Limited Time!! CARES Act Sales Opportunity

Bruce Beaty, RICP, VP Asset Business Consultant


It’s interesting how Life Insurance has evolved into a “multi-tool”.  Most of what we see this month is focused around the most well-known feature of life insurance, which is the death benefit.  However, we have seen life insurance used in a plethora of other applications. Deferred compensation, tax-free retirement, an alternative solution to traditional long-term care, a college funding vehicle, a get-out-of-debt strategy, a store of value, and a creditor protected safe haven.  We have seen uses that allow it to act as a proxy for disability and a wealth transfer vehicle.  We see parents pay premium on kids’ policies and the other way around.  Corporations buy it, business partners buy it, and banks buy it too. We used to even see strangers owning life policies on others.  We see banks lending the premium and companies being the beneficiaries.  So not to beat a dead horse but….

Life insurance is very flexible and can be used to fulfill many visions and goals.  Today we have a new option available designed to help clients get through tough times.  The Cares Act allows our pre-59 ½ clients to pull money out of an IRA or other qualified account and forego the pre-59 ½ ten percent penalty (excise tax). They can also spread the tax impact over three years (or pay it back).  This reminds me of when we could do a Roth Conversion and spread the taxes over three years.  I’ll bet many who didn’t take advantage of that opportunity wish they would have. 

The article, “Have You Opened your Gift from the CARES Act Yet,” by producer, Jay Beattey, explores a new resource that may be available to your clients for a limited time only.  Perhaps it’s time to rectify an overfunded 401(k) situation for your clients, to create a tax-free bucket, and/or to create leveraged death and living benefits?  Looking for a source of funding for a Kai-zen?  This may be your solution.  Ed Slott is calling Life Insurance the new Stretch IRA.  Maybe it time to explore the full range of diverse applications  that the “multi-tool”, known as life insurance, offers, and also time to check out the power of de-funding the over funded 401(k).  You have until 12/31/2020 so don’t wait!  Make sure you explore the Asset Exclusive Planning Compass to assist in comparing your options, or give our knowledgeable life team a call to discuss options and case design for your clients (888-303-8755 x2160). 

Overcoming the Fear of Commitment

Bruce Beaty, VP Business Consultant


Pandemics aside, getting a commitment to move ahead with product solutions can be difficult, especially when that action involves surrender charge periods or longer timeframe planning commitments, which in some cases can be up to fifteen years.  Throw in a swine flu, COVID, or bubonic plague, and the prospects have yet one more smoke screen that gets in the way of accomplishing their long-term objectives. 

While many will use money markets or even an AUM approach to optimizing liquidity for life’s “what ifs”, that approach can often leave certain boxes unchecked for our end user clients.  Examples could include no guaranteed lifetime income, no living benefits for health triggered expenses, no tax-free benefits, lack of safety, lack of leverage, lack of crackers (time to get crack a lackin’).  You get the idea!

So what to do?  It’s times like these when I’m reminded of the resilience and innovation of our industry.  Today’s environment is screaming for a solution that already exists.  It’s called a return of premium rider.

Katie Hsieh, product specialist extraordinaire at Asset, shared with me that EquiTrust offers great product solutions for both life and annuity cases that feature ROP riders on each side of the fence.  So which one should you use?  Why not both?  You might as well hit a home run with clients and address solutions for both their “live on money” and their “leave on money”… the two financial brothers that always compete against each other.  Help your clients overcome that fear of commitment and put some checkmarks in boxes that will accomplish their objectives TODAY. 

We’ve attached illustrations for both solutions and our team would be happy to prepare a custom illustration that addresses any state specific variations.   Make sure to call for assistance with your next case design.  We look forward to the opportunity of collaborating with you!

Links:

EquiTrust WealthMax Bonus Agent Guide

EquiTrust WealthMax Bonus Client Brochure

EquiTrust WealthMax Bonus $200K – 65 Female

EquiTrust MarketTen Bonus Agent Guide

EquiTrust MarketTen Bonus Client Brochure

EquiTrust MarketTen Bonus $200K – 65 Female