Sales Ideas from AIG American General. Presented by: Michael Brandenburg, CLU, ChFC RVP Midwest Life Insurance AIG Financial Distributors

Transcription

1 Sales Ideas from AIG American General Presented by: Michael Brandenburg, CLU, ChFC RVP Midwest Life Insurance AIG Financial Distributors

2 MEC RESCUE Policies issued by American General Life Insurance Company, member of American International Group, Inc. (AIG) FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION

3 MEC RESCUE 1) Alternative solution for MEC policies. 2) Suggest moving to our GUL 3 or Value+ using AAS 3) Why?? Because although the MEC status remains by adding AAS, the client now has chronic illness benefits on a tax advantaged basis VS no living benefits on the current policy. 4) Potential better guarantee s with GUL3 or more DB with Value+ as well.

4 Secure Lifetime GUL 3 Secure Lifetime GUL 3 delivers guaranteed protection. Policies issued by American General Life Insurance Company ("AGL ) FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION

5 New and Improved Features & Pricing Competitive pricing especially for clients age 55 & up Long-term guarantees to age 105: level pays generally fall within 3-5% of the lowest cost that don t offer the Optionality from AGL 1 Shorter funding pattern improvements: 10-pays reduce 10% on average 1 Chronic illness rider: reductions to Accelerated Access Solution cost Return of Premium (ROP) enhancements 2 ROP opportunities (via the Enhanced Surrender Value rider) are automatically included in the policy 2 Unbundling of Living Benefit Riders 1 Comparison based on competitive rates as of 09/29/ Net of partial withdrawals and outstanding loans.

6 Secure Lifetime GUL 3 Flexibility & Choice Unique Partial Withdrawal Capability Allows You To Access Cash and Preserve Death Benefit Guarantee 1. Not an actual case. Presented for illustrative purposes only. 2. Quote dated 11/17/2015 for the state of Texas. 3. The reduction in specified amount will be subject to the same guidelines and restrictions as outlined in the policy. The resulting remaining death benefit amount must be no less than $50,000.

7 Guaranteed Return of Premium (ROP) Enhanced Surrender Value Rider If your clients needs change or they no longer need coverage, the new Enhanced Surrender Value Rider provides two options for surrendering the policy and recouping paid premiums 50 percent in year 20 or 100 percent in year 25. The Enhanced Surrender Value ( ROP ) is capped at 40% of specified face amount; for example, the benefit under a policy with a $1,000,000 specified amount could never be greater than $400,000.

8 Life Insurance You Don t Have to Die to Use

9 2 Policies Are Better Than 1 Using 2 Policies to Significantly Enhance the Consumer Value Policies issued by American General Life Insurance Company, member of American International Group, Inc. (AIG) FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION

10 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION Secure Lifetime GUL 3 + AG Select-A-Term The New and Improved ROP Play

11 Secure Lifetime GUL 3 + AG Select-A-Term Example George is 55, preferred NT and currently needs $5M of death benefit protection for his family. He would prefer to not make premium payments during his retirement years. George hopes to maintain some death benefit during his retirement years but not necessarily all $5M. If he could access the policy for income shortfalls or financial emergencies that would be an ideal solution. What do you present to George as the best solution? Term? GUL? IUL? Not an actual case, and is a hypothetical representation for illustrative purposes only. Laddered policies?

12 Secure Lifetime GUL 3 + AG Select-A-Term Here is one solution from American General Life that you could present: Note: We paid up the GUL in 20 years or at George s age 75. OR

13 Secure Lifetime GUL 3 + AG Select-A-Term By presenting this solution what did you just accomplish for George? Met his need of $5M of death benefit protection. Reduced the premium outlay by laddering a GUL and a term policy. Allowed George to turn his policy into positive cash flow during his retirement years. With the AAS rider you ve created a pool of money for George to access in the event of chronic illness. If he waited to accelerate the LIS rider he could increase his annual income.

14 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION 2 Asset Protector Policies Two Policies for Double the Guaranteed Income Duration

15 2 Asset Protector Policies Example Jonathan is a 45 year old that desires $1M in death benefit protection. He s uncertain whether he will need the entire $1M of death benefit in perpetuity. He s somewhat risk averse and likes the idea of having a guaranteed income source during retirement. Has some concerns on the potential costs of future care should he become chronically ill. What do you present to Jonathan as the best solution? Term and a SPIA? GUL and a deferred annuity? LTC policy? Not an actual case, and is a hypothetical representation for illustrative purposes only.

16 2 Asset Protector Policies Here are two solutions from American General Life that you could present to Jonathan: Solution #1 Solution #2 Although it costs a little extra, Jonathan likes solution #2 for the flexibility AND the ability to have up to 20 years of guaranteed income.

17 2 AG Asset Protector Policies By presenting this solution what did you just accomplish for Jonathan? 2 Policy Solution 2 $500K Secure Lifetime GUL 3 Asset Protector Premium $12,424 Choose two: X 20 Years $248, $30, $50, $30, $50,000 Provided his desired $1M of death benefit. Yielded a flexible guaranteed income level for up to 20 YEARS! $1M made available for Chronic Illness care should he need it. Provided this flexibility at an additional cost of only about $800 per year.

18 FOR FINANCIAL PROFESSIONAL USE ONLY-NOT FOR PUBLIC DISTRIBUTION 2 AG Secure Survivor GUL II Policies Second-to-Die Presentation with Additional Optionality

19 2 AG Secure Survivor GUL II Policies Example Ernest is 65 and Sandra is 60 and both are standard NT risks. They currently have a $10M insurance need for their personal planning needs. They have some concerns over prior insurance presentations with limited flexibility and options on GUL contracts. However, they don t want to continue waiting to put insurance in force while they re both still healthy. What do you present to Ernest and Sandra as the best solution? Standard survivor GUL? Survivor VUL? Two single life policies? Not an actual case, and is a hypothetical representation for illustrative purposes only.

20 2 AG Secure Survivor GUL II Policies Solution #1 One $10,000,000 policy A standard AG Secure Survivor GUL II would work well. It s guaranteed cash value and 100% ROP in year 15 may provide the flexibility they desire. This would be an all pay of $123,597 for a guarantee to age 105. They could also surrender their policy in the 15 th year and get their entire $1,853,955 of premium back. Solution #2 Two $5,000,000 policies

21 2 AG Secure Survivor GUL II Policies By presenting this solution what did you accomplish for Ernest and Sandra? Provided their desired $10M of death benefit. The flexibility to not only cut their coverage in half but also get all of their premium back on the surrendered policy. Easy way to address future gifting changes when one insured passes. Provided this flexibility at an additional cost of only $137 per year.

22 AIG s Underwriting Updates Continued Throughout 2016 Improvements made in December 2015: Treated blood pressure acceptable for Preferred Plus Blood pressure levels must be stable for the past six months Liberalized build for Preferred Plus and Preferred classes Higher total cholesterol in Preferred Plus class Moving & other driving violations/tickets removed as Preferred criteria from all Preferred classes DUI and reckless driving remain, and will be the only criteria that may disqualify a client from a better Preferred class.

23 Foreign Nationals Did you know? Chinese American buying power is projected to be $1 trillion by AIG has re-calibrated underwriting, products and marketing materials to help with this business. Underwriting Guidelines Foreign National Underwriting Guidelines Chinese and Filipino Underwriting Guidelines Foreign National Marketplace Sales Tools Financial Professional Guide Consumer Guide Producer Training Instruction Guide Producer Training Presentation aig.com/foreignnationals