Life Insurance riders that offer benefits to our clientele for Long Term Care & Home Health Care is the latest cutting edge guarantee in our industry. Allianz Life has products designed to offer the insured the ability to tap into their death benefit, prior to death, receive tax free income, to pay for LTC /HHC expenses. As a producer, you have to be well schooled on this new concept in LTC and Life Insurance Planning.
Most long-term care insurance is purchased as a stand-alone policy, but some companies that sell life insurance now offer riders that provide benefits if your client were to need long-term care. The rider lets your client take "an advance" on their death benefit if long-term care or Home Health Care becomes necessary. The rider makes it possible to accelerate payment of the death benefit in this situation. The death benefit for your client's life insurance policy is reduced by the amount used for LTC expenses, along with a small service charge. If your clients need long-term care for a lengthy period of time, the death benefit will eventually be depleted.
These riders differ from company to company. With some, the policyholder collects a percentage of the death benefit each month. For instance if you sell a $500,000 death benefit and the percentage is 1%. The monthly payout for LTC/HHC is $5,000 per month. The 5K would be deducted dollar for dollar of of the death benefit . With others, long-term care expenses are reimbursed as they are incurred , up to the limit set by the rider.
All Global Insurance Agents should get familar with this concept.
Wednesday, October 7, 2009
Tuesday, August 4, 2009
Please Join NAFA
If you are a licensed insurance professional, it is your obligation to join NAFA now. This organization is having great success in assisting all agents on a national level. Global is proud to be an associate partner.
http://www.nafa.us/
Please join NAFA today. All agents who respond to this blog will be given 10 leads for life insurance prospects in your area.
Good selling,
Tom
http://www.nafa.us/
Please join NAFA today. All agents who respond to this blog will be given 10 leads for life insurance prospects in your area.
Good selling,
Tom
Sunday, July 19, 2009
Great Website for LTC Information
To all LTC producers. I like this site, it has all of the pertinent information related to LTC Insurance. The need for LTC Insurance is greater then ever. Ask all of your clientele whom are 45 & older to take a look at this site.
http://www.longtermcare.gov/LTC/Main_Site/Paying_LTC/Costs_Of_Care/Costs_Of_Care.aspx
Tom
http://www.longtermcare.gov/LTC/Main_Site/Paying_LTC/Costs_Of_Care/Costs_Of_Care.aspx
Tom
Thursday, May 14, 2009
MODIFIED ENDOWMENT CONTRACT DEFINITION:
As I promised here is a detailed explanation of a M.E.C on a life Insurance Contract.
Modified Endowment Contract Explanation.
The Technical and Miscellaneous Revenue Act (TAMRA) is a law that was established to determine the tax consequences of income received from
a life insurance policy during the lifetime of the insured. TAMRA makes a distinction, based upon the amount of premium paid, between a policy
purchased primarily for a death benefit from one that was purchased primarily as an investment. TAMRA establishes an annual premium limit for 7
years, called the 7-pay test. A policy that is funded in excess of the 7-pay premium limits is considered to be a "Modified Endowment Contract"
(MEC).
Events such as timing of premium payments and policy changes play a role. Your clients should be aware that the insurance
proceeds payable to the beneficiary upon death of the insured are income-tax free and policy cash values will grow on an income-tax deferred
basis. However:
1. Any cash distributions, withdrawals, assignments or loans made at any time during the life of the policy (other than death) will be included in
the taxable income to the extent of the taxable gain at the time of the transaction. Taxable gain is the excess of the policy value over the sum of
the premiums paid less withdrawals (cost basis).
2. Such distributions will also be subject to a 10% penalty tax on amounts included as income unless you have attained age 591/2, become
disabled, or you arrange for a distribution in substantially equal payments over your life expectancy. If the owner is a non-natural entity, ( e.g.
corporation or trust, etc), such proceeds are always subject to the 10% penalty.
As I promised here is a detailed explanation of a M.E.C on a life Insurance Contract.
Modified Endowment Contract Explanation.
The Technical and Miscellaneous Revenue Act (TAMRA) is a law that was established to determine the tax consequences of income received from
a life insurance policy during the lifetime of the insured. TAMRA makes a distinction, based upon the amount of premium paid, between a policy
purchased primarily for a death benefit from one that was purchased primarily as an investment. TAMRA establishes an annual premium limit for 7
years, called the 7-pay test. A policy that is funded in excess of the 7-pay premium limits is considered to be a "Modified Endowment Contract"
(MEC).
Events such as timing of premium payments and policy changes play a role. Your clients should be aware that the insurance
proceeds payable to the beneficiary upon death of the insured are income-tax free and policy cash values will grow on an income-tax deferred
basis. However:
1. Any cash distributions, withdrawals, assignments or loans made at any time during the life of the policy (other than death) will be included in
the taxable income to the extent of the taxable gain at the time of the transaction. Taxable gain is the excess of the policy value over the sum of
the premiums paid less withdrawals (cost basis).
2. Such distributions will also be subject to a 10% penalty tax on amounts included as income unless you have attained age 591/2, become
disabled, or you arrange for a distribution in substantially equal payments over your life expectancy. If the owner is a non-natural entity, ( e.g.
corporation or trust, etc), such proceeds are always subject to the 10% penalty.
Tuesday, May 5, 2009
Understanding the definition of a MEC in a Life Insurance Contract
Hello producers,
Prior to selling a life insurnace contract, all insurance agents should understand the definition of a MEC. I will be giving more detailed information in the near future.
Modified endowment contract: The MEC came into being with the 1988 amendment to the tax code (TAMRA, IRC Sec. 72 and Sec. 7702A). People were putting large sums of money into policies to accumulate funds on a tax-deferred basis. TAMRA provided that if a policy was over-funded (whether at issue or at a later date), it would be classified as a MEC, and any distribution representing a gain from the policy would be taxed.
The seven-pay test establishes limits to the amount of premiums that can be paid within a seven-year period. “Material changes” that occur to an in-force policy can cause a policy to be retested as if the changes existed since the beginning of the policy.
If a policy is or becomes a MEC, distributions will be taxed on a last-in first-out, or LIFO, basis to the extent of gain, subject to a 10 percent penalty, unless the distribution is made after age 59½, or if death, disability or annuitization occurs. Distributions include policy loans, cash dividends, withdrawals and surrenders.
If a policy becomes a MEC, it is “tainted” for as long as it exists and carries over to any policy that is issued in exchange for a MEC. A Sec. 1035 exchange is a material change for MEC purposes and is retested. Cash values that are transferred from the existing policy will not count as premium. If the policy fails the material change test, it will be classified as a MEC.
Sec. 1035 policy exchanges: When a policyowner exchanges an existing life insurance policy in accordance with IRC Sec. 1035, no gain is attributed on the exchange. The adjusted basis of the old policy is carried over to the new one. Only the newly added premium will be measured for MEC status. A Sec. 1035 exchange is allowed only when transferring cash values from an annuity to an annuity, life insurance to life insurance, or life insurance to an annuity contract.
Prior to selling a life insurnace contract, all insurance agents should understand the definition of a MEC. I will be giving more detailed information in the near future.
Modified endowment contract: The MEC came into being with the 1988 amendment to the tax code (TAMRA, IRC Sec. 72 and Sec. 7702A). People were putting large sums of money into policies to accumulate funds on a tax-deferred basis. TAMRA provided that if a policy was over-funded (whether at issue or at a later date), it would be classified as a MEC, and any distribution representing a gain from the policy would be taxed.
The seven-pay test establishes limits to the amount of premiums that can be paid within a seven-year period. “Material changes” that occur to an in-force policy can cause a policy to be retested as if the changes existed since the beginning of the policy.
If a policy is or becomes a MEC, distributions will be taxed on a last-in first-out, or LIFO, basis to the extent of gain, subject to a 10 percent penalty, unless the distribution is made after age 59½, or if death, disability or annuitization occurs. Distributions include policy loans, cash dividends, withdrawals and surrenders.
If a policy becomes a MEC, it is “tainted” for as long as it exists and carries over to any policy that is issued in exchange for a MEC. A Sec. 1035 exchange is a material change for MEC purposes and is retested. Cash values that are transferred from the existing policy will not count as premium. If the policy fails the material change test, it will be classified as a MEC.
Sec. 1035 policy exchanges: When a policyowner exchanges an existing life insurance policy in accordance with IRC Sec. 1035, no gain is attributed on the exchange. The adjusted basis of the old policy is carried over to the new one. Only the newly added premium will be measured for MEC status. A Sec. 1035 exchange is allowed only when transferring cash values from an annuity to an annuity, life insurance to life insurance, or life insurance to an annuity contract.
Wednesday, April 29, 2009
Long Term Care Insurance
I am a firm believer in LTC Insurance. As a life & Health Insurance agent, you should advise your client of the benefits & guarantees provided by the carrier. Allianz Life has a wonderful product line of LTC products. Allianz Life has recently revamped their LTC products. In my opinion, the LTC product line should be marketed to potential clients in the 45-75 year old bracket.
Underwriting issues is usually one of the first questions that a producer has. The simply answer is to present the product to your client & do a detailed fact finding questioner. Including all of the goals & objectives of your client & the past 5 years years of their health history. Allianz life has streamlined the underwriting process. You should contact Global Insurance Group with the health history of your potential client. We will assist you with getting you client approved. It is your responsibility to develop an insurance plan that will be both affordable & an asset to your client should they need to utilize the product.
If you are not associated with Global Insurance Group, please click the " Join Now" tab & we will contact you.
Long Term Care Insurance:
With Baby Boomers reaching retirement and Americans living longer than ever, Long Term Care Insurance (LTC) policies should be on the minds of many people, in particular those close to retiring and those who will need to take care of loved ones over a long period of time. Long Term Health Care Insurance protects your clients, as well as those they love, in the event that extended health care is needed in their lifetime.
Long Term Care Insurance Helps to Cover:
Daily activities such as bathing, eating, dressing
Skilled nursing care or rehabilitation training either in a nursing facility or at home
Cognitive impairment such as Alzheimer's and deals with care-oriented conditions, not cure oriented
Underwriting issues is usually one of the first questions that a producer has. The simply answer is to present the product to your client & do a detailed fact finding questioner. Including all of the goals & objectives of your client & the past 5 years years of their health history. Allianz life has streamlined the underwriting process. You should contact Global Insurance Group with the health history of your potential client. We will assist you with getting you client approved. It is your responsibility to develop an insurance plan that will be both affordable & an asset to your client should they need to utilize the product.
If you are not associated with Global Insurance Group, please click the " Join Now" tab & we will contact you.
Long Term Care Insurance:
With Baby Boomers reaching retirement and Americans living longer than ever, Long Term Care Insurance (LTC) policies should be on the minds of many people, in particular those close to retiring and those who will need to take care of loved ones over a long period of time. Long Term Health Care Insurance protects your clients, as well as those they love, in the event that extended health care is needed in their lifetime.
Long Term Care Insurance Helps to Cover:
Daily activities such as bathing, eating, dressing
Skilled nursing care or rehabilitation training either in a nursing facility or at home
Cognitive impairment such as Alzheimer's and deals with care-oriented conditions, not cure oriented
Saturday, March 28, 2009
Baby Boomers retiring at 10,000 Per Day!
I have a link below from the SSA with some interesting numbers. America's Baby Boomers are now retiring at a rate of 10,000 per day! This is a huge opportunity for all Insurance Agents nationally to assist these retires with retirement plans. A fixed annuity with an income rider that would allow the investor to never out live their monthly income needs may be a necessity for a portion of the baby boomers retirement plans. I feel that we all need to start retirement planning as early as the age of 40-45. Therefore, the accumulation phase, will allow us to have enough money at age 65 to kick in an income stream that we will not outlive. In my opinion one of the best benefits of the latest phase of annuities are the income riders that are available. At Global Insurance Group, we have been marketing to the younger "baby boomers" & even the families in the 40 year age bracket. With the challenging economy that our country now faces, guarantees within an annuity contract are extremely precious for the consumer. Please get familiar with "income riders". The riders are changing on a monthly basis. The benefits of these contracts are guaranteed by the financial stability & claims paying ability of the issuing insurance company.
http://www.ssa.gov/pressoffice/pr/babyboomerfiles-pr.htm
http://www.ssa.gov/pressoffice/pr/babyboomerfiles-pr.htm
Wednesday, March 25, 2009
Important Letter From Aviva Life
This letter was dated March 20Th, 2009. Life Insurance products are being emphasized to all of our agents at Global Insurance Group. If you are an annuity producer & have not spent the time to market life insurance, your clients are not getting the knowledge they deserve. Please click the "join now" tab on our website to increse your life insurance sales.
FROM AVIVA LIFE :
To our valued Distribution Partners and Producers:
Aviva USA and our key distribution partners and producers continue to deliver prosperity and
peace of mind to our life insurance and annuity customers as we navigate through these difficult
economic times. We remain focused on providing policies that provide the safety, security and
guarantees customers desire in this time of turmoil. As we work to keep the company strong, we
will be there to deliver on our promises -- just as Aviva has done for more than 300 years.
As you know, our goals for 2009 are to accelerate the growth of our life business and moderate the
growth of our annuity business. We also want to utilize our capital in the most prudent manner and
to build up our capital position so that we are in a position to take advantage of the opportunities
that will exist for strongly capitalized insurers and their producers when this economic crisis ends.
Please know that we are committed to our annuity business over the long term; however, we have
made changes to moderate our growth rate. So far we have not seen much reduction because of
the strong consumer demand for our products. During the past week we have ended our annuity
relationships with some additional distributors and producers and have established production
caps for other distributors. These were extremely tough decisions, and we sincerely wish those
producers and groups the best. Today, we are making some additional changes for business
received on and after March 21, 2009, including:
A commission reduction for all annuity products (for most products 0.5%).
An additional commission reduction for all annuity products for issue ages above 75.
A reduction in maximum issue ages for most annuity products.
o For 12- and 10-year SC products, the maximum issue will be between ages 75-
78, depending on the product; and for 8-year SC products, it will be age 80; for
7-year SC products it will be age 81; for 6- year SC products it will be age 82;
and for 5-year SC products it will be age 83.
An increase in the annual fee for lifetime income benefit riders for all annuity products
and all riders. The increase will vary by rider, but for our most popular rider the fee will
increase from 0.50% to 0.75% annually.
A temporary moratorium from licensing/appointing any new annuity producers.
We greatly appreciate the increased activity that is happening in our life business. In fact, many
annuity producers are already looking at selling more life insurance business during this period. To
assist them, we have introduced a competitive new fixed universal life product to complement our
indexed universal life, single premium life and term products so that our producers have the
products necessary to rapidly grow life production. We have made additional improvements to our
life insurance business to support your growth, including:
Increased retention limits to $10 million.
A reorganized underwriting team.
An improved no lapse guarantee (NLG) rider.
The introduction of illustrations demonstrating the positive impact of our Wellness for
Life rider.
Expanded Advanced Marketing Team and Life Sales Support Team.
Aviva remains strong and committed to our customers and to our producers. While there are
sacrifices to be made, we continue to deliver prosperity and peace of mind to our customers, which
is our most important obligation. We know we are doing this as a team with you and now more
than ever, we appreciate your business and your willingness to weather this storm with us. That's
why we call it, "One Aviva, twice the value.”
Sincerely,
Mark V. Heitz
President, Sales & Distribution
FROM AVIVA LIFE :
To our valued Distribution Partners and Producers:
Aviva USA and our key distribution partners and producers continue to deliver prosperity and
peace of mind to our life insurance and annuity customers as we navigate through these difficult
economic times. We remain focused on providing policies that provide the safety, security and
guarantees customers desire in this time of turmoil. As we work to keep the company strong, we
will be there to deliver on our promises -- just as Aviva has done for more than 300 years.
As you know, our goals for 2009 are to accelerate the growth of our life business and moderate the
growth of our annuity business. We also want to utilize our capital in the most prudent manner and
to build up our capital position so that we are in a position to take advantage of the opportunities
that will exist for strongly capitalized insurers and their producers when this economic crisis ends.
Please know that we are committed to our annuity business over the long term; however, we have
made changes to moderate our growth rate. So far we have not seen much reduction because of
the strong consumer demand for our products. During the past week we have ended our annuity
relationships with some additional distributors and producers and have established production
caps for other distributors. These were extremely tough decisions, and we sincerely wish those
producers and groups the best. Today, we are making some additional changes for business
received on and after March 21, 2009, including:
A commission reduction for all annuity products (for most products 0.5%).
An additional commission reduction for all annuity products for issue ages above 75.
A reduction in maximum issue ages for most annuity products.
o For 12- and 10-year SC products, the maximum issue will be between ages 75-
78, depending on the product; and for 8-year SC products, it will be age 80; for
7-year SC products it will be age 81; for 6- year SC products it will be age 82;
and for 5-year SC products it will be age 83.
An increase in the annual fee for lifetime income benefit riders for all annuity products
and all riders. The increase will vary by rider, but for our most popular rider the fee will
increase from 0.50% to 0.75% annually.
A temporary moratorium from licensing/appointing any new annuity producers.
We greatly appreciate the increased activity that is happening in our life business. In fact, many
annuity producers are already looking at selling more life insurance business during this period. To
assist them, we have introduced a competitive new fixed universal life product to complement our
indexed universal life, single premium life and term products so that our producers have the
products necessary to rapidly grow life production. We have made additional improvements to our
life insurance business to support your growth, including:
Increased retention limits to $10 million.
A reorganized underwriting team.
An improved no lapse guarantee (NLG) rider.
The introduction of illustrations demonstrating the positive impact of our Wellness for
Life rider.
Expanded Advanced Marketing Team and Life Sales Support Team.
Aviva remains strong and committed to our customers and to our producers. While there are
sacrifices to be made, we continue to deliver prosperity and peace of mind to our customers, which
is our most important obligation. We know we are doing this as a team with you and now more
than ever, we appreciate your business and your willingness to weather this storm with us. That's
why we call it, "One Aviva, twice the value.”
Sincerely,
Mark V. Heitz
President, Sales & Distribution
Suspension Of RMD Requirments for 2009
This eAlert is provided for informational purposes only and does not constitute legal or tax advice. It is based on information believed to be reliable but no representation of its accuracy is made by Lincoln Financial Distributors. For more information, contact Lincoln Advanced Sales. LCN0812-2024358 For agent or broker use only. Not for use with the public 1 December 17, 2008 Issue 63 H.R. 7327, the Worker, Retiree, and Employer Recovery Act of 2008
H.R. 7327, the Worker, Retiree, and Employer Recovery Act of 2008 (generally referred to as the "2008 Recovery Act"), passed the House on Dec. 10, 2008 and the Senate on Dec. 11, 2008.
Highlights of the Worker, Retiree, and Employer Recovery Act of 2008 include the following provisions.
H.R. 7327, the Worker, Retiree, and Employer Recovery Act of 2008 (generally referred to as the "2008 Recovery Act"), passed the House on Dec. 10, 2008 and the Senate on Dec. 11, 2008.
Highlights of the Worker, Retiree, and Employer Recovery Act of 2008 include the following provisions.
• Suspension of RMD Requirements in 2009
The Act allows for a suspension of the required minimum distribution from retirement accounts in 2009. This waiver, which is available to everyone regardless of their total retirement account balances, applies to all defined-contribution plans, including 401(k), 403(b), 457(b), and IRA accounts. Suspending the mandatory withdrawal allows retirees to keep the money in their account if they choose, and possibly recover some of their losses.
• Pension funding relief for both single-employer and multi-employer plans.
For single-employer plans, the 2008 Recovery Act permits employers to "smooth" the value of pension plan assets over 24 months instead of having to apply the mathematical average that the Treasury requires. "Smoothing" means valuing the assets at various points in time. This change softens the accounting of 2008 plan losses. The 2008 Recovery Act also adjusts the transition to the new funding rules, by allowing plans that miss their phase-in funding target to retain the same target and not jump to the 100% target (as required under pre-2008 Recovery Act law). For plans starting between Oct. 1, 2008 and Oct. 1, 2009, multi-employer plans may elect to freeze their current funding status based on the previous year's level. This would freeze the terms of the funding improvement or rehabilitation plan adopted at any time during the previous plan year. In addition, under the 2008 Recovery Act, plans may elect a 3-year extension of the current funding improvement or rehabilitation period, from 10 to 13 years and from 15 to 18 years. Election of this extended correction period will help offset 2008 equity losses.
This eAlert is provided for informational purposes only and does not constitute legal or tax advice. It is based on information believed to be reliable but no representation of its accuracy is made by Lincoln Financial Distributors. For more information, contact Lincoln Advanced Sales. LCN0812-2024358 For agent or broker use only. Not for use with the public 2 December 17, 2008 Issue 63
• Rollover Clarification
The Pension Protection Act of 2006 ( Sec. 829, PL 109-280, 8/17/2006 ) added Code Sec. 402(c)(11) to provide that a nonspouse beneficiary of a deceased employee's eligible retirement plan can make a trustee-to-trustee transfer to an IRA of part (or all) of the deceased employee's account balance in the plan, effective for distributions made after 2006. As described in Notice 2007-7, the IRS interpreted Code Sec. 402(c)(11) to mean that plans could, but did not have to, allow for nonspouse beneficiary rollovers. The 2008 Recovery Act provides that if the Code Sec. 402(c)(11) requirements for making a nonspouse beneficiary rollover are satisfied, then a plan provision allowing eligible rollover distributions must allow nonspouse beneficiaries to roll over inherited amounts tax-free.
IRS Circular 230 Disclosure: Any discussion pertaining to taxes in this communication (including attachments) may be part of a promotion or marketing effort. As provided for in government regulations, advice (if any) related to federal taxes contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.
Sunday, March 22, 2009
Web based Data Base Fully Functional !
After two years in the works our free web based data base is fully functional & ready for our agents to utilize. This is a $30,000 value! Please contact Joshua or Rhonda at 888-678-4845 for details on getting your user name & password. The data base is a dream come true for professional insurance agents working with Global Insurance Group.
The free software is a client management software system.
Web Based: It is available to any agent who is approved. It will be accessible anywhere in the world. You will be assigned a user name & password.
Simple to use and designed to give you a turn key insurance agency:
Have all of your clients in one specialized database.
Lead, Seminar and Client data base tracking
Scheduling and Calendaring Tools
Manage Leads and appointments
Seminar/Event Tracking
Lead tracking system. Imagine all of your leads & notes from the calls made on them magically appearing on your calendar
Pending business. Imagine having a better tracking system then the carriers themselves!
Track your pending transfers.
Track Commissions.
Mining of leads. Use our extensive database to pull new potential clients.
Anniversary of contract reminders.
Birthday reminders.
Client newsletters generated for you on a quarterly basis.
Multiple customizable reports and queries (to many to list)
The free software is a client management software system.
Web Based: It is available to any agent who is approved. It will be accessible anywhere in the world. You will be assigned a user name & password.
Simple to use and designed to give you a turn key insurance agency:
Have all of your clients in one specialized database.
Lead, Seminar and Client data base tracking
Scheduling and Calendaring Tools
Manage Leads and appointments
Seminar/Event Tracking
Lead tracking system. Imagine all of your leads & notes from the calls made on them magically appearing on your calendar
Pending business. Imagine having a better tracking system then the carriers themselves!
Track your pending transfers.
Track Commissions.
Mining of leads. Use our extensive database to pull new potential clients.
Anniversary of contract reminders.
Birthday reminders.
Client newsletters generated for you on a quarterly basis.
Multiple customizable reports and queries (to many to list)
Monday, March 2, 2009
Company Creed
I'm proud to announce the unifying principles that I truly stand for. After 26 years of transacting insurance business, I have developed a Company Creed that I request everyone within the family of Global Insurance Group to adhere by. I have worked with over a thousand insurance agents & thousands of clients in my career. I believe that I have enriched many agents with their Career. I also believe that I have assisted thousands of clients with the assistance of other quality agents, to positively structure their insurance portfolio. At 45 years of age, I feel that the next 20 years of my life will enriched by the quality people that I associate with. Here is our COMPANY CREED:
The Global Insurance Group core beliefs will impress upon its agents, employees and affiliates, honesty and fairness in all of its business dealings.
We offer our clients competence, diligence, and good judgment.
We utilize compliant marketing material from the carriers we represent as well as the State we are conducting business within.
We will only conduct business that benefits our clientele.
We will continually show respect to fellow agents & employees.
We will respect all Insurance Agents in our industry in a fashion in which we wish to be respected.
We will utilize fair marketing practices with the intention of educating our clientele.
We understand and agree that a personalized and caring nature towards our clientele is the first responsibility we have to our clientele. We will service our clientele to the best of our ability.
We offer fairness, integrity and civility as etiquette for correct business and personal relationships.
We will strive to make our personal lives and business activities an example for others to emulate and a source of pride for our families and community.
We hold all individuals' rights to self-determination, privacy and personal dignity to be authentic.
We believe ethical behavior is a matter of spirit and intent as well as a matter of law.
We believe honesty and integrity is characterized by open and truthful communication.
These principles shall be the guiding light for all
The Global Insurance Group core beliefs will impress upon its agents, employees and affiliates, honesty and fairness in all of its business dealings.
We offer our clients competence, diligence, and good judgment.
We utilize compliant marketing material from the carriers we represent as well as the State we are conducting business within.
We will only conduct business that benefits our clientele.
We will continually show respect to fellow agents & employees.
We will respect all Insurance Agents in our industry in a fashion in which we wish to be respected.
We will utilize fair marketing practices with the intention of educating our clientele.
We understand and agree that a personalized and caring nature towards our clientele is the first responsibility we have to our clientele. We will service our clientele to the best of our ability.
We offer fairness, integrity and civility as etiquette for correct business and personal relationships.
We will strive to make our personal lives and business activities an example for others to emulate and a source of pride for our families and community.
We hold all individuals' rights to self-determination, privacy and personal dignity to be authentic.
We believe ethical behavior is a matter of spirit and intent as well as a matter of law.
We believe honesty and integrity is characterized by open and truthful communication.
These principles shall be the guiding light for all
Tuesday, February 24, 2009
Life Insurance Information
I'll be adding detailed information on Life Insurance over the next several months. For now, I decided to start with some basic information on Life Insurance. There are many variations of Life Insurance, here are some general definitions of popular types of Life Insurance that our producers at Global Insurance Group have been selling.
Some Types of Life Insurance
1. Term Insurance is the most basic, and generally least expensive, form of life insurance for people under age 50. A term policy is written for a specific period of time. Usually 10, 20 or 30 years. A level term policy locks in the annual premium and death benefit.
2. Whole Life combines permanent protection with a savings component. As long as you continue to pay the premiums, you are able to lock in coverage at a level premium rate. Part of that premium accrues as cash value. As the policy gains value, you may be able to borrow up to 90% of your policy's cash value tax-free
3. Universal Life is similar to whole life with the added benefit of potentially higher earnings on the savings component. Universal life policies are also highly flexible in regard to premiums and face value. Premiums can be increased, decreased or deferred, and cash values can be withdrawn. You may also have the option to change face values. Universal life policies typically offer a guaranteed return on cash value, usually at least 4%. You'll receive an annual statement that details cash value, total protection, earnings, and fees.
4. Survivorship life Insurance (also referred to as last-to-die or second-to-die) is a unique type of contract that insures the lives of two people. It pays a death benefit upon the death of the second insured. Therefore, it is typically less expensive than two individual policies. Survivorship life is often used for estate planning, where it may be possible to potentially leverage today's dollars -- via insurance premiums -- into a potentially significant death benefit that can be used to fund estate taxes, create wealth for future generations, or benefit a charity. These policies may be available if one insured is medically "uninsurable."
5. First-to-die life Insurance insures the life of at least two people and pays a benefit upon the death of the first insured. This policy is useful for covering a mortgage or other large debt obligation where there is more than one debtor. In addition, it can be an ideal tool for funding a buy-sell agreement within a closely held business.
Some Types of Life Insurance
1. Term Insurance is the most basic, and generally least expensive, form of life insurance for people under age 50. A term policy is written for a specific period of time. Usually 10, 20 or 30 years. A level term policy locks in the annual premium and death benefit.
2. Whole Life combines permanent protection with a savings component. As long as you continue to pay the premiums, you are able to lock in coverage at a level premium rate. Part of that premium accrues as cash value. As the policy gains value, you may be able to borrow up to 90% of your policy's cash value tax-free
3. Universal Life is similar to whole life with the added benefit of potentially higher earnings on the savings component. Universal life policies are also highly flexible in regard to premiums and face value. Premiums can be increased, decreased or deferred, and cash values can be withdrawn. You may also have the option to change face values. Universal life policies typically offer a guaranteed return on cash value, usually at least 4%. You'll receive an annual statement that details cash value, total protection, earnings, and fees.
4. Survivorship life Insurance (also referred to as last-to-die or second-to-die) is a unique type of contract that insures the lives of two people. It pays a death benefit upon the death of the second insured. Therefore, it is typically less expensive than two individual policies. Survivorship life is often used for estate planning, where it may be possible to potentially leverage today's dollars -- via insurance premiums -- into a potentially significant death benefit that can be used to fund estate taxes, create wealth for future generations, or benefit a charity. These policies may be available if one insured is medically "uninsurable."
5. First-to-die life Insurance insures the life of at least two people and pays a benefit upon the death of the first insured. This policy is useful for covering a mortgage or other large debt obligation where there is more than one debtor. In addition, it can be an ideal tool for funding a buy-sell agreement within a closely held business.
Sunday, February 22, 2009
NAIC Buyers Guides For Consumers
Global Insurance Group is committed to passing on useful sales tools to our agents. The best sales tool in my opinion is the buyers guide for consumers available for a nominal fee from the National Association of Insurance Commissioners. Every sale should go hand in hand within the guidelines of the NAIC. I am giving everybody the link to the NAIC:
http://www.naic.org/store_pub_consumer.htm#life_guide
I encourage you to utilize these guides to educate your clientele on all insurance products.
http://www.naic.org/store_pub_consumer.htm#life_guide
I encourage you to utilize these guides to educate your clientele on all insurance products.
Saturday, February 7, 2009
Multi-Year Gaurantee Annuity Benefits
How many of your clients are looking for safety in today's volatile economy?
Multi-year guarantee annuities (MYGA) are designed with an interest rate that is guaranteed for the full-term of the annuity. Since a client can accurately predict the value of the annuity throughout the life of the contract, they are especially useful for reaching a specific value at some time in the future such as retirement. Of course, the MYGA annuity is a type of Tax-Deferred Fixed Annuity. With CD rates being as low as they are, it is the insurance agents obligation to educate your client on safe investments that offer generous interest rates & short surrender charge periods. Products that offer (1) safety of principle (2) A guaranteed interest rate for 3, 4 or 5 years. As of today Feb 7th, 2009 there is a leading carrier offering 4.9% interest for a 5 year MYGA! Interest rates may change weekly, so log onto our website http://www.global-insurancegroup.com/ or call 954-796-8180 for updates. It is important to inform your clients that the guarantees are backed by the strength & claims-paying ability of the insurance company. A five year fixed rate annuity is an excellent opportunity for you to excel your sales. If you are having problems with your prospecting, this product is an excellent way for you to get the attention of your future clientele. Commissions on these products are as high as 3% for licensed agents of Global Insurance Group.
Multi-year guarantee annuities (MYGA) are designed with an interest rate that is guaranteed for the full-term of the annuity. Since a client can accurately predict the value of the annuity throughout the life of the contract, they are especially useful for reaching a specific value at some time in the future such as retirement. Of course, the MYGA annuity is a type of Tax-Deferred Fixed Annuity. With CD rates being as low as they are, it is the insurance agents obligation to educate your client on safe investments that offer generous interest rates & short surrender charge periods. Products that offer (1) safety of principle (2) A guaranteed interest rate for 3, 4 or 5 years. As of today Feb 7th, 2009 there is a leading carrier offering 4.9% interest for a 5 year MYGA! Interest rates may change weekly, so log onto our website http://www.global-insurancegroup.com/ or call 954-796-8180 for updates. It is important to inform your clients that the guarantees are backed by the strength & claims-paying ability of the insurance company. A five year fixed rate annuity is an excellent opportunity for you to excel your sales. If you are having problems with your prospecting, this product is an excellent way for you to get the attention of your future clientele. Commissions on these products are as high as 3% for licensed agents of Global Insurance Group.
Wednesday, February 4, 2009
Announcement of new Blog Site!
Today, Feb 4th 2009, I created this blog to network with other professionals in the insurance indsustry. Please visit my website at http://www.global-insurancegroup.com/. If you are an agent selling Life Insurance, Annuities or Long Term care Insurance, you will want to read my up coming content. I will be keeping agents up to date on imporant issues facing themselves as far as compliance issues, marketing lead sources, NAFA updates & NAIFA updates. I will be informing insurance agents on new products from leading insurance companies such as Allianz Life, Aviva Life, North American & RBC.
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