REASONS TO SELL

LIFE INSURANCE.
Client Profile.
Age:
18-75
Status:
Recent graduate, just married, married with children, primary wage

earning years, affluent, nearing retirement, retired
Concern:
Protecting insurability, income protection, estate planning, and
wealth transfer
Situation:
Solution:

Your clients look to you to manage their total portfolios.

Life insurance protects what they cherish most their families.

Benefits for You and Your Clients.

Establishing life insurance programs for your clients and thereby establishing
1. Next
Generation relationships with their families can ensure that you will continue to manage
their portfolios when the client dies.
Risk

2. Exit
Strategy

Life insurance pays large up-front commissions and annual renewal

commissions, increasing the value of your practice, even as you enter a
more passive phase.

3. Another
Touch

With the help of experts (lawyers, accountants, insurance specialists)

you can increase the number of touchpoints with your clients by including
insurance among the instruments you manage for them. The more
touchpoints, the stickier the relationship.

4. Total
Protection

Allocation of assets across a range of classes helps protect your client from
volatility of returns. Your client is an income-producing asset who also needs
protection. Life insurance is the most efficient way to do this.

5. Tax Free

Life insurance death benefits are free from federal income tax (IRC Section
101 (a)) and free from state income taxes.

6. Estate
Planning

For final expenses, college funding, the replacement of lost income and
the completion of retirement plans, life insurance is unmatched protection
against the risk of premature death. Experts (lawyers, accountants,
insurance specialists) can also structure programs using trusts and other
legal vehicles to transfer wealth to a spouse or to future generations most
efficiently using life insurance.

7. Completion Major carriers with direct sales forces are targeting top wealth management
clients, and these companies generally have a complete portfolio of savings
and investment products in addition to life insurance. If you give up the sale
of life insurance to someone else, you run the risk of giving up much more.

8. Equivalent
Tax Yield

When the death benefit is viewed as a return on premiums paid, a fully

guaranteed universal life insurance plan can earn an impressive equivalent
tax yield, generally between 6 and 8 percent at life expectancy. Further, its a
non-correlated asset to traditional investments.

9. Living
Benefits

Legal & General America bundles an Accelerated Death Benefit (for the
terminally ill) with its life insurance policies at no additional cost. Long term
care riders are also an industry benefit.

10. Discovery

Your clients will expect you to know how much life insurance they need.
To do so, you and/or an insurance specialist advisor will, in part, need a
complete inventory of assets as part of a fact-finder. Some of these assets
may be better managed by you, if not already.

This page not valid without disclosure on page 2.

EVERY DAY MATTERS.

BANNER. WILLIAM PENN.

Conversation
Starters
YOUR CLIENTS

PORTFOLIO.

LI Life
Insurance
NEXT STEPS

1.

Review your client files for

potential prospects. Take a
look at the Client Profile and find
those who are a good fit (look
at age, asset types, occupation,
marital status, financial goals etc.)
Review the Situation, Solutions
and Benefits sections of this
document to further gauge who
might benefit from a life insurance
recommendation. You can also use
your annual portfolio reviews to
identify opportunities.

2.

Sure, you can take a full paper

application, but with AppAssist
its just a few clicks from the request
for an interview, to an issued policy
and full commissions. In total, the
process takes roughly one hour of
your clients time and 15 minutes of
the advisors.

3.

Get a term or a UL quote

from your BGA partner,
your website, LGAmerica.com or
MobileSuite. Then complete Legal
& General Americas Request for Life
Insurance Interview (RLI). Its part of
AppAssist - our drop ticket tele-app
program. You can complete the RLI
for your client or ask for the help of
your BGA back office, your point-ofsale partner, and/or internal office
support.

4.

The final step is managing

the clients expectations.
Prepare your client for the 25-35
minute phone interview during
which the application is completed.
The application can be approved
by voice signature and a paramed
exam will be scheduled. A onepage What to Expect from Your Life
Insurance Interview makes it easy to
explain the typically 30-day process.
Legal & General America will fully
underwrite the application and
eDeliver the policy to the client. It's
always good to touch base once the
policy is issued and to communicate
your availability for questions.

Example:

02

Male Annual Premiums for $1 Million Death Benefit

Class

Preferred Plus
Non-Tobacco

Preferred
Non-Tobacco

Standard Plus
Non- Tobacco

Age

OPTerm 20

OPTerm 30

35

$490

$870

45

$1,200

$2,020

55

$2,860

$5,750

65

$9,200

N/A

75

N/A

N/A

35

$620

$1,020

45

$1,430

$2,470

55

$3,370

$6,770

65

$11,280

N/A

75

N/A

N/A

35

$790

$1,420

45

$1,910

$3,190

55

$4,290

$8,310

65

$13,780

N/A

75

N/A

N/A

* Assumes premiums paid to age 121 to guarantee death benefit to age 121.

WHY SELL LGA?

Financials.
For overall financial strength, we
are rated A+ (Superior) by A.M.
Best and, because S&P considers
us core to our parent, we inherit
its AA- (Very Strong) rating. Our
COMDEX score of 94 gives us the
triple win.
Our parent, Legal & General
Group, Plc is the 8th largest
insurance company in the world,
as measured by 2012 assets under
management, according to a 2014
study by A.M. Best. L&Gs history is
more than 177 years strong.
We ranked #5 in the U.S. by issued
face amount in 2014.
Benefits.
Accelerated Death Benefit Rider
included with all policies in
approved states.
Underwriting.
More than 78% of cases are placed
in the top 3 underwriting classes.
Rated non-tobacco cases are based
on Standard Plus rates.
Stay-at-home spouses can qualify
for $1 million or more in coverage.
Retention.
Bigger isnt always better. Our
retention limit is $2 million through
Table 4. Our reinsurance is in
excess of retention with a $20
million automatic binding limit
for most ages and underwriting
classes. Other carriers are
managing their reinsurance
using first dollar quota share,
meaning they are only retaining a
percentage of coverage for each
policy. If a carrier is using 90/10
first dollar quota share, it is only
retaining $1 million of a $10 million
dollar case. We will retain $2
million of the same case.

Legal & General America life insurance products are underwritten and issued by Banner Life Insurance Company, Urbana, MD and William Penn Life Insurance
Company of New York, Garden City, NY. Banner products are distributed in 49 states and in DC. William Penn products are available exclusively in New York;
Banner does not solicit business there.
Banner OPTerm policy form # ICC12OPTN and state variations. In New York, William Penn OPTerm policy form # OPTN-NY. Premiums are guaranteed to stay
level for the initial term period and increase annually thereafter. Premiums quoted include $60 annual policy fee. Premiums based on underwriting classes
shown. OPTerm Rates as of 10.10.14.
The Equivalent Tax Yield on a life insurance death benefit is defined as the pre-tax annual interest rate at which investments equal to the annual premium would
be required to earn outside a life insurance policy to accumulate to an amount that is equal to the death benefit proceeds paid upon the death of the insured.
For illustrative purposes only, we have assumed a 35% income tax bracket when determining the Equivalent Tax Yield.
Fifth place ranking among U.S. companies determined by 2014 year end LIMRA report based on survey participants. Rating sources: A.M. Best as of 05.30.14.
Standard & Poors as of 05.27.14.
Two-year contestability and suicide provisions apply. Policy descriptions provided here are not a statement of contract. Please refer to the policy forms for full
disclosure of all benefits and limitations.
Insurance policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. A licensed financial professional can provide
costs and complete details. This piece has been designed to provide general information in regard to the subject matter covered. It should be used with the
understanding that we are not rendering legal, accounting or tax advice. Such services should be provided by the clients own advisors. Accordingly, any
information in this document cannot be used by any taxpayer for purposes of avoiding penalties under the Internal Revenue Code. Securities and Insurance
Products: Not Insured by FDIC or any federal government agency. May lose value. Not a deposit of or guaranteed by any bank or bank affiliate.

For producer use only. Not for public distribution. LAA1879 15-038 (03.11.15)