Rescue Clients From Policy Loans€¦ · annuity expertise. His sales, marketing and distribution responsibilities have spanned independent producer, brokerage, broker- ... Pub P

For Financial Professional Use Only. Not For Use With Consumers.

firstprotective.com

FIRST THINGSFIRST THINGSADVANCED PLANNING

Risk Management Solutions

Rescue Clients From Policy Loans

page 9

Flex Your Innovation

Muscles page 32

Are You Leaving a Legacy or a Tax Burden?

page 33

VOLUME 8 | SUMMER 2020


2 firstprotective.com For Financial Professional Use Only. Not For Use With Consumers.For Financial Professional Use Only. Not For Use With Consumers.

3For Financial Professional Use Only. Not For Use With Consumers. firstprotective.com

Extraordinary Times, Extraordinary Response WHAT EXTRAORDINARY TIMES HAVE UNFOLDED SINCE THE LAST EDITION OF FIRST THINGS. WHEN WE PUT OUR LAST ISSUE TO PRINT, NO ONE HAD EVER HEARD OF COVID-19 OR WAS PREPARED FOR THE INCREDIBLE IMPACT OF THE PANDEMIC AND ITS HUMAN AND ECONOMIC TOLL.

I attended an insurance conference in Miami at the beginning of March, just as the potential magnitude of the pandemic was beginning to sink in. In subsequent days and weeks, all of us were touched by this insidious virus. Tens of thousands of our loved ones were lost in the U.S. alone, even as we adapted to shelter-in-place and stay-at-home orders to slow the spread of this invisible enemy.

But adapt we did. We were all heartened and moved by the amazing ways that our health care workers, first responders and other essential workers selflessly responded to the needs of others.

I’m particularly proud of the way our industry responded to these extraordinary times. Nearly overnight, we all found new ways to serve and communicate with our customers. The entire team at First Protective pivoted to the new work-from-home environment without missing a beat, leveraging the best of technology, innovation and commitment. And our carrier partners enabled new streamlined underwriting processes, electronic submission tools and e-delivery mechanisms that permitted us all to demonstrate our servant’s hearts as we continued to keep our promises.

We don’t yet know what the “new normal” will look like. But we do know that together we will continue to solve our customers’ financial questions, which have become even more urgent and complex in the face of this pandemic and its aftermath.

While we can never thank you enough for your business and partnership with First Protective, we want you to know how sincerely grateful we are to you for all you do. We are honored to be your allies in helping to deliver protection and security to the families and businesses we serve together, particularly in these extraordinary times.

Eric has more than three decades of experience in the financial services industry with extensive life insurance and annuity expertise. His sales, marketing and distribution responsibilities have spanned independent producer, brokerage, broker-dealer and financial institutions channels. Prior to joining First Protective, Eric most recently served as the chief distribution officer for the U.S. life and annuity business of Foresters Financial.

He has a long history with Protective Life, having served as vice president and national marketing director in the life and annuity division from 2001 to 2011. Eric has held other key leadership roles with Liberty Mutual, Irish Life of North America, Zurich Kemper Life, GE Capital Assurance and Confederation Life. Eric is also a decorated veteran of the United States Air Force, where he served as a Russian linguist and intelligence analyst in the U.S. and overseas.

A magna cum laude graduate of Georgia State University, Eric also has executive education experience at both Harvard Business School and the Wharton School of the University of Pennsylvania. He is active in many industry and community organizations and resides in Birmingham, Alabama, with his wife, Shari.

Eric P. Miller, FLMI President

4 firstprotective.com For Financial Professional Use Only. Not For Use With Consumers.

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We want to hold your hand with quote sharing.Just contact your Vive-affiliated BGA now and ask them to run your quotes for you. They’ll start your order and send a Share-a-Quote link by text or email. You get instant access to the order for internal review, revision or finalization.

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SECURE ACT LANDSCAPE 12 | Three Ways the SECURE Act

May Impact Your Business

17 | The SECURE Act: An Opportunity for Inherited Qualified Funds

20 | What You Need to Know About the SECURE Act

33 | Are You Leaving a Legacy or a Tax Burden?

COVID-19 IMPACT 30 | How Will the Industry Survive

Coronavirus?

32 | Flex Your Innovation Muscles

DOING BUSINESS WITH US 7 | About Us

35 | The Value of Our Consultative Approach

50 | Connect with Us

FEATURESFIRST THINGS

ADVANCED PLANNING COVER STORY 9 | Rescue Clients From Policy Loans


BATON ROUGE

MOBILE

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ORLANDO

HUNTSVILLE

CHATTANOOGA

GREENVILLE

PHILADELPHIA

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Guidance in the Field to Improve Your BusinessTo better serve your clients, you need a risk management partner that can effectively serve you. Our team of Regional Directors can identify strategies to increase opportunities for your business and manage more potential risk for your clients.

Because we understand that personalized attention can help you address more of your client’s needs, we guide you through every step of the process to develop tailored client solutions.

Whether you’re submitting a case for the first time or you’ve been working with us for years, we deliver guidance and expertise to help you:

• Pursue new opportunities

• Diversify your core business

• Serve more of your clients’ retirement planning needs

For optimum support in the field, our offices span several states. Together, we can give your clients more confidence in their financial future.

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DOING BUSINESS WITH US

About Us FIRST PROTECTIVE WAS FOUNDED IN 1983 TO SERVE THE NEEDS OF INDEPENDENT PRODUCERS AND HAS SINCE GROWN INTO A MULTI-FACETED FINANCIAL SERVICES FIRM THAT PROVIDES PERSONALIZED SUPPORT FOR EVERY RISK MANAGEMENT NEED. TEAMING UP WITH US MEANS ACCESSING STRATEGIES AND EXPERTISE TO IDENTIFY MORE REVENUE STREAMS, DIVERSIFY YOUR CORE BUSINESS AND STRENGTHEN YOUR STAYING POWER.

TOGETHER, WE HELP MAKE YOUR BUSINESS MORE VALUABLE — AT EVERY STAGE.

EXPERTISE TO HANDLE YOUR CHALLENGESWith one-on-one support in the field from your Regional Director, combined with the product expertise of the home office, you can address comprehensive client needs more easily and build your business.

Our dedicated teams are ready to help build your business through:

• Impaired risk underwriting • Tax planning strategies• Point-of-sale coaching • Dedicated case management• Advanced case design

RESOURCES AND TOOLS DESIGNED TO ACCELERATE YOUR BUSINESS Just because a firm has expertise in risk management doesn’t mean it has the infrastructure to support your business. To effectively drive revenue, you need annual events that add value, integrated platforms that streamline workflows and consumer materials that educate without over complicating. Our tools can improve your business and help you better serve your clients.

BACKED BY PROTECTIVE LIFE AND DAI-ICHI, ONE OF THE LARGEST GLOBAL INSURERSOur strong backing allows us to deploy resources and tools with economies of scale to better serve our producers and their clients. Our parent company, Protective Life Corporation is wholly owned by top global life insurance provider, Dai-ichi Life Holdings, Inc. n

Value-Added Events

To complement ongoing field support, several events are hosted in-person

and virtually throughout the year to share the latest sales strategies, advanced planning concepts and

more. Connect with industry experts and apply actionable

insights to drive revenue.

Online Integrations Keep your business moving through our web portal. Access a variety of business processing tools like term life quotes, drop ticket order entry and case status, plus educational

resources and simplified illustrations that demonstrate the benefits of risk management solutions.

Consumer Education Demonstrating the benefits of risk

management solutions can be cumbersome and overwhelming for

clients. Simplify complicated concepts by using our consumer-friendly

materials and co-branded pieces to build client confidence in your

recommended strategies.


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Prudential Advertising973-802-7361

The promise of prosperity will never grow old. Neither will helping people achieve it.

Visit prudential.com/purpose

© 2019. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

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As true today as it was when we began. More than 140 years ago, our founder John Dryden pioneered life insurance to bring security and dignity to working families.

Today, Prudential continues to help individuals aspiring to achieve a secure retirement, financial independence and a legacy for their children.

We answer real-life challenges of everyday people, to bring financial security within reach of more workers and their families.

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ADVANCED PLANNING COVER STORY

Bret GerberRegional Vice President, Prudential


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Rescue Clients From Policy Loans

DID YOU KNOW LIFE INSURANCE POLICIES THAT WERE PURCHASED SEVERAL YEARS AGO CAN CARRY LARGE LOANS AND HIGHER INTEREST CHARGES THAT MAY SUBJECT THEM TO A POTENTIAL LAPSE? BY DEVELOPING A STRATEGY TO HELP YOUR CLIENTS PREVENT POLICY LAPSE, YOU COULD RESCUE THEM FROM FINANCIAL SHOCK AND PROVIDE MORE FLEXIBLE OPTIONS THAT COULD BETTER SUIT THEIR NEEDS TODAY.

Understanding how to create opportunities from policy loans could build stronger client relationships and drive additional life insurance revenue for your business. Work closely with me and my advanced planning team to develop strategies, like a loan exchange, that help your clients avoid unintended policy lapses. We provide expertise and personalized guidance through every step of the loan exchange process, helping you and your clients navigate complex tax strategies.

Let’s review the options for addressing policy loans, then take a deeper dive into an advanced planning strategy that mirrors an existing loan to a new policy with improved benefits and flexibility to better suit your client’s needs. I’ll provide tips along the way, so you can apply these concepts to your policy review process and begin building your permanent life insurance business.

OPTIONS TO ADDRESS POLICY LOANS Before we dive into policy rescue, let’s review the options to address a policy loan. If your client has a significant loan taken from a life insurance policy, there are three ways to approach it:

continued on page 10

Do nothing — The policy may lapse and taxes will be due if there is gain in the policy.

Repay the loan out of pocket — This may be a good option if funds are available. Keep in mind that ongoing premiums may be needed.

Complete a 1035 exchange to a new policy and mirror the loan — A 1035 exchange is a provision in the tax code. In general, it allows policyholders to transfer funds from a life insurance policy to a new policy, without having to pay taxes at the time of transfer. Ongoing premium payments may be needed for this option, too.

CLIENT BENEFITS FOR POLICY EXCHANGEInstead of letting the policy lapse or reviving an existing policy with less flexible benefits, a policy exchange could help your clients maximize their assets and take advantage of improved features available today. When executed and designed properly, a 1035 exchange to a newer policy where the loan is mirrored may provide higher death benefit coverage and lower loan interest charges. The loan on the new policy can then be repaid out of pocket.



continued from page 9

Alternatively, in year two or later, a withdrawal can be requested to pay down the loan by using the policy’s available cash value. It’s important to know that surrender charges are likely to apply to the withdrawal and the death benefit will be reduced.

In addition to a potentially higher death benefit and lower loan interest charges, a policy exchange can provide the following client advantages:

• More flexibility and enhanced suitability, given many of today’s new types of life insurance policies that weren’t available even a few years ago

• Better coverage and protection that address current financial objectives

• Cost effectiveness, in some cases

PRACTICAL APPLICATIONSBefore we review potential solutions for a loan rescue, let’s look at when a policy exchange might work. A mirrored loan strategy can be applied to most permanent life insurance policies, assuming they have cash value potential. There are a few guidelines to keep in mind, as you consider this concept for your client.

The following conditions must be met:

• Policy must have $25K minimum for net cash surrender value

• Corporate exception is required to justify development resources

• Full medical underwriting is required on the new policy

TWO SOLUTIONS FOR LOAN RESCUEAssuming the above conditions are met, a mirrored loan strategy could be a valuable option for loan rescue. Prudential offers two solutions that could be a good fit, depending on client risk tolerance.

Either of these products could help prevent policy lapse with a 1035 exchange and provide significant potential for cash value accumulation:

• VUL Protector — for clients who are willing to assume some risk for stronger growth potential, this solution allows them to choose from 60+ investment options or customized portfolios with features like auto rebalancing and free exchanges on a high-quality investment option.1 As a reminder, a securities license is required to sell VUL products.



Effortless Avoidance of Policy Lapse Shock

Gene Plauche Shares a Client Success Story

One of my agents recently discovered a large loan on his client’s policy, so I called Ronnie Hamilton and told him the situation. Ronnie recommended a mirrored loan strategy and connected me with Bret’s team at Prudential to talk through the problem.

I got on the phone with Bret and several advanced planners to provide information about the client’s goals and policy details. The advanced planners at Prudential crunched some numbers and ultimately shared three options with me, so I took the illustrations back to my agent, so he could provide several solid proposals to his client.

My agent was very pleased with my recommendations and was even more impressed with the amount of money we were able to save his client. Ronnie, Bret and the Prudential team made the process a breeze. They guided us through the 1035 exchange and prevented the financial shock that a policy lapse can cause. I appreciate their expertise and know who to call next time for loan rescue.

Gene Plauche Regional Director, First Protective



1 In 2017, 53 out of the over 60 investment options (88%) returned more than 7%; more than half (54%) were rated 4 or 5 stars by Morningstar (Industry average 34%). For each fund with at least a 3-year history, Morningstar calculates a Morningstar rating (based on a Morningstar risk-adjusted return measure that accounts for variation in a fund’s monthly performance, including the effects of sales charges), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star (each share class is rated separately, which may cause slight variations in the distribution percentages). The Fund was rated against U.S.-domiciled funds. The Morningstar Rating may not be customarily calculated based on adjusted historical returns. If so, this investment’s independent Morningstar Rating metric is compared against the retail mutual fund universe breakpoints to determine its hypothetical rating for certain time periods. Other share classes may have different performance characteristics. Past performance does not indicate future results.

• Founders Plus IUL — for clients who are very risk averse, this product offers two accounts that provide different approaches for accumulating cash value. Clients can choose from a fixed or indexed account option and can even opt for a combined approach to suit their financial goals.

GUIDANCE THROUGH EVERY STEP OF THE PROCESSYou don’t have to be an expert in complex tax strategies to help your clients exchange a near-lapsing policy. Prudential has a dedicated team of specialists that are ready to guide you through the entire process and help set client expectations. We serve as an extension of the expert advanced planning team at First Protective.

Our team at Prudential handles everything upfront and develops several strategy options to share with your clients. It’s a parallel process, getting the 1035 exchange in the works while the strategy is determined, then set in motion. A lot of planning and detailed communication upfront ensures that everyone supports the chosen strategy and it’s implemented successfully to rescue your clients from policy loans.

IDENTIFY MIRRORED LOAN OPPORTUNITIES AT YOUR NEXT POLICY REVIEWSo, how do you put this strategy in action? As you prepare for ongoing policy reviews with your clients, look for signals that may indicate a mirrored loan strategy might be beneficial. Rescue your clients from policy loans and reduce the risk of policy lapse by reviewing their most recent annual policy statement.

There are two main identifiers that could signal a near-lapsing policy:

• Large loan recently taken from a policy (assuming net cash value exceeds $25K)

• Significant taxable events

If you find an opportunity to avoid policy lapse with a mirrored loan, connect with me and my team for expertise and guidance throughout the process. n


Amanda FleskoskiRegional Vice President, Protective Life

SECURE ACT LANDSCAPE

The legislation’s major impacts are listed below. See what these changes could mean for your clients, and in turn, how the implications could affect your financial planning strategies.

Three Ways the SECURE Act May Impact Your Business

ON DECEMBER 17, 2019, THE SECURE ACT (SETTING EVERY COMMUNITY UP FOR RETIREMENT ENHANCEMENT ACT) WAS SIGNED AND PASSED THROUGH CONGRESS. IF YOU’RE WONDERING WHAT THE IMPLICATIONS COULD BE FOR YOUR PRACTICE, PROTECTIVE HAS YOU COVERED.

1 Removal of the "stretch" IRA option The SECURE Act eliminates the usage of the stretch IRA for most non-spouse beneficiaries — a

common estate planning technique that extends IRA benefits to younger beneficiaries with years of tax-deferred income. An IRA inheritance must be withdrawn by the end of 10-years, otherwise the beneficiary will be subject to penalties. The exceptions to the new 10-year rule are for a surviving spouse, disabled beneficiary, chronically ill beneficiaries, and minor children (natural or adopted) of the descendant who have not reached the age of majority. Once a minor child reaches age of majority, their 10-year withdrawal period begins for their remaining inheritance.

What this means for beneficiaries: Higher income taxes since IRA benefits must be cashed out within 10-years. Your clients need a tax-efficient way to transfer IRA values to their loved ones.

2 Increased RMD age from 70½ to 72 Because the number of 65-year-old Americans at work has increased by 35% between 2011

and 2016,1 the SECURE Act issued that clients must now begin taking their RMDs at the age of 72 instead of age 70½.

What this means for clients: This age increase gives clients an additional 18 months to plan for the unwanted taxable event an RMD may create. If clients don't plan on using their RMDs for retirement income, talk to them about ways they can maximize their IRA dollars.

3 Repeal of maximum age for traditional IRA contributions Over the past 120 years, the average American’s life expectancy has increased seven years — and

living longer means a later retirement.2 As a result, the SECURE Act has made it possible for clients to continue funding their IRA accounts past the age 70½, as long as they are working.

What this means for clients: Older clients who continue to work will be able to save more in a tax-advantaged account. Ensure that your clients — specifically working seniors — continue maximizing their IRA contributions, even past the age of 70½.



1 Wilkie, Dana. “The Number of Older Americans at Work Has Grown 35 Percent.” SHRM. Feb. 2, 2018. 2 “The 2019 Fact Book on Retirement Income.” Secure Retirement Institute.

WE’RE HERE TO SUPPORT YOU THROUGH THESE CHANGESHere are three specific ways Protective can help you navigate the SECURE Act changes with confidence:

• Conversation Guidance: We’ll equip you with resources that can help you facilitate retirement conversations with ease. • Creative Strategies: We’ll show you how to think outside the box and offer creative solutions to your clients.

For example, you can utilize the power of a life insurance policy to enhance a client’s legacy planning strategy. • Dedicated Support: Our dedicated team of professionals is here to help when you feel stuck.

Contact your Protective Life representative for additional help and support. n


LCN-2461876-031419. Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN, and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products distributed by broker-dealer/affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Product guarantees are subject to the claims-paying ability of the issuing company. © 2019 Lincoln National Corporation.

At Lincoln Financial, we know the love for your family is undeniable; however, the future isn’t as certain. And no one wants to leave their family with questions about what will happen next. Well, we have some answers. We offer financial solutions to help ensure your loved ones are protected, today and tomorrow, no matter how life unfolds. Learn how we can help you plan to protect your family’s financial future.

NOTHING IS GOING TO STOP YOU FROM TAKING CARE OF THEM. NOT EVEN TIME.SOME RESPONSIBILITIES OF LOVE YOU HAVE TO DO ON YOUR OWN. AND SOME YOU SHOULDN’T HAVE TO SHOULDER ALONE.

P L A N P R O T EC T R E T I R E

LFG.com



David Duckworth, CFP, CLU, ChFCSales Vice President, Lincoln Financial Distributors

continued on page 16

LCN-2461876-031419. Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN, and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products distributed by broker-dealer/affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Product guarantees are subject to the claims-paying ability of the issuing company. © 2019 Lincoln National Corporation.

At Lincoln Financial, we know the love for your family is undeniable; however, the future isn’t as certain. And no one wants to leave their family with questions about what will happen next. Well, we have some answers. We offer financial solutions to help ensure your loved ones are protected, today and tomorrow, no matter how life unfolds. Learn how we can help you plan to protect your family’s financial future.

NOTHING IS GOING TO STOP YOU FROM TAKING CARE OF THEM. NOT EVEN TIME.SOME RESPONSIBILITIES OF LOVE YOU HAVE TO DO ON YOUR OWN. AND SOME YOU SHOULDN’T HAVE TO SHOULDER ALONE.

P L A N P R O T EC T R E T I R E

LFG.com

Five Must-Have Client Conversations on the Missing Link

APPROXIMATELY 37.5 MILLION U.S. HOUSEHOLDS CURRENTLY HAVE NO LIFE INSURANCE COVERAGE, AND NEARLY HALF OF ALL HOUSEHOLDS ARE UNDERINSURED.1 THIS PUTS THEM AT RISK OF NOT BEING ABLE TO REPLACE THEIR INCOME AND MISSING OUT ON A POWERFUL ASSET THAT SHOULD BE PART OF A WELL-ROUNDED FINANCIAL PORTFOLIO.

Here are five conversations starters to help uncover opportunities for life insurance:

CONVERSATION 1: COST EFFECTIVE IUL POLICY DESIGNAs agents sit down with their clients to discuss an optimal design for their new IUL policy, they should begin by reviewing the client’s priorities and asking a few questions to determine a strategic allocation approach, including:

• What is more important to you, growth or protection?• Are you interested in receiving the highest possible returns for an extra charge?• Would you like to earn guaranteed positive crediting every year — even in a down market?

CONVERSATION 2: MAKE “DOING GOOD” DO GOODAgents can support their clients’ philanthropy by helping maximize gifting potential with a tax-efficient strategy that offers strong cash accumulation potential, such as variable universal life (VUL) insurance.

Ask these questions to start a conversation about using life insurance to meet charitable objectives:

• Would you like to be able to support an organization that you’re passionate about?• Would you like to give to your favorite charity and gain tax advantages?• Do you want to be able to create a larger gift with a smaller financial contribution?

CONVERSATION 3: LIFE INSURANCE AS AN ASSET CLASSLife insurance can be a valuable complementary tool to other investments. When a portfolio is highly concentrated in one area, diversifying can offer a different type of leverage and increase predictability of what will be available to the next generation.

Life insurance offers advantages in meeting goals at every stage of a client’s life, including potentially:

• Strengthening retirement income;• Alleviating some of the cost of a child’s tuition; and,• Protecting against long-term care expenses.


continued from page 15

For agent or broker use only. Not for use with the general public. LCN-1967056-120817. Lincoln Financial Group and Lincoln Financial are the marketing names for Lincoln National Corporation and insurance company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN, and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products distributed by broker-dealer affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Product guarantees are subject to the claims-paying ability of the issuing company. © 2019 Lincoln National Corporation.

PLAN PROTECT RETIRE

Learn more at www.LincolnFinancial.com

He gave him everything, except the burden of worrying about him.

You plan for what matters most to your clients.However an unplanned event can derail even the best of plans.

A long-term care event impacts not only the individual but the entire family. Advisors have an opportunity to help clients and their families be proactive by putting a care plan in place, which can lead to more satisfied and loyal clients down the road.

At Lincoln Financial, we pioneered the hybrid policy that provides long-term care benefits should your clients need them, and life insurance if they don’t.

CONVERSATION 4: CREATING A TAX-EFFICIENT ESTATE PLANMany Americans focus on their current financial circumstances and don’t think about the future until it’s too late. This is an opportunity for agents to help clients navigate the often-complex estate planning process.

Estate planning is an essential part of protecting wealth, and done right with the help of life insurance, it can help clients reduce taxes and probate costs, control the distribution of assets and more.

CONVERSATION 5: LIFE CHANGES, A POLICY MIGHT ALSO NEED TOAs a final point, life insurance should never be put into a filing cabinet and forgotten. Clients marry, purchase homes, have children, retire and downsize. As their lives evolve, so do their responsibilities. A policy review every two or three years is ideal to ensure clients have the life insurance coverage they need. n

Lincoln Financial Distributors, Inc., a broker-dealer, is the wholesale distribution organization of Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.1 LIMRA, Life Insurance Ownership in Focus, U.S. Household Trends – 2016, September 2016


Kevin RileyRegional Sales Manager, OneAmerica


The SECURE Act: An Opportunity for Inherited Qualified Funds

ON DECEMBER 20, 2019, CONGRESS PASSED INTO LAW PROVISIONS FROM THE SETTING EVERY COMMUNITY UP FOR RETIREMENT ENHANCEMENT (SECURE) ACT. THIS LANDMARK LEGISLATION PROVIDES THE MOST SIGNIFICANT CHANGES TO THE RETIREMENT INDUSTRY IN MORE THAN A DECADE AND MAKES INVESTING FOR RETIREMENT MORE ACCESSIBLE TO MILLIONS OF AMERICANS.

HOW DOES THIS IMPACT LONG-TERM CARE PLANNING?First, the legislation eliminates the concept of “stretch IRAs,” which extended the tax-deferred status of an inherited IRA when it passed to a non-spouse beneficiary. The beneficiary could “stretch” the life — and the associated tax advantages — of an IRA over decades. Under the new law, non-spouse beneficiaries are required to take out all funds from their inherited IRA within 10 years of the death of the original account owner.

Second, due to increased life expectancies, Required Minimum Distributions (RMDs) aren’t required to be taken until age 72, up from 70½.

ASSET CARE QUALIFIED MONEY STRATEGYDo you have clients expecting to inherit qualified funds

who are unsure of how to reposition their RMDs? Use Asset Care Annuity Funding Whole Life to help turn an inherited, taxable part of an estate into a tax-free income stream to pay for qualified long-term care!

• Encourage a direct rollover of the inherited account into Asset Care Annuity Funding Whole Life. A 20% income base bonus is applied, so each $1 “spends” like $1.20!

• Distributions are taxable, but automatically spread over the newly required 10-year period. There’s no 10% penalty if the inherited IRA contract owner is younger than age 59½.

• You can even add a spouse to the protection so both can benefit.

• Use the Lifetime Continuation of Benefits to reposition the inherited funds and create tax-free distributions for qualifying long-term case services… for LIFE! n


is the marketing name for the companies of OneAmerica | OneAmerica.com

© 2017 OneAmerica Financial Partners, Inc. All rights reserved.

I-29210 02/02/17

For use with financial professionals only. Not for public distribution.

The women in our lives — mothers, sisters, wives, daughters, friends — are the first to step in to offer care and support for family members and friends.*

Think of your female clients who work so hard to help others. When everyone’s counting on them, you’re uniquely equipped to help them prepare for the future they want with OneAmerica® Care Solutions.

* “Caregiving.” Family Caregiver Alliance/National Center on Aging. www.caregiver.org/caregiving. Web. Retrieved 30 November 2016.

• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • MAY LOSE VALUE

Note: Products issued and underwritten by The State Life Insurance Company® (State Life), Indianapolis, IN, a OneAmerica company that offers the Care Solutions product suite. Asset-Care Form numbers: L301, R501 and SA31; Annuity Care and Annuity Care II Form numbers: SA34, R508; SA35; Indexed Annuity Care Form numbers: SA36, R529 PPA, R529, R530 PPA and R530. Not available in all states or may vary by state. All guarantees are subject to the claims-paying ability of State Life. Provided content is for overview and informational purposes only and is not intended as tax, legal, fiduciary or investment advice.

NOT A DEPOSIT • NOT FDIC OR NCUA INSURED • NOT BANK OR CREDIT UNION GUARANTEED

Help them prepare for the long term — on their terms

Don’t wait! Contact us todayat 1-800-876-3950 or visitwww.firstprotective.comto learn more.

First Protective Insurance Group, Inc. is not an affiliate of State Life and is not a OneAmerica company.


Tracey Edgar, RN, BSN, CLTCVice President of Sales, OneAmerica

Having conversations with clients about whom they expect will help take care of them as they age opens the door to important questions. Does the person know about the expectations? Do they have a career or other family members they’re caring for? What kind of legal and financial preparations might be necessary to help the caregiver provide the kind of care your client wants, in the place they want to receive it?

ASSET-BASED LONG-TERM CARE PROTECTIONOnce you’ve started the conversation about care, clients will likely realize the need to prepare financially. Solutions offering living benefits — like asset-based long-term care (ABLTC) protection — can help protect retirement income from the drain of unexpected expenses while providing a death benefit if long-term care benefits aren’t fully used. With ABLTC protection premiums are guaranteed and may include protection of two people with one policy and the option for lifetime benefits.

One of the benefits of ABLTC is its flexibility. The benefits can allow people to choose how and where they want to receive care. Long-term care protection can help them avoid spending down personal assets to pay for their long-term care. With a lifetime benefit option, they can’t outlive the benefits.

GOING BEYOND THE AVERAGESMany financial professionals are aware that, on average, people need two to four years of long-term care. Many of their clients can manage this expense; however, the average numbers don’t cover the catastrophic financial gap that can result if care is needed for longer — in some cases, much longer. Often, the burden of that financial and care provision gap can rest, at least partially, with family

caregivers. But most people don’t plan for the emotional and physical toll providing care is likely to take on family members.

Long-term care protection can allow a person needing care to access their benefits for care the family member isn’t licensed to provide — skilled nursing visits for instance. Long-term care benefits can also help hire someone to fill in during vacations or perform tasks the family member can’t. Basically, long-term care protection can allow a person

receiving care to do so with dignity and allow the family member to care about their loved one versus provide care for them.

Planning for any possibility is its own living benefit. Helping clients achieve peace of mind that the retirement income they’ve prepared for will be used for its intended purpose — retirement — is a wonderful benefit that any of us in the financial services industry can give. n

Living Benefits that Truly Last a Lifetime

WHEN FINANCIAL PROFESSIONALS TALK ABOUT LIVING BENEFITS, WE’RE USUALLY TALKING ABOUT PRODUCT OPTIONS. BUT OFTEN, THESE PRODUCTS ALSO CAN PROVIDE THE VERY REAL — IF LESS TANGIBLE — BENEFITS OF PEACE OF MIND AND SECURITY IN KNOWING THAT A RETIREMENT STRATEGY IS SOLID.

One of the benefits of ABLTC is its flexibility. The benefits can allow people to choose how and where they want to receive

care. Long-term care protection can help them avoid spending down personal assets

to pay for their long-term care. With a lifetime benefit option,

they can’t outlive the benefits.


Hunter W. Mills, CLU, ChFCRegional Vice President, John Hancock Insurance


Take advantage of John Hancock ExpressTrack® A fast and easy path to underwriting decisions!

1. Consumers, ages 18-60, initiating their application with a John Hancock proprietary ticket, iPipeline Drop Ticket, or ApplicInt’s Multi-Carrier Ticket, and applying for single life coverage of up to and including $3 million may qualify for ExpressTrack.2. John Hancock will be requesting post-issue attending physician statements (APS) on ExpressTrack cases for quality assurance review purposes.3. Elapsed time to generate underwriting decision from the time Under-writing receives the interview results. Policy issuance is not guaranteed as any life insurance purchase is subject to completion of an application, including health questions, and underwriting approval.For agent use only. This material may not be used with the public.Insurance policies and/or associated riders and features may not be available in all states.Insurance products are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595.LIFE-9965 04/20 MLINY041320090

For more information, contact your local John Hancock salesperson.

ExpressTrack offers key advantages to eligible clients1:

NO in-person medical screenings

NO lab work

NO pre-issue medical requirements2

Underwriting decision in as little as 3 days3

What You Need to Know About the SECURE Act

The “SECURE” Act was effective as of January 1, 2020 and the provisions of interest include:

• RMDs from qualified plans are to begin when a taxpayer turns 72 (instead of 70½)

• Tax deductible contributions to IRAs after 70½ are now allowed

• Employers must include long-term, part-time workers in employer-provided qualified plans

• Defined contribution plan (401(k), profit sharing, etc.) and IRA balances must be distributed by the end of the 10th year after the employee or IRA owner dies, with some limited exceptions

This last item is getting a great deal of attention. Under prior law, any individual who inherited an IRA had the option to stretch distributions over his or her life, so the 10-year limit for beneficiaries is a notable and important change in the law.

Consequently, financial professionals should use this opportunity to reach out to clients.

For more information, call Advanced Markets at 888-266-7498, option 3 AMC or option 4 Attorney. n

This material does not constitute tax, legal, investment or accounting advice and is not intended for use by a taxpayer for the purposes of avoiding any IRS penalty. Comments on taxation are based on tax law current as of the time we produced the material.All information and materials provided by John Hancock are to support the marketing and sale of our products and services and are not intended to be impartial advice or recommendations. John Hancock and its representatives will receive compensation from such sales or services. Anyone interested in these transactions or topics may want to seek advice based on his or her particular circumstances from independent advisors.Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595.


Adam Winslow CEO of Life Insurance, AIG Life & Retirement

Boost your clients’ Life Insurance IQAIG’s Life Insurance IQ Study aims to tackle this life insurance gap and help boost your clients’ knowledge about this important financial product.

Help your clients learn the “Know-What and So-What” on Life Insurance by sharing our educational consumer website that features:

• Fun Fast Facts to test your Life Insurance IQ

• Results from the new AIG Life Insurance IQ Study

• Engaging videos and conversation starters to share with clients

Americans believe life insurance will protect their ability to live a long, financially secure life, yet half don’t have insurance or are unsure if they do.1

1 AIG Life Insurance IQ Study, March 2020

Policies issued by American General Life Insurance Company (AGL), Houston, TX except in New York, where issued by The United States Life Insur-ance Company in the City of New York (US Life). Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company. Products may not be available in all states and product features may vary by state. Please refer to your policy.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC DISTRIBUTION.

AGLC200357 © 2020 AIG. All rights reserved.

Test your knowledge AIG.com/LifeIQ

As Americans Assess Their Financial Plan, Help Them Account for Protection

Earlier this year, AIG Life & Retirement released the results of our Life Insurance IQ Study. We found 70% of Americans equate life insurance with a long, financially secure life. Yet, roughly half do not have or are unsure if they have life insurance. This leaves them and their families vulnerable to considerable financial risk, especially during uncertain times.

While the death benefit remains the primary reason individuals purchase life insurance, there’s more that life insurance can offer. Our study found 92% of Americans do not recognize the full range of benefits offered with permanent life insurance, which is an important knowledge gap that agents and financial professionals can bridge.

With your guidance, clients can take advantage of permanent life’s living benefits by, for example, building a supplemental retirement income stream or covering long-term costs (which can be achieved through accessing policy’s cash value, taking out a policy loan or through a chronic illness rider).

For more information as well as useful resources for your clients, visit aig.com/LifeIQ. n

AIG Life & Retirement includes American General Life Insurance Company (Houston, TX), The United States Life Insurance Company in the City of New York, and The Variable Annuity Life Insurance Company (VALIC), Houston, TX as well as their affiliates. Securities products are distributed by AIG Capital Services, Inc., member FINRA. All are members of American International Group, Inc. (AIG).


Gary Proco Sales Vice President, North American Company for Life and Health Insurance

Help your clients build a stronger futurethrough life insurance.

Did you know.. .

the average 401(k) balanceis $103,700*

Would that be enough foryour clients to retire on?

While the primary purpose of life insurance is to provide a death benefit to beneficiaries, the potential for cash value growth can also make life insurance an attractive choice to help supplement retirement income.

Visit engage.northamericancompany.com/iul for a client-friendly resource to show the benefits of indexed universal life insurance.

Indexed universal life products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.*Average in March 2019 for Fidelity 401(k) accounts. Source: https://www.nerdwallet.com/article/investing/the-average-401k-balance-by-ageSammons FinancialSM is the marketing name for Sammons® Financial Group, Inc.’s member companies, including North American Company for Life and Health Insurance®. Annuities and life insurance are issued by, and product guarantees are solely the responsibility of, North American Company for Life and Health Insurance.

NorthAmericanCompany.comFOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES. 996NM-3 4-20

?

Will Your Clients Have Enough to Retire?

A well-balanced retirement strategy includes life insurance for multiple reasons, including:

• Death benefit protection• Cash value potential• Opportunity to help supplement retirement income

The indexed universal life (IUL) insurance product from North American, Builder Plus IUL 2, checks all these boxes.

ACCELERATED DEATH BENEFIT ENDORSEMENTBut having enough for retirement isn’t the only key to a well-balanced financial plan. Builder Plus IUL 2 offers an accelerated death benefit endorsement for critical, chronic and terminal illness, which allows the policy owner to accelerate a portion of the death benefit for a qualifying illness.1

See how strong this product is at northamericancompany.com/marketing-toolkit-products. n1 Subject to eligibility requirements. An administration fee is required at

time of election of an accelerated death benefit. The death benefit amount will be reduced by the accelerated death benefit amount. Since benefits are paid prior to death, a discount will be applied to the death benefit amount accelerated. As a result, the actual amount received will be less than the amount of death benefit amount accelerated.

Indexed universal life insurance products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.Agents offering, marketing, or selling accelerated death benefits for chronic illness in California must be able to describe the differences between benefits provided under an accelerated death benefit for chronic illness and benefits provided under long-term care insurance to clients. You must provide clients with the ADBE Consumer Brochure for California that includes this comparison. Comparison is for solicitation purpose only, not for conversions.Sammons FinancialSM is the marketing name for Sammons® Financial Group, Inc.’s member companies, including North American Company for Life and Health Insurance. Annuities and life insurance are issued by, and product guarantees are solely the responsibility of, North American Company for Life and Health Insurance.Builder Plus IUL 2 is issued on policy form series LS183 or state variation, including all applicable endorsements and riders, by North American Company for Life and Health Insurance, One Sammons Plaza, Sioux Falls, South Dakota. 57193. Products, features, riders, endorsements, or issues ages may not be available in all jurisdictions. Limitations or restrictions may apply.


Sherri Finke, CLU, FLMI, ACSRegional Vice President, Legal & General

There is a growing need for life insurance coverage to last beyond the typical 20 or 30 years and well into retirement. Legal & General America provides a solution with a 40-year term option combined with additional term riders. Stacking 10, 15 or 20 years of term coverage on top of a longer duration base policy may be the most cost-effective way for your clients to buy term life insurance.

A life insurance solution: The term rider advantage

Market Needs

• Debt or obligations continue beyond age 65

• Coverage in later years can be costly

• Limited options for budget-conscious buyers

• Americans are living and working longer

Legal & General America life insurance products are underwritten and issued by Banner Life Insurance Company, Urbana, MD and William Penn Life Insurance Company of New York, Valley Stream, NY. Banner products are distributed in 49 states and in DC. William Penn products are available exclusively in New York; Banner does not solicit business there. The Legal & General America companies are part of the worldwide Legal & General Group. Banner OPTerm policy form # ICC18-OPTC and state variations. In New York, William Penn OPTerm policy form # OPTN-NY. Additional Insurance Riders available on OPTerm form # ICC11 AIR (William Penn form # AIR (1-11)) and state variations, can provide temporary life insurance coverage for 10, 15 or 20 years after which coverage ceases. Term Riders issue ages vary from base plan. OPTerm premiums are guaranteed to stay level for the initial term period and increase annually thereafter. OPTerm 35 and 40 are not available in New York. Two-year contestability and suicide provisions apply. Policy descriptions provided here are not a statement of contract. Please refer to the policy forms for full disclosure of all benefits and limitations. 20-151

Current products don’t always meet customers’ needs:

Learn more by visiting www. lgamerica.com/advisor/marketing/term

The Term Rider Advantage

There is a growing need for life insurance coverage to last beyond the typical 20 or 30 years and well into retirement. Legal & General America provides a solution with a 40-year term option combined with additional term riders. Stacking coverage on top of a longer duration base policy may be most cost effective. Insurance is not a one-size-fits-all solution and one of the ways to customize coverage is by taking advantage of term riders:

• Term riders can be stacked on top of a base term policy for 10, 15 or 20 years and will automatically drop off at the end of the additional insurance rider coverage period

• When a rider expires, the premium due and total coverage will be reduced by the term rider amount

Are you interested in helping your clients customize their life insurance coverage? Find out if a term rider solution may be right for them by visiting lgamerica.com/advisor/marketing/term. nLegal & General America life insurance products are underwritten and issued by Banner Life Insurance Company, Urbana, MD and William Penn Life Insurance Company of New York, Valley Stream, NY. Banner products are distributed in 49 states and in DC. William Penn products are available exclusively in New York; Banner does not solicit business there. The Legal & General America companies are part of the worldwide Legal & General Group. Banner OPTerm policy form # ICC18-OPTC and state variations. In New York, William Penn OPTerm policy form # OPTN-NY. Additional Insurance Riders available on OPTerm form # ICC11 AIR (William Penn form # AIR (1-11)) and state variations, can provide temporary life insurance coverage for 10, 15 or 20 years after which coverage ceases. Term Riders issue ages vary from base plan. OPTerm premiums are guaranteed to stay level for the initial term period and increase annually thereafter. OPTerm 35 and 40 are not available in New York. Two-year contestability and suicide provisions apply. Policy descriptions provided here are not a statement of contract. Please refer to the policy forms for full disclosure of all benefits and limitations.


Steve AlloyAdvanced Markets Specialist, Mutual of Omaha

LTC Solutions for Nearly Every Client

453964For producer use only. Not for use with the general public.

Your Mutual of Omaha Solutions

Traditional LTCiA traditional long-term care policy provides the most comprehensive benefits plus valuable built-in services like care coordination. Mutual of Omaha offers two LTC products, MutualCare Secure Solution and MutualCare Custom Solution.

Life Policy with LTC RiderA life insurance policy with an LTC rider may appeal to people who are looking to cover long-term care funding needs and provide a legacy for the ones they leave behind. Mutual of Omaha offers an LTC rider on Income AdvantageSM and Life Protection AdvantageSM IUL policies.

LifeMedicare SupplementCritical IllnessI N S U R A N C E

As the need for long-term care services increases, having multiple LTC solutions ready is good for you, and for your clients. Mutual of Omaha is the only carrier that offers a full suite of long-term care planning solutions.

Chronic Illness RiderAs a back-up to the LTC rider, we offer a Chronic Illness rider for clients who are ineligible for (or choose not to purchase) the long-term care rider. Mutual of Omaha offers a Chronic Illness rider automatically and without any additional upfront cost on IUL policies.

To learn more about our long-term care solutions, contact your marketer.

453964.indd 1 3/3/20 8:50 AM

The Tax-Advantaged Retirement Income Plan

Most business owners would like to provide a retirement benefit to employees, but they often worry about administration requirements, contribution limits, plan costs and the ongoing responsibility of starting a retirement plan.

An agent recently discussed a similar situation with us. Her client was a doctor with a small practice of 10 employees. He only wanted to provide benefits to certain employees, and he also wanted the flexibility to stop contributions in “down years.” This gave the agent an opportunity to discuss using cash value life insurance.

The business owner could “contribute” premiums to a life insurance plan for select employees, and the policy’s cash value gave the employees income potential during

retirement. The premiums would be tax-deductible to the business and taxable as a bonus at ordinary income levels to the employee.

The producer illustrated Income Advantage IUL policies with annual premiums ranging from $10 – $50k. The client loved the concept and started by purchasing two policies, each over a $1 million face amount.

If you have business owner clients who would like to create the opportunity for tax-advantaged income in retirement for their employees, contact Mutual of Omaha’s Advanced Markets team at 800-693-6083 or [email protected]. n


Bryan Pritchard, MBAAdvanced Sales Specialist, National Life Group


TC114034(0420)1 Cat No 105139(0420)

National Life Group® is a trade name of National Life Insurance Company (NLIC), Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison, TX and their affi liates. Each company of National Life Group is solely responsible for its own fi nancial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York.

The companies of National Life Group® and their representatives do not offer tax or legal advice. Please encourage your clients to seek tax or legal advice from their appropriate professional advisor.

For Agent Use Only – Not For Use With The Public

Securetheir legacy.

105139(0420)_Advanced Sales Idea_ Solutions for the SECURE Act_AD.indd 1105139(0420)_Advanced Sales Idea_ Solutions for the SECURE Act_AD.indd 1 4/15/20 12:44 PM4/15/20 12:44 PM

Secure Your Client’s Estate Planning Goals

The purpose of the SECURE Act was to improve retirement security for Americans who are living and working longer, who may not have access to employer retirement plans and have evolving retirement needs.

Under SECURE, one of the biggest changes is the elimination of the lifetime stretch on inherited IRA and 401(k) accounts. Many beneficiaries must now deplete their inherited account within 10 years of the original account holder's death. While there are some instances where the stretch is permitted, most individuals have lost this tax efficient way to transfer wealth.

National Life Group has identified several strategies to help mitigate the impact on estate planning goals.

Contact us today to see how National Life can help clients:

• Leave a legacy to their beneficiaries• Potentially improve their retirement income• Meet future charitable goals

Learn more by calling 802-229-3387 or emailing [email protected]. n


David Soczek, CLU, ChFCVice President, National Benefits Group

Working with National Benefits Group

NATIONAL BENEFITS GROUP, OR NBG, IS A CONSULTING AND THIRD-PARTY ADMINISTRATION ORGANIZATION DEDICATED TO ASSISTING PRODUCERS AND THEIR CORPORATE CLIENTS WITH THE DESIGN AND ADMINISTRATION OF NON-QUALIFIED AND SUPPLEMENTAL BENEFIT PLANS. FOR MORE THAN 50 YEARS, WE HAVE SERVED THE NEEDS OF OUR CLIENTS AND THEIR KEY EMPLOYEES TO DEVELOP SOLUTIONS TO THE FOLLOWING FUNDAMENTAL BENEFIT CHALLENGES:

Client Issues• • Recruiting, rewarding, retaining key employees

• • Correcting deficiencies in current plans

• • BOLI & COLI plans and reviews

• • Asset repositioning

• • Business owners getting the most out of their business and its succession

• • Supplemental retirement income plans

• • Estate planning for business owners

NBG understands that you are the relationship manager. Depending on your needs as a producer, NBG will be your Corporate Owned Life Insurance (COLI), Bank Owned Life Insurance (BOLI), non-qualified plan and advanced life insurance consultant and back office. By partnering with NBG, you’ll have the opportunity to create additional revenue, while staying focused on your core practice.

Common Solutions• • 162 Bonus plan

• • Non-qualified deferred compensation

• • Phantom stock plan

• • Split-dollar plans

• • Supplemental Employee Retirement Plans (SERP)


Strategic PartnershipsWe define a strategic partnership as a trusted alliance wherein we support each other to develop services, gain clients and generate revenues. You can utilize NBG as needed to expand products and services without requiring you to incur the costs of development and maintenance. This successful collaboration creates competitive advantages within the market.

• • NBG offers services tailored to the unique needs of your business, as well as enhancing your relationships

• • As your back office, we act as an extension of your staff, which adds to your capabilities at no additional cost

• • In order to offer the best service without interruptions, we work jointly with you and your client

- You are continuously updated and involved in all aspects of the plan, which often results in stronger client-producer relationships

• • Operate under a revenue share arrangement

• • Support throughout a case, both pre– and post–sale

• • NBG provides resources that producers need to be fully educated in identifying opportunities with current clients and be able to identify when new ones arise

- Phone calls, marketing materials and webinars are examples of the educational tools you will have to feel prepared in all plan concepts

Roles and Services• • Consultant and technical specialist

• • Education on plan structures

• • Analysis and advanced case design

• • Financing and product management

• • Underwriting and risk assessment

• • Implementation and case management

• • Plan administration

• • Plan and funding reviews

• • Prospect identification

• • Marketing initiatives

The most important part of a strategic partnership with NBG is the long-standing relationship. NBG commits itself to the pursuit of meaningful partnerships.

Interested in discussing a case? Call National Benefits Group at 952-449-4030. n


For 25 years, Secura Consultants has been

assisting advisors in protecting their clients

against the economic impact of disability.

We are guided by our Core Values and deeply

believe in the importance of our work.

Secura Consultants, in partnership with First

Protective, offer Disability Income Protection

solutions for every stage of life.

Learn more at: https://securaconsultants.com



Carter KowalskiAccount Manager, Secura Consultants

The Need for Disability Income Protection: Not Just for Challenging Times

AS I WRITE THIS ARTICLE, OUR NATION IS UNDERGOING A SIGNIFICANT EVENT DUE TO CORONAVIRUS. CERTAINLY, YOUR CLIENTS ARE EXPERIENCING STRESS AND POSSIBLY INCOME LOSS. IT MAY BE EASIER NOW FOR THEM TO IMAGINE A LONG-TERM INCOME LOSS. DON’T HESITATE TO REACH OUT TO THEM AND OFFER RISK MANAGEMENT STRATEGIES!

Disability Income Protection, or DI, is important for every client who needs their salary to maintain their lifestyle. DI may be a topic that comes up during challenging or difficult times, but the need for DI is also important to discuss during the good times too. Consider this hypothetical conversation:

THE GOOD TIMES — JOB PROMOTION SCENARIO Agent Steve: Hi Jessica, how are you doing?

Client Jessica: Great! I just received a promotion and a raise. Now with more income, I’m thinking about buying a new house and increasing my investments.

Agent Steve: That’s wonderful! You increased your life insurance policy the last time you were in. It is important for you to consider the disability insurance we discussed.

Client Jessica: I remember you brought up DI before, but my husband and I don’t need it with our combined incomes.

Agent Steve: The more income you have, the greater the loss when you suffer from an accident or illness and are no longer able to work.

Client Jessica: We have plenty of savings that will cover any losses due to missing a bit of work if I break my arm or something.

Agent Steve: DI isn’t for those situations. DI is for the longer-term income loss caused by things like a degenerative or chronic disease or the effects of a significant accident, like a brain injury from a fall. We want to make sure you have a plan if you were unable to work for a number of years.

Client Jessica: We could fall back on my husband’s income and dip into our retirement fund.

Agent Steve: That might work for a while, but the reality is that a disability for one spouse will impact the other spouse’s ability to work. Who will be caring for you? Taking you to your medical appointments, looking out for the kids?

Client Jessica: Well, maybe it is something we should consider.

Agent Steve: I know this is a good decision for both of you. Over 30% of people will be disabled for 90 days or more before age 65. Assuring your family remains economically viable will give you the time and peace of mind to focus on recovery. Plus, it is not unreasonable to see a situation where you both may be out of work at the same time, for instance an accident in the same car.

Let me gather some information to make sure the ideas I bring you are available for us to implement. n


COVID-19 IMPACT

Jessica M. Friedman, J.D., LL.M. Douglas I. Friedman, J.D., CLU

For your need a partner I can trust side. • Solutions for estimating and covering health care and long-term care costs

• Strategies for Social Security filing and retirement income planning

• Market insights to help guide client conversations and investment decisions

See how we can help at nationwidefinancial.com.

For your many sides, there’s Nationwide.®mutual funds | annuities | life insurance | retirement plans

Nationwide® has products and resources to help meet complex investment and retirement challenges.

This material is not a recommendation to buy, sell, hold or roll over any asset, adopt an investment strategy, retain a specific investment manager or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. Investors should discuss their specific situation with their financial professional.The Nationwide Group Retirement Series includes unregistered group fixed and variable annuities and trust programs. The unregistered group fixed and variable annuities are issued by Nationwide Life Insurance Company. Trust programs and trust services are offered by Nationwide Trust Company, FSB. Nationwide Funds are distributed by Nationwide Fund Distributors LLC, member FINRA, Columbus, Ohio. Nationwide Life Insurance Company, Nationwide Investment Services Corporation and Nationwide Fund Distributors are separate but affiliated companies.Products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor for variable products is Nationwide Investment Services Corporation, member FINRA, Columbus, Ohio. Nationwide, the Nationwide N and Eagle, Nationwide is on your side and For your many sides, there’s Nationwide are service marks of Nationwide Mutual Insurance Company. © 2020 Nationwide

NFV-1318AO.6 (05/20)

Coronavirus: How Will the Life Insurance Industry Survive?

UNCERTAINTY HAS BEEN A COMMON THEME SINCE THE COVID-19 PANDEMIC SWEPT THE GLOBE. NO ONE KNOWS HOW THE CORONAVIRUS WILL IMPACT MORTALITY RATES. WE ALSO DON’T KNOW HOW LIFE EXPECTANCY WILL BE IMPACTED. WHAT WE DO KNOW IS THAT INSURERS ARE CHANGING THE WAY THEY DO BUSINESS.

UNDERWRITING CONSIDERATIONSSome parameds no longer are willing to do in-home visits. Sometimes it’s the client who doesn’t want the paramed in their house for fear of infection. As a result, some insurers are issuing policies for higher face amounts without requiring an exam.

To make up for lack of testing, underwriters are doing a

“deep dive” into each client’s medical records– requesting prescription records which may not have been requested previously or accessing the client’s online medical portals. And the underwriters are making discoveries! One underwriter recently found that what was reported as a “cold” turned out to be a positive COVID-19 test for which the client had been placed in isolation.


COVID-19 IMPACT

INTRODUCING A FINANCIAL SERVICES COMPANY THAT’S HELPED PEOPLE LOOK AHEAD FOR 160 YEARS.equitable.com/resources-life

Equitable is currently the brand name of Equitable Holdings, Inc. and its family of companies, including AXA Equitable Life Insurance Company (AXA Equitable) (NY, NY); AXA Advisors, LLC (member FINRA, SIPC); and AXA Distributors, LLC. The 160-year history reference applies exclusively to AXA Equitable Life Insurance Company. GE-2870125 (1/20)

ACTUARIAL CONSIDERATIONSActuaries are making projections about the possible effects of unanticipated claims on their companies’ bottom lines. They are aware of the loosening medical requirements at the underwriting level. They are also coordinating their work with their investment departments in view of the volatile stock markets.

AGENT CONSIDERATIONS Agents should learn as much as they can about their clients before submitting an application. No one wants to submit an application and have it rejected, particularly at a time when insurers are making sweeping changes.

• Has your client traveled out of the U.S. this year or do they have plans to go anywhere before the end of the year? Insurers across the board are postponing these cases and will not consider them currently. Also, the risk of insuring a client age 70+ has increased, and these cases are being postponed.

• Is your client on any medications that will cause a raised eyebrow or second look from an underwriter? Many common medications, such as methotrexate for rheumatoid arthritis, are known to lower immune response.

• Does your client have an underlying medical condition? Current information indicates that people with cancer, heart disease and diabetes have a higher mortality rate with the coronavirus. We have been told that most insurers are limiting their ratings to Table 2, whereas previously the insurer would go up to Table 8.

• Does your client have a history of any mental/nervous conditions? Applications for these clients may be scrutinized more closely. There is a common belief that the effects of stay at home orders and social distancing may exacerbate existing mental/nervous conditions and lead to development of new mental health conditions.

We encourage agents to call underwriting before submitting an application and discuss any potential issues before they become roadblocks. n

This article is not intended as legal or tax advice. The customer must get legal or tax advice from their own advisors.


Rachel Smith, CLUDirector of Internal Sales, First Protective

COVID-19 IMPACT


This pandemic makes me feel like I’m back in the deep end without a vision for what happens next. But just like doggie paddling, we’ve quickly learned how to continue protecting our clients while staying in our homes and social distancing. During these unprecedented times, I’ve seen several best practices emerge that will positively shape our business in the future.

STRENGTHENING RELATIONSHIPS WITH VIDEOThe first thing that changed when the coronavirus hit was our meeting format. We all became accustomed to live video chats. Most of our clients have mastered the use of FaceTime, and many others have participated in virtual discussions with multiple people using platforms like Zoom. Video has been valuable to convey non-verbal communication and helps maintain relationships even though we’re physically distant. It also allows you to bring in outside experts to join the virtual meeting, delivering a personalized, high-touch experience.

Getting comfortable with video tools can open new doors in the future. You can feel more confident about contacting clients that live far away, reaching out to prospects or even connecting with your busiest clients that just can’t get to your office.

ACCELERATING BUSINESS ONLINEThe next biggest hurdle has been submitting business. Carriers have been scrambling to deliver a positive online experience to better support your business. Digital platforms auto-populate a lot of information and ensure all required fields are complete. In addition to streamlining processes, online submissions also eliminate human error and support accuracy.

Some agents have asked when to complete a short application, or drop ticket, instead of a full electronic

application. To help clarify, drop tickets are generally recommended for healthy, uncomplicated cases and usually require a phone interview. For complex cases, a full application is recommended to upload documents like cover letters, respond to in-depth health questions and uncover potential issues before they arise later.

If you haven’t placed a digital policy yet, I encourage you to submit one. Online submission allows you to complete paperwork in about half the time, which means that you can get policies placed quicker! And there are more options for electronic policy delivery, speeding up the process from submission to commission.

LOOKING AHEADThink of 2020 as a year to try new ways of doing business. Now is the time to flex your innovation muscles and build momentum for future success. Keep in mind that we’re all swimming in the deep end together, so don’t hesitate to connect with us for support or guidance.

I know we’ll make changes that have a positive impact on our business today and we’ll carry them with us moving forward. As Henry David Thoreau wisely put it, “Never look back unless you are planning to go that way.” n

Flex Your Innovation Muscles

SELLING LIFE INSURANCE PRODUCTS DURING A PANDEMIC REMINDS ME OF MY FIRST SWIM LESSON. WITHOUT ANY WARNING, A FAMILY MEMBER THREW ME IN DEEP WATER WITH NO FLOATIES, TOLD ME TO PADDLE AND I WONDERED IF I WAS GOING TO MAKE IT.

Video has been valuable to convey non-verbal communication and helps

maintain relationships even though we’re physically distant. It also allows you to

bring in outside experts to join the virtual meeting, delivering a personalized,

high-touch experience.


Ronnie Hamilton, CFP, CLU, ChFC Advanced Planning Specialist, First Protective


Are You Leaving a Legacy or a Tax Burden?

TRUE TO ITS NAME, THE SECURE ACT (SETTING EVERY COMMUNITY UP FOR RETIREMENT) CREATED MORE OPPORTUNITIES TO SAVE FOR RETIREMENT WITH QUALIFIED PLANS. BUT THE FOCUS OF THIS ARTICLE IS THE POTENTIAL NEGATIVE TAX IMPACT THAT ONE PROVISION OF THE ACT CAN HAVE FOR SOME CLIENTS WITH LARGE IRA ACCOUNTS.

REVISED AGE LIMITSThe age limit for traditional IRA contributions was removed, allowing people over age 70½ to contribute to their retirement plan. The Act also increases the required minimum distribution (RMD) age from 70½ to age 72.

For additional context, the IRS plans to decrease the RMD percentage amount beginning next year. This is separate from the SECURE Act, but it’s also being adjusted to accommodate longer lifespans.

ELIMINATED STRETCH IRAsTo help pay for these improvements, the SECURE Act eliminated stretch IRAs. Inherited retirement account distributions must now be taken within 10 years, including Roth IRAs. Simply as background, stretch IRAs were a popular wealth transfer strategy that named children or grandchildren as beneficiaries, allowing the IRA balance to grow tax-free for a long time.

OPPORTUNITIES FOR LIFE INSURANCE SOLUTIONSThe combination of these improvements can create a larger IRD (Income with Respect to the Descendent) tax liability for non-spouse IRA beneficiaries. However, there are several ways to leverage IRA assets using life insurance solutions that can maximize value for your clients.

While these strategies are not for every client, they offer three important benefits:

1. Client maintains control of the IRA

2. After-tax value of the legacy is maximized

3. Little to no investment risk

If you have clients who might be a good fit for IRA maximization, connect with me to discuss their case. n

Income Tax Offset

An IRA owner purchases life insurance equal to the amount of the projected IRD taxes, helping the IRA beneficiary

pay, or offset, the tax. RMDs or voluntary withdrawals can be used to pay policy premiums.

Income Tax Elimination An IRA owner names a charity as the

IRA beneficiary and buys life insurance equal to the projected IRA value. The

children inherit the tax-free death benefit, and the tax-exempt charity

receives the IRA assets. RMDs or voluntary withdrawals can

be used to pay the premiums.

Beneficiary Max An IRA owner withdraws the annual earnings from the IRA and uses the net after-tax amount to purchase a life insurance policy. The children are

named as beneficiaries of the IRA and the life policy, thus maximizing

their inheritance.


Misty McMinn, AAPAAsset and Wealth Management Manager, First Protective

1Annuity 2012 Mortality Tables. ©2017 Morningstar. All rights reserved.

Guaranteed Income Value

Age Income Base Lifetime Benefit Amount

60 $100,000 $4,500

61 $105,000 $4,725

62 $110,250 $4,961

63 $115,763 $5,209

64 $121,551 $5,470

65 $127,628 $7,339

66 $134,010 $7,706

67 $140,710 $8,091

68 $147,746 $8,495

69 $155,133 $8,920

70 $162,889 $10,995

Based on $100,000 premium for a 60-year-old male with a 5% compound roll-up rate. Benefit based on annual income.

Solve a Retirement Savings Gap with Guaranteed Income

THE POSSIBILITY OF SPENDING 20, 30 OR EVEN 40 YEARS IN RETIREMENT IS HIGHER THAN EVER. IN FACT, THERE’S A 75% CHANCE THAT TODAY’S 65-YEAR-OLD WILL LIVE WELL INTO THEIR 80S.1 HELP YOUR CLIENTS DEVELOP A PLAN FOR RETIREMENT INCOME THAT WILL LAST, NO MATTER HOW LONG THEY LIVE.

SOLUTIONS FOR INCOME IN RETIREMENTThere are many ways to generate income in retirement, such as private pensions, Social Security, qualified plans, brokerage accounts and annuities. However, there aren’t many vehicles that offer guaranteed income for life other than annuities, if structured properly.

There are several annuity options that can provide guaranteed income, based on your clients’ needs. A single premium immediate annuity (SPIA) would be a solid contender, providing income that your clients can’t outlive. Additionally, deferred annuities, like fixed or indexed products, offer growth potential, access to funds, principal protection, tax benefits and income for life.

INCOME RIDERS PROVIDE ADDITIONAL FLEXIBIILITY For an additional cost, adding an income rider to a deferred annuity policy can provide a flexible lifetime income stream that clients can use now and in the future. Income riders vary by product and carrier, but they all have the same core function.

During the accumulation phase of the annuity, the principal grows in line with the fixed rate or indices’ return, selected by the client at the time of purchase. The income base will typically grow at a guaranteed rate that will compound during the deferral years and offer a roll-up rate and bonus at issue. Growth could also be based on an accelerated rate of the actual return of the indices.

VARYING INCOME BASED ON AGEThe amount of guaranteed monthly income depends on an age-based table for a single or joint life. Clients can choose

a rising income option that will help them keep up with inflation. For example, even if the value of the annuity falls to zero, clients could still receive income for life. Clients can also add their spouse to receive the same benefits, even with qualified funds.

Unlike a SPIA, clients maintain control of the assets in their deferred annuity, even during the payout phase. There are many annuity solutions that can give your clients confidence in their retirement plan, especially as lifespans continue to increase. Help your clients build their retirement income with the power of guaranteed income.

Connect with me to develop an income strategy that fits your clients' retirement planning needs. n


Greg RoventiniNational Sales Manager, First Protective


While strong producer relationships are an important focus, it’s not entirely unique. I could poll many brokerage general agencies today, and they could all say they’re relationship centric. So, how do we set ourselves apart? It comes down to our people and our process.

OUR PEOPLEThroughout this issue, we highlight the people of First Protective and the specific departments they represent. Our entire team is dedicated to your success and satisfaction. I have the privilege to lead our field-based consultants, the Regional Directors, who have extensive industry experience and a tremendous ability to help agents grow and develop a sustainable risk management practice.

OUR PROCESSWe do more than help agents execute a sale. Our industrial strength is our ability to tailor the right approach to working with you, your business and your clients — whether your need is specific to a single case or you need support creating new opportunities to build your practice.

There are six steps to our consulting process:

1. Discovery 2. Planning 3. Profiling 4. Concept Design 5. Solution Delivery 6. Review

When you first engage with us, we start down a path of discovery to identify your needs, goals, client demographics and experience to shape the potential scope of our relationship. If you choose to work with us, we’ll then start developing a plan for how we work together, outlining your key business goals and specific activities that we can collaborate on to achieve. From there, we’ll help you profile your clients and prospects to uncover opportunities and then we’ll recommend specific risk management concepts that solve their needs.

Our solutions are carrier-agnostic, and we’re committed to helping you find the best solution for your client, coaching you on how to position it and supporting you at the point-of-sale. Lastly, effective planning requires a review process, and we coordinate this on an ongoing basis to make sure we’re helping you achieve your business goals.

SUPPORT DESIGNED FOR YOUEvery agent is different, and we realize that many agents want varying levels of support. That’s why we developed three relationship paths: strategic, selective and supportive. Each path is built to reflect the level of support you need from us to grow your business.

I encourage you to have a conversation with your Regional Director to determine which path aligns best with your practice. By working together, I am confident that you can develop a strong risk management practice, create revenue predictability, increase client satisfaction and improve the enterprise value of your business. n

The Value of Our Consultative Approach

I’VE ALWAYS BEEN A BELIEVER THAT RELATIONSHIPS ARE OUR MOST IMPORTANT ASSET. AT FIRST PROTECTIVE, THE RELATIONSHIPS WITH OUR PRODUCERS HAVE BEEN HELD TO THE HIGHEST STANDARD SINCE OUR FOUNDING OVER 30 YEARS AGO. THAT FOCUS ON RELATIONSHIPS IS WHAT DREW ME TO FIRST PROTECTIVE.

STRATEGIC

SUPPORTIVE

SELECTIVE

Type of Relationship

Teaming up to find and create opportunities for your clients and your business by driving higher-end wealth and risk management strategies on a regular schedule and expanding your practice with a mutual business plan.

Help find opportunities by introducing wealth and risk management strategies to your clients on a periodic basis.

Traditional service and support as needed for wealth and risk management opportunities discovered by you.


Get Appointed with Our Carriers

OUR TEAM OF EXPERIENCED CONTRACTING AND LICENSING PROFESSIONALS MAKE IT EASY FOR YOU TO DO BUSINESS WITH US. IN ADDITION TO ASSISTING YOU WITH APPOINTMENT PROCESSING, WE CAN ANSWER YOUR QUESTIONS ABOUT ANTI-MONEY LAUNDERING (AML) TRAINING AND CONTINUED EDUCATION (CE) REQUIREMENTS.

Angela WrightSenior Licensing Administrator, First Protective

ONE-TIME CONTRACTING PROCESSBecause most carriers require pending business before appointing a new agent, we will request your appointment when you submit a new business application for a carrier that you’re not appointed with yet. Our contracting team speeds up the process by keeping your information on file, such as:

• Standard appointment questions• E&O coverage documentation• Electronic signature

Get a contracting packet several ways, including:

1. Download it from FirstProtective.com

2. Email [email protected]

3. Call us at 800-876-3950

Once you submit your one-time contracting packet, our team will set you up in our online system. You will receive an email confirming all paperwork has been received which will include instructions on how to register for FirstProtective.com.

Keep in mind that some states require pre-appointment before an application can be submitted. For a list of states that require pre-appointment, visit our Contracting page on FirstProtective.com.

An insurance appointment request, depending on the respective carrier, may take 10 to 14 business days to process for approval. This could take longer during the current COVID-19 pandemic. You will receive an email with your agent code to confirm your appointment credentials.

LONG-TERM CARE PARTNERSHIP PROGRAM REQUIREMENTS If you are interested in offering long-term care (LTC) or linked-benefit products with an LTC component, there may be additional training requirements before you can market these solutions to individuals.

For policies to meet Long-Term Care Partnership Program requirements, most states require licensed agents to complete an eight-hour training program and to re-certify every two years. Some states require a four-hour refresher course after two years. You can take the course through most accredited CE providers.

The Long-Term Care Partnership Program is a federally supported, state-operated initiative that allows individuals who

purchase a qualified long-term care policy to protect a portion of their assets and still

qualify for Medicaid coverage.

ANNUITY TRAINING REQUIREMENTS To support the best interest of your clients, many states and carriers require training be completed before annuity solutions can be sold. Before selling annuity products, a four-hour CE course and carrier-specific training are required.

Carrier training is often a PowerPoint presentation on product features. You may need to answer questions at the end to document understanding.

If you are unsure as to whether you have completed the required annuity and/or long-term care training(s), please



Contracting FAQs

What information do I need to complete the contracting kit? To complete your contracting kit, you will need the following information:

• Current certificate of E&O

• Current AML training certificate

• Long-Term Care CE Certificate

• Annuity Training CE Certificate

• EFT form and Account Information

• Complete ALL the blanks

• Sign ALL the forms

What is a commission assignment? When commissions are assigned to an agency, you as the agent still get the associated 1099.

What’s the difference between an agent and a solicitor? If you work for an agency and the agency receives your commissions and then pays you, you are considered a solicitor. In this type of arrangement, the agency “owns” the business. This is common for banks and financial institutions.

What if I answer “yes” to a background question? You will need to provide a detailed explanation about the event(s), consequences and dates of each event. Please be sure to give all the details even if that means attaching a separate sheet.

Can I get advanced commissions? Requests must be approved by your Regional Director. Some of our carriers do allow for commission advances. This is based on the carrier’s review of your credit and production history. Unfortunately, First Protective cannot co-sign for commission advances.

How do I get set up for EFT commissions? EFT allows you to get your commissions faster and usually more frequently. You will receive an EFT form in your contracting kit. If you’re already contracted, contact First Protective’s Contracting Department and request a form. With this form, we can assist you in getting EFT set up with all participating carriers.

reach out to a member of our team before dating an application. A Contracting Specialist will verify for you whether training has been completed. If training has not been completed, they will provide you with step-by-step guidance on how to complete that process.

KEEP YOUR INFORMATION UPDATEDMoved recently? Be sure to notify Contracting of any address, phone, and/or email change(s). On your behalf, a member of our team will then work with the various carriers to have your contact details updated in their records. n




Have trouble accessing MyProtective.com? Call their support desk at 877-778-3500, option 2.

CONNECT WITH ME FOR SUPPORT

Digital Tools to Accelerate Your Business TO EFFECTIVELY DRIVE REVENUE, YOU NEED INTEGRATED PLATFORMS THAT STREAMLINE WORKFLOWS AND ACCELERATE PROCESSES. OUR TOOLS ARE DESIGNED TO IMPROVE YOUR BUSINESS AND HELP YOU BETTER SERVE YOUR CLIENTS.

Sign in to FirstProtective.com to learn more about our enhanced digital platforms that can help keep your business moving efficiently.

DATA SECURITYControls that safeguard customer information with a dedicated IT security department that oversees our infrastructure. We only work with HIPAA compliant third-party vendors and carefully assess their security systems.

ONLINE INTEGRATIONSKeep your business moving with our web portal at FirstProtective.com. Access a variety of business processing tools like term life quotes, drop ticket order entry and case status, as well as educational resources that focus on specific risk management concepts.

SOFTWARE TO SIMPLIFY ILLUSTRATIONSDemonstrating the benefits of risk management solutions can be cumbersome and overwhelming for clients. Use our software platforms to simplify complicated illustrations and build client confidence in your recommended strategies.

Roche Smith Tech Support Analyst

• Checking case status online

• Drop ticket application systems

• Secure email setup

• Web portal issues at FirstProtective.com

Call me at 800-943-9640.



CONNECT WITH US FOR SUPPORT

Life Solutions Team LIFE INSURANCE IS PRIMARILY USED FOR ITS PROTECTION BENEFIT, BUT IT CAN ALSO BE AN EFFECTIVE TOOL FOR GUARANTEED INCOME, WEALTH TRANSFER AND ESTATE PLANNING. WE CAN HELP YOU SHOW CLIENTS HOW POWERFUL LIFE INSURANCE CAN BE.

ACCESS TO LEADING SOLUTONSWith access to more than 30 life insurance carriers and their wide array of solutions, it can be challenging to keep up with the latest product updates and specifications. We can help you cut through the noise and identify competitive solutions that address each client’s protection needs.

PERSONAL GUIDANCE Our team is here to help you navigate life insurance strategies from straightforward term policies to more complex, fully underwritten permanent solutions. Connect with us anytime to develop tailored recommendations for your clients.

Our team will respond to quote requests within 24 hours and generally complete them on the same business day. Together, we can address more of your clients' protection needs.

Janet Warren, ACS Life Marketing Assistant

[email protected]

Rachel Smith, CLU Director of Internal Sales

[email protected]

Lisa Bowles Life Marketing Assistant

[email protected]

Dwayne Eaton, ACS, ALMI Life Marketing Assistant

[email protected]

Lisa Holston Life Marketing Assistant

[email protected]

Glynda Mathis Life Marketing Assistant

[email protected]

Wendy Vincent, ACS Life Marketing Assistant

[email protected]

• Custom illustrations

• Case design development

• Latest product updates

• Prospecting guidance

• Coaching for new sales concepts

Email us at [email protected].




Underwriting & Impaired Risk Team Our team of experienced, credentialed life insurance underwriters is ready to assist with clients who have medical or other issues that could impact their eligibility and can help you set client expectations. We promote the merits of your case and negotiate directly with decision makers to find competitive policies for your hard-to-place cases.

Connect with us if you have a client with a challenging case, and we can help you navigate the process. Depending on your client’s circumstances, there are several ways we can work with you to develop a risk assessment.

XRAE FOR SMALL FACE AMOUNTS Our XRAE platform walks agents through a dynamic questionnaire and instantly determines the health rating for participating carriers. This program is often used for smaller face amount cases and helps determine the best category and carrier that suits your client’s medical and avocation history.

QUICK QUOTE FOR MORE DETAILED CASESYour case is shopped as an informal submission with our in-house team. We review the client’s medical, financial and avocational information to prepare a detailed underwriting summary. It’s emailed to carriers through a “quick quote” process.

TRIAL APPS FOR COMPLEX IMPAIRMENTSFor complex cases, our team reviews medical records, financial and avocation information to determine which carriers fit your client’s needs and should make the most competitive offer. The comprehensive underwriting file is then sent to select carriers with a detailed cover letter.

If you have clients that meet the following criteria, we can help:

• Alcohol and drug abuse • Hazardous occupations and hobbies • Medical diagnosis, such as cancer, diabetes, heart disease, etc.• Obesity • Stroke survivor• Tobacco use

Sign in to FirstProtective.com and visit our Underwriting page for a library of client health questionnaires and guidelines for specific carriers. There is also a brochure that you can personalize and share with your clients to help them prepare for the medical exam process.

Robin Vigliotte Marketing Underwriter

[email protected]

Beth Schillaci Marketing Underwriter Assistant

[email protected]

• Pre-sale resources

• Solutions for hard-to-place risks

• Setting client expectations



Top 10 Ways to Expedite Underwriting 1 Make sure you’re contracted with the carrier. Many carriers allow “just in time”

contracting, so notify our contracting team as soon as an application is submitted.

2 Complete current applications and supplemental forms (Replacement Form, Temporary Insurance Agreement, 1035 Exchange Form, HIPAA, Agent Report, etc.)

3 Complete ALL questions on the application. Unanswered questions trigger amendments.

4 Provide comprehensive medical information, including doctor’s full name, address and telephone number.

5 Order medical requirements the day an application is completed. Our Case

Management team can handle the process or, if you prefer to order them, tell your case manager the paramed company you used.

6 Make sure all forms are signed and dated by an applicant, policy owner (if different than the insured) and producer.

7 Enter correct information on the application, making sure all contact information is transcribed accurately.

8 Provide comprehensive financial information on EVERY application. For larger face amounts, complete a separate Financial Supplement to accurately reflect all assets.

9 Set client expectations that additional information may be requested during the underwriting process, making it easier to follow up if clarification is needed. Questions often arise from MIB codes, medical records and other underwriting sources.

10 Submit an illustration with each application.

WE CAN HELP DELIVER THE BEST POSSIBLE COVERAGE FOR YOUR CLIENTSIf your case is issued with a different rate class than you applied for, our impaired risk team can investigate. If we determine another carrier might improve your client’s rating, we’ll provide appropriate guidance to help navigate the process.

For qualifying cases, we’ll even review the medical records and submit a quick quote to carriers most likely to underwrite favorably. We’ll also provide alternative quotes, so you can compare both the rating and the premium, because a standard class with one carrier may be the same price as a table 2 with another.

Next time you work with a client who has a complicated medical history, connect with us to identify the best options. n



Case Management Team TEAM UP WITH ACCESSIBLE SPECIALISTS WHO ACCELERATE THE APPLICATION PROCESS BY KNOWING EACH CARRIER’S UNDERWRITING AND DELIVERY REQUIREMENTS AND BY PROVIDING DAILY STATUS UPDATES ON THE WEB PORTAL AT FIRSTPROTECTIVE.COM.

Each agent is assigned a dedicated case manager that serves as a quarterback, taking your cases from application to commission. Our support team can order medical records, coordinate exam requirements and help you move cases through the pipeline.

SUBMIT A NEW BUSINESS APPLICATION ONLINEDrop tickets can be started with minimal client information and some basic information about the case (i.e. replacement details, basic health questions). Once you drop a ticket, the carrier’s call center will reach out to your client to complete a phone interview. The carrier will also order any medical requirements.

Drop ticket cases will typically show up on the pending case list within a week of submission, so don’t be surprised if your application doesn’t appear right away.

CHECK A CASE STATUSAs applications are managed through the underwriting process, all updates and requests are posted to FirstProtective.com for on demand access.

Once you sign in to the case status tool, open advanced search to review cases by name, policy number and status (open, closed or paid). All cases will be displayed and sorted by your search criteria. Click on case links to view details, including outstanding requirements, case manager comments and more. You can respond to your case manager or ask questions online.

Our team proactively reviews carrier status changes and keeps our site updated. At a minimum, we follow up on cases every three to five days depending on the size of the case and the length of time in underwriting. Additionally, we can order paramed exams through APPS-Portamedic and ExamOne or handle APS and MVR requirements. Keep in mind that inspection reports are always ordered by the carrier.

Each agent is assigned a dedicated case

manager that serves as a quarterback,

taking your cases from application

to commission.


CONNECT WITH ME FOR SUPPORT


In addition to checking case status, use this tool to view your state licenses and active carrier appointments through First Protective. Select the Agent Services Menu to view this information.

Contact our team anytime to keep the submission process moving.

OTHER METHODS TO SUBMIT NEW BUSINESS APPLICATIONSAccess application forms from the quote engine tool or in the forms/apps library on FirstProtective.com. Applications can be submitted in multiple ways, depending on your preference:

• Email [email protected] • Fax 205-268-3949 • Mail to: 2501 20th Place South, Suite 300, Birmingham, AL 35223

Once an application is received by our team and is in good order, it is transmitted to the carrier within 24 hours. At this point, your application is assigned a policy number and you can check the status of your pending cases at any time.

Our team proactively reviews carrier status changes and

keeps our site updated. At a minimum, we follow up on

cases every three to five days depending on the size of the case and the length of time

in underwriting.

Ben Martinez Director of Operations

[email protected]

• Application management

• Underwriting and delivery requirements

• Accelerating business through the process

Call us anytime at 800-876-3950, option 2.



Asset and Income Protection Team LEAN ON OUR TEAM FOR EXPERTISE AND GUIDANCE TO DEVELOP ANNUITY AND LONG-TERM CARE STRATEGIES FOR YOUR CLIENTS. THESE SOLUTIONS ARE CRITICAL COMPONENTS OF A COMPREHENSIVE RETIREMENT PLAN, PROVIDING GUARANTEED INCOME FOR LIFE AND PROTECTING THEIR ASSETS AGAINST OVERWHELMING MEDICAL EXPENSES.

We provide product, marketing, sales, case management and operational support. Allow us to team up with you to protect your clients and generate revenue.

ANNUITY STRATEGIES Client income in retirement shouldn’t rely on stock market performance alone. Annuities are one of the few investments that provide an income stream for life with little to no market risk. Help clients diversify their retirement portfolio with predictable income solutions that are guaranteed for life through fixed, indexed and variable annuities.




LONG-TERM CARE STRATEGIESComprehensive financial plans often include strategies for protecting assets. Help clients protect their legacy through hybrid life and annuity solutions that offer long-term care protection and other coverage benefits.

n Asset-Based Long-Term CareThese solutions are typically suited for clients with a net worth between $300K and $3M. There are several appealing benefits, including:

• Steady premium options • Short pay solutions from 2-20 years available • Cash value growth potential • Lifetime income riders • Joint options • Options for simplified underwriting

• Tax-free benefits out of taxable annuity plans • Return of premium options • Funding with non-qualified or qualified assets

Our specialists can walk you through the process and determine how these products can be customized to meet each client's current situation and financial goals.

n Annuity-Based Long-Term CareFor older clients who may not qualify for traditional or asset-based long-term care options, they may be a good candidate for annuity-based long-term care solutions.

Ask our team about these strategies and how to mine your book of business for prospects.

Misty McMinn, AAPA Asset and Wealth

Management Manager

[email protected]

Jacob Ware Marketing Specialist

[email protected]

Alan Parsons Marketing Specialist

[email protected]

Robb Roberts Marketing Specialist

[email protected]

• Custom illustrations

• Case design development

• Latest product updates

• Prospecting guidance

• Coaching for new sales concepts

Email us at [email protected].



Advanced Planning Team OUR ADVANCED PLANNING TEAM INCLUDES TWO CREDENTIALED SPECIALISTS WHO ARE EXPERTS IN BUSINESS INSURANCE, FINANCIAL PLANNING AND WEALTH TRANSFER. WE CAN HELP YOU DEVELOP COMPLEX STRATEGIES FOR HIGH NET WORTH CLIENTS, BUSINESS OWNERS AND EXECUTIVES.

BUSINESS PLANNING In addition to the primary issues everyone faces, business owners also focus on retaining key employees and exit or succession planning. The key in this market is to help business owners prioritize their concerns and then address them in a systematic way.

RETIREMENT PLANNING Since the number of people reaching retirement age is increasing each year, retirement income continues to be an important area of planning. We can help you develop tax-favored strategies like non-qualified deferred compensation, defined benefit plans and using life insurance as a retirement income source.

ESTATE PLANNING The estate tax exemption increased to $5M ($10M for married couples) in 2013, so most clients aren’t concerned about federal estate taxes. However, clients still need to consider life insurance for many other reasons, including state inheritance taxes, estate equalization, legacy planning, replacing lost pension or Social Security income upon the death of a spouse, etc.

FINANCIAL PLANNING Studies have shown that your clients are more likely to feel they are heading in the right direction if they have a plan to reach financial goals. This usually involves the areas of asset allocation, college funding and other family goals. Once you have defined your client’s goals, send the information to us and let our team analyze the data and prepare a plan for your review.

Since the number of people reaching retirement age is increasing each year, retirement income continues to be an important area of planning.




Areas of Expertise

BUSINESS CONTINUATION

• Key Person • Buy-Sell arrangements

EXECUTIVE COMPENSATION• Section 162 Executive Bonus plans • Non-Qualified Deferred Compensation• Supplemental Employee Retirement Plans

(SERPs)• Split Dollar

INSURANCE FOR INDIVIDUALS

• Policy Reviews • Life Insurance Needs Analysis

RETIREMENT PLANNING FOR INDIVIDUALS

• Life Insurance in Retirement Planning (LIRP) • Pension Maximization

ESTATE PLANNING AND WEALTH TRANSFER

• Income in Respect of a Decedent (IRD) • Tax Planning, IRA Maximization Strategies • Irrevocable Life Insurance Trusts (ILITS) • Premium Financing

CHARITABLE PLANNING

• Charitable Remainder Trusts • Wealth Replacement Trusts

FINANCIAL PLANNING

• College Funding • Financial Goals • Asset Allocation

We also have a legal firm on retainer for consultation to help analyze tax and legal aspects of complex case design.

Ronnie Hamilton, CFP®, ChFC, CLU Advanced Planning Specialist

[email protected]

Gail Smith, CLU, AEP, LUTCF Advanced Planning Specialist

[email protected]

• Complex case design and illustrations

• Point-of-sale coaching



CONNECT WITH SECURA CONSULTANTS FOR SUPPORT

• Online quote requests for income protection

• Access to 20+ carriers and leading solutions

• Full policy services

Connect with Secura Consultants at 855-224-5400

Carter Kowalski, DI Account Manager

Secura Consultants

Income Protection Team THE FUTURE IS UNPREDICTABLE, BUT THERE ARE WAYS TO PLAN FOR INCOME NO MATTER WHAT HAPPENS. INCOME PROTECTION ASSURES THE FINANCIAL STABILITY OF YOUR CLIENTS, THEIR FAMILIES AND THEIR BUSINESSES. FIRST PROTECTIVE AND SECURA CONSULTANTS ARE COMMITTED TO HELPING YOU HAVE A POSITIVE AND PRODUCTIVE INCOME PROTECTION CONVERSATION WITH YOUR CLIENTS AND PROSPECTS.

OUR TEAM With over 150 years of combined industry experience, our team provides creative and competitive solutions. Our specialists research the market and provide recommendations on the best options, based on your clients' needs.

We will manage your case submission, working with the carrier underwriting teams to secure the best offers. Finally, we are committed to helping you manage your case in the years to come to make sure the plan you develop today continues to provide the intended financial security in the future.

BROKERAGE CONSULTANTSHave a case that is peculiar or complex? No problem. Brokerage consultants are available to help you and your clients through the decision, underwriting and closing processes from start to finish.

POLICY SERVICES Our policy services are truly a step above the rest. Once a policy is in force, our work is only just beginning. We keep you informed on all opportunities to further enhance financial protection and ensure the policy is maintained to meet your clients’ needs.

Talk to your clients about their income protection plan today and connect with our team to develop tailored solutions to fit their needs.

With over 150 years of

combined industry experience, our team provides creative and competitive solutions.



2021 Elite Producer Conference

St. Regis Deer ParkPark City, Utah

June 27- July 1

Take the trip of a lifetime to Park City, Utah for the 2021 Elite Producer Conference, June 27 – July 1, 2021. We invite those who qualify to escape to the mountainside and explore all the wonders Park City has to offer, while celebrating with other top-performing producers, courtesy of First Protective.

Review qualification details online at firstprotective.com/elite-producer-conference-2021.



REGIONAL DIRECTORS Call your local regional director for point-of-sale support.

Baton Rouge, LA ...................GENE PLAUCHE, II, LUTCF, FSS 225-933-4621

Birmingham, AL ........................CHARLES (T.O.) McDOWELL 205-268-3950

Birmingham, AL ...................................SHELLEY BALIK, CLU 205-639-4021

Chattanooga, TN ......................................... KELLI SANDERS 423-488-6609

Greenville, SC...................... TOMMY DERRICK, CLTC, LUTCF 864-420-3309

Huntsville, AL ...............................ALAN SIMONIS, JR., ChFC 256-536-7448

Huntsville, AL ......................................... JOHNNY FRANKLIN 256-536-7448

Mobile, AL .................................................JAY STUBBS, CLU 251-604-7024

Orlando, FL ................................... ROBERT LEE, CLTC, MBA 407-741-3319

Philadelphia, PA ............................................... JIM GILBERT 205-268-3950

Cherry Hill, NJ .....................................MIKE KULINSKI, FSCP 609-670-9693

CONTRACTING TEAM Read more about the licensing and contracting process on page 36.

Senior Licensing Administrator ...................ANGELA WRIGHT 205-268-4216

Contracting Specialist .................................AMANDA JONES 205-268-7510

Contracting Specialist .....................................DAWN TALLEY 205-268-2638

LIFE SOLUTIONS TEAM Learn about our process and products on page 39.

Life Marketing Assistant ............DWAYNE EATON, ACS, ALMI 205-268-1598

Life Marketing Assistant ............................. GLYNDA MATHIS 205-268-1735

Life Marketing Assistant ......................JANET WARREN, ACS 205-268-3713

Life Marketing Assistant ................................. LISA BOWLES 205-268-3555

Life Marketing Assistant ................................LISA HOLSTON 205-268-1305

Life Marketing Assistant .....................WENDY VINCENT, ACS 205-268-6603

Senior Relationship Manager ........... ....MARCI THARAN, ACS 205-268-5327

INCOME PROTECTION TEAM Find out how we can help on page 48.

Secura Consultants ...............................................................855-224-5400

UNDERWRITING & IMPAIRED RISK TEAM Find out how we can help on page 40.

Marketing Underwriter Assistant ................. BETH SCHILLACI 205-268-7511

Marketing Underwriter ............................... ROBIN VIGLIOTTE 205-268-8164

CASE MANAGEMENT TEAM Learn how we keep your cases moving on page 42.

Case Manager ....................COURTNEY WEAVER, ACS, ALMI 205-268-3716

Case Manager ...............................................DIANA DANIEL 205-268-2224

Case Management Support ....................DONNA HALLMARK 205-268-3979

Case Manager ...........................................FELICIA BROWN 205-268-3818

Case Manager ...................................... JANELLE COLEMAN 205-268-2706

Case Manager ................................... KIM CALDWELL, ALMI 205-268-4532

Case Manager .................................................LORA HAUPT 205-268-1751

Case Manager ............................................MOLLY THOMAS 205-268-4492

Case Management Support .................MARGARET LEE, ACS 205-268-4564

Case Management Support ..........................PAULA KENNEY 205-268-3989

Case Manager .......................................RHONDA FREEMAN 205-268-3306

Case Management Support .............RUTH SNOW, ACS, ALMI 205-268-4650

Case Management Support .........................STEPHANIE HILL 205-268-3939

Case Manager ......................................TERRI WAREMBURG 205-268-5639

Case Manager .........................................TRACY QUENZLER 205-268-1304

Case Manager ........................................CANDICE GRIFFITH 205-268-5551

Case Management Manager .........................WENDY FLOYD 205-268-2056

ASSET & INCOME PROTECTION TEAM Explore our long-term care and annuity strategies on page 44.

Marketing Specialist .................................... ALAN PARSONS 205-268-3616

Marketing Specialist ...........................................JAKE WARE 205-268-8793

Manager ..................................................... MISTY MCMINN 205-268-3654

Marketing Specialist .................................... ROBB ROBERTS 205-268-8780

ADVANCED PLANNING TEAM Learn about complex case support on page 46.

Advanced Planning Specialist .............................GAIL SMITH 205-268-3569

Advanced Planning Specialist ..................RONNIE HAMILTON 205-268-5298

TECHNICAL SUPPORT Read about digital tools that accelerate your business on page 38.

Website Assistance ........................................ROCHE SMITH 800-943-9640

Connect With UsDOING BUSINESS WITH US



COMMISSION ASSISTANCE Call me with questions about commissions or payment schedule.

Financial Analyst .......................LEIGH POUNDS, SILA-F, ACS 205-268-5777

HYBRID LIFE WHOLESALERS Call us for carrier promotions and training events.

Hybrid Regional Director ..........................DANIEL CAMBRON 205-268-2491

Hybrid Regional Director .......KEE-KEE AJIGBEDA, ACS, AAPA 205-268-8781

STRATEGIC RELATIONSHIPS Call me for sponsorship opportunities throughout the year.

Relationship Manager............................. MARJI ABERNATHY 205-268-1279

ADMINISTRATION Call us to address your unique business needs.

President .............................................ERIC P. MILLER, FLMI 205-268-3974

Director of Operations ........................ BENJAMIN MARTINEZ 205-268-4930

Receptionist .........................................BELINDA MARSHALL 205-268-3950

National Sales Manager ............................ GREG ROVENTINI 561-847-6673

Controller .................................................REBECCA MOORE 205-268-5448

Director of Internal Sales .............................. RACHEL SMITH 205-268-3875

Office Manager ...................................... SHELLEY LEOPARD 205-268-3560

Headquarters2501 20 Place South, Suite 300Birmingham, AL 35223

Baton Rouge, LAChattanooga, TNGreenville, SCHuntsville, AL

Mobile, ALNashville, TNOrlando, FLPhiladelphia, PA

OUR FIELD SUPPORT EXTENDS BEYOND THE HOME OFFICE AND SPANS SEVERAL STATES


firstprotective.com

We Built the Back Office

• 24/7 Case Status

• Internal & External Wholesalers

• Dedicated Case Management

• Asset and Wealth Transfer Team

• Attorney Available for Consult

• Advanced Planning Team

• In-house Risk Underwriters

• Policy Review Turnkey Process

• Weekly Training Webinars

• Annual Meetings & Events

• Due Diligence Program

Support. Well Defined.

Life InsuranceAdvanced Case Design

Wealth Transfer SolutionsUnderwriting and Impaired Risk Assessment

Long-Term Care and Disability

Value-Added Relationships

First Protective is a full-service brokerage firm specializing in risk management, headquartered in Birmingham. AL.Neither First Protective nor its representatives offer legal or tax advice. Please consult with a legal or tax advisor

regarding your individual situation before making any tax related decisions.

FPLAG.1590194 03.20

Documents

Rescue Clients From Policy Loans€¦ · annuity expertise. His sales, marketing and distribution responsibilities have spanned independent producer, brokerage, broker- ... Pub P