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Thoughts While Rambling Down The Road
By Jonathan A. Shaw, CLU, ChFC  If you were unable to attend our recent John Hancock CE class, you really missed a good one. Kristin O. Bulat JD, LLM, an advanced underwriting attorney at John Hancock, shared with us some great sales strategies for Estate Planning.
If you need advice on large estate planning cases call us and we can get Kristin or one of John Hancock's other great advanced underwriting attorneys on the phone. They can help you come up with the best solution for your large case.
Ms. Bulat talked about 4 great ways to move huge amounts of your client's estate through to the next generation and avoid estate taxes, some that enable your client to retain an element of control, which is always an issue with your wealthier clients. You may be familiar with these concepts but in the changing world in which we live, new tax laws could have changed how the concepts are applied. So, if you have a larger case, often one of the following techniques can be used to satisfy your client's estate tax planning:
- Family Limited Partnerships
- Private Split Dollar
- Private Premium Finance
- Grantor Retained Annuity Trust
Last year John Hancock wrote more permanent life insurance than any other carrier due to the extremely competitive nature of their products. In addition, it's hard to come by better name recognition and financial strength. John Hancock has a Comdex rating of 96!
John Hancock are also experts on underwriting older age clients. It is remarkable that their average case was written on a 73 year old with a face amount of $1,400,000. In other words, their average permanent premium was $34,000. John Hancock's underwriting strategy truly rewards clients who have attained wealth and success by giving "high touch" underwriting decisions to wealthy clientele.
Some examples of a few of the great cases we have gotten approved lately:
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73 Year Old Female, Interductal Carcinoma 6 Months Ago, Breast Cancer
Issued Standard $3,000,000 With A $72,000 Target Premium
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78 Year Old Female/76 Year Old Male, Female Had Breast Cancer 4 years Ago and Angioplasty 2 Years Ago. The Male had Heart Disease and Stroke 6 Years Ago.
Issue Standard on The Female and Standard on The Male For $4,000,000 With A $168,000 Target Premium
I know there is a tendency to overlook or walk away from our older age clients. However, John Hancock realizes we are living longer than ever now, particularly the clients who maintain a healthy and "Wealthy" lifestyle. We have been very successful in writing many clients' multi-million dollar policies up into their 80's. Don't be bashful, give every case a try!
John Hancock does not spreadsheet as the cheapest premium, but they can make up for it with their aggressive underwriting. Given their name recognition and branding, along with their 100 year old history and 96 Comdex rating, there is not another company out there that can compete with them at the older age market. Of course with SHAW AMERICAN'S record of placing these large cases with John Hancock, you may be surprised how many underwriting favors we got worked at the home office! You won't be disappointed with our compensation either. We know that often these are "career cases" and you deserve the highest compensation, especially on these cases! (Did you know that our payouts are higher than going direct to the carrier.... Go Figure? Call Us!)
My last tip for success is to "turn off your A.M. Radio and tune in to the John Hancock Radio podcast". This month there is a great podcast on litigation regarding STOLI. Another excellent podcast is available about a very interesting court case involving the creation of a wetlands conservatory next to an old, reknown golf course. Did the client's maintain a $30 million deduction in this case? You will have to tune in and find out!
Lastly, don't forget about our 1035 Rollover Campaign! There is still plenty of time to get cases submitted to qualify for a great Caribbean Cruise! | |
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Shaw American Puts Our Customer Service In High Gear!!
Now you can submit applications with Banner, Genworth, Prudential and ING electronically! All you need to do is get this one page Shaw American App Assist Form completed and fax or email it back to Leeann Dever at Shaw American. No need to visit the client for signatures! No more missing forms or unanswered questions! A Shaw American Representative will call your client on your behalf and complete the application over the phone for electronic submission. Shaw American will ensure that all forms will be completed and all questions are answered in full detail.
Doing business
with Shaw American just got even easier! |
Shaw American's
Great Lineup of Life Companies:
American General
A.M. Best A/S&P A+ American National
A.M. Best A/S&P AA- Aviva Life
A.M. Best A/S&P AA- AXA Equitable
A.M. Best A/S&P A-
Banner Life
A.M. Best A+/S&P AA- Genworth
A.M. Best A/S&P A ING Life
A.M. Best A/S&P A+
John Hancock
A.M. Best A/S&P AA+
Lincoln Benefit
A.M. Best A+/S&P AA-
Lincoln Financial
A.M.Best A+/S&P AA-
Metlife Investors
A.M. Best A+/S&P AA-
Nationwide
A.M. Best A+/S&P A+
North American
A.M. Best A+/S&P A+
New York Life
A.M Best A+/S&P A+
Prudential
A.M.Best A+/S&P AA-
SBLI (Savings Bank Life Of Mass)
A.M. Best A+/S&P NR
Transamerica
A.M.Best A/S&P AA-
SunLife Of Canada
A.M. Best A+/S&P AA
United of Omaha
A.M. Best A+/S&P AA-
West Coast Life
A.M. Best A+/S&P AA- |
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Only 2 Months Left To Qualify For Great Awards!
Qualifications Based On 1035 Rollover or Lump Sum Cases.
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Long Term Care Insurance Option
Traditional deferred annuities have shown lapse rates as high as 40% to 70%, but the lapse rates on LTCI/Annuity hybrid products could shrink to as low as one to two percent*-a rate more closely associated with LTCI policies themselves. Since Baby Boomer's are well aware that LTCI costs increase with age, while the chances of clearing underwriting goes down, that makes it more difficult to give up these products.
By attaching Long Term Care (LTCI) riders to Deferred Annuities, you can save the day and solve three chronic conditions: the high cost of stand-alone LTCI products, the high surrender rate charges of some deferred annuity contracts and the aging populations' fear of exponentially growing nursing home costs.
The Pension Protection Act of 2006 included a provision stating that as of January 1, 2010, payouts from non-qualified LTCI/Annuity hybrids can be distributed tax-free when used to pay long-term medical expenses. Significantly, the law allows for the 1035 transfers into these products from EXISTING non-qualified annuities, enough to convince producers and annuity owners to move hundreds of billions of dollars from old contracts into hybrid contracts in the coming years.
While few insurance companies have issued these hybrids to date, industry analysts expect numbers to grow during 2010. Shaw American already has a number of products available to quote. Call Debbie Shaw at 502-583-5527 or 1-800-626-5888 for details.
*Source: July 2009 research report, "Annuity and Long-Term Care Insurance Combination Products," from analysts Carl Friedrich and Sue Saip at Milliman, the Seattle-based global consulting firm. |
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Top 25 Program From Transamerica
The Transamerica Opportunity Program (TOP 25) from Transamerica Life Insurance Company offers qualifying clients an easier way to increase or extend their existing term life coverage with a Trendsetter Super 25 with accelerated underwriting and no medical exam.
Under TOP 25, the initial underwriting requirements for qualifying individual Trendsetter Super 25 cases will be modified. The program is not guaranteed issue. Additional evidence of insurability will be requested if the Underwriter determines it's necessary.
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Prudential Increases Term Essential Rates! Changes Also Announced For Term Elite and ROP Term Products
Prudential has made price changes to several products in their portfolio. All states have approved the Term Essential changes, the product most brokers present, while a few are still in the process of approving the Term Elite and ROP changes. The new rates went into effect as of October 1st, 2009.
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Banner Reduces Term Rates! Effective October 26, 2009, Banner reduced their term rates on OPTerm 10, 15, 20 and 30 year plans.
Click for Transition Rules |
Introducing GenGuard UL
and GenGuard UL NY Genworth just announced the new Death Guarantee universal Life (UL) insurance products, GenGuard UL and GenGuard UL NY.
The competitive portfolio includes:
- GenGuard SUL, survivorship universal life insurance
- LifeReady UL II, current assumption UL product
- Lifetime Protector SG II, conversion product.
As of September 28, GenGuard UL and GenGuard UL NY replace LifetimeFlex Plus II and Lifetime FlexPlus II NY. The new products' death benefit guarantees will continue to allow coverage to be guaranteed to age 121, but death-benefit guarantee premiums are competitive at ages 105 and younger. GenGuard UL retains other compelling features, including:
- Competitive premiums in all pay scenarios
- Attractive target premiums
- One of the best cash value stories in the industry
Request a New GenGuard UL Quote Today! |
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Lincoln Benefit Life Announces Changes To Term Rates!
Lincoln Benefit has announced that they are repricing the TrueTerm product effective October 12, 2009. Rates for most underwriting classes will be increasing, some will have no change and some will even have a rate decrease.
The repricing of Lincoln Benefit Life's TrueTerm will be available in all states except Indiana, Mississippi, New York, Oregon and Washington. |
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John Hancock Taking A Big Leap Forward In Service John Hancock is committed to making the application process as easy as possible for you and your clients. With that in mind, we are simplifying the process by requiring significantly fewer telephone interviews and eliminating third-party verifications for life insurance applicants.
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What would you say if we told you there is a company that would consider your client Preferred when government standards dictate that he/she is by their definition obese? What if we told you it is an A+ company and one of the largest UL and term outfits out there? Well it exists!
Recently Lincoln Financial Group has rolled out their BMI (body mass index) chart for underwriting. The BMI is a height/weight chart that calculates, or estimates, the body fat percentage according to the average individual. Although it is sometimes
not as accurate in athletes and the elderly it is a commonly used scale to determine the health risk for an individuals height and weight ratio.
Lincoln Financial Group (LFG) has determined that their guidelines will allow for individuals who meet all criteria for Preferred and Preferred Best that their Body Mass Index can be higher than the governments level for clinically obese (30). At a BMI of 31, meeting all other criteria for preferred at 6'0 235 lb individual can obtain preferred rates. At a BMI of 29 Preferred Best is possible.
Remember the next time your client is rated or given a class less than requested for build alone, check his/her BMI. Lower than 33 and you may have the client that LFG will consider preferred even if he/she has a little extra junk in the trunk. |
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Meet: Kevin D. Early  Senior Case Manager
Kevin uses his 13 years of experience at Shaw American by applying his knowledge of medicine to ensure our clients get the best possible underwriting decisions. His on-going relationships with many of our underwriters and service providers allows him to negotiate the system to get what he needs. Kevin loves researching medical conditions and with this thirst for knowledge he can often figure ways to present a situation to ensure the best understanding from an underwriter. He has had the luxury of working many large cases and has acquired the knowledge to not only push a case in the right direction but to financially prove the face amounts to be justified.
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