Framing Your Mind: Picture Yourself Making More Sales

Transcription

1 Framing Your Mind: Picture Yourself Making More Sales David J. Murphy, CLU, ChFC, FLMI, Sales Vice President, National Accounts, North American Company 1 1

2 Disclosures Neither North American Company nor its agents give tax or legal advice. Please advise your clients to consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements. In some situations, loans and withdrawals may be subject to federal taxes. North American Company for Life and Health Insurance does not give tax or legal advice. Clients should be instructed to consult with and rely on their own tax advisor or attorney for advice on their specific situation. Index Universal Life products are not an investment in the market or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance. The uncapped S&P 500 option allows an unlimited return with no index cap rate, but applies an index participation rate less than 100% to the growth rate of the S&P 500. Standard & Poor s, S&P, S&P MidCap 400, S&P 500, Standard & Poor s 500, Standard & Poor s 400, 400 and 500 are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by North American Company for Life and Health Insurance. The Dow Jones Industrial Average SM is a product of Dow Jones Indexes, the marketing name and a licensed trademark of CME Group Index Services LLC ("CME Indexes"), and has been licensed for use. "Dow Jones ", "Dow Jones Industrial Average SM ", "DJIA SM " and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones"), have been licensed to CME Indexes and sublicensed for use for certain purposes by North American Company. North American Company s Indexed Universal Life Insurance products, based on the Dow Jones Industrial Average SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such products The EURO STOXX 50 measures the top 50 blue-chip stocks from the countries participating in the European Monetary Union. The EURO STOXX 50 is the intellectual property of (including registered trademarks) STOXX Limited, Zurich, Switzerland and/or its licensors ("Licensors"), which is used under license. The Index Accounts for this Product based on the Index are in no way sponsored, endorsed, sold or promoted by STOXX and its Licensors and neither of the Licensors shall have any liability with respect thereto. The NASDAQ-100, NASDAQ-100 INDEX and NASDAQ are registered marks of the NASDAQ Stock Market Inc. (which with its affiliates are the Corporations ) and are licensed for use by North American Company for Life and Health Insurance This product has not been passed on by the Corporations as to their legality or suitability. This product is not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THIS PRODUCT. THIS INDEX DOES NOT INCLUDE DIVIDENDS PAID BY THE UNDERLYING COMPANIES. Russell 2000 Index is a trademark of Frank Russell Company and has been licensed for use by North American Company for Life and Health Insurance. North American s index universal life products are not sponsored, endorsed, sold or promoted by the S&P 500, S&P MidCap 400, DJIA SM, EURO STOXX 50, NASDAQ-100 and Russell 2000, and they make no representation regarding the advisability of purchasing this contract or investing in this product. For complete product and rider details please refer to the Builder IUL Series (PR-1275) and Survivorship GIUL (PR-1435). Rapid Builder IUL is issued on policy form series LS169, Builder IUL is issued on policy form series LS172, Accelerated Death Benefit Endorsement for Chronic and Terminal Illness is issued on form series LR465 (Builder IUL), Accelerated Death Benefit Endorsement for Terminal Illness is issued on form series LR466 (Builder IUL), Guarantee Builder IUL is issued on policy form series LS164A, Survivorship GIUL is issued on policy form series LS171 without the Waiver of Surrender Charge and policy form series LS171W with the Waiver of Surrender Charge; Accelerated Benefit Endorsement for Terminal and Chronic Illness is issued on policy form LR463 (Survivorship GIUL), Accelerated Benefit Endorsement for Terminal Illness is issued on policy form LR464 (Survivorship GIUL); Chronic Illness Accelerated Benefit Rider is issued on form series LR450A,Survivor Premium Guarantee Rider is issued on form series LR460, Estate Preservation Rider is issued on form series LR461; or state variations by North American Company for Life and Health Insurance, Sioux Falls, SD. Products, features, riders and endorsements may not be available in all jurisdictions. Limitations and restrictions may apply. 2

3 Major Points: Clients are confounded Leadership is required North American helps agents grow 3

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5 New Realities Television "permits millions of people to listen to the same joke at the same time, and yet remain lonesome." -- T. S. Eliot 5 5

6 Google it. It s almost an involuntary action these days. Whatever we need or want to know, our first reaction is to just Google* it. *The Services are provided by Google Inc. ( Google ), located at 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States. 6

7 Outmoded Encyclopedia Dictionary Birth announcements Real estate transactions City Directory Rate books Cold calling 7

8 Likes. Friends. Followers. Facebook* has become the dominant repository of our lives. Social Media was born out of our need to establish trusting relationships. Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook Inc. 8

9 The Trust Gap is the amount of trust you have to earn before your potential customer will consider buying from you. 9

10 Persistent Realities People will have financial dependents (children and/or parents). People will want to retire someday. They will die someday. They will get sick along the way. They need us. 10

11 But, what does it all mean? It means we have to, in a word, build relevance. rel e vant adj Definition of RELEVANT 1a : having significant and demonstrable bearing on the matter at hand Significance, bearing, application, importance, weight, consequence. 11

12 Transformative Work The strength of your advice is weighed on this scale: Is it relevant? Is it well argued? Is it coherent? Does it provoke one to think or, more importantly, do? 12

13 What We Need is More Empathy Knowing how people feel, what they need and what delights them is the key to being relevant. Do you know how your clients really feel? Since your business deals with people, you need to be in tune with your people. The commonality of relevant agents is finding the thread of human interest and emotion. That being love for family, the desire for safety and certainty. 13

14 2010 study by LIMRA* The top two reasons Americans buy life insurance is to cover burial and final expenses, and to replace the income of primary wage earners. Many agents focus on complicated presentations and techniques to pique interest in life insurance. However the stats point out that the basic element of life insurance protection for replacement of lost income and final expenses remain a primary goal. *Source: 14

15 When dealing with people, remember you are not dealing with creatures of logic, but with creatures of emotion, creatures bristling with prejudice and motivated by pride and vanity. Dale Carnegie 15 15

16 I M P O R T A N T URGENT NOT URGENT U I M P O R T A N T 16

17 PERSONAL G E N E R A L T E C H N I C A L IMPERSONAL 17

18 "I merely took the energy it takes to pout and wrote some blues. Duke Ellington 18 18

19 Sales success is found in taking the energy to talk to ask good questions to write applications

20 Important Questions How do you know this to be so? What is needed most? What is it you hope to accomplish and what s stopping you? What is possible? When do you want to start? How will you prevent failure? Who/how can we make this happen? What would you regret most? 20

21 What People Over 50 Are Very Worried About* 1.Ability of Congress and the President to work together to tackle the country s economic challenges: 65% 2.Rising taxes: 36% 3.High inflation: 33% 4.Another recession: 31% 5.Further stock market decline: 28% 6.Having enough money for adequate health care: 26% 7.Rising interest rates: 21% 8.Being able to pay rent/mortgage: 13% 9. Losing a job: 13% Catey Hill, entitled, What People Over 50 Are Very Worried About, on the web site for Smart Money ( The AARP Public Policy Institute released a new study (Oct 31, 2011) entitled 50+ and Worried About Today and Tomorrow. 21

22 IUL Reduces Anxiety! An index tied to market performance may outperform inflation Regardless of whether or not tax rates rise, the death benefit will be paid to the beneficiary income taxfree A stock market decline will create no greater impact than 0% Tax-deferred growth can be used to offset the future health care costs CIABR* provides tax-free funds in case the insured develops a chronic illness *Please refer to the current marketing guides for complete product details: Builder IUL Series (PR-1275), Accelerated Death Benefit Endorsement for Chronic and Terminal Illness is issued on form series LR465 (Builder IUL). 22

23 North American IUL Strengths Competitive Performance Complete Portfolio Compelling Features Client Control 23

24 Complete IUL Portfolio Builder IUL High Cash Value Accumulation Potential Rapid Builder IUL Early Access to Cash Value Potential Guarantee Builder IUL Guaranteed Death Benefit with Cash Value* Potential Survivorship GIUL Last Survivor * Subject to premium payment requirements. 24

25 Compelling Features Low Face Amounts (with Super Preferred Class Available) Guaranteed Interest Rate Bonus on Index Accounts Overloan Protection* Daily Index Sweeps** Many Index Options (all annual selections) No Funds Required in Fixed Account Interest credited on beginning of segment account value regardless of cost of insurance charges. Capped Variable Interest Rate Loans * The policy will remain in effect when extensive loans are taken provided the policy is not terminated due to surrender and the policyowner does not take policy loans or withdrawals during the Overloan Protection period. This benefit may reduce the Specified Amount. ** Premium allocated to index bucket on trading day (the day the New York Stock Exchange is open for business), upon receipt. 25

26 Index Options Index Option Annual Point to Point Daily Averaging Monthly Point to Point S&P 500 DJIA sm NASDAQ-100 Uncapped S&P 500 Russell 2000 S&P Midcap 400 EURO STOXX50 Multi-index (S&P 500, EURO STOXX 50, Russell 2000 ) 26

27 Value of Capped Variable Interest Rate Loans Source: Federal Reserve Economic Database, January

28 Client Control Protected Death Benefit Feature* Ability to move between variable interest rate loans and fixed loans without limitations (Remaining balance will be transferred to new loan.) Accelerated Death Benefits for Chronic or Terminal Illness** Suspended Lapse Checking during an election period for Chronic and for remainder of life for Terminal Waive all monthly deductions during an Election Period on face amounts up to $1 million for Builder IUL * The Overloan Protection Benefit cannot be elected if the Protected Death Benefit is in effect. ** If Overloan Protection benefit is in effect, Accelerated Benefit riders cannot be elected. 28

29 Contact Sales Development ext Brian Boeshans AVP, Sales Develop. Ext Amy Andel Life Marketing Spec. Team Lead Ext Matt Ask Sales Development Ext LeAnn Cummings Sales Development Team Lead Ext Cindy Erickson Life Marketing Spec. Ext Kim Grund Senior Account Relationship Mgr Ext Alar Hakk Sales Development Ext Anthony Holen Sales Development Ext Eric Letvin Sales Development Ext Jessica Lovell-Opdahl Sales Development Ext Tom Martin Senior Marketer Life Sales Ext Doug Northup Marketing Business Analyst Ext Nick Olson Sales Development Ext Jeanette Papillon Life Marketing Spec. Ext Kelsey Lomsdal Sales Development New Agents Ext Erin Schloesser Life Marketing Spec. Ext April Stastny Life Marketing Spec. Ext Charlene Tharaldson Sales Development Ext Todd Vanyo Sales Development Ext

30 Direct Access to Help You With Sales! Sales Development: , ext or for help with: Product specifications and selection Case design Sales concepts Web Site Software 7:30 am to 5:00 pm (CST) Monday Thursday 7:30 am to 12:30 pm (CST) Friday 30

31 Thank you! 31 31

32 Chronic Illness Accelerated Benefit Rider* Giving the client control when life takes a turn *THIS IS NOT LONG TERM CARE INSURANCE, NOR IS IT INETENDED TO REPLACE LONG TERM CARE INSURANCE

33 Disclosures Index Universal Life products are not an investment in the market or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance. Please refer to the marketing guides for complete product details: Builder IUL Series Marketing Guide PR-1275, Chronic Illness Accelerated Benefit Rider (PR-1080), Builder IUL Series (PR-1275) and Survivorship GIUL (PR-1435). The primary purpose of life insurance is to provide a death benefit to beneficiaries. Generally, distributions up to the contract's cost basis are tax free. Moreover, loans in excess of the cost basis are also tax free as long as the policy remains in force. Builder IUL is issued on policy from series LS172, Custom Guarantee is issued on policy form series LS170; Custom GrowthCV is issued on policy form series LS166, Custom TermGUL is issued on policy form series LS167, Guarantee Builder IUL is issued on policy form series LS164A, Rapid Builder IUL is issued on policy form series LS169, Survivorship GIUL is issued on policy form series LS171 without the Waiver of Surrender Charge and policy form series LS171W with the Waiver of Surrender Charge; Accelerated Death Benefit Endorsement for Chronic and Terminal Illness is issued on form series LR465 (Builder IUL) and LR463 (Survivorship GIUL); Accelerated Death Benefit Endorsement for Terminal Illness is issued on policy form series LR466 (Builder IUL) and LR464 (Survivorship GIUL), Chronic Illness Accelerated Benefit Rider (Accelerated Benefit Rider for Continuous Confinement in MN) is issued on form series LR450A; by North American Company for Life and Health Insurance, Executive Office, Chicago, IL Products, features, riders, endorsements, or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply. 33

34 A chronic illness could disrupt the family and cause financial insecurity. With North American s Chronic Illness Accelerated Benefit Rider, we give additional control back to your client. 34

35 Chronic Illness Accelerated Benefit Rider (CIABR)/Accelerated Death Benefit Endorsements No additional premium at issue No additional underwriting requirements Automatic at issue 1 Accelerated Benefits Summary and Disclosure Statement or Builder IUL/Survivorship GIUL Accelerated Benefit Disclosure with application (for the Accelerated Death Benefit Endorsements) Available on new universal & indexed universal life insurance sales Up to age 75 (joint equal age of 75 or less for Survivorship GIUL) Up to table 4 rating (Survivorship GIUL combined table rating of 8 or less) Available for conversions with satisfactory evidence of insurability 1. Subject to eligibility requirements. 35

36 Available on the following Products Indexed Universal Life Insurance: Builder IUL (Accelerated Death Benefit Endorsements) Guarantee Builder IUL Rapid Builder IUL Survivorship GIUL (Accelerated Death Benefit Endorsements benefits available after 1 st death) Universal Life Insurance: Custom GrowthCV Custom Guarantee Custom TermGUL 36

37 Qualifications Permanently unable to perform 2 of the 6 Activities of Daily Living (ADLs) or severe cognitive impairment* requiring substantial supervision Bathing Continence Dressing Eating Toileting Transferring Physician certification of chronic illness 90-day elimination period Complete election of benefits form *Severe cognitive impairment means the insured requires substantial supervision by another person to protect him or herself from threats to health and safety due to a severe cognitive impairment. 37

38 Benefits One election every 12 months Maximum per election is lesser of 24% of death benefit or $240,000 Minimum per election is lesser of 5% or $50,000 Must maintain a residual death benefit; the greater of 5% of the death benefit on the initial election date or $10,000 $200 administration fee per election (may vary by state) Amount policyowner receives is less than the amount requested to be accelerated* Lapse checking suspended during elections or when over 50% of death benefit accelerated *The death benefit will be reduced by the amount of the death benefit accelerated. Since benefits are paid prior to death, a discount will be applied to the death benefit accelerated. As a result, the actual amount received will be less than the amount of the death benefit accelerated. 38

39 Helping your sales in. Legacy Building Income Replacement Buy/Sell Agreements Supplementing Retirement Provide additional access to a portion of death benefits 39

40 Marketing Materials CIABR Agent Guide (PR-1080) Consumer Brochure (PR-1079) 40

41 Direct Access to Help You With Sales! Sales Development: (800) , ext or for help with: Product specifications and selection Case design Sales concepts Web Site Software 7:30 am to 5:00 pm (CST) Monday Thursday 7:30 am to 12:30 pm (CST) Friday 41