by Truth Concepts | Feb 4, 2022 | Comments Off on The Human Life Value Approach and the Fallacy of “Needs Analysis”
It’s not uncommon for the Human Life Value approach to be written off as “overkill.” Clients either believe that buying insurance up to their full human life value (HLV) is simply too much money for their heirs, or the number doesn’t seem real. This approach, however, is actually incredibly important for your clients. Consider this: Would you buy a $50,000 car yet only insure it for $30,000 because you only NEEDED a $30,000 car? No, you wouldn’t dream of doing so–you’d be shortchanging yourself. And yet, this happens in the
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by Truth Concepts | Jan 21, 2022 | Comments Off on The New OCR File Converter
Introducing the newest feature to our beta software, Truth Concepts 3.0: the OCR File Converter. It’s not as complicated as it sounds. In fact, this feature may make inputting your life insurance values easier than ever. This new feature will allow you to turn pictures and scans into copyable PDFs, right from the Truth Concepts software. No more difficult formatting, or even inputting illustrations by hand simply because your PDF won’t allow you to copy. One great example of this type of file is a PDF you may get from
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by Truth Concepts | Dec 31, 2021 | Comments Off on What is Velocity Banking and Does It Work?
by Truth Concepts | Dec 8, 2021 | Comments Off on IRS Rule 7702 Updates, and Whole Life Insurance
At the beginning of the year, the tax law surrounding life insurance policies was shifted. Now, as we approach 2022, all life insurance companies will be shifting new policies to reflect these changes to IRS rule 7702. We’re here to break down what’s happening, and how it will affect the business you write. MEC Limits and Section 7702 7702 refers to the section of the IRS tax codes enacted in 1984, that outlines how life insurance should be treated from a tax standpoint. The most important point of the code
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by Truth Concepts | Nov 19, 2021 | Comments Off on No Deals in the Life Insurance Industry
“There are no deals in the life insurance industry…” This quote, more perhaps than any other, is something we must take to heart when we work with clients. Not because it’s “sexy,” but because it’s true. The more we try to glamorize the life insurance industry, the greater disservice we do to what life insurance can do—and the more we risk confusing clients. The truth is that there’s no magic. Life insurance doesn’t grow money out of thin air, nor does it eliminate interest, or allow you to pay yourself
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by Truth Concepts | Nov 5, 2021 | Comments Off on Can Clients Actually Benefit from Inflation?
Merriam-Webster defines inflation as the continuing rise in prices, usually caused by an increasing volume of money in the economy. This means that purchasing power decreases over time. Gas and groceries are time-tested examples. In the 1950s, a gallon of gas or a loaf of bread cost under a dollar. Now, a dollar simply does not buy the same volume of goods as it used to. Inflation can, unfortunately, be considered an inevitable part of the economy. This is one reason that as financial advisors it’s crucial to look at
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by Truth Concepts | Oct 23, 2021 | Comments Off on Rising Tuition Costs: Involving Kids in the Discussion
It’s no secret that getting a college education is still widely considered the “best next step” for high school graduates. And while there’s much to be said about higher education, many families treat college as a given for their children. What’s more, they don’t consider that one day their child may not want to go to college… and that that is okay. With rising tuition costs and crippling student debt, the more important question is: who should be at the table when discussions about education and savings are happening? What
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by Truth Concepts | Oct 9, 2021 | Comments Off on The Whole Truth About Direct Recognition vs. Non-Direct Recognition
When trying to explain policy loans, and Direct Recognition vs. Non-Direct Recognition life insurance companies, we like to begin with a discussion of ownership. In a mutual insurance company, policyholders are the owners of the company. Whole life insurance is not like car insurance, home insurance, or other types of property insurance where you funnel money in and may never see it again. Yet life insurance frequently gets lumped together with all other insurance by agents and clients alike. Helping a client to understand that they’re an owner of the
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by Truth Concepts | Sep 11, 2021 | Comments Off on How Do You Calculate the Rate of Return on a Real Estate Deal?
One of the great benefits of using the Real Estate Calculator is that it automatically calculates the Net Cash Out, as well as the resulting Rate of Return. All you or the client must do is plug in the numbers, and you’ll see how good your deal is. However, there’s a difference between seeing the results for yourself and verifying them through your own analysis. One of my favorite ways to demonstrate this in Truth Training is using the Rate Calculator. This simple calculator allows you to plug in variables
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by Truth Concepts | Aug 14, 2021 | Comments Off on The Huebner Foundation: Foundational Life Insurance Education
“There is nothing more uncertain than life, and nothing more certain than life insurance.” Solomon Huebner It’s easy to get caught up in the more exciting parts of life insurance, like the infinite banking concept. After all, it’s exciting to think about leverage and cash flow and building your own “bank.” Yet it’s important that we don’t neglect the foundation of life insurance, which is protection and certainty. Whole life insurance is foremost, insurance. And it is the only type of insurance that is guaranteed to pay out—which is one
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by Truth Concepts | Jul 17, 2021 | Comments Off on 3 Non-Financial Assets Clients Can Pass Down
Different stages of life mean different stages of financial advice. And while many advisors do a great job of educating clients on financial products and assets, there’s something to be said about the “non-financial” assets that clients can accumulate. As an advisor, speaking with your clients about their desires can go a long way in building a financial mindset beyond dollar signs. We want to take it a step further. You can help your clients live a richer life and pass down a legacy in a way that transcends money.
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by Truth Concepts | Jun 18, 2021 | Comments Off on How to Build Trust and Make Sales
Dan Sullivan of Strategic Coach recently posted on LinkedIn: “My definition of selling is two-fold.The First part is that you intellectually engage the person you’re selling to with a future desirable result, something that would be an improvement or achievement in their life. And it’s not what you want for them—it’s what they want for themselves. The second part is that you then enable them to emotionally commit to that goal and then to courageously take action to move forward and achieve the goal. And if you do both of those
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by Truth Concepts | Jun 4, 2021 | Comments Off on New Button in Loan Analysis: Difference Between Payments
While the update may seem small, it has a huge impact on user friendliness. The update in question is a new “right-click” feature that does some simple math for you. That way you don’t have to fuss with the copy/paste function if you don’t want to. In a mortgage comparison, like we demonstrate here, it’s important to show the potential savings of a 15-year mortgage vs. a 30-year mortgage. Previously, to do so, you would have to calculate the difference between payments within the Future Value calculator. This meant a
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by Truth Concepts | May 22, 2021 | Comments Off on Truth Tip, “Lost or Found” Payments in Borrowing Strategy
Important Note – The “Extra Payment Lost or Found” does not add to (or subtract from) any of the calculations. It is just a way to see the difference in net payment at a rate between whatever is in the “Market Loan Rate” input and either: the net earnings rate when “Acct-Cash” is selected -or-the “Market Loan Rate” when any of the other 3 options are selected. If you have (-100%) in the “Market Loan Rate,” the numbers for the “Extra Payment Lost Or Found” will look skewed because based
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by Truth Concepts | May 8, 2021 | Comments Off on Understanding the Participation Ratio in IULs
Earlier this year, we wrote about how to illustrate IUL returns in the Accumulation calculator. The reality is, IUL’s are sold as something they just aren’t—there are fewer guarantees, and a lot is still left up to risk. Now, we have a new button that illustrates another “lesser-known” provision of an IUL policy: participation ratios/rates. The insurance company sets the participation ratio, and is non-guaranteed, which means it can change from year to year. A participation rate controls how much dividend a policyholder will receive. For example, say the index
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by Todd Langford | Apr 23, 2021 | Comments Off on The Truth About Whole Life Insurance Taxation
Tax language—you’ll often hear talk about tax loopholes, tax breaks, tax shelters. All have a negative implication and show a fundamental misunderstanding of why tax advantages exist in the first place. Whole life insurance taxation is another beast altogether. With whole life insurance, I often hear people talk about how it’s tax free, which is equally misleading. While the death benefit is tax free and there are ways of accessing cash value without causing a taxable event. To say it’s entirely tax free is incorrect. And yet (outside of one area)
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by Truth Concepts | Apr 9, 2021 | Comments Off on Can You Save More with a 30-Year Mortgage, Refinanced Every 10 Years?
What’s the major reason that people want to have their house paid off? In most cases, people fear a scenario where they can’t pay their mortgage, so they spend more money up front. Too often, this puts them in the scenario they were trying to avoid. It all comes down to control, and a 30-year mortgage simply gives you more control. We’re going to run an experiment here, and see how you can actually save more money in your own pockets. Setting Up in Loan Analysis To begin, pull up
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by Truth Concepts | Mar 27, 2021 | Comments Off on Section 7702 Changes: Is Whole Life Insurance Still A Good Savings Vehicle?
By now, advisors in the industry are well aware that the life insurance industry is going through changes. The end of 2020 introduced recent changes to Section 7702 of the tax code, which hasn’t been touched in decades. While we’ve read mixed interpretations, we’re looking at the whole truth. The truth is, first and foremost, that whole life insurance is an incredibly certain asset. Insurance companies have always met guarantees and have a more than century-long track record of paying non-guaranteed dividends. Even through world wars, recessions, and the Great
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by Truth Concepts | Mar 12, 2021 | Comments Off on How to Demonstrate the Laffer Curve in Cash Flow
Is it possible to reduce taxes by lowering the tax rate? Let’s talk about the Laffer Curve. This theory, posited by Alfred Laffer during the Reagan Era of tax reduction, may hold more water than you’d think. This is a great exercise for webinars where you’re helping clients understand taxes better (and why they should seek to save on that tax bill as much as possible). What is the Laffer Curve? The Laffer Curve theory, as Investopedia explains, is the theory that as tax rates increase, people become dis-incentivized to
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by Truth Concepts | Feb 26, 2021 | Comments Off on Does IUL Really Offer Stock Market Returns Without Risk?
Since the IUL (Indexed Universal Life insurance) came onto the scene, it’s been sold as a way to get stock market returns without taking any of the risk. In this case, the risk in question is losses in the stock market. Companies often have a guaranteed minimum interest rate. In theory, this should make you rich, right? So how come so many IUL policies collapse? Flexible premiums are not solely to blame. In reality, guaranteed minimum interest rates have to be tempered somehow. For whole life insurance, minimums can be
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by Truth Concepts | Feb 12, 2021 | Comments Off on License to Buy vs. Permission to Spend
In the financial industry, and in Truth Training specifically, there are two concepts with similar names that we often discuss. The first is the “License to Buy” idea, and the second is “Permission to Spend.” Both are important topics, both result from whole life insurance strategies, and we must understand both so that we can help our clients. What is a “License to Buy”? Whole life insurance, as a savings vehicle, provides benefits beyond that of your typical savings account. Not only is the cash value account liquid—it provides growth
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by Truth Concepts | Jan 29, 2021 | Comments Off on Truth Quotes, Part 4
As we wrap up the first Truth Training of 2021, and the last one in the current Paradigm Life building (they’re moving locations), it feels fitting to add another round of quotes. We’re fortunate to work with some of the brightest minds in the business, and we love sharing nuggets for those minds who could not attend. Or those who could and want to review! Unless otherwise noted, quotes are from Todd. Quotes on Truth “We all want to be right. If you’re really seeking Truth, you have to be willing
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by Truth Concepts | Jan 14, 2021 | Comments Off on How to Prepare for Truth Training in Salt Lake City
Whether you’ve been to a dozen Truth Trainings, or you’re gearing up for your first, it’s tricky to know just what you’ll need to be prepared. As with any business trip, you can forget some of the small things. Sometimes, there may be “hacks” you had never even considered. Today, we’re giving you an insider’s look at how to best prepare for a Truth Training. With these tips and tricks, you’ll leave nothing up to chance. Tips to Prepare for Truth Training in Salt Lake City 1. Choose Your Hotel
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by Truth Concepts | Jan 1, 2021 | Comments Off on How to Set Up Dual Screens for Greater Productivity
We’ve shared before the benefits of using two (or more) screens when you’re working. In fact, Todd himself uses more than three screens. Yet without the technological know-how, setting up dual screens can be daunting. Fortunately, it’s easier than it seems. We want to help you be as productive as you can be, so we created this post to help you get set-up on more than one screen with as little hassle as possible. Why You Should Have Dual Screens Dual screens help boost productivity primarily because they increase the
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by Truth Concepts | Dec 18, 2020 | Comments Off on Truth Tip, Life Insurance Values
Importing illustrations into Life Insurance Values properly is essential to getting the most from the Truth Concepts software. The importing process will look different from carrier to carrier. Some insurance carriers will export illustrations into a PDF, some will export into an Excel spreadsheet. No matter how the insurance company operates, there’s a way to import your illustrations. Supported Companies for Importing Illustrations Currently, only certain file-types of illustrations are supported. It’s important to note which is which, so you can import illustrations with ease. Here are the carriers and
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