Good morning Everyone!
I hope you can join us for today’s Agent Talk (11am CST). Be sure to register at the link to get a copy of the Recorded Presentation sent to you.
Today we will deal with a phenomenon that is very common in America: the very conservative client who keeps a large amount of amount in a money market or savings account.
Case Study: 54y/o with $1M
We will continue with our theme of ensuring each client has a Long Term Care Protection Plan -- that goes beyond saying one’s policy has a Chronic Illness Rider. The client needs to have a LTC protection plan that dedicates a specific amount of income for LTC purposes separate and apart from his retirement plan.
Today’s Case Study concerns one of our current cases from California. Our client is 54 years old with $1M in a money market account (left by her deceased husband). Client has a state job that pays her $80k a year with a pension of $60k.
Client wants to get the most income she can from her money without putting her money at market risk and recognizes she needs Long Term Care. Client also wants to leave a legacy for her children.
Planning Approach…
We will approach our planning from three (3) perspectives:
Retirement Income Planning,
Long Term Care Protection Planning, and
Legacy Planning.
Step 1 is to understand what the client’s current plan will generate in terms of Retirement Income, LTC and the legacy she will leave her kids. We will create a Chart on these issues.
Step 2 is to look a Retirement Income Options which do not involve market risk.
Option 1 will be to move $800k from the money market acct to an IUL over 5 years, use $100k for a life plan dedicated for LTC protection and leave $100k in savings.
Option 2 will be to place $400k into an IUL and $400k into a lifetime income annuity, use $100k for a life plan dedicated for LTC protection and leave $100k in savings.
American National is one of the few carriers that offer Living Benefits (i.e., Chronic Illness and Critical Illness) in California. The state of California requires carriers to provide a side by side comparison of a Traditional LTC policy with the Chronic Illness Rider of a life policy. Anico’s compliance comparison Chart is attached on that issue.
We also will look at a Global Atlantic solution for retirement income. I hope you can join us. Be sure to register to have a Recorded Presentation sent to you if you cannot join us. Have a great day!
-Marvin