Most life insurance is obsolete............................................

Tuesday, September 4, 2012

Living Benefits

September 2012 Living Edge

LOOKING BACK

: Revisiting the first Living Edge article appearing in May 2010

… and

it is as relevant today as it was nearly 2 ½ years ago.

Most people purchase life insurance to provide a legacy of financial security at the time of their death. But

doesn’t it make sense for the benefits to extend and be available for the difficult times many have to face

while living, but dealing with a chronic, critical or terminal illness? In actuarial jargon the industry calls the

benefit an “Accelerated Death Benefit Rider.” Your client will more likely refer to it as a real world Living

Benefit.

Most of us are in this profession because of a sincere desire to help others in a manner that is both unique

and timely. Living Benefits is one of the reasons why our family of agents is so passionate about what we

do each and every day.

Allow me to explain with an all too common scenario. The insured has purchased a universal life or term

insurance policy from an Alliance representative. Months or years later, a chronic, critical or terminal illness

occurs, and money is needed for any number of reasons such as the necessity for special care or

expensive alternative treatment not covered by their health insurance; or to replace the income of the

insured or the family member who volunteers to stay home as caregiver; or perhaps to just fulfill the

insured’s living wish before the end of life.

In real life, families want to be able to provide for the needs of their grandparents, parents, or children who

became ill while they are living, and not stand by just waiting for the legacy of an insurance death benefit to

be paid. If along with the ageless tax advantages inherent in a life insurance contract, this

living feature was

better known or better explained, more people would buy life insurance for the “living benefits” than just the

death benefit. That is our mission!

The coverage’s proposed by the Alliance Group and the insurance company’s they represent offer living

benefits on virtually all the life products we represent, including most term contracts. Other insurance

carriers may offer it at a charge, often as much as double the premium of the basic policy.

The companies selected by The Alliance Group include the living benefits rider at no additional premium

cost to the insured, with no separate underwriting requirements.

That is what distinguishes the Alliance Group and our representatives from all others and helps build A

Alliance for Life

between our agents and their clients!By RICK DRAZIEN

Friday, August 3, 2012

Long Term Care at an affordable price.

Long-Term Care is a top concern

among adults...

To learn more, contact us today!

That’s because traditional long-term care insurance policies are difficult to qualify for—

especially if you have pre-existing conditions.

Our life insurance with living benefits includes a chronic illness benefit, and even with a

pre-existing condition, you could qualify. Pre-existing conditions which are usually denied

for traditional LTC include:

Walks with a cane

Walks with a walker

Arthritis

Diabetes

Amputation

Anemia

Joint replacement

Ruptured disc

Cataracts

Crohn’s disease

Dizziness/Vertigo

Epilepsy

Fibromyalgia

Osteoporosis

Gallbladder surgery

Pacemaker

Multiple Sclerosis

Kidney stones

Mild Incontinence

Paralysis

Irritable Bowel

Parkinsons

Stroke

–fully recovered

Heart Attack

–fully recovered

Our life insurance with living benefits could provide you with the coverage you need without

being subject to strict long-term care morbidity underwriting. With the Alliance Group you

could have life insurance for life with living benefits included. Plus, if you pass away without

ever needing the living benefits the death benefit will be paid to your beneficiary.

yet only 5-6% own a long-term care insurance policy.

1Long-Term Care

Sunday, July 29, 2012

Small business owners losing their business due to a critical ILLNESS.We can HELP.

That’s because 48% of businesses that fail, fail because of an unforeseen medical problem such as a critical illness.*

Medical issues can not only affect the owners of a business, but key employees as well.

Through our living benefits, you and your key employees can have access to additional protection as well as a wealth of

options that traditional life insurance doesn’t offer when used to fund a buy/sell agreement. Our new type of life insurance

allows you to access your death benefit while living if you experience a terminal, chronic or critical illness—even if you

experience a heart attack, cancer, stroke, ALS, major organ transplant, the inability to perform 2 out of 6 activities of daily

living (toileting, transferring, bathing, eating, etc.) and many other ailments.

losing their business due to a critical illness.

The greatest threat

to a small business owner is...

74985_var_small bus_C 0911

Now, you could have more than traditional “Death Insurance.” You could have a policy that can be used for key

person policies and/or an option to fund buy/sell agreements. Our living benefits are included at no additional premium

cost on Term, Universal Life or Index Universal Life insurance policies.

We offer more than death insurance; we offer life insurance for life.

To learn more, contact us today

*Critical Illness Insurance 101 by Mark Goldstein, 2010

LIFE INSURANCE

FOR LIFE

ACCUMULATED

CASH VALUE

(UL policies only)

DEATH

BENEFIT

CRITICAL

ILLNESS

CHRONIC

ILLNESS

TERMINAL

ILLNESS

Thursday, November 17, 2011

If your business partner or key employee has a heart attack, stroke etc

Buy-Sell Planning

Many business owners think a buy-sell agreement is not

needed until the death of a business owner.

While it is critical to have a plan in place at that time, the

buy-sell is also important when any major life event

changes the relationship of one of the owners to the

business. Such an event could be disability, divorce,

retirement, conflict between owners, or the desire of one

owner to pursue another business opportunity. In each

case, having a buy-sell agreement in place can help to

mitigate conflict and speed up the transition by giving

business owners a road map for handling the event.

There are three Primary ways to fund a Buy-Sell Agreement:

Pay Cash
Requires large sums of liquid assets that may not be
readily available, particularly at the time of an unforeseen
event. May have to liquidate valuable personal or business
assets below market value in order to raise cash quickly.
Borrow
the Money
The loss of an owner or key person may impair the credit
rating of the business and its ability to borrow and put a
strain on the business budget.
Plus interest must be paid. This could be a tremendous hardship.
Purchase a
Insurance
benefit for the purchase of the business interest.
Money is available from the policy cash values or death1
Life Policy
Policy cash values grow tax deferred and death proceeds
are federal income tax-free.
21

Death Insurance or
Life Insurance for Life to fund Buy-Sell Coverage or Key Person
Planning ?
Most life policies should be called “death” insurance. With
the policies we offer through WRL, we can help safeguard
small business owners through life’s unpredictable changes
– we call it Life Insurance for Life!
What Can Happen to Us?
We may become Chronically Ill
Chronic Illness affects many people and can create
additional expenses for business. Some of these
expenses may include:
Nursing Home Cost for a Private Room
For nursing home care, the national monthly average is now
$6,266, which translates into $75,190 annually.
1
Assisted Living Facility
CHRONIC
ILLNESS
For assisted living facilities the national monthly average is now
$3,185, which translates into $38,220 annually.
1
Home Health Aide (Certified)
For Home Heath Aide, the national monthly average is now
$3,623, which translates into $43,472 annually.

What Can Happen to Us?
You may become Terminally or
CRITICAL
Critically Ill
ILLNESS
TERMINAL
STROKE
Every 40 seconds someone suffers a stroke.
1
HEART ATTACK
ILLNESS
Every 26 seconds someone suffers a heart attack.2
45% of heart attack victims are under age 45.
3
Did You Know…
3 out 4 people (75%) over the age of 40 will experience a
critical illness at some point in their future.

What Can Happen to Us?
You may become Terminally or Critically Ill
CANCER
Every 30 seconds a new cancer is diagnosed in the U.S.
1
1 in 2 men and 1 in 3 women will be diagnosed with cancer in their lifetime.
1
Did You Know…
From 1990 to 2008, spending on cancer care soared to more than
$90 Billion from $27 Billion.
2
One in four cancer patients or their families said they used up all or most of their
savings to pay for treatment.
2
One in eight people with advanced cancer turned down recommended care
because of cost.

ABR: Terminal Illness
Terminal illness is determined by a condition resulting
from injury or illness which, as determined by a
physician, has reduced life expectancy to not more
than 12 months (no more than 24 months in TX, GA,
IL, MA, and WA).
This allows the insured to access up to
$500,000) of the policy’s death benefit in the event of a
terminal illness100% (max of

ABR: Chronic Illness
Chronically ill is being unable to perform 2 of 6 activities of daily
living without assistance from another person or being cognitively
impaired.
90 day waiting period
Up to 2% of death benefit accessible per month
Max lifetime benefit is 90% or $500,000 (whichever is less)
The policy must be inforce for 2 years before benefits are available

ABR: Critical Illness
Allows the insured to access his/her death benefit if they are critically ill
Critical Illness includes diagnosis of cancer, heart attack, stroke, ALS, kidney failure, and major
organ transplant
Max lifetime benefit is 90% or $500,000 whichever is less
Benefit is paid out in a lump sum and the amount of money you will be able to receive is
dependant on the severity of the critical illness.
Policy MUST be in force for 30 days prior to claim.

Living Benefits when you need them
most to protect your business!

Key Person insurance can be used to:
Keep lines of credit open
Train another employee for the same specialized skills
Hire new expertise
Assure the completion of ongoing project and initiatives
Provides access to policy cash value through loans and withdrawals, which your
business can use to meet unexpected business expenses.*
While you can never replace your key people, you can protect your business from
experiencing financial loss at their death.
*Policy loans and withdrawals reduce the policy's cash value and death benefit and may result in a taxable event.241Loans and withdrawals will affect the cash value of the policy and could affect the death benefit. Amounts received on withdrawals and

Monday, October 24, 2011