What is the background on how the client was introduced to our firm?
Dick Bjorklund first started working with his dad many years ago. Phil and his wife Laurie have been planning clients for many years.
Who all was involved in the case from start to finish (Balefire team members and outside advisors if applicable)? What were their roles?
Erika Wood – overall financial planning and Dick Bjorklund – insurance design. The client had a GVUL as a partner of his law firm that he would taken ownership of at retirement. 5 years ago, Dick had the foresight to write a term policy on Phil so at retirement, he could 1035 his company-owned GVUL into a personally owned IUL. The term component was to ensure he would be able to convert it with no health questions asked – i.e. that his health status 5 years later wouldn’t hinder the policy transaction.
What problems did we help the client solve?
The GVUL policy was cash rich and expensive. It didn’t make sense for their family’s situation or retirement needs. Phil liked the idea of no more premiums, plus a chronic illness rider to help with future Long Term Care issues that may arise. The new IUL policy does just that.
Were there any challenges along the way? How did you overcome them?
The insured’s wife was hesitant to reduce his total coverage from $1.5M to $1M, even though he doesn’t have a need for more death benefit. This was proving to be a barrier that stalled us in placing the new policy. I had an idea that we supplement the “lost” coverage with a 500K term policy in addition to the new IUL and she was much more comfortable with that. Now both the client and his wife were on board with the plan and were excited to move forward.
What was the total revenue generated from this case?
$50,000