… or in other words, we specialize in... The Alliance Group is an insurance marketing and field underwriting organization that represents certain insurance companies that are particularly focused on income and asset preservation…

Estate Protection

When we say “Estate”, this does include your residence but your estate also includes…  Checking and Savings  401-K and IRA values  Equity in the home

Statistically, which of the these events have the most negative impact to your Estate, especially your liquidity, when they occur?  Death?  Critical Illness?  Disability?

1)Drain your liquidity while you are working to the point where you can no longer keep all the bills paid like the mortgage, utilities, etc. 2)Cripple your ability to retire one day or stay retired by having you rob retirement accounts prematurely. …Critical Illness! Studies show that suffering only one sustained critical illness is enough to either:

Critical Illness?  But wait! You say, “I have disability through my job!”  Or you say, “I am retired on social security and/or pension!”

“But Critical Illness does not always lead to a quick designation of disability does it?…” So what are you going to do for cash flow if you are not declared disabled? Your short term disability can start quick but not the long term part. After the short term runs out, how much long term disability can you collect if doctors delay your disability approval letter? (…and they often delay, potentially for months!)

Critical Illness does not always lead to disability … Whether you are working for a living or on fixed income, what will you do to replace spending down your assets too fast ?

Critical Illness does not always lead to disability … …and one of the most financially damaging, liquidity draining Critical Illnesses that can occur to bring you to this place is… Invasive Cancer

Critical Illness does not always lead to disability … Source: “Cancer Facts and the War on Cancer “. LIMRA.2007 Men & Women have a 1 in 2 risk of developing cancer at some point in their lifetime!

Critical Illness does not always lead to disability … Other Critical Illnesses can strike anyone at anytime… …even if no current family members have fought a critical illness before. Today’s chemically laced food and water supply are responsible for a growing number of health conditions.

Critical Illness does not always lead to disability … …. and your Estate values are at risk, right? (Checking, Savings, Retirement, etc)- since doctors and committees rarely disable people for Critical Illnesses within the first year of diagnosis. If they don’t call you disabled in time, you will have to use these Estate assets to pay the mortgage, buy groceries, pay the light bill, etc…

Critical Illness does not always lead to disability … Every 40 seconds someone in the United States has a stroke. Source: American Heart Association. “Heart Disease and Stroke Statistics” 2009

Critical Illness does not always lead to disability … Source: American Heart Association. “Heart Disease and Stroke Statistics.” LIMRA Every 26 seconds, someone suffers a heart attack.

Critical Illness does not always lead to disability … About 45% of heart attack victims are under age of 65. ( under age 65 ?…think about it!) Source: Nat’l Heart, Lung & Blood Institute. “AHA Statistical Update, 2013

 Heart Attack  Stroke  Cancer  Renal failure  and other Critical Events… The type of events that cause so many people to lose their home or estate value is tied to Critical Illness Events, such as:

Most workplace short term disability plans (if you have one) only allow for “up to” full income for 90 days. Problems with workplace disability However, it is derived from your Base Pay, not the income from your W2 or tax return! NEED BENEFITS

Problems with workplace disability You can typically get started on your workplace short term disability or “hall pass” disability fairly easy because it is largely activated by your local or family doctor.

Problems with workplace disability But doctors rarely disable people from critical illnesses inside of a year for the long term part. Long term disability is governed by your company doctor or plan (not under your control) and you will often go many months before the long term can kick in creating a potential “Zero” income situation.

So, if and when you are FINALLY labeled “Disabled” for the long term part, it will be a massively reduced amount, usually between 60-70% of base salary (not including any bonuses or over time) trickled out in low monthly payments… For most people, it was too little, too late. Problems with workplace disability

Many lose their health insurance during a Critical Illness… After as little as 90 days, without returning to full time employment (assuming you are employed)… … you may no longer be eligible for your company payroll deducted health insurance so now you are introduced to COBRA…… Most people report they can’t afford the full cost of their health insurance so now you lose your health coverage several months into your Critical Illness struggle. LEFT HIGH & DRY

Did you know that by missing 4 mortgage payments, you will likely enter a silent foreclosure process? …Where $4 -10K of nonnegotiable fees are added to your 4 month delinquency status –no partial payments accepted! Its all got to be paid up front or foreclosure continues.

Source: Approx. 56.5% (more than 1 out of 2) of all bankruptcies in the last 5 years were medically related. 70% (7 out of 10) of those bankruptcies actually had workplace benefits at the time of the critical event.

So, we have talked about the problem. Now let’s talk about a potential solution, assuming you can be approved for it.

The Solution Is To Have Coverage For Death - But Also For Critical Events. #1 Our Estate Protection Life Insurance with Living Benefits does not require a doctor to declare you disabled, rather just declare there has been a life threatening critical or chronic illness including but not limited to heart attack, stroke, detection of life threatening cancer and other covered critical or chronic illness events… #2 You are about to see that it also pays a large up front amount instead of small monthly amounts especially helpful on Critical Illnesses, so you can have the money you need to help keep you in your “current” lifestyle.

One way to cover your Estate is with many separate policies….. Death= Policy #1 Cancer= Policy #2 Heart attack=Policy #3 Accident=Policy #4 Etc….. PREMIUM DUE

Let’s talk about funding options …but also create up front serious cash benefits upon diagnosis of certain Critical Illnesses even if your doctor doesn’t call you “Disabled”. These cash benefits are paid to preserve your estate and keep things running, all for about the cost of regular life insurance ! I am about to show you some custom illustrations on how we might cover you if you were to die…

Option 1 “Target” Premium  At a glance, it will appear to be the most expensive, but will be projected to be the cheapest to own long term…You will see that it builds Cash Values in a separate account that will offset the cost of the insurance  Using Option 1 creates a guaranteed win—either you will use one of the insurance benefits in the future or have access to Cash Value account several ways of your choosing.  As long as you start funding Option 1 at an acceptable age and table rating and fund it for an appropriate number of years, it is an excellent choice.

As an example, after the first few years, many clients loan themselves money from the Cash Value in the policy and accelerate or even help to pay off their mortgage early, saving thousands even multiple thousands of dollars in mortgage interest.

One last comment about Option 1 is that many people are now repositioning some of their monthly cash flows using Option 1 in conjunction with 401K, IRA’s, SEP’s, etc to build wealth and retirement income because of:  Good rates  No risk  Could reach “paid up” status.  If “paid up” status can be achieved, you may be able to receive retirement incomes—potentially tax free!

 Option 2 has a lower monthly premium requirement since it will not be permanent or reach paid up status. It has same death and living benefits as Option 1 but has a predictable specified period of coverage allowing for lower premiums.  Option 2 cannot not achieve refund of premium or offer monthly income supplements in retirement--the focus is coverage for a certain period.  You can upgrade from Option 2 to Option 1 later under certain circumstances

Option 3 “Minimum” Premium  Gives the same Death and Living Benefits as Option 1 and Option 2 but has a significantly reduced period of coverage, (typically 15 years protected rate.)  Like Option 2, no significant policy cash values for savings or retirement will build up at any time at this level—it’s just the coverage--just for a shorter duration policy period.

Purpose of this meeting… The purpose of this meeting is to find a fit. It’s got to be a fit for you. Then, we’ll see if it is a fit for the carrier.

Purpose of this meeting… Remember, you can change it later, we just need to find a place to start and maybe take advantage of avoiding the blood and urine exam on certain coverage levels.

Purpose of this meeting… Let’s now look at two or three funding options. Regardless which of these funding options you might try, the coverage is virtually the same. We are looking for a place to help you “try”… Today will not be a “buy” because there is no policy available in this visit.

Let’s look at the Illustrations!