When clients think about leaving a legacy for their children, they have several choices. In the current environment there is a high probability the earmarked asset is an IRA account. With the passing of the SECURE Act, that could pose a problem. Here’s why:
On December 20, 2019, President Donald Trump signed into law a spending bill containing the SECURE Act (Setting Every Community Up for Retirement Enhancement Act). The new legislation took effect on January 1st of 2020, giving only 11 days (minus holidays and weekends) for everyone to adjust. This has left many financial institutions and financial professionals affected and scrambling to prepare.
I recently read an article on CNBC that said millennials would need to save a whopping 40% of their income over the next 30 years to be able to live off half their salary in retirement. Reading that, you might be thinking the same thing I was --
Although the general trend in product popularity has stayed the same with little change in the market share for Indexed Universal Life, Whole Life, Guaranteed Universal Life, and Term, there are certain aspects of the life insurance space that are changing dramatically.
Premium financing can be a valuable financial tool, but the strategies behind it can be complex. Before you discuss the topic with a client, you need a clear understanding of premium finance options because this must be set up and managed correctly.
Savvy financial professionals know it’s not easy to sell something “invisible” like an idea. It’s very different than selling a physical product. You’ve probably seen a lot of great sales concepts rolled out by insurance carriers and marketing organizations, but how many worked in a real-world setting?
In the life insurance application process we often hear, “I do not want to take a medical exam…” While not every type of life insurance plan requires a medical exam, there will be times that it’s necessary when applying for coverage. Is one type better than the other? No. It really just depends on the needs of your prospects/clients, and if they are eligible for a non-medical option.
There are many cash-value life insurance products for clients who are focused on protecting their loved ones, wealth accumulation and tax-free distributions. The differences between these products can significantly impact the wealth accumulation potential of the policies. Let's examine the various cash-value products available and determine the top life insurance products for this purpose.
You may have seen some pretty large industry movement in decreasing cap rates at carriers, especially in regards to Indexed Universal Life insurance (IUL). It seems like this is an industry wide issue and “carrier chatter” is really heating up across the board.
Financial professionals often look at clients solely through the eyes of an illustration. We assume what a client looks like today will continue into eternity, instead of realizing that life changes over time. One example of this has to do with clients being able to afford higher contributions to an indexed universal life insurance (IUL) policy in the future than what they can afford today.
FOR PRODUCER USE ONLY. NOT FOR USE WITH CLIENTS.
This content is for informational and educational purposes only and is not designed, or intended, to be applicable to any person's individual circumstances. It should not be considered as investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action.