CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS A TOTAL MARKET APPROACH: THE LGBT COMMUNITY THE WOMEN S MARKET OPPORTUNITY YOU CAN T IGNORE People in the Lesbian, Gay, Bisexual, and Transgender community need and want assistance with financial strategies. Prudential took an in-depth look at the current financial landscape for LGBT Americans. We found that: Like all Americans, many are concerned about the ability to save for retirement. They are also uneasy about broader economic forces hindering their ability to succeed financially than about LGBT-specific rights issues. Many tend to want expert guidance because they don t know what financial options are available to them, and they don t know how to get started. When choosing a financial services firm and a financial professional, survey respondents place great emphasis on working with firms that support: 1. Equal job rights for LGBT employees 2. Gender equality (e.g., equal pay for women) 3. LGBT employee benefit equality 4. Racial equality Prudential supports all four of these, and more; therefore, individuals may be more open to working with you as a financial professional offering life insurance solutions from Prudential. This piece has been designed to help you develop an effective approach to building a network within the LGBT community. It suggests easy ways for you to have discussions with clients and prospects about their life insurance needs. Before beginning your outreach, you should review and obtain the appropriate approvals for your proposed marketing plan from your firm. KEY SECTIONS Introduction Action Plan for Success Prospective Client Groups Building a Network of Relationships Conversation Starters All statistics unless indicated otherwise are from Prudential s The LGBT Financial Experience 2016 2017. 0258393-00003-00 Ed. 04/2017 Exp. 10/19/2018
Introduction Part of growing a successful practice is servicing existing markets and finding additional markets to expand your efforts. Multicultural markets, including the LGBT community, represent an enormous opportunity because of the size and buying power of the markets involved. These markets can allow you to expand your key specialty into another segment of the population. Why might financial professionals want to work with LGBT clients? A large percentage of LGBT survey respondents believe life insurance is important to have and know they need more. There is wealth and buying power in this segment. Financial professionals who are knowledgeable about the needs of this segment have a good opportunity and do not need to be part of the LGBT community. Why expand into the LGBT segment? This segment has demonstrated a significant need for life insurance. Additionally, total buying power of the adult U.S. lesbian, gay, bisexual, and transgender population is projected at $917 billion. 1 There is a large, underserved group of people who need your help. Making the effort to break into this market can bring your business to the next level. The Marriage Opportunity Prior to the Supreme Court of the United State s ruling to legalize same sex marriage in all states (Obergefell v. Hodges), many couples may have previously put insurance strategies in place to help mimic the rights of marriage. Revisit those strategies with couples to help evaluate if what they had in place still makes sense or needs to be changed to meet their present circumstances. 1 Source: Witek Communications, July 20, 2016 2
Action Plan for Success Before you start meeting with prospective clients, you ll need to establish yourself in the community, getting to know organizations and individuals. The Building a Network of Relationships section on page 8 can help you with this step. 1 DETERMINE PROSPECTIVE CLIENT GROUPS AND BUILD RELATIONSHIPS Knowing your audience will support your strategy for building a network of relationships. These first three steps are critical to your success, so the more time you invest, the better. Identify whom to approach and how STEP 1: Review the Prospective Client Groups in the next section and select the prospective client groups that provide the most opportunity or that match your skills and expertise. Build a network STEP 2: Build relationships within prospective client groups you ve chosen to help meet new prospects. The Building a Network of Relationships section on page 8 can provide valuable information and ideas to help with this step. 2 IDENTIFY AND CONTACT PROSPECTS Once you ve begun to build a network, contact the prospective clients to introduce them to some of the ways you can help them and to set up a meeting. Review prospective clients STEP 3: Review your lists of prospective clients to identify whom to contact. Focus on ten clients or prospects at a time, using each of the steps to follow. Once you finish all of the steps with those clients, select ten more and repeat. 3
Send letters or emails STEP 4: Send a letter or email to ten prospective clients to initiate a meeting. Place follow-up phone calls STEP 5: Follow up your letter or email with a phone call to check in with the prospect, confirm he or she got your email or letter, and ask for a meeting to discuss the concept further. We ve provided discussion points you can use in the Conversation Points section. 3 MEET Once a meeting is scheduled, the focus shifts to what s needed to present the strategy and help prospective clients decide on their courses of action. Prepare for the meeting STEP 6: Prepare for the meeting by ordering copies of material you ll need. Run sample illustrations, as well. Conduct the prospective client appointment STEP 7: At the meeting, walk prospective clients through the LGBT Community and Life Insurance consumer brochure. It provides an introductory discussion of how life insurance can help. Once you and the prospective client have determined specific needs and strategies to pursue, you can get additional material on that topic. Again, we ve provided talking points in the Conversation Points section. Your Prudential wholesaler can walk you through the consumer brochure and how to present it to your prospective clients. Follow up STEP 8: Follow up with the prospective clients to collect all of the necessary paperwork if they have decided to purchase a policy or to continue discussing additional strategies, if needed. Following up with a call to each can help increase your closing rate. FOLLOWING UP WITH A CALL CAN HELP INCREASE YOUR CLOSING RATE. Please note: You should review and obtain the appropriate approvals for your proposed marketing plan from your firm. 4
Prospective Client Groups In addition to the general life insurance priorities for LGBT Americans listed in Prudential s LGBT Consumer Fast Facts, the types of prospective clients highlighted in the following pages have specific needs and challenges that you can help address. Your loyalty to their community as a whole will earn their loyalty to you. It s important to understand where to find prospective clients and the best places to build your network. COUPLES PARENTS BOOMERS SMALL BUSINESS OWNERS Only 22 % of LGBT Americans surveyed consider themselves VERY WELL PREPARED to make wise financial decisions about maintaining a standard of living for their families in the event of their death or disability. COMPARED 31 % TO of the general population. Couples Now that same-sex marriages are legally recognized and allowed in all states, the need for estate planning, a primary concern for same-sex couples, is still strong. This is especially true for those who choose not to marry but are partnered (as it is with opposite-sex couples). For those who have chosen to marry, review whether or not these couples need to revisit any strategies they may have put in place to protect each other prior to the legalization, along with state and/or federal recognition, of their marriages. In doing so, couples can determine whether or not those strategies still make sense or need to be adjusted. Then discuss their goals and how you can help them to meet their challenges. For those who choose not to marry their life partners, careful planning is still needed to help ensure they reach their goals. STRATEGIES: The LGBT Americans that we surveyed are far less confident than the general population about their preparedness to make wise decisions about financial goals. For example, only 22% of LGBT Americans surveyed consider themselves very well prepared to make wise financial decisions about maintaining a standard of living their families in the event of their death, as compared to 31% of the general population. 5
APPROACH: There may be an LGBT community center nearby that you can contact to hold financial education seminars. Remember, this community generally finds their financial professionals by word of mouth recommendations. Some concepts that may resonate with couples may be: Retirement preparation and supplementation Products that can offer potential cash accumulation features may be very attractive. This may be especially true for couples who choose not to marry. This is because a non-married partner may not be eligible for income from a deceased partner s pension or other retirement plan. Financial protection in case of chronic or terminal illness The expenses around chronic and terminal illness are a concern for anyone. A permanent life insurance policy that allows the insured to access the death benefit should this type of illness occur to them, would be something they may want to consider. 39 % of LGBT respondents are already parents, with that number continuing to grow. Parents In 2012, only 15% of respondents indicated being a parent. In 2016, 39% of samesex couples surveyed are already parents, with that number continuing to grow. LGBT parents may have some added legal issues around adoption, guardianship, and so on that you should be sure to understand. STRATEGIES: Single: Single LGBT parents surveyed want help understanding how to protect themselves and their children financially. The first step is to address the need for death benefit protection to provide for any children in case something happens to the parent. However, once that need is addressed, clients may be interested in policies that can help meet other financial needs. Also, since they may not have a partner or significant other to care for them when they get older or become chronically ill, they may be interested in a life policy that offers death benefit protection and also has features that can help address expenses during chronic or terminal illness. Couple: Couples often need to protect their income for their children. Understanding guardianship and adoption rules in your state is important to helping these clients. APPROACH: You can meet prospective clients in any kind of organization that has a broad range of ages and/or interests. PRIDE parades and events held in many large cities can be an ideal place to set up a booth and distribute information about life insurance as a solution to estate planning and other challenges. You could also hold a financial education session in which you highlight life insurance solutions for parents. 6
LGBT BABY BOOMERS are a community of at least 2MILLION and many indicate that the recession and forced early retirement have suppressed their savings potential. Boomers LGBT baby boomers are a community of at least 2 million in size, based on demographic statistics 2 and are the generation most concerned about retirement. Being hard-hit by the recession and losing assets in the stock market and on real estate close to retirement age has made it difficult for them to bounce back in their retirement preparation. On top of these factors, many LGBT baby boomers have faced challenges throughout their careers that have impacted their savings potential. STRATEGIES: Boomers, in general, have needs around retirement. Strategies for qualified money (rollovers) may resonate. If children are involved, having legal documents such as wills, guardianship papers, life insurance, and business succession plans in place is critical. LGBT boomers want help with taking steps to make sure they don t outlive their money, especially since legal expenses can add up. APPROACH: Consider holding a financial education seminar targeting boomers. If you live near a city that has an active LGBT community center, try to work with the center to schedule it. Or schedule a free, open door walk-in session at the community center itself. Posting notices of your free guidance can go a long way toward helping you make contacts and establishing yourself as someone who cares about this community. 2 http://www.thetaskforce.org/downloads/reports/reports/outingage_final.pdf, accessed on February 27, 2016. 7
Building a Network of Relationships The LGBT segment is made up of groups who share common struggles yet have distinct personal needs, outlooks, and circumstances. It is important to deepen your understanding of individual needs. What can help you build relationships within the community? In light of Obergefell v. Hodges, help couples who may have already had insurance strategies in place to mimic the rights of marriage revisit those strategies. Embrace the community and support diversity and inclusion. Support non-profit organizations that are friends of the LGBT community. Help couples who are entering marriage financially prepare. Reach out to the community. THERE ARE APPROXIMATELY 1.4M LGBT-OWNED BUSINESSES IN THE U.S. Small Business As in the wider population, small business owners are a robust market in the LGBT segment. There are approximately 1.4 million LGBT-owned businesses in the U.S. 3 Apply your knowledge about business solutions to help them prepare for their future and the future of their businesses. REACH OUT TO THESE BUSINESS OWNERS THROUGH: Chamber of Commerce Local Trade Organizations STRATEGIES: Help your prospective clients understand business strategies for using life insurance, such as key person, executive compensation, and buy-sell arrangements. Business succession planning can be critical for singles and couples who co-own the business. APPROACH: Several types of organizations can help you meet small business owners, including the local chamber of commerce, local trade organizations, and charities. More community-based groups, such as local service organizations, should also be explored since they typically have broad memberships. Charities Supporting LGBT Causes 3 Kleigman, J. (2015, August 20). It s slowly getting easier to be an LGBT small business owner. Retrieved February 27, 2017, from www.theweek.com. 8
Conversation Starters The following talking points can be used to introduce and discuss life insurance with LGBT individuals. 1 ASK CLIENTS IF THEY RECENTLY RECEIVED CORRESPONDENCE WHEN SETTING UP A MEETING Ask the prospective client if he or she recently received an email or letter from you. Let him or her know that you d like to discuss how life insurance can help with personal financial goals. Ask when would be a convenient time to meet. 2 DISCUSS CLIENT S CURRENT NEEDS AT THE START OF THE MEETING Begin the meeting with a discussion of your client s current protection needs based on family, mortgage, etc. Then bring up long-term needs and goals. 3 DISCUSS HOW LIFE INSURANCE CAN HELP MEETING WITH PROSPECTIVE CLIENTS WHO DON T OWN LIFE INSURANCE Discuss all the ways that life insurance can help him or her to reach goals and determine what strategies he or she would like to discuss more. Present the LGBT Community and Life Insurance consumer brochure. 4 DECIDE WHICH STRATEGIES TO DISCUSS MEETING WITH PROSPECTIVE CLIENTS WHO ALREADY OWN ONE POLICY Congratulate him or her on the policy already owned. Present the LGBT Community and Life Insurance consumer brochure. Discuss all the ways that life insurance can help with personal goals and determine if the current policy covers all of those needs and goals. Decide on which, if any, strategies he or she would like to discuss more. 5 PRESENT ILLUSTRATIONS INTRODUCING THE ILLUSTRATIONS After reviewing the consumer brochure, present any illustrations, if applicable to the product, you might have already created to provide an idea of how a specific approach could work. Help him or her understand that the illustrations are only to provide a better idea of what the coverage and premium payments could be in his or her case and can be adjusted for specific financial needs and situations. 6 CHOOSE STRATEGIES TO PURSUE DECIDING ON A COURSE OF ACTION After reviewing the policy information, discuss which strategies the prospective clients might want to pursue. 9
IMPORTANT NOTE: Prudential s Multicultural Marketing Initiative is intended to help expand access to all markets, including diverse and multicultural. Prudential does not discriminate on the basis of race or any other protected class in the sale or distribution of its products. This brochure may be not used in any way to restrict the access of any group to Prudential products. Any illegal discrimination or misuse of materials provided by Prudential is strictly prohibited. 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. Prudential and its representatives do not provide legal or tax advice. Clients should seek the guidance of their tax and legal advisors before making any decisions. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities. 2017 Prudential Financial, Inc. and its related entities.