Blog #138: The Quickest Way To Learn InsMark

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Bob Ritter's Blog #138: The Quickest Way To Learn InsMark

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Note from Bob:  The new concepts presented in this Blog are the brainchild of Don Prehn, a Board Member and Senior Advisor for InsMark.  Don serves as one of the editors of this Blog and provides guidance on the overall web-based client service and education and sales strategies for InsMark’s suite of software products.

DO WE HAVE A TREAT FOR YOU!

We frequently get one of the following questions from our InsMark software users or Blog readers:

  • “I haven’t used InsMark for a while . . . can you help me learn to do more things with the software?”
  • “Can you help me learn how to create a presentation that was shown in one of the Blogs?”
  • “I have producers in my agency and/or staff that need to learn how to use the InsMark software.  What’s the best way to proceed?”

For answers to these questions, just click on the image above (the “dog reading the book”).  This will take you to a web page entitled “The Quickest Way To Learn InsMark”.  Once there, as you scroll down a little, you will also see a video with the caption (“Easy As 1, 2, 3”).  Watch this video! It will explain the powerful new training resources we have that will give you the “keys to the safe” on how to use InsMark like a pro for virtually any situation.

As you watch the “Easy As 1, 2, 3” video noted above, it also explains the importance of using InsMark’s Digital Workbook files which are the source of all InsMark presentations (discussed in the instructional video below).  That said, we strongly encourage you to watch the “Easy As 1, 2, 3” video first before viewing the one below.

 

This Blog #138 has no InsMark presentations or accompanying Workbook files.

 

We’ve tested “The Quickest Way To Learn InsMark” with several of our individual and independent marketing organization licensees, and the feedback has been tremendous — and uniformly positive.  If you’ll spend a few minutes watching the videos (described above), you’ll see how this new process literally takes all of the guesswork out of creating customized InsMark presentations for your clients.

We’re thrilled to provide this new sales and training resource and hope you find it useful.

(Click here for Blog Archive)
(Click here for Blog Index)

Licensing InsMark Systems

To license any of the InsMark software products, visit our Product Center or contact Julie Nayeri at Julien@insmark.com or 888-InsMark (467-6275).  Institutional inquiries should be directed to David Grant, Senior Vice President – Sales, at dag@insmark.com or (925) 543-0513.

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Testimonials

“InsMark has created without question the best suite of software for our industry that has ever existed. I personally have been using their software for almost 30 years, and it changed my career.  This unique and user friendly software will add many thousands to your income for as long as you’re in business. InsMark makes me look good, and it will you as well.”
Simon Singer, CFP®, CAP®, RFC®, Past President International Forum, InsMark Platinum Power Producer®, Encino, CA

“InsMark is the Picasso of the financial services world — their marketing savvy never fails to amaze me.”
Doug Peete, Past President, Top of the Table, InsMark Silver Power Producer®, Overland Park, KS

“I really thought I knew all the sales techniques that affect my business, but I do now, thanks to InsMark.”
Sam Keck, MBA, CLU, CFP, LUTCF, InsMark Platinum Power Producer®, Financial Planner, Denver, CO

“For three decades, InsMark software has been the leader in presentation software for life insurance.  Nothing holds a candle to it.  If you are in the retirement, estate or charitable planning arena, this is the easiest AND most powerful software on the planet.  I highly recommend it.”
Scott Keffer, Advisor Coach, Best Selling Author, Creator of Double Your Affluent Clients®, Pittsburgh, PA

 

Important Note:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

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More Recent Blogs:

Blog #137: More On “The Best Policy for My Client”

Blog #136: Taking Care of a Rainmaker

Blog #135: Merging College and Retirement Planning

Blog #134: Best Strategy for an IRA (Part 2 of 2)

Blog #133: Best Strategy for an IRA (Part 1 of 2)

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #110: Impact of New Regulations on Indexed Universal Life (Part 1 of 2)

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using the InsMark Illustration System and Life Plan System.)

Getting Started with InsMark Training Video

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Editor’s Note:  Blog #110 involves a revision of Blog #83:  Chrystal Clear Alternatives, in which the presentation for Laura Lake Johnson is changed to illustrate the effect of the new regulations pertaining to Indexed Universal Life scheduled for implementation in September 2015.

Analysis of the regulations indicates two main features:

  • The maximum illustrated rate will be slightly less than 7.0%.  Blog #110 uses an illustrated rate of 6.85%.
  • The spread between the interest rate credited to policy values and the loan interest rate on participating loans borrowed from the policy is reduced.

Please understand that these restrictions apply only to illustrations of IUL.  The performance of in-force IUL will not be restricted in a similar manner.

Apparently, participating whole life insurance issued by the mutual life insurance companies has taken a serious beating from IUL, and the new regulations were promoted by them as a competitive move.  The IUL carriers appear to have responded forcefully as the results shown below are remarkable.

Laura Lake Johnson, age 35, is a successful landscape painter specializing in seascapes in watercolor and oil.  She has a four-year-old daughter, Caroline.

As a self-employed artist, retirement planning is solely Laura’s responsibility, and she is reviewing a ledger for a max-funded Indexed Universal Life (“IUL”) policy illustrated at 6.85%.  It includes a substantial $1,000,000 death benefit to help care for Caroline should anything happen to Laura.  It also illustrates $2,179,446 of total, after tax, retirement cash flow for Laura from her age 65 to age 95.  Premiums are scheduled at $23,802 annually for five years.

Note:  In all the examples in this Blog, Laura’s after tax retirement cash flow from the IUL policy consists of participating policy loans in which policy cash values securing loans continue to participate in the credited interest rate.

As is typically the case, her Basic Illustration from the insurance company is 20+ pages long, and although it includes very valuable information, it is an appalling presentation piece.  What can you add to this tedious document that not only brightens the presentation but makes it more easily understood by Laura?

Illustration of Values is one of the most straightforward reports from the InsMark Illustration System.  By including it as a forerunner to the Basic Illustration, communication to Laura can be significantly improved.

Below is the key graphic from Laura’s Illustration of Values:

Illustration of Values

blog-110-img-1-Illustration-of-Values

Click here to review the entire illustration from Illustration of Values.

Do you want it even simpler?  The most uncomplicated of all reports is Life Plan from the InsMark Illustration System.

Below is the key graphic from Laura’s Life Plan illustration:

Life Plan

blog-110-img-2-Life-Plan-illustration

Click here to review the entire illustration from Life Plan.

A Little More Complex

For those who prefer comparing alternative investments to the values of the life insurance, using our popular Various Financial Alternatives from the InsMark Illustration System produces a compelling, although more complex, presentation.  You can choose from 21 different alternative investments or customize your own.

For Laura, we compared IUL illustrated at 6.85% with a Taxable Account and a Tax Deferred Account, both at 6.85%, and assumed a growth rate for the Equity Account of the same 6.85%.  The indexes available for IUL generally don’t credit a dividend.  The current S&P 500 dividend yield is 1.99% so let’s round that to a 2.00% dividend and add that to the Equity Account growth rate for a total yield of 8.85%, 200 basis points greater than the IUL.

We matched the after tax cash flow from the IUL with after cash flow from each of the alternatives.  (None but the IUL lasted for the entire duration of the illustration.)

Below is the key graphic from Laura’s Various Financial Alternatives illustration:

Various Financial Alternatives

blog-110-img-3-Various-Financial-Alternatives-illustration

Click here to review the entire illustration from Various Financial Alternatives.

It is remarkable that the best alternative shown against the IUL is the Equity Account which terminates at Laura’s age 78 — way too early for retirement cash flow to cease.  Long-range the IUL produces almost 3 times as much after tax retirement cash flow even though the Equity Account is illustrated at 200 basis points more yield.

The Equity Account requires a yield of 11.36% (including the 2.00% dividend) to match the results of the IUL illustrated at 6.85%. See Page 4 of the Various Financial Alternatives Illustration for details.

Note:  At first glance, the account values for the Tax Deferred Account in Column 3b on Pages 2 and 3 may look too low.  Be sure to review Pages 10 and 11 for clarification.

You may find the illustration from Various Financial Alternatives too busy with numbers.  In this event, I recommend Other Investments vs. Your Policy from the InsMark Illustration System which compares the life policy to your selection of just one of the alternative investments.  We selected the Equity Account with the same assumptions used in Various Financial Alternatives.

Below is the key graphic from Laura’s Other Investments vs. Your Policy illustration:

Equity Account vs. Indexed Universal Life

blog-110-img-4-Other-Investments-vs-Your-Policy-illustration

Click here to view the entire illustration from Other Investments vs. Your Policy.

Combination Illustrations

A good combination of illustrations couples Life Plan (for simplicity) with Various Financial Alternatives (for comparisons).  Click here to view it.

You can print combinations of illustrations by using the icon below that appears on the lower right of the Main Workbook Window.  (Be sure you have all the illustrations for the combination you want in the same workbook.)

blog-110-img-5-Workbook-new-preview-print

Conclusion

While InsMark has plenty of advanced illustration capacity, our comparative Supplemental Illustration formatting is what has made us so popular to so many.  I hope it proves useful to you.

I am not suggesting that you ignore Laura’s multiple-page Basic Illustration from the insurance company — only that you disregard it as your primary presentation tool.  It is complex because it serves too many masters: actuarial, legal, compliance, you — and finally, Laura.

Please understand that the purpose of InsMark is to augment the carrier’s Basic Illustration; however, our Supplemental Illustrations are not valid without this footnote (or some carrier-approved variation of it) appearing at the bottom of our numerical data:

This illustration assumes the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.  This illustration is not valid unless accompanied by a basic illustration from the issuing life insurance company.

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

New Zip File Downloaders
Watch the video.

Digital Workbook Files For This Blog

Blog110.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Joint Interviews

If you want or need help from a qualified producer for joint interviews with any InsMark illustration and are willing to share the case, email us at bob@robert-b-ritter-jr.com, and we will provide you with recommendations.

Testimonials:

“The reason I use InsMark products is because they are so good at explaining financial concepts to all three parties: 1) the producer trying to explain the idea; 2) the computer technician trying to illustrate it; 3) the customer trying to understand it.”
Rich Linsday, CLU, AEP, ChFC, InsMark Power Producer®, Top of the Table, International Forum, Pasadena, CA

“InsMark is the Picasso of the financial services world – their marketing savvy never fails to amaze me.”
Doug Peete, Past President, Top of the Table, InsMark Power Producer®, Overland Park, KS

“The InsMark software is indispensable to my entire planning process because it enables me to show my clients that inaction has a price tag.  I can’t afford to go without it!”
David McKnight, Author of The Power of Zero, InsMark Power Producer®, Grafton, WI

 

Important Note #1:  The hypothetical life insurance illustrations associated with this Blog assumes the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.  Actual illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

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More Recent Blogs:

Blog #109: The Key to Tax-Efficient Strategies in Retirement Planning

Blog #108: Profit Sharing Plan vs. Indexed Universal Life (Part 3 of 3)

Blog #107: Profit Sharing Plan vs. Indexed Universal Life (Part 2 of 3)

Blog #106: Profit Sharing Plan vs. Indexed Universal Life (Part 1 of 3)

Blog #105: Stretch, Charitable, Roth (Three Smart IRA Strategies)

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #49: More CheckMate Selling®

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(Presentations in this blog were created using the InsMark Illustration System and Life Plan System.)

Getting Started with InsMark Training Video

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Editor’s Note:  All the InsMark illustrations available in this Blog were prepared using the Jazz release (Version 17.0) of the InsMark Illustration System.  We think you’ll like the new features.  Click here if you would like to learn more about the new features of Jazz.

Someone asked me recently if it’s possible to explain all you need to know about the powerful mathematics of cash value life insurance in a simple illustration.  We have such an illustration called Life Plan located on the Personal Insurance tab of the InsMark Illustration System.

Below are the results with the Life Plan module using an Indexed Universal Life policy insuring Harvey Pierce, MD, age 45.  It is a $500,000 policy (increasing death benefit) with premiums of $23,717 for 20 years.  Participating policy loans are illustrated starting at age 65.

blog-49-summary-of-pre-retirement-and-retirement-years-image

Click here to view the entire Life Plan illustration.

Note:  Life Plan is also available in Spanish.

Life Plan produces a lot of information in just a few pages.  While it produces a concise analysis, it ignores one of the most fundamental components of a good life insurance presentation -- it lacks a comparison.  Almost everyone makes better decisions in a comparative environment, so let’s introduce some comparisons to go with it.

We’ll select one of our most popular modules, Various Financial Alternatives (“VFA”), and compare the Indexed Universal Life to a:

  • Tax Exempt Account @ 3.00%
  • Taxable Account @ 6.00%
  • Tax Deductible Retirement Plan @ 7.50%

Below is a graphic of the results from age 45 to 95:

blog-49-Various-Financial-Alternatives-image

Click here to view the entire VFA illustration.

We are edging into what we call CheckMate Sellingsample, i.e., anticipating a prospect’s objections before they are raised.  Various Financial Alternatives certainly helps in this regard.

The only remaining issue is likely “what about term insurance?”  So let’s add a comparison to term insurance and a side fund.  We’ll take the best of the alternatives, Tax Deductible Retirement Plan @ 7.50%, and couple it with $500,000 of 20-year level term insurance with an annual premium of $600, the kind of solution that Suze Orman prefers.  I can hear her now:

“Why would you pay almost $24,000 for something you could get for $600?”

This graphic tells you why:

blog-49-term-comparison-illustration-image

Click here to view the entire term comparison illustration.

Conclusion

Indexed Universal Life is a remarkable financial instrument.  The combination of Life Plan, Various Financial Alternatives, and a Term comparison make it irresistible for a prospect with the cash flow to acquire it.

Licensing

To license the InsMark Illustration System, contact Julie Nayeri at julien@insmark.com or 888-InsMark (467-6275).  Institutional inquiries should be directed to David Grant, Senior Vice President - Sales, at dag@insmark.com or 925-543-0513.

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

Digital Workbook Files For This Blog

Blog49.zip

Download all workbook files for all blogs

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

 

InsMark’s Referral Resources

If you would like assistance with an InsMark illustration, contact any of the Referral Resources listed below.  They are all highly skilled at running InsMark software and can help you using your choice of insurance company.  Mention my name when you talk to one of our Referral Resources as they have promised to take special care of my readers.

Joint Interviews

If you want or need help from a qualified producer for joint interviews with any InsMark illustration and are willing to share the case, email us at bob@robert-b-ritter-jr.com, and we will provide you with recommendations.

Testimonials:

I have been using InsMark since it was a C:> prompt back in the early 1980s.  The new Jazz release is the most exciting upgrade to the system I’ve seen in 28 years!  With unlimited options for customization, you can now be as creative as you want when producing illustrations.  I downloaded it last night, and used it successfully with my first appointment this morning.
Chris Jacob,  CFP, InsMark Power Producer, SFI-Cadeau,  St. Louis, MO.

"Life Plan demonstrates an illustration that simply depicts the benefits of the basic life insurance policy.  It is an ideal program for the package sale.  I still run into individuals with a basic need for life insurance and cash value accumulation vehicles who are under the level where more complex planning is needed and who are not yet in the mindset for retirement distribution planning.”
Mel Gross,  CLU, ChFC, MSFS,  Houston, TX

"InsMark’s Life Plan presentation provides a valuable tool for our agents in discussing retirement plans with their clients.  Its concise and to-the-point design makes the concept very easy to understand.  And, having it available in both Spanish and English has proven to be extremely useful."
Zerita Reynolds,  CLU, ChFC, FLMI, LLIF, REBC, RHU Director, Advanced Markets,  Aviva USA

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More Recent Blogs:

Blog #48: Dollars of Benefits for Pennies of Cost

Blog #47: Tom and Kristin’s Retirement Planning

Blog #46: Let’s Make Sure the Girls Go to College

Blog #45: Controlled Executive Bonus Plan for
Life Insurance and Disability Income
(Part 5 of “Valuing the Business”)

Blog #44: Alternate Golden Handcuffs for Tom Hamilton
(Part 4 of “Valuing the Business”)

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Robert B. Ritter, Jr. Blog Archive