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As a fee-only financial planner, you’re sure to serve clients with a diverse range of insurance needs. And as a fiduciary, you always have your clients’ best interests in mind. So when it comes to finding the ideal insurance products for your clients, there’s no better decision than working with trusted insurance specialists who exclusively serve fee-only financial planners.
BC Brokerage is an independent insurance brokerage that specializes in helping fee-only financial planners with their clients’ life, disability, annuity, and long-term care insurance solutions.
We asked Peter Ciravolo, Co-Founder of BC Brokerage, to share details about BC Brokerage to help fee-only planners learn what makes his firm unique.
Q: What makes BC Brokerage different than the “other insurance agents”?
- We understand how Fee-Only planners work and think.
- No upselling or pushing products
- 1-Page Analysis and Quote Comparisons
- Completely virtual process
- Advisor portal for underwriting and inforce policies
Q: Can you help in all 50 states?
Yes.
Q: What licenses do you have?
Life/Health Insurance. We do not have securities licenses. No variable products are offered.
Q: How is BC Brokerage compensated?
We are compensated via commission from the insurance carrier when a new policy is sold. It is the same price going through us or going to the insurance carrier directly.
Q: What are the commissions for each product?
- Term Life:
- 80-120% of the first-year premium
- Permanent Life:
- 40-90% of the first-year premium
- 2-5% renewal.
- Disability:
- 50-80% of the first-year premium
- 5-20% renewal
- LTC:
- 40-60% of the first-year premium
- Annuity:
- OPTION A: 3-8% of the initial premium
- OPTION B: 1% renewal
Q: Can you review a current client’s policy?
Yes, this is one of our largest value adds!
We are happy to review the policy and give you a quick analysis on the policy. We will let you know the client’s options:
- Keep as is
- Keep and modify
- Keep and supplement
- Replace and supplement
- Cancel/surrender
Feel free to start a policy analysis on our website.
Q: How does a Fee-Only planner get started with BC Brokerage?
Reach out via email or phone!
From here, we will set you up on your portal and start the task at hand.
We keep it as easy as possible.
Q: Which insurance companies do you work with?
- A-Rated or better carriers
- Competitive insurance definitions and premiums
- Carriers with strong claims paying ability
- Electronic processing and delivery
Q: Who helps me through the process?
- 1 point of contact
- Live Updates
- 100% Electronic Process
Q: Will I need to take a medical exam?
- ~1/3 of applicants will qualify for accelerated underwriting programs
- ~1/3 of applicants will need to take an exam.
- ~1/3 of applicants will need to have their medical records reviewed
Q: What changes have come from COVID?
Carriers won’t underwrite if the insured has had COVID within 30 days of the application.
Q: What is the difference between total and partial disabilities?
Most people associate their image of disability to be in a wheelchair, hit by a bus, or having a limb cut off. And they’re correct, this is for TOTAL disability.
But what is a PARTIAL DISABILITY? For many insurance carriers, this will include a variety of:
- 15% loss of income
- 15% loss of time
- Loss of 1 major job duty
The client is much more likely to meet the definition of a partial disability, thus, it is worth looking into the extra protection.
Q: Do I need any riders on my disability income policy?
Here are a few riders worth looking into:
- Own Occupation
- Non-cancellable, guaranteed renewable
- Basic/Enhanced Residual Riders
- Cost of Living Adjustment (COLA)
- Future Increase Option (FIO)
Q: What factors into pricing a disability policy?
- Age
- Health
- Occupation type and duties
- Benefit period and monthly benefit amount
- Elimination period
- Benefit age and length
- Riders
Q: What is the best age to purchase long-term care insurance?
We usually see the best pricing for those applying age 45-65.
We can insure up to age 75, and some carriers up to age 80.
What triggers long-term care insurance?
When the insured hits 2 / 6 Activities of Daily Living (ADLs), your benefit will pay out after the elimination period of your choosing.
The 6 ADLs include:
- Eating
- Bathing
- Transferring
- Dressing
- Toileting
- Continence
Traditional long-term care or linked benefit?
Every scenario is different, along with product availability and pricing varying state to state. But most times, linked/asset based is the way to go.
We will walk you through your options.
- Single or joint?
- What type of care? nursing home? at home?
- Is death benefit remotely important?
- Funding – single premium, 10 pay? Qualified, Non-qualified?
- Definition of Policy – Traditional LTC, Life with Chronic Illness Rider or LTC Rider, Hybrid/AssetBased
Why would a client want an annuity?
Annuities have many different features and guarantees.
The main objective of an annuity is to guarantee payments (income) for a certain amount of years from a certain amount of premium. Annuities can be a great addition to the fixed income side of your retirement plan.
How do you fund an annuity?
An annuity can be funded in many different ways.
- 401k
- 403b
- 457b
- State/government-owned pension
- Deferred comp plan
- Cash
- Savings
- IRA
- ROTH IRA
What annuities does BC offer?
At BC Brokerage, we currently offer:
- Fixed Annuities
- Fixed Indexed Annuities (FIA)
- Muli-Year Guaranteed Annuity (MYGA)
- Single Premium Income Annuity (SPIA)
Who looks into an annuity?
- Those between the ages of 50-70 who are looking for guaranteed income in retirement
- Those who are looking for guarantee of principal
- Those who are looking for Long Term Care (LTC) coverage without medical underwriting
- Those who have a corporate pension with a cash-out/deferred compensation option at retirement age
- Those considering medicare planning (5-year look back)
Visit the BC Brokerage website, www.bc-brokerage.com, to learn more.
To make Wealthtender free for readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a conflict of interest when we favor their promotion over others. Read our editorial policy and terms of service to learn more. Wealthtender is not a client of these financial services providers.
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