The Best Hospital Indemnity Plan to Sell During AEP

The Best Hospital Indemnity Plan to Sell During AEP

The Best Hospital Indemnity Plan to Sell During AEP
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The best hospital indemnity plans to sell during AEP without question would be GTL’s Advantage Plus and the new Advantage Plus Elite. Hospital Indemnity Plans are a critical product in every Medicare agent’s portfolio. Pinnacle offers regular webinars teaching agents how to properly add a Hospital Indemnity Plan to the sale of a Medicare Advantage plan in order to cover the many out-of-pocket expenses their client can incur.

What is a Hospital Indemnity Plan?

Hospital indemnity insurance is a supplemental insurance plan designed to pay for the costs of hospital admission that may not be covered by other insurance. The plan covers clients who are admitted to a hospital or ICU for a covered sickness or injury. Hospital Indemnity Plans or “HIP” can be especially critical for seniors as many seniors especially the DSNP population do not have enough savings to cover unplanned medical bills. These plans pay cash directly to the client regardless of whether they end up incurring the out-of-pocket expense or not. The payments can be used for anything the client deems necessary such as copays, deductibles, or even things such as transportation, food, rent, or utilities.

Why You Should Sell GTL’s Advantage Plus:

  • Easy to use E-app
  • Guaranteed Issue Ages 64 ½ – 65 ½
  • 1, 3, 6, 10 & 21 day benefit periods available
  • $100 to $750 daily hospital confinement benefit
  • 60-day restoration of benefits
  • Hospital observations covered
  • Lump-sum cancer rider
  • Dental/vision rider
  • Additional lump sum hospital rider
  • Ambulance rider
  • Guaranteed renewable for life as long as premiums are paid
  • Skilled nursing rider

Help Your Clients & Get Paid During AEP:

Doing what’s best for your clients should always be your top priority. But it sure is nice when doing what’s best can also benefit you, especially during the busiest time of the year for a Medicare agent. GTL pays one of, if not the highest commission in the industry on their hospital indemnity plans, and the best part…. They pay all throughout AEP!! Reach out to your marketer today to find out more about how to get licensed to sell GTL’s Advantage Plus products.

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Assistant Vice President | Health

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How are Annuities Taxed

How are Annuities Taxed

How are Annuities Taxed
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Annuities are becoming a more prevalent retirement planning vehicle being considered by financial advisers, and insurance professionals alike. One of the considerations to consider is the taxable consequences of the annuity from a planning standpoint. So, how are annuities taxed?
If you purchase an annuity with pre-tax dollars, payments from the annuity are fully taxable income. If you were to buy an annuity with after-tax dollars, you are then required to pay taxes only on the earnings. Annuities will offer tax-deferred growth, which means the taxes on annuities aren’t due until you withdraw, money from the annuity.

One of the main tax advantages of annuities is they allow investments to grow tax-free until the funds are withdrawn. This includes dividends, interest, and capital gains, all of which may be fully reinvested while they remain in the annuity. This allows your investment to grow without being reduced by tax payments. This seemingly simple perk is accompanied by a number of complicated rules about what funds are taxed, how they are taxed, and when they are taxed. Because of the complexity, it’s best to consult a tax professional when purchasing an annuity and before an annuity and before withdrawing funds,

Are Annuities Taxable?

Annuities are tax-deferred. But that doesn’t mean they’re a way to avoid taxes completely. What this means is taxes are not due until you receive income payments from your annuity. Withdrawals and lump-sum distributions from an annuity are taxed as ordinary income. They do not receive the benefit of being taxed as capital gains. How taxes are determined depends on many factors centering on how the annuity was set up.

How Are Annuities Taxed?

When it comes to taxes, the most important piece of information about your annuity is whether it is held in a qualified or non-qualified account.

Qualified Annuity Taxation

If an annuity is funded with money in which no taxes have been paid, then this is a qualified annuity. Typically, these annuities are funded with money from 401(k)’s or other tax-deferred retirement accounts. Such as IRAs.

When you receive payments from a qualified annuity, those payments are fully taxable as income. That’s because you have not paid any taxes on them to date.

But annuities purchased with a Roth IRA or Roth 401(k) are completely tax-free if certain requirements are met.

Example:  Buy an annuity for $100,00 using money from a regular 401(k)———–Get $6,000 in annual payments from the annuity————Report entire amount to the IRS as taxable income in the year in which it was received.

Non-Qualified Annuity taxation

If the contract was purchased with after-tax funds- meaning the money has been reported to the IRS and taxed. This is a non-qualified annuity. Non-qualified annuities only will only pay taxes on the earnings.

The amount of taxes on non-qualified annuities is determined by the exclusion ratio. The exclusion ratio is used to determine what percentage of annuity income payments are taxable and how much is not. The idea is to determine the amount of a withdrawal or payment from an annuity is from the already-taxed principal and how much is considered taxable earnings.

The exclusion ratio involves the principle that was used to purchase the annuity, the amount of time the annuity has existed, and the interest earnings.   The exclusion ratio considers life expectancy.

If an annuitant lives longer than his or her actuarial life expectancy, any annuity payments received after that age are fully taxable.

That’s because the exclusion ratio is calculated to spread principal withdrawals over the annuitant’s life expectancy. Once all the principal has been accounted for, any remaining income payments or withdrawals are considered to be from earnings.

Exclusion Ratio Example

  • Your life expectancy is 10 years at retirement.
  • You have an annuity purchased for $400,000 with after-tax money.
  • Annual payments of $4,000-10% of your original investment is non-taxable.
  • You live longer than 10 years.
  • The money you receive beyond that 10-year-life expectation will be taxed as income.

Annuity Withdrawal Taxation

How and when you withdraw funds from your annuity also affects your tax bill.

In general, if you withdraw money from your annuity before you turn 59.5, you may owe a 10 % penalty on the taxable portion of the withdrawal.

Please reach out to the annuity team at Pinnacle Financial Services with any questions at 800-772-6881 x-6003 or email annuity@pfsinsurance.com.

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Senior Sales Director | Life, Annuity, & LTC

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Best Annuity Rates – Fixed & Fixed Indexed

Best Annuity Rates – Fixed & Fixed Indexed

Best Annuity Rates – Fixed & Fixed Indexed
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Today more than ever, Americans are looking for safety with their savings and retirement assets. Unfortunately, many are unaware of their options outside of a savings account, CD, and/or Money Market. Fixed and Indexed Annuities can be another solution to this problem.  But you might not know how to find the best annuity rates as rates vary carrier by carrier and can change month by month.

At Pinnacle Financial Services, we have Fixed and Fixed Indexed Annuity solutions that can provide a better solution for your clients’ safe money. All Annuities offered through PFS are Fixed. None involve any risk of principle – No Securities License is needed.

Our Annuity products provide clients with safety and protection, knowing that they will never lose money, but can still earn nice interest on their money.  Remember, we saw interest rates and CD rates drop in 2020 with the Coronavirus and its impact on the Fed. And that didn’t stop Americans from plowing hundreds of millions of dollars into CDs in 2021 so far. Why might you ask? Simply put – clients want safety, and don’t know of any other option.

Some of the best-Fixed Annuity (MYGA) Rates currently hover around 3%. Certainly, much better than the .7% you might earn in a CD today. Furthermore, Annuities are tax-deferred, meaning you only pay the tax owed after money is withdrawn. Your CD will require taxes on the interest to be paid annually (so your .7% in your CD is actually less than that after taxes!)

A Fixed Indexed Annuity could potentially provide your client with even better interest than your MYGA. Yet not guaranteed (the principle is guaranteed and many have a small minimum guaranteed interest rate), clients have been able to historically generate some 5%, 6, or even 7% (tax-deferred) returns with indexed annuities in the last 10 years or so. Now that’s much better than your CD!

While an Annuity can be an important piece of a client’s overall financial plan, it may not be right for everyone. Here at PFS, picking the best Annuity for your client is our goal and our team here can help you ensure that you are making the best possible recommendation.

Annuity Quoting Tool – Annuity Ratewatch

Every agent contracted at PFS will have access to www.annuityratewatch.com for free. This software will allow you to quote nearly every fixed and fixed indexed annuity out there. Quote MYGAs, FIAs, and even Lifetime Income rider comparisons. Click here for a tutorial

Need Help Finding New Clients?

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Detailed client presentation tools and reporting geared for converting prospects into clients!

Marketing / Lead Co-op Available!

(Co-ops are on an individual basis and based on production)

Are you new to Annuity Sales?

If you are just getting started with Annuities or are just learning about them, click here for more info. Training is provided on products, fact-finding, selling concepts, etc.

New to Pinnacle?

We would love the opportunity to earn your business! Click here for contracting Info

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Assistant Vice President | Life & Annuity

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Final Expense Underwriting

Final Expense Underwriting

Final Expense Underwriting
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Selling final expense life insurance is a great way to offer your clients affordable protection without the hassle of medical exams.  Final expense underwriting typically consists of just completing a few simple health questions but final expense life insurance can also be a true guarantee issue.

Final Expense Underwriting – A True Non-Medical Life Policy

    Final Expense Life Insurance are whole life policies, with small death benefits ranging from as little as $1,000 to a maximum of around $50,000. These plans are designed for seniors and are typically available for ages 50-85. Insurance companies realize that seniors are going to have some major to minor health issues, so they’ve simplified the underwriting process to just a few yes/no health questions. Client’s will qualify based on their answers to the yes/no health questions. To verify the health answers, the insurance company then performs a MIB & Prescription Check before making an offer. Overall, this process is simple and quick. No medical examination needed, no blood drawn, no doctor’s visits. Underwriting decisions are typically made within 24-48 hours, not weeks like traditionally underwritten life policies.

    Final Expense Underwriting Classes

      Typically, there are 3 main final expense plans which are offered to individuals based on their health status:

      • Immediate Benefit Plan (Level)
        • 1st Day Coverage
        • Best Rates for Clients
        • Must answer ‘NO’ to all health questions
      • Graded/Modified Plan
        • Limited Death Benefit for first 2 policy years
        • Moderate Rates for Clients
        • Allows 1-2 ‘YES’ answers on health questions
      • Guaranteed Issue Plan
        • Limited Death Benefit for first 2 policy years
        • Most Expensive Rates for Clients
        • No Underwriting – Automatically Accepted

      Advantages of Final Expense Underwriting

        One of the leading advantages of final expense underwriting is the simplified process. Absolutely no medical exams are required and many of your clients will certainly be attracted to this feature. Not only are the policies issued within a few days, but your client will know almost immediately if they’ve been approved or not. This is a great selling point, especially for clients that may have some minor health issues that would typically be rated or declined on a fully underwritten life policy.

        Are You Selling Final Expense?

          Many agents who have added final expense to their portfolios have increased their sales and income by as much as 40%. Pinnacle Financial Services has all the tools and resources needed to get agents set up to sell final expenses from start to finish. Give us a call today to set up an appointment with one of our marketing specialists.

          Need Final Expense Leads?

          For more information, contact a Pinnacle Financial Services representative today

          1 (800) 772-6881 x7731 | sales@pfsinsurance.com

          Director of Sales | Life & Final Expense

          Contact a Pinnacle Representative if you have any questions.

          1 (800) 772-6881
          support@pfsinsurance.com

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          2022 AEP Checklist

          2022 AEP Checklist

          2022 AEP Checklist
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          In order to prepare for the upcoming Medicare Annual Enrollment Period (AEP), it is essential to have a 2022 AEP checklist to have a well-organized start to the selling season. Medicare AEP officially begins on October 1st, 2021, with agents having the ability to start to discuss the new plan options with their clients. The enrollment dates span from October 15th, 2021, to December 7th, 2021, with start dates of 1/1/2022 for all plans.

          Certifications

          The first step every year in the journey to Medicare AEP preparedness is certifications. AHIP is the first major piece that should be finished before starting on anything else. AHIP (American Health Insurance Plans) launched the 2022 modules on June 21st this year. AHIP encompasses 5 modules, a 50-question test, and your updated FWA (Fraud, Waste, and Abuse) training. Once completed, this test is accepted by almost all carriers and will negate most Medicare 101 style training the carriers have built into their own training. If you need details on AHIP or any of the Medicare carriers 2022 training, please visit our AEP Toolkit for a detailed breakdown.

          2022 AEP Checklist: Supplies

          Although not as necessary with the emergence of remote selling, supplies are typically ordered around the first week of September. Supplies can include physical applications, brochures, and promotional materials you may need. This will come in handy for agents who are working both retail booths and scheduled events. We always recommend having some supplies available in case your clients do not have internet or an email address either way. Feel free to let us know what you need by ordering supplies through our website HERE.

          2022 AEP Checklist: Marketing

          Every agent needs a plan of attack on how they are going to market during this crucial season. Some questions you need to ask yourself. Are you going to send out BRC (Business Reply Cards) to potential clients? Are you hosting any sales or educational events (these need to be scheduled well in advance)? Are you going to be marketing online? And if so, will you be utilizing Facebook, Google, or some other social media platform to get leads. These are all crucial questions that need to be sorted out before October comes. Our sales team is here to help with these questions, including exclusive AEP co-op opportunities available, so reach out as soon as possible!

          Pinnacle Financial Services’ Role

          Pinnacle Financial Services is a full-service “FMO” that offers you the best technology in the business while giving you options as well. We are the only FMO in the country that offers BOTH Connecture and Sunfire platforms which gives you maximum flexibility during this busy time. I am the national agent trainer here and I am dedicated to helping agents navigate through the difficulty of all of the certifications and online marketing technologies. With time starting to dwindle, waste no time and reach out to us today!

          Need Medicare leads? Learn about our Retail Opportunities

          For more information, contact a Pinnacle Financial Services representative today

          1 (800) 772-6881 x7731 | sales@pfsinsurance.com

          National Director of Agent Training

          Contact a Pinnacle Representative if you have any questions.

          1 (800) 772-6881
          support@pfsinsurance.com

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          Life Insurance for Children

          Life Insurance for Children

          Life Insurance for Children
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          What is Life Insurance for Children?

           

          Children’s life insurance policies cover the life of a child and are typically purchased by a parent or grandparent. Usually, these policies are whole life products (but sometimes can be an index universal life). This means coverage lasts for the child’s entire life, as long as the premiums are paid.  Coverage amounts tend to be low, often under $50,000, and premiums are locked in, meaning they won’t go up. At certain ages, such as 18 or 21, the child can take ownership of the policy and continue coverage, buy more, or cancel the policy.

          What are the Benefits of Buying Insurance for Children?

          1. Guarantees future insurability: Children’s life insurance policies typically include a guaranteed purchase option. It allows you to buy a certain amount of coverage at a locked-in health classification in the future. This means the child can purchase additional coverage without completing a medical exam.
          2. Cash value that grows: You can withdraw money from the cash value account or borrow against it. When the child reaches adulthood, he or she can surrender the policy and receive the funds in full.
          3. Covers costs if the worst were to happen: Losing a child can be extremely difficult, and you may incur unexpected costs. Children’s life insurance policies pay out a lump sum in the event of a death.
          4. Long-term protection at lower premiums: Since the cost of life insurance depends largely on age and health, purchasing a policy when they’re young can lock in a lower premium for the life of the policy.

          What to Know About Buying Life Insurance for Children

          Buying life insurance for a child is quick and easy. You will fill out an application, but the child won’t have to go through a medical exam. Usually, you can buy life insurance for a child who is age 17 or younger. The coverage, though, remains in effect throughout the child’s life, as long as the premiums are paid. As the owner of the child’s policy, you can transfer it to your child at any point. Most times parents transfer the policies to their kids once they’re adults and let them take over premium payments.

          Who Offers These Types of Policies?

          There are many companies out there that offer children’s whole life policies. Mutual of Omaha has its Children’s Whole Life policy. Gerber also offers their Grow-Up Plan. If you want to talk about index universal life policies, North American has a great product in the Builder Plus 3. To see what else is available call us here at Pinnacle Financial Services and speak to a knowledgeable Life Sales Director.

          Need Leads? Final Expense Leads Program

          For more information, contact a Pinnacle Financial Services representative today

          1 (800) 772-6881 x7731 | sales@pfsinsurance.com

          Director of Sales | Life & Final Expense

          Contact a Pinnacle Representative if you have any questions.

          1 (800) 772-6881
          support@pfsinsurance.com

          Contact Us

          Contact a Pinnacle Financial Service representative today for assistance.

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