tip-off to sales
Post on 25-Feb-2016
95 Views
Preview:
DESCRIPTION
TRANSCRIPT
TIP-OFF TO SALESHow to Boost UL Sales in a
Depressed Economy: The TransSecuritySM Solution
John Oliver CLU, ChFC, MBAVice President, Field Development
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
Market Overview
What Clients are Looking For
How to Boost Your UL Sales
Tools and Resources
Overview
For producer use only. Not for distribution to the public.
Industry Trends, 2009
0
25%
-25%
-50%
5%
-14%
-1%
1%7%
12%
-49%-52%
-11%
0%
UL Term WholeLife VUL Total
Source: LIMRA U.S. Individual Life Insurance Sales Trends Q3, 2009
Policies Premium
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
Challenges to Your Business
Changing Environment High-net-worth market Estate Tax laws Premium Financing Guaranteed products
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
Challenges to the Opportunities of Future Generations
Budget deficits Increased taxes & slower recovery Real estate & equity depreciation Retirement insecurity
For producer use only. Not for distribution to the public.
Standard of Living: The Next Generation
For producer use only. Not for distribution to the public.
Source: The American Dream, CBS Poll, May 2009
Better or Worse Off?
Same or Worse 52%
Better 43%
For producer use only. Not for distribution to the public.
“The biggest myth is that the stock market returns, on average, about 10% a year.”
The Myth of Averages
-5.6
-0.9
3 Years 5 Years 10 Years
S&P® 500 (total returns, %) as of 12/31/2009
Source: “Let's Bury The Myth Of Averages,” Forbes, February 23, 2009Chart Source: Standard & Poor’s Index Services, Monthly Returns
0.4
For producer use only. Not for distribution to the public.
Client Mindset
For producer use only. Not for distribution to the public.
Today’s Clients Should they keep working longer? Revise their retirement plans? Scale back their standard of living now
to conserve money for later? What standard of living will my
grandchildren have?
Future Generations Lower income Higher taxes Fewer entitlements Less purchasing power Fewer opportunities
“Leave less to your heirs. Or even nothing at all.”Source: “Baby Boomers To Kids: Kiss Your Inheritance Goodbye,” The Wall Street Journal, July 2009
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The TransSecuritySM SolutionCreating Opportunitiesfor Future Generations
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The TransSecurity Solution
A Guaranteed Policy Guaranteed Income Strategy
Innovative Financial Underwriting
The Transamerica Advantage
A Guaranteed Policy
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The TransSecurity Solution
Independent of external factors
TaxesInvestments
Economic ConditionsCareer Choices
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The TransSecurity Solution
Guaranteed Death Benefit The “ACE” Advantage:
- TransACE UL- TransACE Survivor
2008 UL
Tax-favored status Tax-free buildup of gain Income & Estate Taxes
High Internal Rate of Return
Non-correlated to stock market
A Guaranteed Policy
Guaranteed Death Benefit The “ACE” Advantage
- TransACE UL- TransACE Survivor 2008 UL
For producer use only. Not for distribution to the public.
The TransSecurity Solution
Female, Age 65Male, Age 70
Standard Non-SmokersTransACE Survivor® 2008Premium: $ 30,187Death Benefit: $2,000,000
For producer use only. Not for distribution to the public.
A Guaranteed Policy
Female, Age 65Male, Age 70
Standard Non-SmokersTransACE Survivor® 2008Premium: $ 30,187Death Benefit: $2,000,000
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The TransSecurity Solution
20
15
10Year
$2,000,000
$2,000,000
$2,000,000
Internal Rate of ReturnNet Death Benefit
10.41%
17.10%
33.13%
A Guaranteed Policy
25 $2,000,000 6.86%
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The TransSecurity Solution
Guaranteed Death Benefit The “ACE” Advantage:
- TransACE UL- TransACE Survivor
2008 UL
Tax-favored status Tax-free buildup of gain Income & Estate Taxes
High Internal Rate of Return
Non-correlated to stock market
A Guaranteed Policy
Guaranteed Death Benefit The “ACE” Advantage:
- TransACE UL- TransACE Survivor
2008 UL
Tax-favored status Tax-free buildup of gain Income & estate taxes
High Internal Rate of Return
Non-correlated to stock market
For producer use only. Not for distribution to the public.
The TransSecurity Solution
A Guaranteed Policy
Innovative Financial Underwriting
The Transamerica Advantage
Guaranteed Income Strategy
For producer use only. Not for distribution to the public.
Dangers of Sudden Wealth
As many as 70% of those who come into sudden money end up losing it all because of their inability to deal with the practical, financial and emotional issues involved1
44% of lottery winner winnings were spent after 5 years2
Nearly one-third of lottery winners become bankrupt3
1 MSN.com as quoted in http://www.pacificawealth.com/financial_planning_services/sudden_money_recipients.asp (2010)2 Camelot Group Plc (2003)3 Certified Financial Planner Board of Standards, Inc (2003)
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The TransSecurity Solution
Income Protection Option (IPO)
Available at no additional cost May include multiple beneficiaries
5 – 25 years / $100 min.$10,000 min. $10,000 min.
Guaranteed Monthly Income StreamInitial Lump Sum
Back-EndLump Sum
Guaranteed Income Strategy
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The Turners’ Plan
*A portion of each monthly payment and a portion of the final lump sum are reportable as interest income. The policy illustration provides the tax-reportable percentage for each monthly income payment and the final lump sum based on a 3% guaranteed minimum interest rate and the illustrated face amount. Upon the insured’s death, the actual taxable portion of each monthly payment will be calculated and communicated to the beneficiary(ies) based on the actual payout amounts. The taxable portion of the final lump sum payment will be determined when the payment is made.
TransSecurity Solution: TransACE UL policy with the IPO on Eric Turner*
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
TransSecurity Solution: TransACE UL policy with the IPO on Eric Turner*
IPO Offers Flexibility
$25,000Start-up Capital
for business
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
IPO Calculator on TransWare
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The TransSecurity Solution
A Guaranteed Policy
Transamerica BrandInnovative Financial Underwriting
Guaranteed Income Strategy
For producer use only. Not for distribution to the public.
The TransSecurity Solution
Previous Guidelines
Estate Tax liability Multiple of salary Current in-force policies
NEW Guidelines
50% of current net-worth Growth factor: 7% Multiple of salary Current in-force policies
Innovative Financial Underwriting
For producer use only. Not for distribution to the public.
Calculating Net Worth
Age Growth Rate Number of Years
To age 65 7% 15
Age 66 to 75 7% 10
Over age 75 7% 7
For producer use only. Not for distribution to the public.
The TransSecurity Solution
Example Female Standard Age 65Male Standard Age 70
Net Worth: $4.0 Million
Qualify: $5.5 Million Death Benefit
Innovative Financial Underwriting
For producer use only. Not for distribution to the public.
Financial Underwriting Estimator
3975000
*Male, Age 45, Preferred, Non-smoker
For producer use only. Not for distribution to the public.
The TransSecurity Solution
A Guaranteed Policy
Innovative Financial Underwriting
Guaranteed Income Strategy
TheTransamerica Advantage
For producer use only. Not for distribution to the public.
The TransSecurity Solution
The Transamerica Advantage
Strong financials High consumer value Solid history, serving customers
for over 100 years
®
For producer use only. Not for distribution to the public.
The Transamerica Advantage
For producer use only. Not for distribution to the public.
The TransSecurity Solution
A Guaranteed Policy Guaranteed Income Strategy
Innovative Financial Underwriting
The Transamerica Advantage
For producer use only. Not for distribution to the public.
The TransSecurity Solution
HIGH-NET-WORTH
MIDDLE MARKET
($10 Million +)
MASS AFFLUENT
($1 - $10 Million)
(less than $1 Million)
Age 55 - 75
For producer use only. Not for distribution to the public.
Possible Sources of Premium
Lazy asset rescue Money markets/CDs Municipal bonds Annuities
IRAs Premium financing
For producer use only. Not for distribution to the public.
Top 10 Tools to Target a TransSecurity Sale
For producer use only. Not for distribution to the public. 34
Top 10 Tools
1. Two minute consumer video
2. Email template
3. Consumer Guide and Fact Finder
For producer use only. Not for distribution to the public.
6. Consumer lllustration
4. 5. FinancialUnderwriting
Estimator
3975000
IPO Calculator
For producer use only. Not for distribution to the public.
7. Producer FAQ 8. Producer Flyer
For producer use only. Not for distribution to the public.
YOUR CONTACT INFO HERE
YOUR LOGO HERE
9. Co-branded web site
For producer use only. Not for distribution to the public.
10. TransSecurity Concierge Unit
(866) 858-0066
Top 10 Tools
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
The TransSecurity Solution
A Guaranteed Policy Guaranteed Income Strategy
Innovative Financial Underwriting
The Transamerica Advantage
For producer use only. Not for distribution to the public.
Tip-Off to Sales
Save the Date: March 9
Next Tip-Off: Term for Our Times
Todd EwingVice President, Term Life and Direct Marketing
For producer use only. Not for distribution to the public. For producer use only. Not for distribution to the public.
This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here.
TransACE® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form #1-12611107 (CVAT), Group Certificate #2-72336107 (CVAT) for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary, and this policy may not be available in all jurisdictions.
TransACE Survivor® 2008 is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form #1-12111108 (CVAT), Group Certificate #2-72136108 for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary and this policy may not be available in all jurisdictions.
Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.
Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects.
Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of January 2010.
OLA 2055B 0210
TIP-OFF TO SALESHow to Boost UL Sales in a
Depressed Economy: The TransSecuritySM Solution
John Oliver CLU, ChFC, MBAVice President, Field Development
top related