Workbook
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PERSONAL LEGACY<br />
WORKBOOK<br />
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OUR PROMISE<br />
Our company represents the coming together of people around a<br />
common set of values, beliefs, and purpose. It’s more than products<br />
and services, or features and benefits. It is about sharing a common<br />
cause – helping our clients achieve peace of mind and financial security<br />
for themselves and their families.<br />
It’s why we do what we do.<br />
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WHY LIVING BENEFITS?<br />
If you have someone who depends on you financially, you need life insurance. Most people<br />
purchase life insurance to provide a legacy of security to their loved ones at the time of their<br />
death. Doesn’t it make sense for the benefits to be available for you if you need them while<br />
you’re still living?<br />
With Living Benefits, you have the power to accelerate your death benefit while you’re still living<br />
if you suffer a heart attack, cancer diagnosis, stroke, or any other critical, chronic, or terminal<br />
illness. This ability can help save your financial life, and helps protect you from the cause of 60%<br />
of all bankruptcies in the U.S. every year – medical bankruptcy following a critical illness.<br />
Shouldn’t you have the option to access your death benefit when you need it most?<br />
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LIVING BENEFITS ARE THE MOST EFFECTIVE<br />
PROTECTION AGAINST MEDICAL BANKRUPTCY.<br />
INCOME<br />
EXPENSES<br />
DEBT<br />
Experiencing a terminal, critical, or chronic illness leads to increased<br />
expenses and decreased income. Once your expenses reach a number<br />
higher than your income, you will begin accumulating debt.<br />
INCOME<br />
ADDITIONAL INCOME FROM<br />
LIVING BENEFITS<br />
EXPENSES<br />
Living Benefits plans offer clients benefits when they need them<br />
most, helping to fill the gaps a health insurance policy doesn’t cover -<br />
especially non-medical expenses, such as mortgage, car, food, etc.
CALCULATING YOUR NEED<br />
DEBTS<br />
INCOME<br />
REPLACEMENT<br />
This is referring to any debts that you might have outside the mortgage (car loan, credit cards<br />
student loans, etc.). If we were going to write you a check to pay off all debts (excluding your<br />
mortgage) how much would that check be for?<br />
After paying off your debt, if we could bring your family a check every month to cover normal<br />
living expenses – how much would that monthly check need to be? And, for how many years?<br />
MORTGAGE<br />
PROTECTION<br />
________________ MONTHLY AMOUNT x 12 x ________________ YEARS =<br />
What is your current balance that you owe the bank for your mortgage?<br />
TOTAL<br />
EDUCATION<br />
What do you feel would be an adequate amount to set aside for your children’s education<br />
$50,000 $100,000)? What is the approximate amount that you have established in college savings?<br />
FINAL<br />
EXPENSES<br />
____________ ADEQUATE EDUCATION AMT. – ____________ AMOUNT SAVED =<br />
TOTAL<br />
On average, we allocate around $10,000–15,000 to cover final expenses. Does that seem reasonable?
SUMMARY RESULTS<br />
DEBTS<br />
INCOME (________________/MO X 12 X ________________ YEARS)<br />
MORTGAGE<br />
EDUCATION<br />
EXPENSES<br />
TOTAL LIFE INSURANCE NEED=<br />
$________________<br />
$________________<br />
$________________<br />
$________________<br />
$________________<br />
$________________<br />
TOTAL NEED=<br />
SUBTRACT EXISTING LIFE INSURANCE<br />
SUBTRACT EXISTING RETIREMENT SAVINGS (INCLUDING 401K, IRA, ETC.)<br />
($________________ )<br />
($________________)<br />
($________________ )<br />
NET LIFE INSURANCE NEEDED:<br />
$________________<br />
TOTAL<br />
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FINDING THE BEST FIT<br />
TERM INSURANCE<br />
Term insurance is temporary coverage, and provides a level premium and death benefit<br />
protection for a stated period of time, such as 10, 20, or 30 years. Term coverage is the<br />
cheapest way to provide temporary protection for your family, and is a popular choice<br />
for that reason. However, it is important to note that once that term coverage period<br />
ends, the coverage goes away. In many cases, this is the most sensible way to cover an<br />
individual’s life for a specified period of time (such as their earning years, their mortgage<br />
length, or the period of time that they’ll have children living with them and depending<br />
on them financially). If a person is looking for coverage that will last forever, there are<br />
permanent options available.<br />
PERMANENT INSURANCE<br />
Permanent insurance typically provides both a death benefit and cash value accumulation.<br />
There are different types of permanent insurance, including whole life, universal life, and<br />
indexed universal life. The initial premium for permanent insurance is higher than that of a<br />
term insurance policy with a comparable death benefit. This expense is justified by the fact<br />
that, if kept in force, the policy will eventually end in a death benefit payment to the insured’s<br />
beneficiaries. Permanent insurance also involves the buildup of cash value within the policy,<br />
which can be accessed at any point during the time of coverage. This can provide excellent<br />
tax-advantaged savings strategies, and even help to create a tax-free retirement.<br />
Many clients choose to utilize a combination of both term and permanent protection<br />
to fit their needs. Let us help you determine the best coverage to meet your goals.<br />
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NEXT STEPS<br />
1. Your agent will help you complete an application and submit it to the insurance company.<br />
2. If a paramedical exam is required, your agent will work with the paramedical company to get it<br />
scheduled and completed as soon as possible.<br />
3. The insurance company will then underwrite your case using the information from the application<br />
and paramedical exam, as well as prescription history, driving history, and medical background.<br />
4. Your agent will keep you updated throughout the underwriting process and let you know if anything<br />
further is required.<br />
5. Once the insurance company has reached a final underwriting decision and determined you health<br />
rating your agent will work with you to lock in the coverage and price that best fits you.<br />
6. The policy will be issued and your agent will deliver an official copy of your policy to you.<br />
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PERSONAL NOTES
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ALLIANCE<br />
GROUP<br />
LEE DUNCAN<br />
EVP & CHIEF MARKETING OFFICER<br />
1424 North Brown Rd<br />
Lawrenceville, GA<br />
o 678.969.9000<br />
m 678.910.0551<br />
LDuncan@AnAllianceForLife.com<br />
www.AnAllianceForLife.com<br />
LET’S KEEP IN TOUCH