Guaranteed Universal Life
For some time Universal Life with extended or Lifetime guarantees has been the big seller, especially for estate preservation. AIG, John Hancock, Nationwide, North American, Transamerica, Met, and Pru have all been among the most competitive in this arena.
Some clients may prefer to fund the death benefit with one single payment. Others may choose a 10 or 15 year payment plan. Cornerstone knows which companies are best suited for your clients.
On occasion you may encounter clients with older policies which have been insufficiently funded. Over time these policies may run out of cash value, leaving your client without valuable, needed protection. In some cases, these clients are better served transferring their old policies to a new, low-cost universal life with extended guarantees. Of course, only clients in good health should consider this option. Ask Cornerstone to review your clients’ old policies to help determine if an exchange is right for them.
Term and Cash Back Policies
All clients want value. Term and “Cash Back” policies that offer a guaranteed return of premium provide value that traditional Term Insurance does not. These policies work great for mortgage or loan repayment, divorce settlements or business needs such as Key-Man and Buy-Sell as well as College savings. The rate of return on the excess premium paid above the traditional term rate is often over 7% and the premium refund is not subject to income tax. Best of all, the net cost after the term period ends is always $ZERO!
We find most clients, if given a choice, prefer Term with Return of Premium over traditional term policies. However for those clients on a tight budget, Cornerstone offers products from carriers with the most competitive term rates. Term quote spread sheets can be accessed from this website on the term quote illustrator to help you find the least expensive alternative for your particular client.
Living Benefits
Living Benefits are, without a doubt, the greatest innovation our industry has experienced in the past 20 years. The addition of this type of protection for both Critical and Chronic Illness is changing the way people think about and purchase Life Insurance.
In just the past year, numerous carriers have developed Universal and Whole Life products which include Chronic Illness or Long Term Care riders. These options, which can often be added at no additional cost, serve to protect aging baby boomers against the prohibitive costs of Long Term Care needs. Furthermore, unlike traditional Long Term Care plans, premiums are often guaranteed for the life of the contract. By combining a Life Insurance policy with a Chronic Illness benefit rider, rather than the purchase of two separate policies, clients often realize a significant savings.
Along with Chronic Illness, some contracts provide an acceleration of all or part of the death benefit due to a Critical Illness. A Critical Illness is defined as a major health issue such as a heart attack, stroke, or cancer that is not terminal, but may nevertheless, impact the policy holder’s life expectancy. These types of illnesses can result in thousands of dollars on out-of-pocket medical expenses as well as loss of income. Under these circumstances, a client with this provision can access to a portion of their death benefit while they are alive and when they need it the most.
A small number of carriers are now offering these benefits on term policies as well.
Speak to your clients today about the purchase of policies with Living Benefits through Cornerstone.