Untitled Document

BUI Brokerage Briefs

We are very excited to provide this special edition of the BUI Brokerage Briefs dedicated solely to BUI's most exciting marketing concept, Performance Evaluation. You are receiving this communication because of your business relationship with BUI or due to your registration as a BUI website user. Previous editions are archived at www.brokerageunlimited.com.

We hope you find this material especially valuable and useful in your everyday practice.

LATEST CARRIER & PRODUCT NEWS

You may note below a number of rate and product changes being announced by carriers. Nearly every carrier has or will adjust their portfolio in 2009. These changes are primarily a result of the current global economic turmoil, and are the carrier's way of protecting it's margins on these products.

It is very important for you and your clients not to misread these changes as a reaction to any concern with respect to the carrier's solvency. All BUI carriers continue to hold acceptable ratings from the major rating firms. Click for latest Carrier Ratings Summary

AXA Equitable:

AXA has seriously liberalized their underwriting guidelines with respect to foreign travel. Travel restrictions to Israel and India have been eased. Your client may travel for up to 12 weeks to countries on AXA's Class A, B, and C lists. These lists include countries such as Bahrain, UAE, Kuwait, Libya, Oman, Syria, Egypt, and El Salvador.

All preferred classes are now available for both permanent and term plans for face amounts of up to $10 million. Even travel to countries on the Class D list is allowed for up to 4 weeks.

Contact Bob Halsted,
(rhalsted@brokerageunlimited.com) BUI's Chief Underwriter for details on these lists.

Banner:

Banner has announced a rate change for their term plans effective immediately. The rates have already been updated on the BUI web site term spreadsheet program. Note that Banner has also adjusted commissions on their term products. Please speak with a BUI Marketing Representative for details on these changes.

Genworth:

As part of Genworth's effort to improve their underwriting process and service, they are reducing their APS ordering practices in several areas effective immediately.

For example, Hypertension cases will no longer automatically require an APS. For Nonsmokers ages 55 and younger for face amounts of $1 million and under where the hypertension is controlled, an APS will not be automatically required. However, and underwriter may use discretion in requesting an APS if circumstances warrant.

ING Companies:

Term Low Band is Back! Effective June 15th, ING reintroduces its low band on ING TermSmart. Applications for face amounts between $100,000 to $199,999 will be accepted. And the best news is the $65 policy fee is fully commissionable!

Effective 8/1/09, ING is suspending sales of ING Survivor UL (SUL-GDB) until futher notice.

John Hancock:
The second-to-die Protection SUL-G continues to compare favorably as other carriers reprice their survivor products.  This product is especially competitive when the case involves a 1035 exchange. Send quote requests to marketing@brokerageunlimited.com.

Lincoln Benefit Life:

In uncertain times, large transactions can be more difficult to place. Those clients with 1035 exchanges will be especially interested in hearing about the LBL "Liquidity Guarantee Rider" available on Legacy Secure UL and Legacy Secure SL products.

This unique feature guarantees a return of all or a significant portion of the premiums paid if they choose to surrender the policy anytime after the surrender charge period regardless of the cash surrender value. Contact BUI for more information about this valuable feature.

Prudential LTC:

Last November Prudential communicated their intent to file for a premium rate increase on their first generation "ILTC1" long-term care insurance policies with the appropriate state insurance regulators.

Prudential wanted you to be aware that, as they conclude the filing process with the states, Prudential has sent out the first notice letters to policyholders in the states of Georgia, Iowa, Indiana, Missouri, Montana, New Hampshire, Pennsylvania, and Tennessee. Copies of the policyholder communication can be obtained from BUI's Director of Long Term Care, Roger Lintner (rlintner@brokerageunlimited.com.

Sun Financial:

BUI is pleased to welcome Sun Financial to its roster of carriers. Sun has a very strong portfolio of guaranteed universal life products for single and joint life situations. Sun's Executive Life product is also a very competitive product in business situations to fund non-qualified benefits, with simplified and guaranteed issue available.

Another very important value that Sun brings is very favorable ratings. Sun enjoys an A.M. Best rating of A+ (Superior), a S&P Rating of AA (Very Strong), and a Moody's Rating of Aa3 (Excellent).

United of Omaha:

Introduced a new Fit underwriting credit program. This program helps your clients who would normally receive a rating, get a better rate classification so long as they

meet certain medical and lifestyle criteria. The program applies to all term and universal life products. Talk to BUI's Chief Underwriter, Bob Halsted, to see if your client Fits!

(rhalsted@brokerageunlimited.com

West Coast Life:

Effective June 15, 2009, adjustments will be made to the Focus Term Series product. The annual policy fee will increase on the $250k and $1 million rate bands to $60 for 10-year and 15-year durations. The policy fee is commissionable only for face amounts below $250k.

Focus Term Series rates will generally increase in most cells and rate bands. These adjustments are in line with other carriers actions in response to current economic conditions. Contact your New Business Consultant for transition details.

----------------------------------

As always, details may be obtained from the BUI Marketing Team by email.

PERFORMANCE EVALUATION:

AN ESSENTIAL TOOL FOR WORKING WITH YOUR CENTERS OF INFLUENCE

Building solid professional relationships with attorneys and accountants can be a difficult and frustrating process for financial advisors. There's an all too common story where the advisor meets a new attorney or accountant and exits the initial meeting with a sense of excitement. Soon after the advisor refers a client to the professional in an attempt to initiate a successful relationship. Unfortunately, time passes and the advisor receives no contact from the other professional, not even a simple "thank you".

Still hopeful, the advisor tries again and refers another client to the professional. Again, there is no acknowledgement or reciprocation from the professional. By now the frustrated advisor gives up on that professional, and may even give up altogether trying to develop centers of influence with legal and accounting professionals.

High-quality relationships with centers of influence must be mutually beneficial. For the advisor to benefit, the other professional must see value in the services the advisor provides. This is where a disconnect often exists. Some professionals view the advisor's role as an insurance or financial product sales person rather than a trusted advisor. They fail to see value or differentiation in what the advisor brings to the table. In our experience, Performance Evaluation is a sure way for an advisor to demonstrate to other professionals the immense value they can offer.

Attorneys and accountants must be educated to understand the potential risks associated with under performing life insurance policies owned by their clients. Once they understand these risks and the potential liability for failing to encourage a review of their client's life insurance portfolio, the value of a relationship with an advisor who offers the Performance Evaluation process becomes apparent.

Consider also that many attorneys and accountants serve as trustee of their client's irrevocable life insurance trusts (ILIT's). A trustee has a fiduciary responsibility to manage trust assets in the best interest of the beneficiaries of the trust. With this responsibility comes significant exposure to personal liability if the trust assets are not managed properly. Attorneys and accountants who are trustees should be especially interested in partnering with financial and insurance advisors who offer the Performance Evaluation process. Estate planning attorneys should contact the trustees of every ILIT the attorney drafted to initiate a Performance Evaluation of the policies owned by those trusts. If the trustee is a family member, the professional is not only protecting their client, but their client's family members from significant liability as failure to assess the performance of an in force life insurance policy greatly increases the likelihood the trustee will be sued by the beneficiaries. Many of these suits are due to the payment (or lack thereof) of a death benefit, so the dollar amounts can be staggering.

Marketing the Performance Evaluation process to professional centers of influence offers the financial and insurance advisor an opportunity to bring momentous value to the professional relationship. Don't miss this opportunity to boost your business. For assistance in presenting the Performance Evaluation process to other professionals, please contact BUI's advanced planning attorney, Brian Seigel, JD. (bseigel@brokerageunlimited.com)