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X Out the Competition with PDX

X Out the Competition with PDX. Pacific Discovery Xelerator IUL from Pacific Life provides death benefit protection with competitive growth potential . Up to 23% greater distribution potential and higher target premium

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X Out the Competition with PDX

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  1. X Out the Competition with PDX • Pacific Discovery Xelerator IUL from Pacific Life provides death benefit protection with competitive growth potential. • Up to 23% greater distribution potential and higher target premium • Bonus Study Group Call on PDX: May 4th at 10:30AM CDT. Look for the registration link in the follow-up e-mail

  2. Objectives • Identify opportunities for Pension Max designs • Explain the different pension max strategies and which is best for different client types • Provide steps and talking points for presenting pension max designs to a client

  3. On the Call Stoyan Petev Vice President of Advanced Designs spetev@firstheartland.com 636.695.2805 Sarah Molitor Training & Communication Specialist smolitor@firstheartland.com 636.695.2894

  4. What is Pension Max? • Client owns a DB plan that offers a lifetime payout at retirement. • The DB plan will also offer a joint payout to continue payments to a spouse. • All income paid by DB plan is fully taxable • If client health permits, in some cases the difference between the single and joint income levels can be used to purchase a life insurance policy on the plan participant. • Life insurance replaces the taxable income with an income tax-free asset.

  5. Case Study 1 • Plan Participant, male age 60, preferred nonsmoker • Spouse is 47 • Single Life Pension - $5,319/mo. • Joint Life & 100% Survivor - $4,292/mo. • Income difference - $1,027/mo.

  6. Case Study 1 Proposed Solution • Death Benefit Need to Replace Income to Spouse is approximately $1,250,000 (spouse is 13 years younger). • Buy 3 laddered term policies for $250,000 each with the same carrier: total monthly cost is $326/mo. • One 10-year, one 15 year, one 20-year • Convertible to age 75

  7. Case Study 1 Proposed Solution

  8. Case Study 1 Proposed Solution • Buy a permanent policy for $500K with the option to reduce DB or eliminate premium later. • As term insurance drops off, the premium on the permanent will be increased incrementally • Guarantees last for 32 years. • Potential cash value growth.

  9. Case Study 1 Proposed Solution

  10. Case Study 2 • Plan Participant, male age 60, standard nonsmoker • Spouse is 58 • Single Life Pension - $3,110/mo. • Joint Life & 75% Survivor - $2,534/mo. • Income difference - $576/mo.

  11. Case Study 2 Proposed Solution • Death Benefit Need to Replace Income to Spouse is approximately: • $665,000 Now • $365,000 In 10 Years • 175,000 In 20 Years • Buy 2 laddered term policies for $250,000 each with the same carrier: total monthly cost is $338/mo. • One 10-year, one 20-year • Convertible to age 75

  12. Case Study 2 Proposed Solution

  13. Case Study 2 Proposed Solution • Buy a permanent policy for $175K with the option to reduce DB or eliminate premium later. • As term insurance drops off, the premium on the permanent will be increased incrementally • Guarantees last for 29 years. • Potential cash value growth.

  14. Case Study 2 Proposed Solution

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