TC42625 (0908) For agent use only. Not for use with the general public.

Transcription

1 Welcome to the.. Life Cycle University Graduate Studies MODULE II: BUILDING YOUR FUTURE Presented by National Life Group & American Classic Agency Jennifer Warfield Director of Product Marketing & Sales TC42625 (0908) For agent use only. Not for use with the general public. 1

2 Today s Agenda Recap from Session 1 Marketing for Today Effective Seminar Sales Just the Facts and More! Retirement Checkup Analysis and Design Use your tools Building Your Future Saving for Retirement and College Featured Solution FlexLife IUL Presenting the Concepts Next session preview 2

3 Last Time Introduction to the program Our process: Using the Sales Cycle Marketing and sales scripts Protecting What s Important Client strategies, starting out Survivor Needs Fact Finder Featured solutions SecurePlus Provider with ABRs Conducting an annual review Life Insurance Checkup Rule of 72 Use it or lose it! 3

4 The Sales Cycle Identify the prospect Marketing Preapproach Approach the prospect Establish the relationship Discuss the process Establish goals and gather information Fact finding Analyze the information Develop solutions Develop and present the plan Objection handling Implement the plan Close the sale Service the plan Monitor and adjust Referrals and cross-sales sales opportunities Financial Planning: Process and Environment, Don A. Taylor and C. Bruce Worsham 4

5 Life Stages 1. Protecting What s Important 2. Building Your Future 3. Managing Your Retirement 4. Transferring Your Wealth 5

6 Applying the Sales Process 6

7 National Life Group s Key Tools 7

8 Key Tools and Materials Materials Personal Life Cycle Agent Guide, Initial Questionnaire, Retirement Checkup Agent Guide, Retirement Checkup Checklist, How to Profit from Your Seminar,

9 Key Tools and Materials Tools and Resources NationalLifeGroup.com Internal Sales Desk

10 Marketing Successfully The Pre-Approach and The Approach 10

11 Effective Seminar Sales How to make the most of your seminar activities 11

12 What is Seminar Marketing? Marketing method to attract qualified prospects Consultative and educational process Mass marketing approach to group education Short, concise, benefit-oriented program that solves problems An efficient way to convert qualified prospects into clients! 12

13 Benefits of Seminars Promote your business in a different way Warmer follow ups vs. cold calls Referral potential Promote the value of professionalism Stay in touch with current clients Keep up on the latest information Leverage your time and efforts 13

14 Planning Steps Develop the right attitude Set benchmarks for success Define your target market Create your budget Choose your topic Select your speakers Select date and time Find the right site Create your seminar marketing plan Develop your materials Conduct your seminar Convert attendees into clients Evaluate your success PRACTICE PRACTICE! 14

15 To help you along the way How to Profit From Your Seminar Agent Guide,

16 Seminar Do s and Don ts* DO offer refreshments DON T charge to attend DO select the right venue DON T hold the event at convention centers, or at your office DO choose a start time appealing to your audience DON T expect attendees to leave work to attend *Emerald Publications 16

17 Seminar Do s and Don ts* DO choose the right day or night DON T select the day of a holiday, major sporting event, election day, etc. DO make it easy to register and attend DON T entrust your registration to anyone who can t answer basic questions DO use appealing marketing pieces DON T cut corners on invitations DO present yourself! *Emerald Publications 17

18 National Life Group Resources Tax Free Retirement Seminar presentation Scripting Invitation, flyer, HTML Evaluation form 18

19 NationalLifeGroup.com Finding and using your sales cycle resources 19

20 20

21 Fact Finding 21

22 Four Objectives of Fact Finding 1. Get the facts 2. Do some advance suspecting 3. Reach the inner person 4. Build your prestige O. Alfred Granum, Barry Albertstein, Delia Alberstein, Building a Financial Services Clientele, p

23 (More Than) Just the Facts The Initial Questionnaire Retirement Checkup Checklist (Saving for Retirement, part 1) College Cost Worksheet 23

24 24

25 Pivot to the right fact finders based on your clients responses 25

26 The Retirement t Checkup 26

27 Your Retirement Checkup Resources: Marketing Guide and Checklist 27

28 Setting the Stage Set expectations with the client Explain to the client what you hope to achieve with this worksheet Determine whether are on track to accumulate enough retirement What income producing sources are available to them Discuss the power of tax deferral 28

29 Retirement Checklist Revisit the issues from the Initial Questionnaire 29

30 SAVING FOR RETIREMENT: Basic information on the client s current savings plan - When will you retire? - Will you retire when ready? - How much planning have you done? - Types of savings? - Confident that you have enough? - Tax efficiency? - Max to retirement t plans? - Concerns about retirement? - What about life insurance? SECTION 2: RETIREMENT NEEDS/GOALS - LINE 1: Monthly income need SECTION 2: RETIREMENT NEEDS/GOALS - LINE 2: Special savings needs 30

31 PAGE 2: CURRENT RETIREMENT PLAN PERSONAL RETIREMENT SAVINGS: Including IRAs, CDs, annuities, savings/money markets, etc. EMPLOYER-SPONSORED RETIREMENT PLANS LINE 3: Subtotal of personal savings and employer-sponsored plans LINE 4: Calculate the future value using Conversion Table A, Column A on page 3 (MULTIPLY LINE 3 x FACTOR) LINE 5: Current annual savings for retirement LINE 6: Calculate the future value using Conversion Table A, Column B NON PENSION ASSETS: Including real estate, business interests LINE 7: Subtotal of non-pension assets 31

32 So far, you ve helped the client determine: - Retirement needs and goals - Income sources to help fund retirement Now let s determine if the retirement plan will meet the retirement needs LINE 8: Total funds available (EQUALS LINE 4 + LINE 6 + LINE 7 LINE 2) LINE 9: Convert retirement assets to monthly income (LINE 8 x Conversion Rate in Table B) Find the difference between income desired and income available (SUBTRACT LINE 9 LINE 1) IF THERE IS A SHORTFALL - Consider IRAs, Roth IRAs, Permanent life insurance to accumulate supplemental retirement savings IF THERE IS NO SHORTFALL - Discuss the impact of taxes and inflation on the plan - Review the plan periodically CONSIDER OTHER NEEDS - Survivor needs - Long term care needs - Disability needs 32

33 The College Cost Worksheet 33

34 Use this form to help the client estimate college funding needs List the factors involved with planning for college expenses: - How long until children attend college? - Annual college cost - Number of years tuition - Plan to pay for college - Current savings SALES CONCEPTS: - How life insurance cash values can accumulate and provide education funds - Survivor benefits should take college expenses into consideration - Impact of paying for college on retirement 34

35 Case Analysis and Design What does it all mean? Interpreting your fact finding results 35

36 Classifying Your Clients 36

37 Stage Two Building Your Future Reaching for financial dreams For agent use only. Not for use with the general public. 37

38 Common Client Attributes Mid to late 30 s to early 40 s Income exceeds expenditures Stable cash flow Growing family and/or upgrading house Growing portfolio focused on long term growth Maximizing employer-sponsored opportunities Paying down debt 38

39 Common Client Needs Protection and Risk Management! Employer-sponsored benefits Life insurance Disability Medical Manage taxes through additional savings Tax-free, tax-deferred, taxable Protection from loss of spouse s income Education funding for children Primary Insurance Risk Protection from loss of income due to death or disability 39

40 Online Retirement Calculators College Funding Calculator Analysis Tools and Internal Sales Desk at Resources 40

41 NationalLifeGroup.com Online Calculators 41

42 Take Action Take full advantage of employer-sponsored retirement plans and company-provided benefits If client owns a business, use corporate dollars to purchase life, disability and medical coverage Potentially reduce current taxes by putting money in an IRA Set aside money for children s education expenses Consider personally owned life insurance for additional benefits 42

43 Featured Solution FlexLife IUL 43

44 Why FlexLife IUL? Indexed Universal Life allows upside potential for longer time horizons Downside protection against market downturns Cash accumulation for retirement and other savings needs Guaranteed lifetime income with LIBR Leverage premium dollars with riders 44

45 Your FlexLife Market Replacing SecurePlus Paragon Emerging affluent Business owners Looking for Supplemental retirement income Long term, tax-advantaged advantaged accumulation Guaranteed lifetime income Living benefits 45

46 Introducing FlexLife Improved Performance Accumulated values Income solves Large case policy values Special Enhancements Lower mortality charges Additional band at $3 million Interest enhancement Riders to help you sell Lifetime Income Benefit Rider Systematic Allocation Rider Accelerated Benefit Riders 46

47 FlexLife: Keeps What s Good Same 4 great indexed strategies Cap focus Participation focus No cap Point-to-average to Same competitive cap and participation rates Same established renewal rate philosophy Average annualized credited rates from product introduction range (May 2007 June 2011) from 5.2% to 6.8%, depending on index strategy Highest one year return, 28.7% 47

48 FlexLife Highlights Lifetime Income Benefit Rider (LIBR) Systematic Allocation Rider Policy Protection Period 10 years Death Benefit Protection Rider Guaranteed coverage for up to 30 years for certain ages Face Amount reduction greater than 25% starting in year 10 MEC and Guideline testing still apply Interest Enhancement of 0.35% starting in year 11 A fourth face amount band Variable Net Cost Loans - Now also available in New York 48

49 Product at a Glance Issue Ages: 0 to 85 (age nearest birthday) Minimum Initial Total Face Amount: LSW: $100,000 NL: $25,000 Guideline Premium Test (GPT) & Cash Value Accum. Test (CVAT) Banding: Band 1: Minimum Face Amount to $249, Band 2: $250, to $999, Band 3: $1,000, to $2,999, Band 4: $3,000, and up Pension Availability: All qualified pension and profit sharing plans except 412(e)(3) 49

50 Product at a Glance Five Interest Rate Crediting Strategies 1. Fixed-Term Strategy 2. Point-to-Point, Cap Focus Index Strategy 3. Point-to-Point, Participation Rate Focus Index Strategy 4. Point-to-Point, No Cap Index Strategy 5. Point-to-Average to Index Strategy Index S&P % Floor on Index Strategies t 2.5% Minimum Interest Rate Guarantee 2 Basic strategy Fixed-Term Strategy Upon surrender or death for Indexed Strategies 1 Standard & Poor s, S&P, S&P 500, Standard & Poor s 500, and 500 are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by National Life Insurance Company and Life Insurance Company of the Southwest. These products are not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability of purchasing the Products. 2 Guarantees are dependent upon the claims-paying ability of the issuing company. 50

51 Plus Lifetime Income Benefit Rider Guaranteed lifetime income from an Indexed Universal Life policy 51

52 New with FlexLife Systematic ti Allocation Rider 52

53 Year One Premium swept to Point-to-Point Strategy At end of Index Period Interest Credited 53

54 Year Two At end of Second Year Index Period Interest Credited 54

55 What Did They Miss? Everything in Between! 55

56 How can they participate in what they missed? Systematic ti Allocation Rider 56

57 Systematic Allocation Rider FlexLife with the Systematic Allocation Rider allows the premium to be divided into 12 equal portions, allocated to the different index strategies that client chooses, throughout the 12 month period Result Twelve points versus one point Doesn t guarantee higher returns but helps avoid putting all of your client s eggs in one basket 57

58 Systematic Allocation Rider Important addition to our IUL story Avoids all-eggs-in-one-basket incidents Premium not tied to only a single point in the index Especially makes sense for single premiums and 1035 s Grandparent making large single gifts to grandchild Large 1035 dump-in amount Company paying Executive Bonus based on year-end results 58

59 Systematic Allocation Rider May be elected at or after issue No additional charge for rider Minimum Premium - $3,000 New money only New premium 1035 Exchange Same minimum guarantee as Fixed Strategy Guarantees are dependent upon the claims-paying ability of the issuing company. 59

60 Leverage your premium dollar with riders * Policy loans and withdrawals and the use of living benefits riders reduce the policy s cash value and death thbenefit and may result in a taxable event.. **Riders are optional, may require an additional premium and may not be available in all states. 60

61 FlexLife Riders Accelerated Benefits Riders Additional Protection Benefit Balance Sheet Benefit Children s Term Death Benefit Protection Guaranteed Insurability Lifetime Income Benefit Rider Other Insured Overloan Protection Qualified Plan Exchange Systematic Allocation Waiver of Monthly Deductions Waiver of Premium 61

62 State Approvals as of 10/10/2011 National Life Approved Everywhere Except California Connecticut Delaware Nevada Life of the Southwest Approved Everywhere Except California Connecticut Delaware Nevada Not Available in New York Note: LSW has New Life Application 8121(0911) 62

63 Present Your Case Case Design and Presentation 63

64 Helping clients understand your recommendations helps close the sale! 64

65 Tax Free Retirement Consumer Brochure,

66 Servicing the Plan Periodic client reviews makes them a Client for Life! 66

67 For Next Time Recap Session 2 Stage Three: Managing Your Retirement Retirement distribution planning Living well in retirement 67

68 Thank you! What s your Rule of 72? 68