiduciary conversation is not over! The Department of Labor has delayed its Fiduciary Rule and announced a 60-day delay to the applicability date. What does this delay mean to you?

Join Partners Advantage's Senior VP of Sales and Marketing, Charlie Gipple, and General Counsel, Patrick Amaya, Friday, April 7 at 10:00 a.m. PST as they share an update on the delay, what this means for you and the industry, and what you should do from now until June 9.

Friday, April 7 at 10:00 a.m. PST
Can't see the button? Register here!
Here's some of what our knowledgeable team will cover:
  • What does this 60-day delay mean to you and what's next?
  • What you should do between now and June 9
  • Our thoughts on how the DOL Fiduciary Rule may or may not change
  • The dos and don'ts concerning your business and this pending rule
  • Partners Advantage's commitment to you and your business now and how that will continue after June 9
Don't miss out on the valuable insight and key strategies in continuing the success of your business.

If you have questions or concerns please contact our Partners Advantage Brokerage Team for additional information: 888-251-5525, Ext. 700.

For financial professional use only. Not for use with consumers.
Discussion of the Department of Labor (DOL) Fiduciary Rule is based on the information available from the DOL, pending litigations, and other sources deemed to be reliable as of the date of this communication. The views and opinions of Partners Advantage Insurance Services, LLC is subject to change as guidance from the DOL becomes available and court opinions are published.

134153

Thursday, March 30, 2017

Human's Defense Mechanisms: Fight or Flight

By: Charlie Gipple, CLU®, ChFC®, Senior VP of Sales and Marketing, Partners Advantage Insurance Services, LLC

For our ancestors to have survived prehistoric/ancient frightening predators and harsh environments, we as humans have been given built-in defense mechanisms that have never left our DNA. Paradoxically, these same defense mechanisms are instilled in our clients’ brains and can be counterproductive to making wise financial decisions today. For instance, picture yourself about 14,000 years ago walking through the woods with your spear searching for food. Suddenly, from behind, you hear a low growl, a few thunderous footsteps, and you turn to see a saber-toothed tiger upon you. 

What goes through your mind at this point in time? Are you looking at this saber-toothed tiger and calculating the distance between you and him versus the distance between you and shelter? Do you calculate how fast you can run versus how fast he can run and then decide the success rate of escaping as this tiger’s lunch? Maybe you are calculating in your mind the odds of going head-to-head with him? In other words, are you making a left brain analytical decision at this point in time? No you’re not! Nobody can be that cool, calm and collected to make a left brain rational calculation in times of severe stress.

Conversely, this is what is happening. Your brain is moving to the tune of 268 miles per hour, and it’s telling your pituitary gland to secrete adrenaline immediately into the bloodstream. This shot of adrenaline increases your blood pressure, increases your heart rate, and actually increases the blood flow to the muscles, thus making you far athletically superior than before getting this shot of adrenaline. This “fight or flight” mechanism is what allows us a fighting chance of surviving that saber-toothed tiger. A similar example would be: we have all heard stories of a distressed mother pulling a car off her baby. Adrenaline and “fight or flight” is a powerful thing. This right brained “fight or flight” capability is biological and has been given to us by our creator. It is what has been happening in our brains since the very beginning of our existence. This is why we exist versus being extinct by dinosaurs or a saber-toothed tiger. It is what we are born with and it stays with us until the day we die.

Find out about the seven secrets: primacy bias, storytelling, simplification, power in the pen, feel/felt/found, confidence and recency bias...

DOWNLOAD the full complimentary whitepaper: Seven Secrets to Effective Communication, by Partners Advantage Senior VP of Sales and Marketing Charlie Gipple, CLU, ChFC. 
Fill out my online form.



For financial professional use only. Not for use with consumers.

67113

Thursday, March 23, 2017

The Human Brain: An Amazing and Powerful 3 Pound Machine

By: Charlie Gipple, CLU,® ChFC® - Senior VP of Sales and Marketing, Partners Advantage
This is an excerpt to the full whitepaper by Charlie Gipple: "What Robo-Advisors CanNOT Do That You Can An Introduction to Behavioral Finance"

The Brain is a Powerful Thing
The date was May 6, 1954. Up to this point in time, it was clear, it was impossible. Sports scientists, medical doctors, world class athletes from across the world said it was absolutely impossible to athletically accomplish this feat. Our bone structure was all wrong. We were not aerodynamic enough. Humans had inadequate lung power and inadequate heart power. All of these excuses were used and millions of athletes tried but failed. This challenge went all the way back to the ancient Greeks and nobody could do it. However, on this day, somebody proved wrong all of the pundits and athletes before him. His name was Roger Bannister. Here is the interesting part. Over the next 12 months, 37 more people broke the 4-minute mile. In the second year, thereafter, 300 more people broke the 4-minute mile. 337 people broke the 4-minute mile within two years of Roger Bannister accomplishing this feat that was “absolutely impossible.”1 

What is my point? My point is it’s all psychological! The Human Brain is an amazing thing. This little three-pound thing between our ears that usually takes up about 2% of a human’s bodyweight and has 100,000 miles of blood vessels is one of the most powerful things on earth. Of course, I’m talking about the human brain. It’s that powerful! There isn’t any other animal (except for maybe a dolphin) that has the brainpower like we do. For example, although an elephant’s brain is physically larger than a human brain, the human brain is 2% of our total body weight, where an elephant’s brain is .15% of their bodyweight. Meaning humans have a very large brain to body mass which makes us one of the smartest species on earth.2

Furthermore, because we are so smart, we can predict events that other species cannot predict. For example, I know when lightning streaks across the sky, there is the sound of thunder to follow. I know that if I am on the street and there is a car coming towards me from ½ mile out, to get out of the way. I can predict that if I bring home a Harley Davidson today, to my wife’s surprise, I will be single the next day. We have predictive capabilities that no other species on earth has.

Here is the paradox, however, because we are so smart we are also so dumb. Because we can predict things that other species cannot predict, we tend to think we can predict things that are impossible to predict. This is an example in behavioral finance of what is called “Overconfidence Bias.” Have you ever seen a client that thinks they can predict the stock market and makes irrational decisions as a result? Have you ever run into a client that believes they do not need life insurance because they will live to a ripe old age? Have you ever spoken with a client who says he will never need long-term care because he/she will “just die”? The problem is, markets are unpredictable, mortality is unpredictable, and morbidity is unpredictable! There are some things in life that are hard for a human being to predict, unlike hearing the sound of thunder following a lightning strike. This “overconfidence bias” is an example of the 117 documented biases that behavioral finance studies and works to find solutions for.3

If you would like a copy of this whitepaper please contact our Partners Advantage Marketing Team at
888-251-5525, ext. 138 or email news@partnersadvantage.com.

For financial professional use only. Not for use with consumers.

1 Mackay, Harvey, 1988, Swim with the Sharks.
2 “Thinking About Brain Size,” http://serendip.brynmawr.edu/bb/kinser/Int3.html, last accessed 3/10/16
3 Source: “Conquering Concerns: Selling Through Behavioral Biases”

43990

Thursday, March 16, 2017

IUL: Cost Is An Issue Only In The Absence of Value

By: Charlie Gipple, CLU, ChFC, SVP Sales and Marketing at Partners Advantage Insurance Services, LLC

I had a mentor many years back who had done very well in financial services and had made a great deal of money. While I was talking with him one day on the phone, he brought up he had just purchased a Ferrari. At this point, me being fairly frugal and understanding there is no worse “investment” on earth than automobiles, I said, “what are you thinking buying a $200-$300k car? How can any car be worth this much money?” After firing back with a couple of choice words which I cannot put in this article, he told me a phrase I will never forget. He said “Charlie, cost is an issue only in the absence of value. Is this car costly to me? Yes. However, if to me the value eclipses the cost, why would I not buy it?”

The issue of cost is brought up very frequently during conversations around life insurance and especially permanent life insurance. Of course this is perpetuated by the pundits such as Suze Orman and Dave Ramsey who consistently make the blanket statement that permanent insurance is too costly and one should buy term and invest the difference. So, as I do indexed product boot camps across the country, my job is to educate the agents on why IUL is not so expensive if designed correctly and how the agents can explain this to their clients.

Learn more in the full white paper "IUL: Cost Is An Issue Only In The Absence of Value," by Charlie Gipple, CLU, ChFC.  Gain insights on how to show your clients tax advantage opportunities IUL policies offer and walk them through a hypothetical scenario that shows them IUL policies can be quite reasonable in price.

Fill out my online form.



For financial professional use only. Not for use with consumers.

Indexed Universal Life is not a stock market investment and does not directly participate in any stock or equity investments. Market Indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks; a market-indexed insurance product is not comparable to a direct investment in the equity markets. Clients who purchase IUL are not directly investing in a stock market index.
Pursuant to IRS Circular 230, Partners Advantage Insurance Services and their representatives do not give tax or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Encourage your clients to consult their tax advisor or attorney. The information contained in this article is not intended to serve as tax or legal advice and is not intended to provide financial or legal advice and
does not address individual circumstances.

Both loans and withdrawals from a permanent life insurance policy may be subject to penalties and fees and, along with an accrued loan interest, will reduce the policy’s account value and death benefit. Assuming a policy is not a Modified Endowment Contract (MEC), withdrawals are taxed only to the extent they exceed the policy owner’s cost basis in the policy and usually loans are free from current federal taxation. A policy loan could result in tax consequences if the policy lapses or is surrendered while a loan is outstanding. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59½, with certain exceptions. These characters are fictional and are not actual customers. Your own decisions should be made in light of your own financial situations. This hypothetical examples used are for illustrative purposes only, is no guarantee of return or future performance, and does not depict the actual performance of a specific product or its investment options.


51766

Wednesday, March 15, 2017

Taxes for 2017 and Beyond

By: Bill Jackson J.D., CLU®, Sr. Advanced Markets Consultant at Partners Advantage Insurance Services, LLC

With tax reform being a major part of President Trump’s platform and both houses controlled by the Republicans, many are wondering “how the tax environment will change.” All professionals in the financial services industry will be asked about this hot topic because it directly impacts financial plans our clients are implementing.

It is important to understand that tax reform is complex. It has been 31 years since the last major overhaul. With the deficit at 21 trillion dollars, any changes will need to be relatively revenue neutral. Changes will also require that the executive and legislative branches be on the same page. There are many differing views on this subject, even for members of the same party. Nevertheless, there is a better chance that significant changes will be made than at any time in recent history.

An important planning concept in a potentially changing tax landscape is flexibility. It will also be important to keep in close contact with clients to monitor planning solutions in light of changes that are being made. 

Let’s focus on some of the proposals being made. 1The most important change to personal income taxes would be the simplification of rates to 12%, 25%, and 33%. The cutoff points for Joint filers would be at $75,000 and $225,000, and for Single filers, it would be $37,500 and $137,500.

There are several provisions slated for repeal, the Medicare Hospital Insurance of .9%, the 3.8% tax on investment income, and the Alternative Minimum Tax. 

Aside from mortgage interest, charitable contributions, and state and local taxes, itemized deductions would be lost. Even these deductions would be capped at $100,000 for single filers and $200,000 for joint filers.

To compensate for lost deductions, personal exemptions would increase to $30,000 for joint filers and $15,000 for single filers.

The Federal Estate tax would be repealed.  However, gift and generation skipping taxes would remain intact. Revenue would be boosted by eliminating the step up in basis for capital gains to the extent that the value of the estate exceeds $10 million. However, transfer of appreciated property to relatives or a private charity would not be allowed.
From a business standpoint, corporate rates could be reduced from 35% to about 20%. Pass-through income would come down from the current 40% rate to 25%. Revenue loss would be made up by a 20% tax on imports and a 10% tax by repatriating foreign profits of U. S. corporations.

If these changes come into play, there is no guarantee that they will continue in future administrations. It is still prudent to provide financial security in estate planning situations regardless of the current estate tax environment. Fortunately, the retirement planning space has not been changed and is still provided with the incentives we are all familiar with for annuities and life insurance. The major takeaways are to provide clients with flexible solutions and make sure that you are monitoring client accounts frequently. 

Contact William “Bill” Jackson, Sr. Advanced Markets Consultant at 888-251-5525, ext. 361 with any advanced case design questions or concerns.  He’s here to 
HELP YOU present better strategies!


1Deloitte, 2017 Essential Tax and Wealth Planning Guide, Post-election tax policy update - Impact of the 2016 elections, Installment Two.

For financial professional use only. Not for use with consumers.

Partners Advantage Insurance Services and their representatives do not give tax or legal advice.  Accordingly, any tax information provided is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. Encourage your clients to consult their tax advisor or attorney.
The tax and estate planning information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Partners Advantage does not provide legal or tax advice. Partners Advantage cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws that may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Partners Advantage does not assume any obligation to inform you of any subsequent changes in the tax law or other factors that could affect the information contained herein. Partners Advantage makes no warranties with regard to such information or results obtained by its use. Partners Advantage disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation.

120278

Wednesday, March 8, 2017

Experience the Advantage with Partners Advantage

Experience the Advantage
We Make Growing Business Easy.SM

Why Partners Advantage?
Partners Advantage focuses on providing added value to independent financial professionals and agencies through training, specialty services, enhanced case support and business planning. In addition, each of our contracted agents receive an assigned Brokerage Director and New Business Case Manager that can help the agent with their training and cases’ status. Partners Advantage represents some of the best insurance companies in the United States, with distribution contracts with over 50 major insurance carriers. Our current office locations are in Florida and New Jersey, while the main office is located in Riverside, CA.  

As our economy and industry continues to change, Partners Advantage provides you with leadership, resources and exceptional customer service to continue to grow your business. Together, we can adapt to change and thrive in this changing environment.

How do we "make growing business easy"? 
We accomplish this with our cutting-edge sales technology, vast experience and expansive growth via mergers and acquisitions; providing new growth opportunities within the industry; and our training and education first philosophy. We put what we've learned from our many years in the financial services industry to work by helping financial professionals and agencies to innovate, expand and thrive.

There’s all of this and much more to help YOU better serve your clients! Partner with us and strive to achieve our VISION of keeping American families protected and secured throughout every stage of life.

If you would like to PARTNER with us, please contact our Partners Advantage 
Relationship Coordinating Team at 888-251-5525, ext. 389.

For financial professional use only. Not for use with consumers.

119881

Thursday, March 2, 2017

Understanding Generational Differences to Enhance Your Sales

By: Oscar Toledo, Director of Sales and Marketing, Partners Advantage Insurance Services

Our market space continues to evolve, and the better you understand that different generations have very distinct views about products, politics, religion, careers, and just about everything else, the more successful you will become. 

Sales techniques that are effective for one generation may come off as “pushy” for another. Generational differences are more significant in marketing and selling now than at any other time in our history. For one thing, there are currently more generations alive and active than ever before, as modern medicine and affluence have produced a revolution in longevity.

We need to try to understand how customers’ backgrounds affect their buying preferences. As an example, during my fact finder with a prospect, I begin with questions such as:
  • Where are you from and what was it like growing up? 
  • What did you learn about money growing up?
  • What was the hardest lesson you’ve had regarding money?
I do this because the information they will share with me during the first half of the meeting will allow me the opportunity to better understand their buying preferences, and just as important, build rapport with them.

Contact Partners Advantage for complete training and sales assistance at 
888-251-5525, Ext. 700

Read the full article: “Better Understanding Generations to Enhance Sales” here. 
Fill out my online form.



For financial professional use only. Not for use with consumers.

Always follow your firm’s policies and procedures regarding review and use of third-party templates, creation and distribution of client and prospect materials, hosting of client and prospect events, offering giveaways or prizes, and your firm’s employment process.
Partners Advantage Insurance Services and their representatives do not give tax or legal advice.  Accordingly, any tax information provided is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. Encourage your clients to consult their tax advisor or attorney.

95969