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A Powerful Sales Tool: The Life Insurance Capacity Calculator

A Powerful Sales Tool: The Life Insurance Capacity Calculator. Disclosures.

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A Powerful Sales Tool: The Life Insurance Capacity Calculator

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  1. A Powerful Sales Tool:The Life Insurance Capacity Calculator

  2. Disclosures Neither ING nor its affiliated companies or its representatives give tax or legal advice. The strategies suggested may not be suitable for everyone and you should consult with your own tax advisor and legal counsel before implementing any of the strategies suggested here. These materials are not intended to be used to avoid tax penalties, and were prepared to support the promotion or marketing of the matter addressed in this document. The taxpayer should seek advice from an independent tax advisor. Life insurance products are issued by ReliaStar Life Insurance Company (Minneapolis, MN), ReliaStar Life Insurance Company of New York (Woodbury, NY) and Security Life of Denver Insurance Company (Denver, CO). Variable universal life insurance products are distributed by ING America Equities, Inc. Within the state of New York, only ReliaStar Life Insurance Company of New York is admitted and its products issued. All are members of the ING family of companies. All guarantees are based on the financial strength and claims paying ability of the issuing insurance company who is solely responsible for all obligations under its policies.

  3. The Life Insurance Capacity (LIC) Calculator is a valuable planning tool! ING Life Companies was the first to develop it!

  4. It’s a tool in ING Presents designed to: Help Increase Life Insurance Sales & Reduce Financial Underwriting Problems

  5. How Can It Increase Sales? • Many people take a “Minimalist” approach to life insurance • Consider life insurance an “expense” • Elect minimal coverage and pay minimal premium • The LIC Calculator provides a different perspective

  6. The LIC Calculator Seeks to Change the Life Insurance Conversation • Life insurance is an asset, not an expense; it can be just as valuable as financial assets and should be carefully managed • Potentially delivers thousands of dollars of death benefits income tax free* • The LIC Calculator looks at life insurance protection from the insurance company’s perspective • It offers a five step process for managing Insurability • * Life Insurance death benefits are generally income tax free under IRC Section 101

  7. What Does the LIC Calculator Do? • Uses ING Life Companies’ Underwriting Guidelines to Estimate: • Life Insurance Capacity (total insurability) • Insurability Reserve (Capacity not currently in force)

  8. What Does the LIC Calculator Do? • The LIC Calculator Only Considers Financial Information • It’s Not an Offer of Coverage • An Applicant Must Still Provide Proof of Good Health and Verify Financial Information If Requested Before a Policy Can Be Issued

  9. How Does the LIC Calculator Work? • Estimates total coverage available by applying ING Life Companies’ Underwriting Guidelines to two categories of needs: • Personal Insurance Needs • Business Insurance Needs

  10. How Does the LIC Calculator Work? • Personal Insurance Needs • Earned Income • Estate Liquidity • Charitable Giving

  11. How Does the LIC Calculator Work? • Business Insurance Needs* • Key Executive Coverage • Business Succession/Buy-Sell • Business Debt Repayment (5 year minimum) • *unused coverage available for one of these uses can’t be carried over into a different area

  12. The LIC Calculator In Action; The Robert Brown Case Age 50--$100,000 annual salary--$1,500,000 net worth--$30,000 average annual charitable gift over last three years--$500,000 in force Business Owner--$100,000 annual salary, $500,000 value of business interest and long term debt (over 5 years) is $125,000--$500,000 in force

  13. Where Do You Find the LIC Calculator?

  14. Where Do You Find the LIC Calculator?

  15. The LIC Calculator Input Screen

  16. The LIC Calculator Report

  17. What About Brown’s Business? • Will That Change His Insurability Reserve?

  18. The Input Screen

  19. The Business Input Screen

  20. The LIC Combined Report

  21. The Business Report Section

  22. Stage 1 – Sell the LIC Report • “Would you find it interesting to see how a life insurance company looks at your insurability?”

  23. Stage 2 – Selling from the LIC Report • “Does it make financial sense for you to use some of your insurability to provide more protection for your family/business?”

  24. Stage 3 – Selling from the LIC Report • “Is there a reason you wouldn’t want to use some of your Insurability Reserve?”

  25. Often the Problem is the Premium • You have the option of explaining alternative ways to pay premiums

  26. Discussing Premium Payment Strategies • Policy / Trust Owned Life Insurance (TOLI) Review • Executive Benefits • Purchase coverage inside a qualified retirement plan • Premium Financing (for appropriate clients)

  27. Consumer Theme—The Three “Rights” • The Right Amount of Coverage, at • The Right Time, for • The Right Cost

  28. Life Insurance Capacity (LIC) Calculator Available Sales Material Producer Guide #155534 Consumer Flyer #155389 Consumer Fact Finder #155421 Consumer Postcard #155390 Producer Postcard #155391 Available for Personalization on the Life PromoCenter

  29. The Producer Guide

  30. The Consumer Flyer

  31. The Consumer Fact Finder

  32. How to Introduce the LIC Calculator: • “Have You Had a Chance to See ING Life Companies’ Calculator?” • “It’s Really Neat; You’ve Probably Never Seen Anything Like It Before; • If You’ve Got Two Minutes, I’ll Show You How It Works.”

  33. Reducing Underwriting Problems • ING Life Companies Underwriting helped build the LIC Calculator • Agent can see how ING Life Companies’ Underwriting Guidelines are applied to this prospect. • Agent can attach the LIC Report to the cover letter to justify the amount of coverage on application.

  34. Reducing Underwriting Problems • Agent can run the report for him/herself; doesn’t have to show it to the prospect • Agent can see in advance if there’s a potential problem and decide how to handle it

  35. Summary • The LIC Calculator is a simple, powerful sales tool • It offers a new approach to talking about life insurance • People seldom object to owning life insurance; they just object to paying for it • The LIC Calculator moves the discussion past the amount of coverage to premium payment strategies

  36. Summary • Test Drive the LIC Calculator yourself; print off your own personal report • Few people have too much life insurance coverage; how often do beneficiaries complain about receiving too much in death benefits? • The LIC Calculator should help you sell more coverage and reduce financial underwriting problems

  37. Questions?

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