Life Insurance
ISN Network – Policy Analysis and Review (PAR)
PAR is ISN’s marketing strategy that offers its associates the resources means to review and analyze universal life insurance policies purchased by your clients. Lower mortality costs, competitive crediting rates, and new guarantees all create new opportunities for you as a producer to contact clients to review insurance purchased in the past. In a large percentage of cases, your client may be able to better their coverage, reduce their costs, and avoid the danger of a policy lapsing because their past policy didn’t provide the performance promised in the original illustration. Contact us if you’d like to learn more about this effective marketing tool.
Universal Life Insurance - Universal Life Insurance is permanent insurance that’s main feature is flexibility for you and your client. Universal life gives your clients the ability to change premium and death benefit at any time, although an increase in death benefit usually requires new underwriting. Because of the accumulation cash account included in the policy, some people refer to this as term insurance and invest the difference all in one policy. That is, universal life offers a level premium that based on guaranteed or non-guaranteed insurance rates that is higher than term life insurance because the excess accumulates as policy cash value in early years, which in turn provides the amounts needed to provide for the cost of that insurance as your client gets older.
Universal life insurance has become one of the most innovative financial products available to your clients with new pricing, guarantees, crediting strategies, and underwriting methods to help clients with health issues.
Guaranteed Death Benefit Life Insurance – One of the latest and most exciting developments in life insurance, policies with lifetime guaranteed death benefits are now available from many companies. Offer your clients the least expensive way to guarantee a death benefit that is payable to their age 100 and beyond, all with premiums that aren’t dependent on policy cash value. These policies offer life insurance at contractually guaranteed premiums and costs that aren’t dependent, as in the past, on non-guaranteed interest and cash value, and interest rates over time.
Guaranteed death benefit life insurance is available in low cost policies, but as you read further you’ll find they can be used for clients seeking cash value accumulation over time, and for wealth preservation and estate planning for married clients using joint policies.
Cash Accumulation Universal Life – Your clients may desire a level or an increasing death benefit and also a competitive universal life policy that offers attractive cash accumulation. The cash accumulation value grows tax-deferred at competitive interest rates in a fixed interest product, or can choose one of the many new exciting fixed index universal life policies discussed below.
As with all life insurance, the main purpose for buying a life insurance policy is the death protection it provides to loved ones. However, cash accumulation universal life insurance provides the insurance coverage your clients need in a policy with cash values they can access for personal, family, business or retirement needs.
Fixed Index Universal Life – Understanding fixed index universal life insurance is relatively simple. Rather than earn an insurance company’s portfolio crediting rate, or in the case of mutual life companies a dividend declared each year, the amount of interest your client earns is tied to the performance of a particular stock market index. Fixed index life insurance offers guaranteed death benefits at attractive costs, and more potential cash value accumulation than many fixed interest products.
While the S&P 500 is one of the most popular, new products are available that offer point to point performance, or monthly averaging of market results. In years where the index performs well interest crediting rates will rise, and in years where the index performs poorly, interest crediting rates fall. However negative returns in an index do not create a loss because, as opposed to variable universal life, fixed index universal life will simply credit zero interest for a period where market returns are negative. This range of possible rates is often described as offering “upside potential with downside protection.”
These policies usually have a “cap” or limit as to as to how high a crediting rate they will pass on, and some will also provide for a “spread” that reduces performance by a margin.
ISN Network offers producers a wide variety of companies and fixed index products to choose from, and the tools needed to understand and present their benefits as a tool to provide for competitive death benefit, attractive tax deferred cash value accumulation for the long term, and the benefits of using life insurance for both protection, and to provide for future retirement or other income using policy loans and surrenders.
Survivorship Universal Life - Survivorship Life Insurance, also known as “second to die” life insurance, insure the lives of two people, typically a husband and a wife.
The death benefit is not paid to the beneficiary until the death of the second insured, so higher death benefits are possible at lower costs. These survivorship life insurance policies often also provide death benefit guarantees, and are useful for a variety of purposes; estate tax planning, wealth preservation, or wealth transfer.
Term Life Insurance - Term life insurance provides death protection for a stated time period, or term. Term life insurance has become increasingly competitive as insurance company mortality costs decline.
Term life insurance is perhaps the simplest form of life insurance and offers temporary life insurance protection on a limited budget. Since term insurance can be purchased in large amounts for a relatively small initial premium, it is well suited for short-range goals such as life insurance coverage to pay off a loan, or providing extra life insurance protection during the child-raising years.
More importantly, term life insurance can also be an important tool for business owners with key man or business succession needs, or to provide clients with estate planning tools with new return of premium features that deal with the uncertainty of future tax laws regarding estate and inheritance taxes.
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