February 2021 - SRS Inc

Lifestyle and Fitness Credits: A Three-Class Upgrade for an Active Diabetic Client

September 25, 2026February 26, 2021 by Tim Fuller

Underwriter reviewing medical and financial data with a client during risk assessment

Research consistently shows that fit people who live healthy lifestyles tend to live longer, even with minor health issues. One carrier puts that into practice by scoring lifestyle factors and using the score to improve ratings on permanent cases.

Key takeaways

The carrier scores lifestyle factors and medical tests from records for applicants through age 70.
The score can improve the underwriting class or offset a table rating on permanent products.
A 64-year-old business owner with Type 2 diabetes moved from Table 2 to Standard Plus Non-Nicotine: a three-class upgrade.

Initial offer: Table 2. After credits for exercise, no nicotine, and normal screenings: Standard Plus Non-Nicotine.

How the credits work

During underwriting, the carrier reviews medical records for specific lifestyle factors and test results, scores each one, and uses the total to improve the class or offset a table rating.

Case study

64-year-old male business owner, 5’11”, 195 lbs
Applying for $1.2 million of universal life
Non-insulin-dependent (Type 2) diabetes, with good A1C control over five years
Initial offer: Table 2

Credits applied for: never using nicotine, regular aerobic exercise four times a week documented in his physician’s records, a normal colonoscopy, and normal PSA testing. Final offer: Standard Plus Non-Nicotine.

Why documentation matters

Credits depend on what’s in the medical records. Encourage clients to discuss exercise and keep screenings current with their doctors, so the evidence is there. See documenting health improvements and diabetes underwriting.

Frequently asked questions

Does exercise help with life insurance rates?

At some carriers, documented regular exercise can earn credits that improve the rating.

Can credits offset a table rating?

Yes. Some carriers use lifestyle credits to reduce or remove table ratings on permanent products.

What lifestyle factors earn life insurance credits?

Examples include no nicotine use, regular exercise documented by a physician, and normal cancer screenings.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

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Selling Long-Term Care With Storytelling: Why Stories Beat Statistics

September 25, 2026February 25, 2021 by Tim Fuller

Adult daughter and her aging mother sharing a warm moment while discussing long-term care planning

You already know statistics don’t sell long-term care insurance. Most people don’t see themselves in the numbers, and listing product features doesn’t help if they don’t believe they’ll need care. Stories do what data can’t.

Key takeaways

Clients connect with stories about real people, not probabilities or product features.
Good stories are relevant to the client, focus on feelings, and end well because of the coverage.
In one survey of LTC policyholders, 78% had a family member or friend who needed long-term care, so most clients have a story of their own.

78% of long-term care policyholders in one survey had a family member or friend who needed care. Your client probably has a story too.

Find a good story

You likely already have one. If you’ve cared for a parent or grandparent, you know how hard it is. Stories can also come from family, friends, or clients (with their permission and details changed). See one example in how an LTC policy helped Joe stay at home.

Make it memorable

Paint a picture. Don’t just describe events; describe how people felt.
Keep it relevant. A client with no children won’t connect with a story about the burden on adult kids.
End well. Don’t scare people. The story should have a better outcome because coverage was in place.

Invite the client’s story

Your story often prompts clients to recall their own. Five questions to draw it out:

Do you know someone who needed long-term care?
Who provided their care?
What effect did that have on the caregiver and the family?
How did they pay for it?
What did it do to their finances, retirement plans, or the inheritance they hoped to leave?

Frequently asked questions

Why don’t statistics sell long-term care insurance?

Most people believe the risk applies to someone else. Personal stories make the need real in a way numbers don’t.

What makes a good long-term care sales story?

It’s relevant to the client, focuses on emotions and real outcomes, and ends positively because coverage was in place.

How do I get clients to share their own care experiences?

Ask whether they know someone who needed care, who provided it, and how it affected the family’s finances.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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Why Disability Income Insurance Is the Foundation of a Financial Plan

September 25, 2026February 24, 2021 by Tim Fuller

Ask clients to name their most valuable asset and most say their home or retirement account. In reality, it’s their ability to earn an income, because every other part of their financial plan depends on it.

Key takeaways

Income funds every other goal: savings, insurance, investments, and lifestyle.
In a Council for Disability Awareness study, 71% of consumers thought disabilities were mostly caused by serious accidents; in reality only about 9% of long-term claims are.
Most people rate their ability to earn as their most important financial resource, yet only about a third have taken steps to protect it.

About 91% of long-term disability claims come from illnesses and common conditions, not serious accidents.

Income is the asset behind every other asset

Without income, no savings, investment, or insurance plan can be funded. Yet disability income is one of the most overlooked parts of financial planning, often because clients and advisors misunderstand the risk.

The misconception that drives the gap

In a Council for Disability Awareness consumer study, 71% of respondents believed disabilities are mostly caused by serious accidents. Insurance data shows only about 9% of long-term disability claims result from accidents. The rest come from back and joint problems, chronic diseases, cancer, mental health conditions, and pregnancy. More in four misconceptions about disability.

The protection gap

Nearly everyone in the same study rated their ability to earn as more important to their financial security than any other resource, but only 37% had thought about protecting it.

How we help

We work with leading disability carriers to find coverage for clients in almost any occupation, from simplified issue to fully underwritten, with the goal of getting clients protected quickly.

Frequently asked questions

What causes most long-term disabilities?

Illnesses and chronic conditions, such as back and joint disorders, cancer, heart disease, and mental health conditions, not accidents.

Why is disability insurance important?

Income pays for everything else in a financial plan. Disability insurance replaces part of it if illness or injury prevents working.

What is a person’s most valuable financial asset?

For most working people, their ability to earn an income over their career.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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The 10-Minute Life Insurance Needs Analysis

September 26, 2026February 23, 2021 by Tim Fuller

Clients today expect speed. Carriers have responded with accelerated underwriting, and advisors can do the same with the needs analysis. For most families, a simple income-based calculation gets you to the right amount of coverage in about ten minutes.

Key takeaways

For clients without estate tax concerns, the main life insurance need is usually income replacement.
A quick estimate: current earned income times remaining working years, with after-tax income as a lower bound.
Level term matched to the working years is typically the most economical fit, with conversion for later needs.

If a client has no estate tax concern, their only real life insurance need is usually income replacement.

For most people, there is one need

With a federal estate tax exemption of $15 million per person from 2026, most families don’t face federal estate tax. For them, the core need is replacing income. If the household is on track, keeping that income coming for the remaining working years lets the family maintain its lifestyle and still reach retirement goals.

A simple calculation

Multiply the client’s current earned income by the number of working years left. Because the death benefit is income-tax-free, using after-tax income can justify a somewhat lower amount. Carriers use income multiples by age for financial underwriting, so check your figure against carrier income multiples.

Term fits the need

The need lasts a known period: the working years. That’s exactly what level term covers. Clients can lock in a guaranteed cost for that period. As working years decline, the face amount can be reduced, though many clients keep it level to account for raises, bonuses and inflation. For needs after retirement, such as estate liquidity, clients can buy permanent coverage or use the term policy’s conversion privilege.

Don’t forget the spouse

Propose two policies. A working spouse needs income replacement too. A stay-at-home spouse also needs coverage large enough to pay for the childcare and household services they provide. A streamlined process like this also makes smaller term cases more worthwhile for you. Contact us for quotes or help with any case.

Frequently asked questions

How do you quickly estimate life insurance needs?

Multiply the client’s annual earned income by the number of working years remaining. Using after-tax income gives a reasonable lower bound because death benefits are generally income-tax-free.

Should a stay-at-home spouse have life insurance?

Yes. The coverage should be enough to pay for childcare and household services the spouse provides, so the family can keep its routine.

When is permanent insurance needed instead of term?

Permanent coverage fits needs that last for life, such as estate liquidity, business succession or leaving a legacy. Term with a conversion option can bridge to those needs later.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Who Are Your Best Business Owner Prospects for Life Insurance?

September 26, 2026February 22, 2021 by Tim Fuller

Business owners who ask what their company is worth are often really asking bigger questions: how to exit, how to protect the business, and how to pass it on. Those conversations lead naturally to life insurance. Here is a practical profile of the owners most likely to need your help.

Key takeaways

Owners who request a business valuation are usually signaling exit, succession or protection needs that life insurance can solve.
Closely held companies in professional services, manufacturing, construction, wholesale and retail trade are frequent valuation seekers.
Buy-sell funding, key person coverage and executive bonus plans are the three most common planning outcomes.

A business valuation is rarely the end goal. It is the opening to a conversation about exit planning, protection and the next generation.

Why business valuations signal a planning need

An owner who wants to know what the business is worth is usually thinking about what happens next: selling, retiring, bringing in a partner, or handing the company to family. Each of those events creates a funding question, and life insurance is often the most efficient answer.

Planning needs that commonly surface include exit and succession planning, business continuation and protection, wealth transfer to the next generation, and supplemental retirement income for the owner.

The profile of a strong business owner prospect

Industries that commonly seek business valuations include:

Professional, scientific and technical services
Manufacturing
Construction
Wholesale trade
Retail trade

These are typically closely held S or C corporations, with some partnerships, employing fewer than 100 people and often operating for decades. Many have annual revenue in the low millions, which is large enough to create real value to protect but small enough that the business depends heavily on one or two owners.

The three planning solutions that follow

Buy-sell funding. Life insurance gives surviving owners or the company the cash to buy a deceased owner’s interest at a fair price. See our overview of cross-purchase buy-sell planning.
Key person coverage. Protects the business against the loss of an owner or employee whose skills drive revenue.
Executive bonus plans. A simple way to reward and retain key people with employer-funded permanent coverage.

Family businesses and the next generation

Most family businesses do not survive into the second generation, and far fewer reach the third. Life insurance on the owners can provide the liquidity the next generation needs to keep the business running, pay estate costs, or buy out family members who are not involved.

It is also a clean way to equalize inheritances. If one child will run the business and another will not, a policy can leave the non-active child an equal share without splitting ownership and creating tension.

Frequently asked questions

Why are business valuation requests a good lead for life insurance?

Owners who want a valuation are usually preparing for a sale, succession or partner change. Each of those events needs funding, and life insurance can provide it efficiently.

What life insurance solutions do business owners need most?

The most common are buy-sell funding, key person coverage and executive bonus plans. Family businesses also use life insurance for estate liquidity and inheritance equalization.

How can life insurance help with a family business succession?

It can provide cash to keep the business running, pay estate costs, or give children who are not in the business an equal inheritance so ownership can pass to the child who is.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Table Ratings Priced Off Standard Plus: Big Savings on Impaired Risk Cases

September 25, 2026February 19, 2021 by Tim Fuller

When a client gets a table rating, most advisors focus on which table. Just as important is what the table is built on, and one carrier builds it on a better base than most.

Key takeaways

Most carriers calculate table-rated premiums as a percentage added to Standard rates.
One carrier calculates table ratings off its Standard Plus rates instead, lowering the premium at every table.
A 46-year-old with Type 2 diabetes and elevated cholesterol received Table 2 on $5 million of term, priced off Standard Plus.

Same Table 2 rating, lower premium: one carrier prices its table ratings off Standard Plus instead of Standard.

How table ratings are priced

A table rating adds a percentage to a base premium, commonly 25% per table. At most carriers, that base is the Standard rate. One carrier uses its Standard Plus rate as the base instead, so the same table produces a noticeably lower premium. For clients with several impairments, that difference adds up over the life of a large policy.

Case study: $5 million of term

46-year-old male, no tobacco, 6’1” and 211 lbs
Type 2 diabetes diagnosed in 2011, treated with metformin; A1C 7.8
Blood pressure 135/84; total cholesterol 273, HDL 41, LDL 125
Normal urine protein
Mother died of a stroke at 68

Offer: Table 2, priced off Standard Plus rates, a significant saving compared with a Table 2 priced off Standard.

When to look for this

Multi-impairment cases, like this one combining diabetes, cholesterol, and family history, are where base pricing matters most. Compare the final premium, not just the table. More on how diabetes is underwritten.

Frequently asked questions

What is a table rating?

A substandard rating that adds a percentage, often 25% per table, to a base premium to reflect higher risk.

Do all carriers price table ratings the same way?

No. Most use Standard rates as the base, but at least one uses Standard Plus, which lowers the cost of every table rating.

Should I compare table ratings or premiums?

Premiums. Two carriers offering the same table can charge very different amounts depending on their base rates.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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How the Long-Term Care Insurance Claims Process Works: A Guide for Advisors

September 25, 2026February 18, 2021 by Tim Fuller

Most long-term care policies you sell today won’t have a claim for years. But when a client or their family calls because care is needed, knowing exactly how the claims process works lets you guide them through one of the hardest moments they’ll face.

Key takeaways

Benefits are usually triggered when a licensed health practitioner certifies the insured needs help with two of six activities of daily living for at least 90 days, or has a severe cognitive impairment.
Notify the carrier promptly, usually within 30 days of the need for care or as soon as reasonably possible.
After eligibility is confirmed and the elimination period is met, benefits are paid to the insured or the provider.

Many families wait until the family caregiver is exhausted to file. Encourage them to call as soon as care is needed.

When families usually file

People don’t like admitting they need help, so families often provide care themselves at first. Claims tend to be filed when the family caregiver burns out or the care needed exceeds what they can provide. Earlier filing can mean benefits start sooner, since the elimination period can begin counting.

Step 1: Confirm benefit eligibility

For tax-qualified policies, a licensed health care practitioner must certify that the insured is chronically ill: unable to perform at least two of six activities of daily living (bathing, dressing, eating, toileting, transferring, continence) for an expected 90 days or more, or needing substantial supervision because of severe cognitive impairment.

Step 2: Notify the insurance company

Notice is usually due within 30 days of the onset of care needs, or as soon as reasonably possible. It can often be given by phone or mail and should include the insured’s name and policy number.

Step 3: Claim form and assessment

The carrier sends a claim form, which is returned with provider bills or other proof of loss. The carrier then verifies eligibility, often through an in-person assessment or by contacting the insured’s health care practitioner.

Step 4: Care planning and payment

Once the claim is approved, a care coordinator or case manager often works with the family on the right type of care. After the elimination period is satisfied, benefits are paid to the insured or directly to the care provider, depending on the policy. See how cash benefits differ from reimbursement.

Frequently asked questions

What triggers long-term care insurance benefits?

Typically, being unable to perform two of six activities of daily living for at least 90 days, or having a severe cognitive impairment, as certified by a licensed health practitioner.

How soon should a long-term care claim be filed?

Usually within 30 days of the need for care, or as soon as reasonably possible. Filing early can help the elimination period start sooner.

What is the elimination period in LTC insurance?

A waiting period, often 30 to 90 days of qualifying care, before the policy begins paying benefits.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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162 Executive Bonus Plans for S-Corp Owners

September 26, 2026February 16, 2021 by Tim Fuller

Section 162 executive bonus plans are usually pitched for key employees, but they can work well for S-corporation owners themselves. The plan is simple to set up and administer, and it can be designed to meet several needs at once. Here is how to position it for an owner-employee.

Key takeaways

An S-corp owner who is also an employee can receive a deductible bonus used to pay premiums on a policy they own.
Plan design can match the need: term for income replacement, overfunded permanent coverage for supplemental retirement, or both.
Riders for long-term care and waiver of premium can extend the plan beyond a pure death benefit.

A bonus is a bonus: the plan can fund whatever coverage the owner actually needs, from term to permanent to LTC.

How a 162 bonus works for an S-corp owner

In a 162 plan, the business pays a bonus to the employee, who uses it to pay premiums on a life insurance policy they personally own. The bonus is generally deductible to the business as compensation and taxable income to the employee. An S-corp owner who draws a salary as an employee can participate, which lets the owner pay for personal coverage with business dollars.

Because there is no formal plan document requirement like a qualified plan, it is easy to implement and administer. Have the client’s tax advisor confirm how compensation and payroll tax apply to their situation, especially for greater-than-2% shareholders.

Match the policy to the purpose

Not every need lasts a lifetime. If the goal is replacing income before retirement, term insurance may be the most economical choice, and there is no reason a 162 plan cannot fund term. If the need is permanent, such as estate liquidity, the policy has to be built to last.

Sometimes two policies work better than one: a term policy for income replacement plus a permanent policy for lifelong needs. At retirement the term can lapse or be converted if the need has grown.

A supplemental retirement resource

Highly compensated owners often face limits on qualified plan contributions. An overfunded permanent policy can build cash value that may be accessed on a tax-advantaged basis through withdrawals and loans to supplement retirement income. The owner can choose a lean or heavy funding design based on goals and cash flow.

If the plan uses indexed UL, see our post on using indexed UL to fund executive bonus plans.

Add long-term care and disability protection

LTC or chronic illness rider. Allows early access to the death benefit if care is needed. If the policy is also meant to supplement retirement, LTC withdrawals can undercut that goal, so consider one overfunded policy for retirement and a second with an LTC rider.
Waiver of premium. Often overlooked, it keeps the policy in force if the owner becomes disabled and can no longer work.
Other vehicles. If more life coverage is not needed, the bonus can fund an annuity or standalone LTC policy instead.

Frequently asked questions

Can an S-corp owner participate in a 162 executive bonus plan?

Generally yes, if the owner is also a W-2 employee of the S corporation. The bonus is typically deductible to the business and taxable to the owner. Confirm the details with the client’s tax advisor.

Should a 162 bonus plan fund term or permanent life insurance?

It depends on the need. Term fits income replacement before retirement; permanent fits lifelong needs or supplemental retirement income. Some owners use both.

Can a 162 bonus plan include long-term care coverage?

Yes. The policy can carry an LTC or chronic illness rider, or the bonus can fund a standalone LTC policy.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

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Life Insurance and Marijuana Use: Non-Smoker Rates Are Possible

September 25, 2026February 12, 2021 by Tim Fuller

Many clients assume marijuana use means smoker rates. With the right carrier, recreational users can often get non-smoker rates, and occasional users may qualify for the best classes.

Key takeaways

Some carriers offer non-smoker rate classes for recreational marijuana use, based mainly on frequency.
Once a month or less may qualify for Preferred Plus Non-Smoker; up to three times a week may qualify for Preferred Non-Smoker.
Medicinal use is underwritten based on the condition being treated, and some carriers require a prescription.

Occasional recreational marijuana use — once a month or less — may still qualify for Preferred Plus Non-Smoker.

Recreational use: frequency drives the rate class

With one carrier, potential rate classes for recreational marijuana use are:

Once a month or less: may qualify for Preferred Plus Non-Smoker
Up to three times a week: may qualify for Preferred Non-Smoker
Four to six times a week, and no more than once a day: may qualify for Standard Non-Smoker

Guidelines differ widely between carriers, so the same client could be rated as a smoker elsewhere.

Medicinal use is different

Medicinal marijuana is underwritten based on the underlying condition being treated, not the marijuana itself. Some carriers require a valid prescription, particularly for daily use.

Tips for these cases

Encourage clients to answer frequency questions honestly and precisely; vague answers can lead to a less favorable class. Combined tobacco use or other substances will change the picture. Similar flexibility exists for occasional cigar and pipe use at some carriers.

Frequently asked questions

Do marijuana users pay smoker rates for life insurance?

Not necessarily. Several carriers offer non-smoker rates for recreational marijuana use depending on frequency.

What is the best rate class for occasional marijuana use?

With some carriers, use of once a month or less may qualify for Preferred Plus Non-Smoker.

How is medical marijuana underwritten?

Based on the condition being treated. Some carriers also require a valid prescription.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

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LTC Field Underwriting: 6 Things to Uncover Before You Submit

September 25, 2026February 11, 2021 by Tim Fuller

Long-term care cases move fastest when the underwriter doesn’t have to hunt for information. A little detective work at the application stage can prevent weeks of delays and surprise decisions.

Key takeaways

Ask which specialists the client sees; it reveals conditions they may not mention.
Recent diagnoses, pending tests, and ongoing therapy can all delay or change a decision.
Clients often describe medications by symptom; find the diagnosis behind every prescription.

“A water pill for fluid” could mean mild swelling — or heart failure. Always find the diagnosis behind the medication.

1. Ask about specialists

A specialist tells the underwriter a lot. After bypass surgery, is there a cardiologist? After joint replacement, an orthopedist? With rheumatoid arthritis, a rheumatologist? Multiple medications for depression or anxiety, a psychiatrist? Diabetes, an endocrinologist?

2. Note the date of diagnosis

A diagnosis within the last six months to a year may not give the underwriter enough time to judge stability.

3. Note the last doctor visit

If it’s been more than two years since a physical and lab work, preferred rates are unlikely. Also ask about upcoming follow-ups; knowing about ongoing treatment lets the underwriter order records right away.

4. Listen for pending tests, surgeries, and therapy

Pending tests: anything scheduled but not yet done.
Recent surgeries: what type, was anything malignant, has it healed, and is follow-up still needed?
Physical therapy: for what, is it resolved, did it help, and has surgery been recommended?

5. Find the diagnosis behind each medication

“Water pill”: could be mild swelling or heart failure; note the dosage.
“Blood thinner”: ask about stroke, TIA, heart surgery, clots, or leg surgery.
Bone medication: ask about recent bone density tests and results.
“Arthritis” medication: rule out rheumatoid arthritis.
Narcotic pain medication: why, how often, and for how long.

6. Question anything unusual

A younger applicant who isn’t working may have a health condition or be receiving disability benefits. The underwriter will need to know, so ask first.

Frequently asked questions

What information speeds up long-term care underwriting?

Specialists seen, diagnosis dates, last doctor visits, pending tests, recent surgeries, therapy, and the diagnosis behind each medication.

Why do medications matter so much in LTC underwriting?

They often reveal conditions the client didn’t mention, and some medications are associated with uninsurable conditions.

Does a recent diagnosis delay LTC approval?

Often. A diagnosis within six to twelve months may need more time to show stability.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Lifestyle and Fitness Credits: A Three-Class Upgrade for an Active Diabetic Client

How the credits work

Case study

Why documentation matters

Frequently asked questions

Tim Fuller

We’re Here to Help

Find a good story

Make it memorable

Invite the client’s story

Frequently asked questions

Tim Fuller

We’re Here to Help

Tim Fuller

We’re Here to Help

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

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