Sales Idea for Younger Clients

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This is for clients who are in their 30s, 40s, and 50s that are still working and contributing to a 401k type plan.

Have them reduce their contributions to their payroll deduction retirement plan and use that money to fund a life insurance policy designed for cash accumulation.  

There is a tipping point for this to consider because of a couple of factors…

  1. The younger the client is, the cheaper the life insurance premiums will be, which means they will be getting a higher death benefit.
  2. However, the younger they are, they are likely not earning as much salary—so may not have as much disposable income to apply to this strategy.
  3. But the younger they are, the healthier they typically are, so it is still a good strategy to start—even if it is with a somewhat smaller contribution.  They can always increase the contributions later, and we can even illustrate increasing premiums over time.

In recent years the cost of insurance has gone down, and the life expectancy tables have been revised to reflect that we are all living longer.  So, insurance is cheaper than ever, and it is a perfect time to introduce life insurance to clients who can qualify health wise.

Also, crediting method rates are the highest we have ever seen, so growth within Index Universal Life policies is more powerful than it has ever been.

But the real beauty to this strategy is that all the withdrawals made from the cash value in a life insurance policy are TAX FREE!  This is a very strong and compelling selling point.

We can run illustrations that will show the client projected tax-free withdrawals for retirement that will provide more money for their golden years than they would receive if they kept contributing the same amount to a 401k type plan.

The best part—you can approach your older clients and show them how this could work for their children, nieces, nephews, and even grand kids!  And, if they want to, the clients can even help add premium to the policies to help the cash accumulation grow even faster!  Give us a call and we can run scenarios for you.

Annuity Sales at All Time High

Last year index annuity sales hit $79,400,000,000, which is a 25% increase over the previous year!

This is a great selling point to help clients who are trying to decide if they want to invest in index annuities.  It is compelling when you tell a client how many billions of dollars retirees are putting into index annuities, so don’t hesitate to mention it.

Index annuity sales are up for a few reasons…
  1. Unstable market movements still have tremendous volatility and relatively low returns—with a very high probability of losses
  2. Other safe investments are only offering a fraction of the returns coming from index annuities
  3. The newer design of index crediting methods produces profits at levels never seen before

For more tips give us a call.

~ Greg Skogsberg


Click here for a short video about this month's issue

We now have annuity contracts with FORTY-FIVE carriers.  More than any other FMO!  And this is just one of the reasons we are The #1 Concierge FMO in America!

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