Advisor Today - November/December 2015 - (Page 15)

new products TERM LIFE INSURANCE By Christine Cusatis New Product Provides Incentive for Cigarette Smokers to Quit S entry Life Insurance Company and the National Association of Insurance Marketers (NAIM) have announced a joint marketing agreement to offer Commit to Quit, a new term life insurance product designed specifically for cigarette smokers who want to live smoke-free. "Commit to Quit's premiums are lower than those of most policies for tobacco users, but that's only part of what makes it different," says Steve Knez, senior director of individual life and annuities at Sentry Insurance. "It is structured to provide real incentives to quit smoking." The premiums of traditional smokers' policies are typically more than twice those of non-smoker premiums. Commit to Quit offers level premiums that can be 20 percent or more below premiums offered by other life policies rated for tobacco use. Commit to Quit achieves these lower premiums by reducing the death benefit in latter years if the insured continues to smoke. However, if the insured quits tobacco entirely, no benefit decrease occurs. "This incentive can be the push a smoker who wants to quit needs," says Knez. The policy is also convertible to permanent life insurance without a medical exam. The agreement between Sentry and NAIM puts Commit to Quit in the spotlight. "This cooperative effort combines Sentry's insurance expertise and financial strength with NAIM's national network of elite insurance agents," says Knez. Sentry will manage administration and claims. "Family life insurance coverage with smoker premium rates is very expensive, and this often leaves the family underinsured or uninsured due to the very high premiums," says Rick Stolz, NAIM chairman of the board and president of Diversified Insurance Brokers, Inc. of Norcross, Ga. "This innovative product, backed by an insurance carrier with an A+ rating, is designed to help insure smokers." For more information, visit Deferred Income Annuity Helps Clients Retire with Confidence M etLife's new Guaranteed Income BuilderSM deferred income annuity helps address a top concern of today's retirees: running out of money in retirement. Now available as a qualifying longevity annuity contract (QLAC) for individual clients, the product can help clients build a "personal" pension and add certainty to their retirement by providing guaranteed income for life. "As part of a holistic financial plan, clients can use the guaranteed stream of lifetime income that the product provides to supplement other income sources and cover everyday expenses throughout retirement," says Elizabeth Forget, executive vice president of MetLife Retail Retirement and Wealth Solutions. "Knowing that their baseline needs will always be taken care of throughout retirement can, in turn, give clients the confidence to invest their other assets more aggressively." Until recently, individuals who used qualified IRA or qualified defined contribution (DC) retirement plan assets to purchase a deferred income annuity could not defer payments beyond age 70½ without taking RMDs from their IRA. However, in July 2014, the U.S. Treasury issued final regulations on QLACs that allowed individuals to do this for the first time. When a client purchases Guaranteed Income Builder as a QLAC, the portion of their IRA balance that they used to buy it is excluded from the funds used ANNUITIES to calculate the RMDs they are required to take beginning at age 70½. Clients can then begin income payments at a chosen start date, which can be as late as age 85. By allowing clients to defer a portion of their IRA RMDs until their chosen start date, Guaranteed Income Builder gives them a significant level of flexibility to manage both their assets and tax obligations. The product provides advisors with a new tool-only recently available to them in the wake of the Treasury decision-that further enhances their ability to build strong, holistic financial plans for their clients. Visit for more information. November/December 2015 | ADVISOR TODAY 15

Table of Contents for the Digital Edition of Advisor Today - November/December 2015

From the Editor
New Products
In Step with a Winner
Finding Success in the Chinese-American Market
Dealing with Client Confidentiality
Hashtag Your Way to Social Media Relevance
Starting the LTCI Conversation
From Term to Perm
Protecting the Downside with Allocation Adjustment
Jules Gaudreau: A NAIFA Success Story
Helping Clients Cope with Market Volatility
NAIFA Government Relations
Working with Single Women
Financial Planning FAQs of Small-Business Owners
Three Retirement Conversations to Have with Clients Today
The Advent of Robo-Advisors
Moving into the Retirement Space with 401(k) and 403(b) Plans
Moving the Sales Process Forward
Cultivating the African American Market
The Lighter Side of LIfe
Advertiser Index
Back Page

Advisor Today - November/December 2015