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Simplified IUL Training with National Life Group (Ep. 209)
Think IUL's are confusing? Want to start selling IUL's fast, but don't know where to start? Unlock the secrets to mastering Indexed Universal Life (IUL) strategies in this exclusive training session! Join our expert host, Andrew Taylor, as he sits down with a representative from National Life Group (NLG) to dive deep into the ins and outs of their products. Whether you’re new to IULs or looking to refine your skills, this training provides insider knowledge into how these innovative policies work and how they can fit into your clients’ financial plans. Learn directly from the source, how to confidently present IUL solutions in a way that resonates with your audience.
To make this training even more powerful, two of the most experienced NLG producers, Nicolette McGannon and Tatiana Muchacho, share their proven techniques for simplifying IULs and closing more cases. These industry leaders reveal their best tips and tricks, including how they streamline the process, communicate the value of IULs, and maximize client satisfaction. If you want to grow your expertise and learn from the best, this is the video you can’t afford to miss. Watch now to elevate your IUL game and take your business to the next level!
Hello everybody, Thank you for joining us today. We have a special training on IULs. We have Devin Martin with us. Thank you for joining us. Thanks for having me. We have two agents. I'm going to let you guys introduce yourselves.
Speaker 2:Hi, I'm Nicolette.
Speaker 3:I'm Tatiana Muchachostain.
Speaker 1:And we asked you guys to come in because you write NLG and you have some tricks on keeping everything simple. Nicolette, can you share kind of what you've done in the industry and how you use NLG.
Speaker 2:Yeah, I use NLG. I really like to use them for IULs, where we're going to structure it to build cash value for a client. I like to use them for my younger clients who are in a lot better health, who are going to have it long term, and then I also really like to use them for term products too. I know we're not talking about that today, but I do really like their term because NLG has some of the best living benefits out of all the companies we work with.
Speaker 1:And how does the term work?
Speaker 2:The term fully underwritten term. I also like for the term and you can kind of go into this a little bit more I like for my clients who are healthy enough to qualify for their term that at the end of it they get the option to convert it to a whole life. So it gives them a little bit more flexibility if they're looking for a cheaper option when they're younger and then gives them that option like if they're not worried about cash value where they can extend that later on in their life for a smaller whole life and not have to worry about qualifying again.
Speaker 1:That's legit, and how do you use it?
Speaker 3:I use it as well, especially for accelerating mortgages. So if I have a client that ideally wants to pay their mortgage in 20 years rather than 30 years, I figure out the IUL that way so I can fix it. So in 20 years they have the amount that they are looking for.
Speaker 1:So if someone's looking to pay their home off, what you do is you say, hey, buy this policy, it'll cover you if you were to pass away. Or you can also have living benefits if you get cancer, heart attack, stroke, chronic or critically ill. It'll also help pay the mortgage and if you don't use it, you can take the cash value and pay off your home in 20 years instead of 30 years. Is that right?
Speaker 3:Yes.
Speaker 1:And that's probably, is it this? I wonder if it's similar to the same amount of money as just applying that extra money to the mortgage, Like if it, if it kind of lines up with that.
Speaker 3:Yeah. So especially if I have clients that say, tatiana, I'm interested in you know I'm sending extra $100 a month to my mortgage because I want to, you know, go that to go to my principal. I said, ok, so what if I can show you a way that is going to guarantee, by that point, you know, in 20 years that you'll have X amount of funds available there for you. And so then I asked them several questions, because I'll do like an amortization schedule that you'll have X amount of funds available there for you. And so then I ask them several questions, because I'll do like an amortization schedule to see what percentage they're paying currently in their mortgage.
Speaker 1:How do you do the amortization schedule?
Speaker 3:So I go online and just put in the information, put in the percentage, put in the amount that they're paying monthly plus what they owe in the mortgage, and then I see in 20 years how much they would have had to pay okay. So then I'll calculate that, show them you know, we need $200,000 in year 20 in order to pay the mortgage. And then I'll also show them if you kept it going for the 30 years, this is how much you're really paying and it's like double their home. They're like what? And once I show them that they're like okay, I definitely want to do this.
Speaker 1:So it's almost like I love selling stuff. That's a no-brainer, like it doesn't make sense not to do that for me. And then, especially if someone also is worried, which every human being usually is worried if something happened to me, does my family have a house to live in? Are they going to struggle? What's going to happen? So to me, that's a no-brainer, it's a win-win.
Speaker 3:Yeah, happen. So to me that's a no-brainer, it's a win-win, yeah, and so I also tell them, you know, because they go oh, so is my family going to receive both if I die? Like the money that I have plus the death benefit?
Speaker 1:I'm like, no, they're going to receive one or the other, obviously, whichever one's higher yeah, and then if you guys don't know, devin devin, when did we do that last podcast? How long ago was that? A little over a year ago, dang. Was that A little over a year ago, dang? Time flies. So a little over a year ago we did. It's on YouTube. We can link it in the comments.
Speaker 1:But we did a live illustration of selling myself policies for my kids and I think it was pretty amazing what we discovered, which was it doesn't make sense not to do it, yep. And if you guys want to go, should I do this for my kids? Should I do this for my clients' kids? Go watch this video on our channel of literally live us going through and I was asking crazy questions like what's the worst case scenario? What if the market never makes $1? What happens? Asking crazy questions like what's the worst case scenario? Like what if the market never makes one dollar? What happens? And on the kids policies, even if the market never made one dollar, then I still would get my money back at like 20 years or something like that. You could go look at the exact numbers. We also discovered that nlg sold a policy to someone on the titanic. Did you guys know that?
Speaker 1:yes and a bunch of other crazy history. Because how long you guys been around? 176 years, 176 years. Now what if somebody says because I recently hired an agent and he went on YouTube and saw how bad IULs were based off of people's opinions and I was like, yeah, but dude, that's if they're not structured properly, people's opinions. And I was like, yeah, but dude, that's if they're not structured properly. And he's like, well, sometimes they don't perform like they're, you know, sold on. And then nlg publishes the way they perform right yep, we're one of the few.
Speaker 4:We publish our historical interest rates inside of our website yeah, so you could go look.
Speaker 1:So if you say they don't, well, they do, because you can go see for yourself, which is legit. If you're watching this, we're also going to go over today. When should you write a simplified issue plan, iul versus NLG? Because we don't want to get declines, we don't want to send business that's not going to go through. The agent doesn't get paid, the customer doesn't get help, they get fed up and then we have a problem. So part of becoming a good agent is number one, learning how to sell. Number two, learning how to issue the business, and then number three, learning how to keep the business. So we're going to talk a little bit about all three of those today. Can we pull up this amortization schedule and do a comparison? I think that'd be a pretty cool exercise. Like what website do you use? Because no, we're going to pull it up right here yeah, but let me tell you what it is okay, and let's do a uh like fake customer.
Speaker 1:Let's do nicolette, nicolette. How old are you?
Speaker 2:28. This is how I learned nlg. I did an iul myself. That's how I figured it out.
Speaker 1:That's a great way to learn. Okay, so let's do. 28, just bought a home and you're a dog mom, so that dog needs.
Speaker 2:Everything the world.
Speaker 1:The world, and let's see what this does.
Speaker 4:Do you have a specific website?
Speaker 3:iGoCalculatornet.
Speaker 1:Perfect, okay. So if you're selling life insurance, a common thing is to sell it as a mortgage protection product which would pay off someone's home if they were to die and someone that might not be interested in life insurance. When you package it that way, they're like yeah, I would be interested in that, because what's the most important thing for my family? For them to have a roof over their head.
Speaker 3:Biggest asset.
Speaker 1:And biggest asset, all right. So, drew, are you videoing this? Okay, all right. So let's say, nicolette just bought a 300, 200 is way too low. There's not a lot of houses for 200. Let's say Nicolette just bought a $400,000 house and she got a 6% interest rate. Let's pull up the amortization.
Speaker 3:But put the loan for 30 years.
Speaker 1:But put the loan for 30 years. But put the loan for 30 years Suspenseful.
Speaker 3:I know it worked Okay. So then what I do is I highlight that chart all the way down to the 30, okay? And then I export it to excel okay, devin, you're good at excel, right?
Speaker 1:you want to do this or no? You're not confident in that? I think she'd be better than I would okay, let's just, let's just tell them the concept of this okay.
Speaker 3:So you see, you see there, right, go down all the way to 20, right, and you see that by year 20, it's going to need $216,000, okay, in order to pay the loan, okay, to pay the mortgage. So then I create the IUL that in 20 years, is going to have a little bit more than that. And then I can show them okay, if I added the rest, I'd show them the amount of interest that they would still be paying. And then they're like oh, wow.
Speaker 1:So can we run an IUL for Nicolette and let's see if we can get these numbers around there, what it would actually cost. How much are these premiums usually, Tatiana?
Speaker 3:It depends on the home. I mean, I've had some clients who are $500. I have had others that are $200. But they are already sending $100 or $200 to their mortgage.
Speaker 1:So you're just reallocating the money. So when I used to sell these, my one of the big questions I would ask is I would just go. Nicola, how much money do you save per month? Five hundred dollars and when do you plan on using the five hundred dollars?
Speaker 2:in an emergency okay.
Speaker 1:So if we could reallocate part of that five hundred dollars into this program which is going to do all these three things, would that make sense for you? Because you're saving, you get the insurance, it's not costing you any more money per month, you get the living benefits, you get the potential upside of the market if it performs well. Does that make sense? Yeah, and then I'm just finding money. I'm not costing them more money. Same thing you're doing. Yep, yeah.
Speaker 4:At the mercy of the Wi-Fi right now. Yeah.
Speaker 3:And sometimes if I have a couple, so then I'll divide it up in two. So if it's a husband and wife, then I say, okay, we'll figure it out, we'll get one for each of you and divide it up and then divide it up.
Speaker 1:Yeah, that way it's equal on each one of them all right, try this devon. Go to to this Wi-Fi right here.
Speaker 4:And then Send him the agent's Wi-Fi into your text message, if you want to try to connect to that one? Yeah, let me try this one first. Yeah, that's the password.
Speaker 1:Yeah, Sorry guys, we got too many people in here on Wi-Fi.
Speaker 4:It's loaded, let's give this. Oh yeah, okay.
Speaker 1:All right. In the meantime, let's go over some more training topics. So as far as issuing business, because you had mentioned, it's important to know the right like put the right people in or you're going to get declines. What advice do you have on that and when would you do like a simplified Mutual of Omaha or AmeriCo versus NLG Mutual of Omaha?
Speaker 2:or AmeriCo versus NLG. I use NLG. I'm very thorough in my needs analysis, asking medical questions exactly what medications they take. If I'm not sure if I could get them approved with NLG or not, I'll typically call or use like. I'll read through their underwriting guides. But usually people that are either younger, in good health, not taking a ton of medication, is when I'll go. Nlg Simplified issue, iol with mutual or with AmeriCo. I'm usually using those just as more like a permanent death benefit. I'm not really emphasizing crazy cash value with those products. I don't think that's really what they're designed to do and they'll accept people a little bit more lenient in terms of health. I think NLG I mean you guys are pretty strict in terms of health stuff- they're better.
Speaker 2:They're better.
Speaker 1:They got better.
Speaker 2:They got better. Okay, Because I'm like I know I struggle to get people approved.
Speaker 3:Yeah, yeah, yeah.
Speaker 2:I also like with NLG how they have the rate classes, so it gives a client a chance to get approved for a death benefit. Where they're paying less for the death benefit, more money of more of their money can go towards the cash value, um, or if they need a higher coverage amount than 300,000 or a hundred thousand, that you can only do with those simplified IULs. Um, I think more for NLG where I go for that, as if somebody really is focused on building cash value.
Speaker 2:I think it's the best place you can go for that.
Speaker 1:And when you run the illustration, how do you keep it simple?
Speaker 2:Minimum death benefit. Maximum cash value.
Speaker 1:And that pays the agent less.
Speaker 2:But it's better for the client.
Speaker 1:So when people look on YouTube and they see a horror story, it could have been designed where the agent got a big commission, they didn't put max cash value and the customer the policy ends up lapsing right and that's what could happen.
Speaker 2:Yeah.
Speaker 1:But you always do minimum max cash value.
Speaker 2:I like NLG because the illustration tool is really simple. So if you don't really know what you're doing, like this is how I learned how to do NLG. Is I just started with minimum death benefit, maximum cash value, or the little bubble where you can do death benefit protection, and I just would look between the two and look at the quick view illustration to see what that cash value would be. Most of the time, the minimum death benefit, maximum cash value, is what people are looking for.
Speaker 1:Yeah, now let's talk about how long have you guys been doing this for.
Speaker 2:Insurance Four years, three years.
Speaker 1:So want to hear a crazy story about her husband. At one of the events three, four years ago, he came up to me and he was like dude, did he lose his job? Is that what happened?
Speaker 3:Yeah, well, we had an internet company that he used to sell through, and once COVID and everything hit gone.
Speaker 1:He was like dude, I lost everything. And he was like but I want to take a picture with you when I make it big. I want to take a picture with you when I make it big. I want to take a picture with you. I'm going to send this picture to you. And then he later ended up recruiting her, his wife and his son, and she's an animal, and now they all sell insurance. And he recruited you from was it pharmaceutical industry?
Speaker 3:Yeah.
Speaker 1:Yeah, but it was just, he said a lot. He didn't just say like he said, his situation was really bad and he was like I'm going to make it and you know, let's take this photo. I thought that was cool.
Speaker 3:Yeah.
Speaker 1:Every time I see him too, he's like remember I told you.
Speaker 3:I told you I was going to walk that stage.
Speaker 1:Yeah, it was awesome. Yeah, yeah, all right, so I think we almost got this going.
Speaker 4:I don't think so.
Speaker 3:I was going to say that I use NLG a lot as well with non-US clients, so if they're not US resident or US citizen, that really takes them out of a lot of other areas. And I feel very comfortable with NLG when it comes with the IULs and the terms for foreigners.
Speaker 1:Oh yeah, you want to tell everybody about that.
Speaker 4:Yeah, and just to kind of unpack everything. So it's fully underwritten. But that doesn't necessarily mean that we're getting examined, labs and everything. 97% of our business issued without needing all of that last year. So simplified versus fully underwritten it's changed. Now People here fully underwritten and assume that you need a pyramid and you don't. So, with that said, we have high non-medical guidelines, but we're also very liberal when it comes to the underwriting process and, as you were just talking about, you don't need a social security number to get a policy with us. You can have a tax identification number. You can even live outside of the United States and potentially get a policy, as long as you pay taxes, have property here, some sort of nexus the more of a nexus you have the better. But we're huge in the foreign national space.
Speaker 1:Yeah, so a lot of people. If they don't have a social, you guys can help them.
Speaker 4:Correct.
Speaker 1:I asked a question yesterday, though. What if you were saying that someone has to be in the country for six months?
Speaker 3:Somebody has to be in the States for eight months, if I'm not mistaken, in order.
Speaker 4:If you live here eight months or longer, you're considered a United States citizen. If you live outside eight months or longer, you're considered a United States citizen. If you live outside of the country longer than four months, you're underwritten as a foreign national.
Speaker 1:But you can still apply, you can still apply for a visa.
Speaker 4:What if I?
Speaker 1:don't have a TIN. I don't even have a driver's license.
Speaker 4:Case-by-case scenario that won't work in your favor, but very flexible. There's people that don't have a TIN but pay taxes, work at, maybe, a fast food restaurant. Whatever the case may be, it's just a case-by-case scenario, but the longer you live in the country in that scenario, the better.
Speaker 1:So if you don't have an I-10, but you have a job, you do other things and you can prove some of this stuff, you can still qualify and get this.
Speaker 4:Yeah, not to be too complex, but there's what's called a foreign tax identification number and that's a slam dunk as well, Got it?
Speaker 1:Sweet. So, yeah, there's a lot of people that need insurance that don't have a social security number.
Speaker 4:I'd say 35% of our business is multicultural as well.
Speaker 1:That's legit. Okay, so maybe we will not be able to run this illustration, that's okay. This is going to be your homework, okay, if you're watching this. So, if you write IULs and you're in the mortgage protection space, what you're going to do is you're going to do an amortization schedule on somebody's loan, you're going to run an IUL and you're going to try to see if the cash value gets close to the payoff amount at 20 or 25 years and then, instead of somebody paying extra money towards their mortgage, they could fund this IUL, they can get all the benefits and then they can use that cash value later to pay off their mortgage Devin. What are some other benefits I'm missing about NLG?
Speaker 4:I mean, we're talking about a lot of it too. But specifically to NLG, it's just the non-med that we have as high as we go in the underwriting process, 30% of the cases issue without even touching a physical underwriter, and that's face amounts, death benefits up to $3 million and our living benefits, as you said, in all 50 states at no cost. And if you compare us across the board, our minimums in those are higher as far as the amount we would pay out upon cancer, death or any of those life events.
Speaker 1:So what kind of numbers are you seeing with cancer? Because if you watch the news or you just pay attention actually to social media at all, you're seeing all these spikes in all kinds of illnesses. What are you guys seeing from NLG's point of view? Are you paying out more claims? Are you noticing that?
Speaker 4:Yeah, it's funny you ask because in 2023, we paid out $100 million in living benefits and last year I just got the numbers it was $117 in living benefits, not even death benefits.
Speaker 1:And that's if someone has a policy. They get sick but they don't die, and they're accessing the money to help, which I would say could save your life.
Speaker 4:It's happened. We have clients that live to tell the story. If they didn't have the policy, they wouldn't be with us to this day. Because why?
Speaker 1:How did it help them?
Speaker 4:Medical care, everything you can imagine.
Speaker 1:Yeah.
Speaker 4:Even spending time with your family or anything. Stress, stress, mm-hmm.
Speaker 1:I always think about that. It would be cool to see what your money can do, that you're leaving to people opposed to it happening after something happens to you. So it also gives people that opportunity too.
Speaker 4:Yeah, it's very cliche, but they say it's truly life insurance, not death insurance. You can see the power of it while you're alive and you don't have to put the money towards medical expenses. You can put it towards whatever you want, at your own discretion.
Speaker 1:Just throw a party. Throw a party, yeah, okay. So I think that's huge. I think people are missing the boat when they're doing that. Nicolette, you talked about fact finding. I think a lot of agents might go in blind, or they just ask a few questions. Can you talk about that? Because, again, if you're going to write these products, we want to make sure you're writing the right product. You're going to get it issued.
Speaker 2:Yeah, I also want to make sure too, like with my client, I'm more thorough in a process like this and that it's something they're going to keep and it's going to stay on the books and that I'm doing a more thorough job at the beginning, before I'm even getting into the application. I also think any client that's going to be spending more than $250, $300 a month, we probably should be looking at a more structured IUL for them. If we can get them approved for it just based on the cash value, but asking not just have you had a heart attack, stroke, cancer, but specifically, what medications do you take? If you don't know the medication, ask the client to spell it. Ask them to get up and get their med list. If you don't know the medication, google it, put it into toolkits.
Speaker 2:These things are super important, especially as the agent like going in and knowing what company I'm going to look at for my client, not just well, we had a heart attack 10 years ago. Okay, we had a heart attack 10 years ago, but now, what medications are we taking and why? Is super important. So I ask clients to spell their medication, get up, go get the med list If they don't have it. If I need to book another appointment. If we're talking about doing an IUL, I will schedule another appointment when they're home and we can sit down and go through the medications before just guessing and pitching them something I want to make sure I'm pitching them something that's right, Especially if we're looking at an IUL.
Speaker 2:We're talking about people's money and their cash value, and I don't ever want a client to call me in 10, 20 years and be like what the heck is this? This is not what you told me it was going to do. So I take that very seriously just from the beginning.
Speaker 4:If I could add on to that too, andrew, because you bring up a really good point, disclosing the information is the most important part, because, even though it's fully underwritten and we're not getting anybody going out there, we still need to know the health of the client.
Speaker 4:And oftentimes I understand that buyers are liars or some people could forget about their medication, but the information that you disclose on the app is just as important as the health of the client. So we just need transparency, and that's what can increase those instant approvals as well, and not to mention the cash value that performs. National Life Group is number one every quarter, every year, in IUL sales, and it's because we do what we say we're going to do, hence why we publish our rates inside of our website.
Speaker 1:Which is why I got my kids' policies with you guys, yep. What has FFL's sales done? How much have they grown over the last few years?
Speaker 4:So in 2019, when I started with you guys, when you were screening my calls, we did $100,000 together. Last year, we finished at $30 million when it wound up Nice, that's all right. It's growth.
Speaker 1:Yeah, it's growth. Who was screening? Your calls Me yeah.
Speaker 4:I was kidding, oh, I probably was that's great, all right.
Speaker 1:So this is a product that's growing. We used to sell cash back option all the time, and for everybody watching that means that if I put in 30,000 over 30 years, I would get 30,000 back at the end of 30 years. My sales pitch would always be I'd go hey, devin, if you buy this, then you get paid at the end of 30 years because you get all your money back. If you die, then your wife gets paid, so she gets paid. And if you buy this right now, then I get a commission, so I get paid. So this product's a win-win for everybody. And they would always be like oh that's. They'd always laugh and be like yeah, that makes sense, it is a win-win for everybody, and that would be my sales pitch.
Speaker 1:But the IUL throws a twist on it because it can grow even more. It's more flexible. You can take out money not just at the end of 30 years, but you can take it out at year 8, 9, 10, whatever. A lot of people are leaning more towards a properly structured IUL than a cashback option. Do you have an opinion on that at all?
Speaker 4:Yeah, so I like the cashback option. I would never talk bad about another carrier product. That's good for what it is. But you can't beat the IUL when you need it for certain reasons. For example, as you said, it can do better than what it illustrates and you have so much flexibility tied to this and, as with anything else, return a premium or be your own banker or key person. All that stuff is as a concept and the IUL can accomplish all those, just depending on how you structure it right, so you could structure the cash back in an IUL, correct, you can do.
Speaker 4:You can design it as return a premium. That's not usually what they're used for, but that's one of many things you could accomplish with this yeah, which is awesome, which I just to kind of piggyback on what you're saying.
Speaker 1:I love all these products like there is a good spot place for return of premium. There's a good place for term with just straight term get a big term. Um, there's a good place for final expense, there's a good place for all these different things, and that's what I tell everybody like, I like it all. Someone was like I'm not going to get an iul because the stock market will outperform it, and I'm like it probably will, but I'm gonna get both. No one's saying that this is the answer to everything in the world, but it's nice to diversify and it also gives you the insurance that you want. Correct, you know, correct. It's like okay, well, crypto is gonna, you know, do this.
Speaker 4:Okay, that's great, I'm gonna do all of them what's gonna happen when you get sick or anything happens. You're gonna have to liquidate all that account too.
Speaker 1:So not that those are bad but A lot of people get confused on the tax-free part of IULs. Can you explain how that works?
Speaker 4:Yeah, so the magic numbers are 7702. That's the IRS tax code that makes it tax-free inside of life insurance. So the irony is a lot of people you guys might get this as agents oh, I don't need life insurance, right? Well, the life insurance 7702 is what makes the cash value grow, tax deferred and you can access it tax-free. As long as you don't take out the full amount of the cash value, you're not taxed. So as long as you have that remaining death benefit left, the IRS won't tax you. So but you don't want it to lapse. You don't want it to lapse. If the policy lapses, you take out all the amount and you will pay taxes on the cash value.
Speaker 1:What if you put in more than it's worth and it lapses? Do you get to deduct that money? No, you can't deduct it. Okay, so when you structure this, you got to make sure that if you do take a loan from your cash value, you technically don't have to pay it back. You technically don't have to pay it back, but you want to make sure that it's not more than it's, not so much that it would lapse. The policy Correct.
Speaker 4:Yes, you don't have to pay back the loan because it just comes from the death benefit when you die. But you don't want to overloan your policy because then it could lapse.
Speaker 1:Because then it could lapse.
Speaker 1:Correct, but the illustration, as she said minimum death benefit, max cash value and then it does the rest for you, yeah, so I've been thinking a lot like, okay, how do you not spoil your kids to where you end up hurting them?
Speaker 1:How do you set them up with tools that can help them? So what I thought was okay, if I fund this IUL for my kids, they can kind of use it almost like a HELOC, like a home equity line of credit, where they can be like I'm gonna buy a, an investment and I'll borrow the money from this iul and then I can let's say they want to flip a house, I could flip a house, I could borrow the money from this iul and then I could put it back and just use it as something like that, as a business tool. Or I want to get my first house. Can I, um, can I use this as a tool to do something? And I always like, like we've always, I've always liked flipping houses and I would. I, I love credit lines like you can use it, put it right back, use it, put it right back, and to me, that's how I see this tool being used. Yep absolutely yeah.
Speaker 1:Now, the reason you don't pay taxes if you take it out is because it is technically a loan, correct, and you don't pay taxes on loans, correct, yeah. And then it's also a life insurance product.
Speaker 4:Yeah, at the end of the day, it's still life insurance first, yes, and now, what does a MEC mean?
Speaker 1:Because a lot of people see this word like what's a MEC?
Speaker 4:A Mch is a modified endowment contract. You're able to pay more than that, but the irs basically says you put in more than we wanted you to. You're trying to treat this like an investment, which it's not. So we're going to tax you if you touch the cash value, but the death benefit and living benefits are still income tax free when it mechs. It's only the cash value that's taxed if you access it.
Speaker 1:So, basically, what they're saying is if you put in, and the illustration software will share this with you, but if you put in over a certain amount, then it will now be taxed, correct. If you put in under what's a modified endowment contract, then you don't pay taxes if you access the cash value. Correct, and that's it. That's it. That's pretty simple.
Speaker 4:That's what we did for here. This finally worked too. So we paid $400 a month, 28-year-old, and then I'll just fast-forward down, leave it 30 years, and then our magic number for the cash value is $376,000. Okay, but we want to do 20 years Perfect, it's right there. So 20 years is $167,000.
Speaker 1:So 20 years is 167. Okay, so that can get close. So you can mess with these numbers based off somebody's mortgage. But, nicolette, 400 bucks a month, instead of using that to pay your mortgage off early, let's use that to build this policy. You're going to get the living benefits. Can you show that little screenshot that I show customers?
Speaker 3:The living benefits. Yeah, I love that one Alzheimer's everything, yeah, and love that one Alzheimer's everything, yeah.
Speaker 4:And that's one good thing about us is you don't necessarily have to worry about all the calculations. Everything's built into the illustration for you and we keep it really easy. So if you want to see what the living benefit projections are which is one of the few pages that I would show out of all these is this right here. So if you were to get sick, here's your living benefit projections.
Speaker 1:Okay, so terminal, chronic and Alzheimer's.
Speaker 4:Obviously, the more the severe, the higher the payout as well.
Speaker 1:Yeah, yeah, yeah. Unfortunately, people have to worry about this, which sucks, but this is just designed to help. And what are they saying? One in three people are getting cancer, yep, and some other crazy statistics.
Speaker 4:Yep, I think it's every 20 or 30 seconds, somebody has a stroke as well.
Speaker 2:Yeah, One of my agents wrote a client NLG a year ago and she just texted me the other day. That client just got diagnosed with cancer. So she's like, wow, this is real, this is actually happening. I have to like help this client, but she has these living benefits. Thank God. I put her with NLG, which is truthfully the best living benefits I've ever seen.
Speaker 4:I think it's one thing to talk about it and sell it, but once you actually experience a client, it is so humanizing and I think 10% of living benefit or death benefit checks are delivered in person. The other 90 go directly to the client and I wish agents switch that. If I'm an agent and I have a claim, if I'm able to, I'm physically going to deliver I've had a lot of claims, man a lot and going there and and it's fun.
Speaker 1:It's interesting because sometimes in the moment you're thinking about commission and you don't realize like everybody's gonna die and you're gonna take this, the moment you're thinking about commission and you don't realize everybody's going to die and you're going to take this claim and you're going to help the family and they're going to appreciate you so much.
Speaker 4:Yeah, everyone's going to them for bills and everything. You're one of the few, if not the only one, bringing them money.
Speaker 1:Yeah bringing them money, so I think this is an amazing opportunity. Any other tips you guys have for someone who's going to start selling IULs?
Speaker 2:Don't overthink it. Don't overthink it. And with NLG, like I said, the way I learned is I just started illustrating for myself and playing around with the numbers and seeing what it would look like for me. And if you get confused, I think NLG's sales desk is one of the. They're super helpful, so I always call them if I'm not sure. If a client asked me a specific question hey, is this something I can do? Hey, I saw this on a YouTube video Like is this something that we can do? If I don't know the answer, I tell them let me find out for you and give you a call back. I call the sales desk and they will literally help me with the illustration and show me exactly how it that's legit.
Speaker 1:You got any tips for someone.
Speaker 3:Yeah, just really like what we mentioned about really really get to know your client, because that is key. That is key, um, not just think about the sale, um, I really I don't consider myself a salesperson. I consider, you know myself, um, the focus of protection. You know, um, and it's just just make it simple, but get all the facts, and I do when I do the medical I'm a stickler I do get every single medication that they have. I don't need to know the dosage, unless it's insulin that I want to know and also how long they've been on it. Have they stopped? Have they not stopped? It's insulin that I want to know and also how long they've been on it. Have they stopped? Have they not stopped it? Everything, like I ask surgeries, everything. So I really get a good idea because I know I mean I've had some policies with NLG that have taken two weeks and others that have taken one day.
Speaker 1:Yeah, and the persistency. What is the persistency? With us within LG, over 80%. So, like our team, persistency with final expense was usually under 70%. With IULs we're seeing like some 80s, some 90% which, like I said on the beginning of this call, it's one thing to learn how to sell, it's another thing to learn how to get it issued and then the last thing is getting it to stay on the books. Now, why do these policies stay on the books? I'm actually curious. I don't know.
Speaker 2:For me, I think you've got to do a more thorough job at getting to know your client in the beginning, and I'm not just selling them something to sell them something. I'm actually trying to figure out what is going to be the best solution for that client. What can we get them approved for, what product is going to make the most sense? Because there are tons of products and tons of carriers that we work with and I don't think everything is a one-size-fits-all. Really, getting to know your client in the beginning, taking your time and then, I think, on the back end, the follow-up, especially in this virtual world that we live in, building that relationship with your client long-term. And that's a lot easier to do. When you go a little bit slower during your sales process and take your time, it's a lot easier to then maintain that relationship long-term, yeah, and I always ask them when I'm like literally getting close to the end.
Speaker 3:I ask them well, really, do you think this is a necessity or is this a luxury, you know? And I just let them tell me and then they're like no, I need this. Okay, so where's your driver's license?
Speaker 1:Yeah. What I think is like they have cash value in there, that why would they want to surrender it early and not get all of it? So I'm looking at my kids policies right now. So Atlas has. He's four years old. He got a $355,000 death benefit. This wasn't a year ago, it was almost a year ago. Um, the surrender value is already $4,500. And my daughter this is why you want to get them earlier so my daughter was two when we did it, and her death benefit, for the same amount putting in and almost the same plan instead of $355,000, is $445,000 from that two-year difference. So think about how crazy that is.
Speaker 1:Now, the cool thing is, though, this app is like Bank of America, kind of like you.
Speaker 1:You go in here I wish I could show everybody this, but let's see, you go in here and I'm going to view details and it allows me to add more money. So, straight from the app, it says add additional premium to your policy. So, like, if I don't do the max but I want to do it later, I can go in here and I can see exactly. Oh, the accumulated value is already in the first year, is already five thousand eight hundred and seventy five dollars and the premium is only six thousand dollars. So like to me these products are no-brainers, dude and then just the ability to go in here and and add more money to it and then see what it's doing. I bought an iul from fng, which I do like, but this was like when I was 18 and the paper statements and not knowing what my policy is doing and not being able to easily add money to it, or else I would have dumped way more money into it if I could just go on here and do it.
Speaker 4:It'll even tell you if it's going to mech or you're paying too much as well.
Speaker 1:Oh, Drew, you can see my phone.
Speaker 2:Yeah, just keep it where you're at.
Speaker 4:You're like a ninja dude and there's two apps. There's one for clients and one for agents. No exaggeration 90 plus percent of what you need as an agent or a client is all in those smartphone applications. There's no need to call the company or anything. Yeah, it sounds like you had somebody really knowledgeable structure that policy for you.
Speaker 1:Well, if you want to see how we did it, we did do a video on it. That's one of my favorite videos, though. Dude, like leaving something like that for your kids, and I've kind of realized people will do anything for their kids Weddings, funerals and children. What would you not do for your kids?
Speaker 3:My kids have an LG. And my husband and me.
Speaker 1:But think about this though Disneyland is so expensive, When's?
Speaker 3:the last time you went to Disneyland? Yeah, it's expensive. I don't know how families do it anymore.
Speaker 4:What about you Years ago? Years ago.
Speaker 2:Like $150 a day.
Speaker 1:High school, high school, I know I do, I've been fortunate to go quite a bit, because I got these two kids and they love Disneyland and it's really expensive, but you see hundreds of thousands of people there, they're happy. It's really expensive, but you see hundreds of thousands of people there, they're happy. Parents pull it together to make see their kids smile right, which that's why every time I'm talking to someone, I'm like you have to tell people about iul's for their kids, because people will find a way to do something good for their kids because it's the most important thing to them, you know. So it's a huge.
Speaker 1:I think a lot of people are missing out is just going hey, why don't we look at your kids? Why don't we look at your grandkids? I just got off the phone with a lady earlier um to this morning and she said, hey, I want to, I wanted to get stuff for my grandkids. We did 300 a month NLG and then she was like oh, can? This is so cool, can you also help me with my retirement? So she goes OK, let's do so. We end up doing a hundred K Athene annuity with her, all because of the opportunity to talk about taking care of her grandkids, you know that's awesome.
Speaker 1:Yeah, so we are really enjoying National Life Group. Yeah, so we are really enjoying national life group. Um, we want to make sure that you guys are sending people that do qualify. So do your homework, because they will fire you, right? If you send in a bunch of people that are not qualified, you have to do a bunch of underwriting, you guys will terminate them we monitor the quality of business very closely and terminate their contracts.
Speaker 1:Yes, yes. So we want to make sure everybody's sending business in the right places. If somebody's new, what's a good way for them to make sure they're doing the underwriting properly, like what? Advice would you give Probing right.
Speaker 2:Yeah, just asking.
Speaker 1:But like I'm brand new, I talked to this lady. She takes uh, she wants an iul, she takes metformin and uh high blood pressure medication.
Speaker 3:You need to specify metformin. When were, when did you become diabetic?
Speaker 1:so when I get that diagnosed, when I get that information, though, what do I do with it if I'm new?
Speaker 3:well, that going to give you an idea. If the diabetes was before age 40, for example, a lot of times that's a red flag.
Speaker 1:But I'm brand new. Once I get the fact-finding, what do I do?
Speaker 2:To figure out where to go.
Speaker 1:Yeah.
Speaker 2:I use toolkits Insurance toolkits and you can put the medications in there. It doesn't show companies like NLG or if you put in the medication. So, I will go on NLG's website and look at their underwriting guides, or I will call if I'm not sure.
Speaker 1:Yeah, and then insurance toolkits is good. I think if you use the code FFL you'll get a discount and then it'll also use our carriers. It'll customize our carriers in there. Now Integrity just launched in Integrity Clients a free tool quoting system, which is super cool and I got the demo of it two days ago. Right now you can do final expense, you can do term and they just added moo and americo's iul on. Uh, it's like. It's like a similar thing to insurance toolkit kits, but you can quote moo and americo's iul as well. You can put in all the medications, all that stuff. It will tell you if they qualify and hopefully nlg will be in there at some point.
Speaker 4:We also have something in our website as well. It's called X-Ray. It's a little extensive, but it's good when you have a lot of complex health conditions. We have our underwriting guide, of course, but X-Ray is great because you can plug it in. I'm a brand-new agent. It's a Saturday. I can't get a hold of my upline. I can't call the carrier because they're not. That's right inside of the website. It's called X-Ray right here it should be. They moved it on me. It is called X-Ray Underwriting quotes right here. They changed the symbol, so if you go inside of here, you're able to plug everything in there. I'm in the demo so it won't load, but this is a database that you can use free of charge.
Speaker 1:That's sick I love that.
Speaker 1:Hey Drew, are you able to share your screen or no? No, okay, we'll do another podcast on this, all right? Lastly, if you're watching this and you want to work with us, you can call these two girls right here. They're going to give you their. If they want to give you their phone numbers, they can, or they can give you their Instagrams, or whatever you guys do, you can reach out to them. They can train you on selling IULs. If you're new, if you've already been in the industry, if you're looking for a place to go, I'm sure you guys would love to help them, yeah.
Speaker 2:Of course, yeah, absolutely.
Speaker 1:Yeah, so can you guys share your information?
Speaker 2:Yeah, my name's Nicolette. You can find me on Instagram, it's easy. It's NicoletteMcGannon. No-transcript.
Speaker 3:And mine is Tatiana Muchacho is for my Instagram, and then my phone number is 617-710-2910. And I can help agents in English and in Spanish as well.
Speaker 1:English and Spanish.
Speaker 3:English and Spanish.
Speaker 1:yes, and you guys are building agencies. Where do you guys live?
Speaker 2:I live in Southern California, but I have agents all across the country.
Speaker 1:So it doesn't matter where you are, because we can do most of this through Zoom, but if you are in Southern California, it's a bonus. Yes, what about you?
Speaker 3:And I'm in Florida, in Weston, which is near Fort Lauderdale, so I'm in that area as well, there, and, yeah, anybody can reach me.
Speaker 1:How much do you write a year?
Speaker 3:Last year team was about $850,000.
Speaker 1:What about personal?
Speaker 3:$550,000.
Speaker 1:$550,000 in issued premium by yourself. What about you?
Speaker 2:Personal, I did $250,000. And team, we did $2.2 million.
Speaker 1:Nice. So you guys are crushing Awesome. Well, thank you guys for sharing. Devin any oh National Conference. We have Family First Life National Conference. You can go to fflconventioncom. Can you go there on the computer, fflconventioncom? Yeah, we want to invite you, even though this is coming up in a few days.
Speaker 1:Let's see here. Go to speakers. So we have all kinds of amazing speakers in the industry, so the best in the industry. And then we also have these additional speakers tim grover, sean mike, mariana attencio, kenny brooks uh, dave anderson let's see who else. And deon sanders so we're hoping his son goes to the raiders because the raiders suck. And Deion Sanders so we're hoping his son goes to the Raiders because the Raiders suck, and hopefully somebody can help them. Fingers crossed. Being a Raiders fan is like torture because they just Even if you try to bet on them, you lose, and if you bet against them, somehow they win. Heartbreaking, but anyways. So this is going to be an amazing event 99 bucks Register. We will see you there. All you guys are going. Have these events helped you guys?
Speaker 2:Yes.
Speaker 3:Yes, immensely. It's like, especially if you're new, you know, and you're like, is this really real? You know, are these people really being able to protect all these clients? And then when you see people walking the stage and hearing their stories from where they started to where they're now, you're like if that doesn't put a fire in your belly and gets you going, I mean nothing else will, because it's just so inspiring to hear everybody and everybody's so open and sharing. You know their experiences and they're good, they're bad, they're evil, and it's just hearing everybody and just having that energy in there and then being able to meet all the carriers face to face, get new information, what's coming up and you know for new, for the year that's. I mean you just can't get that at home yeah, what about you?
Speaker 2:um, this will be my fourth convention and every year I like feel like I go and I come back completely different, just more excited about this business, um, than when I started. It's there's so many different people to learn excited about this business than when I started. There's so many different people to learn from so many different stories. And I think it's really important to get outside of your bubble, of your team that you work with on an everyday basis, especially if you're not somewhere where you can plug into an office every single day. Like, get out of your comfort zone, go to convention, introduce yourself to different people, see who speaks on stage, who resonates with you, reach out to them on Instagram, connect with them. Everybody in this business, I think, really genuinely wants to help each other.
Speaker 1:And convention is the best place to go to be able to connect with all those people. So what? Now? Nlg will be there, iul training, annuity training, lead training, different vendors. But something that helped me the most is like I don't know if you guys are like this, tell me. If it's just me, like if I overthink something I can make it really complicated and scary. And then I get around other people and they're like oh, I keep it super simple and it kind of breaks me out of some of the negative thinking that I could do. And that's when I would go to these events. I'd be like, oh, I was, I was just overcomplicating it and they keep it really simple. Or I would be scared of chargebacks. And then someone was like someone told me this Cause, I got a $20,000 chargeback. I thought it was the end of the world. And someone was like dude, how much did you make? And I was you make? And I was like that year I was selling. I was like I don't know 700k or something somewhere around there. He's like so you?
Speaker 1:made 680, I was like, okay, that's a different way to think about it, I'm not as mad anymore, you know. So, getting around, a different way of thinking, so, so I love. Well, first of all, I would naturally try to pull away from people, dial by myself. Don't go on Zoom, don't talk to people, don't want anyone to hear me. But the right thing and the thing that's been helpful is getting around people getting uncomfortable, joining team Zooms, where I'm actually dialing in front of people. Team Zooms, where I'm actually dialing in front of people, putting my ego down. Stop being too prideful. Going to the events People are going to go. Oh, it's just rah-rah, dude, all the top producers and all top managers. If it's rah-rah, whatever, you should do it, because you'll sell more, because whatever is happening here, we see the top producers, top managers coming out of here and doing really well. Now let's say there's two days to go. I can't go because it's in two days. Nicolette, what would you tell me?
Speaker 2:Figure it out.
Speaker 1:I think you could get a Spirit Airline flight for $99, which I don't recommend, but if you're in a situation where you have to, I flew spirit my first year from arizona to miami yeah it's a long flight, long flight but who cares?
Speaker 4:it's worth it. Look where you are now.
Speaker 1:Yeah, yeah um, if you I mean people bunk up, they share rooms, they share airbnbs, they do whatever can. So if it's really inconvenient, we want to encourage you to do it anyways, because that usually means you're going to get some good results. If it's really inconvenient and Devin's going to be there, so you have to go. Most important part yeah, all right guys, thank you for joining us. Devin, thank you for coming in. Appreciate all you guys do and we will see.