DO THE MATH ON WHAT COMMISSIONS CAN BE ! DO THE MATH ON WHAT COMMISSIONS CAN BE !

Week 1 – You write (2) Funeral Trusts @$10,000 eachWeek 1 – You write (2) Funeral Trusts @$10,000 each Client age – 64 20,000 x 16%= $3,200Client age – 64 20,000 x 16%= $3,200

Week 2 - You Write (1) Funeral Trust @ 15,000Week 2 - You Write (1) Funeral Trust @ 15,000 Client age – 68 15,000 x 14%= $2,100Client age – 68 15,000 x 14%= $2,100

Week 3 - You Write (2) Funeral Trusts @$8000 each Week 3 - You Write (2) Funeral Trusts @$8000 each Client age – 63 16,000 x 16% = $ 2,560Client age – 63 16,000 x 16% = $ 2,560

Week 4 - You Write (1) ESTATE TRUST @$50,000Week 4 - You Write (1) ESTATE TRUST @$50,000 Client age – 65 50,000 x 14% = $ 7,000.00Client age – 65 50,000 x 14% = $ 7,000.00

Total Monthly CommissionTotal Monthly Commission$ 14,860.00 $ 14,860.00

Making an Extra 14k per month is very Making an Extra 14k per month is very realistic, Here is how it is done ! realistic, Here is how it is done !

Karl Dovnik, Jr. – Elder Law Attorney Karl Dovnik, Jr. – Elder Law Attorney These Products…the funeral and These Products…the funeral and estate trusts are perfect to help estate trusts are perfect to help your clients protect funeral funds your clients protect funeral funds and an inheritance for their family and an inheritance for their family by planning in advance.by planning in advance.

This is great planning for all of This is great planning for all of your senior clients. After 28 years your senior clients. After 28 years in practice, these products help in practice, these products help seniors to protect assets if they seniors to protect assets if they were to go into a nursing home.were to go into a nursing home.

You are missing the boat if you You are missing the boat if you are not selling these products.are not selling these products.

Karl Dovnik, Jr.Karl Dovnik, Jr.Elder Law Attorney Elder Law Attorney

Let’s take a Look at the Funeral TrustLet’s take a Look at the Funeral Trust

And How to Sell It.And How to Sell It.

Medicaid Eligibility RulesMedicaid Eligibility RulesSome states may vary on these Medicaid eligibility rules Some states may vary on these Medicaid eligibility rules

Single person Single person

Assets - $ 2000.00 – Assets - $ 2000.00 – May vary from state to May vary from state to state. Next page has state. Next page has all states.all states.

Life Policy - $1500.00Life Policy - $1500.00Car - $ 4500.00Car - $ 4500.00Personal possessionsPersonal possessionsWedding ringsWedding ringsFuneral trust Funeral trust

Income - $ 45.00 Income - $ 45.00

Spousal Impoverishment Spousal Impoverishment Rules for married couples Rules for married couples

Assets - $50,000 – 109,560.00 Assets - $50,000 – 109,560.00 Life Policy - $ 1,500.00Life Policy - $ 1,500.00Car – Unlimited ValueCar – Unlimited ValueHome - $ 500,000 EquityHome - $ 500,000 EquityPersonal PossessionsPersonal PossessionsFuneral Trust for both spousesFuneral Trust for both spouses

Income - $2739.00 Monthly Income - $2739.00 Monthly

*some states may vary on the $1500 life insurance exemption. Let’s take a look at each state on the next slide.*some states may vary on the $1500 life insurance exemption. Let’s take a look at each state on the next slide.

SINCE ONLY $1500.00 IS EXEMPTFOR LIFE INSURANCE…THIS IS AN ISSUE

• Medicaid says only a $1500.00 life insurance policy is exempt.• Any policy over that amount in cash values is a countable asset and would have to be

spent down for Medicaid Eligibility.• Example: $10,000.00 Policy – (Paid Up) 9,850.00 Cash Value• SOLUTION: 1035 Exchange to Funeral Trust. (Tax Free) – Now it is Protected.

Some states may vary on Medicaid Rules, please consult an Elder Law Attorney in your state.Some states may vary on Medicaid Rules, please consult an Elder Law Attorney in your state.

Most Seniors who have Paid Up Life Insurance intend to use it to pay Most Seniors who have Paid Up Life Insurance intend to use it to pay the funeral home when they die.the funeral home when they die.

Many states are facing financial budget deficits and you could find all states going down to the Many states are facing financial budget deficits and you could find all states going down to the $1500 limit. Therefore, the funeral trust makes common sense in all states. This chart subject to $1500 limit. Therefore, the funeral trust makes common sense in all states. This chart subject to change.change.

Look for Look for your your statestate

What is a Funeral Trust ?What is a Funeral Trust ?

Single PremiumSingle PremiumLife policy Life policy

Irrevocable Irrevocable funeral trust funeral trust

Life Insurance Policy is Life Insurance Policy is assigned to Irrevocable assigned to Irrevocable funeral trust funeral trust

•Single Premium LifeSingle Premium Life•Issue ages 0-99Issue ages 0-99•Guaranteed IssueGuaranteed Issue•No underwritingNo underwriting•Commissions up to 16%Commissions up to 16%•Medicaid exempt once Medicaid exempt once assigned to trustassigned to trust•Premiums $1000-Premiums $1000-$15,000$15,000

•Provided by Provided by insurance Companyinsurance Company•Medicaid exemptMedicaid exempt•Not subject to five Not subject to five year look-backyear look-back•Strictly to pay for Strictly to pay for funeral expensesfuneral expenses

The Trust which is managed by the insurance company will pay benefits directly to funeral home that The Trust which is managed by the insurance company will pay benefits directly to funeral home that actually provides the service within 48 hours of receiving claim. Excess funds to estate or family. actually provides the service within 48 hours of receiving claim. Excess funds to estate or family.

1.1.SINGLE PREMIUM LIFE PRODUCTSINGLE PREMIUM LIFE PRODUCT2.2.Premiums from $1000 - $15,000Premiums from $1000 - $15,0003.3.ISSUE AGES 0-99ISSUE AGES 0-994.4.NO UNDERWRITING – GUARANTEED ISSUEDNO UNDERWRITING – GUARANTEED ISSUED5.5.GREAT COMMISSIONSGREAT COMMISSIONS6.6.FUNERAL TRUST PROVIDED BY INS. CO.FUNERAL TRUST PROVIDED BY INS. CO.

1.1.MEDICAID EXEMPT IN MOST STATESMEDICAID EXEMPT IN MOST STATES2.2.1035 EXCHANGES ACCEPTED 1035 EXCHANGES ACCEPTED

GREAT FOR PRE-PLANNING AND CRISIS PLANNINGGREAT FOR PRE-PLANNING AND CRISIS PLANNING

Unity Financial Life Unity Financial Life

• Irrevocable Funeral Trust (IFT) - Funded by a single premium life policy.

• Trust strictly specifies money is to be used for funeral expenses.

• Life Policy grows @2.00% - ages 0-80, 1.00% -ages 81-90 * Not Guaranteed

• At Death, the trust pays the funeral home directly with excess funds being returned to the estate or family.

• Death claim - Agent gathers death certificate/bill from funeral home and fills out claim form for family.

The Irrevocable Funeral TrustThe Irrevocable Funeral Trust

The Easiest Sale You’ll ever makeThe Easiest Sale You’ll ever make

First way to fund a funeral trust.

• 1035 Exchange from Old Life Insurance Policies that have a Face Value of over $1500.00

$5,000$5,000commissioncommission

Big Money doing 1035 Exchanges Big Money doing 1035 Exchanges

The 10% Free Withdrawal To Fund Trust The 10% Free Withdrawal To Fund Trust

Second Second way to way to fund the fund the funeral funeral trust trust

We are just going to move money from your old We are just going to move money from your old annuity to the funeral trust. annuity to the funeral trust. Instant Medicaid ProtectionInstant Medicaid Protection

Third Third way to way to fund the fund the funeral funeral trust trust

CASH CASH

Savings Bonds / StocksSavings Bonds / Stocks

Fourth Fourth way to way to fund fund the the funeral funeral trust trust

Your Biggest Competition

THE FUNERAL HOME

REASONS WHY YOUR CLIENT IS BETTER OFF DOING BUSINESS WITH YOU.The Funeral Home might go out of businessYou might move closer to your children in your old ageThe Funeral Home may merge with new ownersYou might retire down in FloridaOur Funeral Trust doesn’t specify any particular funeral home. This trust can be used with any funeral home at time of death. WE OFFER FLEXIBILITY!

Case Study • Crisis Case – Client is already in an institution.

Example: Age 85 – Female

$75,000 remaining in bank acct.

Two Choices –

Choice #1 - Do Nothing…Spend $ 70,000 on Nursing Home

Choice #2 -Fund Funeral Trust for Mom - $ 15,000

Fund Funeral Trusts for (6) children @ $10,000 each

Qualify for Medicaid immediately

***Most states allow the institutionalized parent to fund BURIAL SPACES for their children, adopted children or spouses of their children. A burial space is the merchandise….Casket and Vault. ***you must have to have a “Goods and Service Contract from a funeral home that matches the amount in funeral trust to be Medicaid Exempt.

***Medicaid laws can vary from state to state and you should consult an elder law attorney in your particular state.

YOU CAN USE APOWER OF ATTORNEYIF CLIENT IS UNABLE

TO SIGN.Medicaid Spend-down – Burial SpacesMedicaid Spend-down – Burial Spaces

FUNERAL COSTS CAN VARY FROM $7000- $12,000

NATIONAL AVERAGE IS $8495.00

Unity Financial LifeUnity Financial Life

One page ApplicationOne page Application

•Issue ages 0-99Issue ages 0-99•Guaranteed issueGuaranteed issue•Trust providedTrust provided•Medicaid exemptMedicaid exempt•$1000 - $ 15,000$1000 - $ 15,000•Simple to ExplainSimple to Explain•Up to 16.50% Up to 16.50% commissions commissions

Growth rate is 2% from ages 0-80, 1% growth Growth rate is 2% from ages 0-80, 1% growth from ages 81-90, and 0% after 90.from ages 81-90, and 0% after 90.

NO Health Questions and no reduction in NO Health Questions and no reduction in commissions for poor health as other commissions for poor health as other companies do.companies do.

PACKAGE YOUR PRODUCTS PACKAGE YOUR PRODUCTS

FUNERAL TRUST FUNERAL TRUST FOR FOR

IRENE SMITH IRENE SMITH

ABC FINANCIAL SERVICES, INC.ABC FINANCIAL SERVICES, INC.123 MAIN STREET123 MAIN STREET

ANYTOWN, USA 00000ANYTOWN, USA 00000800-000-0000800-000-0000

PLANNER – TOM JONES PLANNER – TOM JONES

Existing ClientsExisting ClientsYou already have relationship You already have relationship

Do an Annual Review with Each of your customers. The best Do an Annual Review with Each of your customers. The best target age is from 60-90. target age is from 60-90. •Help Your clients up date their accounts at bank with P.O.D.Help Your clients up date their accounts at bank with P.O.D.•Review their estate planning and financial documentsReview their estate planning and financial documents•CD holders that have CD’s coming due.CD holders that have CD’s coming due.•Passbook Savings customersPassbook Savings customers•SELL THE FUNERAL TRUST CONCEPT TO THEM.SELL THE FUNERAL TRUST CONCEPT TO THEM.

Annual Review Letter Annual Review Letter

The Funeral Trust Business is a natural with The Funeral Trust Business is a natural with my existing senior clients.my existing senior clients.

The Trust Business has The Trust Business has added an extra 10K or more to added an extra 10K or more to

my income monthly! my income monthly!

I Sent the Annual Review I Sent the Annual Review letter to my 1100 clients letter to my 1100 clients which created more which created more activity in my office than I activity in my office than I have had for years.have had for years.

93% of my clients did not 93% of my clients did not have long term care have long term care insurance and they insurance and they needed these products. needed these products.