BALANCING ACT CONCEPT KIT CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS TERM AND PERMANENT LIFE INSURANCE NOT FOR CONSUMER USE.

Transcription

1 CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS TERM AND PERMANENT LIFE INSURANCE BALANCING ACT CONCEPT KIT NOT FOR CONSUMER USE Ed. 09/2014 Exp. 03/29/2016 [ML# ]

2 DID YOU KNOW? A balanced solution allows you to address your clients immediate and future needs in a cost-effective way. This kit has been designed to help you develop an effective, systematic approach to meeting with clients and prospects and discussing a balanced approach to their needs. KEY SECTIONS OF THE KIT: CONCEPT INTRODUCTION ACTION PLAN CLIENT PROFILES CLIENT CONVERSATION POINTS SAMPLE MATERIALS

3 CONCEPT KIT THE LIFE INSURANCE BALANCING ACT Most of your clients face a dilemma as they find insurance needs shifting. They can either: Insure their highest level of coverage needed, though it could be years from now, or Insure their lowest level, all but guaranteeing they ll be underinsured in the future. Whether they re clients who are considering buying insurance for the first time or ones who realize that their current policy isn t enough, finding the right balance is an important concept. Clients life insurance needs change over time Protecting Short- and Long-Term Needs Effi ciently and Economically Rather than use one policy, your clients can purchase a term policy and a permanent policy. The latter provides a base to address long-term protection needs while the former adds protection only while it s needed. Combining term and permanent policies is less expensive overall than buying one permanent policy with a higher level of coverage or having to buy a second term policy later in life after the first ends. CONCEPT KIT THE BALANCING ACT CONCEPT KIT FROM PRUDENTIAL This kit is designed to help you easily introduce the concept of the Balancing Act to your clients. The next page introduces an Action Plan with a step-by-step approach to implementing this concept to get you started quickly. ACTION PLAN

4 CONCEPT KIT Action Plan for Success The most successful way to approach the Balancing Act concept kit is to focus on ten clients or prospects at a time, following each of the steps below. Once you finish all of the steps with those clients, select ten more and then repeat all of the steps. TARGET CUSTOMERS REVIEW CLIENTS & PROSPECTS SEND LETTER OR FOLLOW-UP PHONE CALL Review the Client Profiles in the next section and select the client groups that provide the most opportunity. Step 1: With the profiles you ve chosen in mind, review your book of business and prospects to identify whom to contact. CONTACT Contact the client or prospect to introduce them to the idea and to set up a meeting. Step 2: Send a letter or to ten clients or prospects to introduce the Balancing Act concept. Prudential has provided a sample of each for your convenience. Step 3: Follow up your letter or with a phone call to check in with the client or prospect, ensure he or she got your or letter, and ask for a meeting to discuss the concept further. We ve provided talking points to use in the Conversation Points section PREPARE FOR MEETING CLIENT APPOINTMENT FOLLOW UP MEETING Once a meeting is scheduled, the focus shifts to what s needed to present the strategy and help them decide on a course of action. Step 4: Prepare for the meetings by ordering copies of material you ll need and run a special Balancing Act illustration. This special illustration compares two policies in combination vs. all term and all permanent. See the Balancing Act Illustrations flyer in the folder pocket for more information. Step 5: At the meeting, walk clients through the Life Is a Balancing Act consumer brochure and then discuss the solutions, using illustrations and product material. Again, we ve provided talking points in the Conversation Points section. Your Prudential wholesaler can walk you through the client brochure and how to present it to your clients. Step 6: Follow up with the clients afterward either to collect all of the necessary paperwork if they have decided to purchase a policy or to continue discussing the strategy, if needed. Following up with a call can help increase your closing rate.

5 CONCEPT KIT BALANCING ACT Client Profiles The Balancing Act concept helps clients address changing insurance needs over the course of multiple life events. As such, it can apply to a broad audience, though the types of policies and the proportion of term to perm can change depending on the client s life stage. Conducting a needs analysis is an important step to help qualify their needs. Some clients may already have one policy but realize that it s not enough. Adding another policy instead of replacing the one they already have can provide more flexibility in their coverage over time while addressing their current need for increased protection. HOW THE BALANCING ACT COULD WORK IN THEIR 20s These clients are just getting started with their lives. They may have fewer responsibilities in terms of house, marriage, and children but still need some protection now and more in the future. Clients who have a house or already have children will probably have a better idea already what they will need. With other clients, you may have to spend more time discussing their future needs. If clients have less income currently, they can buy more term and then convert part PERM of it to permanent later. TERM HOW THE BALANCING ACT COULD WORK IN THEIR 30s These clients may have started their family, have a house and a higher income, and have an increased coverage need overall. Clients may have greater income to protect but increased expenses as well. Achieving a cost-effective balance is important, and how you balance the term and perm policies will depend on long-term and short-term needs and how much income they have available. TERM PERM HOW THE BALANCING ACT COULD WORK 40s & BEYOND Many clients in this group will be in their highest earning years with peak protection needs. Clients will still need term insurance but for a shorter period of time and possibly with a reduced amount of coverage. Also, clients could buy more term but opt to convert it sooner. Permanent insurance could be more important to these clients. Their increased income and significant time horizon TERM PERM means accumulationoriented policies may be an appealing option.

6 CONCEPT KIT Conversation Points The following talking points can be used to introduce and discuss the Balancing Act concept with your clients. WHEN SETTING UP A MEETING You should have received a [letter/ ] from me recently. I sent it because I was reviewing your file, and given where you are in your life, I know your insurance needs are going to shift over time. I d like to discuss a strategy with you that I think could help provide protection for your short-term and long-term needs while balancing the cost with your budget. When would be a convenient time to discuss? AT THE START OF THE MEETING Thank you for meeting with me today. I d like to start off by discussing what your current needs are, based on your existing family, mortgage payments, etc. Then, we should talk about your long-term needs. After that, we can talk about how to balance those needs with your income and budget. MEETING WITH CLIENTS WHO DON T OWN LIFE INSURANCE As we discussed your needs earlier, I think it s clear that we need to find a way to address both your short- and long-term insurance needs during various phases of life. I d like to share an approach that will give you the appropriate coverage when you need it most, yet maintain a solid foundation throughout your lifetime. Present the Life Is a Balancing Act brochure. MEETING WITH CLIENTS WHO ALREADY OWN ONE POLICY TAKING THE NEXT STEP As we discussed earlier, congratulations on buying the policy you own; however, the policy may not be able to cover all of your needs as they shift over your lifetime. I d like to share an approach that will give you the appropriate coverage when you need it most. Best of all, it won t require you to replace your current policy. Present the Life Is a Balancing Act brochure. INTRODUCING THE ILLUSTRATIONS After reviewing the Life Is a Balancing Act client brochure, Just to give you an idea of how this approach could work for you, I had a few illustrations created to give us a better idea of what the coverage and premium payments could be in your case. Obviously, they can be adjusted, but I think they ll provide a good start. DECIDING ON A COURSE OF ACTION After reviewing the illustrations, Now that we ve discussed your insurance needs, talked about how two policies may work better for you than one, and seen what the numbers might look like, I d like to ask you what you think. Do you have any questions at this point? Is this an approach you want to pursue today?

7 SAMPLE MATERIAL In addition to the samples in this pocket, please go to PruXpress for convenient access to all of the material available for this concept.

8 Produced with the environment in mind Printed on Recycled Paper with 10% Post-Consumer Waste Life insurance is issued by The Prudential Insurance Company of America, Pruco Life Insurance Company (except in NY and/or NJ), and Pruco Life Insurance Company of New Jersey (in NY and/or NJ), all located in Newark, NJ. Each company is solely responsible for its own financial condition and contractual obligations. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/ dealer and/or insurance agency selling the policy, or by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. Securities and Insurance Products: Not Insured by FDIC or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities Prudential Financial, Inc. and its related entities Ed. 09/2014 Exp. 03/29/2016 [ML# ]