BSMG Blog: Protecting the Future of Families and Businesses

How Much Is Your Time Worth


From the moment we all first received payment for work, we have, either consciously or subconsciously, put a dollar value on our time.

When I was 10 years old, with no earthly expenses, responsibilities, or any other place to be, $10 to mow the lawn at my parents’ house felt like a dream. If it took me an hour to do it, at $10/hour I felt like I was winning big. My expenses were zero, and I was therefore making infinity times my monthly expenses. I had nowhere else to be and no other method of earning, so my opportunity cost was also zero. Every time the lawn would get barely long enough to cut, I’d be asking to do it again, in what I felt like was a chance to cash the same paycheck.

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When will this Bull Market end?

Anyone seen Doc Brown’s Delorean Around?

When will this Bull Market end? Short of grabbing a ride in Doc’s time machine, there’s no way to know…but it’s a hot topic right now. Almost every day there seems to be an article prognosticating that “The End is near for the Economic Boom” (Fortune July 19, 2018) or “Here’s why the Dow will hit 40,000 by 2025” (CNBC July 10, 2018).  There are convincing points on both sides for how long our “Bull” will last this time around. Buzzwords abound as well: Ultra-low unemployment, a looming trade war with China, the threat of inflation, persistently low interest rates, another bubble? Here's a question to consider. 

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Universal Life Policy With Indemnity LTC Rider Owned By An ILIT

The use of an indemnity Long Term Care (LTC) rider is crucial to keep the life insurance death benefit estate tax free. That’s because any rider benefits will be paid only to the Irrevocable Life Insurance Trust (ILIT) as policy owner, and NOT used to pay extended care costs directly to the extended care provider. Since LTC benefit claims are paid only to the ILIT, this indemnity style LTC rider does NOT create an incident of ownership in the UL policy.

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Are Your Clients Wondering About Hybrid Long Term Care Solutions? Part 2

Last week, I talked about hybrid LTC solutions and gave you an in-depth breakdown on what these solutions are and how they are becoming increasingly popular. Today, I'll take it a step further by sharing a comparison of some of the most popular hybrid LTC options.

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4 Ways to Talk About Long-Term Care

Do you have clients with no plan for long-term care, or a reluctance to plan for the unexpected?

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Are Your Clients Wondering About Hybrid Long Term Care Solutions? Part 1

In 2017, as in-force rate increases become the norm and more and more carriers are exiting the traditional/standalone Long Term Care (LTC) space, we continue to see the trend of clients migrating from traditional LTCi to hybrid solutions.

With this recent shift, I thought it would be helpful to share an in-depth breakdown of what these solutions are. My hope is to help remove some of the barriers you may experience when having the important LTC conversation with your clients. 

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Linked Benefit Products Offer Great Section 1035 Exchange Options

IRC Section 1035 provides that exchanges into life insurance or annuity contracts with Long Term Care (LTC) riders will be income tax free because these riders are treated as  LTC contracts under IRC Section 7702B(e). These Section 1035 tax free exchange provisions positively impact so-called linked benefit life insurance-LTC products and linked benefit annuity-LTC products.

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Is retirement planning the biggest part of your job?

Have you, like other advisors, experienced the shift in job responsibilities and title from financial planner to retirement income planner? In today's society, a financial planner is synonymous with the retirement planning process. What has caused the shift in responsibilities? Many say it's not a surprising trend seeing as baby boomers are the largest generation to enter retirement years.

A recent study by the Urban Institute reported the baby boomer generation is changing the retirement game due to better health care, longer life expectancy and more financial responsibilities. The study said that men who are 65 years old are projected to live six years longer than those who turned 65 in 1970.  This generation is also working longer than previous generations. Partly due to better health, but also to afford the increased costs of living. Some adults may even benefit from more Social Security by working longer. Overall they are working longer to be able to afford their future.

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Why is the long term care conversation so important to have with Mom and the women in your life? We're sure you already know that the life expectancy of women is higher than that of men, but did you know the difference is an average of 5 years. Also, women have higher rates of disability and chronic health problems. American Association for Long Term Care Insurance reports that women represent more than two-thirds of Americans age 85 or older, and more than 70 percent of nursing home residents are women! 

The long term care conversation is gaining more and more steam. The opportunity and responsibility is now for you and your clients to have the conversation with Mom. Ask her about her health and finances to get a better understanding of what she may need later in life. There are long term care and critical illness riders to help with these costly expenses.  You and your clients can start the planning today to better protect for tomorrow.  

Share these statistics with your clients. Download the infographic below and share with your clients they to begin the conversation with their moms. 

 Learn More: Mind the Gap: Life Insurance to Last Beyond 100

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Mind the Gap: Life Insurance to Last Beyond 100

Permanent life insurance is designed to be in force for the policy holders lifetime to provide for a family and their assets. What happens when the policy owner outlives the maturity date on their policy? Things aren't like they used to be, people are living longer and life expectancies are increasing from what they were fifteen to twenty years ago.  

The World Health Organization projects the global number of centenarians to increase tenfold between 2010 and 2050.  While most life policies written today protect people until the age 121, LIMRA's data reports that nearly 6 in 10 Americans have life insurance that was purchased over 15 years ago. The problem here is that policies written before 2004 protected those insured only to an average age of 95 or 100. There is a big gap between age 95 and 121!

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