Monthly Archives: May 2013

How well do you know North American’s Guarantee Builder IUL?

Have you ever taken a moment to compare North American’s Custom Guarantee product to the Guarantee Builder IUL product?  If not, now is the time to start looking at the Guarantee Builder IUL!

Did you know, the Guarantee Builder could mean more cash value or an increased death benefit for the insured in later years & a higher target that pays 5% more commission to the agent?

To help break this down I have provided a chart below that corresponds with 6 real life illustrations that are attached.  The differences in premium are minimal when you compare how much they get in return for those few extra dollars a month!

Custom Guarantee Guarantee Builder IUL
41 Male
$150k DB
  • $96.43/Month (only $9.31/Month more)
  • Target $1146 ($99 more + commission is 5% higher)
  • CV @ 65= $24K (5.5% assumption) 33k (7.5% assumption)
  • DB begins increasing at age 84 under the 7.5% assumption
  • click here for the full illustration
47 Female
$50k DB
  • $49.56/m ($3.25/m LESS)
  • Target $667 ($80 more + commission payout is 5% higher)
  • CV @ 65 = $3500 (5.5% assumption) $4500 (7.5% assumption)
  • DB remains level
  • click here for the full illustration
47 Female
NT Table 3
$150k DB
  • $171.67/m ($10.21/m more)
  • Target $2061 ($45 more + commission payout is 5% higher)
  • CV @ 65 = $28k (5.5% assumption) $35k (7.5% assumption)
  • DB begins increasing at age 81 under the 7.5% assumption & at age 93 under the 5.5% assumption
  • click here for the full illustration

In many situations the Custom Guarantee can be the product of choice; however it is not designed to build cash value and therefore does not provide clients with any flexibility or control for their future.

With the Custom Guarantee:

      • Clients continue to pay the premium to keep the policy inforce so a death benefit can be paid upon their death.
      • Or, they can exercise the Guaranteed Exchange Provision, which allows them to exchange it for another North American policy (with the exception of Term or Survivorship), where they retain their rate class from the original policy and do not have to go through UW for the new policy.  The new policy will use their current attained age.
      • Clients stop paying the premiums and cancel the policy, at which time they get nothing in return for the premiums they have paid into the policy
      • Or, they surrender the policy for the surrender value, where the surrender value is minimal or most likely zero. 

With the Guarantee Builder:

      • The client may pay a slightly higher premium to have a guaranteed death benefit just like the Custom Guarantee, but they have the added potential for cash value accumulation
      • In addition to having the guaranteed DB, the cash value in of the policy can provide added benefits:
        • May provide flexibility to skip premiums based on index performance & cash value build up
        • May provide the option to withdraw or loan the cash value based on the index performance
        • May increase the DB in later years based on the cash value growth as a result of the index performance
        • Surrender value may be available based on the index performance if they want to move to another life insurance product (via 1035) in the future.

When an client asks for a Universal Life or Permanent illustration make sure you send them a Guarantee Builder IUL illustration as well!  By taking a few extra minutes to run a Guarantee Builder IUL illustration you are providing the client an option they may not have been aware of!  I like to call the Guarantee Builder IUL ‘the best of both worlds product’ because clients get the guaranteed death benefit they need plus cash accumulation they desire!

If you are not sending out a Guarantee Builder IUL quote when a client is looking for a guaranteed death benefit – you should be!

Contact Steven Hipsher @ 732-758-9300×165 or for more information today!

The full-service fiduciary

Regulation is sweeping the industry worldwide and will change the way insurance agents and financial advisors conduct business in the future.

full_service-resize-380x300In 2010, the passage of the Dodd-Frank Act in the United States required a uniform fiduciary standard covering both stockbrokers and financial advisors when providing personalized financial advice. Recently, the Australian legislature imposed a fiduciary duty to act in customers’ best interest applying to all retail products, including superannuation and investment products. In the Netherlands and U.K., they are banning commissions and moving to a fee-for-advice model.

Registered Investment Advisors have both a suitability requirement and a fiduciary duty. They are regulated by the SEC and are normally paid through a percentage of assets under management or on an hourly basis.

Let’s take a look at the definition of a financial advisor, according to Annuity Digest:
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NEW FINRA’s Regulatory Sweep: Outside Business Activities

The Financial Industry Regulatory Authority (FINRA) has made the supervision of Outside Business Activities and Private Securities Transactions a top exam priority over the years. In 2011, the regulatory agency listed OBA’s on its Annual Regulatory and Examination Priority Letter, in 2012 FINRA made OBA’s a topic of interest at its annual conference, and already this year, the National Examination Program has announced that OBA’s will be an examination priority for 2013. Being a current obstacle facing the broker dealer community, it should come at little surprise that last month FINRA took targeted action against a list of individuals, due to OBA infractions.

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TFS Insurance Agency, Inc. – Simplified Application Service

Increase your productivity when you sell life
using the TFS iGo System.



*No reduction in commissions
*No paperwork
*No more missed forms
*No problems

Results you can expect:
-An average of 20 less days spent in underwriting
-10% fewer APSs ordered
-59% of cases approved as applied or better
-Reduction in time/money spent on prospecting

This FREE platform is accessible to you by logging in to
o client signature required** **We order all requirements** ** Full back office support from TFS **

This means increased profitability
Greater efficiency
Higher placement ratios
Greater efficiency

Call Steven Hipsher at 732-758-9300×165 today for a demonstration of this amazing
tool that will change the way you do business.



TFS Insurance Agency, Inc.  – Underwriting Hot Spots

Tomorrow's Financial Services, Inc.
American General: The Visa Holder and Foreign National Guidelines definition of Foreign Nationals has been updated. View Details
Aviva: With Aviva’s Table Reduction Program, client’s who are rated up to Table 3 will qualify for standard underwriting, provided they meet the other eligibility requirements of the program.
Genworth Financial: Preferred No Nicotine Use class is available for Private Pilots pleasure flying only: Instrument Flight Rating licensed, 26-150 hours per year.
ING: Total cholesterol up through 300 is eligible for consideration of Super Preferred Rates. Click to view ING’s Top 12 Underwriting Guideline Advantages.
Banner Life LGA no longer considers a family history of cancer as a factor preventing applicants from consideration for preferred classes unless there are features of the family history that suggest a hereditary cancer syndrome may be present. Learn more
Lincoln Financial: Table Reindividual products. Both lives on survivorship products can be re-duduction Program: Medical impairments with table rating of Table C or less will be reduced to standard on ced to standard provided both are Table C or less and both lives are age 70 or less. View Underwriting Guidelines
MetLife: Financial underwriting estate conservation guidelines have been recently revised. Learn more
North American: North American offers expanded underwriting capabilities in the older age market, including Super Preferred and Preferred criteria at ages over 70. View Top 10 Ways to Benefit from North American’s Underwriting.
Protective Life: Protective Life’s flexible approach to underwriting is designed for real-life scenarios. Take a look at a real life applicant with Prostate Cancer.
Prudential: Prudential has an extensive library of Rx for Success newsletters that explain medical impairments and other underwriting issues in “lay terms”.
SBLI: Underwriting sweet spots include asthma, sleep apnea and type II diabetes. Click to view SBLI Agent Underwriting Guide.
Transamerica: Kick back… A Family history of certain gender-specific cancer can get Preferred Plus Premiums. Learn more
United of Omaha: Express products offer simplified underwriting! Click to view Express Products Reference Guide.
Call Steven Hipsher @ 732-758-9300 x165 or today for help on your next case.

Social Media Works, Advisors Say

Moving beyond the hype and regulatory angst, financial advisors are landing new clients via social media, according to Registered Rep.’s latest research

Social media is gaining momentum with financial advisors, new research by Registered Rep. and shows. Separate surveys of more than 1,400 Rep. readers in September 2011 and March 2012 showed that the use of social media for business purposes grew in every advisor channel within the six-month period by up to 12 percentage points. (See chart below.)

The brisk pace at which advisors are exploring the new media comes as no surprise to Amy McIlwain, president of Financial Social Media in Denver, Colo., which consults with financial professionals on best practices. McIlwain was driving to a program in Texas recently when she spied a tractor-trailer bearing the message, “Follow us on Facebook and Twitter.”

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Looking for new clients

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How to sell the way people want to buy

selling-resize-380x300Xerox research has shown that the average sale includes three rejections and objections. Most salespeople will stop asking for business after the first objection. They also stop closing when they feel they are being pushy, not when the prospect feels pressed.

The surprising truth is that salespeople stop pushing long before the prospect feels pressed. Top producers, on the other hand, read the prospect constantly and sell the way people want to buy, not the way the salesperson wants to sell.

Here are three signals people use to let you know when you are closing too hard:

  1. When people are feeling pushed, they will rub their forehead back and forth.
  2. When prospect feel pressed, they will break eye contact for more than a couple of seconds.
  3. When people feel stressed, they will blink their eyes rapidly, more than 40 times per minute. FBI research has shown when people lie, they feel stress. When we feel stress, we most readily show it in our eye contact and eye movement.

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FINRA warns about misleading investors in non-traded REIT sales

Wall St

By Suzanne Barlyn

(Reuters) – The Financial Industry Regulatory Authority is cautioning brokerage firms about the way they market some real estate investment trusts after a review by the Wall Street watchdog revealed problems, according to a regulatory notice.

Some brokerages are giving investors information about non-traded REITs, which invest in commercial real estate, that include inaccurate or misleading statements about the potential benefits of investing in such programs, FINRA said in a notice posted on its website late Thursday.

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