Integrated Financial Consulting & How Life Insurance Plays a Role

By: Paul Thomas Croft

THREE QUESTIONS FROM OUR LAST MEETING…

1) WHAT IS THE DIFFERENCE BETWEEN A DREAM & A GOAL?

2) IF LIFE INSURANCE WHERE FREE, HOW MUCH WOULD YOU LIKE?

3) HAS ANYONE EVER EXPLAINED THE TAX ADVANTAGES, FLEXIBILITY, AND ACCUMULATIONS OF LIFE INSURANCE TO YOU?

WWW.CROFTENTERPRISESLLC.COM

OUR TEAM

1- ERIN C. ROPES, GENERAL MANAGER

2- JEFFREY P. JENSEN, FINANCIAL CONSULTANT (OUTSIDE SALES)

3- SARAH KUEBLER, ADMINISTRATIVE ASSISTANT

4- LONG YAJ, ASSOCIATE FINANCIAL CONSULTANT/ INTERN

5- PAUL THOMAS CROFT, PRINCIPAL

TOPICS I WILL COVER:

1) LIFE INSURANCE ON YOUR CHILDREN, OR GRAND CHILDREN. THE GIFT OF A LIFETIME!

2) BUY/ SELL COVERAGE AND FUNDING IT WITH LIFE INSURANCE.

3) KEY PERSON LIFE INSURANCE, AND THE 3R’S.

4) LONG TERM DISABILITY INSURANCE, AND SOME THOUGHT PROVOKING QUESTIONS.

PAUL, “HOW CAN I GET YOU IN THE DOOR?”

LIFE INSURANCE ON YOUR CHILDREN, OR GRAND CHILDREN.

A GIFT OF A LIFETIME!

4 TYPES OF PROGRAMS/ PLANS FOR EDUCATIONAL PLANNING, THAT I AM AWARE OF:

1- 529 PLANS

2- UTMA/ UGMA ACCOUNTS

3- COVERDALE OR ESA ACCOUNTS

4- PERMANENT LIFE INSURANCE

PERMANENT LIFE INSURANCE ON CHILDREN, OR GRAND CHILDREN.

4 THINGS TO KNOW WHEN SETTING UP THESE ACCOUNTS:

1- INSURED ?

2- BENEFICIARY ?

3- OWNER ? **(TRUMP CARD)

4- PAYOR ?

**EXAMPLE…

LIFE INSURANCE USED WHEN FUNDING A BUY/ SELL AGREEMENT

TWO TYPES OF AGREEMENTS:

1- ENTITY PURCHASE.

2- CROSS PURCHASE.

CROSS PURCHASE EXAMPLE:

*ON 2 OWNERS, BEST STRATEGY.

ENTITY PURCHASE EXAMPLE:

*ON MULTIPLE OWNERS… MORE THAN 2, BEST STRATEGY.

SOLUTION:

SOLUTION:

KEY PERSON LIFE INSURANCE, AND THE 3 R’S

KEY PERSON INSURANCE, ALSO COMMONLY CALLED KEY MAN INSURANCE AND KEY MAN INSURANCE, IS AN IMPORTANT FORM OF BUSINESS INSURANCE. THERE IS NO LEGAL DEFINITION FOR "KEY PERSON INSURANCE.” IN GENERAL, IT CAN BE DESCRIBED AS AN INSURANCE POLICY TAKEN OUT BY A BUSINESS TO COMPENSATE THAT BUSINESS FOR FINANCIAL LOSSES THAT WOULD ARISE FROM THE DEATH OR EXTENDED INCAPACITY OF THE MEMBER OF THE BUSINESS SPECIFIED ON THE POLICY.

THE 3 R’S (PAUL’S DEFINITION):

1- RECRUITING.2- RETAINING.3- REWARDING.

SOLUTION:

DISABILITY INCOME INSURANCE, AND SOME THOUGHT PROVOKING QUESTIONS:

1- JOB A VS. JOB B?A- NO LTD THROUGH WORK, BUT $5,000 PER MONTH OF GROSS INCOME.B- $2,500 PER MONTH OF LTD THROUGH WORK, BUT $4,800 PER MONTH OF GROSS INCOME.

2- WHAT WOULD HAPPEN TO YOU IF YOU WERE TO BECOME SICK, INJURED, IN A CAR ACCIDENT, OR UNABLE TO WORK? WOULD IT HAVE AN IMPACT ON YOU, HOW ABOUT YOUR FAMILY?**QUICK STORY…

3- WHAT DOES YOUR PROGRAM LOOK LIKE?**COMPLEMENTARY REVIEW**

4- HERE IS MY PROGRAM:A- 4 (DI) POLICIES SET UP:B- ILLINOIS MUTUAL, LTD- $1,500 PER MONTH.C- ILLINOIS MUTUAL, DOE (BOE)- $1,500 PER MONTH.~ ($11.04 PER MONTH).

D- GUARDIAN, LTD- $1,250 PER MONTH.E- GUARDIAN, DOE (BOE)- $4,000 PER MONTH.

**TOTAL PER MONTH = $8,250 PER MONTH OF COVERAGE, INCOME TAX FREE.~ $147 PER MONTH.

5- WHAT IS IMPORTANT TO YOU?

QUESTIONS ?

THANK YOU FOR YOUR TIME!