David Kottler, JD, CAP 2016

LIFE INSURANCE: TURN OLD POLICIES INTO MAJOR GIFTS Summary: This presentation will use case studies to demonstrate how to consider life insurance polices as an asset class which should be investigated. How it is possible to turn old life insurance policies (likely hidden in plain sight in a file cabinet) into cash to fund major gift priorities. CHARITABLE PRESENTATION

DOCTOR? INSURANCE DO YOU NEED AN

IMPORTANT Why is this topic

…BECAUSE MANY ARE MADE TO CHARITY USING LIFE INSURANCE

IMPORTANT Why is this topic NOW

There are many UNWANTED UNEEDED policies that can be used for charitable purposes. or

Many veterans have FULLY PAID UP POLICIES they may not need

90% of policies over 3 years old have not been reviewed.

CLIENT & POLICY SUMMARY

POLICY PERFORMANCE ASSESSMENT

LIFE EXPECTANCY EVALUATION – LAPSE TESTING

SUMMARY OF OPTIONS All known rate class factors have been considered and applied to policies offered by over 50 life insurance companies. Figures are current as of the date of this Analysis and are subject to change in the future due to age changes and/or product changes. FEMALE CLIENT – AGE 77 OBJECTIVE: GUARANTEE $2,000,000 COVERAGE FOR LIFE

MYTHREALITY VS MYTH: Existing life insurance policies can’t be improved because of price increases. AG38 Low interest rates REALITY: 60% of policies more than 3 years old can be improved with a new contract. Extended mortality assumptions Select vs. ultimate

CURRENT STATE OF THE LIFE INSURANCE INDUSTRY…

69 “orphan policies” %

74 people are inadequately insured for health care exposures %

46 people are primarily concerned with outliving their assets %

BARBARA’S STORY Had a large term policy she no longer wanted Sold it Result: A $500,000 DONATION to her foundation Had a large term policy she no longer wanted Sold it Result: A $500,000 DONATION to her foundation

$25MM worth of life insurance Some policies way over-funded Some policies way under-funded Certain tax issues JOHN A CASE STUDY

Extended coverage on $8MM worth of insurance with no more out-of-pocket costs Found $2MM of assets for reinvestment Reduced premiums to zero and sold policies retaining $6.5MM worth of death benefit JOHN’S REVIEW RESULTS

CHARITIES MAY BE RELUCTANT TO ACCEPT GIFTS OF POLICIES.

GIFTS OF LIFE INSURANCE CAN BE LIKE APPLE STOCK…

1. USE AN APPRECIATED ASSET YOU NO LONGER NEED OR WANT. 2. GIFT IT. 3. HELP CHARITY AND YOURSELF AT THE SAME TIME.

Age 70+ Age 70+ Standard or better issued policies at non-smoker rates Standard or better issued policies at non-smoker rates Significant change in health since the policy was originally purchased. Or Preferred and Super Preferred policies for 80+ Significant change in health since the policy was originally purchased. Or Preferred and Super Preferred policies for 80+ Policies from $500K to $5.0MM and up Policies from $500K to $5.0MM and up All types (Term, UL, WL, Survivor) All types (Term, UL, WL, Survivor) WHAT KINDS OF POLICIES WILL WORK?

“ ” David has worked with me over the past 20 years providing me with excellent advice and products. I HAVE MADE HUNDREDS OF THOUSANDS OF DOLLARS benefiting me, my family, and my favorite charities as a result of his shrewd purchases and sales of insurance. I highly recommend him. Alvin Gray Attorney & Philanthropist

GET A CHECKUP SOON

HOW TO IMPLEMENT CALL: START: VISIT: DATA COLLECTION INSURANCESOLUTIONS. COM

REVENUE SHARING OPPORTUNITIES

? QUESTIONS

David Kottler, JD, CAP StrategicLifeInsuranceSolutions.co m