cmg success conference focus, drive, connect eric lopez, clu,chfc, flmi vp, key accounts and...
TRANSCRIPT
CMG Success ConferenceFocus, Drive, Connect
Eric Lopez, CLU ,ChFC, FLMI
VP, Key Accounts and Multicultural Markets
Daniel Ulloa
Key Account Representative
The Average Consumer Cannot Afford the Individual Policy Approach.
$$$ / Month
LifeLTC
Is there another alternative?
For Agent Use Only. Not for use with the Public.
Benefits may not be mutually exclusive. Using one benefit may reduce or eliminate another.
AcceleratedLiving
Benefits
Cash ValueAccumulation
LIBR
Death Benefit
Protection
=
Permanent Life Insurance
For Agent Use Only. Not for use with the Public.
Permanent Life Insurance Features and Riders Provide
One Solution for Multiple Risks
Benefits may not be mutually exclusive. Using one benefit may reduce or eliminate another.
AcceleratedLiving
Benefits
Death Benefit
Protection
=
Term Life Insurance
For Agent Use Only. Not for use with the Public.
Term Life Insurance Features and Riders Provide One Solution for Multiple Risks
We Don’t Just Talk About ABRs
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011
Total Number of Claims Paid
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
2007 2008 2009 2010 2011
Total Amount of Claims Paid
Our ABR Experience
The above reflects the total combined number of claims, and amounts paid, by National Life Insurance Company and Life Insurance Company of Southwest under the ABR riders: Terminal, Chronic and Critical
Underwriting Program – No Routine Medical
Testing • Face Amount must be $250,000 or less
• Client must be age 65 or younger
• Applies to base policy insured and OIRs
• Faster processing 4 – 7 days
• Standard at best
• No option to be underwritten for Preferred
Rate Class Available • Verified Standard NT• Express Standard NT
• Standard TobaccoAll substandard risk classes are available
This is not a guaranteed issue program. The company reserves the right to require additional requirements as deemed necessary.
For Agent Use Only – Not For Use With The Public
Headwinds
The Power of Indexing
History of Federal Individual IncomeTop Marginal Tax Rates
Source: truthandpolitics.org, referencing IRS Statistics of Income Bulletin Pub 1136
Clients can supplement their retirement with an income stream that they cannot outlive!*
Lifetime Income Benefit Rider™
*Certain conditions must be met to exercise the rider. The Lifetime Income Benefit Rider provides a benefit for the life of the insured if certain conditions are met, including but not limited to the insured’s attained age being between 60 and 85, and that the policy has been inforce for at least 15 years. Insufficient policy values, outstanding policy loans and other considerations may also restrict the rider. Exercising the rider and receiving an income benefit will reduce the policy’s cash and death benefit and may terminate other riders or reduce their benefits.
For Agent Use Only - Not To Be Used With The Public
National Life Insurance Company® | Life Insurance Company of the Southwest™
How It Works
1Assumes Non-MEC Policy
For Agent Use Only - Not To Be Used With The Public
National Life Insurance Company® | Life Insurance Company of the Southwest™
Thank You - American Taxpayer Relief Act of 2012!
TAX rates went up!
So did the interest in tax reduction strategies:Qualified Plan Life & Annuity Section 79 Premium Finance
Section 79 Plans, qualified plans and premium financing are offered and administered independently of the companies of National Life Group, National Life is bound only by the terms of the life insurance contracts issued by the Group insurance companies.
The Companies of National Life Group® and their representatives do not offer tax or legal advice. Please encourage your clients to seek tax or legal advice from their appropriate professional advisor.
Advanced Markets
Advanced Markets
Working with advanced markets is easier than ever!
Catch the momentum & supercharge your 2014 business!
Estimated 2013 Premium$ 4.4 Million Qualified Plan Life $ 7.1 Million Qualified Plan Annuity $10.2 Million Section 79 $ 6.0 Million Premium Finance
= Commissions
Section 79 PlanswithSecurePlus Advantage 79
TAX-ADVANTAGED LIFE
INSURANCE FOR BUSINESS
OWNERS AND EMPLOYEES
This information is not intended as tax or legal advice. Please consult with your attorney and accountant
prior to acting on any of this information.
National Life Group ® is a trade name representing various affiliates that offer a variety of financial services
products.
What Is Section 79
• Code section that allows an ER to offer group life insurance to EE’s
– Section 79 is not just group term insurance
– Regulation says the plan may provide permanent benefits
– With a specially designed permanent policy, the Employee can usually exclude about 35-40% of premium from taxable income
Life Insurance is the only way to fund a Section 79 Plan
For Agent Use Only - Not For Use With The Public
Insurance Options
• Option 1: $50,000 group term death benefit– Premium is deductible to ER– Not taxable as income to EE
• Option 2: Group term death benefit > $50,000– Premium is deductible to ER – EE taxed at Table I (government) rates
• Option 3: Cash value life insurance – Premium is deductible to ER– Premium only partially includible in EE’s income
• About 35-40% of premium excluded from taxable income• Only a specially designed policy will provide full tax benefits
For Agent Use Only – Not For Use With The Public
Benefits for Business Owner
• Death Benefit can be used for
– Family survivor needs
– Estate tax strategies
• Can provide tax benefits
– For Company and owner-employees
• Attract & retain employees
• Policy cash value can provide additional retirement asset accumulation
Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event.
For Agent Use Only – Not For Use With The Public
Benefits for Employee
• ER provided life insurance protection
– Family survivor needs
– Tax benefits
• Policy cash value can provide additional retirement asset accumulation
• Permanent policy completely portable
– EE owns policy, names beneficiary
For Agent Use Only – Not For Use With The Public
SIUL - One Policy vs. Two
Value isn’t always measured in Dollars and Cents
Niche Markets
• Business Owners
– Section 79
– Kai-Zen
– Buy Sell using SIUL
– Profit Sharing Plans
– Captives
– 412(e)(3)
• Individual Planning
– Tax Free Retirement
– Premium Finance
– Estate Planning
– Mortgage Protection
– Death Benefit Protection
For Agent Use Only – Not For Use With The PublicTC#77584(1213)1