Fast and Furious - Year-End Sales Ideas in 60 Seconds or Less

Ready for some quick sales ideas that you can take from start to finish before December 31?  Here are some of the best from Windsor and our carriers!  

Year-End Tax Deductions!  
American National

As we enter the last two months of the year we are at the very peak of the pension season. Now is the time to contact prospects who couldn't pull the trigger on planning earlier in the year. There is much greater urgency to establish a plan now than back in March when no deadlines were looming. Contact accountants and let them know that you can help them and their clients establish plans and save on 2018 taxes. Here are maximum contributions/deductions in an Annuity & Life Insurance 412(e)(3) plan for various ages:

Age 45 - $151,175

Age 50 - $226,462

Age 55 - $289,774

Employer profit sharing and pension plan contributions to these plans can be made in 2019 before the employer files its 2018 tax return.  A 2018 plan must be established by 12/31/2018 which means the plan document must be signed by that date.

Windsor and American National are ready to assist you with proposals for clients looking to establish a new plan. Now is the time to make that year-end push, and make a good year a great year!

Retain the Most Valuable Employees - and make it easy with Accelerated Underwriting!

 With the unemployment rate at historic lows and the demand for key talent the highest it's been in 17 years, many clients are asking what types of programs are available to lock in their key employees.

Answer: For a simple and effective retention plan consider cash value life insurance paired with Principal's Accelerated Underwriting (no fluid) program.

  • Target: key employees between ages 35 -55
  • Underwriting: Accelerated for preferred or super preferred up to $1 million – average app to issue 15 days
  • Products: UL Accumulation, IUL Accumulation or VUL Income III – with or without a high early cash value rider
  • Contributions: Max roughly age x $1,000 (45 X 1,000 = $45,000 premium with a $1m face)
  • Plan documents: Samples provided for customization
  • Administration: Complimentary

For more information call Windsor or your Principal support team! 

CD Alternative - Legacy Builder

Who do you have that's 60 or older, has at least 100k in cash equivalents, not using it and would like more leverage than what they're currently getting?

Consider VUL Protector as an alternative to a CD or a Variable Annuity.

Easy concept where you take an idle 100k from a cash account and buy double the Death Benefit, Chronic Illness protection, an unlimited upside, downside protection to age 120 and liquidity.

Not complicated but powerful leverage. 

Multiplying Asset Value
Lincoln Financial

 Many prospective clients have greatly benefited from the longest Bull market in history. Stock prices have been at or near an all-time high. Is there a strategy that can preserve the gains in exchange for creating a legacy for their children/grandchildren?

Profile: M/A67 and F/A64. Worth $14M. Long-time GE executive. $5M in GE stock. Client's intention is that the stock be used as the legacy assets passed to their three children and five grandchildren. The client did not see a need for insurance since the $5M GE stock was earmarked as their legacy gift. Barrier/Obstacle: Reluctant to sell GE stock due to the long-term emotional connection to the company that served them so well. In addition, it didn't make sense to take a 20% capital gains hit just to reinvest into another asset.

Solution: Use a portion of the $5M GE stock to create a share price equivalent far greater than where it is currently trading. Essentially, creating a protective "Put" four times its current value using life insurance. Recommendation: Sell $2M of the GE stock currently trading at $26/share, pay both Fed/State cap gains taxes, and use the remaining $1,692,308 to purchase a $7,857,268 Survivorship IUL policy creating an equivalent share price of $102.14/share.

Summary: Client retained ownership of $3M in GE stock. Increased total value of legacy gift to $10,857,268 ($3M + $7,857,268). Presenting the DB as a share-price equivalent created the perception of owning $3M at $26/share and $2M at $102/share. 

Sideline Solution

Client Profile

Clients over the age of 50, continuing to plan for retirement, but with money idling on the sidelines. Whether in savings, a money market account or a low-interest investment, this money is not reaching its full earning potential. Advisors often have a difficult time getting to this money, because it is intended for emergencies. When probing deeper, we usually find out that those anticipated emergencies are typically health related.

What is the problem?

Many clients nearing retirement are looking for multiple ways to supplement different pieces of retirement. Many have a 401k or a pension and an IRA or ROTH. The one thing often not planned for is long-term care. Even when clients hear that 70% of retirees will have a long-term health need, they do not want to pay for coverage they may not use. However, a health event will likely be the reason that they drain all assets, including house and savings. We need a vehicle that can grow cash-position in a tax-advantaged way while giving clients options and flexibility on how they use this money.

How does life insurance mitigate the problem?

Life insurance is simply the vehicle we are using to protect against this risk, because of the tax-advantages. We want to grow our cash tax-deferred and first use that money as a retirement supplement if needed. If we have a health event we want to be able to leverage our dollars to get a bigger benefit. And lastly, if we never need to use it at all, we want the money to be passed efficiently to heirs.

Excess Cash at Year-End - Split Dollar

Endorsement split dollar plans are designed to provide valuable key person death benefits to a business and personal death benefit protection to a key employee's family.A life insurance policy is purchased and the premium payments and policy benefits are divided between two parties - usually a business and an employee.

Benefits to the employer: The employer has access to the policy's cash value.Those values can be used for cost recovery or for other employee benefits.

Benefits to the employee:Split dollar provides valuable insurance protection at a greatly reduced current out-of-pocket cost.Split dollar also can be combined with a cross-purchase buy-sell agreement to even out the current premium costs in the case of a wide age variable among the owners.

Contact Windsor or Principal for customized Endorsement Split Dollar illustration and support!

Now is the time to use these sales ideas to make new contacts or confirm your commitment to your clients' financial future. Here at Windsor, we're ready and able to help you from start to finish before year-end 2018!

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Saturday, 13 April 2024

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