As an insurance professional, you do so much more than simply help allocate funds and resources for ensuring smart financial outcomes for clients. You see your clients through trying times and celebrations alike. You’re integral at helping ease transitions from marriages and deaths to the purchase of homes and cars. You even spend time creating college funds and lasting legacies. You’re always willing to lend an ear, a shoulder to cry on or a hand for support. Often times, you find yourself juggling clients’ priorities and making the most of what you have to work with. When the going gets tough, remember that you can rely on your Creative Life Sales Consultant for assistance.

THE FACTS

• Husband, age 63
• Wife, age 62
• Special needs daughter
• Retirement and legacy needs

THE GOAL

Develop a solution that would provide guaranteed coverage for the couple’s special needs daughter at the time of her parents’ death. At the same time, the couple would have to decide how to appropriately allocate resources to prepare for their own retirement.

THE COURSE OF ACTION

The agent sat down with the couple as prospective clients to review the funds put away for their retirement. In the process of comprehensively evaluating their situation, the agent uncovered $200,000 in bonds. When prompted, the couple conveyed that the funds were earmarked for their special needs daughter. Family was a top priority, and the couple had begun saving for their daughter’s future at the time of her birth. They spent their lives caring for her, and wanted to ensure that she would be cared for long after they had passed. However, they were hesitant about keeping the money in the bond market, and feared the $200,000 saved would not be enough to achieve their goal.

The agent recognized that his clients needed not only to protect their daughter’s future but consider how they would provide for their own retirement. The couple needed a solution that would address both priorities simultaneously. The agent considered a joint survivor policy, but realized it wouldn’t provide enough coverage given the husband’s health concerns. He called Creative Life for help in designing a workable plan for meeting these needs.

THE SOLUTION

We determined that by taking $50,000 out of the $200,000 saved and issuing a life insurance policy on the wife only, we could provide a guaranteed death benefit for the clients’ daughter while freeing up the remaining $150,000 to help provide for them in retirement. Based on the agent’s field underwriting, it was assumed the wife would be approved at standard non-tobacco rates. She was currently taking no medication, exercising regularly and eating healthy.

After some consideration, it was decided that Aviva’s Advantage Builder III indexed universal life product would best meet the couple’s needs, given the No-Lapse Guarantee (NLG) benefit. With NLG, the policy would remain in force for the guarantee period even if the cash value dropped to zero, so their daughter’s future would always be secure. As an IUL, the couple could benefit from the upside of the market with additional interest credited to the cash value of their policy, but know the premium would always be protected from market declines. The couple also enjoyed the benefit of the Wellness for Life® Rider, which would provide access to 24-hour wellness information services and offer an opportunity to earn Wellness Rewards and reduce the cost of the insurance.

THE RESULT

For the client: With a unique strategy in place for addressing dual needs, the agent was able to successfully tackle his clients’ top priorities. The client was approved at premier non-tobacco rates, allowing the couple to stretch their assets even further. Given the outcome, they could sleep well at night knowing that no matter what happens in the market, their daughter would be taken care of for many years to come and their retirement needs wouldn’t be sacrificed to do so.

For the agent:

It’s not always easy juggling your clients’ priorities and making sure you can meet their comprehensive needs. When you need an extra hand to balance all of the balls you’re juggling or an added resource for developing an outside-of-the-box solution, give your Life Sales Consultant a call.

FOR AGENT USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 11870 - 2011/8/18 | 18346 236201

Aviva Advantage Builder III IUL [Policy Form 2EDB08], Wellness for Life® Rider [Form 2WFLAJ07-2] and No-Lapse Guarantee Rider [Form 2NLEEA10] are issued by Aviva Life and Annuity Company, West Des Moines, IA. Rider must be applied for at issue; product
features, limitations and availability vary by state. Rider availability may vary by state.

Guarantees provided by life insurance are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. Agents may not give tax, legal, accounting or investment advice. Individuals should consult with a professional specializing in these areas regarding the applicability of this information to his/her situation.