A (ONE Idea) Year in Review
As 2023 comes to an end, we begin to reflect on the year and find that reviewing our ONE Ideas helps us evaluate the last 365 days. Our ONE Ideas – an important part of our communication with our AgencyONE 100 Advisors – help to convey what is happening in the industry and what is on the mind of our Advisors and their clients. 2023 was an eventful year and presented interesting advanced planning concepts, case design scenarios, and underwriting case studies. We are pleased to provide this annual review and hope that it offers you some insight, answers, and/or ideas for your existing or future cases. Any of the following ONE Ideas may be customized for the business and/or clients of our AgencyONE 100 advisors.
This ONE Idea will be our final publication of 2023 as we look forward to next year and the growth and opportunity that 2024 holds.
Business Planning / Sales Ideas
A Look Back & A Look Ahead – Feb. 22
In this article, Gonzalo Garcia, CLU reflected on the industry in 2022 and what he expected to see in 2023. He discussed his concerns in both the carrier/manufacturer and distribution sides of the business and what that could mean for our industry moving forward. Interest rates continued to affect carrier product line-ups and the direction many of their businesses have taken. Changes in distribution geared up and many M&As and consolidations happened (including ours).
Sunrise or Sunset? – Apr. 14
This ONE Idea focuses on how taking advantage of trusts and funding them with properly designed Life Insurance can assist with estate planning for your high-net-worth clients and minimize taxes given the potential sunset of the TCJA.
Got FOMO? What You Missed at the 2023 Annual Advisor Conference – May 12
This ONE Idea provided a review of the Annual Conference held at the Dupont Circle Hotel in Washington, DC from April 30 to May 2, with a bonus session on May 3 which focused on working collaboratively and how to get more referrals from Centers of Influence (COI). The annual meeting welcomed existing and new advisors to our largest Annual Conference to date! Attendees heard from leading speakers and industry experts discussing topics important to advisors, their clients, and their business. At the bonus session – High Performance Collaborative Teams (HPCT) – AgencyONE 100 insurance advisors attended with COIs that they had invited (legal, wealth, estate, accounting) for a collaborative meeting that centered around a detailed and evolving case study. The ultimate goal was to create a financial plan that considered the expertise from each of the planning specialties and was customized to the unique needs of the client. This ONE Idea also provides links to all the speaker meeting presentations that we were authorized to share! Save the Date for our 2024 Annual Advisor Conference on April 28-30 at the Dupont Circle Hotel in Washington, DC. We hope to see you there!
Planning Opportunities & How Collaboration Can Increase Your Sales – June 13
In this article Gonzalo focuses on the opportunities available to advisors who understand where the Gaps in the Financial Service industry exist in the minds of the customer. For example, 82% of customers expect their Financial Advisors to offer Life Insurance Advice while only 12% actually do! Gonzalo goes on to list the areas of demand in the marketplace that are NOT being fully met that offer REAL opportunities to financial advisors. He also discusses the importance of professional collaboration with other Centers of Influence involved in your clients’ financial, wealth, and estate planning. Well-timed and knowledgeable collaboration will provide your clients with a more “well-rounded” financial plan and ultimately help to build your business. Our High Performance Collaborative Teams training focuses on developing and nurturing these relationships with your Centers of Influence to help generate more referrals.
Variable Life Insurance as an Alternative to a 401K – July 25
Gonzalo was inspired to write this ONE Idea as a result of a Motley Fool article he read that discussed Roth IRAs and why investors should consider them. While Roths may be the right solution for some, Gonzalo points out that Roths have limited applications for many and, even if someone DOES qualify, contribution amounts have strict limits. Additionally, Gonzalo notes that the Motley Fool article does not include an IMPORTANT and viable alternative for investors who do NOT qualify for a Roth – a Variable Life Insurance solution. Gonzalo dives into the specifics about how a well-designed Variable Life policy offers the same benefits, possibly better, than a Roth IRA [doesn’t have Modified Adjusted Gross Income (MAGI) or contribution limits and offers real tax benefits].
Premium Financed Life Insurance: Trying to Fix the Derailed Train – Sept. 15
This ONE Idea explores Premium Financing and its popularity with our AgencyONE 100 Advisors. Most have considered the planning strategy for their clients at one time or another. While some transactions have resulted in considerable angst for both advisors and clients, these arrangements can still be attractive in the right situation. Inforce premium financed policies SHOULD be reviewed periodically to make sure that the long-term objectives of the policy owner are still being met. Due to changes in the economy, many existing premium-financed policyholders have come up against serious hurdles. If you have a client who has called to discuss a problematic life insurance premium financing transaction, AgencyONE may have a solution.
Pre-Sunset Planning Opportunity: Get Ahead of the Massive Increase – Oct. 13
Gonzalo has been talking about this for quite some time and it is on the mind of many other planning experts as the sunset date approaches. In this ONE Idea, Gonzalo reviews some exemption history, discusses the current predictions, and explores excellent planning options for you and your clients to consider that include life insurance in preparation for the upcoming changes.
When Technology Needs a Human Touch: A Commentary – Nov. 10
Gonzalo’s commentary applauds the firms that are working hard to develop and embrace technology that is changing the dynamics of the life insurance industry. He focuses, however, on the importance and irreplaceability of human interaction and expertise that is required for the many cases that do not fit neatly into a box. A professional human “touch” remains critical to the specialized handling and strategic placement of your cases.
Why the Solo Advisor is a Thing of the Past – Dec. 14
Holistic financial planning is far more extensive than just creating a financial plan and providing investment advice – a concept Gonzalo has been talking about for many years. In this article, Gonzalo discusses how, individually, an advisor can successfully meet many of their clients’ expectations, but to provide a thorough and fully integrated plan for financial wellbeing, it takes a team of professionals to meet the needs of the client and the family.
Case Design & Product Intelligence
New Year, New Options for Term Conversions, Policy Review & Supplemental Perm Coverage – Jan. 18
This ONE Idea summarizes the importance of making policy reviews a part of your planning practice with your clients. They help you nurture client relationships, build trust, and keep you abreast of changes in their lives and financial situation. This ONE Idea discussed carrier product information to use during policy reviews with your clients who have Term policies.
What’s for Sale in 2023 & Product Success Stories – Feb. 27
In this article, Ed Stark, CLU, ChFC, RICP offered a refresher on current product availability and new opportunities that brought success for our AgencyONE 100 Advisors and their clients. Ed outlined the specific products and the steps AgencyONE took to help the advisor achieve the financial planning goals of the client.
Top Tier Case Design – A 1035 Exchange with an Internal Split – Apr. 21
This article by Ed Stark discusses the importance of policy servicing and the opportunities it offers the client and the advisor. It talks about a review that revealed a policy that no longer served the client but presented an opportunity for a unique case design specifically designed for the client.
Presentation Options to Help Close Your Next Case – May 23
In this ONE Idea Ed Stark discusses the resources and platforms AgencyONE uses to provide our advisors with the necessary comparisons for their client’s cases. Our most popular comparison platforms are the iPipeline Term Quote Engine, Winflex, Ensight, and InsMark. These important tools help AgencyONE accommodate case design requests and comparisons and are capable of providing simple or very advanced marketing strategies depending on the client’s financial needs.
Consider Cash Value Life Insurance for Supplemental Income Needs – Sept. 11
This ONE Idea summarizes how cash value life insurance can offer your clients the benefits of tax-free income and provide another income source in addition to those they currently have in place. The article looks at a design that features multiple insurance solutions and includes sample reports and comparisons detailing equity accounts versus insurance accounts. This ONE Idea is a great one to share with your clients who have ample investments and don’t fully recognize the varied benefits of life insurance.
Ways to Add More Value to a Client’s Policy & Your Next Sale – Dec. 7
Adding value to the insurance plans you offer your clients must be a priority if you are to build trust with your clients and set yourself apart from your competitors. In this ONE Idea, Ed discusses options to consider for adding value to your clients’ policies and your business.
Underwriting
Reinsurance Direct Underwriting: Strategic Approach to Challenging Cases – Feb. 7
This ONE Idea from Dennis Bartos, PA explored a powerful underwriting opportunity and our selection as a pilot site for testing a NEW DIRECT UNDERWRITING program. We had success with several of our AgencyONE 100 advisors’ large cases which were granted improved underwriting. We continue to see this as an opportunity to position cases that might otherwise have been unfavorably rated or possibly declined.
PLEASE, Drink the Water or it’s Going to Cost You – Mar. 10
This article discusses the importance that hydration plays in maintaining our body’s health and how it can affect lab results and ultimately underwriting. In this ONE Idea, AgencyONE’s underwriters delve into the impact that exercise can have on an insurance exam. AgencyONE underwriters emphasize the IMPORTANCE of educating your clients. We have one-pagers and videos that can assist in making sure your clients are ready for the insurance exams they may be required to take.
Atrial Fibrillation: Understanding the Treatment Options – July 13
One (1) out of every seven (7) strokes are attributed to undiagnosed and/or untreated atrial fibrillation. Known as AFib, it is the most common kind of heart arrhythmia in the world. In this ONE Idea, underwriters Dennis Bartos and Julie Melendez discuss the definition, causes, and symptoms of atrial fibrillation, along with existing and newer treatments that have recently become available. It also outlines what underwriters look for when evaluating a case that presents with AFib and an actual AgencyONE case study that demonstrates how important preliminary underwriting and advisor involvement are to the successful outcome of a case.
“I Gotta Guy/Gal” What Are Our Options? – Sept. 22
In this ONE Idea, Dennis outlines the options for those clients who have inforce policies that no longer fit their needs or could be improved upon. Some of these policies are no longer performing as originally designed. Some clients have term policies coming to an end and need to be converted to permanent coverage. Some clients have health issues that have improved and may be eligible for a rating reduction, while others may not need coverage any longer and are candidates for life settlement. There are as many options as there are types of clients.
Financial Underwriting: How Much Life Insurance Can I Get? – Oct. 23
While Medical Underwriting is the primary focus in most of the cases at AgencyONE, cases with a focus on Financial Underwriting are increasing. In this ONE Idea, Dennis discusses and defines the criteria that must be considered for financial underwriting.
I Wanna New Drug: Underwriting Weight Loss – Nov. 17
While this ONE Idea humorously refers to a Huey Lewis tune from the 80s, Dennis’ article and the case study address the impact that the new weight loss drugs like Ozempic have had on the health and life insurance underwriting of those prescribed and using these drugs.
Annuities
$2 Trillion Dollars! – Mar. 24
The amount in this title represents the value that is currently held inside deferred annuities. This article by Craig Baumgarter, RICP discusses the opportunities that are available for your clients with existing annuities that may be expensive and variable, indexed with a guaranteed minimum crediting rate, or fixed and not competitive in today’s market.
QLAC: A Strategy to Reduce Your Clients’ Taxes – June 21
This article penned by Craig discusses the important benefits of Qualified Longevity Annuity Contracts (QLACs). This annuity product helps to create a lifetime income for your clients who may be afraid of outliving their money and reduces your clients’ taxes by repositioning funds from highly valued Qualified Accounts with increasing annual Required Minimum Distributions (RMDs).
Are Mortality Credits Missing from Your Client’s Retirement Income Plan? – Oct. 5
Craig explores how to create a retirement income plan for your clients who have relatively conservative risk tolerances. He discusses the time-tested solution of laddering bonds and then considers a more efficient solution including a comparative case study using an Annuity that does not introduce excess risk.
A Solution to Lock in Chronic Illness Coverage on a Budget – Nov. 2
In this article, Craig shows the progression of a case and optionality when the goal is for both death benefit and living benefits coverage BUT the client’s budget is driving the case. The Case Design team and advisor considered initial options which were great choices but turned out to be too expensive for the client who had two children still in college. Ultimately, the client agreed to an excellent and affordable solution that locked in insurability for a future policy conversion tailored to the client’s needs!
We wish you and yours a happy, healthy, and safe holiday season and a New Year full of blessings, possibility, and prosperity!
AgencyONE looks forward to providing more terrific content in 2024.
Please contact our Marketing Department at 301.803.7500 for more information or to discuss a case.
