A Powerful Sales Tool: The Life Insurance Capacity Calculator

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A Powerful Sales Tool The Life Insurance
Capacity Calculator
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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.
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The Life Insurance Capacity (LIC) Calculator is a
valuable planning tool! ING Life Companies was
the first to develop it!
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Its a tool in ING Presents designed to Help
Increase Life Insurance Sales Reduce Financial
Underwriting Problems
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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

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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 companys
  perspective
• It offers a five step process for managing
  Insurability
• Life Insurance death benefits are generally
  income tax free under IRC Section 101

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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)

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What Does the LIC Calculator Do?

• The LIC Calculator Only Considers Financial
  Information
• Its 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

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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

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How Does the LIC Calculator Work?

• Personal Insurance Needs
• Earned Income
• Estate Liquidity
• Charitable Giving

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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
  cant be carried over into a different area

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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

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Where Do You Find the LIC Calculator?
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Where Do You Find the LIC Calculator?
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The LIC Calculator Input Screen
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The LIC Calculator Report
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What About Browns Business?

• Will That Change His Insurability Reserve?

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The Input Screen
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The Business Input Screen
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The LIC Combined Report
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The Business Report Section
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Stage 1 Sell the LIC Report

• Would you find it interesting to see how a
  life insurance company looks at your
  insurability?

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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?

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Stage 3 Selling from the LIC Report

• Is there a reason you wouldnt want to use
  some of your Insurability Reserve?

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Often the Problem is the Premium

• You have the option of explaining alternative
  ways to pay premiums

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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)

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Consumer ThemeThe Three Rights

• The Right Amount of Coverage, at
• The Right Time, for
• The Right Cost

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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
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The Producer Guide
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The Consumer Flyer
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The Consumer Fact Finder
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How to Introduce the LIC Calculator

• Have You Had a Chance to See ING Life Companies
  Calculator?
• Its Really Neat Youve Probably Never Seen
  Anything Like It Before
• If Youve Got Two Minutes, Ill Show You How It
  Works.

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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.

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Reducing Underwriting Problems

• Agent can run the report for him/herself doesnt
  have to show it to the prospect
• Agent can see in advance if theres a potential
  problem and decide how to handle it

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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

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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

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Questions?