News from Source Brokerage Inc

Do you have a high net worth person you have been trying to win as a client? Our monthly Sales Tip can tell you how to get their attention. See below for details.

Life Plans Jeff

Since there was no special session in Congress before year-end, the estate tax is headed for repeal under the "sunset" provisions of law.

It also means the introduction of carryover basis rules for those dying in 2010 - that is, in larger estates, heirs would receive inheritance with potential capital gains.

Even though the House passed a permanent extension of current estate tax law, attempts have been blocked in the Senate. There are rumors that a new estate tax bill might be introduced at some time...given 2010 is an election year...but at this point we are in a state of total uncertainty.

Given the Federal and State budget pressures, clients who delay planning due to tax uncertainty, or those who make decisions based on a sense that the estate tax is going away, may be headed for a wreck.

We need to continue to point out the value of life insurance in a well-planned estate:

We have the only last-to-die term plans available in the marketplace. 10, 20 and 30 year level survivorship term with conversion provisions is a great way to lock-in insurability for pennies-on-the-dollar.
Survivor UL can be dialed in for Lifetime guarantees or dialed-down for "x" number of years. We have surivor UL plans with Lincoln, Transamerica, Pru, Genworth, Protective, AXA, Mutual of Omaha, West Coast Life and North American.

Contact Jeff Darnell at ext. 225 for U.L. quotes and impaired risk questions, or Julie Adams at ext. 233 for term quotes. Please also try our online quote request tool.

Annuities

Adam

Deferred Annuities

Many people don't understand the MVA feature available in some annuity products so they shy away from them. Don't do this! Non-MVA products don't have the pricing advantage of those with an MVA. MVA products typically have higher rates.

So, what is an MVA, and what factors affect it?

An MVA only takes affect and is only a factor if the contract is terminated prior to the end of the surrender charge period, or if withdrawals exceed the penalty-free provisions. If the contract is held to duration, it's a non-factor.
An MVA is a mechanism that requires the owner to participate in market risk during the surrender period. An MVA measures the changes in the interest rate environment (Treasury Bills) since the policy issue date:
- If the interest rate environment on new money is the same at time of surrender there is no MVA
- If the interest rate environment on new money is higher at surrender than it was at issue, a negative adjustment is made to the cash surrender value
- If the interest rate environment on new money is lower at surrender than it was at issue, a positive adjustment is made to the cash surrender value, and in these situations a policy holder can sometimes benefit by prematurely surrendering a policy

If a policy does not have an MVA it means an extra hedge of risk-pricing has been been included, and typically results in a lower interest rate.

Annuity rates are higher than CD's. What are other advantages of annuities vs. CD's? The following are some of the today's best multi-year guarantee rates (MYGAs):

3 yr rates as high as 2.50%
5 yr rates as high as 3.65%
7 yr rates as high as 3.95%

Please call for product details and to confirm rates as they can change daily. Please review our Top Picks or use our rate/plan search tool.

Contact Adam Frechette at ext. 230 for answers to all of your annuity questions and sales support. Please also try our online quote request tool.

Disability Income Steve

All resident physicians are now eligible for a $5,000 monthly benefit from Standard Insurance Company. Standard has also announced higher monthly benefits for students and for individuals just starting a practice as veterinarians, nurse practitioners, and dentists.

MetLife will participate up to $30,000 with other individual or group coverage for non-medical occupation classes 4A, 5A, 6A and 6S. For medical occupation classes 5S and 5D, MetLife will now participate up to $25,000 with other individual or group coverage.

Contact Steve Crowe at ext. 222, Ellen Crowe at ext. 223 or Shannon Huddleston at ext. 234 for quotes, tools and sales strategies. Please also try our online quote request tool.

Sales Tip Success

"Attention" is the first step of any sale. You have to get a person's attention before you can create interest, desire, present your convictions and close the deal.

An easy way to get attention is by showing your client how they can get the same quality benefit at a lower cost. Everyone loves to save money.

"Mr. Client, if I can provide you with the same quality term life insurance at a savings of 5% to 40% would you be interested?"

You can do that with West Coast Life's new Income Replacement Term plans...it's a "better mousetrap" for those people who have bought term insurance to replace the lost income should a breadwinner die:

The plans have guaranteed level premiums of 10, 15, 20, 25 and 30 years just like normal, traditional term plans
The death benefit is simply paid out over time instead of a lump sum. Your client can pick a payout period from 5 to 30 years. The longer the payout is stretched, the greater the savings over traditional term plans.
And, Income Replacement Term is a great alternative for people with substandard ratings. The savings of this product can get them back to the cost of a traditional, unrated plan.

Call three people you have been trying to win as a client and tell them you can save them significant cost with a new model they won't see anywhere else. I guarantee you'll create attention and interest! Then, call Jeff or Julie for illustrations and the product brochure.

Thanks for taking the time to review our Newsletter, and Thank You for your business.

Jeff Darnell

Source Brokerage Inc

P O Box 26580

Indianapolis, IN 46226

800.543.7167 ext. 225

800.856-3494 fax