Solutions

Every Plan Needs an Optimal Solution

Annuities, life insurance and long-term care solutions serve the purpose of supporting a client-centric comprehensive plan.

 

PCN delivers unbiased viable protective insurance solutions in order to meet optimal income, legacy and extended health care planning needs.

 

Annuities

Why Utilize Annuities?

An annuity can address a broad range of financial needs, from providing resilience and predictability in a financial plan to solving for longevity risk. PCN’s team of annuity consultants provide viable annuity options that can play a key role in retirement income planning, legacy planning and fixed income portfolio diversification for your clients.

How PCN Helps You Succeed

annuities-icon-blue.png

Like most investments, annuities aren’t one-size-fits all. That’s why it’s essential to establish the specific goals your clients want to achieve through an annuity, and then select the strategies that best fit their needs. PCN can help you explore what annuity strategies could enhance the client’s financial plan.

SPIA / DIA

SPIA / DIA

Provides income to the annuitant for a specified number of years or based on life expectancy (joint lifetime income options - e.g., husband and wife - are available).

Income payments can begin within 1 year of purchase (SPIA) or can be deferred more than 1 year and typically much longer (DIA).

Income payments are determined by interest rates and life expectancy of the annuitant at the time of policy issue.

Pros: 

  • Simple

  • Guaranteed income, and often the most efficient way to convert assets to guaranteed income

  • DIA: Deferring payments allows for higher percentage income payouts

SPIA / DIA Pros
SPIA / DIA Drawbacks

Cons: 

  • Little to no flexibility with the asset or income election date after purchase

  • DIA: no account value growth during deferral years

More...

Fixed Annuity

A deferred annuity that provides: 

  • Guaranteed tax-deferred growth at a fixed
    interest rate 

  • Principal protection 

  • A death benefit

Pros: 

  • Growth is guaranteed

  • No market risk to principal

  • No explicit fees, unless you elect
    an optional rider

Fixed Annuity Pros
Fixed Annuity Drawbacks

Con: 

  • Earning potential is relatively low compared to other annuity type

More...

 
 

Indexed Annuity

A deferred annuity that provides: 

  • Tax-deferred growth linked to an index’s performance limited by a cap or participation rate 

  • Principal protection 

  • A death benefit 

  • Guaranteed lifetime income options

Pros: 

  • Offers higher growth potential than a fixed annuity

  • No market risk to principal

  • Flexibility to reallocate across index strategies annually 

  • No explicit fees, unless you elect an optional rider

Indexed Annuity Pros
Indexed Annuity Drawbacks

Con: 

  • Growth is not guaranteed

More...

Registered Index Linked Annuity

A deferred annuity that provides: 

  • Tax-deferred growth linked to an index’s performance limited by a cap or participation rate 

  • Some principal protection from market loss limited by a floor, buffer or downside participation rate

  • A death benefit 

  • Guaranteed lifetime income options

Pros: 

  • Offers higher growth potential than an indexed annuity

  • Offers some downside market protection 

  • Flexibility to reallocate across index strategies annually 

  • No explicit fees, unless you elect an optional rider

Registered Index Linked Annuity Pros
Registered Index Linked Annuity Drawbacks

Cons: 

  • Growth is not guaranteed

  • Potential for loss

More...

 

Life Insurance

Why Leverage Life Insurance?

Life insurance solutions can help clients transfer wealth to beneficiaries on a tax-efficient basis. Also, these solutions can be used to fund business succession plans, provide individual supplemental retirement income and offer a tax-free source of income upon the passing of the insured. PCN's life insurance team are ready to assist you with meeting your client's life insurance planning needs.

Life-Insurance-Icon-blue.png

How PCN Helps You Succeed

Gain concierge-level services including impaired-risk placement, wealth transfer strategies and estate planning benefits. PCN is able to help review your book of business to identify potential new, unbiased and beneficial opportunities. Avoid unwanted complications as PCN’s team of insurance experts carefully manage intricate cases and provide optimal support for you and your clients.

SPIA / DIA

Term Life

  • Typically the most affordable life insurance option. 

  • Term insurance covers an individual over a set period of time (e.g., 20 years)

  • If the covered individual were to die during this period, the chosen beneficiaries would collect the face value of the benefits

Pros: 

  • Affordable

  • Simple

  • Short-term option

Term Life Pros
Term Life Drawbacks

Cons: 

  • Premium may vary over the life of the policy

  • No savings or investment component

More...

Whole Life

  • Popular form of permanent life insurance, covering an  individual for their lifetime

  • Offers both a death benefit and a savings component

  • Premium remains the same throughout the lifetime of the policy, even as the insured individual gets older or experiences health issues

  • Oftentimes referred to as cash-value insurance since part of the premium is set aside to grow tax-deferred at a fixed interest rate

Pros: 

  • Premium remains constant for lifetime of policy

  • Tax-deferred savings component

Whole Life Pros
Whole Life Drawbacks

Con: 

  • Lack of flexibility

More...

Universal Life

  • A permanent life insurance option that covers an individual for their lifetime and offers both a death benefit and a savings component

  • Flexible & adjustable premiums and death benefit 

  • Tax-deferred savings growth that fluctuates with interest rates (above a minimum rate)

Pros: 

  • Flexibility

  • Tax-deferred savings component

Universal Life Pros
Universal Life Drawbacks

Cons: 

  • Higher cost

  • Potential for low growth periods

More...

Indexed / Variable Universal Life

  • A permanent life insurance option that covers an individual for their lifetime and offers both a death benefit and an investment component

  • Flexible & adjustable premiums and death benefit 

  • Flexible tax-deferred investment component linked to market performance: 

    • IUL: Linked to an index’s performance with some participation in the upside while providing downside protection 

    • VUL: Invested in subaccounts to participate fully in the upside and downside of the market

Pros: 

  • Investment opportunities allowing for market exposure and growth

  • Flexibility

  • IUL only: Protection from downside market losses

Indexed / Variable Universal Life Pros
Indexed / Variable Universal Life Drawbacks

Cons: 

  • Higher risk than other permanent life insurance options

  • Higher cost

  • IUL: Participation in the index (e.g., cap) may vary 

  • VUL: Potential for loss

More...

Long-Term Care

 
ltc-icon-blue.png

Why Incorporate Long-Term Care Planning?

Long-term care insurance (LTC) provides tax-free income for costs incurred due to an unforeseen long-term health issue. This guaranteed income stream can provide your client with safety and care while protecting the physical, emotional, and financial well-being of their family. PCN's team of long-term care specialists can help create a thoughtful plan to protect your client and their loved ones.

How PCN Helps You Succeed

SPIA / DIA

The overwhelming cost, time and emotional burden of managing a long-term care event weighs on the hearts and minds of many clients. PCN helps you put the power of choice back into their hands by executing a Long-Term Care planning process to help protect their personal dignity, family finances and those they care for most in a potential time of need.

Traditional LTC Insurance

Pros: 

  • Least expensive LTC insurance to get started

  • Benefit flexibility

  • Complies with state partnership programs

Traditional LTC Insurance Pros
  • Provides a guaranteed tax-free income stream
    to cover LTC Expenses

  • Premiums are deductible as medical insurance
    (limits apply)

  • Full underwriting

Traditional LTC Insurance Drawbacks

Cons: 

  • Premiums are subject to future increases

  • No benefits are paid if no LTC claim is made

More...

Asset-Based LTC Insurance

Pros: 

  • Guaranteed premiums 

  • Cash value component

  • Life insurance death benefit if policy is not used for LTC claim

Asset-Based LTC Insurance Pros
Asset-Based LTC Insurance Drawbacks

Con: 

  • While they remain constant, premiums are higher than
    traditional LTC

Life Insurance Chassis

  • Provides a guaranteed tax-free income stream to cover LTC Expenses

  • Linked to a life insurance policy 

  • Single Premium or Flex Pay options available

  • Leverages existing assets 4-5 times or more for
    LTC coverage

  • Cash value 

  • Tax-free death benefit

  • Simplified or full underwriting

More...

Asset-Based LTC Insurance

Pros: 

  • Guaranteed premiums 

  • Cash value component

  • Annuity death benefit if policy is not used for LTC claim

  • Simplified underwriting typically allows more people to qualify

Asset-Based LTC Insurance Pros
Asset-Based LTC Insurance Drawbacks

Cons: 

  • While they remain constant, premiums are higher than
    traditional LTC 

  • Lower leveraging of assets than life chassis ABLTC insurance

Annuity Chassis

  • Provides a guaranteed tax-free income stream to cover LTC Expenses

  • Linked to an annuity contract

  • Single Premium 

  • Leverages existing assets 2-3x or more for LTC coverage

  • Cash Value 

  • Death Benefit

  • Simplified Underwriting

  • Tax-advantaged treatment for non-qualified funds

More...

Who-We-Support-decorative.png