kai-zen enrollment tutorial three steps to closing the sale! · kai-zen enrollment tutorial three...

Kai-Zen Enrollment TutorialThree Steps to

Closing the Sale!

Step 1(for NLG/LSW Only)

LET ’S GET STARTED – MEDICAL UNDERWRITING

Underwriting Your Client for Kai-Zen

Your client says YES – so you want to make sure they qualify medically (standard or better health) before they write a check

Download the carrier forms (list below) from nationallifegroup.com website (or if you are not licensed yet, please contact your general agent for assistance)

◦ Informal Inquiry Form (#1386)◦ HIV Notice &Consent Form (#1443 – state specific)◦ HIPPA Form (#8164)◦ Pre-notification Form (#6496)◦ Agent/Producer Report Form (#8121 – part of the application kit or for NY clients

form #9212)

Sample forms and how to complete them starting next slide

Informal Application -form 1386 – not State specific

Helpful info in case carrier needs to order medical records

Insured Signs and Dates

HIPAA and HIV Notice –REQUIRED forms – HIV Notice is State Specific!

Please have insured PRINT NAME AND SIGN – NEEDS BOTH DATE OF BIRTH AND CURRENT DATE

Agent Report needed to build case correctly – Grace Barnard (NIW Agent) should be on the report for the 30% required split for Kai-Zen

When you submit your informal forms to [email protected] copy [email protected] and we will get our agent’s signature and submit to NLG

Please make sure these two sections are completed

mailto:[email protected]

Where do I send the forms

Submit all the listed forms DIRECTLY to [email protected]

And COPY [email protected] so we can start tracking the case to close.

Once we receive a copy of your case, we will get the Agent’s report signed by our agent and submit the updated Agent report to NLG to attach to your case.



Either before or right after you submit your informal forms to the NLG/LSW, you or your General Agent should order a paramedical exam for your client through one of the approved paramedical companies (see carrier underwriting guide for approved companies)

In most cases, a paramedical exam will be your first step, and IF medical records are needed, the carrier will order those or ask your general agent to order, once they determine if they are needed.

Order Exam and Medical Records

Step 1 Completed Let’s get an Offer

You or your General Agent should work with the carrier to get the best offer for your client. Things to do:

◦ Make sure you answer all questions/requests, etc. the carrier sends out in a timely manner

◦ If you know your client has gone to the doctor recently for some medical issues, you might want to be proactive and order medical records from that doctor

◦ Make sure you complete ALL the blanks on all the forms (including names of doctors, phone numbers, etc.)

Once you get your informal medical offer, start Step II of the process.


YOU GOT AN OFFER OF STANDARD OR BET TER….**

WHAT DO YOU DO NOW?

* * I N S O M E C A S E S K A I - Z E N W O R K S F O R S U B S T A N D A R D M E D I C A L R A T I N G S ,

C O N T A C T N I W F O R S P E C I A L C A S E S

Final IlustrationsObtain a final carrier and Kai-Zen illustration from NIW.

Just email [email protected] for your illustrations and include the information below

This will give you the final contribution amount for your client so you can close the deal!

Here’s what the email should contain:◦ Insured Name◦ Gender◦ Agent Name◦ Insured DOB (remember NLG requires we run client’s age 6 month from funding date – for example if Tranche funding date is Nov 1

(date lender pays premiums) and insured’s birthday is Feb 2 – that client will be a year OLDER for insurance purposes)

◦ State (state client resides in)◦ Death Benefit Amount◦ Informal Medical offer from carrier (please provide a copy from the carrier)

If the insured has a specific amount they can contribute each year, and you want us to back into a death benefit amount, please indicate that on your email. Please note for death benefits above $4M, insured will need to provide proof of net worth.



NOW I T ’S T IME TO MEET THE CL IENT, PREPARE THE PAPERWORK AND COLLECT A CHECK

CLOSE THE SALE!!Set up a meeting with your client to complete the documents from the www.kaizenplan.com website, complete and sign the formal application and forms and pick up the first year contribution check and other required info.

Kai-Zen Insurance Trust (please make sure you have the current trust – trust documents change each group)

Kai-Zen Acknowledgement and Disclosure (same as above)Kai-Zen Master Trust (this is for client review only – does not need to be signed by anyone – no

example)Formal Application and forms (see list next page)Enrollment Checklist (shows additional info you need to send with paperwork to NIW/Kaizen Plan

Advisors)

See next pages for sample documents and

instructions and examples of how to complete.

http://www.kaizenplan.com/

Download Carrier Application and Related Forms

For National Life group and LSW cases go to www.nationallifegroup.comIf you are not yet licensed with NLG yourself contact your General Agent or NIW for assistance.

State specific application (state client resides in) form 8121 for LSW or 9212 for NLG or NY resident

Accelerated Benefits Forms (ABR) state specific – (pitfall state of CA has MULTIPLE please make sure you get them all)

Replacement Form 8027 (not state specific) EXCEPT for CA – additional form 20218

NLG HOLD HARMLESS form 8656 (not state specific)

http://www.nationallifegroup.com/

Kai-Zen Insurance Trust (example)Page 1

Name of trust is normally insured’s name

Date trust is signed

Settlor is normally the insured

Have insured/settlor initial EVERY page

Kai-Zen Insurance Trust (example) Page 2

Purpose. In most cases, the purpose is “executive benefit plan” – for other purposes there may be other requirements or forms needed – contact NIW

Don’t forget to have insured/settlor initial each selection and page


Normally the settlor of the trust is the insured person. The insured person’s employer may be the settlor in the case of Key Man Insurance.

Trust Protectors are normally used when the trust is irrevocable and the settlor has no rights or control over the trust. Therefore, it would be waived. However, the client can choose a trust protector if they want an extra layer of protection in case of settlor incapacity.


Most of these trusts are REVOCABLE if the insured is looking to take income out once the loan is paid off. If client wants to get the insurance policy OUT of their estate then they would choose Irrevocable

Don’t forget to have settlor/insured initial the bottom of each page


Amount of Total Death Benefit

Annual Insured Contribution – from the Kai-Zen proposal/spreadsheet

Initials of Settlor


This section allows the insured/settlor to name the beneficiary(ies) who will receive the proceeds of the death benefit. If the insured/settlor wishes to name a primary and contingent, just have them write or type the words primary or contingent next to the specific beneficiary listed

Make sure insured/settlor initials each selection and bottom of page


(please note some of the trust pages were left out of the examples as they were either just disclosure type info or didn’t need any action)

Normally complete with the name of the insureds primary beneficiary listed on page 6

This tells the trustee who to distribute living benefits to while the insured is still living – normally it would be the insured person or settlor (which in most cases is the same person)

This tells the trustee that the insured/settlor will give direction as to how distribute any distributions including income from policy loans during the life of the insured person. Normally the trustee would ONLY have sole discretion in an irrevocable trust scenario


(please note some of the trust pages were left out of the examples as they were either just disclosure type info or didn’t need any action)

Name address of settlor and signature

Please remember to have insured/settlor DATE above their signature

Insured/Settlors Initials on bottom of EVERY page

Kai-Zen Acknowledgement & Disclosure (Example) Page 1

Complete insured name and address here

Please have insured read the entire disclosure to be aware of any risks and requirements of the strategy

Kai-Zen Acknowledgement & Disclosure (Example)

Page 3 & 4 of Disclosure

Optional information –Advisor could include you the agent

Print Name, Signature and date

Key Things to Remember Collecting Final Paperwork and Check

Pitfalls to watch out for…..things that could hold up your case from closing

If the insured or insured’s spouse is SETTLOR of the Insurance Trust (owner of the policy), the check must be drawn on PERSONAL Account of the insured

If client is applying for MORE than $4M in death benefit – NLG will require at least a $5M net worth and proof of net worth via tax returns and 3rd party financial statement with supporting statements, including bank and brokerage statements

If purpose of insurance is Key Man or Buy Sell or TRIZEN –please contact NIW for correct forms as additional forms and requirements are needed

Obtain a LEGIBLE copy of insured/settlors DL – address on the DL must match address on carrier application – if it does not please contact NIW or see Enrollment Checklist for what you need to do

Formal Application and Forms – Complete all information per the example

Owner and Beneficiary is the Insurance Trust – ONLY complete name of trust – NIW will complete the remaining info once the trust is set up with trustee

Part D – NIW will complete the FACE amount and the APB amount – once we have final medical offer

NIW will complete the planned premium once we have final illustration

Please completeParts H and G

Leave these two pages blank if you had your client complete a recent paramedical exam – may be needed if exam is older than 6 months

INSURED SIGNS ONLY WHERE IT SAYS INSURED THE TRUST IS THE OWNER – SO NIW WILL HAVE THE TRUSTEE SIGN WHERE IT SAYS APPLICANT/OWNER

ABR Forms do NOT need insured signature – ONLY agent and then NIW will get Trustee to sign as Applicant/Owner

ONLY agent signs this form along with the trustee – Insured does NOT need to sign

This form only trustee signs – NIW can prepare one if you don’t want to send – but insured should at least be aware of allocation selections

Allocation selection is selected to match the Kai-Zen illustration – all are the same

Insured DOES sign this form where it says INSURED only –TRUSTEE will sign where it says Policy Owner

Check and ID are required to begin processing the trust documents and application

Valid and Legible copy of ID is required – if address does NOT match address on the carrier application we will need back up proof

How to make the check payable –name of trust changes EACH group so make sure you have the most recent checklist

Lender will not accept a check drawn on any other account other than one with the settlor’s name (settlor of the trust is normally the insured –see below for other variations)

Send check to this address –all other forms and documents can be scanned and emailed – we do not need originals

Please note we have a very short window to process these cases so once the forms and the check are received they are processed quickly – therefore once the trust is set up the trustee has performed their duty so the trustee fees are NON refundable if the client decides to pull out or if they are declined for insurance

Please send all forms via email to [email protected] and OVERNIGHT the check to:

Kai-Zen Plan Advisors at 4975 Preston Park Blvd, Suite 425, Plano, TX 75093

972-755-1582

YOU ARE DONE!! GOOD JOB!


kai-zen enrollment tutorial three steps to closing the sale! · kai-zen enrollment tutorial three...

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