Post on 01-Apr-2015
The Life Insurance Capacity Calculator
A powerful sales tool
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The Voya™ Life Companies and their agents and representatives do not give tax or legal advice. This information is general in nature and not comprehensive, the applicable laws change frequently, and the strategies suggested may not be suitable for everyone. You should seek advice from your tax and legal advisors regarding your individual situation.
These materials are not intended to be used to avoid tax penalties, and were prepared to support the promotion or marketing of the matter addressed in this document. The taxpayer should seek advice from an independent tax advisor.
Life insurance products are issued by ReliaStar Life Insurance Company (Minneapolis, MN), ReliaStar Life Insurance Company of New York (Woodbury, NY) and Security Life of Denver Insurance Company (Denver, CO). Variable universal life insurance products are distributed by Voya America Equities, Inc. Within the state of New York, only ReliaStar Life Insurance Company of New York is admitted and its products issued. All are members of the Voya™ family of companies.
All guarantees are based on the financial strength and claims paying ability of the issuing insurance company who is solely responsible for all obligations under its policies.
Disclosures
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Voya Life Companies was the first to develop it!
The Life Insurance Capacity (LIC) Calculator is a valuable planning tool!
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
It’s a tool in Voya Presents designed to:
Help increase life Insurance sales &reduce financial underwriting problems
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
How can it increase sales?
Many people take a “minimalist” approach to life insurance
Consider life insurance an “expense”
Elect minimal coverage and pay minimal premium
The LIC Calculator provides a different perspective
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The LIC Calculator seeks to changethe life insurance conversation
Life insurance is an asset, not an expense; it can be just as valuable as financial assets and should be carefully managed
Potentially delivers thousands of dollars of death benefits income tax free*
The LIC Calculator looks at life insurance protection from the insurance company’s perspective
It offers a five step process for managing Insurability
* Life Insurance death benefits are generally income tax free under IRC Section 101
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
What does the LIC Calculator do?
Uses Voya Life Companies’ Underwriting Guidelines to estimate:
Life Insurance Capacity (total insurability)
Insurability Reserve (Capacity not currently in force)
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The LIC Calculator only considers financial information
It’s not an offer of coverage
An applicant must still provide proof of good health and verify financial information if requested before a policy can be issued
What does the LIC Calculator do?
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
How does the LIC Calculator work?
Estimates total coverage available by applying Voya Life Companies’ Underwriting Guidelines to two categories of needs:
Personal insurance needs
Business insurance needs
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
How does the LIC Calculator work?
Personal insurance needs
Earned income
Estate liquidity
Charitable giving
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
How does the LIC Calculator work?
Business insurance needs*
Key Executive Coverage
Business Succession/Buy-sell
Business Debt Repayment (5 year minimum)
*Unused coverage available for one of these uses can’t be carried over into a different area
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The LIC Calculator in action:The Robert Brown case
Age 50
$100,000 annual salary
$1,500,000 net worth
$30,000 average annual charitable gift over last three years
$500,000 in force
Business owner
$100,000 annual salary
$500,000 value of business interest and long term debt (over 5 years) is $125,000
$500,000 in force
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Where do you find the LIC Calculator?
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The LIC Calculator input screen
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The LIC Calculator Report
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
What about Brown’s business?
Will that change his Insurability Reserve?
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The input screen
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The business input screen
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The LIC Combined Report
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The Business Report Section
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Stage 1 – Sell the LIC Report
“Would you find it interesting to see how a life insurance company looks at your insurability?”
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Stage 2 – Selling from the LIC Report
“Does it make financial sense for you to use some of your insurability to provide more protection for your family/business?
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Stage 3 – Selling from the LIC Report
“Is there a reason you wouldn’t want to use some of your Insurability Reserve?”
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Often the problem is the premium
You have the option of explaining alternative ways to pay premiums
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Discussing premium payment strategies
Policy / Trust Owned Life Insurance (TOLI) Review
Executive Benefits
Purchase coverage inside a qualified retirement plan
Premium Financing (for appropriate clients)
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Consumer theme—The Three “Rights”
The Right amount of coverage, at
The Right time, for
The Right cost
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Life Insurance Capacity (LIC) Calculator
Available Sales MaterialProducer Guide #155534
Consumer Flyer #155389
Consumer Fact Finder #155421
Consumer Postcard #155390
Producer Postcard #155391
Available for Personalization on the Voya PromoCenter
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The Producer Guide
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The Consumer Flyer
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
The Consumer Fact Finder
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
How to introduce the LIC Calculator
“Have you had a chance to see Voya Life Companies’ Calculator?”
“It’s really neat; you’ve probably never seen anything like it before; if
you’ve got two minutes, I’ll show you how it works.”
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Reducing underwriting problems
Voya Life Companies Underwriting helped build the LIC Calculator
Agent can see how Voya Life Companies’ Underwriting Guidelines are applied to this prospect.
Agent can attach the LIC Report to the cover letter to justify the amount of coverage on application.
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Reducing underwriting problems
Agent can run the report for him/herself; doesn’t have to show it to the prospect.
Agent can see in advance if there’s a potential problem and decide how to handle it.
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Summary
The LIC Calculator is a simple, powerful sales tool.
It offers a new approach to talking about life insurance.
People seldom object to owning life insurance; they just object to paying for it.
The LIC Calculator moves the discussion past the amount of coverage to premium payment strategies.
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Summary
Test drive the LIC Calculator yourself; print off your own personal report.
Few people have too much life insurance coverage; how often do beneficiaries complain about receiving too much in death benefits?
The LIC Calculator should help you sell more coverage and reduce financial underwriting problems.
For agent use only. Not for public distribution. ©2014 Voya Services Company. All rights reserved. CN68525012015
Questions?