Blog Archives - Page 19 of 31

Three Questions That Lead to the Disability Insurance Sale

September 25, 2026July 14, 2021 by Tim Fuller

Professional working confidently at her desk, representing disability income protection

Hard-sell tactics and worst-case stories tend to push clients away from disability insurance. A quieter approach works better: ask three questions and let clients see the gap themselves.

Key takeaways

Question 1: Do you have an income protection plan if you got sick or hurt and couldn’t work?
Question 2: How long could you pay your monthly bills if you couldn’t work?
Question 3: Where would the money come from after that?

“How long could your savings, retirement accounts, and credit cards carry you? Three months? Six? And then what?”

1. Do you have an income protection plan?

Most clients will say no. Those who say yes usually mean a group plan at work, and most can’t tell you what it would pay. Suggest they request the benefit summary from HR. A typical group plan replaces 60% of earnings, often taxable and capped, which can leave them with around 43% of pay after taxes. A small individual policy can bring them back to 65–70%. See the 58% pay cut.

2. How long could you pay your bills?

Ask how long savings, retirement accounts, and credit cards would last. Three months? Six? A year? This paints the picture without scare tactics.

3. Where would the money come from after that?

Then wait. Let the client think it through. When they’re ready, let them know you have an affordable plan and ask if they’d like to learn more. Some will say yes right away; others will come back when they’re ready, and they’ll come back to you.

Before you ask

These questions work best after you’ve established what the client values most. See sell the need before the solution.

Frequently asked questions

How do I start a disability insurance conversation?

Ask whether they have a plan if they couldn’t work, how long they could cover their bills, and where the money would come from after that.

What percentage of income does group disability replace after taxes?

A 60% taxable group benefit can leave roughly 43% of pay after taxes, depending on the client’s tax bracket.

How much individual disability coverage should clients add to group coverage?

Enough to bring total replacement to roughly 65–80% of income, depending on carrier limits.

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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Naming a Minor as Life Insurance Beneficiary: Using a UTMA Designation

September 26, 2026July 13, 2021 by Tim Fuller

Happy family of four laughing together on the couch, representing life insurance protection

Minors can’t legally own a life insurance policy or take possession of a death benefit. If a child is named directly, a court may have to appoint a guardian, adding delay and expense. For many families, a Uniform Transfers to Minors Act (UTMA) designation is the simplest solution.

Key takeaways

Minors can’t legally receive life insurance proceeds, so a child should never be named outright.
A UTMA designation names a custodian to manage proceeds for the child and works like a simple trust.
At the age of majority the child receives everything outright, so a formal trust may be better for larger amounts.

The beneficiary designation is the most important part of a life insurance policy, yet the application gives it the least space.

How a UTMA designation works

A UTMA designation is created in the beneficiary designation itself. It works like a “poor person’s trust” when a formal trust is too costly or complicated. A custodian is appointed to manage the policy proceeds for the child according to the directives in the state’s UTMA.

Details to get right

Name a successor custodian. The custodian may die before the child reaches adulthood.
Follow state law. The wording must comply with the governing state’s UTMA, and the age of majority differs by state.
Check with the carrier. Confirm the wording with the carrier’s claims department.
One designation per child. Each minor beneficiary needs a full, separate designation.
Plan for contingent minors. Contingent beneficiaries who are minors need the same care.

A UTMA designation almost always needs a separate page attached to the application.

The main limitation: control ends at majority

When the child reaches the age of majority, the custodian must turn over the proceeds outright. Unlike a trust, a UTMA can’t delay control well into adulthood. For larger amounts, or when parents want distributions staged over time, a formal trust is usually better. See our guide to trust types for options.

Make beneficiary reviews part of your service

Births, deaths, divorces and remarriages all change who should be named and how. Reviewing designations regularly, especially when children are involved, protects the family and builds trust with your clients. Contact us with questions or for help with a case involving minors.

Frequently asked questions

Can I name my minor child as life insurance beneficiary?

You can, but a minor can’t legally receive the proceeds. A court may need to appoint a guardian. A UTMA custodian designation or a trust avoids that.

What happens when the child reaches adulthood under UTMA?

The custodian must turn the remaining proceeds over to the child outright at the age of majority set by state law.

Is a UTMA or a trust better for a minor beneficiary?

UTMA is simple and inexpensive. A trust costs more but allows the parents to control how and when money is distributed, which is often better for larger amounts.

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 as Estate Tax Liquidity: Still Essential Under the $15M Exemption

September 25, 2026July 12, 2021 by Tim Fuller

With the federal estate tax exemption now permanently set at $15 million per person, fewer families face federal estate tax. For those who do, and for many who face state estate taxes, life insurance remains the most efficient way to pay the bill.

Key takeaways

The top federal estate tax rate is still 40% on amounts above the $15 million per-person exemption.
Life insurance owned by an irrevocable trust can deliver tax-free cash outside the taxable estate.
Permanent coverage also protects against future changes in tax law, which clients can’t predict.

Above the exemption, the federal estate tax still takes up to 40%. Life insurance can deliver the cash to pay it, without forcing a sale of the family business or property.

The estate tax picture today

The exemption has moved a lot: about $5 million (indexed) from 2011 to 2017, roughly double that from 2018 to 2025, and now $15 million per person from 2026 under the One Big Beautiful Bill Act. The rate on amounts above it is still 40%. See what the permanent $15 million exemption means for planning.

Who still faces estate tax

High-net-worth families with estates above $15 million per person, or $30 million per couple
Families whose estates are likely to grow past the exemption over their lifetimes
Residents of states that impose their own estate or inheritance tax, often at much lower thresholds

Why life insurance is the right tool

Estates are often rich in assets but short on cash: a family business, farmland, or real estate. Without liquidity, heirs may have to sell assets, sometimes at the wrong time, to pay taxes due within nine months of death. Permanent life insurance owned by an irrevocable life insurance trust (ILIT) pays a death benefit that is generally income-tax-free and kept outside the taxable estate, providing cash exactly when it’s needed.

Planning for an uncertain future

No one can predict future tax law. A properly structured permanent policy gives families flexibility regardless of what Congress does, with level premiums and cash value that can support other goals. Contact us to run a survivorship or single-life design for your client.

Frequently asked questions

Is life insurance subject to estate tax?

It can be if the insured owns the policy. Having an irrevocable life insurance trust own it generally keeps the death benefit outside the taxable estate.

What is the federal estate tax rate?

The top rate is 40% on the amount of the taxable estate above the exemption.

Why use life insurance to pay estate taxes?

It provides cash at death, generally income-tax-free, so heirs don’t have to sell a business, real estate, or other assets to pay the tax.

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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Handling the Top Long-Term Care Objections: Cost, “It Won’t Happen to Me,” and “My Family Will Help”

September 25, 2026July 8, 2021 by Tim Fuller

Three objections come up in nearly every long-term care conversation: it’s too expensive, I won’t need it, and my family will take care of me. Each has a thoughtful answer, and the answers work best as questions.

Key takeaways

Cost objections usually mean the need wasn’t developed before the illustration was shown.
“It won’t happen to me” is best answered by asking what their written plan is.
“My family will help” is answered by asking which child would bathe them, and what it would cost that child.

“Which one of your children would you want helping you bathe?” It’s the question that changes most conversations.

Objection 1: “It costs too much”

Many advisors show an illustration too soon, so the premium becomes the problem instead of the solution. Develop the need first. Once clients understand what care would cost them and their family, the premium looks different. Design options are in five ways to make LTC more affordable.

Objection 2: “It won’t happen to me”

Ask: “What is your written plan of care if an extended health need arises?” Most people don’t have one beyond assuming family will help. Close to 70% of people turning 65 will need some form of long-term care.

Objection 3: “My family will take care of me”

Respond warmly: “It’s wonderful to have a family that wants to be there for you. Have you talked with them about it?” Then ask:

Are your children working? Which one could cut back or quit to provide care?
Which one would you want helping you bathe or use the bathroom?
Wouldn’t you rather have a trained professional handle that, so your family can spend quality time with you?

See why family shouldn’t be the long-term care plan.

Why these work

Life insurance is a logical sale; long-term care is an emotional one. A care need arrives as an emergency, not a planned event. When clients understand what caregiving really involves, they see the premium as the solution rather than the problem.

Frequently asked questions

What is the most common objection to long-term care insurance?

Cost. It’s usually best addressed by developing the need before showing an illustration, then adjusting the design to fit the budget.

How do you respond when a client says their family will care for them?

Ask whether they’ve discussed it with their family, which child could cut back work, and whether they’d want family providing personal care.

Why is long-term care an emotional sale?

Because the need is about dignity, independence, and family relationships, not just money.

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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Business Valuation for Buy-Sell and Key Person Planning: Informal Options

September 26, 2026July 6, 2021 by Tim Fuller

Long-time business owners often overvalue their company because of emotional attachment, or undervalue it because they have never seen it from the outside. Either way, a realistic valuation is the starting point for good business planning. It doesn’t always require an expensive formal appraisal.

Key takeaways

A realistic business value matters for retirement planning, fair buy-sell terms and financial justification of coverage.
Formal valuations can cost $20,000 or more, which keeps many owners from getting one.
Some carriers offer free informal valuations using a simple questionnaire and three years of financial statements.

A formal valuation can run as high as $20,000, which is why many owners never get one.

Why owners need a realistic valuation

Retirement planning. Many owners count on the sale of the business as a major retirement asset.
Fair transition terms. A buy-sell or other transition agreement should be reasonable and equitable for everyone.
Financial justification. If the buyout is insured, carriers need a supportable value to justify the coverage amount.

Our article on buy-sell planning for business transitions explains how the value flows into the agreement.

Price vs. value

A real estate agent we know describes long-time homeowners who see the staircase their children crept down every Christmas morning, while buyers see a loose banister and worn carpet. Business owners can face the same gap. Part of an advisor’s role is to gently bring an outside view into the conversation.

Informal valuations at no cost

Formal valuations are thorough but can cost $20,000 or more. For planning purposes, an informal valuation is often enough. We work with carriers that, as a service, prepare informal business valuations from a simple questionnaire and three years of financial information. The results:

Estimate the company’s worth using several common valuation methods
Are formatted for the client and their tax and legal advisors
Support coverage amounts for buy-sell and key person coverage

Availability varies by carrier, so contact us to confirm current programs.

How SRS supports the process

We can help you gather the data, request the valuation and present the findings to the client and their advisors. Contact us to start a valuation for a business owner client.

Frequently asked questions

Why does a business owner need a valuation for life insurance?

Carriers need a supportable business value to justify buy-sell and key person coverage amounts, and the agreement’s price should reflect what the business is actually worth.

How much does a formal business valuation cost?

A thorough formal valuation can cost $20,000 or more depending on the business and the appraiser.

What is needed for an informal valuation?

Typically a short questionnaire about the business and three years of financial statements.

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 With High Blood Pressure: Don’t Settle for Standard

September 25, 2026July 2, 2021 by Tim Fuller

A single elevated blood pressure reading at the paramed exam can push an otherwise healthy client into a Standard class. Some carriers look more closely, and the difference in premium can be significant.

Key takeaways

Many carriers use around 140/90 as a key blood pressure threshold for their better rate classes.
A carrier with a more aggressive approach to controlled impairments may still offer Standard Plus above that level.
A 60-year-old woman with a 150/92 reading and no history of hypertension received Standard Plus on $1 million of permanent coverage.

A 150/92 reading at the exam — and the client still got Standard Plus on $1 million of permanent life.

Why one reading can cost a rate class

Blood pressure taken at an exam can run high because of nerves, caffeine, or a rushed appointment. Many carriers use around 140/90 as a threshold, so one elevated reading can drop a healthy client to Standard even with no history of hypertension.

Case study

60-year-old female non-smoker
No history of high blood pressure
Blood pressure at exam: 150/92
Applied for $1 million of permanent life insurance

Offer: Standard Plus.

How to protect the rate class

Schedule exams in the morning, remind clients to avoid caffeine and exercise beforehand, and gather readings from their doctor’s records to show the typical trend. If you’re quoting Standard for healthy clients, check whether a carrier would offer Standard Plus. Upgrade programs can also help when blood pressure is the only issue; see how one-class upgrades work.

Frequently asked questions

Does high blood pressure affect life insurance rates?

It can, but controlled or isolated high readings often have a modest effect, and some carriers treat them more favorably than others.

What blood pressure do life insurers want?

Thresholds vary by carrier and rate class. Many use around 140/90 as a key cutoff, with stricter limits for their best classes.

Can my client retake the blood pressure reading?

Some carriers will consider additional readings or the client’s medical records. Ask us before the exam about the best approach.

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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Joint Life Long-Term Care: One Policy, Coverage for Two

September 25, 2026July 1, 2021 by Tim Fuller

Some clients aren’t sure they need long-term care coverage, but they know they’d want it for their spouse. A joint-life hybrid policy covers both people with one premium and a shared pool of benefits.

Key takeaways

A joint-life hybrid policy provides a shared pool of long-term care benefits for two people from one premium.
The second-to-die life structure can create a larger total benefit pool than two single-life policies funded with the same money.
Some policies can cover two family members other than spouses, subject to age-gap limits.

In one illustration, $200,000 in a joint policy produced more monthly benefit and a larger death benefit than two separate $100,000 policies.

How a joint-life hybrid works

The policy is built on second-to-die whole life. Either insured can draw from the shared long-term care benefit pool if they need care. If neither needs it, a death benefit is paid after the second death. Because the benefit is shared, a couple can often get more total coverage for the same premium.

Example: Jim and Bonnie, both 65

Jim alone, $100,000 single premium: lifetime benefit period, $4,279 monthly LTC benefit, $106,984 death benefit
Bonnie alone, $100,000 single premium: lifetime benefit period, $3,927 monthly LTC benefit, $130,908 death benefit
Jim and Bonnie jointly, $200,000 single premium: lifetime benefit period, $7,406 monthly LTC benefit, $246,891 death benefit

Illustrative figures from an earlier date; current values will differ.

Other advantages

Joint designs can offer lower cost of insurance charges and some underwriting flexibility. Some carriers allow two related family members, such as a parent and adult child, within an age gap (for example, 25 years). For couples where one spouse can’t qualify, see handling the couple rejection objection.

Frequently asked questions

Can a couple share a long-term care policy?

Yes. Joint-life hybrid policies and shared-care riders let couples draw from a common pool of benefits.

Is a joint LTC policy cheaper than two separate policies?

Often it provides more total benefit for the same premium, though it depends on ages, health, and design.

What happens if neither spouse needs care?

With a joint-life hybrid, a death benefit is paid after the second death.

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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4 Misconceptions Clients Have About Disability Insurance

September 25, 2026June 30, 2021 by Tim Fuller

Clients’ beliefs about disability often keep them from buying coverage. Most of those beliefs are wrong, and correcting them is one of the most effective ways to open the conversation.

Key takeaways

Most disabilities are caused by illness, not accidents, and the vast majority aren’t work-related, so workers’ comp doesn’t apply.
Sick leave and vacation cover days or weeks, not a disability that lasts months or years.
Social Security estimates just over 1 in 4 of today’s 20-year-olds will become disabled before full retirement age.

Clients often guess their odds of disability at 1 in 100. Social Security’s estimate is just over 1 in 4.

Misconception 1: “Workers’ comp will cover me”

Research from the Council for Disability Awareness found over 95% of disabling illnesses and injuries aren’t work-related, so workers’ compensation doesn’t apply. Most disabilities come from illnesses, not accidents. See what workers’ comp doesn’t cover.

Misconception 2: “Sick leave and vacation are enough”

In consumer surveys, many people say their sick days and vacation would carry them. Those last days or weeks. A long-term disability can last years.

Misconception 3: “It won’t happen to me”

People often put their personal odds of disability around 1 in 100. The Social Security Administration estimates just over 1 in 4 of today’s 20-year-olds will become disabled before reaching full retirement age. Many people have also never thought about how they’d protect their income.

Misconception 4: “Cancer is the leading cause”

Industry claims data has consistently shown musculoskeletal and connective tissue disorders, such as back problems and arthritis, as the leading cause of long-term disability claims, with cancer second.

Use the facts to start conversations

Most consumers say planning for lost income matters at any age, which is an opening with younger clients especially. Try three questions that lead to the sale.

Frequently asked questions

What is the most common cause of disability?

Musculoskeletal and connective tissue disorders, such as back injuries and arthritis, are the leading cause of long-term disability claims.

What are the odds of becoming disabled?

The Social Security Administration estimates just over 1 in 4 of today’s 20-year-olds will become disabled before full retirement age.

Does workers’ comp cover most disabilities?

No. Most disabilities aren’t work-related, so workers’ compensation doesn’t apply.

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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When the Policy Owner Dies First: Why Contingent Owners Matter

September 26, 2026June 29, 2021 by Tim Fuller

Advisors spend a lot of time choosing contingent beneficiaries, but far less on contingent owners. When the owner and insured are different people and the owner dies first, the policy contract, not the owner’s will, decides who owns the policy next. One real case shows how badly that can go.

Key takeaways

When an owner dies before the insured, many policies default ownership to the insured, regardless of the owner’s will.
If the insured is a minor, changing ownership may require a court order naming a guardian of the minor’s property.
Naming a contingent owner, or using a trust as owner, avoids probate delays and unintended control.

The carrier’s answer: we must follow what the contract states, not what was indicated in the will.

The case: a grandfather, a grandchild and a will

A single grandfather wanted to buy coverage on his five-year-old grandchild. He loved the child’s parents but worried they might tap the cash value during hard times. The agent suggested a trust, but the family’s attorney didn’t like living trusts. Instead, he drafted a new will with a testamentary trust to receive the policy at the grandfather’s death, and the grandfather was named owner.

Two problems should have been considered. If the child died first, the proceeds would be part of the grandfather’s estate. If the grandfather died first, the policy would go through probate before reaching the trust.

What actually happened

The grandfather died first. When the executor tried to move ownership to the testamentary trust, the carrier explained that under the application, ownership automatically reverted to the insured, the minor grandchild. The carrier had to follow the contract, not the will.

To change ownership, the family would need a court order naming a legal guardian of the minor’s property. Otherwise, no transactions would be allowed until the child reached age 15. Even after the court process, the likely result was exactly what the grandfather wanted to avoid: the parents controlling the policy.

Why this is more common than you think

Default-owner provisions naming the insured are common. The issue rarely comes up because the owner is usually the insured, an entity that doesn’t die (like a trust) or a younger person. But it happens often enough that at least one major carrier has staff dedicated to “dead owner” cases.

How to prevent it

Whenever owner and insured differ, name a contingent owner on the application.
Consider a trust as owner when control matters. Our guide to trust types covers the options.
When a minor is involved as insured or beneficiary, review how the contract handles ownership and payouts. See our article on naming minors as beneficiaries.

Frequently asked questions

What happens to a life insurance policy when the owner dies before the insured?

Ownership passes to the named contingent owner. If none is named, many contracts default to the insured, or to the owner’s estate, depending on the policy language.

Does a will control who owns a life insurance policy?

Not necessarily. The carrier follows the contract. If the policy names a contingent owner or has a default provision, that generally controls over the will.

How can a client avoid ownership problems?

Name a contingent owner whenever the owner and insured are different, or have a trust own the 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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Term Conversion Reviews: Following Up on Your Term Life Sales

September 26, 2026June 28, 2021 by Tim Fuller

Term insurance is often sold as the lowest-cost way to cover a need for a set period. Then it’s forgotten until the level period ends and the premium jumps. A simple conversion review process keeps clients protected and creates natural opportunities for permanent coverage.

Key takeaways

Most term policies let clients convert to permanent coverage without new underwriting, usually up to a set age.
Conversion premiums are based on attained age, so waiting makes the permanent policy more expensive.
Level term periods often end before the client dies, so conversion may be the only way to keep coverage if health changes.

With life expectancy in the mid-80s, the level term period will often run out before the client does.

Why term clients need follow-up

The idea of “buy term and invest the difference” works only if the difference is actually invested. More often, clients pay the term premium and spend the savings elsewhere. Years later, the level period ends, the premium rises sharply and the coverage lapses just as the client’s health and age make new coverage harder to get.

How term conversion works

A conversion option lets the client exchange term coverage for a permanent policy without additional underwriting. Key points:

Conversion is usually allowed until a certain age, commonly 65, 70 or 75, or until the end of a set conversion period.
The premium is based on the insured’s attained age at conversion, so earlier conversions generally cost less.
Conversion is especially valuable if the client’s health has changed since the policy was issued.

Conversion rules vary by carrier and product, including which permanent products are eligible.

Build a review process

Set a regular review for every term client, and flag clients approaching conversion deadlines. Even when converting isn’t right yet, the conversation often uncovers new needs or leads to referrals. Some clients may also benefit from newer product features; see our article on carrier upgrade programs.

How SRS helps

We can confirm whether a client’s term policy has a conversion option, check deadlines and eligible products, and provide marketing support to turn those reviews into permanent sales. Contact us with a list of term clients you’d like reviewed.

Frequently asked questions

What is a term conversion option?

It lets a policyholder change term coverage to a permanent policy without new medical underwriting, within the carrier’s time and age limits.

When should a client convert term insurance?

Generally as early as it makes sense, since premiums are based on attained age. Conversion is especially valuable if health has declined.

Is there a deadline for converting term life insurance?

Yes. Most policies allow conversion until a certain age, often 65, 70 or 75, or until the end of a set conversion period. Check the specific contract.

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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Three Questions That Lead to the Disability Insurance Sale

1. Do you have an income protection plan?

2. How long could you pay your bills?

3. Where would the money come from after that?

Before you ask

Frequently asked questions

Tim Fuller

We’re Here to Help

How a UTMA designation works

Details to get right

The main limitation: control ends at majority

Make beneficiary reviews part of your service

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

Tim Fuller

Tim Fuller

Tim Fuller