How to turn your Term Life Insurance Sales into Permanent UL Sales

Stephanie Paoletta Advanced Planning, AIG - American General, Financial Planning, Insurance Company, Life Insurance, Supplemental Retirement Planning, Uncategorized Leave a Comment

Have you ever thought of being the beneficiary to your own life insurance policy? Do you want life insurance you don’t have to die to use? 

Most people see life insurance benefiting their spouse and children, not themselves. American General’s Asset Protector provides: optionality with a death benefit, an affordable long-term care solution, and a lifestyle income solution/retirement income feature. 


How to Turn Illiquid Death Benefits into a Liquid Pool of Money

We’d like to describe how American General is revolutionizing the way life insurance is bought and sold by showing how you can turn illiquid death benefits into a liquid pool of money your clients can use to protect their portfolio assets from the costs of severe illness and risk of outliving their assets. So they can achieve a higher sense of financial security during their retirement. 

This graphic depicts some of the risks Americans face before and during retirement.  Earlier in life there are 3 major risks that individuals and families face, but each risk tends to get smaller over time.  

Those 3 major risks are:

  • Paying off the mortgage,
  • Income replacement due to the death of a primary breadwinner and
  • The cost of college savings for children.

As we get older and these risks decline, a few other risks emerge, and they tend to become more daunting over time:

  • The multitude of financial risks….the possibility of living too long, interest rates, stock market, political instability, rising tax rates, house repairs, etc.,
  • The rising cost of health care, and
  • The potential reduction of social security income due to the death of a spouse.

Let’s talk in a little more detail and provide an all-encompassing solution for your clients with American General’s Asset Protector: LIVE TOO LONG, DIE TOO SOON, GET SICK ALONG THE WAY:  

The first aspect of the Asset Protector is the Secure Lifetime GUL 3.  This is the life insurance policy that provides protection against dying too soon.  Above and beyond just the life insurance protection this policy also provides some other benefits: 

  • First both the death and premium amounts are guaranteed.  Which means the life insurance policy will not lapse as long as the client pays the required guaranteed premium.
  • Additionally this policy also builds up guaranteed cash value that the client can access if needed.
  • Built into the Secure Lifetime GUL 3 policy is a no-cost rider called the enhanced surrender value rider.  This rider allows the insured to surrender their policy at the end of the 20th policy year and receive back 50% of their premiums paid.
  • The Asset Protector also has a 100% return of premium option beginning at the age of 85.

Accelerated Access Solution Benefits include:

  • No LTC license necessary.
  • 2-out-of-6 ADLs; or Severe Cognitive Impairment.
  • No longer required to be Permanent
  • Indemnity benefit: no receipts and spend benefits on anything.
  • Flexible Benefit Base: Benefit = 50% up to 100% of Death Benefit, $50,000 minimum up to $3,000,000 maximum, full waiver of monthly deductions.

The Lifestyle Income Solution: provides a type of longevity insurance

  • With this rider the insured/policyowner has the ability to accelerate up to 10% of their death benefit per year.
  • The primary requirements is that they live to age 85.
  •  It is a tax free return of their cost basis “100% ROP” and the rest is taxed as ordinary income.

Asset protector provides an unmatched level of financial security, especially during retirement, whether you: die too soon, get sick along the way, or live too long. 

Click here to learn more about how you can protect against risk in pre and post retirement.

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