Financial Independence Group serves thousands of financial professionals annually, is partnered with over 25 broker-dealers and RIAs as a preferred insurance planning resource, and acts as a primary product distribution source for the top insurance companies in the nation—all with just over 150 employees.
I’m sure you can only imagine the intense pace of a typical day at our office. When under pressure or feeling overwhelmed, it’s only human nature to rush, cut corners, or act as an order-taker when a request comes in. Not here!
The Financial Independence Group consultant knows what producers expect from us and we pride ourselves on thinking outside the box, continuously learning product and concept knowledge, all while never losing sight of our partner’s top concern: doing what’s best for their client.
Check out this case study that came across my desk and think about how it:
- Illustrates the value and creative thought process an advisor receives when working with us
- Is a case study that you can apply to your practice today
A financial advisor (FA) makes the call to Financial Independence Group to discuss a long-term care (LTC) need his 78-year-old female client has expressed interest in. This is a straightforward request we see daily; the client has some money on the sidelines to fund the LTC need with the desire to see a couple traditional options and an annuity-based (or linked benefit) option.
Right here is where our consultant could have gathered the specifics and taken the order, however she decided to dig deeper into the client’s financial situation and ask questions about other investment vehicles within her portfolio.
Upon the FA walking through what the client had in place, he was stopped after listing a couple variable annuities that were out of surrender with a low-cost basis and having significant gains that you don’t want your clients paying taxes on.
Our consultant suggested leveraging monies in the VAs through a 1035 exchange into OneAmerica’s annuity-care product. With this scenario, the FA moved roughly $100,000 (non-qualified) into the annuity-based LTC product and accomplished much more than just putting LTC coverage in place.
The advisor was able to provide her with $5,025 of monthly LTC benefit for life. If the LTC benefits are never turned on, the client passes on $125,615 in death benefit to her heirs. The client is now saving thousands of dollars in taxes on gains in the VA. And finally, principal protection.
The FA was ecstatic, as was the client. The dollars she had reserved for LTC are now working for her in other investment vehicles recommended by the FA and he’s busy profiling his book of business for similar value-add situations where this concept works in the best interest of this clients.
This could be considered a life-changing financial planning play, all from a consultant asking a few more questions and simply caring. This is the value of partnering with Financial Independence Group.
Do you have clients with older variable annuities out of surrender in which your clients are being taxed on the gains? Do you have clients that could put those funds (or any) to better use and cover an LTC need?
Solutions are a phone call away.
to contact us today.
This article is for educational purposes only, is not an insurance product replacement strategy, and does not constitute legal or tax advice. Customers should consult a legal or tax professional regarding their own unique situation to ensure they are fully aware of any legal or tax implications.