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well uh like i said before good morning and afternoon to everyone here on the line i want to thank you for attending this webinar today i know your time is very valuable here uh you know we'll be going today between 45 minutes and an hour depending upon questions and everything um so um we will be through the go to webinar program here you'll see that if you have a question at the end um you can just click on question there and i can go through and unmute people one by one that puts their hand up when you see it in the corner there on the webinar deal so and of course if you don't get your questions answered today uh you can give us a call at 877-844-0-900 and we would be glad to help you out for here talking about moving money to the next generation or to a spouse or to a charity an institution university whatever it might be on the most tax efficient way possible and with of course the most uh total value of money being passed on to trying to leverage this money in whatever way that we can so you know we here at the olsen group have been working in the life insurance market a lot in the single premium life market for a number of years now and have been bringing you guys different products and different strategies to do this and hopefully what we can do today is give you some good sales ideas some great products that have just come out here recently and some good incentives to do business with the olsen group here and uh help you go out and help your clients today and uh and make some money as well so what are we talking about here when we're talking about capital transfer well there are a few different reasons why we're doing this first of all the main idea is to leave a larger net estate after taxes you know income taxes are the big thing we're going to focus on here we're going to show how you're going to owe less total income tax when this is being passed on to have a smaller tax bracket for your heirs as well this all kind of you know is wrapped around what we call the tax time bomb which either results from annuities you know tax referred annuities or ira accounts where you know you've done a great job of deferring these taxes for a long period of time but uncle sam is going to get his money in the end and uh you can either pay it now and shift it into something that's income tax-free or your heirs or your spouse are is going to have a large taxable bill in the future which not only will cut down on the total amount of inheritance they get after taxes but it can also boost them up into a much larger tax bracket on all of their other income that they've had uh through the year so you know where somebody maybe you have a relative who let's say you know earns 50 to 60 000 per year in ordinary income well if you're going to give them an extra 100 000 of ordinary income there for the given year you're going to bump up that tax bracket that they're in and they're going to effectively pay more taxes on their own wages than they would have had they not gotten that uh you know that large tax hit from your inheritance so we're going to show you how to maybe minimize uh those taxes and this tax time bomb another thing we can show how to use this is to help recover market losses of course there are a lot of people out there right now with some big market losses you know it's uh it's kind of like a roller coaster out there we haven't had very good news here recently in the last couple weeks but we're starting to recover from that low point that we had a couple years ago when you know the market first hit this you know this big crash but a lot of people are still underwater here and are trying to find a way ways to make some of that money back we can do that a lot of times with life insurance we want to also show how a lot of these policies now provide emergency long-term care dollars where if they do get sick they can access these death benefits for all forms of long-term care not just nursing home but also home health care so we'll show how we can do that as well of course there are a couple of key things that we can show on the life insurance side of things that other products don't have we have an immediate increase in the state value so this leveraging factor from that moment that underwriting has gone through we can have the immediate increase in the state value we have tax deferred growth on the cash values inside just like we do with deferred annuity products we also have the income tax free death benefit which is a very rare not a whole lot of other products and concepts have this type of deal and we can show uh we're going to show different products here single premium and multi multiple premium type of situations here whether your your client has a one chunk of money or they're going to break it up into a number of years to shift money into life insurance the first thing we're going to talk about here today is single premium life insurance and uh single premium life has a no lapse guarantee give you all these products that we talk about which means you make one payment and that death benefit is going to be guaranteed forever usually it's to age 100 110 most of these products we have is the h120 so they'll never owe another premium payment ever we're going to show how a lot of these have living benefits where if the client's diagnosed with a terminal illness or a chronic illness or going into a nursing home then they can access benefits from this policy to help out with those costs we have simplified underwriting products which have become very popular here where the client only has to um have a phone interview or um and the application sometimes an attending physician statement needs to be done we need to get doctor's records but in most cases there's never an exam required by the client and then we have the full underwriting the traditional underwriting products here where if your client is healthy they're probably going to get a bigger bang for the buck there if you're just interested in total death benefit and they'll have a normal paramedic exam and blood and urine draw and that type of thing single premium life insurance it is a mech a modified endowment contract no more premiums are going to be owed on this and you know just for people that are maybe getting started in this market sometimes mec uh is a bad name to a lot of people but all it means is just if you take any withdrawals from the cash value on this modified endowment contract it is taxed like an annuity is where the first money out is considered gain and will be taxed at ordinary income levels um instead of life insurance that passes the seven pay test and is considered a non-mec where you can take loans income tax free from the product but the main thing we're concerned about is the death benefit here and for mex and non-mex alike it's income tax-free to the errors in both of those situations so let's get right into some of these products before we get into some of the case designs uh we'll start with the simplified underwriting products uh we're going to focus on two carriers today sagicor life insurance company is one they're an a minus rated carrier based domestically here out of uh offices in tampa and scottsdale we have their fixed indexed single premium whole life and their interest sensitive single premium whole life which is more of the fixed version of the product then we also have equitrust they have their wealth sure and then their brand new wealth max bonus products which are their fixed and fixed index products respectively and then on the simplified underwriting side there's this sagicor seven pay indexed whole life product which is nice because sometimes for various reasons clients don't want to pay a one-time premium they want to break it up over a number of years and with this seven pay version we can make it a non-mec and also uh utilize this spea that they have or we can do a combo sale where we can roll dollars in to an immediate annuity have that payout over seven years directly in to this life insurance product this is especially good if you're working with qualified money where you want to break out that tax burden over seven years that the client's going to owe or a deferred annuity where you can benefit from the exclusion ratio by moving it into this spea so only 1 7 of that taxable income on that large lump sum of money will be due each year for seven years and of course we'll go through some different case designs to illustrate that but these are all simplified underwriting no exams just a telephone interview and the application and on occasion if they need to they'll do an attendant position statement all right let's first work with uh what has been our biggest seller here uh for a lot of reasons that you'll see is this sagicor fixed indexed single premium whole life product now the first thing that a lot of people like here that really make the sale easy is it has a guaranteed return of premium at any time we like to call this the money back guarantee where if a client puts in let's say one hundred thousand dollars into the product at any time regardless of what surrender charges are and what their true surrender value would be after surrender charges they can at least always get back that one hundred thousand dollars at any time no questions asked so really cuts down on any buyer's remorse that the client has of thinking uh you know this sounds good this sounds like uh the type of product i want it gives me these great benefits but what happens if i do need the money well you can always get that back without having to have any type of excuse to do that so you can just happen it has a 10 bonus so if you can see this is really trying to appeal to annuity agents and annuity clients as an annuity alternative you'll see that they have a 10 bonus to the cash value right away that really helps to you know pay for maybe any surrender charges that the client had when they moved an annuity over to this product or maybe any to recruit for any taxes that the client held out by moving it from a taxable vehicle into this uh tax-free death benefit product then of course it also works kind of like a long-term care hybrid contract because it has the chronic illness writer and the way that this works is if the client cannot perform two of six activities of daily living will accelerate all but 25 000 of the death benefit to that client over 33 months and that comes out income tax-free to the client as well because it's paid like an accelerated death benefit so that's a great way to provide you know a type of long-term care coverage for a client that doesn't want to purchase traditional long-term care because maybe they perceive it as a use it or lose it type of situation with this if the client needs the money for long-term care they can turn on this rider if not then it's just going to go income tax-free to the heirs like they intended this product is standard issue through table four so not to be elementary but uh you know with life insurance you have your smoker and non-smoker ratings but then you also have your preferred standard and then it goes down to table 1 table 2 table 3 table 4. so the way that sagicor does this is as long as you're within those four tables of underwriting from their from their simplified underwriting process you're either going to going to get a smoker or a non-smoker rate so it's either an approve or decline type of situation with a telephone interview and the application only like i said before in extreme situations though they want to do an attending physician statement if it's maybe a large case on an older individual and they will let you know if they need to do that this product has an eight percent commission on the single premium amount that's from the minimum age of 18 to 80 and then ages 81 to 85 it still pays a very strong six percent commission so 85 is the max issue issue age on this product a little further like i said this is a fixed indexed single premium whole life product one of the only whole life products i've seen that also has index crediting with it so it has great guarantees along with upside potential of an index strategy so you got three different interest options here you've got your traditional annual point to point from the s p 500 with 100 participation and a current eight percent annual cap so those lock in every year as an annual reset then they have this global basket strategy that's currently at a 45 participation rate with no spread or no cap with this strategy interest is credited every three years they look at every three year cycle and they use the russell 2000 the dow jones euro stock 50 and the hang sing index and basically they take the first place performer and give a 60 percent weighting to that index then the second place to get a 40 percent weighting and then they throw out the worst one and uh whatever that total gain was between those they give it a 45 participation rate so you'll see on on the illustrations when you start running these that it's a has a very strong uh historical performance over the last 30 years with those so you can give the client a little bit of international exposure with this product as well and currently if you want to go in the fixed bucket it's a four percent rate on the cash value overall this product has a two percent guarantee even if all these markets go down every single year all right well let's look at its sister product here the interest sensitive single premium whole life now this has all of the same general features that i just explained from the index product except for a couple things first of all does not have the 10 percent bonus to the cash value like the index one does i think because of that as a slightly higher commission with a 10 commission on the single premium through age 80 and this one will write to older ages all the way through age 90 with a six and a half percent commission at those ages and it's just traditional fixed rates on here no index credits five percent current yield in the first year they're projected to renew at a 3.5 percent base and for the length of the contract there's a three percent bare minimum guarantee on this and uh with both of these products they have no lapse guarantee so regardless of what interest rates do your death benefit is always going to be guaranteed as long as you don't pull a lot of money out of the contract now the third sag core product since we're already talking about some of these general features with the chronic illness writers um and the index credits they have a seventeen index whole life product it has the same uh riders and guarantees was that product and the same crediting strategies that the fixed index single premium one did it's just uh you can pay it over uh equal amounts over seven years it's a totally paid up product after seven years and actually after you make that first payment into that you have a guaranteed debt benefit that's going to be paid to the client whether you pass away after one year or after you know 30 years and you can also use this like i said as a combo sale with a seven year certain spea to spread out a tax that any tax burden when you're moving over from a different source we're going to go over examples on that as well with this product it's paid more like traditional life insurance with a 90 percent uh commission on target premium in year one and also four percent on any excess premiums and on renewal premiums so very uh competitive commission rates with compared to other life insurance products in the market all right well now we're going to talk about some brand new products that just came on board your one of them just as soon as last week or so and then this other one only you know a month or two since we brought on board i know many of you have written business with equitrust over the last few years on the annuity side um and they've had some very inventive products and competitive products on the annuity side and so now they brought those talents over to the life insurance side and just to let you know i guess just a plug for our group here too if you are appointed on the annuity side with equitrust there are only a couple imo's that have uh the life insurance contract with them and the ability to sell these products so the majority of people you're not able to sell this equitrust product unless you're appointed with groups like the olsen group that have the relationship for this life insurance side so first we're going to look at this wealth sure life product it's an interest sensitive single premium whole life product that'll issue through age 85 it's standard through table four just like the sagittacore product was they do the telephone interview uh and the application for the main underwriting and with this one it has a whopping 15 commission all the way through age 80. and even ages 81 to 85 it's 11.5 so this one uh definitely will pay you for for a good day's work get out a little bit differently first of all if you're diagnosed with a terminal illness you can accelerate up to 100 of the face amount if you go into a nursing home you can have a hundred percent of that death benefit paid over three years which would come out income tax free to the client or have a lump sum of 85 percent which potentially could be taxable and we'll get into some of those different reasons later so you have two options on that for the chronic care benefits which is like the chronic illness rider with sagicor again if the client can't perform two activities of daily living then you can accelerate 100 of that death benefit over five years to help pay for any types of long-term care costs or you can do a lump sum version with this as well at 75 percent of the death benefit so this too can serve like a long-term care hybrid contract product and they're getting it rolling here they have a tremendous bonus i know a lot of you through us have been taking advantage of in addition to this 15 commission rate they're giving you a 2 000 first case bonus as long as that uh piece of business is over 50 grand if it's under that it's 500 first year bonus and bonuses and subsequent cases if it's 50 000 bucks or more another two grand 750 if it's under that uh 50 000 so this is extended through i can't believe it's already september but through the end of this month through september 30th so take advantage of this right now for any clients you have out there in addition that 15 you get an extra two grand on top of that to help you pay for other marketing costs and other things coming up here for the fall now what we're going to talk about is a brand new product that's going to be their sister product which is the wealth max product where they give a 12 first year bonus on this indexed uh single premium whole life product so 12 percent right up front to help pay for any you know taxes or surrender charges the client had they have a return of premium money back guarantee on this product as well so like we said before the client puts in 100 grand at any time they can walk away with that hundred thousand dollars no questions asked if they need it regardless of what the surrender charges are this one will issue through age 85 as well they have four index crediting strategies to choose from uh they have the same underwriting guidelines and writers as the wealth sure did there so they've got the nursing home the terminal illness and the chronic uh illness that can help out with home health care and other long-term care costs this one has a nine percent commission through age 75 it breaks down to eight and a half from 76 to 80 and still a strong six and a half commission 81 through 85. so um pretty strong here money back guarantee 12 bonus with a 9 comp so please uh let us know if you have clients that you want to see uh illustrations for these two new equitrust products before we get into some of these k writing ul's well what we're looking at here we can design these life insurance products however we want to do them you can do a single pay a limited pay like a 5 or 10 pay or just have an ongoing premium for as long a client lives like i said before if the client's healthy you're going to get a bigger bang for your buck here uh with a larger death benefit but maybe not some of the same return to premium guarantees that the simplified underwriter products have these all these ewell products we work with have no lapse guarantees so you know a lot of your clients may have had some ul products that imploded in the past that they asked for more cash into this ul or else the policy would collapse well that's not going to happen with these new generation of ul's because they all have these no lapse guarantees that hey as long as you pay this specific premium your policy will never last no matter what happens to your cash value or interest rates we can make it a non-mec if you want to so you can take out tax-free loans later on we've got many carriers to choose from a lot of top tier highly rated carriers right well let's get down to the meat of these products hey it's great to know all the features but how can we use these in different case studies so i'm going to share with you a lot of the different um case situations that we use here with our agents and and we're going to give you some real life examples we're talking about moving annuities and cds into life insurance the most obvious one for a client that uh you know has identified a chunk of money that they're probably not going to need to use for income and they just want to pass on to a spouse or the next generation we're talking about variable annuity rescue situations we're also going to talk about loss recovery people that have lost money in the marketplace and need to get that back at least for their heirs or talk about a fixed or a fixed index annuity rescue as well that maybe the client is trying to get out of a certain maybe two-tiered annuity or something that's not performing well because of caps and rates we're also going to talk about what we call the five percent solution which talks about accessing either an ira or a non-qualified uh pot of money uh that maybe you don't want to move the whole thing but just take a 5 withdrawal per year to increase the estate overall and maybe to help pay for some of the taxes that are going to be due on that taxable vehicle when the client passes away and last but not least we'll talk about using these as a long-term care insurance alternative where it's not perceived by the client as they use it or lose its situation that they can access those uh you know dollars from the policy if they do get sick all right the first one we want to talk about annuity life insurance here well let's just jump right into it with uh with a real life situation here we had a male a70 they had a hundred and fifty thousand dollar annuity that was currently earning a four percent rate not bad in today's environment they had a hundred thousand dollar cost basis in this annuity meaning there were fifty thousand dollars of built up gain inside this there was still a five percent surrender charge as well and they wanted to uh leave money to the kids so all of these we have different fact finders you can use that are in the members only section of our website but this is always after going through and doing the income planning figuring out what they need for you know other parts of living and then we find out which chunks of money are earmarked to be passed down to the next generation and this 150 000 annuity was what this 70 year old guy wanted to move what was our solution well we were going to surrender the annuity pay the income taxes owed now and buy this sagiquar fixed indexed single premium render value as they take the surrender charges and hold out 25 percent in taxes from that gain in the product we were left with a little under 132 000 now with that premium we got a guaranteed death benefit with of two sagicor and twelve thousand dollars now when we used our different index strategies in there at life expectancy of this client uh that death benefit was projected to grow all the way to about 364 000 dollars so we were at least guaranteed the 212 and if history repeated itself we had some good growth we could tack on over a hundred thousand dollars of extra um tax-free death benefit well one of the things that we have at our disposal here is this program called captram where we can compare if a client stays in a current annuity versus moving into a single premium life product or if they're in a cd or if they have an ira you know under current conditions hey if you waited till life expectancy would you have more money in the life insurance or in the annuity after taxes so what we're showing here if they stayed in the current annuity that at 150 000 bucks the projected value of life expectancy which i believe is about 16 years for an age 70 year old is uh 249 000. well that's great but at their passing uh the income tax due would be over 37 000 on this leaving a net after tax inheritance of around two hundred and twelve thousand dollars if that rings a bell there our um our guaranteed death benefit day one after you put that premium in there is two hundred and twelve thousand dollars with the sagicor so you'd have to wait you know around 16 years for growth in that annuity just to get to that minimum guaranteed death benefit with sagicor that we're getting after the client signs the paper so our idea was to turn in the 150 grand of annuity pay the surrender charges pay the 10 grand of current income tax at a 25 tax bracket and pop the money into this uh sagittarius single premium whole life product that bought a policy for the 212 000 guaranteed death benefit but that was also projected to grow a life expectancy to 364 000 dollars of course there's no income tax due because it's life insurance so the net after tax inheritance your client would get 151 000 more or 72 percent more if you do our deal and transfer into life insurance so our client was very happy with that idea and did the deal and moved that into this agi core product all right well moving on to a different annuity to life example in this case we had a 63 year old male that has 120 000 and an annuity now this is an annuity they've had they had for a number of years uh 1035 exchanges into different annuity products and uh kept that uh tax deferred status going so their cost basis was forty thousand dollars in this policy meaning they had eighty thousand dollars of taxable gain built up in this annuity but uh we identified through our fact finding that they wanted to move it to an income tax-free death benefit situation but the guy didn't really wasn't too hot on uh paying eighty thousand dollars or recognizing eighty thousand dollars of extra ordinary income that year uh all in one year but still wanted to find a way to move well what he showed him that we could do is we could 1035 exchange that deferred annuity into a sagicor immediate seven year certain annuity and we assigned those seven spia payments as premiums to the center core indexed seven pay whole life product so what we do by using this exclusion ratio that spreads out taxes equally over those seven years we spread the taxes owed over seven years and the policy is totally paid up after that seven year period let's see how those numbers worked out well um we had uh this spea was paying out a little less than thousand dollars to this life insurance product uh for seven years uh thirteen grand of that is taxable each year so he could uh live with the idea of recognizing extra thirteen thousand dollars of ordinary income instead of a full 80 grand in one year this bought a death benefit of 200 000 that was vested day one so we've already from that first speed payment going in there we've turned 120 000 um 120 000 taxable annuity into a 200 000 tax-free death benefit but if the client even died during that seven-year payout the beneficiaries not only would receive the life insurance tax-free death benefit but they would also get the remaining annuity payments from that seven-year certain spea and to combine this all together not only do they have that death benefit but it has the chronic illness writer on it that if a client can't perform two activities of daily living they would have over five thousand dollars a month available for all forms of long-term care up to 33 months and that's just deducted dollar for dollar from the death benefit as it's being paid out so needless to say this client was very happy with this program too and we solved uh their tax problem as well as their wealth transfer uh problem all right well let's look at a situation that's usually the mo you know the easiest out of all these too moving a cd to life we identified that this woman aged 74 this grandmother had a 50 000 cd that was earmarked to leave to the grandchildren i'm gonna try to use that to help out for college uh you know help out for uh room and board and everything uh when those kids go to college so uh you know and they had she had a cd uh at a 2.5 rate which is actually a pretty good cd rate these days i think uh we're still around two percent for the average five year cd um so uh obviously with this situation we had an easy uh decision what we did was uh we decided we were going to surrender the cd there have been no taxes owed because they owe taxes every year on the gain in interest from that cd because it's not a tax deferred vehicle and it was not an ira so we surrendered the cd no taxes owed and we bought the equitrust wealth sure product that we just spoke about this is the one that has the 15 commission and the extra two grand bonus right now and this one because it was fifty thousand dollars qualified for that extra bought a seventy four thousand dollar guaranteed death benefit in this equitrust product and uh just so we're being apples to apples on our end the client said well that that's great but you know what if i did keep it in this cd here and uh you know held it to my life expectancy this is what the 74 year old said well let's look at a two two and a half percent rate that fifty grand would grow to sixty four thousand dollars at your life expectancy there'd be no tax due because it's a cd and you're paying taxes every year so you would have uh you know just under 65 grand to pass on to your kids for life insurance as opposed to what we just quoted you seventy four thousand dollars tax free that you get day one without waiting you know another ten years or so for that growth to happen so even after that period of time your errors are still going to inherit 9 000 more or 14 percent more if you transfer this to life insurance you're going to be paid for a lot more college tuition in my situation so client did the deal all right moving on here we're going to look at another case study talking about loss recovery here now i'm sure this is you know if you're dealing with anybody that has money in the market or had money in the market uh you know they're really especially the retirees they're really concerned about this up and down marketplace uh losing money that they either need to use for income to live on or just money that you know they're looking to pass on especially for their spouse and a lot of times you know money that they had earmarked to go to the kids that now has been cut in half or reduced by 25 or so so look at the situation that we had here with a 70 year old male that had a hundred thousand dollars in their brokerage account um that they were going to leave to uh his heirs and this specific one he wanted to leave this uh to his spouse i believe so it's concerned about uh she was a couple years younger and concerned about what she was going to live on after he passed away but market losses decreased the value of this account by 25 so now he was down to 75 grand in this brokerage account and he wanted to recover these losses and if it was could be in a tax-efficient manner uh that of course would make him happy as well so what did we do well we used this remaining 75 grand after the market loss to purchase the sagicor fixed indexed single premium whole life this 75 grand of premium got that nice 10 percent bonus that was a credit of the cash account too but bought a 120 000 guaranteed death benefit that was going to be income tax free so not only do we recover that 25 grand in losses but we added another twenty thousand dollars of tax-free money on top of that which would have taken a long long time uh in the market with uh some great gain to get back to that 120 grand and now we're doing it on an income tax-free basis as well without any worried about any capital gains taxes so that's a great way for earmarked money to be passed down to recover it through life insurance instead of having the client sweat it out and hoping the market comes back let's look at a similar situation here i'm not sure if this is the guy in the picture here though that we that we used but uh let's just pretend like he is we have a 74 year old male that lost money in a variable annuity and they're holding no they're holding this product now for this death benefit you know a lot of these variable annuities have good death benefit guarantees that say you know even if the uh you know your sub accounts inside this variable annuity these mutual funds if they lose money you're still going to have a certain amount for death benefit to pass on to your spouse or your parents so we identified that this pot this va wasn't something that they were using for income they were concerned about holding this for the death benefit so the original premium in the variable annuity was 150 000 the cash value now is down to 111 grand but they had i think it was a high watermark uh death benefit situation of 160 000 so thinking if i move this money now you know i'm going to miss out on this you know 49 grand of extra money in there that was being credited to my death benefit well we said hey mr client if it's really the death benefit you're concerned with we can do a lot better in one of my products what we showed him is surrendering this variable annuity and buying the aviva advantage builder uh no lapse guarantee universal life product and with this 111 thousand dollars of premium which was what was remaining in that variable annuity bought 232 grand of guaranteed death benefit all the way through age 120. so once again we leapfrogged over that 160 000 of variable annuity death benefit and uh you know added on over 70 grand of income tax free dollars to this client's account that was going to be guaranteed to age 120. now with this one the client was healthy uh they didn't mind going through the underwriting process didn't really care about some of the other simplified underwriting features that sagikore and equitrust have with you know return of premium guarantees and with different chronic illness writers with this they're thinking hey this is just let's max out the death benefit and so that's what we did and that's what sealed the deal for the 74 year old all right well let's look at uh you know not to keep picking on the market and variable annuity type of products let's look at uh you know some different situations with a fixed annuity rescue let's say we have a client that has a bad annuity that they want out of or that they perceive as bad because hey you know they're locked in the high surrender charges and uh maybe it's a two-tiered annuity that has an annuitization value which is different from their true cash value and walk away value and they have poor rates and caps in here and they feel trapped and they're thinking i'm not making any money on this i really can't get out without a big stinging penalty what can i do well a lot of these products have uh features where you can annuitize for the full account value without surrender charges and maybe even get that special annuitization value in there uh without having to revert to the uh you know the true cash value on those two tiered products well what we can do is we can annuitize these products and make premium payments to a guaranteed no lapse universal life product or maybe like that sagicor seven pay indexed whole life product so we can turn a deferred a tax deferred annuity into a tax free death benefit if that's what they want to do with this and so a lot of these products some of them will let you annuitize over five years and get out after a certain amount of time some of them we can do it for a seven year period or maybe some some of them make you do a ten year period regardless we can find the product to fit that annuitization policy this situation we had a 71 year old male that had 137 000 of account value and an annuity with a 9 surrender charge but we identified that they were able to annuitize this product for 10 years for that full value of 137 grand without taking that 90 surrender charge off of it and we found out this guy of course wanted to leave this chunk of money to his heirs so if we when we annuitized for ten years we were able to get out thirteen thousand nine hundred ten dollars uh over ten years so what we did was we applied those premiums those ten yearly premiums on just a 10 pay scenario to that aviva advantage builder ul again and we got a guaranteed almost 248 000 tax free death benefit guaranteed all the way to age 120 by doing this 10 pay it's totally paid up after 10 years no more premiums owed and that death benefit was guaranteed so from taking this guy from a situation where he's earning low interest rates and this annuity still had a nine percent surrender charge day one when that first premium went into the aviva product we turned 137 thousand dollars into 247 tax-free and helped him accomplish that goal okay and we're going to be going just a little bit longer here and then we're going to open up the questions here but i want to talk about this case study of the five percent solution you may have seen some of the videos uh in our media center at olsongroup.com talking about the five percent solution we do this with all different types of accounts whether we're doing it with a simplified underwriting final expense type of product or a regular universal life contract where we make annual payments but basically what we're talking about is uh having a client here that wants to increase their total estate value and also minimize taxes a lot of times it's a situation where they have an ira which of course is going to be fully taxable or a non-qualified annuity that has a large gain there where we don't want to you know the client doesn't want to annuitize it and they don't want to surrender it and pay this full lump sum or pay full tax burden in one year and we're also identified by identifying with these clients that maybe they don't need the annual interest off of this account for current income so the biggest situation i always see is someone somebody that has an ira account uh that's taking this required minimum distribution every year but they don't want to you know they're 70 and a half they have to take it you know they have to pay tax on it they don't know what to do with it and they end up spending it but would rather kind of keep it in the account there if they could or make you know some good use of that money well we have a great solution for those type of people we take out five percent of that account annually to pay for the life insurance premium we keep that ira or non-qualified annuity active it's still growing in whatever you know annuity investment that it might be in over there and you have this life insurance policy to pay for taxes that's going to be owed on that ira or annuity account so let's look at an example here to show you really how powerful this is let's look at a 68 year old female that we had she was a preferred non-smoker healthy she had a 280 thousand dollar ira she was gonna have to start taking rmds pretty soon but uh wanted to really kind of uh find a way to pay for some of the taxes that were going to be owed on this ira and increase the total estate value so we looked at five percent off of this which was fourteen thousand dollars per year we just wanted to do this for a limited period of time for seven years so we pulled out that fourteen grand and with the sagicor seven pay whole life this client you know just had the simplified underwriting situation here just a telephone interview to get this issued for seven years of that 14 grand premium we could buy a 145 000 of guaranteed death benefit added on to that 280 thousand dollar ira now this is where it's kind of powerful here too if you're in a product and this is a lot easier a couple years ago when you had uh higher interest rates but you have a product that may be averaging a five percent rate of return and you're doing the five percent solution you're basically taking interest only off of this and you're not digging into that 280 000 of ira principle so we're pretty much keeping that 280 in tax while adding on 145 grand of extra income tax free benefits to increase that total estate value to 425 000. now let's say you were in a fixed annuity of three and a half uh on this and you wanted to do a three and a half percent solution well fine lower the premium you can do the same type of deal if you wanted to keep that principle intact or however you want to do it but still i mean the powerful thing is that that extra life insurance you can take just from taking basically the interest only or required minimum distribution off of a client's account and with this not that you guys care but uh the agent made uh almost uh 5 400 bucks of commission in the first year just by helping them out with that taking that interest off of the client's account recap but uh let's look at this long-term care insurance alternative now i've done webinars in the past and we have one that's archived on our website talking about long-term care hybrids where we're getting a lot of these products in more detail but let's just look at it from this capital transfer perspective here today and these all are going to be archived including this uh one on our website at olsongroup.com so this is one case where we had a 72 year old widow that wanted long-term care protection but didn't want to purchase traditional long-term care insurance this agent came to me he presented a couple different long-term care insurance quotes even though she was in decent health just basically had some high blood pressure she wasn't on board with paying this couple grand a year in long-term care insurance premiums here to buy that but still was worried because she is a widow doesn't have anybody else to help her out with this um uh you know to to pay for those costs you know to find a way to do that instead of just out of her own pocket and she had 150 grand set aside she and her husband for the children and grandchildren you know in cash and investments so we saw that that was there and and you know said hey that's great that you have 150 grand set aside but what's going to happen if you do uh need help with long-term care costs which can be very expensive you're gonna have to dig through that 150 grand they have set aside for them isn't that true she agreed so what we did was we moved that 150 000 into the sagittacore fixed index single premium whole life contract that has the chronic illness writer so right away we first move this turn this 150 grand into 255 000 of guaranteed tax-free death benefit for the children and grandchildren instead of just that 150 grand in cash and investments but also if she gets sick now she can take almost 7 000 per month tax-free off of this death benefit to help pay for these long-term care costs for up to 33 months here and so she liked it because it wasn't a use it or losing scenario hey if i don't get sick now i've got 255 grand of tax free dollars to pass to my kids and grandkids versus the 150 and i've got a larger pot of money to draw off of for long-term care if i do get sick so once again we solve the needs from both of those angles and she did the deal all right well let's just recap what we talked about here what are we doing with capital transfer we're increasing the total state value we're uh we we're getting an income tax-free death benefit which you can't get for many things we're avoiding the annuity tax time bomb that's great when you build up with all those tax deferred uh growth but you know some you have to pay sooner or later we can help use these products to recover market losses for the heirs we can rescue uh poor performing variable annuities and fixed annuities and also provide uh long-term care insurance alternative protection that's not a use it or lose it type of situation all right well i would like to thank everybody for joining us here um now if you have questions i think uh you know on the go to webinar um deal there you will want to um plug in uh put the question sign up and i can click on you and it will unmute i hope i stated that correctly