SETTLEMENTS MADE EASY. Jonathan Proby (954)

Transcription

1 SETTLEMENTS MADE EASY Jonathan Proby (954)

2 Why Use a Settlement? You can't do a proper review for your client without knowing what your client's policy is worth. Settlements are not asking you to do anything new with your clients. You are simply practicing the basic fundamentals that have built the Life Insurance industry. Review your client s policy and determine if it's the best vehicle to accomplish your client's objective.

3 What is a Settlement? Simple purchase of life insurance Types of policies Term UL SUL Ages: 65 and up Face: $100,000 to $50 million

4 Current Market Life expectancy impact 20% increase on average Banking impact Lack of capital Fewer buyers Average buying price has gone down Example: Policy that was selling for 800k last year is selling for 400k

5 What is the Process? Non-intrusive to your client No medical exam No blood or HOS Pre-value policy Fill out the settlement application Get in-force ledger We get the medical records We get the Life Expectancy report We get the best price available Deliver closing docs and deliver check to your client One of the only sales where you will deliver a check rather than ask for one.

6 Term Program We have taken the negative aspects of a settlement transaction out Simplified application No LE s No medical records Quick offers Quick closing Quick commission checks

7 Express Settlement Parameters Males only Term policies convertible and non-convertible Ages 65 and up UL policies, non-contestable Ages 70 and up We have a simple solution for these clients

8 Non-Convertible Term What can your clients do when their term is no longer convertible? Pay the ridiculous renewable rate. Throw it in the trash or... Receive a check.

9 Success Story Male, age 74, 15 year term with CNA and 2M face that was issued in The policy was out of conversion period. We sold the policy for 60k or 4%. Client used the 60k to help purchase a 500k UL that had a premium of 16k. Agent Compensation Sale of the policy 12k or 20% of offer. UL sale 14.4k or 90% of UL premium Total $26,400

10 Success Story Male, age 71, purchased a 10-year term 9 years ago for 1M face amount. We converted the policy and the premium was 52K. We sold the converted UL for 72K or 7.2%. We purchased a new 10-year term with 500K of face for 6K annual premium. Agent Compensation The conversion of the policy: $41.6K or 80% of the conversion premium Sale of the policy: $14,400 or 20% of offer Term sale: $4,800 or 80% of the 10-year premium Total Comp: $60,800

11 LS and Estate Planning There are many clients who have policies in their estates for estate tax purposes. If they are married, a terrific play is to sell the individual policy through a LS and then buy a new 2 nd to die policy in an ILIT. This gets the client cash and a new policy out of his estate if done right. The agent wins too by making money on the LS sale and the new 2 nd to die policy. This is a great topic if you network with CPAs.

12 Transparency Industry credibility Choosing the right professional Huge impact on both you and your client

13 The Opportunity Potential to make an extra 250k this year. Just write 30 clients. Quick process and non-intrusive. Dramatically improve you re client s financial situation. Responsibility as life agents to let our clients know of these options. Clients are unknowingly letting these valuable policies expire every day.

14 Why Use Us By teaming with us you will offer two distinct advantages to your clients versus your competitors: Professional policy valuations Complete transparency In a sector of our industry that's needing credibility and clarity, we have delivered. We operate with 100% transparency using the TOP Program which is our own Transparent Offer Program. You will be able to see everything that transpires with your case from inception.

15 How to Get Started Simple: Pull a file, male 65 with a 500K policy and above. Call or click to get started No app to take

16 Questions