Increase Your Agency s. Life, Annuities, Long Term Care, and Disability Income Sales

Transcription

1 Increase Your Agency s Life, Annuities, Long Term Care, and Disability Income Sales

2 Table of Contents Introduction Business Development My Personal Approach Concepts I Share With Clients Marketing Strategy Financial Opportunity / Introduction

3 Introduction Your clients are purchasing life, annuities, long term care, and disability income insurance products from someone. Shouldn t they be purchasing these products from your agency? If they already are, is the production significant? 3 / Introduction

4 4 / Introduction

5 Insure the Important Things In Life You already help insure the things that are most important to your clients their car, motorcycle, home, boat, or perhaps even their jewelry. Your clients buy this type of coverage from you to protect what they have to ultimately replace these items should the unexpected occur. While these assets are expensive and have sentimental value, they can be easily insured and replaced. 5 / Introduction

6 You help your clients protect their prized assets from loss due to the unexpected. It s what you do and you do it exceptionally well. 6 / Introduction

7 Expand Beyond Property Casualty Coverage For most property casualty agencies, the extent of the protection provided is limited to personal lines and commercial products. But what about insuring a clients hopes and dreams for tomorrow and well into the future? 7 / Introduction

8 Securing your clients future and peace of mind is equally important. It s what I do and I do it exceptionally well. 8 / Introduction

9 Business Development

10 Let s Grow our Business Together As a financial insurance professional, I help address clients needs with strategies for basic protection, as well as income, estate, and business planning. I do this by utilizing life, annuities, long term care, and disability income insurance products offered by strong, stable, and secure carriers. 10 / Business Development

11 Carrier Partners 11 / Business Development

12 I am interested in partnering with you. I believe I can help significantly enhance the production flow you are seeing today. 12 / Business Development

13 My Personal Approach

14 My Approach Values Relationships In today s technology driven marketplace, clients are becoming more comfortable researching and buying insurance products online. What we both know, however, is that clients still prefer to purchase from a person, but only if that person brings value to the process and helps identify the right buying decision. 14 / My Personal Approach

15 My Approach Brings Great Value It all starts with a conversation. A conversation that forms the foundation for a true relationship. I spend ample time understanding my client s big picture. I am interested to know what concerns they have, where they are today, and what their hopes and dreams are for the future. I find out what is most important to the client and discover what they really need before I recommend a solution. I present solutions rather than sell products. 15 / My Personal Approach

16 In turn, I gain trust and confidence and become their sole resource for life, annuities, long term care, and disability insurance products. 16 / My Personal Approach

17 Concepts I Share With Clients

18 Identifying Your Clients Needs When you know a variety of solution-based concepts, you can easily identify needs you didn t initially know existed. Through conversation you may learn The client has concerns about paying for a child s education, which may prompt you to show how a properly funded permanent policy can provide funds in the future. You could discover the clients business relies heavily on one employee, and this could lead you to talk about key person insurance. Or, you might learn the client has concerns about outliving savings for retirement, which may prompt you to show how a properly funded permanent policy can also provide supplemental retirement income. 18 / Client Concepts

19 Client-Based Solutions Identifying all client needs can lead to additional sales, but most importantly, it tells the client you are listening closely to their personal story. I find that by presenting solutions around their personal story rather than selling products, I become their trusted advisor. 19 / Client Concepts

20 Concepts I May Share With Your Clients Life Insurance to Protect a Mortgage For most couples, a home is the largest purchase they will ever make. If one spouse should die unexpectedly, there s a good chance the surviving spouse would not be able to afford the full mortgage payment, putting a grieving family at risk of losing the familiarity and security of their home. 20 / Client Concepts

21 Using Life Insurance To Pay Off A Mortgage Meet Jeff and Irene. They took out a $300,000, 30-year loan to purchase their new home. If something happened to Jeff, Irene s income would not be enough for her to continue living in their current home. They are considering two solutions to protect their home and help pay off the mortgage if Jeff died unexpectedly. 21 / Client Concept: Jeff & Irene

22 Solution 1: 30-Year Term Policy Jeff purchases a 30 year term policy with a death benefit of $300,000. The annual premium is $850. FACE AMOUNT Life Insurance Death Benefit If Jeff died unexpectedly, Cindy could use the $300K death benefit to pay off the outstanding mortgage. Cindy can use the difference between the mortgage balance and the death benefit for other expenses Mortgage Balance YEARS 22 / Client Concept: Jeff & Irene

23 Solution 2: Universal Life Policy Jeff purchases a $300,000 Indexed Universal Life Policy with a death benefit that increases over time. He chooses to fund his policy with an annual premium of $6,000. FACE AMOUNT Mortgage Balance Life Insurance Death Benefit Cash Surrender Value YEARS If Jeff died unexpectedly, Cindy could use the death benefit to pay off the outstanding mortgage. In year 20, based on how Jeff funded his policy, his cash value equals his outstanding mortgage balance. Jeff has the option to use the funds to pay his mortgage off early. 23 / Client Concept: Jeff & Irene

24 Life Insurance to Support Your Clients Needs Meet Brad and Angie. Brad, age 40, is the primary breadwinner for his family of five and plans to retire from his current job as a junior executive at age 70. He and his wife, Angie, have a daughter, age 12 and twins, age 7. All three children are expected to attend college. Their mortgage, is $300,000 with 20 years remaining. Brad and Angie s life insurance needs include income replacement, mortgage pay off, and college tuition, bringing their total coverage requirements to $2.1M. 24 / Client Concept: Brad & Angie

25 The Solution: Ladder Term Life Policies Laddered term life policies help attain appropriate coverage for each pre-determined need. As coverage expires, the total coverage is less, and future premiums are lower. Initial Coverage After 10 Years After 15 Years After 20 Years 30 Year Term for Income Replacement 20 Year Term for Mortgage Payoff 15 Year Term for College Tuition for Twins 10 Year Term for College Tuition for Daughter $1.5M $1.5M $1.5M $1.5M $300K $300K $300K $0 $100K $100K $0 $0 $200K $0 $0 $0 Total Coverage Needed $2.1M $1.9M $1.8M $1.5M 25 / Client Concept: Brad & Angie

26 Life Insurance Based On Vitality Meet John. John is 55 and looking for $1M in life insurance coverage. John is an avid runner, he eats well, and he completes routine physicals. John takes great pride in his health and overall well-being. 26 / Client Concept: John

27 Solution: Live Healthy and Save Money John is an excellent candidate for John Hancock s life insurance solutions with Vitality. The Vitality program is an innovative life insurance solution that helps secure a client s financial future while supporting the pursuit of a healthier, longer, life. The healthier the lifestyle, the more clients save and the greater the rewards. He ll earn Vitality points for the things he does to stay healthy, like exercising, getting annual screenings, and staying tobacco free. He ll receive a free Fitbit to help track his progress towards a healthier life. The Vitality points he earns will reward him with discounted premiums. Along with premium savings, he can also earn valuable rewards and discounts on health-related gear, travel, shopping, and entertainment. 27 / Client Concept: John

28 A Single Payment to Lock In A Client s Protection Meet Julie. Julie, age 50, has a need for $500,000 of life insurance coverage and would like to make a single payment premium. She chooses to purchase a Guaranteed Universal Life (GUL) policy that offers a lifetime guarantee. 28 / Client Concept: Julie

29 Solution: The Single Payment By age 80, Julie will have paid $44,312 less by paying a single premium. The longer Julie lives, the greater the cumulative savings will be. The annual premium for this policy would be $4,975 assuming payments were made in all years. Another option Julie has is to purchase a (GUL) policy with a single premium of $104,938. Julie recently received. A Comparison of Cumulative Premiums $4,975 Annually Paid in All Years $104,938 Single Premium 10 years, age 60 $49,750 $104, years, age 70 $99,500 $104, years, age 80 $149,250 $104,938 Total Savings $44,312 *This example is fictitious in nature and only represents a situation a consumer could face. 29 / Client Concept: Julie

30 Lifetime Protection Without A Lifetime of Payments Meet Chris. Chris is 45, has a need for $1 million of life insurance coverage, and chooses to purchase a Guaranteed Universal Life (GUL) policy that offers a lifetime guarantee. 30 / Client Concept: Chris

31 Solution: Guaranteed Universal Life Policy By age 75, Chris will have paid $56,980 less by choosing the 20-year paid up plan. The longer Chris lives, the greater the cumulative savings will be. Chris annual payments for this Guaranteed Universal Life (GUL) policy would be $10,296, assuming payments were made in all years. Chris likes the idea of paying his policy premiums over a shortened time frame so he doesn t have to worry about premium payments once he is ready to retire at age 65. His premium based on a 20-year payment plan would be $12,595 annually. A Comparison of Cumulative Premiums $10,296 Annually Paid in All Years 10 years, age 55 $102,960 $125, years, age 65 $205,920 $251, years, age 75 $308,880 $251, years, age 85 $411,840 $251,900 $12,595 Annual Paid for 20 Years *This illustration is for example purposes only. The example shown is fictitious in nature and represents a situation a consumer could face. 31 / Client Concept: Chris

32 Informal Business Valuations and Buy-Sell Reviews If you asked a small business owner to identify the primary source of their retirement funds, they ll likely point to the business they ve nurtured and grown over the years. Most small business owners, though, have never had a formal valuation of their business nor have a plan in place to protect its worth. 32 / Client Concepts

33 Informal Business Valuations and Buy-Sell Reviews The Principal Financial Group offers complimentary business planning services for advisors to help their clients with their business planning needs. The report from these services provides important information to business owners regarding the value of his or her business and the impact that value can have on many aspects of their financial future. At no cost, clients will receive an informal business valuation prepared by Principal s Advanced Solutions team of professionals including CPA s and Consultants using five commonly used methodologies. The report also provides suggested solutions based on the unique needs of the business. 33 / Client Concepts

34 Informal Business Valuations and Buy-Sell Reviews What sales opportunities can be uncovered? Exit Planning and Buy-Sell Establish and Fund New Buy-Sell Plans Matching up Existing Agreement, Valuation, and Funding Business Protection Key Person (Life and Disability Insurance) Loan Protection Business Overhead Expense Retirement Executive Benefits Owner Benefits Estate Planning Inheritance Equalization Family Transfers Estate Tax and Exposure Determination Additional Protection Survivor Income Individual Disability Income Coverage 34 / Client Concepts

35 Marketing Strategy

36 Creating Opportunity Together As a property casualty agency owner, you have clients that look to you to provide all of their insurance needs. That protection should not stop with personal and commercial solutions. You have clients with real needs for life, annuities, long term care, and disability income coverage. Your competition in the direct channel knows this to be true. They have spent billions developing product, creating marketing collateral, training their agency base, and on consumer marketing. Your clients simply can t escape their message about the importance of these products. As a financial insurance professional, I am well positioned to help your agency compete in this space. I can help your clients find the right solutions for their needs, all the while creating greater brand and product awareness for your agency and a revenue stream from the sale of financial services products that will pass through directly to your bottom line. 36 / Marketing Strategy

37 Creating Opportunity Together How will I achieve this? As your strategic partner for financial services, I will work as an extension of your team, helping your clients find the right solutions and carriers for their financial concerns. By leveraging technology, you will know what clients I m working with and the status of each opportunity. 37 / Marketing Strategy

38 Creating Opportunity Together How will I help open up real opportunity? I am partnered with Brightbox Expand, an intelligent brand-building and lead generation marketing platform specifically designed to market life, annuities, long term care, and disability income products to your prospects and existing clients. The program will leverage the client data in your agency management system (prospects and existing clients) to let them know, by the masses, that you can help with these product lines. This will lead to client awareness that you are a full service agency capable of handling all their insurance needs, the rejuvenation of idle leads in your database, and a second, third, or fourth sale with your existing clients. 38 / Marketing Strategy

39 Sample Marketing Campaigns sample sample sample 39 / Marketing Strategy

40 Brightbox Expand will be a game changer for your business and will position our partnership for financial success. Is the financial opportunity real? 40 / Financial Opportunity

41 Financial Opportunity

42 Untapped Revenue Adding life, annuities, long term care, and disability income sales to your product offering will enhance your overall revenue stream. I encourage you to complete the enclosed P&C to Life Opportunity form. I will use this information to provide you with useful data to gauge how real the financial opportunity is for your agency. 42 / Financial Opportunity

43 Your Agency Has Untapped Potential P&C to Life Opportunity Form: Please fill out this form so we can better assess the financial opportunity for your agency. Your Data Your Name Address City State Zip Your Phone # P&C Data P&C Agency Name Personal Lines Total # of Clients % High Net Worth % Middle Net Worth % Moderate Net Worth Response Rate Close Ratio Commercial Lines Total # of Clients % Small % Medium % Large Response Rate Close Ratio 43 / Financial Opportunity