Webinars

 

>> IUL Concepts That Actually Work

As we now settle into the post AG49 era of the life insurance industry, it is now more important than ever that you the producer understand how to properly communicate how these products work and perform to your clients.It is imperative now more than ever for advisors to work with an IMO that can help you navigate the rapidly changing IUL marketplace. We believe many carriers will be redesigning products to correlate with AG49. Gone are the days of selling on cooked illustrations. Those agents have no place left in this business and frankly neither do those IMOs.

It is imperative now more than ever for advisors to work with an IMO that can help you navigate the rapidly changing IUL marketplace. We believe many carriers will be redesigning products to correlate with AG49. Gone are the days of selling on cooked illustrations. Those agents have no place left in this business and frankly neither do those IMOs.

 
 


>> Help your clients get the most out of their legacy

Legacy Optimizer is designed to provide guaranteed death benefit protection with a single premium. It leverages the money into a larger death benefit, and many times can be near double the original amount. Plus, the death benefit passes on to the beneficiary generally tax-free and outside probate.

Generally, Legacy Optimizer is most appealing to clients who:
• Want to pass on a legacy to their beneficiaries
• Have sufficient retirement resources and emergency funds
• Have $25k to $200k in a low interest account

North American Legacy Optimizer Microsite: www.NALegacy.com

For Sales Support, Marketing Materials & Illustrations, please contact us today! 877-577-5101 x103 or Info@OptimaFIS.com

WATCH NOW

 
 


>> Learn about one of the greatest client acquisition tools to hit the marketplace.

By far the most frequent question any IMO gets asked (us included) is:

“How can you get me in front of more prospects”

It’s a tough question to answer because there is no secret sauce marketing program in this industry that gets you in front of unlimited prospects with little to no effort or cost. It also illustrates a fundamental lack of understanding about marketing. I should rephrase, you know it, maybe you just forgot it.

Problem. Agitate. Solution.

There can be hundreds of reasons you aren’t seeing enough people, but I guarantee that you are lacking in one of these 3 areas.

1.You aren’t solving a specific (highly specialized) problem

2.Your ideal clients don’t know the problem exists

3.Your ideal clients know the problem exists but don’t know you have the solution

You may be thinking, “it’s not that simple.” Really? Is it more complicated?

If you could solve a complex problem that your ideal clients were aware of and they knew you could solve that problem for them, you think you would struggle to fill your calendar?

We can’t do 100% of the heavy lifting for you, but we can help you develop a specialization.

By far the most unplanned for retirement event is planning for healthcare related costs.

Did you know that everyone has a mandatory cost in retirement? In order to claim your social security benefit, you MUST enroll in Medicare. You should also know that the cost of Medicare has NOHTING TO DO with your overall health.

Your health insurance costs in retirement have NOTHING TO DO with your health.

Your future health insurance costs (Medicare) are determined by how much income you recognize in retirement. The more income you recognize the more Medicare will cost you.

At the highest levels you can be surcharged an additional 320%!

92% of Americans have not addressed these costs in their financial planning. By 2020 25% of all Medicare recipients will be trapped in higher surcharges based on their income.

We just gave you a highly specialized problem that 92% of the population hasn’t planned for and best of all the ones most highly effected that have the most to lose/gain are the highest income earners among us.

We are going to give you:

1.A highly specialized problem that you can monetize

2.The tools to educate your ideal prospects on their problem so they can become aware

3.The complete software selling system that instantly saves clients hundreds of thousands of dollars on future health care costs by leveraging life insurance

The only thing left for you to do will be to make sure your ideal prospects know you can solve their problem!

Optima FIS | 877-577-5101 | Info@OptimaFIS.com | www.OptimaFIS.com 

 
 


>> Comparing New IUL Products Post AG49-What Changed?

It wasn’t long ago that an advisor could look at two illustrations and decide which product would be better for the client. Unfortunately, those days are behind us now thanks to AG49. (AG 49 was developed by National Association of Insurance Commissioners (NAIC) to help standardize illustrations, provide insurance carriers a more uniform method for calculating maximum illustrated rates on IUL products and to help consumers better understand index life insurance product illustrations.) There are so many variables when it comes to evaluating IUL that it has now become almost impossible to do without a complete understanding of the actuary’s goal when creating the product. Now more than ever carriers are tweaking their policies behind the scenes and making it more difficult for us to know what’s going on under the hood. As a producer, you can no longer compare products apples to apples.Pre AG-49, it seems liked we were all on the same page, We all knew the illustrations were guaranteed to be one thing, WRONG! Now that illustrated rates have been standardized based on the S&P index, we see advisors falling back into the trap of selling based purely on an illustration. Unfortunately, with AG 49, now all the magic is happening behind closed doors. We frequently see the best-looking illustrations being fueled by some of these phantom, unexplainable bonuses that arose out of AG49. Now more than ever as an agent you need to make sure you are working with an IMO/marketer that understands the interworking’s and hidden mechanisms of these products. Too many clients are buying policies that look great on paper, but are being fueled by non-guaranteed, impossible to understand bonuses. It is imperative you understand where the policy performance is coming from in the policies you sell. If you don’t understand it, your current IMO isn’t doing their job and your client most certainly doesn’t understand it. The crediting rate used to drive most of the policy performance. At least that was out in the open for everyone to see. Long gone are the days of simply running each company at a set rate and then comparing the numbers, and if that’s all your current IMO is doing for you, it’s time to find a new one.

The other huge area of change, that we can all agree needed to was the 1% max loan arbitrage. Gone are the days of showing illustration at 7.25% with a 4.25% loan rate and 15% cash flow….. That was absolutely criminal! Unfortunately, a lot of these types of illustrations were going out and agents were selling pie in the sky to consumers.

So where are we now? AG49 brought up 4 major issues that needed to be addressed:

*Multipliers. 

*Max loan arbitrage

*Guaranteed bonus

*Max illustrated rate

It is important to now explore these four points and how they affect how you and your IMO now design policy’s. We will delve further into each of these issues to make sure you have a better understanding of how they will further shape the way you continue to do business in an ever-evolving marketplace.

 
 


>> IUL as a Roth Alternative

We are sure many of you have been watching the markets absolutely tank thus far in 2016. We know many Americans have watched with horror how the values in their 401ks/IRAs have taken a hit.

Those advisors who have used Indexed Universal Life (IUL) insurance as a wealth-building tool have done well by their clients and have helped them avoid not only the recent turbulent times, but also those to come.

Math Doesn’t Lie

Market pullbacks are the perfect time to have a discussion about using IUL as a tax-favorable wealth-building tool. Why? The math doesn’t lie.

Unfortunately, many planners and money managers (and by extension, their clients) don’t understand the math around market pullbacks and rebounds. It all centers around the difference between the geometric mean and the arithmetic mean. The arithmetic mean is easy to understand. It is what most are accustomed to when thinking about averages. You add up numbers and then divide them by the amount of numbers you added up. You come up with one number that represents that average of those added. Helpful if you were trying to determine your grade in school. Not helpful if you are trying to figure out your average rate of return on your portfolio.

Once you introduce money into the equation the arithmetic mean doesn’t work. Let’s explore that.

Plus 10% year 1, followed by a 20% loss in year 2, and then followed by a 30% return in year 3. 20% /3 = 6.667%, right?

If you had a $500k account that means you would end up with $606,820 after 3 years with 6.67% growth. But is that how it really works??

$500,000 * 1.1 (10% return) = $550,000

$550,000 * .8 (20% loss) = $440,000

$440,000 * 1.3 (30% return) = $572,000

Over 3 years that is a 4.59% return. And THAT is the geometric mean…

If you could boil down the geometric mean to a single idea that every client should understand, it would be this: losing your money hurts you far more that gaining money helps you.

People love the idea of unlimited upside. Maybe it reminds them of playing the lottery. There is a chance they could absolutely strike it rich! But they don’t understand the basic principle we outlined above. What if you could absolutely eliminate losses? There would be a cost, or course. What if that cost took the form of limiting your upside to say 50% of the market performance? Our example above would look like this:

$500,000 * 1.05 (5% return) = $525,000

$550,000 * 1 (you eliminate the loss) = $525,000

$525,000 * 1.15 (15% return) = $603,750

By simply eliminating your losses in exchange for HALF the market upside your 3-year return soars to 6.49%.

A two percentage point increase over just a 3-year span for taking LESS RISK!

When properly explained, clients flock to this concept. You just need to know how to talk about it. So what do you call this concept?

IUL as a Roth Alternative

Again, the math doesn’t lie. When you look at the historic returns of the stock market, assume those returns are in a Roth IRA or Roth 401(k) and compare the after-tax income that can be taken from the Roth vs. what could be removed tax-free from an IUL, the IUL wins.

There is no mathematical debate about this if you use “real world” numbers.

There can be a debate as to whether a client wants to forego funding a Roth IRA or 401(k) to fund an IUL, but that debate can only take place after the advisor and the client understand the math.

 

 
 


>> Life and Annuity Solutions for Long-Term Care

Asset Care is a Life/LTC hybrid that provides tax-qualified long term care benefits, a guaranteed death benefit, and a guaranteed return of premium upon cancellation. It can be funded with qualified or non-qualified dollars, and offers several unique features such as single or joint coverage, and optional Lifetime LTC benefits at guaranteed premiums.

Annuity Care is an Annuity/LTC hybrid that combines long term asset growth and tax-free long term care benefits. It’s easier to qualify for than many LTC products, and it can be funded with cash or with a 1035 exchange from an existing non-qualified Annuity.

With 80 million baby boomers at or approaching retirement and the largest shortage of paid caregivers in our nation’s history, there’s never been a better time to help your clients plan for long term care.

With 80 million baby boomers at or approaching retirement and the largest shortage of paid caregivers in our nation’s history, there’s never been a better time to help your clients plan for long term care.

For Sales Support, Marketing Materials & Illustrations, please contact us today! 877-577-5101 or Info@OptimaFIS.com

 
 


>> Demystifying IUL Series – IUL Mechanics

Understand the basic functionality of Indexed Universal Life products.

For Sales Support, Marketing Materials & Illustrations, please contact 877-577-5101 or Info@OptimaFIS.com. Thank you!

 
 


>> Demystifying IUL Series – Index Credits

Find out how index credits work on IUL products.

For Sales Support, Marketing Materials & Illustrations, please contact 877-577-5101 x103 or Info@OptimaFIS.com

 
 


>> Demystifying IUL Series – Compelling Products Features

Learn about the most competitive features of our products, and how they can apply to your customer’s needs.

For Sales Support, Marketing Materials & Illustrations, please contact us today! 877-577-5101 x103 or Info@OptimaFIS.com

 
 


>> Demystifying IUL Series – Effective Illustration Tips

Learn about the most competitive features of our products, and how they can apply to your customer’s needs.

For Sales Support, Marketing Materials & Illustrations, please contact 877-577-5101 x103 or Info@OptimaFIS.com!

 
 


>> Demystifying IUL Series – How to Sell

Gain an understanding for how to position the North American IUL portfolio with your various clients’ needs.
For Sales Support, Marketing Materials & Illustrations, please contact us today! 877-577-5101 x103 or Info@OptimaFIS.com.

 
 


>> Premium Finance & What Every Agent Needs to Know

If you have been reading our newsletters for very long you will notice that one of our main points of emphasis is on doing things the right way. What exactly does that mean? Selling the right product, with the right face amount, using sufficient premium, and being conservative. We routinely steer clear of “new” concepts designed to increase tax deductions or skirt the IRS, especially when it comes to life insurance. Most of these new programs hit the scene and grab a ton of premium dollars before getting shut down by carriers and compliance. One strategy that has remained is Premium Finance.

We may hear rumors that with new tax reform, estate taxes could go away and therefor Premium Finance may not be as popular as in the past.

But all you can do is plan based on the rules as they are now. Every high net worth client has these three basic choices:

1)      Do Nothing

2)      Purchase a GUL or some other type of insurance

3)      Premium Finance

We want to make sure our producers know when each of these options are the best options. In addition it is extremely important that you as a producer have access to the right administrators for premium financing that give the agent and client the best access to the best banks, etc. for their clients. Our goal is to help you learn what to look for in an administrator and what to avoid.

There have been some major ups and downs over the last 10-15 years concerning premium finance. Many of you saw what happened with non-recourse financing, but traditional premium finance, for the right individuals is back and better than ever.

What is it? Premium finance or leveraged planning is a way to borrow money to pay for your life insurance premiums. Typically these are VERY large cases with 6 figure+ yearly premiums. More often than not these are trust owned policies used for large buy sells, estate taxes, wealth transfer, ect.

How does it work? The goal is to earn more money inside your life insurance policy than what the bank is charging you for the loan. This allows you to one day pay off the large bank loan and have a giant fully funded life insurance policy that you didn’t have to pay premiums for. All you needed to do was post collateral (or a letter of credit from an A1P1 bank).

Who is this for? These leveraged plans with huge premiums typically all have one thing in common. The clients all have a large net worth (5m+), earn a large income, and have significant LIQUID net worth.

 
 


>> Linked Benefits

If you are looking for a planning opportunity in your current book of business, LTC insurance could be one of the lowest hanging fruits out there. Clients are concerned now more than ever about the impact of Long term care needs can have on their retirement savings. With the average annual cost of care for assisted living facilities is $43,200 per year and a semi private nursing homeroom being almost double that ($80,300,) it’s no wonder people are scrambling for ways to limit their exposure.

Linked Benefits should be part of every conversation. Find out why?

 
 


>> AG 49 Phase 2 Multipliers and Bonuses

With phase 2 of AG 49 regulations taking effect March 1st, the industry abruptly shifted to an illustrative model in which all carriers are “level set” to show 100 bps, or less, spread between the illustrated accumulation rate and borrowing cost of indexed policy loans, it will become all the more crucial to understand what’s “under the hood” in each product’s loan features. As with any type of rule changes in the life insurance industry, carriers are scrambling to find ways to differentiate themselves from the competition and negate some of the effects of AG 49.

 
 


>> Updated Mortality Tables Reduce Income Payments on FIAs

Many insurance companies have been using the “old” mortality tables. This is to their benefit when pricing out life insurance and to their detriment when pricing out annuity payments.
2000 vs 2012 mortality tables

Virtually all companies in 2016 will be using the newer 2012 mortality tables. The difference is significant. When are we supposed to die under the different tables?

-Male 2000 table – 85.4-years old
-Male 2012 table – 88.5-years old

-Female 2000 table – 88-years old
-Female 2012 table – 90.3 years old

-Joint 2000 table – 92.1-years old
-Joint 2012 table – 94.7-years old

Talking about a male insured, the insurance company now needs to account for income that will last an additional 3.1 years. That’s over 37 months of additional income from an annuity.

For this reason alone you should see ALL companies that offer guaranteed income riders to lower their roll up rates and/or their income payments.

 
 


>> IUL as a Roth Alternative

We are sure many of you have been watching the markets absolutely tank thus far in 2016. We know many Americans have watched with horror how the values in their 401ks/IRAs have taken a hit.

Those advisors who have used Indexed Universal Life (IUL) insurance as a wealth-building tool have done well by their clients and have helped them avoid not only the recent turbulent times, but also those to come.

Math Doesn’t Lie

Market pullbacks are the perfect time to have a discussion about using IUL as a tax-favorable wealth-building tool. Why? The math doesn’t lie.

Unfortunately, many planners and money managers (and by extension, their clients) don’t understand the math around market pullbacks and rebounds. It all centers around the difference between the geometric mean and the arithmetic mean. The arithmetic mean is easy to understand. It is what most are accustomed to when thinking about averages. You add up numbers and then divide them by the amount of numbers you added up. You come up with one number that represents that average of those added. Helpful if you were trying to determine your grade in school. Not helpful if you are trying to figure out your average rate of return on your portfolio.

 
 


>> North American Annuity Service Center

The Department of Labor recently held a public hearing around its proposed fiduciary rule – a new and potentially game-changing regulatory hurdle that could affect the way insurance agents across America are allowed to operate. Jim Poolman, Executive Director of the Indexed Annuity Leadership Council (IALC), addressed the panel and called for specific changes to the rule to protect the distribution system, the way you serve your customers and your freedom to do business.
As a founding member of the IALC, we at North American believe it is critical that we clearly show how almost all agents are already working to advance consumers’ best interests. And, how the final rule, if badly drafted, could create a regulatory burden that will inhibit the ability of agents to best serve their customers.
As discussions on the fiduciary rule continue, North American and the IALC will continue to advocate on behalf of insurance agents throughout the country
Please contact your Annuity Support Team with questions at 415-408-7763 x104 or Annuity@OptimaFIS.com.

 
 


>> AG 49: New Guidelines for Illustrating IUL Products hosted by American General

American General
AG 49: New Guidelines for Illustrating IUL Products
Please send your questions, comments and feedback to info@optimafis.com or give us a call at 415-408-7763 x103.

 
 


>> Fidelity & Guarantee Life

Fidelity & Guarantee Life
Learn what makes Fidelity & Guaranty Life’s two FIULs some of the best in the marketplace. Learn where each product fits in the marketplace along with product features, and the past performances.

 
 


>> Living Benefits and Overloan Protection Riders

Understand the definition of Living Benefits and Overloan Protection riders in Life & Annuity policies.
Please send questions, comments and feedback to info@optimafis.com or give us a call at 415-408-7763 x103 or 104.

 
 


>> Choosing the Right Annuity

What is the right Annuity to meet your client’s needs?
Please send your questions, comments and feedback to info@optimafis.com or give us a call at 415-408-7763 x104.

 
 


>> IUL Interest Rates, Options Budgets, Crediting Rates & Caps

How do interest rates effect options budgets and how does the options budget effect crediting rates/caps?
Please send your questions, comments and feedback to info@optimafis.com or call us at 415-408-7761 x103.

 
 


>> Index Universal Life Illustration Software Training

Learn basic illustration skills for properly illustrating Index Universal Life products.
Please send your questions, comments and feedback to info@optimafis.com.

 
 


>> Back Casting Tool Explained

What crediting rates are realistic for each carrier.
Please send your questions, comments, feedback to info@optimafis.com.

 
 


>> History of UL: GUL, IUL & VUL

The rise and downfall of UL – what went wrong and can it happen again?!
Please send your questions, comments and feedback to info@optimafis.com.

 
 


>> How to Properly Illustrate and Sell IUL (Indexed Universal Life) Policies

How to accurately compare all the different IUL carriers when running illustrations.
Please send your questions, comments and feedback to info@optimafis.com.