2ND QUARTER 2012
NEW ANNUITIES FOR YOUR EYES ONLY (SEE PAGE 6)
800.710.1115
www.greatplainsannuity.com
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800.710.1115
www.greatplainsannuity.com
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INSIDE 6
UNIQUE NEW ANNUITIES NOW AVAILABLE THROUGH GREAT PLAINS
Three exclusive and unique new annuity solutions are coming to Great Plains beginning May 26th. We are pleased to announce we have joined the AltiSure Group to bring GPALM producers access to these exciting and innovative new products. Learn more by turning to page 6, then call your GPALM Annuity Specialist for contracting and sales kits!
8
SIMPLIFY YOUR GIBR HOMEWORK
The benefits of Guaranteed Income Benefit Riders have helped to skyrocket sales of FIAs the past few years. Your Great Plains Annuity Specialist can help you with your homework when you are studying the best income solutions to meet your clients’ retirement income needs.
10
ATTENTION REGISTERED REPRESENTATIVES SEEKING A STRATEGIC PARTNER
If you are tired of compensation haircuts on your non-securities business and seek a B/D committed to being a true strategic partner, see page 10 and call us!
12
WHAT’S HOT AT GPALM?
A quick summary of news, information and ideas to help you write more business...
15
2ND QUARTER 2012
PRINCIPALS • Rich Hellerich • Robb Edwards
ANNUITY MARKETING • Brad Allen • Brian Dixon • Carlos Rojas • Cindy Nelson • Jane Plumberg • Kara Jones • Scott Andrew
LIFE MARKETING • Dick Reynolds • Jeff Bregovy
ADMINISTRATION • Cris Larson • Kathy Putnam • Mackenzie Oakley • Naomi Mayekawa
KIM MAGDALEIN LEAD GENERATION
Great Plains is pleased to announce our strategic alliance with a Broker/ Dealer focused on independence, flexibility, and serving you and your clients - without haircutting your comp!
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INCOMEPLUS SUITE
Beware of retirement income benefit presentations to clients that rely on projections rather than guarantees. Your GPALM Annuity Specialist can help you find the best solutions to meet your client’s specific situation, and real income benefits that will be there when needed. Take advantage of the income planning tools available at Great Plains!
20
SOME THOUGHTS ON LIFE INSURANCE
Here are some thoughts regarding the current state of the life insurance marketplace, and sales opportunities you may need to consider.
JUST the FACTS | 2ND QUARTER 2012
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10901 W 84th Terrace., Ste. 125 Lenexa, KS 66214 Toll Free: 800-710-1115 Local: 913-492-9994 • Fax: 913-492-9998 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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5/21/2012 12:56:02 PM
JUST the FACTS
THE BUCK STOPS HERE! I was born and raised in Missouri and I’m proud of my heritage. One famous Missourian displayed a plaque on his desk during his years in the White House that read “The BUCK STOPS here!” There’s reason Missouri is known as the “Show Me” state, and I was raised to take responsibility for my actions. With recent industry news headlines indicating a major insurance carrier may be offering their U.S. operations for sale, I want to remind producers working with us that we are 100% independently owned. Watching some of the industry giants that have bought numerous Annuity Marketing Organizations over the past 15 to 20 years, I believe the days of the truly independent annuity and life broker could be numbered.
Here’s my point: When you consider products from a carrier and their “company-owned” marketing firm, beware if the suggested product solutions seem to always be from the “mother ship”.
Rich Hellerich Principal
Don’t misunderstand; we think competition in our marketplace benefits both you and your clients with better service and better products. We have many fine competitors that help make our industry, and us, better. Many of you veterans know the term “buying business”, where the introductory interest rate on a new product roll-out was designed to get your attention and sales rolling. Where we have an issue is “buying market share” through a strategy designed to force you to move to a firm with your existing contracts in return for access to the cartel product. The potential danger is to get hooked on offering all your prospects the same “toaster” – the mother ship product offering with artificially high comp, to the determent of your client’s (and your own) best interest long term. Our job is to help you help clients protect and preserve their retirement nest egg. In order to give you unbiased advice and support, we believe we have to be 100% independent from any carrier ownership. You can rest assured that at Great Plains, the buck stops with me. I’m independent, our team is independent, and we don’t steer your business towards anything less than our best efforts to help you serve your client.
800.710.1115
www.greatplainsannuity.com PAGE 4
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JUST the FACTS | 2ND QUARTER 2012
5/21/2012 12:57:37 PM
Who pulls the strings at your Marketing Organization? Looking for independent and unbiased product solutions to best serve your clients? Concerned about hidden ownership and decisions that can affect your ability to do business? We believe you have enough challenges in today’s annuity and life marketplace without worrying about who pulls the strings at your marketing organization. At Great Plains Annuity & Life Marketing, when it comes to serving you and your clients with the best solutions available, the buck stops in our office, not in some boardroom thousands of miles away. At Great Plains, the buck stops here... I guarantee it!
Rich Hellerich Principal rich@gpam.biz
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 2ND QUARTER 2012
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100% Independently Owned! GPALM PRODUCERS ACCESS ANNUITY & LIFE RATES 24 HOURS A DAY! PAGE 5
5/21/2012 12:58:38 PM
Three exclusive and unique new annuities are available June 4th, 2012 through Great Plains! Great Plains Annuity Marketing and The AltiSure Group are excited to announce Great Plains’ membership in The AltiSure Group’s exclusive annuity distribution network. Great Plains’ producers and their clients will have access to The AltiSure Group’s exclusive line of fixed indexed annuities issued by Phoenix.
to position tax-qualified assets as part of their solution, provides guaranteed benefits, and prefer no extensive underwriting.
The Protected Solutions Annuity’s SafetyGuard Benefit guarantees as much as 400% of premium for chronic care benefits with no extensive underwriting, and if chronic care is not needed, an Enhanced Death Benefit guaranteeing as much as 200% of premium (depending upon issue age). Rider fee is 1.50% of account value. Early or excess withdrawals are subject to a 12 year (10 years in some states) surrender charge schedule and an MVA.
No extensive underwriting. The Protected Solutions Annuity’s application process only involves four “Yes / No” health history questions to qualify for the Chronic Care Benefit.
The Premier LifeStyle Annuity’s Income Enhancer Plus Benefit provides a guaranteed lifetime withdrawal based upon an immediate 20% income bonus, plus 7% compounded growth, plus 125% of interest earnings (7% growth is for the first 10 years) applied to the Benefit Base. Income is available right away! Rider fee is 0.95% of the Income Benefit Base. Early or excess withdrawals are subject to a 12 year (10 years in some states) surrender charge schedule and an MVA. The Secure LifeStyle Bonus Annuity offers an 8% premium bonus (6% or 5% in some states) through issue age 85. The G.I.F.T. Plus Benefit provides a guaranteed lifetime withdrawal based upon an immediate 20% income bonus, plus 7% simple growth for 15 years, all applied to the Benefit Base. If the income benefit is not used, an Enhanced Death Benefit growing at 6% simple for 10 years for issue ages 70 and below, and at 5% simple for issue ages 71 and older for 10 years (or attained age 85) is available. Rider fee is 0.95% of the Income Benefit Base. Early or excess withdrawals are subject to a 12 year (10 years in some states) surrender charge schedule and an MVA. The Protected Solutions Annuity: This groundbreaking annuity is designed for clients who are concerned about potential future chronic care expenses, but are seeking an alternative to traditional stand-alone LTC policies. These consumers prefer an asset-based solution that allows them
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Easy-to-Grasp Benefit. The Chronic Care Benefit is available anytime after the end of the 5th contract year, and grows at a guaranteed multiple of premium through the end of the 15th contract year (less withdrawals). At any time, simply divide the Chronic Care Benefit Base by 5, and you have the annual benefit for nursing home care. Chronic Care Benefits are available for a maximum of 5 contract years. As an example, a 65 year old who positions $100,000 to the annuity is guaranteed as much as $400,000 for chronic care expenses after the end of the 15th contract year; that’s $80,000 per year for 5 years if they are receiving care in a nursing home! Qualification for Chronic Care Benefits is based upon the covered persons inability to perform at least 2 of 6 Activities of Daily Living without substantial assistance for at least 90 days. Benefits are available for both care in a nursing home or non-nursing home care (a reduced benefit equal to at least 50% of the nursing home care benefit). If the covered person never needs the Chronic Care Benefit, the Enhanced Death Benefit guarantees wealth transfer to their heirs (paid over 60 months). Many important details apply. For complete information about the Protected Solutions, Premier LifeStyle, and Secure LifeStyle Bonus annuities, contact Great Plains Annuity Marketing today! FOR PRODUCER USE ONLY Living benefit payments are drawn first from contract value. PHL Variable Insurance Company guarantees benefits based upon it’s claims-paying ability. Benefit base is not a guarantee of contract value, but used only to determine fees and/or benefits. The Enhanced Death Benefit is negated upon commencement of living benefits. The Protected Solutions Annuity, Premier LifeStyle Annuity, and Secure LifeStyle Bonus Annuity (10FIA, 11EWB, 11GLWB2, and 11RSP) are a single-premium indexed annuities issued by PHL Variable Insurance Company (“PHLVIC”), Hartford, CT and offered exclusively through The AltiSure Group. PHLVIC and The AltiSure Group and associated marketing Organizations are not affiliated. Product features and availability may vary by state. PHLVIC is not authorized to conduct business in NY and ME. BPD38326 5/12
JUST the FACTS | 2ND QUARTER 2012
5/21/2012 12:59:50 PM
A NEW AND UNIQUE ANNUITY SOLUTION FOR CHRONIC CARE! THE PROTECTED SOLUTIONS ANNUITYSM
400%
Up to
Up to
200%
of Premium1 GUARANTEED
of Premium2 GUARANTEED
Chronic Care Benefit1
Enhanced Death Benefit2
LESS PREVIOUS WITHDRAWALS; BASED UPON ISSUE AGE.
LESS PREVIOUS WITHDRAWALS; BASED UPON ISSUE AGE.
Initial benefits become available beginning in Year 6; maximum benefits are available after 15 years.
Chronic Care Benefit Eligibility Upon Inability to Perform at Least 2 of 6 Activities of Daily Living Without Substantial Assistance for at Least 90 Days.
Chronic Care Benefits available for Nursing Home or Home Care for up to 5 years1! SIMPLE FOR THE AGENT*
NO UNDERWRITING 4 “Yes / No” Health Questions for Benefit Rider Qualification.
AN INDEXED ANNUITY Choice of Indexed Interest or Fixed Rate Strategies.
SIMPLE FOR THE OWNER*
EASY-TO-GRASP benefits based upon a simple guaranteed multiple of premium1,2.
10% FREE WITHDRAWAL
after 1 contract year allows for supplemental or RMD income. st
TAX QUALIFIED ASSETS3 accepted for potential Chronic Care Benefits1.
12 Year Surrender Charge Schedule (10 years in some states). Product available June 4, 2012
800.710.1115
www.greatplainsannuity.com * ”Simple for the Agent” and “Simple for the Owner” are intended only as a contrast to similar annuities that require underwriting and offer more complex benefit formulas; it is not intended to imply a reduced training, explanation, or disclosure requirement. 1. 400% of premium assumes issue ages 40 to 65, no withdrawals, maximum benefit after 15 years. Guaranteed Chronic Care Benefit varies by issue age. Annual benefit for care received in other than a Nursing Home is equal to at least 50% of the Nursing Home care benefit. The Chronic Care Benefit is not Qualified Long-Term Care Insurance as defined in the Internal Revenue Code. The SafetyGuard Benefit is a mandatory rider for an annual fee of 1.50% of accumulation value. All guaranteed payments are deducted from contract value and are guaranteed by the rider after the contract value reaches zero. 2. 200% of premium assumes issue ages 40 to 60, no withdrawals, maximum Enhanced Death Benefit after 15 years. Enhanced Death Benefit growth varies by issue age, and is paid over a period of 60 months. The Enhanced Death Benefit it is not available for withdrawal, is not life insurance, and may be subject to taxation.. The Enhanced Death Benefit is not available if Chronic Care Benefit is commenced. The SafetyGuard Benefit is a mandatory rider in exchange for an annual fee of 1.50% of accumulation value. 3. Purchasing this annuity does not modify the tax treatment of IRA assets including the need for Required Minimum Distributions. The Protected Solutions Annuity (10FIA, 11 EWB, 11GMDB-A.1, and 11RSP) is a single-premium indexed annuity issued by PHL Variable Insurance Company (“PHLVIC”), Hartford, CT and offered exclusively through The AltiSure Group. PHLVIC and The AltiSure Group and associated Marketing Organizations are not affiliated. Product features and availability may vary by state. PHLVIC is not authorized to conduct business in NY and ME. Guarantees are based upon the claims-paying ability of PHL Variable Insurance Company. BPD38331 5/12 FOR PRODUCER USE ONLY
JUST the FACTS | 2ND QUARTER 2012
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PAGE 7
5/21/2012 1:00:00 PM
Simplify
Your GLIB Homework GIBR (income riders) have become the feature of fixed indexed annuities that have helped skyrocket sales the past few years. These riders have met the needs of clients seeking guaranteed lifetime income without annuitizing the actual contract. In 2011, there was about $30 billion dollars of Fixed Indexed Annuity sales. Given the trend of client concerns regarding the creation of reliable lifetime retirement income, you could comfortably say that 50% of those policies had an income rider attached (if not more). Here are some questions advisors frequently ask when we work on cases: • Who has the best rider? • Which rider is the cheapest? • Which rider offers the highest payout? All of these questions are important, and all of these questions are critical to completing your due diligence and case development for your client. Just has we had to educate ourselves regarding the different interest crediting options available in FIA contracts, we need to understand the various moving parts of income riders. You have bonus, you have rollup rate, you have compound and simple interest, you have payout percentage, you have rider costs, and you have income doublers, etc. These items and more are important considerations in finding the best solution for your client. Each insurance carrier has their own unique income rider design to attract a particular niche of the market. Having worked for a large insurance carrier, I know this first hand. Their goal was to design an income rider that is competitive for policyholders wanting to take income for years X-Y. They focus on that segment and then market it. Now, multiply that by all of the insurance carriers offering GIBR benefits in the marketplace. At Great Plains, we have access to the majority of income riders available today. That makes for a lot of different riders serving many different niches. When you combine this with the individual tweaks and changes made by each carrier to their rider, trying to keep up puts most advisors in a tailspin. As a result, most agents tend to focus on the one or two income riders they are familiar with and put the rest on the shelf. But what about the dozens of other GIBRs - are those not competitive?
At Great Plains, we know firsthand the task of evaluating the available GIBRs is daunting. Therefore, we have created a resource that saves you hours of research and allows us to help direct you to best solution based on the needs of your individual client in a matter of minutes. Our Income Rider Analyzer compiles the top 15 income riders in the market and breaks them down according to your client. Let me repeat this, we essentially can run 15 different illustrations for your client with 15 different companies to find out which one provides your client the highest payout at each deferral period. As soon as we get notification that an insurance carrier has tweaked or changed their income rider, we make that change to our worksheet in order to have as current payouts as possible. My agents find this service immensely helpful. They give me one call with the client’s age, single or joint payout, and anticipated premium, and I send them a worksheet that highlights the top two payouts, and shows what the other riders are paying. My job is to ensure you absolutely have the best product options for your client based on their specific goals. With this tool, we save you time and time is money. This worksheet has allowed many of my agents increase their FIA business over 30% because they are confident that they are offering the best product solutions available. Call me today and let me show you how else Great Plains Annuity can bring more value to your business.
Scott Andrew Annuity Specialist Scott@gpam.biz
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It’s Your Choice... Spend hours researching the best income riders for your clients, or call Great Plains for your best answers in minutes! Tired of keeping up with all the industryleading guaranteed lifetime income benefit riders? Did you know that the largest rollup rate does not always equal the highest payout? Think you know everything you need to know to recommend the best solution for the different income needs of clients and prospects? Educate prospects with information designed to help them identify and focus on their needs, dreams and desires for guarantees and peace of mind in their retirement years. Combined with the power of our exclusive IncomePLUS presentation, your client can rest assured they have made the right decision. We help you present a professional, easy to understand strategy to create dependable, tax-advantaged retirement income, plan for potential financial issues later in life, and build legacy gifts to their children, grandchildren and charity. More and more fixed indexed annuity professionals are discovering Great Plains offers fast answers for the best income rider solutions and assistance that leads to better advice, larger sales, and happy clients! Call your GPALM Annuity Consultant today to learn more!
Bring your clients more than just a product solution. Help them take control of their financial future!
JUST the FACTS | 2ND QUARTER 2012
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800.710.1115
www.greatplainsannuity.com PAGE 9
5/21/2012 1:01:35 PM
Fintegra is the CLEA
“A NEW Wa
ATTENTION REGISTERED REPRESENTATIVES...
If you are suffering from “commission haircuts,” Great Plains can introduce you to an alternative solution! INDEPENDENCE IS KEY Fintegra was founded to be a truly INDEPENDENT financial services firm, based on “financial integrity” and doing what is right for the client. They embrace the most important cornerstones you should look for in a broker-dealer – integrity, independence, prompt and friendly service, leading-edge technology, diverse product mix, competitive compensation, objective perspective, and superior back office support.
TECHNOLOGY IS CRUCIAL LEADING-EDGE TECHNOLOGY is crucial in order to receive current and accurate information, to remain competitive, and to gain efficiencies. Fintegra has developed an industry-leading, user-friendly, webbased package, which will enhance your ability to conduct your securities business every day: • Pershing’s NetX360™ • Various client relationship management systems • Form completion system with e-signature capability • Industry-leading financial planning software • On-line commission and production viewing and report generation • Vast research and news sources • Numerous marketing resources • Back office intranet with marketing center • On-line material printing/ordering • Electronic business submission and document retrieval systems
PARTNERSHIP IS ESSENTIAL • Fintegra is a broker/dealer that believes the people we work with make all the difference. • Their Conversion Coordinator directs the transition team in every aspect of the conversion process. • Fintegra’s Sales Support staff delivers more than sales ideas. They follow through to ensure the product suitability and selection process goes smoothly for your client and that you have the pieces needed to build a successful business model. • The Operations area provides efficient service with manageable tools. • Fintegra offers higher payouts than the industry average --- and NO hidden fees! Means more in your pocket! • Also, there is no waiting in a phone queue if you need assistance: Every call is answered by a person, and immediately directed to the appropriate department. There are no phone trees to navigate at Fintegra – friendly, helpful people are always just a phone call away!
Fintegra is a TRUE STRATEGIC PARTNER for Securities-Licensed Producers looking to grow their B/D business!
• Account viewing and trading access for clients PAGE 10
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JUST the FACTS | 2ND QUARTER 2012
5/21/2012 1:02:18 PM
CLEAR choice!
NEW Way of Doing Business” Fintegra’s Registered Investment Adviser (RIA) platform offers the versatility and support you need to grow your IAR fee-based business. In addition to being a FINRA broker-dealer, Fintegra is also a Registered Investment Adviser (RIA) with the Securities Exchange Commission (SEC).
FINTEGRA IS THE CLEAR CHOICE!
Fintegra offers numerous advisory products and services:
They are clearly the full-service broker/dealer and RIA of choice for:
• WRAP programs • Third-party money managers • Morningstar • FTJ Fundchoice • Envestnet • Curian • And more! • Fee for financial planning services • Consulting services • Performance reporting • Flexible fee structure • Competitive retention FAME = Fintegra Asset Management Expert Fintegra’s FAME platform offers many options for portfolio management, including programs managed by the IAR or third parties.
• Unbiased, independent environment • No hidden fees or product sales agenda • Value-added services • Responsive, experienced staff • Flexibility and dedication to finding solutions Fintegra has the experience and tools you are searching for to succeed in today’s competitive investment industry.
Great Plains can help you benefit from our strategic alliance with Fintegra and avoid commission haircuts! Call your GPALM Marketing Specialist at: 800.710.1115
Assets can be held on one of two platforms: • Pershing • Charles Schwab & Co. Inc. Fintegra is a TRUE STRATEGIC PARTNER for Securities-Licensed Producers looking to grow their IAR business! JUST the FACTS | 2ND QUARTER 2012
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Securities are offered through Fintegra, LLC, an independent registered broker/dealer, Member FINRA/SIPC, and SEC Registered Investment Adviser, OSJ phone 763.585.0503. Fintegra is not affiliated with any financial institution. Account Executives are registered representatives and possibly Investment Advisor Representatives of Fintegra. Investment and Insurance Products: ● Are NOT FDIC Insured ● Are NOT Deposits ● Are NOT Insured By Any Government Agency ● Are NOT Guaranteed By Any Financial Institution ● May Lose Value
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5/21/2012 1:02:25 PM
WHAT’S HOT AT GPALM? WORRIED ABOUT RECENT INDUSTRY NEWS REGARDING MAJOR CARRIERS? The insurance trade press continues to report changes and shakeups at several annuity carriers. We have also seen rate and commission reductions generating producer concerns about the current annuity marketplace. Here at Great Plains , we are experiencing tremendous interest and sales activity regarding new annuity products and enhanced benefits that have been introduced so far this year. Given the state of current CD rates, clients are looking for safemoney solutions with guarantees. You have a great opportunity to provide annuity products to meet these needs, and our total sales of fixed annuities year-to-date—specifically SPIAs, MYGAs, and traditional fixed products reflects strong consumer interest. We are also experiencing strong growth in fixed indexed annuity sales with clients near or just beginning retirement that are concerned about preserving principal and creating a lifetime retirement income stream. Our proprietary IncomePLUS presentation is helping producers educate clients on their ability to provide income solutions with flexibility and guaranteed solutions to meet their needs. Because Great Plains is 100% independent, and the depth of our available carrier and product choices , we can help you quickly find outstanding solutions to present your annuity prospects. Just call us at 800-710-1115 and visit with a Great Plains Annuity Specialist to discuss your next case. PAGE 12
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INFORMATION AND EDUCATION SWAYS INCOME ANNUITY BUYERS... AnnuityNews.com recently reported on a study conducted for the Society of Actuaries regarding income annuities. It was reported that when advisors told pre-retirees about income annuities, approximately 30 percent expressed interest in purchasing one. More than 1,000 adults participated in the survey (half pre-retirees /half retirees) that found sharing information and guidance about annuitization and income annuities correlated with increased annuity purchase intentions. The study indicated pre-retirees’ intentions to purchase an income annuity was more strongly affected after receiving information about life expectancy, typical retirement age and life income annuities.
JUST the FACTS | 2ND QUARTER 2012
5/21/2012 1:03:03 PM
GREAT PLAINS WELCOMES NEW ASSOCIATES... Great Plains continues to grow to better serve our producers. Our increased sales year-to-date are the direct result higher sales volume from existing producers working with Great Plains, and an influx of new relationships this year. GPALM is excited to announce these most recent additions to our team...
LEAD GENERATION TOOLS... Great Plains offers several tools to help you generate new leads including our Financial Help Centers and Rural Agent Marketing Programs, in addition to our in-house advertising department.
HELP CLIENTS CREATE THEIR RETIREMENT PAYCHECK USING INCOMEPLUS... Great Plains can help you present income planning solutions to prospects seeking guaranteed lifetime income benefits. We do all the homework—call us today at 800-710-1115 and we’ll quickly help you find the best products to maximize retirement income!
Carlos Rojas Senior Annuity Specialist carlos@gpam.net Carlos Rojas joins Great Plains with over twelve years experience in all aspects of fixed and fixed indexed annuities. Having worked with many high caliber producers from coast-to-coast and in nearly every state, he is ready to assist producers with exceptional sales support and case development. Carlos has also mentored and developed many new-to-the-industry producers, taking them to multi-million sales. Jeff Bregovy Life Specialist jeff@gpam.biz Originally from Chicago, IL, Jeff Bregovy brings over 21 years of insurance experience to Great Plains that began when he joined a major insurance carrier in Chicago, IL. Jeff then started a long stint in life brokerage as a Senior Case Manager until he moved to the Kansas City, where he worked as an office manager for a life insurance sales agency, and also held the position of Senior Life Brokerage Manager for a local life brokerage agency. Jeff has recognized expertise in case design/life marketing, impaired risk placement and case management. Jeff’s experience can support your sales efforts to find the right product solution, individual case development to guiding your business through underwriting and policy issue to get you paid. Gina Skiles Reception Due to our continued growth, Great Plains is pleased to welcome Gina Skiles to our reception desk. Gina brings a wealth of customer service and administrative skills and experience to GPALM. Gina will be directing your phone calls to the appropriate GPALM associate. Please join us in welcoming Carlos, Jeff and Gina!
JUST the FACTS | 2ND QUARTER 2012
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PAGE 13
5/21/2012 1:03:14 PM
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Are your Retirement Savings SAFE? Join us for this informative seminar, followed by a
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This event will be hosted by FName LName. M. LName is a local financial advisor who has been helping seniors invest wisely for the past 00 years.
Topics to be discussed include: • • • • •
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Seating is limited, so please call now to reserve your seats.
Your spouse or a guest is welcome to join you. First time attendees only. There is absolutely no cost or obligation to you. Your disclosure copy here. More disclosure copy here. Your disclosure copy here. More disclosure copy here. More disclosure copy here. More disclosure copy here.
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Due to the popularity of this program, seatin g is limited. Reservations are requir ed.
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TARGET PRODUCTION: $3,000,000 to $5,000,000 These numbers are very attainable, but the agent must understand that consistency and persistence will make it happen. Just recently, I had a conversation with an agent in Pennsylvania. After a discussion about seminars I asked how many he was planning on producing this year. He said “one”. That’s not a good answer. More discussion, then he said he would consider one per quarter. How will he learn to present seminars if he does them so infrequently? An agent’s presentation will continue to improve through repetition. The faster the repetition, the faster the improvement. Of course, there needs to be some critical examination of each presentation to discover what needs improvement. How will you find a new prospect? How are your current methods working for you? Have you hit a wall? Have you fallen into a trap of earning less than six figures in the insurance industry? You probably feel that way because you don’t have anyone to see. The old prospect cards are becoming yellow with age and dog-eared. Friends and family are avoiding your incessant harping on the need for what you sell.
Creating a $5,000,000 annual annuity production practice is quite easy to accomplish with seminars. In January 2002, I traveled to California from Florida to observe an agent presenting seminars. He had great crowds and made appointments with many of the attendees. I was so impressed that I came back to Jacksonville and scheduled several seminars. I wasn’t concerned with the cost because I felt certain with enough appointment the cost would be overwhelmed by commissions. I was prepared to put $30,000 into seminars and lose every penny to find out if seminars could work for me. Over a seven-year span those seminars (over 850) brought in over $12,000.000 of commissions. I was presenting a large number of seminars, in fact far more than most people would present. By the way, I never spent the $30,000.
My recommendation for agents who wish to build their practice by the use of seminars is to begin by scheduling two mailings per month. The cost of these two mailings with food should be less than $7,000. That is covered by only $108,000 of annuity production- a mere pittance. The $5,000,000 target for production can be accomplished with only $228,000 of production per mailing with two presentations per mailing. In the past ten years I have sold less than five policies to people I know before the first appointment. My social skills are laughable and meeting new people is akin to storming the beaches of Normandy on D-Day, as I don’t meet people unless I have an agenda, then I can be very friendly because I see a beneficial outcome. Being a reclusive person doesn’t exactly help in the insurance business. Seminars eliminate this problem, I can mail to a large number of people who pre-qualify themselves. Since 99% of the recipients don’t respond, I have saved myself a lot of trouble. I am able to present my case to about 50 people at a time. That’s a tremendous time saver. I see the people who want to see me. That’s an additional time saver. My demographic mailing qualifies the group as to their ability to do business. The attendees go into my database for an automatic follow up system. This way I can put up to 100 prospects per month into that database. In five years I have over 5,000 names in my automated follow up system. I would much rather spend my money than spend time. It’s much more efficient and speeds up my practice. So, if you want to rapidly build your practice to $5,000,000 of annuity premium per year. Let’s get going with seminars.
Kim Magdalein Kim Magdalein has presented to over 1,000 audiences in the last 10 years resulting in over $150,000,000 of annuity production averaging $150,000 per presentation. His marketing company Seminars For Less has produced thousands of seminars for other producers nationwide producing over $2.5 Billion in annuity premium. Kim has written a monthly article for Life Insurance Selling magazine for 2 years.
JUST the FACTS | 2ND QUARTER 2012
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IncomePLUS Suite Why sell projected returns when you can present guarantees?
There are many tools that are developed to help you, the producer, with your sales process. These include annuity flip charts, historical software, and laddering presentations, each designed to educate your client and help them make an “informed” purchasing decision.. Unfortunately, many of these tools are designed and pre-packaged according to what someone else predetermined your client needs to do with their hard earned money. They often look great and show projections based on past performance or hypothetical returns that are no more based on reality than latest installment of your favorite reality TV show is. Some even give you the software, based upon production requirements, and turn you loose to create your own presentations. While they may help you to create a sale, they could inadvertently help you create problems with your client years down the road. One of the biggest problems with these types of presentations is the “projected” rate of return. I recently was forwarded a presentation from another group that “maximized” the benefit of the income rider by utilizing the free withdrawals prior to triggering the income rider. This is a unique approach to defer income as long as possible to obtain the greatest PAGE 16
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possible income using a single product. The example showed a 60 year old client with $100,000 and purchasing an income rider from Carrier A. The client wanted to start income at age 67, which would generate a guaranteed $8,547/year of income. This example showed how using this proprietary software and the free withdrawals in the product, they were able to increase the income by 7% to over $9,186/year of income. While this sounds fantastic and definitely worth researching, you have to remember that none of this is guaranteed. This is based on a projected growth in the annuity, and how the free withdrawals will affect the rollup rate on the income rider. When I plugged the same client into our Income Rider Comparison worksheet, part of the IncomePLUS Suite of tools here at GPAM, I found we could guarantee the same client $9,884/year of income without making the situation for the client more complicated. This represents an additional 7.6% higher income than their proprietary software can generate, and a 15.6% greater income for your client than the income rider they were suggesting. Which would you rather show your client, projected income or guaranteed income? (Continued on page 18) JUST the FACTS | 2ND QUARTER 2012
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Don’t be an annuity “product peddler”! Introducing a concept that helps you become the trusted advisor…
If you are interested in showing clients and prospects how YOU can help them create reliable retirement income, preserve their assets and leave a legacy, call your GPALM Annuity Advisor today. Our contracted producers now have access to a presentation system that helps clients diversify their retirement savings, offers flexibility for changing economic conditions, and gives them strategies to meet their dreams, desires and goals!
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 2ND QUARTER 2012
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IncomePLUS Suite
(Continued from page 16)
The role of the Annuity Specialists here at Great Plains is to help you provide the greatest amount of income for your client using the least amount of premium. This is the mindset behind the IncomePLUS suite of tools available to you as a Great Plains producer. The Income Rider Comparison worksheet compares 17 of the top income riders from 14 different carriers to show your client which income rider provides the greatest income based on their age, amount of premium and number of years deferred from 0 out to 20. This is discussed more in an article by Scott Andrew on page 8 of this issue. IncomePLUS is our Preferred Laddering Utilization Strategy. This client presentation has been developed over the last several years with feedback from producers like you and their clients. The result is a full color presentation that is customized to your client’s specific needs and goals, and clearly outlines the plan for you and your client to go over. There are many options that are available to create this plan for your client. To name a few: • Start income at a later date • Use several different carriers/products in conjunction with one another to create a seamless income stream for your client • Minimize the cost of the income rider that was chosen using the Income Rider Comparison worksheet • Create an inflationary adjusted income so your client’s purchasing power never decreases • Client wants a higher income initially so they can travel while they are young enough to enjoy it? IncomePLUS can accomplish this as well.
of this issue, where your client is protected in case they find themselves with a need to pay for a Chronic Care situation. By taking a portion of the income stream, they can protect the original principal amount with either life insurance or Guaranteed Death Benefit Rider. If they need additional income, they can trigger a later leg earlier to get the additional income they need. With all of these features, it is no wonder there is a lot of excitement regarding IncomePLUS and the suite of tools that accompany it. Call your Annuity Specialist today to find out how IncomePLUS can supercharge your annuity sales today!
• And any other options that you and your client want* (*IncomePLUS may appear to be miraculous, but as of yet, it cannot actually perform miracles. Client expectations still need to be set on realistic income generation). IncomePLUS also provides your client with complete control over their future. They have flexibility to “trigger” different incomes when they need it the most. A possible example of this flexibility would be to include a portion or “leg” of an income plan incorporating the new Protected Solutions annuity announced on page 6 PAGE 18
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Brad Allen Annuity Marketing Consultant
brad@gpam.biz
JUST the FACTS | 2ND QUARTER 2012
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Income For Life • Available with any newly issued EquiTrust Index Annuity1 • Lifetime income based on 7% Benefit Base* accumulation for up to 20 years • A guaranteed income stream for life – without annuitizing • Flexibility and control to start and stop income payments as needed • All of this, while maintaining other annuity benefits *Benefit Base is used only to calculate the Income Withdrawal amount. It is not available upon surrender, death or annuitization.
Plus • Rider income continues after the annuity accumulation value is depleted • Index-linked returns may produce HIGHER income later • Income may continue after the death of a spouse • Increasing accumulation value may provide for heirs upon death
Help clients looking for a guaranteed lifetime income stream take advantage of EquiTrust’s Improved Income For Life Rider Today!
800.710.1115
www.greatplainsannuity.com 1For Washington residents, the rider is available only with Builder Bonus Index; the rider is not avail-able with MarketValue Index. Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company. Contracts and riders may vary by state. Products and riders not available in all states. Rider issued on Form Series ICC11-ET-IBR-B(11-11) or ET-IBR(06-08). EquiTrust Life Insurance Company, West Des Moines, IA. For Producer Use Only. AC12-ET-ECN-1061
JUST the FACTS | 2ND QUARTER 2012
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Some thoughts on the Life Insurance Industry... Carriers continue to struggle with No-lapse UL products—Death benefits are guaranteed for a long period of time so there is added stress on policy reserves. Policy Reserves are assets that companies are required to set aside to pay future benefits. It translates into a higher cost of capital. A new regulation adopted by the NAIC then followed by the states mandating higher reserves could see premiums for these products skyrocket. It’s a topic being reviewed. In the last couple of years companies re-priced their no-lapse, no longer offer no-lapse or developed a current assumption UL and built-in death benefit guarantees out to mortality. Premiums can be less than a no-lapse with the ability to accumulate some cash values. They’re worth looking at with better options. Buy Term & Invest the Difference—I’m only making an educated guess here but we quote so many cases every week on people in their 50’s, 60’s and even early 70’s who only bought a term policy years ago, which is about to expire, who may have bought into this craze which started back in the early 1980’s. Yes, I am calling it a craze and I’m being kind. Notwithstanding the fact that some can only afford term the fact of the matter is people are outliving the only life insurance they own. Now at an advanced age what can many afford? More term insurance, assuming they are insurable. I’d recommend educating these new clients who are still in their 20’s, 30’s, 40’s and even 50’s, who ask for term, what will likely occur if they get to the end of the term
period. Most will still have a beneficiary(s) they want to leave something to beyond the end of the term period. Quote some permanent plan and fill in the rest with term insurance. You may be surprised how many will buy some of each. 1035 Exchanges with Existing Loans—Some of these existing policies are a disaster waiting to happen if the policy lapses and there is a taxable gain to the policy owner when borrowed premiums, borrowed loan interest and borrowed cash exceed the basis in the policy. Many companies will take some percentage of existing loans via a 1035 Exchange which may get these policy owners out of this predicament. Contact us if you have one of these cases. Use of IRS Form 4506-T—While the form will be used for primarily large face amounts, it’s now a requirement along with the application with two carriers as of April 15th. It allows the carrier to receive tax filings directly from the IRS. At the very least you may be questioned about it by the proposed insured. Other carriers could follow. Senior Market Life Sales—The word that comes to mind is WOW. Why? Huge market and as a group they have millions in assets. All types of life sales are being made within this segment of the population. We’ll will be happy to fill you in.
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
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OUR LIFE DEPARTMENT EXPERIENCED. INNOVATIVE. FULL SCALE. INTERESTING LIFE PRODUCTS • No Lapse Universal Life with “Guaranteed Cash Value” • No Lapse Universal Life with NO-COST ROP • No-Med term with separate Critical Illness Rider • Survivorship Term • Turn IRA funds into Tax-free benefits to heirs • Church Legacy-Simplified issue life for Congregation
SENIOR MARKET-CLIENTS AGES 60+ • Estate planning • Creating a larger legacy with single premium life • LTC life Plans or LTC Riders • 1035 Exchanges • Pension Maximization • Final Expense Plans • Maximize IRA funds with life insurance • Simplified and Guaranteed issue plans • Turn IRA funds into Tax-free benefits to heirs
UNDERWRITING • Preliminary screening impaired risk casestypically 48 hour turnaround time • Informal Shopping of Case • Managing Jumbo cases and avoiding total line issues with facultative reinsurance requirements • Direct access to underwriters • Associate in-house underwriter • Pushing for better offers from carriers
INDIVIDUAL & FAMILY SOLUTIONS • Term Insurance • Whole Life Insurance • No Lapse Universal Life • Current Assumption Universal Life • Index Universal Life • Survivorship Life • Critical Illness product
ADVANCED PLANNING • Estate Planning • 162 Bonus • Buy Sell Agreements • Key Person • 412(e)3 Plans • Charitable Remainder trust • Deferred Compensation • Family Limited Partnerships • Access to Attorneys
SALES SUPPORT • Quick Response on Illustration requests • We will suggest possible solutions • Best product for the client • Client Brochures • Product Guides • Applications • We’re happy to order exams
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 2ND QUARTER 2012
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YET ANOTHER NICE CASE BY ASKING…
ONE FINAL QUESTION! We want to share another case with you that greatly benefited the client and her beneficiaries. The case also resulted in a nice commission for the broker when he asked “just one more question” at the close of his appointment. The Prospect—The agent scheduled an appointment with the client to deliver a Med Sup policy his client purchased: Female, Widow, Age 72, who derived her retirement income from social security, a pension and some investment income from assets she and her husband had accumulated. She has two grown children and five grandchildren.
The Second Sale: • Single Premium Whole Life with $175,000 premium
The Appointment—Agent went over the particulars of the Med Sup.
• In one week she increased her legacy for her heirs by more than $77,000!
One Final Question:
• The entire $252,852 death benefit passes to heirs Income Tax Free
Once the agent completed this discussion, he asked this simple question: Do you have any monies, perhaps in a CD or elsewhere, that you will not need for retirement which you intend to pass along to your heirs? She indicated that she had 2 annuities worth $120,000 plus $175,000 in CDs. These CDs she had earmarked for her children and grandchildren. Not wanting to risk the principal, she intended to leave them in the CDs. What the Agent said Next—“If that’s the case, let me show you another place for the CD monies to leave even more to your children and grandchildren?
Jeff Bregovy Life Specialist Jeff@gpam.biz
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• If her financial picture worsened, she had full access to her original premium • Underwriting consisted of a simple application and phone interview • Agent earned $25,285 by merely asking one simple question If you don’t ask you will never know. There is no better product to pass assets generationally! Please contact Dick Reynolds, CLU or Jeff Bregovy in the Great Plains Life Department!
800-710-1115
Dick Reynolds Life Specialist Dick@gpam.biz
5/21/2012 1:13:16 PM
JUST the FACTS | 2ND QUARTER 2012
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10901 W 84th Terrace., Ste. 125 Lenexa, KS 66214
800.710.1115
www.greatplainsannuity.com 100% Independently Owned! GPALM PRODUCERS ACCESS ANNUITY & LIFE RATES 24 HOURS A DAY!
5-YEAR WALK-AWAY ANNUITY
• NO MVA • No Surrender Charge on Death • NO Commission Chargeback at Death
2.70% YEAR 1
2.00%
YEARS 2-5
• RMD Friendly • Issue ages 18-75 • A.M. Best Rated A-
4.00%
COMMISSION
FOR AGENT USE ONLY-NOT FOR USE IN SOLICITATION OR ADVERTISING TO THE PUBLIC
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