1st QUARTER 2015
HOW DOES YOUR INCOME RIDER STACK UP?
(PAGE 11)
800.710.1115
Rates available 24/7 at www.greatplainsannuity.com
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100% Independently Owned!
2/23/2015 12:50:06 PM
Help Protect Your Clients From Market Fluctuations While some markets go down, others may go up. That’s why diversification is so important. With seven indexed strategies covering multiple diverse markets, LibertyMarkSM fixed indexed annuities help clients capitalize on market changes. Market Fluctuation (Past 10 Years)* Dow Jones London Gold S&P 500® Year End U.S. Real Estate Fixings PM 2004 2005 2006 2007 2008 2009 2010 2011 2012
24.20% 4.11% 29.74% -21.68% -43.43% 22.66% 21.50% 1.55% 14.11%
2013
-2.30%
4.65% 17.77% 23.20% 31.92% 4.32% 25.04% 29.24% 8.93%
8.99% 3.00% 13.62% 3.53% -38.49% 23.45% 12.78% -0.003%
8.26% -27.33%
13.41% 29.60%
The Inversion Strategy credits in a down S&P 500® market! These actual results show each market’s annual increase or decrease over the prior year and do not represent the LibertyMark product or strategies. LibertyMark strategies are subject to caps and/or participation rates. Examples are not reflective of actual annuity performance. LibertyMark was not available for purchase until April 2014.
With diversification options and a strong underlying minimum guarantee of 1% on 100% of premium upon contract termination (less surrender charges), clients can have peace of mind with LibertyMark from Americo Financial Life and Annuity Insurance Company.
800-710-1115
www.greatplainsannuity.com LibertyMark 7, LibertyMark 10, 10 LT (Policy Series 411/4182), and LibertyMark 10 Plus, 10 LT Plus (Policy Series 411/4179/4182/4184) are single premium deferred fixed indexed annuities underwritten by Americo Financial Life and Annuity Insurance Company (Americo), Kansas City, MO, and may vary in accordance with state laws. Products distributed by Legacy Marketing Group®. Some products and benefits may not be available in all states. Certain restrictions and variations apply. Consult policy and riders for all limitations and exclusions. Legacy Marketing Group is an independent, authorized agency of Americo. Richard Hellerich (Great Plains Annuity & Life Marketing) is an independent authorized agent of Americo. The Dow Jones-UBS Commodity IndexesSM are a joint product of DJI Opco, LLC (“DJI Opco”), a subsidiary of S&P Dow Jones Indices LLC, and UBS Securities LLC (“UBS”), and have been licensed for use by Americo Financial Life and Annuity Insurance Company (“Americo”). Dow Jones® and DJ® are trademarks of Dow Jones Trademark Holdings LLC; UBS® is a registered trademark of UBS AG. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC; and these trademarks have been licensed for use by DJI Opco and sublicensed for certain purposes by Americo. Americo’s LibertyMark annuities based on the Dow Jones US Real Estate Index Monthly Averaging (without Cap), are not sponsored, endorsed, sold or promoted by Dow Jones, UBS, DJI Opco or any of their respective subsidiaries or affiliates, and none of Dow Jones, UBS, DJI Opco or any of their respective affiliates, makes any representation regarding the advisability of investing in such product(s). All references to The London Gold Market Fixings prices used with the permission of The London Gold Market Fixing Limited and have been provided for informational purposes only. The London Gold Market Fixing Limited accepts no liability or responsibility for the accuracy of the prices or the underlying product to which the prices may be referenced. The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Americo Financial Life and Annuity Insurance Company (“Americo”). Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Americo. Americo’s LibertyMark annuities are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index. * Market fluctuations shown do not include variations in which index strategy changes are applied to any annuity policy. Please review the Sales Guide for index strategy crediting information. AF1053v1214_GP 14-632-11 (02/15)
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FOR BROKER USE ONLY. NOT FOR USE WITH CONSUMERS.
JUST the FACTS | 1st QUARTER 2015
2/23/2015 12:50:42 PM
PRINCIPALS • Rich Hellerich • Robb Edwards
ANNUITY SPECIALISTS
1st QUARTER 2015
6
THE KEY TO MORE SALES IN 2015
Rich Hellerich unlocks the secret to getting your 2015 sales off to a great start through alliances with CPAs: showing them you are a resource to protect and enhance their clients’ retirement dreams!
8
WHAT’S YOUR CLIENT’S FINANCIAL POSITION AND GOALS?
Understanding a client’s financial position today along with their objectives for tomorrow is the cornerstone of helping them build a successful retirement plan.
10
LOOKING FOR THE BEST GLIB SOLUTIONS?
12
DISCLOSURE & COMPARISON FORMS: WHAT YOU NEED TO KNOW
• Mike Lair, Sr. V.P., Annuity Marketing • Cindy Nelson, V.P., Annuity Sales • Aaron Terhune • Brad Allen • Carlos Rojas • Jane Plumberg • Kara Jones • Scott Andrew
LIFE SPECIALISTS • Dick Reynolds, CLU, V.P., Life Sales • Aaron Terhune
ADMINISTRATION • Cris Larson • Naomi Mayekawa • Mackenzie Oakley • Kathy Putnam • Gina Skiles
Using Great Plains’ IncomePLUS Income Rider Comparison Tool helps you find the top guaranteed income solutions and saves hours of research.
Failure to adequately and thoroughly complete this important paperwork can jeopardize more than just your case. See these real examples of D&C paperwork gone bad to avoid embarrassment, frustration and potential termination.
14
FINANCIAL HELP CENTERS
In less than five minutes, “Financial Help Centers” gives insurance agents and financial advisors a unique referral and prospecting system that generates leads.
18
ESTATE TAX PLANNING WITH A “PEEL OFF” OPTION
Thinking outside the box can help give your clients flexibility and control over the policies they purchase.
JUST the FACTS | 1st QUARTER 2015
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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 For financial professional use only. Not for use with the general public. This publication is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Great Plains Annuity & Life Marketing, its affiliated companies, and their representatives and employees do not give legal or tax advice. Encourage your clients to consult their tax advisor or attorney. Great Plains Annuity & Life Marketing is not affiliated with third party vendors mentioned in this magazine nor do we guaranty the accuracy or quality of their services. Although we may promote and/or recommend the services offered by these companies, financial professionals are ultimately responsible for the use of any materials or services and agree to comply with the compliance requirements of their broker/dealer and registered investment advisor, if applicable, and the insurance carriers they represent. The third party links, information, and opinions included in this magazine are provided as a service to you. They have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Great Plains Annuity & Life Marketing. The material is being provided for information purposes only and is not a solicitation for the purchase of any product. The information is not intended to be used as the sole basis for financial decisions nor should it be construed as advice designed to meet the particular needs of clients. Financial Professionals should ensure they continue to follow the current policies on the use of any advertising, third-party materials and/or social media as required by their broker/dealer and registered investment advisor, if applicable, and the insurance carriers they represent.
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2/23/2015 12:51:33 PM
What a Start to 2015! One reason this issue of Just the Facts is delayed in getting to you is due to the tremendous activity and cases producers are sending our way. Great Plains is off to a great start for 2015 and we thank all of you who have submitted business. Many of you have seen the industry figures regarding the growth of Fixed Indexed Annuity sales and our FIA production certainly follows this trending growth. I was honored to write an article for the February issue of Broker World magazine regarding FIA sales practices and appreciate the comments I have received from many of you. Please see page 14 and contact your Annuity Marketing Specialist, or visit our website for a copy. FIAs can be a wonderful product for accumulation and guaranteed lifetime income – and I hope you find a review my comments helpful to your sales efforts. Business Owner Opportunities: One of discoveries from our Power Partners Network efforts is the tremendous potential in helping CPAs and their business owner clients with business insurance needs. We have several carriers that specialize in this market, and there are life insurance sales opportunities to address owners, key employees, income protection, exit and succession planning. One of our carriers offers a free business valuation that you may want to learn more about. Please contact me for more information regarding this great sales idea.
it so frequently assisting our regular producers here in the office that I forget we still have need to remind agents they can save hours of research and determine the leading guaranteed lifetime income FIA solutions in just a few minutes. I also appreciate unbridled enthusiasm when it comes to our team being excited with a way to better serve you! Welcome Aaron Terhune I’m excited to welcome Aaron to our Great Plains sales team. His recent move to the Kansas City area and prior marketing experience and knowledge helping agents with fixed annuity and life sales make him a perfect addition to our team! I hope your 2015 is off to as great a start as ours! We are eager to assist your annuity and life marketing needs with the best sales support in the industry.
IncomePLUS Aaron Terhune recently joined us and was so impressed with our IncomePLUS income rider comparison tool he asked to contribute to this issue of JTF (see page 10). I have to admit that we use
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JUST the FACTS | 1st QUARTER 2015
2/23/2015 12:52:11 PM
MarketTwelve Bonus Index®
Income For Life Rider
The Income For Life income benefit rider (IBR) provides income withdrawal amounts based on the value of the rider’s Benefit Base. The higher the Benefit Base, the greater the annual withdrawal amounts! The MarketTwelve Bonus Index annuity offers a 12% bonus which is factored into the rider’s Benefit Base growth. The bonus is paid over 3 years: 6% at issue and 2% at the end of years 1, 2 and 3. Benefit Base Growth Enhancers: 1. The annuity’s 12% Bonus gives a spark to the Benefit Base growth 2. After the first 6% bonus, the remaining bonuses are based on the growing Benefit Base value – not the initial premium amount 3. Premium and bonuses compound at 6.5% for up to 10 years
New Client-Use Flyer Explains the Power-Combo Mechanics! Call today to receive this flyer that explains how the 12% bonus and 6.5% rollup rate provide a compounding advantage for your clients.
Questions? Call us today!
800.710.1115
www.greatplainsannuity.com MarketTwelve Bonus Index annuity withdrawals are subject to surrender charges and market value adjustment. Income payments will be reduced in the event of an unscheduled withdrawal. Withdrawals before age 59 1/2 may result in IRS penalty tax. Withdrawals do not participate in index growth. MarketTwelve Bonus Index is issued on Form Series ETMPP-2000(02-05) with rider ET-AVBR(06-09). Group certicates issued on Form Series ET-MPP-2000C(01-07) with rider ET-AVBRC(06-09). Income For Life rider issued on Form Series ET-IBR(06-08). EquiTrust Life Insurance Company, West Des Moines, Iowa. AC15-M12-1018. For Producer Use Only.
JUST the FACTS | 1st QUARTER 2015
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PAGE 5
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The key to more sales in 2015 Great Plains’ Power Partners Network:
Building Strategic Alliances with CPAs What’s your marketing plan for getting quality prospects in 2015 and beyond? If you are looking for higher net worth clients you need to consider building strategic alliances with other financial professionals. Our experience shows that clients are turning to their CPA for advice on financial topics such as life insurance and wealth transfer issues, funding and managing retirement assets, children’s education and more. That a client asks their CPA for guidance on these issues makes sense – consumer opinion places them near or at the top of polls rating the most trusted financial advisors. Creating strategic alliances with CPAs and Tax Professionals can effectively build a steady stream of referrals and generate millions of dollars of new fixed annuity and life target premiums. The challenge is found in understanding and addressing accountants’ concerns about serving and protecting their clients, how
the addition of these services will be perceived by their clients, if they can trust you with their high-value client relationships and patience. Risks/Rewards Consider the potential issues the accountant must consider before creating an alliance with you:
Benefits to Accounting Practice
Risks/Costs to Accounting Practice
Additional revenue potential with little effort
Could harm firm’s reputation
Better overall service to clients
Loss of client control
Increased client satisfaction and retention
Additional legal, regulatory and financial obligations
Makes firm unique, and clients are already asking for help with retirement and wealth transfer issues
Additional effort and expense to obtain proper licenses
Why should the CPA work with you? How can you demonstrate you can deliver the above benefits while minimizing or eliminating the risks? Great Plains has developed the Power Partners Network referral program to assist our active producers in building strategic alliances with CPAs and Tax Preparation Specialists. Based on my personal experience and the results of our pilot program started in the second quarter of 2014, we are ready to open membership to our producers around the country. Annuity and Life Professionals with existing CPA/Tax Preparer relationships or those with the patience to build these personal relationships will find our Power Partners Network to be a tremendous opportunity! We have been monitoring our pilot group closely, and I’m satisfied that we have created an excellent program and best practices for those producers with the personality, credibility and patience to engage the CPA or tax professional in an on-going strategic alliance. Your Annuity Marketing Specialist can introduce you to our program and enrollment requirements. If you would like more information contact me at rich@gpam.biz.
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JUST the FACTS | 1st QUARTER 2015
2/23/2015 1:11:18 PM
The more you brew, the more you accrue. Grab a cup of excellence with Income 150+ fixed index annuity. Enjoy the bold flavor of 7% commissions plus an additional sweetener — incentive compensation based on annual production of Income 150+ only. TM
Now with a bolder
change:
Production is based on a rolling 4 quarter assessment
$1,0
00,000
000,000 $2,
00,000 $3,0
0,000 $75
0.5% 1.0%
Bonus
1.5%
2.0%
In addition to your regularly scheduled point of sales commissions, we have built-in incentives to compensate you regularly, up to 200 bps, for outstanding production with Income 150+.1 The rolling 4 quarter assessment gives you the best chance for qualifying all of your production because it’s never interrupted by year-end. Your qualification can now be maintained throughout the year and not limited to a calendar year.
For more information, contact:
Call today for details! 800. 710.1115 [name, phone, email] Keep your business brewing and increase your earnings potential. Eligibility requirements Agents are eligible if they have no debit balance and have not been the subject of any customer complaint. Agents, corporations and licensed only agents assigned to their own hierarchies must be at EGA level or below. Agents may not aggregate production to qualify. The program and its criteria apply to individual writing agents signing applications. Premiums may not be split between agents for qualification, even if commissions are split at point of sale. Forethought reserves the right to terminate or change the terms of this program at any time, at its sole discretion, and will make all determinations as to eligibility. 1
Production is based on Income 150+ sales and assessed on a quarterly basis to determine the qualifying incentive. Qualification is based on Net Paid Premium, which is all paid premium minus any premium subject to chargeback for surrenders or deaths in the first contract year.
Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and are subject to compliance with benefit rules. Forethought is Forethought Life Insurance Company and affiliates. Subsidiaries of Global Atlantic Financial Group Limited. Income 150+ fixed index annuity, issued by Forethought Life Insurance Company is available in most states with Contract FA1201SPDAX-02, FA1201SPDAX-01, ICC11-FA1201SPDAX-01 and FA1201SPDAXL-02 (certificate series GA1201SPDAX-02, as applicable). Products and features are subject to state availability and variations. Read the Contract for complete details. NOT FOR USE WITH THE PUBLIC. FOR PRODUCER USE ONLY. FA7210 (10-14)
100550-1
Printed in U.S.A. © 2014
JUST the FACTS | 1st QUARTER 2015
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PAGE 7
2/23/2015 12:54:05 PM
What’s Your Client’s Financial Position and Goals? Understanding a client’s financial position today along with their objectives for tomorrow is the cornerstone of helping them build a successful retirement plan. The successful plan will explore Income, Accumulation, Care, and Family, the main cornerstones of that successful plan. It will also understand and address the many risks a client may have to endure to ensure their lifestyle remains the way envisioned during their retirement days: • Source of assets: Most corporations have switched to defined contribution plans from defined benefit plans • Health Care Coverage/Costs: Corporations offering health care coverage have declined significantly, and soaring costs of health care, which could approach $500,000 for an individual • Longevity: For a couple, there is a 94% chance at least one lives to 80 - and a 36% chance one will see 95 • Investment Risk: Impact of market losses before or after taking retirement income Not addressing any of the retirement risks during the planning phase can have a catastrophic impact on an individuals’ ability to maintain the preferred lifestyle in retirement. For instance, outliving ones assets is a real concern for clients as life expectancy rates continue to increase. As we live longer, it is also reasonable to assume a client may experience added health care costs. So clients not only need their dollar to last longer but also cover new unexpected needs.
Phoenix has developed several great marketing and sales tools for advisors to walk thru these retirement cornerstones and pitfalls in their Plan Right, Retire Right program. The first option is available online which walks thru all of the above risks using charts and industry data, before leading you right to the illustration capabilities of the portfolio. They also have a .pdf booklet that can be used during a sales presentation, which is available from your Great Plains Annuity Specialist. Couple this with the strength in the annuity portfolio, including income (PIA), care/death (PPC) and accumulation (PRC) - and advisors can feel confident they are providing a full retirement plan that can meet the needs of their various clients. Visit Phoenixsalesnet.com, to take advantage of additional online planning tools and information and call your Great Plains Annuity Marketing Specialist for contracting!
800-710-1115
The good news is that there are products available to maximize the impact of a client’s saved dollar while addressing both the cornerstones and risks.
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JUST the FACTS | 1st QUARTER 2015
2/23/2015 12:54:50 PM
When it comes to guaranteed lifetime income…
Phoenix Personal Income Annuity is right in the sweet spot! Did you know that over 70% of fixed indexed annuities are purchased with guaranteed income Or that most FIA Did you know that overa70% of fixed indexed annuitiesrider? are purchased with a guaranteed income rider? Or that most FIA owners begin taking after 2We years? We did. owners begin taking income afterincome 2 years? did.
Source: looktowink.com Source: 3Q2014looktowink.com Sales & Market Report 3Q2014 Sales & Market Report
Game, Set, Match. For clients taking income early, Phoenix Personal Income Annuity with Income Strategy Today aces the competition. Guaranteed Lifetime Income Comparison The table below shows only guaranteed lifetime income. Competitor annuities may offer rates and features that may be more favorable than Phoenix Personal Income Annuity*. Issue Age 63 65 67 70
Income Year
Phoenix Personal Income Annuity with Income Strategy: Today
0
$5,642
2
$6,815
0
$5,668
2
$6,815
0
$5,746
2
$6,931
0
$6,136
2
$7,627
Company A
Company B
Company C
not allowed $6,360
$6,003
$6,254
not allowed $6,612
$6,248
$6,254
not allowed $6,864
$6,493
$6,254
not allowed $7,430
$6,860
$6,880
*Be sure to to compare compare all all material material features features including *Be sure including bonuses, bonuses,crediting creditingrates, rates,fees, charges and limitations before recommending one annuity over another.
fees, charges and limitations before recommending one annuity over another. For Agent Use Only. Not for distribution to the public as sales literature.
Lifetime payments and guarantees are based on the claims paying ability of PHL Variable Insurance Company.
800.710.1115
This benefit and its features are subject to state approval and may not be available in all states. Phoenix Personal Income Annuity (09EIA, ICC09EIAN, 10FIA and 101SN) is issued by PHL Variable Insurance Company (PHLVIC), (Hartford, CT). PHLVIC is not authorized to conduct business in NY and ME. Member of The Phoenix Companies, Inc. For Agent Use Only. Not for distribution to the public as sales literature. A5097U ©2015 The Phoenix Companies, Inc. 1-15 Lifetime payments and guarantees are based on the claims paying ability of PHL Variable Insurance Company. BPD39303 This benefit and its features are subject to state approval and may not be available in all states. Phoenix Personal Income Annuity (09EIA, ICC09EIAN, 10FIA and 101SN) is issued by PHL Variable Insurance Company (PHLVIC), (Hartford, CT). PHLVIC is not authorized to conduct business in NY and ME. Member of The Phoenix Companies, Inc. Phoenix and Great Plains Annuity & Life Marketing are not affiliates. A5097U ©2015 The Phoenix Companies, Inc. BPD39303 1-15
www.greatplainsannuity.com
JUST the FACTS | 1st QUARTER 2015
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PAGE 9
2/23/2015 12:55:28 PM
Looking for the best GLIB solutions? Let Great Plains do the Heavy Lifting with IncomePLUS! In my role of helping agents find the best guaranteed income solutions for their clients’ I have spent hours of research looking for the best product. Reviewing data for multiple carriers one-byone can be excruciating. Because of my experience, I was excited to learn how Great Plains’ Income Rider Comparison Tool assists producers in focusing on the top guaranteed income solutions. I could hardly believe we had the ability to get It’s no wonder Great Plains’ FIA production is enjoying doubledigit growth when we can email our agent a PDF of the income rider comparison results while we are on the phone with them discussing case development and
client goals. This gives me the freedom to discuss additional benefits and riders as well as some additional great products to consider. With just a few pieces of client information: age, premium, single or joint income, and state of issue, we can help find the best payouts illustrated on our easy-to-read worksheet. We can also look at additional scenarios where you and your client might want to consider our laddered approach to provide more flexibility, potential income and address other possible life issues such as chronic health concerns, income for a surviving spouse, or enhanced death benefits for heirs.
Another benefit my sales team associates showed me are the “income sweet spots” that we have identified. Some riders are the strongest performers with long deferral, some if income is desired immediately. Your Great Plains Annuity Marketing Specialist can direct you to those sweet spots and additional products to consider. Client retirement income goals are about having enough income to achieve their retirement dreams. Let us do the heavy lifting for your GLIB research!
Aaron Terhune, Annuity and Life Insurance Specialist Aaron@gpam.biz Aaron received his Bachelor of Science in Management from Kansas State University, where he was an active member in the local chapter of his fraternity and volunteered at multiple area charities. After college Aaron started his own successful real estate brokerage in Topeka, KS. After being in real estate, Aaron sold his office and joined the Financial Services field. When it comes to Annuity & Life Insurance products, Aaron is dedicated to driving the success of those he serves. He has extensive experience and knowledge with case development, building marketing plans and increasing his producer’s book of business. Aaron believes that relationship building is the driving factor of being successful in any business.
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JUST the FACTS | 1st QUARTER 2015
2/23/2015 12:56:04 PM
50% PREMIUM BONUS UP TO
• “A” Rated Carrier
HOW DOES YOUR INCOME RIDER STACK UP?
• 20% Immediate Income Bonus • 15% Bonus Credited Start of Year 3 AND Start of Year 5 • 150% Bonus Of Interest Earned Credited Year 10
Up to 9% Commission 0-75! Save hours of Income Rider research! Compare your Lifetime Income results to our IncomePLUS Income Rider Comparison Tool!
Call today for your FREE sample! 800.710.1115
www.greatplainsannuity.com JUST the FACTS | 1st QUARTER 2015
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FOR AGENT USE ONLY
PAGE 11
2/23/2015 12:56:43 PM
Disclosure & Comparison forms…
what you need to know! So you write an annuity case, complete a seemingly endless number of forms, and finally come to the “Disclosure and Comparison” (D&C) form which is often required on replacement cases. We all understand the temptation to answer some of the questions (regarding the replacement) with an “educated guess” or to “the best of our ability”. Do NOT let this temptation overtake you! It is vital that this information is accurate. The consequences associated with bad information range from declined cases to being terminated from a carrier “with cause”. Every carrier has its own method for reviewing suitability and verifying the information provided in the Disclosure and Comparison (D&C) form, but here are some examples from real cases... Company A sent a copy of the D&C to the transferring carrier along with the transfer request and replacement form. Unfortunately for one agent, the D&C was returned to Company A along with the correct product information for the replacement policy. The result... 1. All of the agent’s business (since the D&C was implemented as a policy) was reviewed 2. Two out of three pending cases were declined because the clients were giving up too much value from the in-force riders (and the clients received letters from the carrier explaining why) 3. The agent had to provide the carrier with a written explanation for the bad information provided on the new business and a couple of older cases 4. The agent had to go back to the clients on the older cases to have new D&C forms and letters of acknowledgment signed Company B sent a letter to the transferring carrier after the new contract was issued requesting verification of a couple key points on the D&C. The letter was returned, they could not verify the information because it was incorrect; the corrected information revealed a surrender charge which was not disclosed and a surrender schedule which didn’t match. The result... 1. All of the agent’s business was reviewed 2. The agent was terminated with cause
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3. Several clients were sent letters from the carrier explaining the bad information, the termination, and offering full refunds (which, of course, are accompanied by full commission charge backs) 4. Needless to say, the new business was declined and those clients also received letters of explanation from the carrier Company C sent a request for verification of surrender charges and MVA along with the transfer and replacement form. The response was returned with the check and it was clear the surrender charges entered on the D&C were reduced by the amount of the MVA. The result... 1. The new contract was issued 2. The agent had to get a new D&C form and acknowledgement letter signed by the client at the time of delivery 3. Commission was held until the free look period was over Complete D&C paperwork thoroughly and accurately. Let your client know you need their cooperation regarding existing policy information to ensure their new purchase is in their best interest. The correct information for the D&C form will help ensure your policy will move through Compliance smoothly (er, smoother). The insurance carriers really are not trying to make life difficult for any of us. Recent regulation changes require companies to perform suitability reviews on each and every case submitted; they are audited and fined when they fall short. If you have any doubts regarding the D&C information, or any issue with application paperwork, call your Great Plains Annuity Marketing Specialist for help! We want to help get your business processed as painlessly as possible.
Cindy Nelson, V.P., Annuity Sales Cindy@gpam.biz
JUST the FACTS | 1st QUARTER 2015
2/23/2015 12:57:31 PM
Experience. Security. Loyalty.
Preserve Multi-Year Guaranteed Annuity offers a Tasteful Selection... 3-Year:
5-Year:
6-Year:
7-Year:
10-Year:
1.50% 2.60% 2.80% 2.90% 3.20% • Guarantee Options from 3-10 Years
• Full Account Value at Death
• 10% Free Withdrawals
• Issued to Age 90
The Preserve MYGA Series is one of the most popular MYGAs Great Plains offers! Sample all the available guaranteed rate flavors and sweet compensation by calling your GPALM Annuity Marketing Specialist now!
800.710.1115
www.greatplainsannuity.com Interest rate shown is as of 2/12/2015, is subject to change and may vary in accord with state regulations. Preserve Annuities are issued by and are obligations of Guggenheim Life and Annuity Company, home office at 401 Pennsylvania Pkwy., Suite 300, Indianapolis, Indiana 46280. Annuity products are not insured by the FDIC. Annuity contracts contain charges and limitations. Preserve annuities have varying surrender charge periods with substantial penalties for early withdrawal, and may be subject to a market value adjustment. Preserve annuities and/or certain optional features of such annuities may not be available in all states. Guggenheim Life and Annuity Company is not licensed in New Jersey and New York. The contract is issued on form numbers GLA-MYGA-01 or variations of such. 101401A
JUST the FACTS | 1st QUARTER 2015
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PAGE 13
2/23/2015 12:58:11 PM
Become a Financial Help Center! Do your current marketing efforts include an internet presence (web site)? If you do have a web site, does it provide consumer education and promote a call-toaction for interested consumers to reach out to you? Like it or not, reaching qualified prospects and boosting your credibility in today’s marketplace includes having a web site. Baby Boomers and Generation X consumers are much more adept at researching retirement and financial topics using their computer and the internet than previous generations. They prefer and are comfortable gathering information and education on these topics while looking for an advisor to interview. Unlike their parents and grandparents they do not want be “sold” and appreciate a more consultative approach when working with them. Providing valuable consumer information via the internet is non-threatening and enhances your credibility as a resource to achieve their goals. Great Plains is introducing an updated internet marketing tool for interested producers. FinancialHelpCenter.Org is built on the same platform as our first-generation internet tool, Annuity Help Center.com. We have added more flexibility in expanding the Resources Tab to allow users multiple marketing opportunities, such as Wealth Transfer (life insurance), Social Security education, LTC, and more. Utilizing this tool, agents can quickly build a costeffective internet presence that provides: • Credibility/Branding • Multiple Lead-Generation Offers • Easy set up and maintenance • Ability to function as your primary web site or auxiliary lead tool for your existing web site Financial Help Center domain and website are valuable assets for the following reasons: • “Helpcenter” is generic, descriptive, and easy to remember- a familiar and commonly used word. • ‘Financial Help Center’ correlates to a prospect’s unique need. • ‘Financial Help Center’ domain communicates a clear descriptive idea to the prospect.
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This internet marketing tool’s initial offer is for a free e-book; Your Personal Financial Help Center: Special Retirement Edition. Authored by Bruce Sankin, the book has been recently updated with additional information on Social Security, elder law, and identity theft and more. Mr. Sankin is a former stockbroker, and is now a consumer advocate for investor and financial education. He has written financial columns on arbitration, and his book has been reviewed in Money Magazine, The Wall Street Journal, Kiplinger, and other national media. His book has been reviewed, and he has been interviewed, on NBC and CNBC. You are notified by e-mail when prospects request a copy of the e-book, or other offers you list on the ‘Resources’ tab via your FHC web site. You have the option of giving them a hard copy of the book if they schedule an appointment. The books are also excellent giveaways if you do seminar and radio marketing. We have a marketing guide with promotional ideas to generate leads and referrals. We will be offering marketing support with suggested Resource offers, and can help you build custom offers as well. The effectiveness of a Financial Help Center is proportional to the effort in promoting it. This is not a marketing “silver bullet”, but rather a cost-effective way to augment and cross-promote your other marketing efforts. Want to “test drive” a Financial Help Center site? If you would like to see a sample Financial Help Center web site just visit: www.your.financialhelpcenter.org. Click on the resources tab at the left side of the home screen, go to the Financial Help Center. offer and download more information. When you do, you can include comments and I will be notified of your interest by email. If you don’t have a web site you should consider this cost-effective solution. If you currently have a web site consider adding a Financial help Center link that offers a clear “call-to-action” and free consumer financial information to prospects and clients! Please call me direct regarding our Financial Help Center opportunity or to discuss any other marketing and lead-generation topics. Robb Edwards, Principal Robb@gpam.biz | 800-710-1115
JUST the FACTS | 1st QUARTER 2015
2/23/2015 12:58:45 PM
A Lead Generation Tool disguised as a website! In less than five minutes, “Financial Help Center” gives insurance agents and financial advisors a unique referral and prospecting system.
Your Financial Help Center subscription includes: • Unlimited supply of “Your Personal Financial Help Center” e-book ($19.95 value) to give each prospect. • Easy-to-create Financial Help Center Website • Website Hosting • Marketing ideas, letters, scripts and more to generate 5% - 50% in referral leads! • Annual subscription fee of $99.95 beginning in the 2nd year.
Go to www.financialhelpcenter.org/admin and use coupon code apa3 when you create your account.
Three special offers from Great Plains: Annual Subscription with unlimited e-books: $195.00 (Savings: $300.00) First 10 orders receive 10 Free Books! ($100 Value) Annual Subscription Plus Personally Customized e-book: $395.00 (Savings: $395.00) Annual Subscription, e-book and 30 books: $495.00 (Savings: $300.00)
Call today! Don’t miss this opportunity to brand yourself as an Financial Help Center at a ridiculously low cost!
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 1st QUARTER 2015
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Odds & Ends EquiTrust announces new WealthPay Life policy
Is your E&O insurance due to renew?
Do you have clients with retirement assets or annuities who would like to reposition them to increase the benefit to heirs and spread the tax liability?
Be sure to contact your Annuity Marketing Specialist BEFORE you renew your existing E&O coverage to learn about your options through Great Plains! Call 800-710-1115 for details!
EquiTrust recently introduced WealthPay Life – a life insurance solution to ease the looming tax burden of qualified assets or low-tax-basis annuities, and increase the value of your clients’ estates to benefit their heirs. WealthPay Life utilizes two EquiTrust contracts: • Period-certain single premium immediate annuity (SPIA), and • Simplified-issue index-linked whole life insurance policy SPIA payments pay the annual premiums for the life insurance policy. A rollover or exchange to the SPIA allows the taxable gain to be spread over the duration of the SPIA payments. This prevents incurring the taxes all at once. Plus, qualified assets and annuities passed to heirs upon death are subject to probate and taxation to heirs, where life proceeds are generally income tax-free and bypass probate.
Great Plains WebSite Update Please visit our remodeled Great Plains website for the latest fixed annuity and life insurance information, access to marketing ideas and programs and more.
Primary Benefits: • Owner can spread tax impact of qualified assets or low-taxbasis annuities • Owner has access to policy loans or penalty-free withdrawals* • Owner may receive a portion of the death benefit while living in the event of the insured’s terminal or chronic illness • Beneficiaries receive death benefits generally income tax-free and avoid probate costs Minimum Single Premium: $25,000
Calling all Fishermen: We are currently gauging producer interest for an exclusive fishing trip incentive hosted by GPALM and Rich. Please contact your Great Plains Marketing Specialist if you would like give us input and to be considered for this special fishing trip incentive!
Premium Period: 3, 5 or 10 years** Issue Ages: 60-80 Commission: Up to 11% for Applicant Ages 60-75; 6% for Applicant Ages 76-80 Contact your Great Plains Marketing Specialist for more information and sales ideas – 800.710.1115!
Why the Heck did you sell a LIBR? Great Plains Principal Rich Hellerich had the opportunity to contribute an article to the February issue of Broker World magazine. In case you missed it, and due to the number of calls and email response Rich received, we wanted to make the article available to you. If you would like a copy of his article: “Why the Heck did you sell a LIBR?” please contact your Annuity Marketing Specialist. If you would like a free subscription to Broker World compliments of Great Plains, you can register at: www.greatplainsannuity.com/subscribe.
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JUST the FACTS | 1st QUARTER 2015
2/23/2015 1:00:31 PM
American Custom 10 11 simple simple product product 3 3 competitive competitive riders riders
Tackle Tackle your your clients’ clients’ retirement retirement needs needs with with the the American American Custom Custom 10! 10! SM ® The The American American Custom Custom 10 10SM fixed-indexed fixed-indexed annuity annuity from from Great Great American American Life Life® offers: offers: 10-year l 10-year early early withdrawal withdrawal charge charge schedule schedule l l 5% penalty-free withdrawals l 5% penalty-free withdrawals 1 l Multiple l Multiple indexed indexed strategies strategies including including aa strategy strategy that that offers offers uncapped uncapped growth growth potential! potential!1 l Four l Four competitive competitive commission commission options options for for you! you! 2 Plus, Plus, your your clients clients can can customize customize their their strategy strategy with with one one of of our our optional optional riders riders2
Liquidity Liquidity
Growth Growth ++ income income
Growth Growth ++ increasinG increasinG income income
Cumulative Free-Withdrawal Option Cumulative Free-Withdrawal Option
Simple Income Option Simple Income Option -10% income rollup for 10 years -10% income rollup for 10 years -Early income enhancement -Early income enhancement
Stacked Income Option Stacked Income Option 5% income rollup for 10 years, plus 5% income rollup for 10 years, plus 100% of account value interest for the 100% of account value interest for the life of the contract. life of the contract.
25% maximum 25% maximum
800.710.1115
www.greatplainsannuity.com Participation rate applies to strategy. Participation rate applies to strategy. There is an annual charge for each rider. Only one rider may be selected and must be added at the There is an annual charge for each rider. Only one rider may be selected and must be added at the time of purchase. time of purchase. Products issued by Great American Life Insurance Company®® under contract form number Products issued by Great American Life Insurance Company under contract form number P1104314NW and P1104414NW and rider forms R6046814NW, R6046914NW and R6047014NW. P1104314NW and P1104414NW and rider forms R6046814NW, R6046914NW and R6047014NW. Contract and rider form numbers may vary by state. Products not available in all states. Contract and rider form numbers may vary by state. Products not available in all states. 1 1 2 2
F1106514NW F1106514NW
JUST the FACTS | 1st QUARTER 2015
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For producer use only. Not for use in sales solicitation. For producer use only. Not for use in sales solicitation.
Annuities Annuities 10/14 10/14
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2/23/2015 1:01:17 PM
There are a couple of consistent reasons why wealthy individuals or married couples do not purchase life insurance for future estate taxes. One, they may gift away many of their assets over a period of time reducing their taxable estate and two, they don’t know if they will need as much life insurance for these taxes when they do die. Both result in no sale for the Agent. So, consider this example of a “Peel Off” option which gives them control over the policies they purchase today. A Husband and Wife, both age 62, need roughly $10 million of survivorship life based on future growth of their current assets and using the 2015 lifetime exclusion totaling $10,860,000. They purchase two (2) Survivorship life policies for $5 million apiece instead of just one for $10 million. Since each has a guaranteed surrender value in year 15 equal to all the premiums paid, they now have options not seen before.
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1. Peel Off one of the $5 million policies via a surrender if they don’t need this much coverage anymore • surrender value can be retained as cash
*Keep in mind that this Peel Off option isn’t just for estate tax planning needs. Any personal or business sale of permanent life insurance on a single life will work where the client can see the benefit of having these type options in the future. If you have questions or a case to quote, please contact me.
• surrender value can be used to pay future premiums on the other $5 million policy • surrender value can be dumped into the other $5 million policy with no further premiums 2. Surrender both policies if the estate taxes are no longer an issue and receive back all premiums paid for the first 15 years
JUST the FACTS | 1st QUARTER 2015
2/23/2015 1:10:43 PM
Boost your sales with this Wealth Transfer Trifecta! WealthPay Life™
WealthMax Bonus Life®
WealthSure Life®
• For Qualified Funds
• Indexed-linked Returns
• Interest Sensitive Returns
• Spread the Tax Liability
• 12% Premium Bonus
• Competitive Commission
• SPIA-Paid Premiums
• Return of Premium
You can help your clients... • Immediately increase the death benefit passed to heirs • Pass assets – generally income-tax free – and avoid probate • Accelerated Benefits available, if the insured qualifies • Simplified Issue – decisions within a couple days
Call your Great Plains Marketing Specialist today!
800.710.1115
www.greatplainsannuity.com Products, rider provisions and accelerated benefits not available in all states or may vary by state. Life insurance policies issued on Form Series ETL-ISWL-2000(01-10), ETL-IUL-2000(08-10) or ICC13-IWL-2000(01-13). All products are issued by EquiTrust Life Insurance Company, West Des Moines, IA. For Producer Use Only. AC15-WTL-1017
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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!
Lost in the crowd with your current AMO?
Maybe it’s time to make a change! Who says $1,000,000 Annuity Producers aren’t a BIG DEAL? Frustrated by reduced service and limited access to your current annuity resource? Are your calls being handled by a changing cast of characters at a service desk? Feeling like you are a little fish in a very big pond!?! We think you deserve: • Accessible, experienced Marketing Specialists that support your sales efforts! • Access to over 60 carriers and hundreds of product solutions! • Real help for your case development needs to better serve your clients! • Free access to additional marketing tools and in-house advertising support
No hoops to jump through - just honest, old-fashioned service from professionals that appreciate the opportunity to work with you. Maybe it’s time to get a second opinion about your production and learn more about an organization dedicated to ALL the producers they serve. Talk with one of our experienced Annuity and Life Marketing Specialists eager to serve YOUR needs!
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