Jay Scheiner, Principal

ASG Partner Jay Scheiner discusses how an insurer’s past behavior in the marketplace can and should influence you, the advisor, in recommending certain companies while possibly avoiding others.  The flight to quality should be more than just about ratings.

The past year has been notable for several insurance companies going on apology tours in announcing such bad news as:

–          “Sorry… We are increasing your client’s current cost of insurance (COI’s) on Universal Life policies effective on the next policy anniversary.”

–          “Sorry… That cutting edge product (or valuable rider) that you can’t sell enough of… we have decided to eliminate it from our portfolio effective three days from now and any applications not received by then will not be underwritten.”

–          “Sorry… Our new term conversion guidelines state that the only policy your clients can now convert to is a separate conversion only policy” (one that makes a Preferred conversion illustrate like a Table-2).

–          “Sorry… Due to the regulatory environment for term and UL products with secondary guarantees in New York only, we will be suspending sales of these products” (effectively leaving the local marketplace)

–          “Sorry… Although we cannot change contractual guarantees, just give us until next month and we will find another way to mess-with your client or render his/her policy less valuable or less secure.”

The apologies usually begin with an email from the home office, or by one of our associates sharing advanced spy information.  Needless to say, I’ve had several weekends ruined just thinking of the ways many of our partner insurance companies have behaved in recent months. And, while none of these company actions involved changes to contractual rights or obligations, that does not mean some harm did not occur, if only in the form of reduced confidence.

What can we as an agency and you, the advisor, do about this?  I’ll tell you what I’m doing about it:

–          I am not willing to forgive a carrier’s bad behavior and go on with business as usual – even if they have strong financial ratings which are unaffected by the changes.

–          I am now more selective than ever in strongly recommending the companies that have not (yet anyway) engaged in the bad behavior and have treated their policyholders… and producers… and agencies with respect, honesty and some level of transparency.  These companies will receive the bulk of our business.

–          Recommending only those term policies that are convertible to the best permanent policies the company offers – and putting warning labels on those that are not.

–          Stressing, wherever possible, policies with the strong contractual guarantees over those where “trust me” is the underlying actuarial assumption.

The flight to quality is more than just about ratings. You have a choice when choosing an insurance company, a product and an agency for your client’s coverage.  it is your right to factor in an insurer’s behavior as well as subtle policy provisions when recommending a company.  We at ASG will continue to keep you apprised of the important changes that affect your decisions through our blasts, e-news and notices.  We hope to continue to earn your trust and we will stand beside you to navigate this quickly changing landscape.


–          Jay Scheiner, JD, CLU has been a partner at Agent Support Group since 1992




ASG was a Silver Sponsor for the May 4
th New Jersey FPA conference-with over 200 member advisors in attendance. Mark Milbrod and David Tornabene alongside the ASG conference exhibit table.











ASG was proud to be a Gold Sponsor for the May 6th NYC FPA Spring Conference.  Gary Bleetstein and Mark Milbrod from ASG were in attendance as were over 160 FPA members.  Principal Financial was our co-sponsor and gave a presentation on their Business Owner Platform

Get on board this high speed train before you’re left standing at the station

Get on board this high speed train before you’re left standing at the station

Sam Kaufman, Principal-Agent Support Group-NYC
May 2016

There is a new generation of GUL. Yes, you don’t need to get your eyes examined, GUL is back and it’s back stronger and better than ever.   The new GUL products include a new Guaranteed Return of Premium benefit that may be exercised after year 20 that provides a guaranteed option to surrender the policy and receive up to 100% of the premiums paid.

By now, you probably think I am smoking something or have had one too many.  I can assure you that is not the case and urge you to get on this high speed train and get out to your clients as soon as possible.    Last week I met a prospective client that had purchased a GUL policy in 2011 from a AAA carrier.   The policy was a typical GUL having no cash value accumulation in the later years and the client was paying a monthly premium of nearly 15,000.  I showed the client that for 2,000 more a month he could have an option to surrender the policy and receive over 4,000,000 guaranteed in twenty years.    Yes, for 500,000 in cumulative additional premium over 20 years, the client could have a guaranteed option to receive 4,000,000.  The IRR is off the charts.

The new GUL products combined with the Guaranteed Return of Premium feature provide many planning strategies.   The same client had a 10,000,000 policy with a single exit strategy – death.  He was age 65 today.  By splitting the policy into two new GUL with return of premium we were able to offer a midterm exit strategy at age 85 of surrendering one-half for a guaranteed 2,000,000.   That left a remaining policy with a death benefit of 5,000,000 and provided the beneficiaries, the client’s children, with 2,000,000 when the client reached age 85.  The client believed he had longevity as his Father had just passed away recently at age 98 and his Mother was still living.

The new generation of GUL provides many strategies for younger people, that prior GUL products did not address.  Take a 45 year old person and create a guaranteed retirement strategy.  A 4,000 annual premium would provide a male age 45 over a 525,000 death benefit and at age 65 a guaranteed option to surrender the policy for 80,000 or at age 70 for 100,000.  Compare this to a 20 or 25 year level term plan and you will be hard pressed to find a better net after tax IRR.

Use the same strategy for a key person age 45 in an employer owned policy.  Target the deferred benefit.    For example, Mr. Employer would like to provide a valued employee age 45 100,000 at age 65.    What better way than a Guaranteed Refund of Premium option that provides both the keyperson death benefit and the retirement benefit all in one package.

The sales opportunities that await you with this new generation of GUL with the Guaranteed Return of Premium Rider are endless.    Give the design team at ASG a call and get on board this high speed train before you’re left standing at the station.  


by: Mark D. Milbrod, CLU
Principal, Agent Support Group.

In today’s world, we as Insurance & Financial Advisors have a great deal of issues to contend with. We must deal with (if we let it), the negativity that will always surround us. But it is up to us to choose a path that will bring out our great abilities and deliver the products and services that we provide. We are all familiar with the “traditional” types of sales; mortgage protection, income replacement, etc. But there is a market under our noses that is tremendously undeserved, “The Modern Family.”
The old Nuclear Family stereotype revolved around a mother, a father and a few children all living in a single household. This was the norm and/or standard for years. That has definitely changed and with it a whole new approach to how we sell the myriad of products and services that we offer.
For those of you that watch the television show Modern Family, it basically throws us into the new realities of what a family unit can look like in today’s world. This is what the show depicts:
• An older man (Jay) in his mid-60’s married to his second wife (Gloria), who is much younger than Jay.
• Gloria has an adolescent child of her own (Manny).
• Subsequently, Jay & Gloria had a baby of their own (Joe).
• Gloria was originally a Non-US Citizen.
• Oh, by the way, Jay is a fairly wealthy business owner.
• Jay has two grown children (Claire & Mitchell).
• Claire is married to her husband Phil and they have three teenage children (Haley, Alex & Luke)
• Phil is a partner in a Realty Firm and Claire runs the family business with Jay.
• Mitchell is gay and is married to his husband, Cam.
• Mitchell & Cam have an adopted daughter, Lily.
• Mitchell is an attorney and Cam is a stay at home dad.
Things have certainly changed a bit and there has been quite a departure from the “Nuclear Family” of a generation or so ago. Aside from the laughs that the show provides, the seriousness of the planning needed for the Modern Family is not so funny. All or a part of this dynamic exists today with many of the clients or prospective clients we serve. These circumstances come with a unique set of planning solutions, most of which can be provided by you, The Financial Advisor.

Aside from the obvious, which is life insurance to cover Final Expenses, here is an idea of the planning opportunities that come to mind for this Modern Family…


As you can see from the chart above, there are a number of sales opportunities available just for this family. There are many techniques that can be used to plan for The Modern Family, some simple and some that require a little more planning. One example is the use of a QTIP Trust. QTIPs are very popular with second marriages and the dynamics that go along with them. In the world of television, everyone gets along in this scenario, but in real life, this can get quite ugly. By utilizing QTIP Trusts, and other tested planning techniques, you can assist your clients in these situations. In the case of Mitchell & Cam, and other same-sex couples, there are many opportunities available today that didn’t exist before the Supreme Court ruling last year.
The point is, so much has changed. Our culture is evolving and with it, our way of doing business. Whether you are planning for The Modern Family or The Not So Modern Family, at ASG, we are your one stop resource for these and all other sales scenarios. Contact us today, so that we can be of assistance on your next case.

ASG Honored At CAIA Meeting

"ASG Honored at CAIA Meeting"ASG was a Bronze Sponsor at the Annual Chinese American Insurance Association’s 25th Banquet. Sam Kaufman, Gary Bleetstein and Jay Scheiner hosted a table of advisors at the event. The Banquet was held at Terrace on the Park in Queens NY and was attended by over 600 insurance agents, brokers, and carriers.

Jay-at-conference-1ASG Partner Jay Scheiner was invited to present at Prudential’s National Brokerage Sales Conference held at the Conrad Hotel in Manhattan March 20-22nd. Jay’s presentation to over 200 general agents and Prudential executives was on the living benefits of life insurance, including an analysis of chronic illness riders and the differences between chronic illness riders and long term case.
Jay described how clients in target client age group of 53-68 can protect their family’s financial future with the careful implementation of a plan that includes important tax-free access to life insurance proceeds during life once illness occurs. Agent Support Group congratulates Jay on this well received presentation to our peers from across the country.

Mark BW-how-to

Wouldn’t it be great to have the key to  the door you’re trying to open?

For years agents have said that they are in the “business market,” but what does that really mean? Are they taking the right approach? Are they truly in that marketplace?

When approaching a business owner, what are you asking? The same questions they have been approached with 100 times before? “Do you have a plan in place if something were to happen to you or one of your partners?” “Do you have a 401(k) ?” “What are you doing for retirement?” “Do you have a succession plan?”

These questions will typically go in one ear and out the other so quickly. Why? Because business owners know it (you) will cost them money, which is not any business owner’s intent. A different approach and conversation starter should be: “When is the last time you had a proper business valuation?” Business valuations  are the cornerstone of beginning the process toward uncovering the answers to the above and many other questions in a way that is not unwelcome. You are coming in under a consultative role, and during that process you will uncover areas of weakness where business owners are exposed to severe tax consequences. Essentially, you are saving them money in the long run. The true sales opportunities will organically come to the surface.

The reality is that most times businesses don’t have a valuation in place, or they simply have a number in mind that has been derived with no real methodology behind it. Without a proper valuation, business owners open themselves—or should we say their heirs—to a host of planning nightmares.

An undervalued business interest can result in huge tax liabilities and/or business succession and continuation issues. In some cases, through strategic alliances, it is possible to provide an initial business valuation without cost to the business owner. It is important to align yourself with firms that can provide access to these platforms. This will significantly increase your value proposition to your current and prospective client base.

By offering this initial no-fee service, it is hard for a qualified prospect to say no. Once this first level of service is provided, a number is generated that is either:

• Exactly what the client thought their business was worth;

• Less than what they thought; or

• Higher than they thought.

Regardless of the outcome, there is a planning opportunity that awaits you. You now have a road map that will lead you to the planning stages and implementation of products to solve a number of planning issues that will likely be uncovered during the process. Plus, from a financial underwriting standpoint, you’ll know exactly what the client will qualify for before you even get to the application stage.

Some of the opportunities that can be uncovered:

 • Buy/Sell Sales. Often there are partners involved in the business setting. Once determined, the conversation ensues about the implementation or review of a current formal agreement.

 • Key Employee Retention. During the process, key employees are identified, as is the effect that the loss of each can potentially have on the business. Strategies can be implemented to protect the business in a number of ways, through death benefit if that person prematurely passes and/or the design of “golden handcuff” type benefits that can be used for retention of that employee. Perhaps a deferred compensation program or an executive bonus Section 162.

 • Succession Planning. You can uncover the need for succession planning to assure the continuation of that business for the next generation. This is a very important element that comes up often during the process.

 • Estate Equalization. Perhaps there is a family business in which only some of the children are involved. The father of two siblings wanted to make sure that both of the children would inherit equal shares in the family business. The problem was that the son had been working with his father over the last five years and had significantly grown the business, while the daughter wanted nothing to do with it. As you can imagine, this could cause a lot of bad blood in the family. In our example, estate equalization sales allow for a life insurance policy to be purchased on the life of the father so that his daughter would receive what amounted to her equal share of the business without causing friction between the two siblings.

 • Personal Financial/Estate Planning. Often the largest asset that a business owner has is the business. Now that you know what it’s worth you can transition toward the personal needs of the individual, including income continuation, estate planning, retirement planning, etc.

This next section will discuss some techniques on how to best utilize living benefits to assist your business clients. Living benefits such as long term care and chronic illness riders are fairly new to the industry. These riders offer unique solutions in this marketplace. There are various ways they can be applied.

Living Benefits in Business Planning

As indicated previously, buy/sell planning, or lack thereof, can be an area that may be exposed as a weakness. Many advisors focus on funding buy/sell agreements with life insurance and stop there. But what if a business partner is incapacitated due to a serious illness or injury? Believe it or not, this can actually have a greater impact on a business than a premature death. Statistically this is more likely to occur, and it is why most disability income policies are so expensive compared to the premiums on those same partners who buy large amounts of term life insurance to fund a buy/sell agreement.

One of the most interesting product innovations has made itself an attractive business planning tool when dealing in this area. Permanent life insurance plans can now be purchased with long term care riders (LTCRs) or chronic illness riders (CIRs). By utilizing these products the life insurance that is often sold to fund a buy/sell agreement can have an LTCR or CIR attached. If one of the covered partners has a serious health event due to illness or injury, the business can accelerate the death benefits via the provisions of these types of riders. The funds can be utilized in a number of ways, including providing lost revenue to the business while the partner is incapacitated or, in extreme examples, as a “disability buy-out.”

The major point is that these products can make it easy to sustain a business through a major event other than death. In order to receive benefits under these types of plans, the insured party must meet certain criteria. In most cases the trigger is either the inability of that person to perform two of six activities of daily living (ADLs) or the diagnosis of a cognitive impairment. There are typically waiting periods associated with these provisions, but keep in mind that we are protecting against catastrophic loss. Shorter term health events would simply not have as great an impact on a business.

From a sales perspective, keep in mind that LTCRs and CIRs are typically available only on permanent products, not term insurance that is more widely used to fun buy/sell agreements. As the clients understand the full circle of benefits provided, this will have a significant impact on compensation as you migrate to more permanent product sales.

The next type of living benefit to focus on is the use of the cash value within permanent life insurance plans and how they can be utilized for supplemental retirement planning. For years they have provided a unique niche to advisors who understand the market. The power of what these products provide is probably more relevant today than it ever has been. It is often overlooked and/or misunderstood. So let’s take a look at the fundamental benefits provided by these plans.

Supplemental Retirement Planning

For years one of the most attractive benefits to a business owner has been the ability to put as much money away for retirement as possible. Unfortunately for most, they are limited in terms of qualified plan contributions. Cash value life insurance is still one of the best ways to supplement their retirement nest eggs.

Regardless of what plan is used—whole life, current assumption universal life or indexed universal life—they all have something in common: tax deferral and ultimate tax-free withdrawals.

Typically there is no limit on premium contributions other than a budget that is affordable to the client. It is up to you as the advisor to maximize the benefits they will be getting by paying close attention to things like modified endowment contract (MEC) limits so the client can take full advantage of a properly structured plan. Permanent life insurance continues to be one of the best time-tested vehicles for a client’s money. Here’s an example of how a typical permanent plan can work to one’s advantage. For this example, we are showing a whole life product and what it may look like:

As you can see, a $20,000 premium payment is being made every year. An initial death benefit of $838,210 is provided. The guaranteed cash value by year 10 is equal to premiums paid and not only keeps pace as the years go by but also exceeds the sum of the premiums.

Dividends are being earned all the while, and the returns are significant enough when compared to an outside investment assuming a net growth of 4 percent each and every year. All things being equal, we show a tax-free income starting at age 65 of $41,244 payable to age 100, or $56,239 payable to age 85.

Most important, the death benefit that started at $838,210 has grown to more than $1.8 million by age 65. If this client died anytime along the way, the corresponding death benefit would be paid to his beneficiary—that’s the “fast-forward” button that people often overlook. Unlike any other retirement vehicle, the money will be there even if the client is not.

That’s a pretty powerful and compelling approach, but unfortunately it is not widely used by most advisors. Surprisingly, when the question “Why don’t you sell this type of product?” was asked, the most common answer was, “I wasn’t aware it could do all that!”

As you have seen, there are many ways a business valuation can uncover sales opportunities. We have taken a glimpse at some of them. The real question is, “How are you approaching business owners, and are you truly in the business market?”

Asking the typical questions that have been asked over and over again is just not as effective as asking “When was the last time you had a proper business valuation?” If you start off with this approach, not only will you open doors but you will also have the key.

Mark D. Milbrod, CLU

Author’s Bio
CLU, is a principal of Agent Support Group, a brokerage general agency located in Edison, NJ. This fall will mark his 30th anniversary in the insurance industry. Milbrod’s real passion is for the brokerage business, where he assists independent producers by showing them how to open doors, seize sales opportunities and realize new revenue sources. Milbrod sees himself as an insurance producer and knows what it is like to walk in producers’ shoes and what it takes to close a sale. He has been a featured speaker at numerous industry events and is the author of the popular blog “Mark’s Barks.” Milbrod also holds the Chartered Life Underwriter designation from The American College. Founded more than 40 years ago, Agent Support Group, a LifeMark Partner Agency, is a leading multi-company life insurance brokerage agency with operations in New York, New Jersey and North Carolina. They serve as a general agent for many of America’s strongest and most competitive insurance companies, offering a broad spectrum of products to suit many life, annuity, long term care and disability income needs. Milbrod can be reached at Agent Support Group, 343 Thornall Street, Suite 660, Edison, NJ 08837. Telephone: 732-917-6081. Email: mark@asglife.com.

As a Principal of a Multi Carrier Life Brokerage General Agency, our advisors and our carriers rely on us to provide what they have been calling “value added” services in order to maintain relationships, build the relationships and build our franchise at the same time. While this is part of what we do in the normal course of business, it is important to note that the term “value added” is used so often by so many people that it is beginning to lose some of its intended meaning.

Of course much of what we do is day to day servicing for our advisors in order to give them the best service, product knowledge, underwriting and compensation that they have been accustomed to for the many years they have been doing business with ASG. While we continue to do these things, our carriers also want and need us to provide these same services to our advisors so that their and our production and profit goals are met each and every year. What company do you know that does not wish to meet these goals, grow with steady profits and maintain reasonable margins while attaining these goals which can seem lofty at some times ?

I can continue for hours speaking to this topic and especially to the term “value added” but really, in the thick of it all, what does this really mean in terms of maintenance, development and growth in our business. The big questions are those that are the most difficult to talk about and to answer- and for this reason, I continue to question the use of the words “value added”.

At each and every meeting we have with advisors, carriers or vendors, we are still asked “What is your value proposition and what are your Value Added Elements of ASG? This is when I think to myself-“OK – what is your value added features that assist us in our Growth and Agency Building Features of the Business? It is not a secret that the Life Insurance Industry as a whole is in the back of the pack in terms of great technology, excellent internet based policy service to both the end customer and the General Agent, innovation in mobile technology, New Business Processing etc. Mind you, I am not picking on the carriers at all, just speaking to the fact that we as an industry need to change our thought process and begin to move as one force towards the greater good of the use of Best Practices in these areas. In having to deal with State and Federal Insurance Law as well as NAIC, and different regulations from NY and 49 other states, our jobs do not allow us the luxury of being what is still being called Value Added Agencies.

So you are asking- what is his point? What is he talking about? Well here it is and here is the ASG Answer – We are not a Value Added Agency, ASG is an Agency that Adds Value to your relationship with us to build your firm, your revenue, your professionalism and your reputation in our great business.

Here are the areas that we have spent money and resources building our firm for a long term future in this business for both you the advisor and for our relationships with our carriers.

  • We re-invest in our firm and infrastructure each and every
  • We are not a lifestyle agency- we use our profits to provide new and innovative technology and employees.
  • We built an interactive Mobile App and Website so that our advisor can have most ASG features in the palm of their
  • We have a formal on-boarding program for all advisors to educate you on our website, mobile app and business
  • We have the best case managers in the business, as well as a complete design team and LTC/DI and Annuity Department for your
  • We have an onsite Board Certified Medical Director to review your cases and when needed to provide summaries for our
  • We hold two major educational meetings each year with nationally recognized
  • We hold Smaller Sales meetings to educate you on the newest products and sales ideas in the
  • We provide IT and Technical Support for now cost for our advisors who need assistance with their own systems
  • We provide free of cost- point of sales assistance when needed for advisor
  • As a member of LifeMark Partners- we provide a large assortment of carriers and underwriting clout for you, Our Advisors -as we are one of the country’s largest providers of life insurance in the
  • We have an in-house expert in Banking and Premium Financing for your special cases as well as two specialists in the Foreign National
  • We provide Brokerage Services that start with submissions and end with not only commissions but superior post issue policy
  • We provide reasonable, competitive and timely compensation for all
  • Most important- we have provided and will continue to provide you, our advisors, these added values plus more to enhance and assure our relationships stay strong and relevant each and every step we take in this

Thank you for your business and may 2015 be an even better year than 2014.

Gary Bleetstein, Principal

Sam BW-look-out

A storm is brewing and it is about to hit – with great force and intensity – your policyholders that have older current assumption  universal  life  policies.   The magnitude of the destruction will be greater than even that witnessed by Dorothy and Toto and will need more than a wave of the Good Witch of the North’s wand to save.

Got your attention now? Do not ask where you will be able seek protection, as there will be no shelter to be found as this storm ravages policyholders caught without any warning. Even those policyholders and advisors who tried to prevent this devastating event will be caught in its path as it attacks unsuspecting policyholders.

It’s the increases in the cost of insurance – those non-guaranteed COIs that are internally deducted from the account values to cover the net amount at risk and provide the total desired death benefit. Although most advisors and policyholders were led to believe that COIs would be stable and the reason for their indeterminate structure was to benefit the cost structure while reducing reserve costs for the insurer, that myth is about to end.

Many companies are looking at the COIs in their older current assumption blocks of business and determining that these costs should be increased. Given the fact that most current assumption universal life policies are aged, the policyholders are older – with most being over age 65. The increase in the COIs results in their cash value, now being credited at minimum interest rates versus those projected originally, being cannibalized and hence the policy terminating sooner than expected without substantial additional funding.

Why is this happening? The actual interest rates and mortality assumptions have been poorer than those used in creating the COIs originally projected. Replacement has resulted in a significant proportion of healthy policyholders moving to guaranteed universal life, leaving a pool of insureds with adverse mortality. This same thing has been happening with older dividend paying poli- cies as recognized by the bifurcation of the dividends allocated to older policyholders versus new. However, in current assumption universal life policies the result of the increase in the COIs is more devastating.

Companies are notifying policyholders, but often not their advisors. General Agents and advisors are notified via a general announcement, but not told of the specific polices affected and a general idea of what the effect will be going forward. This leaves us with no alternative but to review internal records and request re-projections based upon the current scheduled premium outlay and the outlay now required to keep the policy in force to maturity. The policyholder receiving the notification that the cost of insurance has been increased has no way of interpreting the increase relative to their policy.

As a Brokerage General Agency we are trying to be pro-active, but in many cases we are working with companies that are no longer active and therefore have no relationship. Many blocks of business have been sold to reinsurance companies who serve strictly as administrators and offer minimal policyholder service, making it difficult to identify situations where COIs have been increased. Those companies that have increased COIs have not been proactive in providing policyholders nor advisors sufficient information to make any required changes. This will  all result in some policyholders finding out their policy is about to lapse at a time when it is most needed.

Insurance departments designated to provide policyholder protection are often not providing mandates or instructions that serve policyholders by protecting their ability to maintain their policies. This all leaves us in an untenable predicament in serving our advisors. We strongly suggest you contact companies with which you have policyholders that purchased current assumption universal life policies pre-2000 and request re-projections that will enable your  client/policyholder to make an educated decision on which they can move forward.

When the dust settles and the storm ends will your clients land safely, as did Dorothy and Toto, knowing the protection intended to protect their families and businesses fulfills its objectives?

You can help assure a happy ending to this story by making certain that your clients are informed and make any adjustments needed to keep their policies from falling into the hands of the Wicked Witch.

Sam J. Kaufman, CEO

Author’s Bio

CEO, began his career in the life insurance industry in 1968 after graduating from The University of Miami, and in 1973 founded Agent Support Group (then Agent Support Services), a life insurance brokerage agency. He built ASG into one of the first true multi company agencies in New York. His focus on providing value-added service as well as insisting that ASG become a leader in technology allowed the company to grow to become a powerhouse and one of the largest independent life operations in the Northeast. The pioneer who gave brokers their first computerized sales illustrations (Kaufman was one of the first in New York to even own a computer) has now pioneered the ASG mobile app, allowing life agents the ability to do business anywhere and access the latest information in the palm of their hands. Kaufman has played an important role in product development and marketing and has lectured before the New York chapter of NAIFA and the Society of Financial Service Professionals. He is a member of NAILBA and has won numerous industry and carrier awards, including lifetime achievement recognition. ASG,  a Lifemark Partner Agency, is a leading multi-company life insurance brokerage agency with operations in New York, New Jersey and North Carolina. They serve as a general agent for many of America’s strongest and most competitive insurance companies, offering a broad spectrum of products to suit many life, annuity, long term care and disability income needs. Kaufman can be reached at Agent Support Group, 99 Park Avenue, Suite 1910, New York, NY 10016. Telephone: 212-292-5760. Email: sam@asglife.com.

Jay BW logo-selling-permanent

“If you can’t sell permanent insurance in this low interest environment then you should seriously consider changing your profession!”

Ok – that may be too strong a statement and no one really wants you to resign from your practice, but we often forget how lucky we are to be in an industry with products that are so compelling – offering solid cash values – plus tax-favored accumulation and income-tax-free death benefits!

As just one example, I have attached an illustration showing a $25,000 annual payment into a 10- pay whole life contract to compare it with the yields of some other types of investments. Please note that we can achieve similar results with several other whole life and even over-funded UL policies, especially those stressing high early cash values.

US Treasury yields as of 8/2015: 5-yr 1.69 / 10-yr 2.33 / 20-yr 2.73 / 30-yr 3.03*
*US Dept of the treasury resource center

It would take 30 years for your money to double at the 2.33% rate of the 10-yr treasury bond!**
AAA Municipal Bond yields as of 8/2015: 5-yr 1.32 / 10-yr 2.35 / 20-yr 3.39 / 30-yr N/A

It would take 30 years for your money to double at the 2.35% rate of a 10-yr AAA Muni.**
AA Corporate Bond yields as of 8/2015: 5-yr 2.25 / 10-yr 3.32 / 20-yr 4.10

It would take 21 years for your money to double at the 3.32% rate of a 10-yr AA Corporate Bond.**
**Assuming interest reinvested at the same rate / Taxes not taken into consideration for this comparison

Now let’s see how a 10-pay whole life contract looks with respect to cash accumulations (complete illustration attached):

Alternative #1 – 10-pay Whole Life Insurance
Metlife Promise Select-10 – Contractual 10-pay life / assuming a Male 45 Elite health – Premiums
Rate of return of cash value including dividends
Year 5 – -7.08% / Year 10 2.48% / Year 15 3.98% / Year 20 4.45% / Year 25 4.65%
Your client pays $250,000 over 10-years and his money doubles in just over 20-years at age 65!

Don’t forget the insurance benefit! Year 1 – $612,420 / Year 10 $713,462 / Year 15 $809,876 / Year 20 $918,570 (age 65)!

Conclusion: So pick up the phone today and talk to your ASG brokerage professionals about helping your clients build equity through one of the many high cash value policies ASG offers! ~JS

Jay L. Scheiner, Principal

Author’s Bio
JD, CLU, lives in Long Island, NY. For the past 20 years, he has been a partner at Agent Support Group, a life insurance brokerage agency based in New York City. An avid fan of the outdoors, Scheiner enjoys boating and bicycling – in addition to hiking. Scheiner can be reached by telephone at 516-467-1190 or email at jay@asglife.com.