Buying life insurance should not be a one-time event. Your clients’ lives are always changing, and their financial needs continually change as well. That’s why the value of doing regular reviews of your clients’ existing life insurance cannot be underestimated. You may uncover a change in their life insurance needs that when addressed could save your clients money and/or provide them with enhanced benefits, as well as generate additional revenue for your practice.

Alpha JC, an advisor out of Ohio, recently did a policy review for an existing client with a $5M life insurance policy (guaranteed to age 95 with annual premiums of $133K). The design of the existing policy did not really allow for any cash accumulation.

After working with Antoine Polite, VP of Life Insurance, Alpha JC proposed a new life insurance policy—also for $5M in death benefit guaranteed to age 95, but it would save his client $6K a year in premium. In addition, the new policy has the potential to earn significant cash accumulation, upwards of $400K around year 15.

By taking the time to review the current life insurance policy, Alpha JC was able to offer his client a savings of $6K a year on her premiums, additional value for her money and he earned $150K in commission in the process.
Did you know that you have access to multiple sales tools to help you with your policy review process on iAdvisor—including seminar slides, a call to action letter to send to your existing clients and a full consumer brochure with fact-finding and inforce illustration request forms? Give your Life VP a call today to talk about how you can effectively incorporate life insurance policy reviews into your 2013 business plan!

Keeping That New Year’s Resolution Can Save Your Clients Big Bucks!
It’s almost time to make our New Year’s resolutions once again! Millions of people will resolve to lose weight, exercise more, or quit smoking. Unfortunately, a vast majority of those resolutions will be abandoned before January 2013 is over. Sometimes people need a little extra push to help keep them motivated, and sometimes that motivator is money!

Did you know that keeping the resolution of quitting smoking can save your clients money on their life insurance premiums? Several insurance companies allow clients who were issued a policy with a tobacco rating to reapply for non-tobacco rates after being tobacco-free for 12 months.¹ John Hancock’s Quit Smoking Incentive offers a different twist.

Let’s say, for instance, you have a client who is a cigarette smoker and qualifies for preferred smoker or standard smoker rates. If they have already determined that they are going to quit smoking, John Hancock will issue a policy with standard non-smoker cost-of-insurance (COI) rates for the first three years allowing your clients to pay lower premiums on both UL and VUL products. If the insured then provides satisfactory evidence that he/she did in fact quit smoking for at least 12 months within those first three years, they will be permanently re-classified as a standard non-smoker—with no additional underwriting!

However, if the client continues to smoke after those first three years are up, the premiums in year four will jump to the much higher smoker rates. The incentive to avoid that significant premium hike might work for your clients who are certain of their ability to stop smoking. What about those who aren’t as confident they will be able to quit? For them, the better option may be to pay the smoker premium initially and have the opportunity to reapply for the lower non-smoker rates in year four or beyond.

Quitting smoking is both an admirable and difficult task. Individuals who accomplish it should be rewarded, and now you can help make that happens with the ability to offer them more affordable life insurance—either now or in the future.

¹Requirements to reapply for non-tobacco rates after policy issue vary by insurance company. Please call your Life VP for specific details.
For Financial Professional Use Only.

Insurance policies and/or associated riders and features may not be available in all states.

Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595 and securities offered through John Hancock Distributors LLC through other broker/dealers that have a selling agreement with John Hancock Distributors LLC, 197 Clarendon Street, Boston, MA 02116.





Answers to Your Most Frequent Tax Questions about Chronic Illness Riders on Life InsuranceYou’ve heard us talking about the benefits of chronic illness or LTC riders for several years now. However, what doesn’t get discussed very often is how the benefits paid from those riders are treated as far as taxes are concerned.

The attached edition of Life Live, the monthly newsletter from Advanced Underwriting Consultants, contains a Frequently Asked Questions section which provides answers to several common questions regarding the taxation of chronic illness rider benefits, depending on the ownership structure of the life insurance policy. 

If you have additional questions regarding the features of chronic illness or LTC riders, or the taxation of benefit payments, please contact your Life VP.





Please review the new business end-of-year processing deadlines for the majority of our top insurance companies. For further details on how these deadlines may impact your pending business, or the deadlines for companies not listed, please visit the company website or give your Life Case Manager a call.

I want to start off by saying thank you for making 2012 and incredible year. In a year that was filled with talks of recession and uncertainty of our country’s financial future, we still saw amazing growth and that is thanks to YOU, our advisors! We truly appreciate that you have placed your trust in us as we work with you to provide the best life insurance solutions for your clients.

Another big thank you goes to the entire staff of the Life Department. They have worked hard day in and day out to ensure that your cases are issued as quickly as possible, and with the best rates possible. The submitted case load nearly doubled from 2011, so this was no easy task. We are continuing to increase our staff going into 2013 in order to keep our service levels at the high standard that you expect from Advisors Excel. It’s going to be an exciting year!

Looking back on 2012, the thing I am most excited about was the variety of life sales that we saw. Not surprisingly, we saw a lot of wealth transfer sales using the Legacy Optimizer presentation. This strategy continues to be the “bread and butter” of the industry simply because the need is so great, and it is easy to find the sale in your existing client base. We also saw a huge increases cash value insurance sales using IUL, premium finance, and some monster Ultimate Gift cases, just to name a few. This wide array of successful cases just goes to show that your AE Life team can handle it all- from the basic to the highly advanced.

I am looking forward to 2013 and all the success that it will bring to your businesses. From all of us at AE Life, I wish you all a Happy Holiday and a wonderful New Year!