for broker/dealer use only. do not use with consumers. understanding social security a look at the...
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For broker/dealer use only. Do not use with consumers.
Understanding Social SecurityA look at the bigger picture
CLBD.1040 (07.13)
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Why is Social Security Important?
• 96% of Americans are entitled to benefits*• Benefits can be more substantial than you
think
Sam, 66Life-long high wage earner
$2,533/month
Sue, 66Non-working
spouse$1,266/month
$45,588Per Year
$1,000,000
*Source: www.ssa.gov
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Talking to your clients about Social Security• Social Security is complex and presents
crucial financial decisions• You don’t have to be a Social Security
expert in order to identify options and potential pitfalls
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Filing for Benefits: Sooner vs. Later
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Sooner or later?
$7,000 difference per yearAdditional $210,000 of income over 30 years
Age 62
Age 66
Age 70
$750/month$9,000/year
$1,000/month$12,000/year
$1,320/month$15,840/year
-25% +32%
+76%
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What’s the Right Decision?
• Individual decision• Everyone’s situation is different• Prepare in advance to make this decision• Look at other income coming in• Will they still be working?
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Planning OpportunitiesReplacing lost income
Stayed a home with children
Life-long high wage earner
Pete’s Social Security Benefit
(monthly)
$2,500 +
Pam’s Spousal Benefit
Equals 50% of Pete’s
$1,250
=
Monthly combined Social Security Income
$3,750
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Planning OpportunitiesReplacing lost income
-
Pam’s survivor benefit
Equal to the greater of Pete’s benefit or her own
$2,500
=
Amount of income Pam needs to replace
$1,250
Monthly combined Social Security
income
$3,750
Ten years later, Pete passes away…
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Planning OpportunitiesReplacing lost income
Purchase a Protective Advantage Choice UL with Income Provider
OptionWith a $213,000 death
benefit, the Income Provider Option would
provide monthly payments for 20 years
following Pete’s death. 1
$1,250
Guaranteed Monthly Income
$3,750=
Pam’s survivor benefit
$2,500+
1Assumes a Protective Advantage Choice UL 66 year old male, standard non-tobacco rate class. Monthly IPO benefit of $1,250 for 20 years. All guarantees are subject to the claims-paying ability of Protective Life Insurance Company.
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With Understanding Social Security, you can:• Teach your clients how to identify and prepare
for key retirement decisions• Learn how to guide clients through these key
decisions• Educate clients about their options• Enhance client relationships• Help position yourself as the premier retirement
planning resource
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Implementing Understanding Social Security in Your Practice• Promote your services with a
direct mailer series• Educate clients with a
consumer seminar and brochure/workbook
• Help your clients assess their situation with support materials like the consumer brochure, client worksheets, and online calculators
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Social Security Explorer
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Getting started
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Important concepts
• Full retirement age, FRA• File and suspend• Restricted application
Year of Birth FRA
1943-1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 or later 67
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Step 1: Enter ages
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Step 2: Enter monthly benefits
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Step 3: Other variables
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Step 4: Client focus
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Step 5: Adjust life expectancies
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Step 6: Retirement age
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Step 6: Retirement age
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Step 7: Additional dropdowns
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Step 7: Additional dropdowns
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Step 8: Optional strategies
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Getting Started
• Request materials from your Protective Life representative.
• Schedule a seminar
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Important InformationProtective and Protective Life refer to Protective Life Insurance Company (PLICO) and its affiliates, including Protective Life & Annuity Insurance Company. Variable annuities are issued by Protective Life Insurance Company in all states except New York and in New York by Protective Life & Annuity Insurance Company (PLAICO). Securities offered by Investment Distributors, Inc. (IDI). IDI is the principal underwriter for registered products issued by PLICO and PLAICO, its affiliates. All three companies are located in Birmingham, AL. Product availability and features may vary by state. Each company is solely responsible for the financial obligations accruing under the products it issues. Product guarantees are backed by the financial strength and claims-paying ability of the issuing company.
Examples presented are hypothetical case studies and are not indicative of the performance of any specific Protective Life product. Results could be higher or lower.
This presentation represents only our current understanding of Social Security and Medicare in general and should not be considered legal or tax advice. Details of the Social Security and Medicare programs are subject to change at any time. Consumers should consult with their tax or legal advisor regarding their individual situations before making any legal or tax-related decisions. Visit www.ssa.gov for additional details.
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Important Information
Protective Advantage Choice UL (UL-21) is a universal life insurance policy issued by Protective Life Insurance Company, Birmingham, AL. Policy form numbers, product features and availability may vary by state. Consult policies for benefits, riders, limitations and exclusions. Subject to underwriting. Up to a two-year contestable and suicide period. Benefits adjusted for misstatements of age of sex. In Montana, unisex rates apply. All payments and all guarantees are subject to the claims-paying ability of Protective Life Insurance Company.
This is only a summary of Income Provider Option endorsement benefits. Actual terms and conditions contained in the product policy and the endorsement govern benefits provided. A portion of periodic payments may be reported as taxable income to the beneficiary. Consumers should consult their attorney or tax advisor regarding their individual situations. Please see the endorsement for more detailed information. May not be available in all states or on all currently-marketed UL products. State variations may apply. Income Provider Option (UL-E35) is issued by Protective Life Insurance Company, Birmingham, AL.