2ND QUARTER 2011
Are you losing annuity sales in the “suitability� maze? (Page 16)
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With the way the economy is going, have your clients considered who will write their retirement paycheck? The first wave of Baby Boomers began turning 65 this year. Millions upon millions of them are rushing towards retirement. This comes at a really bad time for a federal government that is already flat broke and for a national economy that is already teetering on the brink of disaster. A few statistics: 1. Beginning January 1st, 2011 more than 10,000 Baby Boomers will reach the age of 65 every single day... for the next 19 years. 2. According to one recent survey, 36 percent say that they don’t contribute anything at all to retirement savings. (They may be hard to help) 3. Most Baby Boomers do not have a pension plan. 4. Over 30 percent of U.S. investors currently in their sixties have more than 80 percent of their 401k invested in equities. What if the stock market crashes again? 5. 35% of Americans already over the age of 65 rely almost entirely on Social Security payments alone. Contact Great Plains and learn how you can take advantage of our proprietary presentation system, IncomePLUS, that helps clients create dependable retirement income, diversify their savings, offers flexibility for changing economic conditions, and gives them hope of reaching their dreams, desires and goals for retirement. 1,200,000 Baby Boomers have turned 65 through April of this year, and 10,000 more each day— for the next 19 years. Are you the Trusted Advisor that will help them create their retirement paycheck?
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JUST the FACTS | 2ND QUARTER 2011
INSIDE… 6
TURN HIGH-NET-WORTH PROSPECTS INTO CLIENTS
8
NAVIGATING THE SUITABILITY MAZE
2ND QUARTER 2011
How can you separate yourself from your competition and get in front of High-Net-Worth Prospects? Show them the opportunity to earn more with an After Market Annuity! Learn how you can open the door to the affluent market.
This brief review the new annuity suitability requirements and how they can impact policy issue can help you and your clients navigate the suitability maze, avoiding frustration when the application is submitted.
10
DO YOU HAVE CLIENTS THAT NEED CASH TODAY?
Great Plains Annuity & Life Marketing may be able to help you help those clients and prospects.
15
THE SEVEN TRAITS OF SUCCESSFUL ANNUITY MARKETING
Success as an annuity advisor is measured by sales.
PRINCIPALS
Rich Hellerich
Robb Edwards
ANNUITY MARKETING Andy Amborn Brad Allen Brian Dixon Cindy Nelson Kara Langdon Michael Lair
LIFE MARKETING Dick Reynolds Tim Edwards Mary Pierce
ADMINISTRATION Cris Larson
Karen Brooks
Kathy Putnam Naomi Mayekawa
Incorporating these marketing strategies can help you focus your efforts, better serve your clients, and increase your income.
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BECOME THE BIG FISH IN YOUR SMALL MARKET
20
JUST BY ASKING... ONE IMPORTANT QUESTION
22
JUST A THOUGHT
Small markets can produce big results, and Great Plains has a turn-key program to help you become the big fish in your small market! If you haven’t considered the rural market you could be missing out on steady sales andmore commissions!
Before you close your annuity interview, just ask this important question to uncover the opportunity to help your client and generate an additional sale!
Your most valuable lead source should be your existing client database.
JUST the FACTS | 2ND QUARTER 2011
11900 W. 87th St., Ste. 115 Lenexa, KS 66215 Toll Free: 800-710-1115 Local: 913-492-9994 • Fax: 913-492-9998 http://www.greatplainsannuity.com JUST the FACTS is published quarterly for the benefit of independent insurance agents and brokers contracted with Great Plains Annuity & Life Marketing. Great Plains assumes no responsibility for the professional training or continuing education of agents. This publication is for agent use only, and not to be used to solicit sales from the general public. Products noted may not be available in all states. Great Plains does not offer tax, investment or legal advice. While every effort is made to confirm accuracy, published rate and product information is subject to change. Material herein may not be reproduced in any form without permission.
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JUST the FACTS Those of you that are familiar with our After Market Annuity program know how this unique offering can get you in the door with high-net-worth prospects. If you are not familiar with After Markets, please see page 6 for my overview of this program and how you can separate yourself from your competition offering guaranteed returns of 5.50% up to 8.00%. We have reintroduced our Rural Agents Marketing Program, and created a turn-key seminar and marketing program designed for producers serving rural and less populated areas of the country. Serving these smaller markets can add up to consistent sales of annuity and life insurance products. See page 18 to see if you are interested in becoming the big fish in your small market. I want to remind annuity producers that new suitability issues and review at the various carriers has caused some interesting situations to say the least. I encourage you to contact your Great Plains Annuity Specialist before and during the sales process to avoid unnecessary delays or additional paperwork in submitting and closing your individual cases. We can help
you address some of the issues that are complicating, or at the very least, slowing the approval process and getting your business issued. Looking for an annuity sales presentation to help clients create reliable retirement income? Look no further than Brad Allen’s article on page 8 regarding the Great Plains IncomePLUS client presentation. We are getting tremendous response from producers using this tool to open the door for more sales, improve and reduce suitability issues when cases are forwarded to the home office, and help clients sleep better at night knowing they have crafted a flexible plan to write their retirement paycheck as long as they live. Looking for lead generation and marketing solutions. See our article on page 15. Are you incorporating these seven traits in your marketing efforts? Also note the additional tools Great Plains offers agents in creating new leads and referrals for more sales. Finally, see Dick Reynolds’ contribution on page 20 regarding the one question you should ask at the conclusion of every annuity sale. You can help clients reposition “safe money” assets earmarked as legacy gifts, potentially reducing the tax consequences and increase the size of the gift. In addition you’ll increase your commission income by asking one simple question! Thanks for your business! Rich Hellerich, President
JUST the FACTS | 2ND QUARTER 2011
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800-710-1115 *Commissions may vary by state. **Nursing Home Waiver not available in MA. Surrender of the contract may be subject to surrender charge or market value adjustment. Product and Rider not available in all states, and may vary by state. Contracts issued on Form Series ET-EIA-2000(02-05) with Rider ET-IMVA(07-09). Group Certificates issued on Form Series ET-EIA-2000C(01-07) with Rider ET-IMVAC(07-09). EquiTrust Life Insurance Company, West Des Moines, IA. For Producer Use Only. AC11-ET-EIA-1074
JUST the FACTS | 2ND QUARTER 2011
PAGE 5
Turn High-Net-Worth
Prospects Into Clients with After Market AnnuitiesTM Separate yourself from your competition!
Do you have high net worth prospects in your community you are reluctant to call on because of the current low interest rate environment? If you could offer them the opportunity of guaranteed interest credits of 5.50% -8%, and the safety of some of the best known insurance carriers in the industry, do you believe you could schedule an appointment? Can you imagine such a prospect not scheduling an appointment to learn more? After Market Annuities™ (AMAs) are an incredible “door opener” to the affluent market and give you the opportunity to distance yourself from your competition. To offer this level of guaranteed interest earnings underwritten by A- to AAA carriers is certain to promote a serious conversation, and just as important, the chance to discuss their overall financial situation to uncover additional income concerns and/or wealth transfer issues that you can eliminate with income planning, annuities and life insurance solutions.
What is an After Market Annuity™?
An After Market Income/Balloon Annuity is a contract issued by an insurance company as part of a structured settlement. Frequently used in legal cases to fund payment of damages and awards for personal injury claims, each case is different, and the resulting court-ordered payments are for a specific period of time and with very specific payment orders, including regular, irregular and balloon payments. It guarantees the holder, or annuitant, a payment stream over a fixed term at a fixed rate of interest. Payments from these contracts are paid directly to the plaintiff by a U.S. based insurance company with a credit rating that is generally AAA to A- rated by Standard and Poor’s. AMAs are not new, but the opportunity for you to offer them is. Historically, when the plaintiff decided they would prefer a lump-sum payment for the timevalue of their court ordered award, these contracts were purchased by big, institutional investors. With PAGE 6
the market meltdown of the past several years and a tighter money supply, we have been able to provide our producers with an inventory of cases available for your high net worth prospects and clients. AMAs are attractive because they are issued by highly rated insurance carriers, but both you and your client need to understand that you are purchasing the exact terms of the AMA settlement. This means the contact will be executed to the court ordered terms of the agreement when you assume control of the AMA income stream. After Market Annuities™ can be funded with either Non-qualified funds or Qualified funds through our associated custodian. However, traditional 1035 exchanges are not a recognized source of funds. We have had great success marketing this concept to higher net worth clients that want to create their own personalized portfolio, and ladder these income streams or balloon-type of payments (combinations also work great). It has allowed agents to get in front, AND STAY in front of, these clients for additional cross selling. We have also secured for our agents that sell AMAs access to client legal reviews and Errors and Omissions insurance on each case sold only through our firm. What are you waiting for? Call your GPALM Annuity Specialist today to learn more and for a complete inventory list of current After Market Income Annuities™!
Rich Hellerich, President Great Plains Annuity & Life Marketing JUST the FACTS | 2ND QUARTER 2011
Turn High Net Worth Prospects into clients! After Market Annuities™ can get you in the door! If you are looking for a reason to get in front of, and stay in front of, high net worth clients call Great Plains today. Our After Market Annuities™ offer rates of 5.50% to 7.50% Guaranteed All Years and are issued by A– to AAA Carriers (S&P). High Net Worth prospects will take your call to learn how they can enjoy these returns in today’s low rate environment!
Call Great Plains now to separate yourself from the competition.
800-710-1115 JUST the FACTS | 2ND QUARTER 2011
PAGE 7
Navigating the
Suitability Maze A Brief Review — The New Annuity Suitability Requirements and how they can impact policy issue.
Recently, every annuity carrier has implemented new suitability requirements that has made it more difficult to get business pushed through, and can create headaches not only for you, but your clients as well. When Rule 151a came into being a few years ago, the biggest fear everyone had was about having to get a securities license to sell the indexed products they have become familiar with. The byproduct of the resulting determination to keep FIAs defined as what they are, a fixed insurance product, was the new suitability requirements. And even though these are designed to help agents protect their clients from purchasing the wrong products, it tends to feel more like a way for the carrier to reject an application because the carrier “isn’t comfortable” with the sale. Bottom line is that the suitability requirements are there to protect you as the trusted advisor, as well as the carrier, from an angry client down the road. So, how are you able to help your clients, navigate the suitability maze and still be able to make a living? There is no “simple” solution, but I hope to help you to understand what they are looking for, and what will get your application rejected. A majority of the time when the carrier questions suitability, they are asking you as the agent for a reason to accept the application, not questioning your integrity. There are several questions you should be asking every one of your clients that will help you to respond to any concerns about suitability: PAGE 8
1. What is the amount of total assets? 2. How much of their assets does this application represent? 3. What is the goal that the client is trying to accomplish? 4. How does this sale accomplish this goal? 5. Is the client in a better position before, or after, the sale? I had an agent call me to give me information about a client and help them to find a solution. The client was a 56 year old woman who was recently divorced and received $40,000 from her husband as part of the divorce settlement. The client had never worked, and needed this to generate $2,000/month for the rest of her life. After a quick deliberation, I informed the agent that the client had 2 options: Either find a job that will pay her $2,000/ month, or she better know for sure that she is going to be dead in 20 months. Here is a classic example of how there is no possible sale that would accomplish this woman’s goal. Unfortunately, there are some that would try to force a solution and then become confused when the carrier rejects the application because of it being an unsuitable sale. The way to make this a suitable sale is once the client has found a job to cover her monthly expenses, then this money can be put away to grow for retirement.
JUST the FACTS | 2ND QUARTER 2011
The suitability forms that are now required to be completed are a good source of information to get answers to some of the questions I have listed on page 8. There are a few items on the suitability form that are triggers for someone reviewing it in the home office. 1. Income is less than expenses— Unless you are correcting that with this sale, this is going to cause a red-flag and receive extra scrutiny. 2. Liquid Assets—There is no “magic number” on this criteria, but basically enough liquid assets to cover short-term expenses in case of emergencies, such as major medical expenses. 3. Total Premium vs. Net Worth (excluding primary residence)— This tends to be the hot topic with a majority of the suitability departments. Once the premium starts nearing 50% of the stated net worth of the client, this is going to be a red-flag. 4. Replacement—This criteria is not part of the new suitability requirements, it has been around for some time. How it is being looked at is what’s new. For some companies, it is not enough to make the client “whole” after the transfer, you have to make the client significantly better. Some companies require at least a net positive result of 3-5% to the client after the bonus is applied. Also, how long was the old policy in force before being replaced? If it has been under 2-3 years, the suitability will get extra scrutiny. Just because the application does not fall within the guidelines the company has set out doesn’t mean that it will be outright rejected. The overall profile of the client is taken into consideration. I had an agent send
me an application that was replacing a variable annuity that was put in place by another advisor just over 10 months earlier. I called the agent and explained that this is going to cause a lot of red-flags with the carrier. The agent set up a conference call with me and the client, where I explained to the client that the carrier may not accept this application. The client responded that when he purchased the earlier annuity he wasn’t aware that it was a variable. He had asked for an annuity where he wouldn’t lose any money and the fees were minimal. When he received his statements he noticed that his account value was eroding along with the market. He called the original advisor and was told that it was a variable annuity and the account would fluctuate with the market. After a heated conversation between the client and the original advisor, the client called the new agent and asked to move the money to what he originally intended, an annuity where he won’t lose any money. I asked the client to write a letter stating exactly what he had just told me, sign it and email it over to me. I attached this letter to the application and submitted it to the carrier. Because of this letter from the client, the suitability person was able to see the reason for the quick replacement and approve the application. Another agent submitted an application directly to the home office. The client had $300,000 in annuities that were out of the surrender period and about $15,000 in their checking account. They also had an income that far exceeded their expenses, leaving 75% of their after tax income as disposable income. The clients had no need for the money and wanted to keep it safe while growing it to pass on to their kids. The agent requested to transfer the entire $300,000 over to a new annuity with a little bit of a bonus. The carrier rejected the
JUST the FACTS | 2ND QUARTER 2011
application because they considered the money as liquid since it was out of surrender, and they wouldn’t accept over 50% of someone’s liquid assets as premium. Even taking all of the information into consideration and showing the carrier that this money is not needed, the application still ended up in the carrier’s trash bin. Although suitability can appear to be a complex maze of uncertainty, it is not as difficult to navigate as it appears. The hardest part about conforming to the new guidelines is to understand what it is trying to accomplish and how each individual company implements its process. After going through the questions and potential triggers that I have listed above, give your Annuity Specialist here at Great Plains a call. They can help you on your next application to make sure that it goes more smoothly through suitability. For a copy of the Executive Summary of the Revised NAIC Suitability in Annuity Transactions Model Regulation, visit the Great Plains web site or call your Annuity Marketing Specialist.
Brad Allen Annuity Marketing Consultant
PAGE 9
Do you have clients that need cash today? Great Plains Annuity & Life Marketing may be able to help you help those clients and prospects! Due to the current economic climate, the possible financial needs of your clients and prospects, and ongoing interest from the marketplace regarding our After Market Annuity™ program, we are expanding our access for you to assist clients that may need to receive a lump sum payment for existing annuity or life policies. We are in the process of completing, or have completed, strategic alliances with third-party industry entities that specialize in these transactions to ensure your ability to assist your clients. Chances are you have clients who own traditional single premium immediate annuities or fixed annuities that have been annuitized. Current economic conditions or personal financial needs may some of these clients and/or prospects may prefer to have their cash today, rather than a long term income stream. Our third party resource can offer your client the opportunity to sell ALL or a PORTION of their future annuity payments to help them meet current financial needs. Most clients are not aware that this option even exists, and a referral fee is paid on every case closed. Call your GPALM Marketing Specialist for details and they can walk you through how we can help you obtain an offer on your client’s annuity. Do you have Clients or Prospects like these? Who do you know that has had a significant change in their lifestyle, retirement plans, economic circumstances, or simply inherited an annuity that does not meet their current financial needs? Helping your clients get upfront cash for annuity payments may seem complicated. In reality, there are just a few steps, and our resource does most of the paperwork for you...
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They will talk with you about the type and amount of the annuity, current needs and life circumstances. They will also request a copy of the original annuity and other pertinent documents. • They design a program unique to your client’s personal situation. (i.e.: choosing to sell a portion, rather than all, of the annuity payments). • They can give you a quote—or even multiple quotes for different options. • Once the option that works best is selected, they overnight the required paperwork, clearly outlining the agreement. • As soon as the transaction is approved, a check is sent in 2-3 days, or wired directly to the bank account! Watch for announcements from us soon regarding life settlement opportunities. In the mean time, call your Great Plains Annuity Marketing Specialist for information and examples of individuals that converted existing annuity or life contracts to cash to meet the changes and challenges of their personal situation.
JUST the FACTS | 2ND QUARTER 2011
Who’s pulling the strings at your current Marketing Organization? 800 710-1115
www.greatplainsannuity.com JUST the FACTS | 2ND QUARTER 2011
Great Plains Annuity & Life Marketing is proud to be 100% Independently Owned. We are here to help you find the best annuity and life insurance solutions for both you and your client. We offer you more than 60 insurance carriers to ensure you have access to what you need, when you need it.
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JUST the FACTS | 2ND QUARTER 2011
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Help your clients create a reliable retirement income AND preserve their financial assets with Income Plus! GPALM can now help contracted producers create a customized presentation to show clients and prospects possible strategies to create their ongoing retirement paycheck, while protecting and growing their nest egg at the same time. Want to learn more? Visit our web site or call your Great Plains Marketing Advisor at 800-710-1115 for details on the illustration and the rest of our GPALM IncomePLUS Marketing System! We can give you assistance for a personalized a direct mail prospecting campaign, client approach pieces, fact-finder and more.
No-lapse Universal Life that’s DIFFERENT Typical no-lapse UL plans have zero cash value in the later years which can result in loss of coverage if they miss a premium payment. This plan builds GUARRANTEED CASH VALUE in later years giving policy owners options that could keep coverage from lapsing when needed most. A plan to really consider for UL sales. Survivorship TERM INSURANCE Due to the uncertainty in congress regarding exemptions, exclusions and tax rates for Estate Taxes for more than just the next 2 years, many clients and advisors are taking a wait and see attitude. They do not know how much life insurance to purchase, and premiums gifted to the ILIT can be substantial. Waiting results in higher premiums due to age changes with additional risk of changes in health that could negatively impact underwriting decisions. Given all of this, it may make a lot of sense to your client and their advisor to “get some coverage in place now.” This Survivorship Term product provides much lower premium outlay with convertibility to permanent Survivorship plan at a later date. Available for 10, 20 or 30 years depending on ages. Life Plans w/LTC Benefits - Avoids “use it or lose it” objection Two types of plans are available. Each provides death benefit if LTC benefits are never used. Based on amount of business we are doing these plans make sense to clients everywhere. Call Dick Reynolds, CLU for details:
(800) 710-1115 JUST the FACTS | 2ND QUARTER 2011
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800-710-1115 *14 year duration may not be available in all states. Fidelity & Guaranty LifeSM is the marketing name of Fidelity & Guaranty Life Insurance Company, and in NY only, Fidelity & Guaranty Life Insurance Company of New York. Each Fidelity & Guaranty Life company is solely responsible for its contractual commitments. Annuities underwritten by OM Financial Life Insurance Company and issued by Fidelity & Guaranty Life Insurance Company, Baltimore, MD. Guarantees are subject to the claims paying ability of Fidelity & Guaranty Life Insurance Company. Optional provisions and riders may have limitations, restrictions and additional charges. Subject to state availability. Certain restrictions may apply. Indexed interest rates are subject to a cap. Surrender charges may apply to withdrawals. For Producer Use Only - Not For Use With The General Public Product Training Must be Completed Prior to Solicitation.
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JUST the FACTS | 2ND QUARTER 2011
The Seven Traits of Successful Annuity Marketing Bottom line, your success as an annuity advisor requires making sales. If you don’t have an assistant or support staff (especially if you don’t have an assistant), you need to incorporate marketing strategies that help generate sales opportunities for you, whether it’s your website, print marketing materials, email marketing campaign, seminars, a combination of these, or something else. And if you want to get the most sales possible, doesn’t it make sense to incorporate the marketing strategies that you believe in, you will monitor and refine, and that actually work? Here are seven traits of highly effective marketing efforts... (1) Define your customer - Profile your ideal target client by asking yourself: Whom do you want to purchase your products? Here are some sample questions for annuity sales. • Are you looking for “safe money” prospects with CDs or fixed annuities? • Are your target customers in the stock market or variable annuities today? • How comfortable are they with market risk? • Are they seeking guaranteed income they can’t outlive? • Create other questions that define your perfect client... The answers to these questions will help determine which type of fixed annuity product will best fit their needs. Also look at your existing client base for the common traits that define your best clients, and any niche markets you may have the ability to penetrate. (2) Create Your Marketing Strategy - Stop the “fly by the seat of your pants” marketing approaches. Develop a plan that implements marketing and lead generation tools that you are committed to, capable of using, and really work. Many advisors jump from one marketing effort to another without giving the existing tool a chance to succeed. This results in wasted marketing dollars and poor response. Example: If you are not proficient at public speaking, why are you considering seminars as a lead generation tool? What is the best combination of marketing tools for you and your practice? Can they feed off each other to maximize results? JUST the FACTS | 2ND QUARTER 2011
(3) Set a budget– commit financial resources to your marketing efforts. This can be a percentage of your commission revenue, or a set amount based on the costs of the marketing tools you want to employ. This trait will be greatly influenced by Trait 2 above, in selecting tools that you think will give you the best chance of success and know you are committed to use. (4) Measure the effectiveness of your marketing efforts – Are your marketing tools generating ANY prospects? Are the resulting pre-qualified prospects using your definition of the “perfect client” (age, assets, presumed needs) in Trait 1 above? In the new world of annuity “suitability”, chasing prospects with limited assets will result in frustration with declined applications, embarrassment in front of the prospect, and wasting your time on people you can’t help. Use your marketing to maximize your sales efforts by eliminating prospects that don’t fit your prefect customer profile. Hold yourself and your marketing programs accountable for your success by measuring the results of your efforts! (5) Use your most valuable marketing asset – Your existing clients are your most valuable asset. They have friends and relatives that are perfect prospects for your products and services. If you are their “trusted advisor” they will already be telling others how you helped them create a plan to reach their financial goals and sleep better at night! Are you comfortable asking clients for these referrals? If not, you need to review your sales practices. Ask your GPALM Marketing Specialist for information on an effective, inexpensive, and nonthreatening method we offer our existing annuity producers to generate referrals! (6) Use technology – It is amazing to hear that seemingly successful producers track their sales activity in their head or in a notebook. Invest in CRM: Customer Relationship Management. Create a customer database or spreadsheet to track activity with clients, prospects and referrals. This tool is necessary to remind you of birthdays, policy anniversaries, etc. so you can be proactive in touching your clients. Used correctly, CRM creates additional sales opportunities with less effort. (Continued on page 16) PAGE 15
Continued from page (15) (7) Use multiple marketing tools on the same prospects - I’ve spoken with numerous producers that use seminar marketing as their primary marketing tool, only to focus on the attendees that actually make an appointment. Where’s the targeted mailing list you used for the seminar? What about the people that responded but failed to attend? Given the costs associated with seminar marketing, why would you not squeeze every possible prospect out of this effort? A drip marketing program might include telemarketing, direct mail, email and other efforts to convert a seminar mailing “suspect” list into prospects and clients. These traits are just the start to building an effective marketing effort. To help you execute your marketing plan, here are some of the tools available to our contracted producers through Great Plains: GraphixTech Ever lost a sale because you did not have the credibility of a web site? GraphixTech offers professional, goal-oriented websites, stunning print graphics and will help you build a distinctive brand focused on your insurance practice. Owner Shawn McKenna brings 15 years of annuity and life insurance industry experience to meet your advertising, marketing and branding needs including web site design and hosting, seminar marketing, direct mail, print services, point-of sale materials and much more. Visit www.thegraphixtech.com or see page 23 of this issue. Financial Help Centers Call to find out how you can create painless referrals from existing clients using this book marketing and internet lead generation program. The program also includes a web site that can generate online leads and prospects as well as a detailed marketing program with ideas and suggestions regarding use in your community. FHC is a cost-effective PAGE 16
The Seven Traits of Successful Annuity Marketing way to increase your sales, especially if you have an established client base. Call your GPALM Annuity Specialist or visit our web site for a special introductory offer! The Virtual Assistant The Virtual Assistant is a complete financial advisor toolbox located on the Internet. It provides unlimited access, via a password and user id, to tools and support materials for financial advisors. The special Great Plains subscription is just $19.95 per month, a 20%% discount off the regular rate and the first month is always free! No other product offers the convenience, accuracy and industry-trusted resources of The Virtual Assistant at such an affordable price. The Virtual Assistant offers Financial Snapshots, Priority Approaches, and Priority Planning Reviews. It also includes the Virtual Advisor, a twice monthly publication providing ideas on how to make sales using The Virtual Assistant, as well as executive summaries of events that affect financial advisors. Present Your Practice Seminar marketing is a highly effective and time/cost efficient way to procure prospects. PYP creates both the production of the mailers and presentations that make attendees schedule appointments. PYP Owner, Kim Magdalein, has produced over 1,000 seminars for his own practice. He has a toolbox full of tips and advice for the event host. His methods will help you present yourself and your practice in the most credible way. Check out their services, samples and all-inclusive pricing at www.presentyourpractice.com.
King Marketing Group Many questions arise when launching a new marketing campaign, and the most critical factor for success is the prospect list. • Who will we target? • What Sources are available to match our database needs? • How do I know which file will produce the best results? Direct Marketing isn’t a one-size fits all application. “Just a list” doesn’t measure up in today’s competitive market place. King Marketing Group, Inc. works with virtually every available, credible, compiled and self-reported list source. Rather than limiting your needs to one data source, Matt King puts more than 15 years of experience to work with many sources and offer the best solutions to match campaign needs. Great Plains Advertising Support Do you have an effective marketing plan to generate new sales and prospects? Visit our web site: www.greatplainsannuity.com, select the Marketing Resources tab, then “2011 Marketing Plan”. Our advertising team helps our contracted producers build a lead generation strategies that fit their budget, market and style. If you are looking for new marketing ideas, a facelift for tired branding and marketing pieces, or a complete overhaul of your lead generation programs take advantage of this service. Call your GPALM Marketing Specialist to discuss how you can improve your marketing and lead generation efforts!
Get the confidence and materials needed to realize the results you want for your business today! Call us to receive a free market research report to discover just how many prospects you have near you. JUST the FACTS | 2ND QUARTER 2011
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• Guaranteed Return of Premium • Liquid Account1 TRIP INCENT IVE! • 6-year rate-to-term Call today for Qualification D • Issue Ages: 0-90 etails! • 10% free withdrawals beginning in the first Contract Year2 • Full value on death3, no commission charge back • Nursing Home/Terminal Illness Waivers (not available in all states)
Call Great Plains now for Contracting and Sales Kits:
800-710-1115 Contracts submitted for the “4 For 6” rate special count 100% towards production qualification goals for the 2012 incentive trip. All other Lighthouse sales qualify 150% toward trip production through June 15, 2011. Rates may be changed at any time without notice, and the rates set forth herein may not be available at the time of purchase. *This Bonus is paid on all of the contract value when the total value reaches $125,000 provided that the credited rate associated with each allocation to a Guarantee Period, after application of the Accumulation Bonus Rate, exceeds the contract’s guaranteed minimum interest rate. 1. The One-Year Renewal Guarantee Period is not available for Purchase Payments. It is only available to transfer amounts from a guarantee period whose surrender change period has expired, or to transfer free withdrawal amounts. 2. Withdrawals before age 59½ may be subject to a 10% IRS penalty tax. 3. Less any applicable premium tax.
JUST the FACTS | 2ND QUARTER 2011
PAGE 17
Become thE
BIG FISH
in your small Market!
Great Plains announces GPALM Rural Agent Marketing Program for contracted producers Small town America does not equate to small time business, and Great Plains is gearing up to assist small community producers in becoming the big fish in their small market. While these small or rural communities may be short on population, they can be big in opportunities for annuity and life insurance sales. We are finding that rural America has not been bombarded with direct mail and seminar marketing to the same extent urban prospects have experienced. We make this claim because we are seeing an interesting result of rural response rates per 1,000 being up to 100% higher for direct mail and seminar advertising. We believe this is because fewer insurance and annuity advisors are working rural areas. We also believe that this lack of attention, coupled with prospects’ concerns for “safe money” protection and guarantees, creates their desire to learn more about principal-
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protected alternatives to low rate CDs or their savings being exposed to market losses. We also believe that this could be a very productive market for life insurance using wealth transfer concepts with the family farm or other assets. If you live in a small community, you may have experienced frustration in trying to purchase a seminar mailing only to find that the vendor required a 5,000 piece mailing as a minimum order. If your list count totaled 1,500 to 2,800, you were left with the option of expanding your geographic area to get to the 5,000 count, or try to work with a local printer/mailing house/etc. and do it yourself. The resulting expense or amount of time spent on trying to create your own custom program probably failed to generate the results you were expecting.
program, we do have some caveats regarding available territories, and minimum production requirements to remain in the program. Our intention is to protect those investing in this program from overcrowding in their marketplace and diminished results. We are working with experienced and proven industry vendors to ensure your response is adequate and profitable. Also remember that your production can create marketing dollars to further reduce your costs with our Tripp’in Program. If you would like more information on the GPALM Rural Agent Marketing Program, contact your Great Plains Marketing Specialist for more information. You can also go to the Marketing Resources tab at www.greatplainsannuity.com for an overview of the program.
Great Plains has taken the guess work out this process, and provided a cost-effective and time-saving alternative for you to consider. While we do not reduce commissions to participate in the
JUST the FACTS | 2ND QUARTER 2011
Become the Big Fish in Your Small Market! We have two questions for you:
• Seminars
1. Are you missing steady sales and commissions because you think there’s not enough opportunity in your small market?
• Direct Mail
2. Would you like to be the BIG fish in your small market?
• Custom Marketing
• Telemarketing
We believe small markets can produce big results. That’s why GPALM has created a turn-key marketing system for annuity and life producers that find themselves serving smaller markets like rural America. Sound interesting? Invest a few moments to see if we can help you unlock the potential benefits in serving smaller communities. We can help you become a big fish! JUST the FACTS | 2ND QUARTER 2011
PAGE 19
Just by Asking... One Important Question! I want to share a recent case with you that greatly benefited the client and resulted in a nice commission for the broker when he asked “just one more question” at the close of his sales interview...
She indicated that she had approximately $155,000 in a couple of CDs earmarked for her children and grandchildren. Not wanting to risk principal, she intended to leave them in the CDs.
The Prospect— The agent scheduled an appointment with an annuity lead:
What the Agent said Next— “If that’s the case, may I show you how you can leverage those monies to better benefit your children and grandchildren? Allow me to explain”...
Female widow, age 70, who derived her retirement income from social security, a pension and some investment income from assets she and her husband had accumulated. She still lived in the modest home she and her husband had purchased 35 years earlier. She had two grown children and three grandchildren. The Appointment: Following discussion about the client’s various assets, several annuity options made sense. The client purchased a $50,000 fixed annuity, and scheduled a second annuity purchase within the next three months. However, the appointment did not end there... One Important Question: Once the agent completed the paperwork for her initial annuity sale, he asked this simple question:
The Second Sale: • Single Premium Whole Life with $155,000 premium • Generated Guaranteed Death Benefit of $255,135 • In one week she increased her legacy for her heirs by more than $100,000! • The entire $255,135 would be passed to heirs Income Tax Free • If her financial picture worsened, she had full access to her original premium • Underwriting consisted of a simple application and phone interview • Agent earned $15,500 by merely asking one simple question
“It appears that your current income meets your retirement income needs.
If you work in the Senior Market, ALWAYS ASK THIS IMPORTANT QUESTION!
Do you have any monies, perhaps in a CD or elsewhere, that you will probably never need to touch and you intend to pass along to your heirs”?
There is no better product to pass assets generationally!
Dick Reynolds, CLU
With over 30 years of life insurance experience, Dick not only provides product, medical underwriting and advanced sales expertise on life cases, but helps agents find the right solutions for their client’s particular circumstances by thinking outside the box. You can reach him at 800-710-1115 or Dick@gpam.biz. PAGE 20
Set Yourself Apart from The Competition! If your prospect needs reliable retirement income, selling an annuity makes sense. However, we know there are many consumers, retired or very near retirement, who have some cash assets they will probably never touch (CD’s, annuities, cash value in life policy, etc.) because they hope to leave a legacy to heirs or charity.
This is where presenting a Single Premium Whole Life plan makes more sense than the annuity. Given the choice, your prospect will agree. Benefits of Single Premium Life • Heirs/Beneficiaries receive significantly more money • Unlike an annuity, the death benefit is 100% free from income taxes • Products provide for 95% to 100% liquidity from day 1 • LTC benefit available with some policy forms
It’s a Simple Sale • Product is very simple for the Client and the Agent to understand • NO EXAMS, blood or urine tests required-simplified issue with a simple application • Underwriting typically completed in a week or less, speeding up commissions
Benefits for the Agent • Commissions are typically higher than for annuities. • Many agents only offer annuities. By offering both, you’ll set yourself apart.
Call (800) 710-1115 today! Ask for Dick Reynolds, CLU or Tim Edwards In 5 minutes we can tell you what to ask a client and how to easily explain the product and its benefits. JUST the FACTS | 2ND QUARTER 2011
PAGE 21
Just a Thought... In my 38 years of industry experience, and helping annuity producers create marketing plans for the past 20 years, I have witnessed a frequent marketing phenomenon, even among top producers. This is where the agent is constantly seeking a new lead source or program, rather than develop the most valuable resource available to them – their existing client database. Great Plains Annuity & Life Marketing is excited to offer our existing marketing and lead generation tools, and we will be introducing several more programs later this spring. Please see page 16 of this issue for information regarding our marketing tools, and contact your GPALM Annuity Specialist for more information and assistance if you are interested in incorporating any of these tools in your practice. But I digress; let’s get back to your most important lead source... If you are a “one-and-done”, transactional focused producer you can stop reading now. While there are silver-tongued salesmen that approach the sales process with one product/one solution they are going to find the new annuity suitability requirements greatly reducing their closing ratio. If you are dedicated to assisting your client with overcoming their fears in creating reliable retirement income, accomplishing wealth transfer goals, and creating peace of mind, you are relationship-oriented. It’s about the solution – NOT the product. You listened patiently, and asked questions to hear their dreams, desires and goals for a secure retirement and protecting their family. After this fact-finding interview, you returned with a plan designed to accomplish your client’s goals. If they bought, I believe they bought your ability to resolve their problems, not the product. Here’s the point: Don’t you think these clients share their good fortune in working with you with their friends, relatives and acquaintances? There is no amount of direct mail, seminar marketing or other advertising that can match the power or your client telling their golf foursome, bridge club, or relatives that they sleep
PAGE 22
better at night now that they have created their custom retirement and wealth transfer program with your help. Visit our web site, www.greatplainsannuity.com, go to the Marketing Resources tab, select GPALM Marketing Support, and access “Working Your Client Database” for ideas on how you can ask existing clients to help you grow your business. There is no more valuable lead than a referral from a satisfied client, and when done consistently, sales to these new referrals can pay for additional marketing programs that you value. Just remember that throwing money at a lead program, without your commitment to consistently work the program is a waste of money.
Robb Edwards, Principal
JUST the FACTS | 2ND QUARTER 2011
Professional, goal-oriented websites, stunning print graphics and distinctive brands focused on building stronger, more effective businesses! Whether you are a new business just starting out or if you need to spruce up your existing “brand”, GraphixTech can can handle it all. Our goal is to provide you with high-quality marketing material that makes a positive impact for your business.
Website Packages:
Yearly Savings of $430.00
Business Card Website GPAM SPECIAL: $570.00
• Free Setup • 1 Year Hosting • Up to five email addresses • One Contact Form • Website Maintenance* • Webmail • Free Flash Banner
Branding Packages Design Only: $400.00 Design & Print** $625.00 (500 Each) $710.00 (1000 Each)
• Free Setup • 1 Year Hosting • Up to three email addresses • One Contact Form • Website Maintenance* • Webmail
Five Page Website GPAM SPECIAL: $900.00
Business Packages:
• Logo Design • Business cards • Letterhead • Envelopes
Yearly Savings of $400.00
(Compliments of GPAM - $100 Value)
Complete Packages $1,100.00 (Without Printing) $1,425.00 (Quanity 500) $1,510.00 (Quanity 1000) • 5 Page website • Free Setup • 1 Year Hosting • Up to five email addresses • One Contact Form • Website Maintenance* • Webmail • Identity Branding Package
*Minor text changes / edits only. **Premium Paper Stock available at additional cost; two color process for letterhead and envelopes; print items include: Business cards, Letterhead & #10 Envelopes. Domain name is not included in web packages. Prices as of 1/1/2011 and Subject to change. Additions and modifications to packaged websites available at additional cost. Additional email accounts available. Call for details.
Call your GPALM Marketing Advisor or Robb Edwards at: 800.710.1115
JUST the FACTS | 2ND QUARTER 2011
PAGE 23
11900 West 87th Street, Ste. 115 Lenexa, KS 66215
100% Independently Owned! GPALM PRODUCERS ACCESS ANNUITY & LIFE RATES 24 HOURS A DAY!
800.710.1115
MYGA RATES COME BACK
STRONG
4.10%
Guaranteed 6 Years $125K+ Effective May 2 to June 15, 2011. See Page 17 for more information. Great Plains is one of the few AMOâ&#x20AC;&#x2122;s with access to this product, but time is limited!