Maximize the Impact of Charitable Giving

74% of individuals give financially to nonprofit organizations.*

While making an annual gift with cash is simple, it is not always the most tax efficient option. Gifting long-term appreciated securities may provide a greater tax benefit and ultimately a greater contribution to the charitable organization.

Effective charitable planning strategies are available to help donors maximize the impact of their giving.

Help Your Clients Here

*2017 U.S. Trust Insights on Wealth and Worth®

Make Your Business Count for 2019

All of our carriers have established a final day to receive requirements for 2019 production credit (paid as 2019 income). All initial premium and final requirements must be received in the carrier's home office by these deadlines to be included in 1099 MISC for 2019. View Calendar

Regulatory Changes Coming
Effective January 1, 2020, all life products sold must be compliant with Principle Based Reserving (PBR), and the 2017 Commissioners Standard Ordinary (CSO) Table. All non-compliant life products must be placed inforce prior to December 31, 2019.

Make sure you know what you are selling - Many carriers have already made the regulatory changes to their products. Some carrier's products, meeting these regulations, won't be available until the new year. 

Contact MVP if you are not sure, because no exceptions can be made after the carrier's deadline has passed. 

Does Their Annuity Have These Options?

Some existing Non-Qualified Annuities do not have a Post-Death 1035 Option that allows for 1035 Exchanges upon the death of the annuitant or a Stretch Option allowing a beneficiary to stretch distributions beyond five years.

 
Why does this matter?
Without these options, beneficiaries are forced to take the money in a lump sum or over five years. This includes having to pay all of the required taxes in the distribution year(s). 

If you have these Non-Qualified Annuities in your current book of business, approach those clients to consider moving their money to an annuity that does have the Post-Death 1035 and/or Stretch Options. 

You don't want to start a relationship with heirs by having to tell them that their only option is to take the money and pay the tax. Wouldn’t it be better to tell them they also have the option of rolling it over or stretching it out?

Life Insurance Can Help Pay for Long-Term Care Needs

Medicare, Medicaid and other retiree health plans typically will not cover the expense of long-term care (LTC). It’s important to talk to your clients and assess their LTC needs, so that together you can create a financial plan to help prepare them for the costs they may face. For clients with a life insurance need, consider a life insurance policy with an LTC Rider.

Take advantage of Long-Term Care Awareness month to talk to your clients about their plans for handling an LTC event. Many people wait too long before discussing their LTC preferences and options and risk having to make decisions quickly and under the duress of an immediate need. Show them how an LTC rider can help them alleviate the potential financial, emotional, and physical burden that they and their loved ones could face if such need arises.

The subject of  LTC can make many people uncomfortable because it is equated with a nursing home. However, having the LTC conversation allows families to get on the same page regarding who will provide care, where care will be provided and how it will be paid for. Waiting until an LTC event occurs to force the issue often results in limited options.

Asking “What if?” questions is a great way to get the conversation started and encourages them to think ahead about what LTC actually involves. For most, LTC will begin at home with the help provided by family members and friends. At some point, care can progress to options outside of the home.

In a recent study by the AARP Policy Institute, half of caregivers reported they had no choice in taking on their care giving responsibilities. Proper planning can help ensure that your client's retain the power of choice in an LTC scenario. It’s especially important for couples to anticipate the cost of care for an ailing partner and preserve options for the surviving spouse’s continued living expenses and LTC needs.

LTC planning shares similarities with many other client needs you already address. Starting the conversation early allows for better options to your clients, which leads to more satisfaction and referrals.

The Role of Life Insurance in Estate Planning

Estate planning is often thought of as something that only applies to the very wealthy. In reality, there are several fundamental components of estate planning that everyone should consider to ensure their loved ones are cared for and their legacy lives on as intended. 

Life insurance is widely used in estate planning because it provides an important source of liquidity at the death of the insured. Since death benefits are usually received free of income tax, insurance proceeds can be free of estate tax as well, with proper estate planning. Whether it is used for personal, business, or charitable reasons, life insurance can help your clients plan for the future. 

MVP Financial has estate planning resources to assist you with proper planning for your clients. 

Use #EstatePlanningAwarenessWeek in your social media posts.

A Diagnosis of Breast Cancer Does Not Make Life Insurance an Impossibility

Breast cancer can affect both men and women, however it is far more common in women. It is the most common cancer affecting women in the United States and second only to lung cancer for cancer caused deaths overall. With today’s underwriting advances, life insurers have come a long way in their ability to insure breast cancer survivors, as well as those who may be an increased risk, due to family history.

Underwriting the mortality risk for breast cancer varies with the stage of the cancer. Non-invasive cancer has a better diagnosis than invasive tumors. Tumor size is an independent foretelling factor and each involved lymph node worsens the prognosis. Lifelong follow-up is required by the patient to detect relapses, which can occur decades after the initial diagnosis. Good and consistent medical follow up by your client will provide the full picture and is extremely important to the underwriting process.

To get started with the underwriting process, use this Breast Cancer Questionnaire from NAILBA for your clients that have been diagnosed with breast cancer and contact MVP Financial.

Take Your Practice to the Next Level

As the industry continues to recognize and celebrate Life Insurance Awareness Month (LIAM), it’s a great time to take a closer look at the latest digital solutions that can help you find new prospects, gain insights and sales strategies, and grow your practice in a wide variety of markets. Take your small business benefit offerings to the next level.

In today’s competitive business environment, business owners face several challenges in attracting and rewarding key employees, particularly for small, closely held businesses or pass through entities. Employers often seek a solution that is simple to implement and administer, tax- deductible, and includes a “golden-handcuff” element. Employees want tax-advantaged ways to save for retirement and protect their families. What’s more, employers and employees alike are looking beyond pure financial compensation towards more holistic planning, incorporating health and wellness programs as a component of a total rewards package.

An Executive Bonus Plan (aka “162 Bonus Plan”) or a Restricted Endorsement Bonus Arrangement (REBA) may be an excellent solution to achieve these goals. Under both of these plans, an employer selects a key employee to purchase a permanent life insurance policy on his/her life. The insurance premiums are then paid for by the employer in the form of a bonus to the employee.

With unemployment rates at almost a 50-year low and a competitive labor market,* it can be challenging for small business owners to find ways to attract, retain, and reward talented employees. An Executive Bonus Plan is one of the easiest approaches to enhance a compensation package for key employees.

*Bureau of Labor Statistics 2019.
Credit: John Hancock-Retaining Top Employees and Attracting New Ones

Life Insurance Awareness

Every September is your chance to take advantage of the phenomenal LIAM marketing resources available to support your outreach efforts.

Use the available resources and talk to your clients about the importance of life insurance. Start making the most of the campaign now and throughout the year. After all, it’s not just for them—it’s for their loved ones.

For your convenience, MVP has compiled numerous resources all in one place!

Get LIAM resources here

What You Should Know About IUL Bonus Multipliers and AG-49

credit: AIG

Over the last few months there has been increased scrutiny concerning the Index Universal Life Insurance (IUL) bonus multipliers carriers have introduced to enhance the illustrated performance of their indexed product portfolios. 

IUL is a popular product that can have many nuances. Designs and features are continually evolving. That's why it's essential for the advisor and consumer to review all components of an IUL product before deciding if it's right for their particular situation. 

What is an IUL Bonus Multiplier? IUL Bonus Multipliers are a method of modifying the caps, par rates and interest credits that determine the illustrated interest rate without increasing the stated interest rate.

Unless you really know what you’re looking for, you may not realize that the illustrated interest rate is being “enhanced” in the background. It creates a way to “enhance” illustrated results while stating a “more conservative” illustrated rate. These IUL Bonus Multipliers technically follow the letter of AG-49, but do they really follow the spirit of AG-49?

In 2018 the NAIC formally instructed the IUL Illustrations subcommittee to provide recommendations to modify AG-49. This recommendation comes as the popularity of IUL bonus multipliers soars. And remember, these IUL bonus multipliers are currently excluded from the AG-49 calculation used to derive maximum illustrated rates.

IUL multipliers break the connection between AG-49 maximum illustrated rates and effective rates on an illustration. A 6% AG-49 rate on a multiplier product can generate effective rates from 6.6% to 9%, depending on design & pricing. AG-49 maximum rates have reduced illustrated rates, yet illustrated income continues to climb. Most IUL bonus multipliers have a charge associated with them which are assessed every policy year against the accumulation value allocated to the index accounts with IUL multipliers. And the charge has the potential to lower policy values.

The IUL bonus multiplier percentage may be non-guaranteed. Even when they’re guaranteed, they only guarantee is the formula, not the actual returns, which are still subject to market performance. The IUL multiplier is earned on positive index interest returns only. There is NO bonus multiplier credit when the index return is 0 percent or negative.

IUL bonus multipliers increase values on an illustration, since many carriers believe they may be excluded from the maximum illustration rates dictated by AG-49.

THE BOTTOM LINE: You cant believe everything you see! Get the AIG Multiplier White Paper

The Easy Underwriting Path

It is the quick and easy path to an underwriting decision; usually without involving labs or exams. However, it's important to be mindful when promoting these types of programs with your clients.

Many of your clients may not qualify for accelerated underwriting, so it's vital to set appropriate expectations ahead of time. Know the details to these programs beforehand and pre-screen your clients.

Examples of Accelerated Underwriting Programs

A Huge Financial Concern for Home Owners

by Assurity

We are all familiar with using Term as mortgage protection. In the event of the death of the insured, the death benefit can be used to pay off the insured's mortgage. What you might not realize is that there is a huge exposed financial concern. What happens if your client lives through a critical illness

such as Cancer, a Heart Attack or a Stroke?

Diseases like Cancer, Heart Attacks and Strokes not only leave emotional devastation on the individual affected, they can take away the ability to work and earn a paycheck and leave a family in financial ruin. Critical Illness will pay your client a lump sum cash benefit upon the first-ever diagnosis of a covered condition. This means your client can use the money for whatever they choose, even to pay off a mortgage and use the remaining funds to pay medical bills.

Close the protection gap and discuss Critical Illness for mortgage protection with all of your clients today!

Planning Strategies for Business Owners

by Thomas F. Commito, J.D., LL.M., CLU®, ChFC®

Planning strategies featuring life insurance not only protect an owner’s business investment but also provide the owner with a source of supplemental retirement income. Life insurance can be used to create powerful employee recruitment and retention incentives. It is frequently used to facilitate business continuity by funding buy-sell agreements, equalize estates for family wealth transfer, and provide funds to pay estate taxes. With appropriate income tax structuring, a business owner may use business assets to provide valuable fringe benefits to the business owner and key employees.

This white paper from Lincoln Financial provides insight into these essential business strategies: business succession planning, protecting against the death of a key executive or owner, and executive benefit planning using life insurance for the owner and key executives. You’ll find detailed information to assist you in helping your business owner clients achieve their goals.

Insure the Risk of Alzheimer's and Dementia

According to SmartBrainAging.com, the diagnosis of Alzheimer’s or dementia has grown rapidly over the past 15 years. Deaths from Alzheimer’s have increased by 145% and every 65 seconds someone in the United States develops the disease.

Medicare does not cover long-term care, which is typically one of the largest

expenses for Alzheimer’s or dementia. If you qualify, Medicaid does cover long-term care like extended stays in hospitals or skilled nursing facilities. However, individual states run their own Medicaid programs, so you’ll want to contact your state’s Medicaid agency to find specific coverage information.

If you have clients that are saving for retirement, the odds are pretty good that they won't qualify for Medicaid, and since Medicare doesn't cover long-term care, what can you do to help them prepare for the high cost of care? 

Insure the Risk:  Today, there are many options to choose from that will help insure the risk and keep your clients' retirement savings intact. From traditional LTC and critical illness policies to hybrids that cover the cost if the need arises and pays out a death benefit to designated beneficiaries if doesn't. 

We can assist you in finding the right insurance solution for your clients. Give us a call at 888-774-4687 or check out our website at www.mvp4me.com. 

Source: http://www.smartbrainaging.com/

Take Advantage of June

Annuities are popular with investors who want to create guaranteed retirement income to last them the rest of their lives. Tell your clients what makes annuities different: 

• Guaranteed retirement income means you can’t outlive your money.
• Earnings on your savings can grow tax-deferred until payout.
• Flexible payout options can provide you income when you need it.
• Death benefit options help create a legacy for your beneficiaries.

Get Annuity Quotes Here
Get Annuity Resources Here   

Stroke: Leading Cause of Serious, Long-term Disability in US

Nearly three-quarters of all strokes occur in people over the age of 65, and the risk of having a stroke more than doubles each decade after the age of 55. Strokes can and do occur at any age; one fourth of strokes occur in people under the age of 65. On average, someone in the United States has a stroke every 40 seconds.

Talk to your clients about protecting their income and assets if they become too sick or hurt to work. Use these Fact Finders to uncover the best insurance solutions for their unique situation. Then help them get the coverage they need! 

Stroke Strikes Suddenly--Use BE FAST to Remember the Warning Signs of a Stroke:
B   BALANCE: Is the person unsteady?
E   EYES: Ask the person if their vision has changed.

F   FACE: Ask the person to smile. Does one side of the face droop?

A   ARMS: Ask the person to raise both arms. Does one arm drift downward?

S   SPEECH: Ask the person to repeat a simple phrase. Is their speech slurred?

T   TIME: Ask the person if they have a TERRIBLE headache...If you observe any of  
                these signs, call 9-1-1 immediately.

#strokeawaremay

30% More Income

Advisors who offer disability insurance (DI) earn 30% more income than advisors who don't, and if you have clients that depend on their ability to bring home a paycheck, then you have clients who need DI. If you are not offering it, then someone else will.

During May, Disability Income Awareness Month (DIAM), we can help you learn more about the importance of offering disability income insurance to your clients. It’s often overlooked as part of a sound financial plan, but can be the most important insurance your clients own in the event of a disability. After all, ones income sustains a lifestyle and supports all financial assets, so it makes sense to protect it.

Learn more about DI (any time of the year) and talk to MVP Financial Services about the right DI plan to fit your clients' needs.

*Disability Insurance Awareness Month is an industry-wide event coordinated by Life Happens.

Know the Difference: Long-Term Care vs. Chronic Illness Riders

Not all riders on life insurance policies are the same. Long-term care (LTC) riders and chronic illness riders may seem alike, but when it comes to filing a claim, there are crucial differences to consider.

Making sure your clients are covered with a true LTC rider will give them the flexibility to protect against both temporary and permanent claims, and it’ll save you from having a very difficult conversation at claim time. Nationwide offers a true LTC rider that:

• Pays temporary as well as permanent LTC claims
• Tells you at policy issue what the LTC benefit will be
• Accelerates 100% of the death benefit regardless of when a claim begins

Know the difference BEFORE your client buys coverage!

Using Life Insurance to Pay for Long-Term Care

Opinions differ on whether an Acceleration Rider on a life insurance policy is an adequate substitute for a separate LTCI policy or not. The answer depends, in part, on the size of a life insurance policy, the money received while the policy is in-force to pay long-term care costs, and how much long-term care is expected to cost at the time it's needed.

66% of Americans surveyed say long-term
care planning is important, but only 20%
have discussed the topic with an advisor 

If you do the math, you'll discover that an LTC Rider on a life insurance policy won't cover all of  the possible long-term care expenses. In fact, it may give a false sense of security that all needs would be met. And keep in mind that long-term care benefits received will reduce a policy's death benefit, possibly leaving little or nothing for beneficiaries.

However, the premiums on a stand-alone LTCI policy can be very costly, depending on current age, health, and the benefits offered. If these costs make such a policy too expensive, an LTC Rider on a life insurance policy may be a reasonable middle-ground solution. An LTC Rider can allow for tapping into the funds in the future, should the need for long-term care arise. 

For help in assessing your clients' personal situation, consider these Agent Resources. 

e-Everything!

First came electronic applications; now comes electronic policies!

Like it or not, many carriers are making the transition to Electronic Delivery for policy issue. This no-paper method provides customers a secure delivery experience, ensuring In Good Order delivery submission for faster placement and faster commissions paid to you.

The electronic process from start to finish is the wave of the future:

• No paper
• Faster cycle times from application to commission payouts
• Easier underwriting (sometimes without exams)
• Less hassle, frees you up from the application and delivery process
• Happier clients!

Ensure Care for Children with Special Needs

Estate planning is important for all families, but it’s critically important for families with special needs children. Parents of special needs children face unique challenges, such as ensuring there are sufficient funds available at their death to care for their child, finding appropriate caregivers and guardians, and selecting the correct trustee to manage and distribute inheritances via special needs

trusts.

SUGGESTIONS for families with children with special needs:

• Establishing a team of advisors, along with you, to help with estate planning but particularly to assist with the ongoing care of children with special needs through adulthood. 
• Meeting with a qualified special needs estate planning attorney to prepare or update various documents, including a will to name guardians and a special needs trust to hold assets. A revocable trust, powers of attorney and medical directives may also be necessary. 
• Reviewing the titling of assets to ensure they are held in trust or special needs children, because outright distributions could disqualify government assistance. 
• Talking to siblings and parents about being guardians and discussing their responsibilities. 
• Creating an independent trust, and funding it with life insurance. The special needs trust must be set up in such a way that it accepts gifts. 
• Preparing a Letter of Intent outlining the parents’ desires and hopes for their child with special needs, along with critical information pertaining to his or her care.

The following case studies demonstrate common and real world scenarios you may encounter while working in this market: Case Studies

Valentine's Day at White Castle

by Pam Franzen, MVP Brokerage Sales Director

White Castle has a white table cloth Valentine’s dinner, and that is where Rich and Mary were going this year to celebrate, what will probably be their last Valentine’s Day together.

Why? Rich has Stage IV pancreatic cancer with less than a year to live according to his doctors.

Last summer, an advisor I work with, called and asked if I could talk with his clients, Rich and Mary,  regarding the acceleration of the terminal illness rider on a very old life insurance policy. It was coming to the end of it’s 20-year level term, and they were about to drop it, when Rich received his diagnosis.

They were guarded at first, because they thought if the carrier found out about the diagnosis, they would drop him! He wouldn’t even provide me with the policy number. We spoke in terms of “what ifs.”

Over the next few weeks, we spoke a few more times, I sent them the paperwork to begin the process, and they said they’d contact me if necessary. A few months later, they did.

Rich’s employer kept him on through his chemotherapy treatments for as long as they could, but as his treatments increased, so did his absences from work. They could no longer continue paying him.

Rich and Mary had very little in savings and two children in college. Mary’s mother had recently passed away in a Medicaid facility. She had no long term care plan and had been battling Parkinson’s for 8 years. Rich and Mary had helped out financially as long as they could, but Mary was diagnosed with breast cancer and their funds were exhausted. (Mary is in remission after 2 years of treatment).

They had nowhere to turn, other than an estate planning attorney, who recommended them to the advisor, who then recommended I speak with them. Rich had already read through every line of his life insurance policy, and knew the death benefit acceleration might be an option.

I called the carrier, and it took two weeks to get a return call with the name of a contact person and a processor. Meanwhile, Rich completed the forms and notified his oncologist that we would need a statement and medical records. Telling Rich what we needed was one of the most difficult things I have had to do.

Last week, the carrier's claims person emailed us and said they would pay 50 percent of the $600,000  death benefit, minus an 8 percent one-time loan. Rich and I knew that was what the new policies offered, but  his policy said it would pay “up to 100 percent.” I told the carrier's claims processor, that 50 percent was unacceptable, and we wanted 100 percent. Within an hour, he called back and said that he sent it up the ladder and they would paying 100 percent! (We got an “exception”)

 

Rich and Mary requested a wire transfer, and $549,000 was transferred in to their bank account. I immediately received an email from them that said, “Success! We are forever grateful to you, and don’t know how to thank you. We would like to meet you in person and thank you face to face. Red or White?” 

They came to my home and brought the basket pictured. They were so grateful for what we were able to accomplish. They said they told all their friends NOT to drop their life insurance and shared their story… then, they were off to celebrate at White Castle!

Mary and Rich now have enough money to last them a few years. He has another life insurance policy that they will keep inforce, and Mary has one that I will review for her. The advisor is meeting with them to help stretch the money with some investing, and the estate planning attorney is working on their estate plan. I will work with Mary on a long term care plan, and she will introduce me to the estate planning attorney.

There are days when the work we do is frustrating and difficult, but seeing how these wonderful products we sell work in real-life, is truly rewarding! It makes all that frustration and difficulty worth it.

Athletic Heart

Since February is American Heart Month, we thought it was a good time to talk about Underwriting the Athletic Heart. How many times have you heard a client say, "I'm in excellent shape... I'm a runner... I'm a weight lifter..."? So, you submit the application and are surprised to learn that the case is not preferred. How can this happen to a perfectly fit and athletic applicant?

The changes that occur with an athletic heart, which are also referred to as cardiac remodeling, are not felt to be pathologic and so a true athletic heart usually should not be associated with an increased mortality risk.

Endurance training results in dilation of the heart and can cause an increase in the thickness of the heart muscle. This type of training (also called dynamic, isotonic or aerobic training) includes cycling, swimming and long distance running. The pattern of combined dilation and thickening of the heart seen with endurance training is called eccentric hypertrophy.

Strength training (also called static, isometric, anaerobic or power exercise), which includes wrestling and weight lifting, exposes the heart to large increases in blood pressure. This predominantly results in increased wall thickness, known as concentric hypertrophy. Engagement in both endurance and strength training can result in a mixed pattern.

While it can sometimes be difficult to differentiate an athletic heart from pathologic cardiac  conditions, the results of cardiac testing can provide clues. For example, diastolic dysfunction, which is a stiffening of the left ventricle, should not be present on echocardiography in an athletic heart. If there is hypertrophy localized only to the interventricular septum, which is the heart muscle that separates the left ventricle from the right ventricle, one should suspect the presence of hypertrophic cardiomyopathy, a primary disease of heart muscle.

Read the full Underwriting Dialogue from Legal & General America

Metabolically Healthy Obesity

People with metabolically healthy obesity do not exhibit metabolic abnormalities commonly seen with obesity, such as dyslipidemia, hypertension, and hyperglycemia. The reasons some obese people retain metabolic health are being studied and may include more favorable distribution and function of adipose (fat) cells, decreased levels of inflammation, preserved insulin sensitivity, and other

processes.

While at one time it may have been thought that metabolically healthy obesity was a benign condition, that is no longer an accepted belief. It has been found that many metabolically healthy obese people do develop metabolic abnormalities over time. Additionally, some studies have shown that metabolically healthy obesity is associated with an increased risk of cardiovascular disease and increased mortality. A recent study observed an increased risk of cardiovascular disease in those MHO participants who went on to develop metabolic abnormalities.

Thus, rather than a permanent condition associated with lifelong health, metabolically healthy obesity should be considered to be a dynamic process that may be temporary. Hopefully more information will become available in the future that will allow better understanding of this interesting entity.

Read the full Underwriting Dialogue from Legal & General America

Happy Anniversary to YOU!

It may technically be our anniversary, but we have producers like you to thank for our success in providing life insurance solutions to thousands of customers over the past 20 years! 

Our principals and staff came together in 1999 to form MVP Financial Services, Inc. because we believe that life insurance is important and plays a significant role in solving real-life problems for many Americans... More