SMART MONEY[Webinar]
The Missed Opportunities in Your Existing Client Book
The ProblemEverybody wants some money in "safe dollar world""Safe dollar" options are low-yield and inefficient from tax standpoint
Low-Risk Investment Yields
The AlternativesT-Bonds
3-yr = 0.85%
5-yr = 1.34% 10-yr = 1.92%
Low-Risk Investment Yields
CDs
3-yr = 1.50%
5-yr = 2.20%
Money Market
1.00%
The SolutionReposition low-yield money
Earn a higher return
Retain low risk
Tax-deferred growth
Access to capital
Add valuable life and LTC benefits.
The ValueNo/Low surrender charge Strong tax-deferred growth over timeImmediate death benefit Chronic illness rider Critical illness rider
Who is the Ideal Prospect?Under age 75, table 3 or betterHas at least 100K in low-yield
investments Has a separate emergency fund
3-yr chargeback schedule – 100/75/25%
Has a need for Life and LTC insuranceBusiness Owners!
How Does It Work?12.5% cap, 0% floor, 100% par (S&P annual
PTP)
3% guaranteed minimum interest rate
0.75% guaranteed persistency bonus years 16+
Waiver of Surrender Charges Rider
Chronic Illness Rider
Critical Illness Rider
Zero percent premium load
North American Rapid Builder IUL
How Does It Work?50 yo male $250K Single Premium
Initial DB = $720K, Increasing DB
Year 1 Guaranteed Surrender = $253,022
Year 1 Surrender at 7% = $264,708
Year 20 Surrender at 7% = $780,545
Year 20 Surrender at 5% = $531,199
North American Rapid Builder IUL
How Does It Work?
Simplified underwriting
2% guaranteed min. interest rate (4.45% currently)
1% Surrender Charge
Very low-cost contract
MetLife PAUL
How Does It Work?50 yo male $250K Single Premium
Initial DB = $733K, Increasing DB
Year 1 Guaranteed Surrender = $242,506
Year 1 Surrender at 4.45% = $249,804
Year 20 Surrender at 4.45% = $489,676
MetLife PAUL
What's the Catch?North American - 3yr limited access to
cash
North American - full medical underwriting
North American - growth is linked to stocks
MetLife - lower potential returns
Client should have need for life insurance
Start the Conversation
Start with educational approachGive bite-sized explanation of
conceptTell a compelling "why-based"
storyCast a vision for the future valueAsk questions - LISTEN
How top advisors introduce this concept
A Simple Question
Tax-deferred return around 4-6%Immediate DB from 2-5x initial
depositRiders to cover LTC needsImmediate access to 99% +
initial deposit
Would you like to replace your CD?