So your client wants an indexed universal life policy to supplement his retirement income, but he can’t currently afford to fund the policy to the extent that will yield a substantial cash value at retirement. What do you do?
Don’t give up. Even if your client can’t afford a hefty premium now, he can still build a robust cash value on his IUL if he commits to growing his premium payments over time. The best and most painless way to do this to schedule premium increases that correspond with his annual employer review or merit raise. Simply ask your client to commit just a portion of that raise to his retirement fund, using the logic that if he hasn't seen the dollars he won't miss them. He will be amazed at the difference just a slight increase in premium can make in a retirement supplement plan.
Your client agrees that the benefits of an indexed universal life policy for retirement supplement will meet both his income replacement needs while he’s still working and will provide supplemental income during retirement. Assume that the client can only afford $200 per month in premium, here’s what the policy illustration projects he would end up with at retirement:
Now assume the client agrees that each year he'll be able to afford to put an additional $50 per month of his annual raise into the policy until he hits $750 per month in premium in 12 years. The resulting illustration will show the difference:
With an annual premium increase of only $50 per month over a 12 year period, the client can triple his death benefit protection during his working years and double his projected income at retirement. As the agent you can earn over THREE TIMES the compensation! All for the same initial premium.
This is a great opportunity for you to up-sell with your retirement supplement illustrations. Simply show your clients how easy it is to take just a portion of their annual pay raise and commit it to their retirement supplement plan.
Contract with NACOLAH through Senior Market Sales and start selling the industry’s best lineup of universal life products.