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Rothish Frequently Asked Questions
Client Qualification Questions
What is the minimum policy size for Rothish?
Yes. $1MM face amount.
What is the minimum client contribution for Rothish?
$36,000/year x 10 years.
Is there a minimum net worth requirement with Rothish?
For face amounts up to $4MM, no.
However, there is an income requirement, which is the greater of:
1. Household income of $200K
2. Four times the client contribution amount
Is there a minimum income requirement with Rothish?
Yes. Household income must be the greater of:
1. Household income of $200K
2. Four times the client contribution amount
Is there a maximum policy size with Rothish?
For this program's financial underwriting requirements, the maximum face amount is $4MM.
For Rothish loan designs with face amounts larger than $4MM, traditional premium financing underwriting requirements apply in terms of net worth, liquidity, etc.
Policy Design Questions
How does Rothish compare to a non-financed policy?
Here's an example:
*Client is a 45-year old male
*Preferred non-tobacco health rating
*Product: SummitLife
*Illustrated using S&P 500 Point-To-Point Cap Focus
*Client contributes the same $50,000/year x 10 years
Rothish Policy vs. Non-Financed Policy
Face Amount:
*$2,593,668 (Rothish)
*$1,000,000 (Non-Financed Policy)
Annual Income Drawdowns:
*$150,292 (Rothish... 44% more than non-financed)
*$104,139 (Non-Financed Policy)
Net Target To Agent AFTER Lionsmark 30% Split:
*$41,812 (Rothish... almost 2X more)
*$23,030 (Non-Financed Policy)
How does Rothish compare to a non-insurance based investment?
Here's an example:
*Client is a 45-year old male
Rothish Policy:
*Preferred non-tobacco health rating
*Product: SummitLife
*Illustrated using S&P 500 Point-To-Point Cap Focus
*Client contributes the same $50,000/year x 10 years
Taxable Investment Account:
*25% capital gains tax rate
*1% investment advisor fee
Rothish Policy vs. Taxable Investment Account
Face Amount:
*$2,593,668 (Rothish)
*$0 (Taxable investment account has no death benefit)
Total Cumulative Income Drawn Down (ages 65-84):
*$4,477,195 (Rothish)
*$1,121,711 (taxable investment account)
***THIS COMPARISON IS INCLUDED IN THE LIONSMARK PROPOSAL***
Can the client 1035 funds into the Rothish policy from another existing policy?
Yes.
Does Rothish require any outside collateral other than the policy?
No... unless the client's age and health rating make the policy CSV lower than the loan amount in a given year.
Proposal Questions
How does the agent obtain a Rothish Proposal?
Lionsmark has an online proposal platform where agents can obtain a customized proposal within less than 2 minutes. Just input your client info (which takes just over 1 minute, literally)... and click SUBMIT FORM... and 12 seconds later, you will have a carrier illustration AND a Rothish proposal. This proposal software is only accessible to approved agents.
What does it take for an agent to be "approved" to use the Rothish proposal software?
To request access to Lionsmark's online proposal software, you can request access by clicking on Illustrations in the menu bar at the top of this website, then scroll down and click on the yellow button that says REQUEST ACCESS TO THIS PROPOSAL SYSTEM.
FFS will evaluate your request and - if you get approved - grant you access to this proposal system. If you are not approved (due to lack of experience in this industry), you will be directed to contact your nearest upline that IS approved, and you will work with them jointly on your client case.
What does Lionsmark's Rothish proposal include?
*A ledger that explains the loan model
*A ledger that compares Rothish to investing in the market
*A graph that compares Rothish to investing in the market
*A detailed disclosure/description of all the elements in Rothish
***The Lionsmark proposal software also generates a carrier illustration for you to download as well.***
How long does it take to get a Rothish proposal?
If you have been approved by FFS to gain access to our proposal software, it takes just over one minute to input your client data... then once you click the SUBMIT FORM button, you will have both the Rothish proposal AND the carrier illustration in less than 12 seconds!
Does Rothish proposal software store the illustrations & proposals?
Yes! Once you are granted access to this proposal software, every time you log into the system, you can:
1. Run new proposals/illustrations
2. Access all of the proposals/illustrations you have ever run in the system
Lionsmark Responsibility Questions
Does Lionsmark provide training videos for agents?
Yes! On the main page of this website (LionsmarkCapital.com/FFS) there are training videos, including:
VIDEO #1: A full tutorial that explains:
1. What type of client Rothish is right for
2. Program highlights
3. A case study
4. How to present the Rothish proposal
5. How to access the proposal software present the proposal
VIDEO #2:
*A brief 1:41 minute explanation of the concept of premium financing
VIDEO #3:
*A brief 1:21 minute Rothish commercial
*This is a great "commercial" to email to a client
Does Lionsmark provide webinar trainings for agents?
Yes! Check with FFS for a schedule of our live webinar trainings.
Do FFS agents have a designated Lionsmark representative to assist them?
Yes. His information is as follows:
Name: Brian Johnson
Title: VP of National Accounts
Email: [email protected]
Phone: (972) 955-8947
Does Lionsmark have an internal support person that handles the premium financing underwriting with the carrier?
Yes. Her information is as follows:
Name: Kelly Crigger
Title: Director of Premium Financing Loans
Email: [email protected]
Phone: (949) 398-0088, ext. 103
Does Lionsmark assist in loan renewals each year?
Yes. For the 30% split, Lionsmark staff communicates with the agent, informing them of what lender requirements exist and directs the agent in next steps to renew the loan. Lionsmark staff does not talk directly to your client however... rather our staff supports the agent and is the "intermediary" between the carrier, the lender, and the agent.
For larger and more complicated cases, Darren Sugiyama will talk directly to the client, and in some cases, sell the entire case for the agent, as well as talk to the client each year at renewal. For this type of arrangement, the split is 50/50 (not 30/70). There is also a minimum case size requirement for this type of arrangement.
Does Lionsmark have an internal support person that handles loan renewals?
Yes. Her information is as follows:
Name: Abbey Strom
Title: Director of Loan Renewals
Email: [email protected]
Phone: (949) 398-0088, ext. 105
What is Lionsmark Capital's split arrangement with the agent?
Lionsmark goes on the carrier application as a co-agent of record for 30%, and the soliciting agent for 70%.
When filling out the NLG carrier application, please use the following info:
*Lionsmark Split: 30%
*Lionsmark NLG Agent code: 1989K
*Lionsmark Address: 11192 Meads, Orange, CA 92869
*Lionsmark Email: [email protected]
*Lionsmark Phone: (949) 398-0088
Banking Questions
How many banks does Lionsmark Capital work with?
We currently have 19 different banks/lenders on our platform. Each lender has a different borrowing rate configuration, financial requirements, loan size requirements, etc. Lionsmark Capital will select the bank/lender with the best loan rate and loan terms specific to each individual client.
How do Lionsmark's banks calculate the loan interest rate?
*Of our 19 lenders, each uses a different base rate (SOFR, 12mo CME TSOFR, 1yr Treasury, Prime, etc.)
*Rates typically reset annually at loan anniversary/renewal
*Some lenders have a 5-year fixed rate that is typically 1%-1.5% higher than an annually resetting rate loan
What happens if a client cannot pay their annual contribution due to future financial hardship?
In order for a client to qualify for any premium financing program, they should have liquid cash reserves to service the annual contribution in the event that their income and cash flow suffers in the future. However due to the flexibility of this program, the client could (in theory) skip a year’s contribution and post collateral instead, and pay the amount due in a future year. This would likely reduce the value of the financial outcome, but it would likely keep the policy in-force and the program could continue in its altered state. However this flexibility is what makes Rothish stand out amongst its competitors.
Comparisons To Other Premium Financing Programs
Does Rothish require the policy do be owned in a pooled trust?
No. Unlike other premium financing programs, the policy is NOT owned in a pooled trust... nor is it underwritten in tranches. The policy can independently be owned by:
*The insured person (as an individual)
*The insured person's trust
*LLC owned by the insured person
*S-corp owned by the insured person
Does the client have to wait for their policy to fund at the same time as other policies in a tranche?
No. The policy can fund as soon as the carrier notifies us of underwriting approval. At such point, the client can wire the first payment directly to the carrier.
Unlike some other premium financing programs, the policy is NOT owned in a pooled trust... nor is it underwritten in tranches. The policy can independently be owned by:
*The insured person (as an individual)
*The insured person's trust
*LLC owned by the insured person
*S-corp owned by the insured person
What are the policy ownership options?
Unlike some other premium financing programs out there, the policy does NOT need to be owned by a master trust in tranches with other policies.
The policy can be owned by:
*The insured person individually, or...
*An LLC managed by the insured person, or...
*An S-corp owned by the insured person, or...
*A family/living trust
Does Rothish use any Balance Sheet Riders?
No.
Why does this matter?
Balance Sheet Riders come at a cost to the client, which gets deducted from the policy cash value. This added expense creates a drag on the long-term accumulation of cash value, which also reduces the income drawdowns from the policy value.
In addition, agent commissions are paid up front, just like a regular non-financed policy, so agent commission is NOT spread out over multiple years (like some other premium financing programs).
In fact, the target on Rothish cases is typically higher than the client contribution. Here's an example:
*45-year old male
*Preferred non-tobacco
*$50,000/year client contribution x 10 years
*$59,732 target
*$50,000 target paid in year 1
*$9,792 excess target paid in year 2 (because total target exceeds first-year premium)
Does agent commission pay out spread over 6 years, or up front?
Commissions are paid up front, just like a regular non-financed policy. We do NOT use any Balance Sheet Riders on Rothish designs, so agent commission is NOT spread out over multiple years (like some other premium financing programs).
In fact, the target on Rothish cases is typically higher than the client contribution. Here's an example:
*45-year old male
*Preferred non-tobacco
*$50,000/year client contribution x 10 years
*$59,732 target
*$50,000 target paid in year 1
*$9,792 excess target paid in year 2 (because total target exceeds first-year premium)
Does Rothish require any outside collateral?
In most cases, no. The reason is that due to the client paying some non-financed premiums in the beginning (and the bank starts funding in later years), the policy cash value has a chance to build up unencumbered by any third-party loan debt... so by the time the lender begins funding in later years, the policy cash value is greater than the loan balance in all years (in most cases) which allows the policy cash value to serve as the only collateral on the premium financing loan.
Does the policy death benefit need to be blended with term?
No, the policy uses 100% base permanent insurance. There is no need to blend in "additional protection benefit" like some other premium financing programs because Rothish's loan design is far more efficient.
What is Lionsmark Capital's split arrangement with the agent?
Lionsmark goes on the carrier application as a co-agent of record for 30%, and the soliciting agent for 70%.
When filling out the NLG carrier application, please use the following info:
*Lionsmark Split: 30%
*Lionsmark NLG Agent code: 1989K
*Lionsmark Address: 11192 Meads, Orange, CA 92869
*Lionsmark Email: [email protected]
*Lionsmark Phone: (949) 398-0088
How To Submit The Client Application (carrier & lender)
Should the agent check the "Premium Financing" box on the carrier application?
Yes. Although the financed premium doesn't start in the first year, the "intent" is to finance some premiums, hence the carrier(s) want the "Premium Financing" box to be checked "YES" on the carrier application
What does the agent need to do to submit the application (apply for the policy)?
CARRIER APPLICATION:
*Submit the application through the carrier's e-App system
*Include Lionsmark Capital as a co-agent of record at a 30% split
*Lionsmark's Agent code with NLG is: 1989K
*Lionsmark's address is: 11192 Meads, Orange, CA 92869
*Lionsmark's phone number is: (949) 398-0088
*Make sure you choose the S&P 500 Point-To-Point Cap Focus index allocation
*Please state that this application is under the Rothish Program
*If a paramed exam is required, indicate who will order the exam (the agent OR the carrier)
LIONSMARK CAPITAL PREMIUM FINANCING APPLICATION:
*Do this IMMEDIATELY AFTER you submit the e-App to the carrier...
1. Click on Apply For Policy in the menu bar at the top of this website.
2. Fill out the form and upload the required documents (instructions are provided on the form).
Policy Delivery & Lender Funding
What are final steps to put the policy in force AFTER carrier underwriting is completed?
Once the carrier's underwriting team approves the case, here are the final steps:
Step 1: Agent Informs Lionsmark
*Go to LionsmarkCapital.com/FFS
*Click on Policy Delivery in the menu at top of page
*Fill out final case design info
Step 2: Final Illustration
*Lionsmark creates a final illustration & a final Rothish proposal.
*Lionsmark circulates to agent & client for signatures via DocuSign.
*Lionsmark sends signed docs to carrier.
Step 3: Policy Delivery
*The carrier sends the delivery documents to the agent.
*Client signs.
*Agent sends to carrier.
Step 4: Client Pays Premium
*Client makes first-year premium payment.
*Policy is paid & in-force.
What happens when the lender/bank funding starts in later years?
In the month prior to the first year of lender/bank funding, the lender/bank will need the following items from the client:
*Two Years of Tax Returns
*Personal Financial Statement (PFS)
*Driver's License
Client will wire the annual contribution to the lender/bank (instead of the carrier), and the lender/bank will wire the full premium to the carrier.
