About First Protective
Posts by First Protective:
Changes to par rates, cap rates, and fixed account rates on several UL and IUL products.
In response to decreasing market interest rates as well as rapidly changing market conditions related to the national emergence of the COVID-19 (Coronavirus), Pacific Life will limit new PL Promise GUL1 business to face amounts of $2.5 million or less effective Wednesday, April 1, 2020. PL Promise GUL is a universal life insurance product with no-lapse guarantees.
At Symetra, we’re always fine-tuning our products to ensure they are competitive, fulfill your clients’ financial needs and help you build your business. That’s why we’re pleased to announce that our Symetra Term now offers even more competitive pricing than before.
With our recent changes, Symetra Term ranks in the top three for policies with face amounts of $1.5 million and above.1 Our new rates will be available for sale starting March 13, 2020.
Effective April 1, 2020, Mutual of Omaha will be updating the conversion language for our Term Life Answers policies.
Valued First Protective Partners,
With the spread of COVID-19, I want to assure you that First Protective is committed to doing all we can to support you and your business even during this period of anxiety and uncertainty. We remain confident in our ability to maintain a “business as usual” posture as we deliver the sales support and service you both expect and deserve.
While the novel coronavirus is undoubtedly causing us all anxiety, concern and uncertainty, First Protective is taking special steps to both minimize business impacts on you and your clients while doing our part to contain the spread of the virus. This includes:
- We encourage you to use electronic life insurance submission tools like Vive and iPipeline’s iGO.
- Many of our employees are working from home with full access to our systems, as well as virtual meetings and teleconferencing.
- We have suspended our employees’ business travel by air, rail and public transportation, and we are encouraging them to avoid personal travel to virus hotspots.
- We are not permitting visitors at First Protective offices, as well as those of our parent company, Protective Life.
- All large meetings have been suspended for the foreseeable future. Internal meetings are limited, and we are adhering to appropriate social distancing practices.
These measures are in effect until April 15 and will be continually revisited by the First Protective and Protective Life leadership teams. These are all significant measures, and we don’t take them lightly. But clearly, we take our commitment to our employees, our producers and our partners very seriously, and we will do what it takes to support health, welfare and civic responsibility – while ensuring business support and continuity.
In situations like these, your clients need your advice and guidance more than ever. Your ability to provide proactive counsel and valuable financial solutions is critically important – times like these enable the best advisors to shine and really prove their value. While you can’t control this coronavirus situation or its impact on the financial markets, you can control your reaction and communications. Let your clients and prospects know your expertise and experience are available to them.
We will continue to closely monitor new developments, and we will share new insights and updates as we work though this situation. We are proud of our partnership with you and we will continue to support you and your clients.
Thank you for your partnership with First Protective. My best to you and your family,
The financial services industry, along the Gulf Coast, lost one of the most honorable, hardworking and class-act men with whom I have ever had the privilege of knowing. Jonathan Charest was a true professional, taking care of the needs of others for his entire career. Forty-four years old is way too early for the Lord to take a man like him. But it’s not in our hands, the plan is in His.
Jonathan was a graduate of the University of South Alabama. He affiliated with Principal when he entered the financial services industry, teaming with his father, Don. He would eventually purchase the business from him. After earning his MSFS, Jonathan focused on building a consultative practice. He affiliated with ProEquites and First Protective in 2010 and built his business by purchasing other advisors’ books of business. Jonathan quickly became a regular Elite Producer with First Protective and reached the Elite level with ProEquities.
Jonathan enjoyed spending time with his family and friends. In his spare moments, he would venture outdoors and target practice. If you knew him well, he would share with you his thoughts on the world issues and how those might impact the markets and financial plans of clients. He was often right about many significant market corrections.
Jonathan was a true friend to others in this business. He was always willing to assist and provide his thoughts on a situation. But he was also a man that knew he didn’t know everything and would seek counsel when he needed direction. While I am deeply saddened by this loss, I’m extremely grateful for being his friend and associate.
Please join me in praying for his wife Ashlie, and his daughters Emily and Kimberly during this time as they grieve the loss of a tremendous husband and father.
Written by guest blogger, Jay Stubbs, CLU, Regional Director, First Protective.
Beginning Friday, March 13, AIG is limiting premiums in any policy year on their Secure Lifetime GUL 3 and Platinum Choice VUL 2. The GUL cap is $500k and the VUL cap is $1M. This also includes lump sums or 1035 exchanges.
This goes into effect on Friday, March 13 but Winflex will not be updated until April 3.
The Lincoln Care Coverage Accelerated Benefits Rider is coming to additional states on March 16, 2020. It will be available on the AssetEdge VUL, AssetEdge Exec VUL, WealthAccumulate IUL and WealthPreserve IUL in Arizona, Connecticut, Delaware, District of Columbia, Florida, Indiana, New Jersey, North Dakota and South Dakota.
John Hancock repriced their Protection IUL on 2/18. Enhancements include more competitive single pays, increased Vitality credits on rated cases and enhanced target premiums on single and short pay scenarios.
North American has introduced the Smart Builder IUL. It has low up-front costs for strong early cash values; Critical, Chronic and Terminal accelerated DB endorsements at no cost; and an ROP death benefit is available. It is an excellent product for idle assets, 1035 exchanges and business planning opportunities.
Lincoln created a resource for tax planning and communicated a few updates:
– Maximum illustration rates for IUL and VUL indexed accounts will be adjusted beginning February 10.
– Auto-bind limits have increased for entertainers and high-profile individuals.
– Its Professional Advantage Underwriting Program features a no-lab, no-exam process for executive or professional clients with up to $20 million coverage
The First Protective family is saddened by the loss of our good friend and colleague, Jeff Looney. Jeff passed away on January 13 after a valiant battle with cancer, which he faced with courage, dignity and an indomitable spirit. Jeff’s tremendous impact on his family, friends, colleagues and clients will live on, even as all of us mourn the loss of such a good man. Please remember Jeff, his wife, Bellamy, his daughter, Mary Jayne, and his son, Van, in your thoughts and prayers.
Jeff began his career in financial services in 1985 after graduating from Birmingham-Southern College. He demonstrated amazing commitment to all he served in his family, his community and his profession. As a long-time elite-level advisor at both First Protective Insurance Group and ProEquities, he provided his clients with invaluable financial solutions to prepare them for every stage of their financial lifecycles. Jeff earned the Chartered Financial Consultant (ChFC) designation from the American College, as well as the Life Underwriter Training Council Fellow (LUTCF) designation from the National Association of Insurance and Financial Advisors. He had served as president of the Birmingham Association of Insurance and Financial Advisors and was a recipient of many of the industry’s highest awards.
A long-time resident of Vestavia Hills in the Birmingham area, Jeff was a member of the Chamber of Commerce, the Advisory Board of the Birmingham Southern College Office of Planned Giving and a board member of the Vestavia Swim Association. He was also a board member of the Fellowship of Christian Athletes and was co-founder of the Rebel Football Foundation. He was highly engaged as a member and volunteer at Shades Mountain Baptist Church. He loved the outdoors and was an avid hunter, fisherman and golfer.
While we are saddened by Jeff’s passing, we are heartened by the wonderful impact he had on all those who knew him. His selfless approach to life and serving others will stand as a legacy that will never fade.
I can hardly believe we’re already in the heart of the holiday season. As we turn the corner to 2020, I want to take the opportunity to thank you for your partnership with First Protective this year. We’ve had a full year of growth and expansion, and our ongoing success simply is not possible without the wonderful relationships we share with our producers, distribution partners, and sponsor companies. The amazing power of collaboration enables us all to deliver vital financial solutions to all those we serve together. Your commitment to serving your clients is so important, and we are honored to be your ally on this important mission.
2019 was a real year to remember from a life insurance product standpoint. Never in my career have I seen the magnitude of product changes that occurred this year as literally every life insurance carrier built new products to comply with new Principle-Based Reserving requirements and mortality tables that must be in place on January 1, 2020. The timing associated with the implementation of new products was complicated enough – even before adding in a dose of new (and often complex) indexed universal life interest crediting strategies and ongoing continued price competition in the term insurance arena. Despite all of that chaotic product activity in 2019, we shouldn’t expect things to slow down much in that arena in 2020, as carriers take stock of the new product landscape and jockey for competitive advantage.
Who knows what else is on the horizon in 2020? Interest rates continue to drop to historical lows, new laws and regulations continue to change the financial services industry, we’re still in the midst of the longest bull market run in history, and another election season is heating up.
While no one can predict fully how those factors may impact our business, one thing is certain: the solutions we offer are more important than ever to the families and businesses we serve. Far too many Americans are still uninsured or under-insured and unprepared for a serious illness, disability or untimely death. And while we’re generally living longer, healthier lives, too many are woefully unprepared for retirement and risk outliving their asset. We are all fortunate to be in a business that lets us deliver solutions to these problems by providing expert advice and levering the tremendous insurance products at our disposal.
On behalf of all of us at First Protective, we sincerely wish you and your families the most wonderful of holiday seasons, and a happy, healthy and prosperous new year. Thank you for all you do.
First Protective has partnered with the life insurance industry’s most groundbreaking paperless term solution yet – Vive. Vive has disrupted the process of obtaining term life, allowing carriers to issue term policies in a matter of days without traditional underwriting and with no paperwork. We’re asking our producers to give this innovative platform a try, because we’re convinced, you’ll discover a dramatic change in the order process and your clients will love how fast they get their policies.
Here are five new ways that Vive will save you valuable time, every time:
- Quote, compare and submit an order in just 5 minutes.
Vive gives you the industry’s fastest way to write term life insurance. Watch the 90-second demo at getvive.com.
- Get Accelerated Underwriting decisions in days instead of weeks.
Vive’s groundbreaking technology feeds data directly to insurance carriers. The direct feeds allow Vive to immediately determine your client’s AU eligibility. It’s a breakthrough that allows carriers to make more non-medical underwriting decisions in a matter of days. No exam, no blood, no medical records.
- The Vive Score.
Because price isn’t everything. In an industry first, Vive creates a weighted score to rate the overall consumer value of each product above and beyond price. No other online tool does so much to make consultative selling so easy!
- Real-time case status at your fingertips.
Vive automatically aggregates all of your case statuses across all Vive carriers in one location. Auto alerts via email or text let you focus on cases that need special attention. More cases stay on schedule with a lot less effort.
- We want to hold your hand with quote sharing.
Just contact First Protective today and ask us to run your quotes for you. We’ll start your order and send a Share-a-Quote link by text or email. You get instant access to the order for internal review, revision or finalization.
- Quote, compare and submit an order in just 5 minutes.
Join the term revolution. Log on to firstprotective.com and get Vive today!
September is Life Insurance Awareness Month. We at First Protective are very proud to partner with Life Happens, a nonprofit organization dedicated to helping Americans take personal financial responsibility through the ownership of life insurance and related products.
Like Life Happens, First Protective seeks to remind people of the important role insurance professionals perform in helping families, businesses and individuals find the insurance products that best fit their needs.
Nearly all of us have firsthand experience with the loss of loved ones, and those who have been around this business for a while have witnessed the incredible power of life insurance in helping to protect the financial security of those impacted by the loss of a family member or a business partner. Sadly, we have also seen the terrible toll that can occur for survivors when appropriate life insurance protection is not made a part of a long-term financial plan.
There’s simply no other product that can do what life insurance can in securing the hopes and dreams of the most important people in our lives. We should all be proud of our roles in reminding those we serve that life is for living, and they should make sure that their loved ones live on…with life insurance.
Throughout September, you’ll see plenty of First Protective promotions around Life Insurance Awareness Month, working with Life Happens and our carrier partners to give you impactful tools to carry this important message to your clients. But let’s remind ourselves that we should consider every day Life Insurance Awareness Day, as we carry out our noble purpose and mission to help those we serve deliver financial security to those they will leave behind.
The First Protective family mourns the loss of long-time friend and valued producer, Calvin Fleming, who passed away on April 12 at the age of 69. Calvin was a great lover of the outdoors, and it is somehow fitting that he passed away while working in his yard, which was one of his passions.
Calvin’s association with Protective Life began in 1979 as part of Protective’s Birmingham General Agency, which became the First Protective Insurance Group in 1983. Calvin worked closely with other founding members of the First Protective family, including Steve Briggs, Bill Dowell, Ben Coker, Park Lee and Buddy Stanford, and was one of the first registered representatives to join ProEquities. His loyalty to Protective Life and ProEquities and First Protective never wavered – he was a perennial First Producer Elite Producer and a familiar presence at our other events.
Calvin was well known for his enthusiasm, sense of humor, can-do spirit, and tireless dedication to serving his customers. He was also a great proponent of helping others, preserving nature, and reading, so his family suggests that in lieu of flowers, donations be sent to the Jimmie Hale Mission, the World Wildlife Fund, or the public library of your choice.
We will miss Calvin tremendously, and our thoughts and prayers are with him, his wife Donna, sons David and Adam, and the rest of his large and loving family.
by Matt Valente, Regional Marketing Director, Lincoln MoneyGuard ® Solutions
Whether your clients are pre-retirement age or younger, one of the best ways to help ensure that they plan for long-term care before it is needed is to include it in their retirement planning. Ask your clients this important question. It seems that with each passing year clients are facing greater demands on their income, even as their affluence grows. “From my relationship with First Protective advisors, I know that developing an efficient plan to meet current client needs, while not losing sight of the future, is a responsibility you take seriously,” says Matt Valente, Regional Marketing Director, Lincoln Financial Distributors(LFD). “It’s the rare client where trade-offs are not part of the planning process, “adds Matt, “so each decision is weighed carefully and your advice is as valued as ever.”
Every day you work with clients you see first-hand how important it is to work within their existing resources. Clients have learned how to make their resource go further by becoming more value conscious in their buying habits. From digital subscription fees to where they vacation, from the return on college tuition to how they shop for everyday needs, they’re spending more and demanding more in return.
When I’ve had an opportunity to meet with First Protective advisors, I hear about the challenges of trying to meet competing client goals; all of them important. I’m often asked, “how do I interest younger clients in making a commitment to long-term care planning when so many other goals are a priority?” One option is to appeal to their value mindset. Clients who plan early can build policy values, maximize their benefits and lower annual costs using a hybrid long-term care funding solution.
Early planning, when younger clients are generally in good health, makes it easier for them to qualify for coverage. With Lincoln MoneyGuard® products, they can use extended flex-pay to spread out premium payments during their working years and be paid up by the time they are 65. For example, since expanding the flex-pay program, we’ve seen more clients in their 40s and 50s use extended payment options. This feature enables advisors to present a solution to clients with lower premiums. Clients can afford valuable protection without having to sacrifice other priorities they may be funding.
When you help clients plan early, there are additional financial benefits that can add value to their long-term care coverage, especially when benefits are more likely to be needed. A client who selects inflation protection completes premium payments by age 65 and has no need to access benefits until age 80, will see their policy accrue additional yearly and monthly long-term care benefit amounts provided. no LTC benefits have been paid or loans or withdrawals taken. Should they decide they no longer want or need the coverage or the death benefit, they can use the return of premium option to recoup a large portion of what they paid, according to the schedule they elect at policy issuance. Granted, for some clients, the financial benefits of early planning may not be compelling enough to engage them in the long-term care discussion. Instead, you might want to ask them about their caregiving experiences. Most people are familiar with caregiving, having either provided care themselves or knowing someone who has. The caregiving experience—both good and bad—can be a good conversation starter because discussing it leads people to reexamine their attitude toward their own care.
*Scott Safford, Internal Marketing Consultant at Lincoln, stresses the importance of including the entire family in the long-term care discussion and having it before care is needed.
“Our research informs us that 9 in 10 consumers believe this is a conversation that should take place with their advisors, yet most advisors observe that conversations (75%) are triggered when someone close to them needs long-term care”. * Clients who postpone their planning may see their options shrink as they get older, making it more difficult for them to receive the type of care they
want. Involving the family in the discussion allows them to have an opportunity to learn about the attitudes they share and where they differ when it comes to their own care. Getting on the same page with their loved ones entails a realistic assessment of everyone’s ability to provide the care that may be needed. For families with children that are too young to be included in the conversation, “having a plan can help avoid drawing the children into caregiving when they get older and have their own families” adds Scott.
According to LIMRA, the types of long-term care solutions purchased are changing. Traditional stand-alone long-term care insurance made up just 21% of the market in 2017. ** Close to 80% of the market is life insurance with critical illness riders (39%) and life/LTC combination products make up the other 40%. Younger clients, whose only exposure to long-term care insurance may be through a parent or grandparent who purchased it many years ago, may be unaware of how these products have changed.
Traditional LTC insurance offers long-term care benefits for policy owners needing LTC and may be less expensive than established hybrid products that offer guarantees. Hybrids, however, offer LTC benefits if they are needed or death benefits if they are not. MoneyGuard also offers a return of premium benefit for policy owners who decide they no longer need care, if the option is elected when their policy is issued. According to Matt, “the benefits of hybrid long-term care products resonate well with clients concerned about the overall value of their investment in LTCexpense planning”. LTC benefits also come with tax- advantages. When policy owners access their benefits to pay for long-term care, those reimbursements are income tax-free. *** Death benefits and a return of premium options are also income tax-free. ****
Whether your clients are pre-retirement age or younger, one of the best ways to help ensure that they plan for long-term care before it is needed is to include it in their retirement planning. When discussing retirement risks, Matt suggests asking clients “how they would feel if a long-term care event meant that they could lose control of their assets”. Without a plan for long-term care, clients may find themselves in the awkward position of choosing between the type of care they receive and the legacy they planned to leave. Adds Matt, “that’s not a choice advisors want for their clients.”
There are two ways of obtaining medical records when cases are being shopped informally.
First, the agent can obtain medical records themselves from the client or from the client’s doctor. A completed First Protective HIPAA Authorization and Informal Inquiry will need to accompany the medical records. All documents must be sent to First Protective as many carriers will not accept medical records directly from an agent, even if accompanied by a HIPAA.
The second and most common way is for the agent to send the First Protective Authorization and a completed Informal Inquiry to First Protective and request that the medical records be ordered. First Protective’s medical team will then work with the APS vendors and, as needed, directly with the doctor’s office, to obtain the medical records.
To avoid confusion, please be sure to indicate which method you will be using so that records and fees aren’t duplicated. Please be aware that First Protective cannot reimburse you for the cost of medical records if a duplicate set was ordered at our expense!
Important Things to Remember When working with older age clients, there are usually many doctors involved. An APS is needed for all doctors. If there is a question of insurability, First Protective will order one APS from the personal physician to determine if the case can be shopped. Additional APSs may be needed and ordered after receipt of the first one.
When an APS is ordered, we are at the mercy of the doctor’s office when it comes to time served. Many facilities use their own special authorizations and copy services which take more time. You may be contacted to see if the client can call the doctor’s office and speed up the process.
Only request a “rush” on an APS if you are truly under a strict time constraint. The best option may be for the producer or client to obtain the records when it is known that a case is under a strict time constraint from the beginning.
By Misty McMinn
Indexed annuities were created to offer safety and guarantees with a growth potential greater than that of a fixed rate annuity. The originally indexed annuity was simple, basic and easy to understand without a lot of moving parts. The investment options originally were an annual point-to-point with a cap and a monthly cap with investor’s returns tied to the performance of the S&P 500. Before riders with fees were added as an option, the client was guaranteed not to lose any of their principal and since interest rates were higher at that time, many products had minimum growth guarantees of more than 1%.
Index Annuities Today
• No fee rider options
• Bailout provisions
• Competitive investment options
• Built-in inflation protection
• Long-term care riders available
• Attractive to conservative clients
• Stable investment
• Lifetime income
With index annuities, it is easy to get too focused on the capped potential and think that is negative. Since there is so much money in CD’s and other lower bear-ing accounts, now’s the time to introduce your clients to the guarantees that index annuities offer. If you’re not talking to your client about them, it’s more than likely someone else is. Clients are planning for longer retirements. Therefore, retirement funds need to last longer. Indexed annuities provide for minimum growth guarantees, principal protection, NH riders, and guaranteed lifetime income. Consider reallocating a portion of your client’s retirement funds to indexed annuities for peace of mind.
by Babs Hart
When people ask me why I work with First Protective, I have a simple answer, they help me run my business in a way that is the most efficient. They literally are the back room to my company. I am a small company with one assistant and have been that way for over 25 years.
If I did not have First Protective, I know that I could not have accomplished the goals that I’ve set with the clients that I served over the last two decades. The important advantage they give me is that I can always count on expert advice and honest opinions regardless of whether it’s to the advantage of First Protective or not. I believe they have invested in the kind of staff and support people that help to make my business credible.
The other reason I do business with First Protective is that it allows me to spend more time in front of my clients and prospects and less time researching websites and making phone calls to find the best solutions.
The thing that matters the most to me is that I don’t have to know everything because they have hired experts in the field that I can call to be certain that I am getting the most accurate information and staying on the curve with constant changes in the industry.
by Doug & Jessica Friedman, National Council for Estate and Business Planning for First Protective
October 24, 2018
Oftentimes, divorce is a fact of life – and an unpleasant stage of life that some clients experience. Nevertheless, it’s a phase of living where good advice is essential. Being knowledgeable about recent changes in the tax laws about divorce will increase your value to clients in need of this knowledge, and may, coincidentally, lead to sales. Here is how:
1. Change in Alimony Taxation:
Alimony will no longer be deductible—or reportable as income—after December 31, 2018. If you represent the payee, this change may mean that premium dollars for needed life insurance coverage are now available. For example, assume that a parent needs life insurance to protect minor children and not enough insurance is ordered by the divorce decree. In that case, if that parent has been receiving alimony, they may have been paying income taxes on it. The resulting tax savings from the new tax law may allow the parent to purchase the needed additional life insurance. If you have a prospect in this situation, the result may be finding the needed premium dollars.
2. Family Business Valuation:
The value of a family business is often the most important asset in a divorce. The new tax law provides additional deductions for business income. The deduction, under new section 199A, will be calculated in your client’s tax return. The deduction may increase the value of the business by increasing the profits. But, since tax returns are not due until later in 2019, a client contemplating a divorce may want to delay the proceedings until they see whether new section 199A will have an effect on business valuation. As an agent, you can encourage your client to seek a business valuation early on. The programs available through First Protective (ask Ronnie and Gail) may help to provide a framework to discuss business valuation and allow you to begin a discussion of business planning. Yes, it’s a difficult time to discuss such ideas, but the need at such times is great for good advice. The client should, of course, be advised to seek their own legal and tax counsel. But, again, you have added value by imparting your knowledge of these changes, and it may lead to buying/sell planning.
3. House vs. Retirement Plan:
In the past, the custodial parent most likely opted to keep the house, so that the children can stay in place there. But, now that state and local taxes are not deductible, the custodial parent may opt for a different asset, such as a retirement account. In so doing, that parent should review the allocation of the retirement account, and an agent can provide valuable advice as to where the money should be applied. It may be that a different strategy would be best, especially in view of the divorce.
U.S. Supreme Court Case. We often think that the U.S Supreme Court does not concern itself with beneficiary designation issues in a divorce, but that is exactly what it did in a case published June 11, 2018. (Sveen v. Melin). In this case, the court addressed the statutes in many states that cause the revocation of a life insurance beneficiary designation after a divorce if the beneficiary is the divorced spouse.
These statutes come into play more often than one would think. For example, a couple marries. One spouse purchases a life insurance policy and names the other as beneficiary. The couple then divorces and the divorce decree does not say anything about the life insurance. Later on, the insured dies.
Under a so-called divorce revocation statute, the named beneficiary is out of luck and may be considered as predeceasing the insured. In that case, usually, the contingent beneficiaries will receive the death benefit.
The theory behind these statutes is that the policy-owner would not want their former spouse to receive the proceeds. The Supreme Court held that these statutes are valid, and may apply to divorces that occurred even before the statutes were passed.
There may be exceptions, of course, under a particular state statute, such as whether the former spouse owned the policy or paid the premium; but the fact remains that during this stressful time in clients’ lives, it’s easy to forget about a policy. What we are seeing in our practice with insurers is that it’s not the big policies that clients may forget about, but smaller ones that, at the time of issue, may have seemed inconsequential. But, after a death, all of these policies are important.
If a client is contemplating divorce, the tax aspects are important, to be sure. In addition, you may want to remind clients to address all of their life insurance in a divorce decree. And, if they don’t, remind them to address beneficiary designations sooner than later, so that, if the Mack Truck theory applies to them (i.e., they step off the curb and get hit by one), the recipient of their life insurance is who they intended it to be.
Upon divorce, you can “add value” to the agent/client relationship by contacting the client and recommending a review of beneficiary designations, as many clients do not realize the effect that divorce may have on insurance planning.
By Gary Proco
Oct. 23, 2018.
While there are multiple stages for life insurance, let’s focus on a specific group of people ages 30-50. This age group consists of Gen X and Millennial generations.
First, consider income replacement. The size of the loss is equal to the years remaining in the workplace times the expected total income earned. Should they die, those who depend on them may suffer financially for years to come. This is why this group generally has the largest need for death benefit protection.
But, we have only been discussing pre-retirement income replacement. What about the risk of running out of money post-retirement? Everyone knows that Albert Einstein famously stated: “Compound interest is the eighth wonder of the world. He who understands it earns it…he who doesn’t…pays it.” So how can the average person use this? Time is king when it comes to compound interest. Therefore, while younger, it is wise to have death benefit protection plus cash value growth which can help supplement retirement income for their future, retired selves. This can be done through permanent life insurance, or in particular, indexed universal life insurance. This product not only provides death benefit protection but the potential for cash value growth to help while they’re living.
The point is to simply illustrate that in a world where people often live 20 to 30 years in retirement, both term life insurance and permanent life insurance can play an important role in providing wise financial protection. Indexed Universal Life products are not security investments, investments in the market or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.
Available for a Limited Time!
Lincoln is committed to offering one of the industry’s broadest and most diverse Life insurance portfolios, with products that provide competitive value to producers and clients.
Effective October 8, 2018, Lincoln announces an enhanced underwriting program to strengthen the competitive value of Lincoln’s Variable Universal Life (VUL) products.
For VUL cases fully underwritten at standard or better and
placed between October 8, 2018 and December 31, 2018,
Lincoln is offering a one-class underwriting upgrade.
Click HERE for more details
October 8, 2018 LG America/Banner announces a reprice of their OPTerm plan which includes a mix of decreases and increases. Rate decreases in more than 40% of pricing cells improved their ranking against core competitors. Less than 7% of rates increased and focused on female tobacco users at higher face amounts.
Click HERE for more Info
Click HERE for details
By Rachel Smith
Oct. 10, 2018.
Why is our theme Life Insurance at All Ages and Stages? It’s simple, we believe that selling insurance protection products are vital because it protects client’s financial well-being during times of unexpected loss and change, while at the same time giving them additional income options in retirement.
While most advisors will agree that their clients need some type of insurance protection, not everyone is comfortable bringing up the topic. After 20 plus years in this business and asking top advisors, I have discovered that there are three key things that make them successful.
The first step is using a needs analysis. This is very basic but effective. According to LIMRA, if you use a simple fact finder that demonstrates to your client how much insurance they need, you will sell larger policies and close more cases. This applies to both individuals and business owners. If you need a step by step fact-finder, First Protective can provide one to you which you can brand with your company’s logo.
Once you have determined how much insurance your client needs, the second step is deciding what type of policy to purchase. There are many different types of policies and companies available which can make this seem like an overwhelming task! We don’t want you to get bogged down in the details. There are several pieces that First Protective recommends that can help you through this process. One of the pieces I recommend is called, “Let’s make this simple.” This stepby-step decision guide can help your client decide if they need a term or permanent policy.
After determining what type of policy your client needs, it’s time to talk about underwriting. Typically, this is the most overlooked step in the process. Too often we see clients applying for a policy based on just the need without the information on what it takes to qualify.
The first step in the underwriting process should start with the Prequalification questionnaire. This one-page document contains the top 12 questions to determine a client’s health class. Once you have completed this task, use the accompanying Field Underwriting Guide to see if there are any major health conditions that may be highly rated or declined. If you determine that your clients have health history, family history, or activities that might cause them to be rated, then our advice is to reach out to one of our dedicated underwriters. At this point, they will assist you on what companies would be best suited for your situation.
After you have completed these simple steps, reach out to your dedicated marketing assistant team for illustrations and product suggestions. We believe selling insurance is much easier when you have a partner walking right beside you!
October 1, 2018 John Hancock will be offering access to the Vitality program on all policies moving forward!
Vitality GO: Simplified and free version that client can choose to participate in
Vitality PLUS: Vitality Rider as it is now.
Click HERE for more details
During the Start-Up phase business owners are typically focused on the basics. Cash Flow, Product or Service delivery, and building their staff. Planning essentials for this phase include:
• Health Insurance
• Property and Casualty Needs
• A Buy/Sell agreement
• Loan Indemniﬁcation
• Key Person Plans
These items give the owner the basic tools to protect the young business and also to attract and retain key talent at this critical point in the business life cycle by emphasizing the most important focus points of this stage: cost and efﬁciency.
During the Growth stage of the business, owners are focused on being more competitive. How do they improve their products, systems, and personnel to effectively capture more markets and proﬁts? Proper planning can aid in these objectives, especially in the personnel area.
Ideas in this space will include:
• Qualiﬁed Retirement Planning
• Golden Handcuff type plans
• Updated Buy/Sell agreement
• Basic Estate Planning
As the business grows revenue and overall value, it becomes more important to have these basic structures in place to protect the owners and employees.
The Maturity Stage of the business is the point where most owners begin to look at planning seriously. They consider generational and family issues which drive estate planning. Many are also looking at employees through a new lens. How do you reward those responsible for your achievements? How do you continue to attract the best people? When can you personally afford to slow down and enjoy what you built? Issues at this point will include:
• Estate Planning
• Supplemental Executive Retirement Plans
• Non-Qualiﬁed Deferred Comp
• Personal Tax Planning Strategies
• Long-Term Care Planning
After a successful career of growing and building the organization, the focus begins to shift to who can and will take over when you leave. Every owner’s plan will be different, but what is consistent is the need for a plan. Without a plan, you see ﬁghts and failures all too often. Owners should begin at least 5 years in advance of a targeted exit date to ensure the appropriate amount of time to properly evaluate both the “who” and the “how” of a well-executed business succession strategy.
Areas to be evaluated include:
• Stock Redemption Plans
• Outright Sales
Timing, taxes, costs, along with the “who” can signiﬁcantly impact the correct strategy for the “how” and the “when.”
September 19, 1981 to 2018
37 years ago, my dad John Stubbs, Sr. died in a car accident coming home from a USM football game. He was 41. My mom was widowed at 36. My sister was 14, and a freshman in high-school. I was 4. We lost our hero that day. Mom lost her best friend. The Mobile community, his employer Exxon, and countless friends lost one of the good guys.
This has been on my mind for several years – being the same age as my dad when he passed away. Call it what you want, I just wanted to get to this point. At 41, I have my own precious family now – Kasey and 4 wonderful kids. Of course, I have a risk plan in place like he did. Just in case, at least financially, things will be fine.
Then there’s the absence. Not having a dad is big deal when you’re a kid. I would not miss being there for my boys & girls – golf, baseball, football, gymnastics to name a few. I recently spent time in Texas with my cousin Vance. He’s in remission from AML since 2007. He told me to “hug and squeeze that family.” So I do. And I will.
It’s Life Insurance Awareness Month Friends & Colleagues – make sure you and those you love have a risk plan in place. And then hug and squeeze that family of yours.
By Jay Stubbs, CLU
Gulf Coast Regional Director
In 2018 if your organization doesn’t have a Business Facebook Page, you are missing out on a great opportunity to market your business and reach your target customer in an untapped pool of prospects. Besides all of the traditional marketing tools, social media marketing has been one of the first picks for small businesses as well as big corporations for their marketing plans. Follow these simple easy steps to create your own personal Facebook page to help market and brand your business as well as reach its full potential.
I. Create a Page on Facebook
The first step is to create your own personal Facebook account. If you already have one, you can use that one as the basis to create a business page, but if not,
go to facebook.com and sign up following the easy step-by-step process. After you finish creating your account, you will be able to create a Facebook business page directly from your profile. On your main profile page, look at the top right corner, and choose the drop-down arrow. When you click on it, you will see a list of options, choose “Create Page.” This action will open a new window where you can pick a category that would be the best description for your business. The two main options are Business or Brand and Community or Public Figure. Choose the Business or Brand option. You will then be prompted to fill out your company name and category. If you type in the word “insurance,” 1 2018 several options will come up to choose from, pick the one that best describes your business.
II. Upload your Profile Picture & Cover Photo
The best option and simplest choice for the profile picture is a logo of your company. However, if you are an independent agent, you can choose a professional looking picture of yourself. There is no limitation to this so you can also use other images which associate with your business, such as a street sign or storefront. The cover photo will look like a banner of your business Facebook page. You want the cover to be visually appealing and the best representation of your business. Normally we see a great number of other agents use a group picture of their entire employees.
Note: Because these pictures will represent your business so you want to make sure they are all in high resolution and visually appealing (hire a professional photographer is not a bad idea in this case).
III. Invite your Friends and your Customers to Like Your Page
After you finish uploading your pictures, another window will open and show you a preview look of your business page. Facebook will show you the directions for new users in a blue chat box; it is recommended following their directions. First thing will be inviting followers. Invite as many friends and customers as possible. You can also reach out to your core audience (customer information that comes directly from your database and people who visit your website; however, this action is more in-depth and requires more knowledge about Facebook advertising).
IV. Update Your Business Information
On the main page right below your cover photo, there is a square with three dots right next to the Share button. Click on that to find a list of actions that you can do to improve your page. Choosing the first one, “Edit Page Info,” will open another window. Another window will pop up which allows
you to fill in as many details as possible about your business. The more information you fill in to let your
customers know about you the better your page will inform potential prospects. Don’t leave off any pertinent information. The categories include everything from general information to prompts for a phone number, location, business website address url, and hours available.
V. Add A Button to Your Business Page
This function is your call to action which helps your customers respond directly from your page. The blue button, “+Add a Button,” is located on the upper right-hand corner of your newly created business page. When you click on that button the window below will pop up.
The best option is to choose within the “Contact You” category. You can then set it up for the prospect to call you, send a Facebook message, go to your website contact form page, or send an email. Facebook will give you a rating for how quickly you respond to potential customers who use this feature.
VI. Buy a Paid Advertisement on FaceBook
Facebook Pay Advertising
Paid advertisements are the “sponsored posts” that display on the right side panel or even sometimes in the timeline of Facebook users. Any post you make on your page can be sponsored to reach more potential customers. The stats are fascinating – there are over 2.2 billion users with the largest percentage – over 80% – in the Baby Boomer generation. Think of that – these are people in their fifties getting ready for retirement and you can reach them for just pennies on the dollar. Here’s what you need to do to get started.
Hit “Boost Post” on the particular ad you would like to sponsor. Make sure this post is of value to your audience, you need to give them something to get something in return.
Identify Your Target Audience
Who is your potential customer? There are audience customization tools you need to use to identify who you want to reach. As shown by the example below, you can customize your reach by age, gender, occupation, and region.
Now that you have established an audience, what do you want to advertise? A good campaign offers the prospect a reason to click to give you their information so that you can capture the lead. How about a Retirement Guide for Baby Boomers or a Life Insurance Calculator to determine how much insurance you need, or perhaps an invitation to a seminar on retirement or college savings?
Measure the Effectiveness of the Ad.
Facebook will give you analytics in real time to let you know how the ad is doing. You can actually change the ad in the middle of the campaign to help give you a better return on investment.
Need additional help? There are many third-party social media contractors that you can use to help with placing ads and understanding the customer profile as well as sorting out compliance issues. There are many reputable companies available that can help make a difference in your marketing. Look in your local area and ask around to find someone who will work within your budget.
Paid advertising on Facebook is the best in the game. Given its colossal user base, they have an enormous amount of data on people which allows you to create highly targeted sponsored ads. Boosting these posts to users that fit the profile of your ideal consumer will help you see higher conversions and a fast return on investment
Birmingham, AL – First Protective Insurance Group, Inc., a subsidiary of Protective Life Corporation, has appointed Greg Roventini, CRPC, AAMS as National Sales Manager effective September 20, 2018. In this role, Roventini will lead First Protective’s field sales team and network of regional sales support offices. He will be responsible for continued profitable sales growth across all product lines at First Protective and will be instrumental in key account acquisition and management, as well as distribution channel and geographic expansion.
Roventini is a 24-year veteran of the financial services industry with strong sales management experience and a proven track record of success in insurance and investment product distribution and sales support. He has a strong foundation of leadership, accomplishment and progressive advancement working in independent and institutional distribution channels. He is highly regarded for the ability to recruit and retain top talent and motivate sales teams to high levels of production.
Roventini most recently served as Vice President of Sales for Crump Life Insurance Service’s TIME Financial unit, where he led a team of 17 external point-of-sale life insurance specialists in wire house, bank and regional broker-dealer channels. He previously held key sales leadership positions at Genworth and The Hartford, as well as wealth management and financial advisor roles at SunTrust Bank and Charles Schwab.
“Greg comes to us with a tremendous background and an impressive track record, and I am confident he will add great value to First Protective’s advisors, distribution partners and key accounts. His leadership of our sales team will be tremendously impactful as we continue to increase the scale, stature and capabilities of First Protective,” stated Eric Miller, president of First Protective. “Bringing Greg onto the First Protective team is further evidence of our commitment to delivering the best in solutions, sales support and service. He is the right sales leader to build on First Protective’s successes and help us grow to the next level.”
Roventini graduated with a BBA in International Finance and Marketing from the University of Miami. He also holds the Series 6, 7, 8, 24 and 63 FINRA securities registrations and life and health insurance licenses.
ABOUT FIRST PROTECTIVE
First Protective is a full-service financial services marketing organization providing life insurance, wealth transfer products, fixed, indexed and immediate annuities and securities as well as disability and long-term care insurance, serving financial service professionals and insurance agents across the United States. Originally founded in 1983, First Protective is a wholly owned subsidiary of Protective Life Corporation. For more information about First Protective, please visit www.firstprotective.com.
First Protective Contact
Senior Marketing Consultant
Life Insurance Awareness Month brings to mind a chance encounter at a wedding reception a few weeks ago. I had not seen Brian in years, so we spent some time catching up. He told me about the terrific life he enjoys, the great business he has built, and how much he and his wife Jane are looking forward to traveling in retirement in a few years.
I enjoyed bringing Brian up to date about my family and all the changes we’ve been through recently and was delighted to listen as he painted a wonderful picture of how he and Jane are doing, in terms of health, wellness, and financial fitness. I told Brian about my role at First Protective and the ways we help agents, brokers, and advisors solve their clients’ financial and insurance needs. Imagine my surprise when Brian looked me in the eye and said, “Life insurance? I don’t need that anymore.”
After some follow-up questions for Brian, it was clear to me that he had a very narrow and misplaced view of what life insurance is for, and what it can do. He appreciated how life insurance provides income protection, particularly for young and growing families. But he thought he had outgrown that need since his kids were grown – and he had no understanding of the wider spectrum of solutions life insurance can provide.
In Brian’s case, just a few minutes of chatting revealed that he had some gaping holes in his financial plan that could have devastating impacts on both his business and his family — but he had no idea that he even had a problem! You see, Brian was making a very common mistake – confusing financial comfort with financial preparedness.
Like so many Americans, Brian and Jane had outdated views of life insurance, believing that its only real purpose is to replace the income of a family’s main breadwinner in the event of an early death. They had no idea that life insurance can be a vital tool in solving a wide spectrum of financial problems across the entire financial life cycle, let alone the tremendous improvements and innovations that have been made to life insurance products, purchasing processes and ongoing service capabilities. Most of all, they were clueless about the value of expert advice in employing life insurance as a critical element in a lifelong financial plan.
There’s a happy ending to this story. I was able to connect Brian and Jane to a First Protective elite producer in their particular area who is helping them review their insurance situation. Now, they’re well on the way to using life insurance to help solve three critical problems they didn’t even know they had – preparing for potential long-term care expenses, estate planning needs and a business continuation strategy. In other words, they’ve discovered that life insurance can provide solutions across all ages, stages, and phases of life.
There are a myriad of ways life insurance can deliver different protection and financial solutions across the decades of changing needs. Since it is Life Insurance Awareness Month, l hope this story and my chance encounter motivates you to think of some of your clients that need their eyes opened to the value of life insurance in providing effective solutions to some of life’s most critical financial problems.
Our team at First Protective stands ready to help – we’re uniquely equipped to provide you with the solutions, sales support, and service you need to help your clients answer long-term planning needs – across all ages, stages, and phases of life!
Effective September 17, 2018, Select-a-Term announces lower rates in certain issue ages and risk classes! The rate changes will included increases and decreases in certain cells. In addition, they have lowered the monthly modal factor from 8.65% to 8.55%, improving their positioning on a monthly basis. They have also raised the minimum face amount to $100,000.
Click HERE for more information
North American announces accelerated death benefit endorsements for critical, chronic and terminal illness on the ADDvantage Term product effective September 24, 2018.
Click HERE for details
North American also announces a Premium Deposit Agreement (PDA) for most single life Indexed Universal Life products available with applications dated on or after September 24, 2018.
Click HERE for details
Lincoln TermAccel Product Expansion and pricing improvements effective September 10, 2018
• Face Amount: $100,000 – $1,000,000
(Increased from $500,000)
• Issue ages: 18 – 60 (Increased from 50)
• Term Periods: 10-Year (NEW), 15-Year,
20-Year, and 30-Year
Goals of reprice include to be in “top 4 carrier” in the following expanded non tobacco core cells for all term periods
• Ages 30-60 for face amounts of $250,000 – $1,000,000
• Premium updates include a mix of both premium decreases and increases
Click HERE for more details
AND Pricing improvements to Lincoln LifeElements Level Term (2017) 9-10-18
• Goals of the reprice include being a “top 3 carrier” in the following non tobacco core cells for all
• Ages 55 and above for face amounts of $500,000 and above
• Ages 30 and above for face amounts of $1,000,000 and above
• Premium updates include a mix of both premium decreases and increases
Due to the continued low interest rate environment and prevailing market conditions throughout 2018, Securian is making the following cap and participation rate changes to our index universal life portfolio.
Click HERE for details.
Securian will also be offering two new index account options to their Orion Indexed Universal Life product, effective Monday, September 24, 2018.
Click HERE for details.