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JUST the FACTS | 1ST QUARTER 2012
INSIDE 6
INCOME PLANNING: Building Retirement “Blueprints”
You can help your clients build their financial “dream home” for retirement by serving as their General Contractor. Learn how our IncomePLUS program can help your clients design the best guaranteed strategy to accomplish their dreams, desires and goals, create dependable lifetime income and position you as the trusted advisor!
10
Mass Marketing: What’s in your 2012 Marketing Plan?
12
What’s Hot at GPALM?
Have you developed a marketing strategy to generate new clients and sales for 2012? Kim Magdalein of Present Your Practice gives some fundamental advice in creating and executing your 2012 marketing plan for success in lead generation, increased appointments and more sales revenue.
A quick summary of news, information and ideas to help you write more business...
16
1ST QUARTER 2012
PRINCIPALS • Rich Hellerich • Robb Edwards
Annuity Marketing • Andy Amborn • Brad Allen • Brian Dixon • Carlos Rojas • Cindy Nelson • Jane Plumberg • Kara Jones • Scott Andrew
Life Marketing • Dick Reynolds • Jeff Bregovy
Administration Happy with your current BD?
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!
18
Understanding is better than Overcoming
18
Why more Agents are doing Life with GPALM
• Cris Larson • Kathy Putnam • Mackenzie Oakley • Naomi Mayekawa
Learn how to address the “FDIC” objection and the benefit of understanding what the client is really concerned about, rather than overcoming a perceived objection.
More and more producers are taking advantage of the wealth of life insurance expertise available at Great Plains to better serve their clients’ family protection and wealth transfer needs – are you?
JUST the FACTS | 1ST QUARTER 2012
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.
PAGE 3
JUST the FACTS
Fins and Feathers Many of you know my passion for fishing. Until Bass Pro Shop recently opened a store in the Kansas City area, I enjoyed periodic trips to Springfield, Missouri to check out their latest and greatest in fishing gear. Bass Pro Shop has become a huge national footprint in the sport fishing and hunting market, and is well known throughout the country. During one of my trips to Springfield I discovered another fishing gear establishment called Fins & Feathers. Located near my primary objective, Bass Pro Shop, was this small store filled with the best-of-the-best in terms of tackle, rods and reels, etc. Staffed by knowledgeable, avid sportsmen who loved assisting other fishermen and hunters, I was impressed by this little company existing in the shadow of a giant competitor, and apparently quite successfully! With our recent move to new office space, I’ve been reflecting on the past ten years that Great Plains has existed, and the many parallels of our little marketing company to that small tackle shop. In today’s annuity and life environment, filled with mega-marketing organizations and company-owned marketing firms, why do our producers place their business with us? I believe the difference comes down to our business model built around the producer and their needs. We believe our desire to do things that benefit the independent producer will ensure we reach our goals that established here n our office with the team that directly serves you, not owners in an ivory tower hundreds of miles away, that don’t appreciate anything more that a spreadsheet and the bottom line sales and revenue demands.
PAGE 4
Just as your business comes down to your ability to assist and provide your clients with the best retirement and wealth transfer solutions, our business comes down to our ability to serve you, the writing agent. I’m independent, this firm is independent, and our team knows we don’t operate in steering your business towards anything less than our best efforts to help you serve your client. I want to take this opportunity to thank the producers that trust us with their business. Because of you, and your help in finding other like-minded producers, we have been able to expand and grow. We welcome two new GPALM annuity team members, Carlos Rojas and Scott Andrew. I know you will find their industry experience helpful in assisting your clients. More importantly, and just like the staff at the small tackle shop in the shadow of the industry giant, you’ll find their passion for what we help you do and our industry invaluable. Be sure to peruse this month’s magazine for our “special tackle”: We have a new strategic alliance with a Broker/Dealer that can provide a real solution for registered representatives that may be frustrated by their current affiliation. Our After Market Assignments, Market-linked CDs, and IncomePLUS programs offer you an opportunity to set yourself apart from your competition. Call your GPALM Marketing Specialist now for details, and how you can improve your lead generation efforts.
800.710.1115
www.greatplainsannuity.com
JUST the FACTS | 1ST QUARTER 2012
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PAGE 5
Build Retirement blueprints
Become the General Contractor of Your Client’s Financial Dream Home A few years ago, a good friend of mine decided he and his wife were going to build their dream home. After doing some research and meeting with several builders, they decided to hire a general contractor to coordinate the building project. This allowed them to put the project in the hands of someone they felt they could trust, and brought the necessary experience to ensure their house would be built on time and as close to budget as possible. Having never built a house before, the general contractor became the trusted advisor, and gave them peace of mind knowing they were in good hands. Most people know the basics of building a house. You need a solid foundation, some walls, windows and a roof. You also need to wire the house for electricity and put the pipes in for plumbing, and all of this has to be done to the specific building codes where you live. But if you gave most people a hammer and some nails and told them to build a house, they wouldn’t know where to begin. Even with all of the right tools, the lack of expertise in building a house would be like trying to push a car with a rope. Knowing what a circular saw is and how it works is a long way from being able to competently use it to build a PAGE 6
house. People tend to know their limitations and hire professionals who use these tools everyday to build their dream home for them. Why is it that clients tend to think that they can design and build their own Financial Dream Home? Most clients know the basics of the financial industry. They know that a gain is always better than a loss, and the higher the growth, the better it is for their future. They also have a general knowledge about the “tools” of the industry: stocks, bonds, mutual funds, CDs, savings and checking accounts, etc. But these tools should be left in the hands of a professional that uses them every day to build a solid plan. A financial professional is very similar to a general contractor. They meet with their clients and determine what their goals and dreams are. Then they go find the carriers (subcontractors) and products (tools) necessary to build their client’s dream home. However, in the vast ocean of products and carriers, it can be a daunting task to find the right tools that fit together perfectly to build a solid foundation, let alone a full retirement plan. That is where your specialist at Great Plains comes into the picture. JUST the FACTS | 1ST QUARTER 2012
HELP YOUR CLIENTS CREATE THEIR OWN
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Help your clients sleep better at night knowing their retirement income needs are on a firm foundation of guarantees! Call today for details on the Income Planning Presentation that will make you their trusted advisor— IncomePLUS!
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www.greatplainsannuity.com JUST the FACTS | 1ST QUARTER 2012
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PAGE 7
Build Retirement blueprints Every great general contractor has a team of professionals at their disposal, and they keep up with the performance and reliability of these subcontractors. From changes in personnel to customer complaints, to how their handiwork holds up over time, it is important to research the different options available to ensure the best construction for the clients. At Great Plains, we do all of this for you. We represent over 65 different carriers to make sure that every product we recommend is strong enough to help your clients build their perfect financial dream home and then take it one step further to helping you build that dream home. We have developed IncomePLUS with you and your clients in mind. Consider the IncomePLUS presentation your client’s blueprint of their financial dream home and your Great Plains specialist your architect. It is an easy to understand overview of the construction of your client’s retirement plan and is customizable to their specific needs and wants. There are many pieces of software out in the market place that purport to do the same things as IncomePLUS. You can either go and purchase so you can design the plan for your client in your office, or you can receive it from your marketing organization in return for production. The problem with these types of software is that they require you to be the expert on all of the products. A general contractor will always hire an architect to design the home and draw up the blueprints, so why should you be any different? Your Great Plains Annuity Specialist acts as your free architect, helping you design these income planning blueprints as a part of our service to you, our valued producers.
How to get access: Once you are contracted through Great Plains you have access to IncomePLUS. After you have met with your client to go over their dreams and goals, call your specialist at Great Plains to go over how to get a blueprint for your client. Provide the details of the meeting with your client and we will provide you with a full color blueprint that outlines the plan for you to go over with your clients. IncomePLUS is a comprehensive breakdown of the assets your client has set aside for their secure retirement. It shows how several different annuities can be structured to provide a lifetime of income
PAGE 8
(Continued from page 6) for them, based on the performance of the different products. Unlike other programs out there, this leaves the ultimate control in your hands, the trusted general contractor. Here are some examples of how you can customize your client’s financial dream home: 1. Your client wants to maximize their lifetime income to be level for all years so they know exactly what they are going to get each year. 2. Your client wants to protect their income against the rising cost of inflation. This can be done by building in inflationary adjustments to their plan. 3. Your client wants to spend the early years of their retirement to travel and enjoy their new found freedom from the 9-5. This can be done by increasing the income in the early years of the plan and dropping the income to a lower level once they plan on settling down. 4. Your client wants to make sure that their principal is protected to leave to their beneficiaries at their death. This can be done by adding life insurance to the plan or by taking advantage of some features on the annuities. 5. Your client wants flexibility in case of changes that might occur later on in life. For example, they receive an inheritance and don’t need to trigger one of the legs of income, or something has arisen that requires additional income for a short period of time. This flexibility is built into the IncomePLUS plan to allow for these unforeseen changes to your client’s circumstances. There are infinite possibilities and each one as unique as your client is. You shouldn’t have to submit to them a cookie-cutter approach to the most important decision of their lives. Provide them with the power to embrace their dreams, the power of IncomePLUS. Call Great Plains today to learn more about how IncomePLUS can improve your sales.
Brad Allen Annuity Marketing Consultant
brad@gpam.biz
JUST the FACTS | 1ST QUARTER 2012
800.710.1115
www.greatplainsannuity.com
JUST the FACTS | 1ST QUARTER 2012
PAGE 9
“Where do you want to go?” asked the travel agent. Who would call a travel agent and say, “I don’t know where I want to go, but I want to go somewhere, anywhere but here.” Have you really taken a serious look at where you want to go in 2012? Let’s say you want to go from $1 million of annuity production to $3 million, with average commissions of 6.5% that would increase commissions from $65,000 to $195,000. Interesting, it takes the same skill sets to produce $3,000,000 as it does to produce $1,000,000. The difference is in how many prospects you are contacting who are emotionally and financially equipped to buy. With normal prospecting methods (referrals) it is almost impossible to increase business without a significant number of clients who are willing to refer. Only about 5% of your clients will consistently refer prospects, so if you have 100 clients, that’s only 5 who refer consistently. Mass marketing takes the agent to another level. By prospecting to thousands at a time, the small percentage of responses will adequately increase prospects and correspondingly increase sales. Producers who use my firm, PresentYourPractice.com consistently produce $3,000,000 to $10,000,000 of business per year. The amount of sales is directly related to the amount, persistence and consistence of marketing. Agents who engage PresentYourPractice. com, use either seminars or direct response to engage prospects in the masses. In order for you to expand your business, you must expand your world. Don’t be fooled by all of the “latest and greatest” marketing techniques. The only tried, proven and consistently successful techniques are referrals, seminars and direct mail.
and cost efficient. Too many agents have overspent on seminars, wasting thousands of dollars unnecessarily. This is followed by frustration, discouragement and leads to failure. Any lead producing system must be analyzed for its ability to adequately produce prospects at a reasonable rate. There’s a right way and a wrong way to produce seminars. There are dozens of printing companies advertising that they produce seminars. Not a single one has ever sold an annuity. THEY CAN’T HELP YOU!!! That’s like a baseball fan who never played or coached the game telling you how to get a hit. It’s all theory. He can’t show you how to swing the bat… how to make contact… how to read a pitcher or how to avoid getting killed by an errant 95 MPH fastball. At PresentYourPractice.com, we create PowerPoint presentations that fit your concepts and products. We also know how to market to the masses with invitations that work and are economically priced. We are pleased to be the marketing company of choice for Great Plains. I will consult with you to determine whether seminars are for you. I will be honest in my advice and will try earnestly to help you go from $1,000.000 to $3,000,000 or 3,000,000 to $10,000,000.
Let’s examine the facts. With proper direction and advice, mass marketing by seminars can be effective 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 presentyourpractice.com 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. PAGE 10
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What’s HOT at GPALM? Meet our new teammates: Scott Andrew Annuity Specialist Scott@gpam.biz Scott Andrew brings in-depth fixed and fixed index annuity product knowledge to Great Plains following his time spent at a large annuity carrier. With over 7 years of sales experience working with annuity producers, Scott understands what the agent needs to complete the sale. He is especially keen on positioning products based on the clients’ desires, sometimes in ways agents may have overlooked. His understanding of how fast the fixed annuity business can change means he is always available, 7 days a week. “I’m here to serve you, the writing agent, so we can work together to get your business done.”
Jane Plumberg Annuity Specialist Jane@gpam.biz Jane Plumberg recently joined GPALM with more than 12 years experience in insurance and group employee benefits including fixed and index annuities, life, health, disability and dental. She is a licensed agent in both Kansas and Missouri. Jane’s career includes serving as a research analyst at Assurant Employee Benefits product marketing team, and later as the head of the market research department. Prior to her Assurant experience, Jane was responsible for credit affinity marketing programs at American Retail Credit Services in Fort Lauderdale, Florida. Jane’s marketing research background and annuity sales helps producers expand their client database and create reliable and guaranteed retirement solutions.
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2012 Tax Reference Guide available… Call us today for your copy of the new 2012 Tax Reference Guide. Information includes Income Tax Rates for 2011 and 2012, Historical Inflation Rates, Life Expectancy Table and more.
Call your Annuity Marketing Specialist at 800-710-1115 now.
Which Income Rider is Best for my Clients? Are you spending hours of valuable time researching the various Income Rider solutions available in today’s marketplace? Did you know the best income rider solutions can vary widely based on your client’s age, marital status and when they want to start income? Call Great Plains today and learn how we can provide you with the best solutions to consider in just minutes. Your GPALM Annuity Specialist can also show you IncomePLUS, our proprietary income planning tool that helps you become the trusted advisor, and allows your clients to sleep better at night! JUST the FACTS | 4TH QUARTER 2011
Fed to keep rates low until 2014 Previously, the Federal Reserve stated its intent to keep interest rates at current levels through mid 2013. Following their last meeting in late January, they announced an extension of their low rate policy through 2014 due to continuing economic weakness. This announcement was good news for borrowers, but retirees and pre-retirees who put their money to work using CDs or Money Market funds will continue to anticipate meager returns. With a current average return of 0.67% for one year CDs, the opportunity cost of waiting for interest rates to rise has increased dramatically. Despite the historically low rates on fixed annuities, they still represent a viable higher return alternative to the current CD marketplace. Call your GPALM Annuity Specialists to review our current 5-Year product options compared to current CDs, and the cost of waiting. For example: Year 1 2 3 4 5
Annuity Rate 3.25% 3.00% 3.00% 3.00% 3.00%
CD Rate 0.67% 0.67% 4..66% 4..66% 4..66%
Over a five year horizon the chart above shows that, should rates remain the same for the next two years, a CD buyer would have to earn 4.66% during years 3-5 to match the total return of the annuity shown over the next 5 years (assuming base rate renewals.) Furthermore, the likelihood of one year CD rates trending from under 1% to in excess of 4% in the third year, while possible, may not be a realistic assumption. The longer the Fed continues their policy of low rates to stimulate economic activity, the higher the opportunity cost of CDs.
What’s Holding Up Your Commissions? Here are the 6 biggest problems slowing down policy issue on applications received at our office, and how you can avoid them: 1. Make sure every line, box and blank is filled in that pertains to the type of annuity your client is purchasing. 2. Make sure client has signed and printed their name everywhere required. 3. Transfer forms need transferring company overnight address – UPS or FedEx will not deliver to a PO BOX. Also include the transferring company’s phone number. 4. Suitability form or Financial Inventory form please double check your math. 5. Athene (formerly Liberty Life) requires current statements of value on almost every piece of business. If you have cash with application Athene would like verification if the funds are a rollover. 6. Another problem are wrong dates on applications due to agent not taking the training that is required before writing. To avoid delays when it comes to processing your business, it’s important to complete required training. Staying current with your Carrier/Product-Specific Training, CE Credits and Anti-Money Laundering training results in your business and commissions being processed, issued and paid faster! More and more carriers are implementing productspecific training requirements. These requirements need to be satisfied PRIOR to soliciting business. Before you write a piece of business, it is imperative that you verify if training is needed or not. Carriers will reject any business that is received prior to the agent completing training. More states are adopting the NAIC Suitability in Annuity Transactions Model Regulation which requires agents to complete a onetime 4-hour training CE course, in addition to carrier product-specific training. To make life easier, please forward a copy of your 4-hour course certificate to Great Plains. That way, we can keep this on file and submit it to your carriers as needed! Federal law requires agents to complete Anti-Money Laundering training, offered through several different vendors. Your business and commissions can be delayed if a carrier does not show the agent AMLcompliant. Great Plains recommends sending us your most recent AML certificate so we can forward this to the appropriate carriers.
JUST the FACTS | 4TH QUARTER 2011
PAGE 13
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JUST the FACTS | 1ST QUARTER 2012
Just a thought
20 Ways to Generate New sales... When it comes to generating new prospects many producers spend their valuable time and hard-earned marketing dollars seeking the “holy grail”: the silver bullet lead solution that is both cost-effective and yields prospects with check book in hand asking “where do I sign”. If it was that easy, you would find even more competition in your insurance marketplace. So the question is, how do you promote yourself to your community? Here are 20 ways to create a steady flow of prospects and sales opportunities. The costs range from simply recognizing a sales opportunity to explain how you help your clients, to the serious expense of getting your message in front of thousands of prospects. The key to success is implementing those programs you are willing to work and financially support on a consistent basis. You also need to be honest with yourself regarding your ability to engage and execute the chosen method(s). For example, while you may be fantastic at one-on-one presentations, not everyone has the ability to make effective seminar or group presentations.
Review the list below and check the lead methods you currently use. Ask yourself if you are working them consistently, measuring your results and holding yourself accountable for success. Do you see other methods that you could easily incorporate (no/low cost) or you want to consider? Have you funded an advertising/marketing budget for the coming year? What’s your plan? Great Plains offers contracted producers several resources to help your lead generation efforts. Contact your Marketing Specialist to discuss how we can develop a custom plan using the methods that make the most sense for your practice. Also be sure to see Kim Magdalein’s Mass Marketing article on pages 10 and 11. Kim and his team at Present Your Practice are seasoned pros when it comes to helping generate new sales!
How many of these methods do you use? □ Family/Friends □ Elevator Speech (one-on-one) □ On-line Social Network (Facebook/LinkedIn) □ Church/Civic/Affinity Groups □ Client Referrals □ Annual Policy Reviews □ Free Beneficiary Reviews □ Business networking (CPAs/Attys/etc.) □ Niche Marketing (Drs./Bus. Owners/etc.) □ Client Appreciation Events JUST the FACTS | 1ST QUARTER 2012
□ Seminars □ Direct Mail □ Newspaper advertising □ Magazine advertising □ Internet advertising (Google Ads) □ Book Marketing □ Web Site □ E-mail marketing □ Telemarketing □ Radio PAGE 15
Happy with your current Broker Dealer? After a long and intensive search, Great Plains is pleased to announce that we have entered into a strategic alliance with a broker/dealer founded with the same independent spirit and customer service approach to the securities marketplace as Great Plain’s to the fixed annuity and life markets. With many of our securities-licensed producers persistently asking us to provide or recommend alternatives to their insurance product commissions being subject to unnecessary reductions, we can assure you that our recommended B/D will not - when you work through our office and your GPALM Marketing Specialist. Here are 10 reasons to consider affiliating with our new broker-dealer relationship: 10) “BOUTIQUE” APPROACH to supporting customers: As a full-service broker/dealer, their top priorities are integrity, independence, individual attention, responsiveness, flexibility, and creativity. 9) PRIVATE LABELING: encouraged to establish and communicate your unique brand. 8) PARTNERSHIP IS ESSENTIAL: their sole purpose is to assist you in helping clients meet their financial goals with independent thinking and unbiased advice. Our B/D partner will get to know you and your business, and bring you the support you deserve. 7) COMPETITIVE PAYOUT: lower charges, and no hidden fees. What is your NET payout? 6) EXPERIENCED STAFF: Caring, knowledgeable, and innovative experts who embrace teamwork, integrity, and excellence: a skilled, veteran staff in their back office, with tremendous work ethic, business sense, and over 410 years of combined industry experience PAGE 16
5) NO HIDDEN AGENDAS: They do not answer to any parent company to drive specific product sales. They strive to provide the best products and services to fit your client’s individual financial needs. 4) ENJOYMENT of what they do every day, and deep appreciation for the people they work with. 3) TECHNOLOGY: in order to receive current and accurate information, to remain competitive, and to gain efficiencies. They provide industry-leading, user-friendly tools, which will enhance your ability to conduct everyday business. Call for details regarding the advanced elements that comprise their exclusive technology platform. 2) INDEPENDENCE IS KEY: they embrace the cornerstones you should look for in a broker/ dealer- integrity, independence, prompt and friendly service, leading-edge technology, competitive compensation, diverse product mix, objective perspective, and superior back office support. 1) FOUNDATION OF “FINANCIAL INTEGRITY” – DOING WHAT IS RIGHT! THEIR BUSINESS IS YOUR BUSINESS. Call Great Plains at 800-710-1115 to learn more! JUST the FACTS | 1ST QUARTER 2012
Attention Registered Representatives...
Tired of Commission Haircuts from your current Broker Dealer?
STOP
suffering from unnecessary compensation haircuts on your annuity and life insurance sales! Call your Great Plains Marketing Specialist today for details on our exclusive strategic alliance that now allows you to regain control of your insurance practice!
Our Broker/Dealer Partner offers you: • Competitive Payouts – Lower Charges, No Hidden Fees! • Partner Relationship - Meet YOUR goals with caring, knowledgeable and innovative experts! • Latest Technology – State-of-the-Art Platform! • Experienced Staff - Proactive & Personable! • Independent Advice - No hidden agendas!
Work with a firm committed to helping you assist your clients in meeting their financial goals with independent thinking and unbiased advice!
CALL NOW TO SEE IF YOU QUALIFY!
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 1ST QUARTER 2012
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Understanding
is better than overcoming I am talking about handling your client’s objections to your proposal of an annuity for their safe money. For the purpose of this article I want to address the “FDIC” objection. There are several approaches to addressing your client’s concerns or questioning as to whether or not the annuity you are proposing is “FDIC” insured. Those approaches typically include talking about other insurance products for purposes of drawing a comparison to lead to a desired conclusion. For example, “your home is (one of) your biggest investments and it is not insured by the “FDIC”. The logical conclusion is, of course, not all your investments need to have “FDIC” insurance. I have heard many agents use this technique for overcoming the objection, but it doesn’t really address the client’s concern. If you are to understand the concern or question being posed by your client, you will want to ask more questions to uncover the deeper concern. But you also might want to better understand the FDIC. The Federal Deposit Insurance Corporation was founded as part of The Banking Act of 1933 in response to the thousands of failed banks in the 1920’s and early 1930’s. It was, and is, intended to build confidence in our nation’s banking system. Since the beginning of the FDIC on January 1, 1934, no depositor has lost any insured funds as a result of a bank failure. Deposits are backed by the full faith and credit of the United States Government. Banks become members of the FDIC by virtue of paying premiums. [For more information please go to fdic.gov and PAGE 18
click on the “About FDIC” tab.] The reason for needing to insure deposits is because banks use the deposits to make loans and other investments. Deposits are not kept in the vault for the purpose of immediate access or withdrawal, they are put to work. The insurable risk is this - should something happen to the repayment or return on those loans or investments causing the institution to fail, deposit insurance will make client’s deposits whole (up to certain limits). There is no doubt the FDIC plays an important role in how our banking system functions and our clients have placed a great deal of faith in the FDIC, and deservedly so. So what is an insurance agent selling fixed and indexed annuities to do? Let me suggest a different approach understanding your client’s question about the safety of placing their hard earned funds in your proposed insurance product. Your client’s question will typically be, “Is this annuity FDIC insured?” Now that this concern or question has been launched resist the temptation to label it an objection and its twin impulse to become defensive and eradicate the objection. Accept the question or concern for what it is - a question or concern wanting to be understood. First, I recommend stop using the acronym FDIC and call it what it is – deposit insurance. Respond by asking this question, “Why is deposit insurance important to you?” You will discover that their concern is safety and guarantees and not the lack of FDIC, which they equate with safety and guarantee. Tell the client that the reason the fixed annuity you are
proposing does not have deposit insurance because it is not a deposit, so it cannot have deposit insurance. You can then ask them this second question, “Why do deposits need to be insured?” For many clients it will be the first time they have considered this question. If appropriate, provide them the answer that deposits are not at the bank, but put to work... (see above). You have now set the stage to talk about the safety and guarantee of the fixed product you are proposing. You could share with your client the reserve requirements insurance companies maintain to cover their contractual obligations. You might want to present the financial stability and the historical performance of the insurance carrier you are recommending. If your client asks what happens if the insurance company fails you now have the green light to talk about your state’s guaranty association (you cannot use your state’s guaranty association for the purpose of making a sale). Your client will be pleasantly surprised you took their question seriously. They will also be more disposed to accepting your proposal because they understand the safety and guarantees of the fixed product being considered.
JUST the FACTS | 1ST QUARTER 2012
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www.greatplainsannuity.com JUST the FACTS | 1ST QUARTER 2012
PAGE 19
Opportunity is knocking... We know it takes many things to earn an Agent’s life business, but it all starts with an opportunity. Great Plains would like to earn that opportunity. With a simple phone call, agents are quickly discovering the breadth of knowledge we bring to the table to support their life insurance cases. Knowledge, many tell us, they have not been getting elsewhere. Our expertise was not acquired in a few years but rather over 25-plus years of listening to life insurance professionals, clients, and advisors, while taking notes, digging for answers, studying, asking more questions and ultimately working thousands of different life cases through underwriting and issue. In simple terms, when you need help, we consistently operate within these norms: 1. We are interested in speaking to you when you call or getting back to you in a timely fashion 2. We will answer your questions, ask questions, suggest solutions and possibly give you an idea 3. We will respond with what you need on the case quickly which most often is the same day 4. All size cases add up at the end of the year and we’ll be paid only if you are paid In broader terms, here is what you will be able to access: • A firm that is not owned by any insurance company • A broad selection of life products that should accommodate any type of life needs • Advanced Planning Case Development with access to Attorneys if required • Impaired risk cases with typically a 2 day turnaround on what underwriting may look like • Jumbo cases and avoiding total line issues with facultative reinsurance requirements • A thorough effort in overcoming any competition you may have on the case • Ability to discuss a case by phone with you while your client is present • Our ability to discuss cases directly with underwriters • Products for older ages up to age 90 and Single Premium plans to leave a Legacy • Simplified issue products where no exam or labs are required • Sales ideas within markets you are currently working in or have access to • A mindset of pushing for offers that can be placed on difficult cases • Coordinating Pension Maximization or SPIA/Life Combo cases with our Annuity Specialists • Ease of doing business with us no matter what state you live in Give us the opportunity to discuss and quote your next life case. Discover what more and more life professionals are taking advantage of – our experience, case development solutions, marketing assistance, backroom support and navigating the home office maze as outlined above. Call me to discuss the particulars of your life practice and where we can help. Call today for a second opinion on a case you are currently working. All you risk is investing the time to find out if we can improve your life: personally and professionally! Call Dick Reynolds at: 800-710-1115
PAGE 20
JUST the FACTS | 1ST QUARTER 2012
What’s the market for this type of sale? Many of you work in the age 60 plus market where you are meeting with clients for annuities, Medicare supplements or even final expense coverage. The opportunity to sell cases like this or other life insurance products simply lies in your ability to ask some key questions... • Do you have an IRA whose funds you won’t need for retirement income? • Are you currently taking RMD’s from a retirement plan? What do you do with this money? • Do you have any lump sums of money that you have earmarked to pass to your heirs? • Do you have a policy that provides long term care benefits?
Mr. & Mrs. Jones
Ages 70 and 68 with 3 grown children Have a $500,000 IRA - 4% growth rate (Gross) RMDs: does not need the income, therefore reinvesting into a taxable brokerage account. Ultimate distribution to wife then kids.
Instead... Why don’t we create even more for the heirs? Take the Growth ONLY Distribute
$20,000 Gross
PAY TAX
$5,000 IRS
The senior market is not only huge but these people have all the money as well. If you have developed a potential case, give me a call and I can tell you what solutions make the most sense.
$15,000 Net
GIFT TO
Irrevocable Life Insurance Trust owns Guaranteed Survivor Life
$758,000
Lifetime Death Benefit
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 1ST QUARTER 2012
Agent increased legacy by
Assume both Standard U/W Class
$758,000!
IRR on Death -
Income Tax Free to heirs
@ Average Mortality Age 86 Female
11.23%
PAGE 21
When Life Changes‌ There are many reasons why people buy life insurance with the thought of keeping it for a long time: to provide family income, passing a legacy, business insurance and retirement income. However, there are circumstances that can alter their original plans, including: 1. Uncertainty or volatility can make a prospect stay on the sidelines when it comes to financial planning. They take the wait and see approach and as such do not secure their families financial future. 2. A client has bought a policy that has virtually no cash value and sometime later in life cannot afford premiums or no longer needs the coverage. 3. A client has had a no-lapse UL life policy for many years and can no longer afford the premium due to retirement, medical bills, LTC, etc. 4. A buy and sell agreement was funded with life insurance. One partner leaves and the other needs cash to buy out this partner’s share so he can pass the entire business to his children. So what if they could buy a competitive lower cost No-lapse UL policy that in the 15th, 20th and 25th year and thereafter could be surrendered for all or a percentage of premiums they paid into it at no extra cost? There is no doubt that this UL product has added benefits for policy owners when faced with any number of circumstances in later years. And for Agents, it can cause a client to buy some permanent coverage instead of all term insurance, perhaps beat the competition or actually get a person to buy now instead of waiting to see what the economy does. It is certainly a feature worth knowing about.
If you have a case to discuss, contact Dick Reynolds, CLU
(800) 710-1115 or dick@gpam.biz PAGE 22
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Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1). No deductible or elimination period! Available to issue age 80!1 (1Ages 35–79 in Florida)
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www.greatplainsannuity.com A universal life insurance policy with a Convalescent Care Benefits Rider (CCBR) that accelerates the specified amount of death benefit to pay for covered long-term care expenses. An Extension of Benefits Rider (EOBR) to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. The money-back guarantee is featured through the Enhanced Surrender Value Endorsement (ESVE), included in the policy cost for all single premium policies and for flexible premium policies for issue ages 35–65. The additional surrender benefit provided will be adjusted by any loans/loan interest/loan repayments, withdrawals taken, or claim payments made. The cost of riders will be deducted monthly from the policy cash value. Issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN870 with the Convalescent Care Benefits Rider (CCBR) on Rider Form LR870, an optional Enhanced Surrender Value Endorsement (ESVE) on Endorsement Form B10465F, an optional Extension of Benefits Rider (EOBR) on Rider Form LR871, and an optional Nonforfeiture Benefit Rider (NFO) on Rider Form LR872. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer. The policy and riders have exclusions, limitations, and/or reductions. Products and features, including benefits, terms, and definitions, may vary by state.
JUST the FACTS | 1ST QUARTER 2012
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800.710.1115
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Who’s pulling the strings at your current Marketing Organization? 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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