This week we wanted to talk about the leverage, tax advantage and guarantees of Single Premium Life. How can you use it to increase value to your clients and increase your income?
It is well known that the vast majority of annuity owners rarely, if ever, make withdrawals from their annuities. Most leave the money to heirs. While annuities may be great accumulation, tax-deferral, or income tools, annuities are not the most tax-efficient resource at your disposal.
The fact is life insurance leverages money income-tax-free. The problem for most agents has always been that it also involves underwriting hassles and delays and clients who are reluctant to undergo a long invasive process.
In this day there are virtually limitless case design possibilities when it comes to life insurance – with all the carriers and products available. What we want to focus on with you today are life contracts specially designed for re-positioning of assets, to maximize leverage, illness and tax benefits while still remaining transactional enough to get placed quickly and efficiently.
The Key Features
Key features on specially designed Single Premium Policies include:
- Simplified Issue Underwriting, designed to accommodate clients in good but not necessarily perfect health, usually application and phone interview, no exams or doctor visits.
- Immediate leveraging of premium up to 100% or more depending on age.
- Most have some type of return of premium guarantee.
- Many have indexed crediting options for potential growth of cash value AND death benefit.
- SPLs typically have Tax Free accelerated benefits that are enhanced beyond what you will see on other life contracts, some SPLs have Chronic illness benefits strong enough they can reduce or eliminate the need for expensive long term care planning.
- Most SPLs are also going to have emergency liquidity via various kinds of partial surrender and policy loans options.
The Best SPLs
The best designed and most popular Single Premium Life?s incorporate most or all of these key features, issue to age 80 or 85 AND offer competitive commissions particularly when compared to Annuities at older ages. Also, in this day and age of increased regulation and compliance hurdles, with the liquidity and guarantees of SPL, suitability scrutiny is rarely an issue.
Sources of funds may be savings, life insurance cash value, annuity monies, stock funds or others. The one thing to keep in mind is that generally the best way to fund an SPL is with lump sum non-qualified monies. There are SPL-like products designed to accommodate qualified funds or periodic pay options as well, however they are less common and generally not quite as powerful.
>Whatever your exact specialty or focus is, adding Single Premium Life to your offering can help you get sales and increase your income by servicing clients interested in using life insurance to immediately leverage their assets for illness and wealth transfer without risk on a tax free basis.
Call SilverSide Today!
To see the illustrated power of Single Premium Life for a client of yours, or for other product, design, and marketing ideas, call SilverSide today at 480-998-1286 or visit our Contact Uspage!