Friday, November 29, 2013

The Advanced Insurance Sales Series - LTC: To Insure or Self Insure

It's seems so counter intuitive that for most retirement models, paying for long term care insurance would reduce the overall income for seniors as well as asset transfer to the next generation. But now that human longevity has become the number one risk in retirement, the odds are almost certain that baby boomer seniors will use policy benefits for assisted living at home. Steve and Bob do the math and let the chips fall where they may in their expose' on the need for long term care.

Thursday, November 28, 2013

The Advanced Insurance Sales Series - IRAs, IRA Conversions & Roth IRAs

Traditional IRA conversions to Roth IRAs have slowed in recent years until consumers became aware of the taxation of their Social Security benefits. Steve and Bob explore the delay of Social Security and qualified plans until age 70 and weigh the economic benefit over retirement in converting traditional IRAs to Roth IRAs.

Wednesday, November 27, 2013

The Advanced Insurance Sales Series - Good Logic or Bad Logic

Bob's trademark mantra is the three staging items of ultimate income: accumulation, distribution and the sequential asset prioritization. Sequential asset prioritization can be so significant to a senior's retirement that it is now standard training in Wealthy and Wise boot camps. Steve and Bob dramatize the financial impact of income and wealth transfer to the next generation.

Tuesday, November 26, 2013

The Advanced Insurance Sales Series - Executive Bonus Plan

Section 162 Executive Bonus Plans have been around for decades. Steve and Bob walk you through seven iterations of this strategy and discuss ING's early policy loan access to pay the taxes due for the executive. The economic leverage can be significant for clients who understand market risk.

Monday, November 25, 2013

The Advanced Insurance Sales Series - Retirement Product Options

Steve interviews Bob Ritter, the architect of InsMark & Wealthy and Wise, the most popular advanced insurance sales software in country. Steve and Bob walk through taxable accounts versus tax advantaged life insurance and answer the age old question, "Should I buy term and invest the difference?" The answer is in the mathematics.

Friday, November 22, 2013

Multi Life & Executive Long Term Care - Insurance Portability of LTC

Most employees are not going to work forever. There will come a day when they retire, and having a long term care policy from a Multi Life benefit program allows portability when they retire. Some true group plans are not portable. Portability is a significant advantage for departing employees who enter retirement with existing coverage. Steve and Maria espouse the advantages of policy portability of Multi Life group plans.

Thursday, November 21, 2013

Multi Life & Executive Long Term Care - Underwriting Multi Life LTC

There is such a difference in the underwriting assessment between mortality and morbidity products, especially with long term care. Add to that multiple lives on a census spreadsheet that can direct the insurance professional to underwriting approach; such as, modified guaranteed issue, simplified issue and full underwriting. Steve and Maria discuss the census, participant requirements and the enrollment options for LTC in a corporate environment.

Wednesday, November 20, 2013

Multi Life & Executive Long Term Care - Benefits & Tax Advantages of LTC

The business structure can play a significant role in the tax incentives and benefits of offering long term care to their employees. The most significant of which is a C corporation. It's important to note that skillfully drawn up contributory arrangements can provide a written record to substantiate deductions and outline the shared cost between the employer and the employee. Steve and Maria touch on a variety of arrangement applications to define the benefits and tax items with Multi Life LTC polices.

Tuesday, November 19, 2013

Multi Life & Executive Long Term Care - Benefits & Structure of LTC

Long term care insurance has four basic building blocks that comprise the benefits in customized policy: Benefit Amount, Benefit Period, Waiting Period and Inflation or CPI riders. Most employers use pre-determined plan designs, generally representing three benefit levels. Some employees buy additional benefits called "buying up." Steve and Maria walk through the benefits and structures of Multi Life LTC polices in business scenarios.

Monday, November 18, 2013

Multi Life & Executive Long Term Care - LTC in the Business Market

A new trend among small business is to go after seasoned workers with experience. The baby boomer executive is in high demand. Head hunters suggest that boomers are driven by benefits. And one of those key benefits is long term care insurance. Employers who are seeking to recruit and retain impact employees are using long term care as a company benefit distinctive. Steve and Maria discuss the statistics that suggest that 70% of seniors will need extended care in their golden years.

Friday, November 15, 2013

LTC Linked Products - Accessing LTC Benefits

Accessing your benefits can be based on your elimination period, your activities of daily living and whether you're using a calendar or service days policy provision. Severe cognitive impairment can also impact access to benefits. Most plans are now reimbursement rather than indemnification. Steve and Bradley go down the laundry list of items to help you understand how to access your extended care benefits.

Thursday, November 14, 2013

LTC Linked Products - Value of Annuities under Pension Protection Act

Retirement planning with annuities is part of the larger retirement planning model. But now they've been enhanced with income riders and LTC linked benefits. The combination of the two policy provisions working together with the Pension Protection Act can be significant in extended care planning inside a retirement plan. Steve and Bradley address the multiple uses of the PPA and annuity LTC linked products.

Wednesday, November 13, 2013

LTC Linked Products - Understanding LTC as an Asset

The tax advantages and economic leverage of linked benefits is now being perceived as an asset, or more accurately, an asset hedge. The liquidity features are a significant consumer component of the purchase, as are some of the contractual guarantees in these polices. And some of these products have a death benefit that can protect your premiums paid into the policy in the event of premature death. Steve and Bradley escort you through the basic understanding of linked cash value products and their value in a retirement plan.

Tuesday, November 12, 2013

LTC Linked Products - The Evolution of Products

The number one financial item with linked benefits is the so called "use it or lose it" sales pitch. It certainly mitigates the exposure to extended care costs, but LTC expense loads are still being paid. With that understanding Steve and Bradley discuss the funding options and focus on the economy of scale using linked benefits.

Monday, November 11, 2013

LTC Linked Products - Intro to LTC Linked Products

Are linked benefits the missing link in retirement planning? Many advisers are waking up to the economic leverage and tax advantages of linked cash value products. Surprisingly, high net worth clients are trending towards linked benefits as an asset play or hedge to their retirement portfolio. Steve and Bradley introduce you to the linked cash value benefits in order to lay a foundation for those in the retirement planning market.

Friday, November 8, 2013

Individual LTC - Engaging Long Term Care Discussions

Once you understand the value proposition of long term care, then it's a matter of designing the premium to fit the cash flow of your budget. There may also be tax incentives available to offset the cost of the premiums as well. Steve and Maria conclude the week with some talking points for advisers entering into the senior market place via long term care.

Thursday, November 7, 2013

Individual LTC - Long Term Care Plan Design

There are four basic design components to constructing a policy around your specific needs: The Benefit Amount, the Benefit Period, the Waiting Period and Inflation or CPI rider selection. Preforming a financial profile will assist the prospect in determining the policy structure best suited for their economic condition. Steve and Maria spend some time on the inflation aspects of selecting the right rate and type, i.e. simple or compound.

Wednesday, November 6, 2013

Individual LTC - Underwriting Long Term Care

Morbidity underwriting is not the same as mortality underwriting, and long term care really shows the stark difference in preparing or packaging a case. The basic classifications are limited to three underwriting categories: Preferred, Standard and Substandard. Most long term care advisers illustrate standard because of the statistical odds of a standard offer. Steve and Maria talk about some of the prescreening techniques that help advisers perform a bit of field underwriting to pre-qualify a prospect.

Tuesday, November 5, 2013

Individual LTC - Long Term Care Claims

A long term care policy is only as good as the contractual language behind the benefits. The events leading up to a claim are defined by the activities of daily living, the waiting period of the policy and the location of care, i.e. assisted home living or nursing home confinement. Steve and Maria address comprehensive, indemnification and reimbursement plans to help frame the basis of future care claims.

Monday, November 4, 2013

Individual LTC - Introduction to Long Term Care

The demographic data is overwhelming as Steve and Maria discuss the increased odds of a long term care event for most seniors during retirement. The stats, the facts and the impact of the graying of America are truly astounding. 39 million Americans are over the age of 65. 10,000 baby boomers are retiring every day and that trend is expected to last for the next 19 years. By 2030, 20% of the U.S. population will be over age 65. 70% of those Americans will have an extended care event.

About Steve Savant

Steve Savant

As the National Marketing Spokesperson for Ash Brokerage, Steve Savant looks forward to meeting financial professionals in every way possible - in person or by video through conferences and social media.

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