It seems like, for many of the lucky ones, retirement is either creeping up or it is already here. Where did the time go... right? When younger, we thought we had plenty of time to cement, activate and protect our financial dreams and plans. As they say, life has a funny way of screwing up plans. And if you and your clients are like most, you wish you had some more time to get things where you wanted them to be. Let's take a look at one of the biggest "worry buckets" for today's retirees... retirement income.
I am assuming that you have been reviewing you clients retirement income needs and have separated essential income needs from discretionary ones. Then I am assuming you reviewed their guaranteed income(s) from sources like Social Security and pensions and placed them alongside the essential expenses. This allows you to see if they are in a "negative" position - without enough income or a "positive" position - where there is money left over for the discretionary needs… such as legacy issues, vacations, gifts, donations etc.
Let's also not forget the big health care worry. Your client either has long term care or they don't. That situation won't change. You have also explained the benefits of life policies with accelerated benefits for chronic illness (more on that at a later writing). Ask your clients, "How much do you need and when do you need it?" Then, with an fixed index annuity with an income rider, you can guarantee that cash flow... if they have the funds for the annuity.
Let me repeat that, "... if they have the funds for the annuity." But what if they don't? Is there a way to still fulfill those income needs? Well, yes... maybe for both, but surely for one. That is where John Wayne comes into the picture. Let me explain.
Okay, the male Baby Boomer thinks he is John Wayne. You may remember that many Boomer women left their teaching jobs, nursing jobs and other professions (either forever or for a period of time) to raise the kids. "Daddy Boomer" still thought he was the protector and main bread winner. And you know, it worked out...didn't it?
Then the moms were in charge of every volunteer group in America. America has never seen such a large group of quality, educated people in the volunteer corps. To continue, the male took care of the finances and told his wife that everything was going to be okay. Now, at retirement, "Mr. Boomer" finds out they are a little short. They don't have enough money to fund the shortfall through an annuity. He must protect his spouse and knows that is what John Wayne would do. How can he complete this dream for his spouse? There is only one way: through life insurance and "the miracle of paper and ink.” Let's look…
Pretty simple. They have a $25,000 per year income shortfall if he pre-deceases his wife (loss of the smaller social security check, reduction in annuity pay out and rising health care costs down the road). How much is needed to fund this $25,000 shortfall? I say that he needs $500,000 of coverage.
You may say "WOW" but that's just the facts - $500K at 5% interest payout is $25K per year. If he dies later, life expectancy changes and he won't need that much. Remember, we are funding the entire amount. So he says she can take out 10% and be okay... then he needs half or $250K. Need smaller amounts? Let’s partially fund the dream completion.
Here’s the bottom line: Boomers are buying more life insurance. They are purchasing everything from final expense, to term insurance, to permanent coverage. But you have to probe and ask them if they are interested in “dream completion.”
Need a way to get into that conversation? Give us a call at 1-877-844-0900. The additional income you earn helping others with their dreams, might just be the thing that completes yours as well.
I am assuming that you have been reviewing you clients retirement income needs and have separated essential income needs from discretionary ones. Then I am assuming you reviewed their guaranteed income(s) from sources like Social Security and pensions and placed them alongside the essential expenses. This allows you to see if they are in a "negative" position - without enough income or a "positive" position - where there is money left over for the discretionary needs… such as legacy issues, vacations, gifts, donations etc.
Let's also not forget the big health care worry. Your client either has long term care or they don't. That situation won't change. You have also explained the benefits of life policies with accelerated benefits for chronic illness (more on that at a later writing). Ask your clients, "How much do you need and when do you need it?" Then, with an fixed index annuity with an income rider, you can guarantee that cash flow... if they have the funds for the annuity.
Let me repeat that, "... if they have the funds for the annuity." But what if they don't? Is there a way to still fulfill those income needs? Well, yes... maybe for both, but surely for one. That is where John Wayne comes into the picture. Let me explain.
Okay, the male Baby Boomer thinks he is John Wayne. You may remember that many Boomer women left their teaching jobs, nursing jobs and other professions (either forever or for a period of time) to raise the kids. "Daddy Boomer" still thought he was the protector and main bread winner. And you know, it worked out...didn't it?
Then the moms were in charge of every volunteer group in America. America has never seen such a large group of quality, educated people in the volunteer corps. To continue, the male took care of the finances and told his wife that everything was going to be okay. Now, at retirement, "Mr. Boomer" finds out they are a little short. They don't have enough money to fund the shortfall through an annuity. He must protect his spouse and knows that is what John Wayne would do. How can he complete this dream for his spouse? There is only one way: through life insurance and "the miracle of paper and ink.” Let's look…
Pretty simple. They have a $25,000 per year income shortfall if he pre-deceases his wife (loss of the smaller social security check, reduction in annuity pay out and rising health care costs down the road). How much is needed to fund this $25,000 shortfall? I say that he needs $500,000 of coverage.
You may say "WOW" but that's just the facts - $500K at 5% interest payout is $25K per year. If he dies later, life expectancy changes and he won't need that much. Remember, we are funding the entire amount. So he says she can take out 10% and be okay... then he needs half or $250K. Need smaller amounts? Let’s partially fund the dream completion.
Here’s the bottom line: Boomers are buying more life insurance. They are purchasing everything from final expense, to term insurance, to permanent coverage. But you have to probe and ask them if they are interested in “dream completion.”
Need a way to get into that conversation? Give us a call at 1-877-844-0900. The additional income you earn helping others with their dreams, might just be the thing that completes yours as well.
 | Until next time… good selling! Raymond J. Ohlson, CLU, CRC, LACP President and CEO The Ohlson Group 1-877-844-0900 |
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