DIY Campaigns

April 25, 2025

Indexed UL with an Exit Strategy

The shifting landscape of economic conditions continually influences the appeal of permanent life insurance products. While newly issued policies can adapt to prevailing market dynamics, in-force policies often face the challenge of underperformance relative to initial sales illustrations. This reality places financial advisors in the difficult position of managing client expectations and navigating potential solutions. However, a well-structured policy can offer built-in flexibility, mitigating the need for reactive course corrections.

April 11, 2025

The Middle Ground Between a MYGA and an FIA 

One of the fundamental aspects of financial planning is aligning a client’s risk tolerance and time horizon with a suitable product solution. However, this can be challenging when a client’s true appetite for risk falls somewhere between available options, as is often the case in the annuity market. Many annuity buyers seek an option that provides more potential growth than a Multi-Year Guarantee Annuity (MYGA) but without the return volatility of a Fixed Indexed Annuity (FIA). Finding this middle ground has been a challenge—until now.

December 6, 2024

A Balanced Approach to Accumulation IUL Case Design

The conventional approach to designing accumulation-focused Indexed UL strategies involves minimizing the death benefit. Often, this is combined with using the maximum AG49-compliant illustrated rate to squeeze every dollar of projected income out of the product. While that can produce a compelling illustration, it may not be the most effective approach in the real world. That thought process is often the reason for stress testing or reducing the illustrative rate, even if it results in a reduced illustrative income. The truth is there is another, perhaps more meaningful, alternative design that can deliver more consumer value from virtually any Indexed UL product.

December 6, 2024

Strategic Income from Downside Protected Life Insurance

A more thoughtful approach regarding when to take income from downside-protected insurance assets can make a massive difference in your client’s retirement outcomes. History is full of periods of market volatility. Most recently, the extended bull market ended in spectacular fashion in 2019, ushering in a period of volatility that makes clients nervous. This period can represent an interesting buying opportunity for those still working to accumulate wealth. Taking advantage of that opportunity can expose clients to swings in both directions, causing some to think twice before committing assets. For others, including those closer to or in retirement, volatility threatens a successful retirement.

December 6, 2024

Annuity-Based LTC Making the Case

It can be tempting to use an “apples-to-apples” approach when considering the premium deposit used to fund an Asset-Based LTC solution. Given the availability of a tax-free 1035 exchange when an annuity is the source of funds, it’s critical to take any taxes due on the surrender of the annuity into account when determining the amount available to fund the strategy. We all know how important it is to keep things simple for clients. Covering the essential components of a planning strategy as efficiently as possible increases understanding and improves the quality of their decisions. However, in the Asset-based Long-Term Care (ABLTC) segment, a detail that is often overlooked is the source of funds. Specifically, clients need to understand the pros and cons of using non-qualified funds versus qualified funds and annuities versus brokerage accounts when funding their care planning strategy.

December 6, 2024

Planning for a Long-Term Care Public Option

Clients have Long-Term Care on their minds, and the legislative activity from the states may be the most effective “marketing” our industry could ask for. The issue is defining an approach that clients can use to evaluate available public options for Long-Term Care. There is a significant change on the horizon in the Care Planning space. The impact of consumers being unprepared for the cost of care and the corresponding stress this places on existing programs and budgets has led many state governments to take action by introducing legislation that creates a “public option” for Long-Term Care insurance. This coming wave of state-level Long-Term Care legislation puts clients in a tough position: How can they prepare for any new legislation and the associated new income tax while the final form of that legislation remains unknown?