My "Bersonal" View

Yesterday I had lunch with one of our top reps who is still doing seminars. While the seminars are still costing him more than he likes, the success of his programs cannot be denied. He has some great ideas on how to make the seminars work. He is consistent (ie: does a seminar every month except August) and continues to update his material. But, one of his ideas caught my attention and I wanted to share it with you. After the seminar he does the traditional follow-up to book appointments but unlike anyone I have ever known he “double books.”

Now before you start to cringe let me tell you what he told me.  And remember this is his experience but not so dissimilar from what I have heard from others who do public seminars. Most people book appointments and get a lot of “no-shows” or cancellations. Usually this has to do with the attendees having second thoughts or scheduling issues. What he told me is that double booking works in this format. In fact- he said that only on a couple of occasions do both clients show up at the same time- and when that has happened he simply apologizes to one for the mix-up and asks them to have lunch on him next door until he can see them in an hour.

This idea has helped in a few ways. He sees more clients within the first two weeks of the workshop. Rather than having to push clients out he can schedule them all with in a short time frame. This is important as the sooner you see your clients the better. The other benefit is even if both of the clients show up at the same time- this works to his advantage as well because both clients now understand how valuable his time is and how busy he is- and that is important when you are making a first impression with the client.

If you hate this idea- don’t do it. But for one top agent it is creating a pathway to success that works for him.

What We Learned and What YOU Need to Know!

On Tuesday, July 21st, the day comments were due, AAP met with the Directors and staff of the Office of Regulations and Interpretations (in charge of the Conflict of Interest Contract) and the Office of Exemption Determinations (in charge of the PTE 84-24). We were joined by Assistant Secretary Phyllis Borzi.

The meeting went an unprecedented 95 minutes during which we shared relevant, and (as they noted) often new, information about the annuity marketplace, retirement savers and typical annuity buyers. In turn, we listened to the DOL’s thought process and intentions behind the Rule. They frequently expressed their desire to listen and learn so they could “get it right” for consumers.

Americans for Annuity Protection (AAP) would like to share what we learned and, more importantly, to consider what we think it means.

Click below for the full article!

http://insurancenewsnet.com/oarticle/2015/07/30/americans-for-annuity-protection-meets-with-dol.html

“Throw Back Thursday” is a tradition of sorts for all of you who Facebook, tweet and Instagram. For my blog- it is an opportunity to republish some great articles from the early days of our blog- when the only followers were my mom and my wife. Now, with over 500 followers it makes sense to “throw back” some good ideas from the early days. This was published in October of 2012. Thanks for all of your comments and support.

RUBBER STAMP THE DEAL

When we do our training sessions, we stress the importance of Annual Client Reviews. We often say it is 10 times harder to find a new client than it is to keep a current client happy. With that in mind a great sales idea that works is creating a “reminder stamp.” The stamp, which you use on delivery of the policy says in bold letters –

MUST BE REVIEWED ON AN ANNUAL BASIS –

CALL OUR OFFICE FOR APPOINTMENT

After you review the policy with the client, remind them how important the annual review is…and then seal the deal by pulling out your stamp. Stamp the cover of the policy and write your phone number underneath the stamp. You will be amazed how many of your clients will remember what you said just because of that stamp.

“Do you feel that you pay too much in taxes?”

Most of our reps address the issue of taxes with their clients. If you aren’t then we need to talk. We have some excellent programs and training to teach you how to d o this. But those of you who do discuss taxes with your clients know that none of our clients would answer the above question with a “NO” answer. All of our clients feel they pay too much in taxes. But what about you? Do you pay too much in taxes? If you answer yes then here is an idea for you- add your spouse to the payroll.

Does your business need a trustworthy and reliable employee? Who could be more trustworthy than your spouse? If you make him/her an official employee you can take advantage of several tax benefits to help reduce your taxes.

• Build up tax-favored funds for retirement – If you meet the tax law requirements, your business can deduct contributions made to a qualified plan. If you add your spouse to the payroll this deduction can be used for her as well. The annual limits are quite generous. For a defined contribution plan, you can deduct up to 25% of compensation or $53,000, whichever is less.
• Get more tax mileage from business trips – Generally, you can’t deduct the travel expenses attributable to your spouse if he or she goes with you on a business excursion. However, if your wife is a bona fide company employee, and goes for a valid business reason, you may deduct her travel costs.
• Cure health insurance coverage issues If you are like us, your health plan most likely covers more for the employee than it does for the spouse. Therefore, if you hire your spouse it would shift that extra cost from you to the business. Typically your company can deduct your spouse’s full health insurance cost.

WHAT IS IT? 

The NAIC has established new guidelines for indexed universal life insurance (IUL) carriers related to:

1. The way each carrier determines their “Max Illustrated Rate” for IUL illustrations.
2. The way each carrier sets their illustrated loan interest spread for cash flow scenarios within IUL illustrations.
3. Disclosure requirements for illustrations reflecting the non-guaranteed nature and variability of the credited interest rate.

 WHEN DOES AG 49 TAKE EFFECT?

The changes to the way maximum illustrated rates are determined take effect on September 1, 2015. Changes to illustrations of cash flow scenarios and the additional disclosure requirements take effect on March 1, 2016.

HOW DOES IT IMPACT YOUR BUSINESS?

These guidelines are intended to bring more consistency in illustrated rates and increase the client’s understanding of their IUL policy.

As a producer you will not experience much change due to the “Max Illustrated Rate” guideline. With most carriers, the long-standing approach toward illustrated rates aligns well with the new guidelines and the new illustrated rates will not be significantly different from today’s.

The changes to illustrations for cash flow scenarios will affect how you see the potential “spread” between the interest crediting rate and the loan interest rate on the illustration when using the variable loan rate option. This spread will be limited to 100 bps for all carriers. The additional disclosures will provide a second set of non-guaranteed policy value projections and an exhibit of year-by-year variability in credited interest rates that may be anticipated within the policy.

WHERE CAN YOU LEARN MORE?

We will post updates to this blog with transition guidelines and additional information you may find helpful closer to the implementation dates.

To Whom it May Concern:

This is to certify that on this date, July 20th, 2015, I was presented the idea and concept of how Long Term Care issues might affect me in the future. I was made fully aware of the financial risk to my portfolio, to my retirement income and to my family. I was offered several possible solutions to the potential risk including but not limited too:

•  Long Term Care Insurance
• Hybrid Life Plans that cover Long Term Care
• Hybrid Annuity Plans that cover Long Term Care

At this time I have decided not to move forward with any of the options presented to me.

This letter and my decision not to move forward will serve as my release of my advisor from any liability for this decision.

Respectfully,

______________________                   ______________

(signature)                                           (date)

That is right. Four words. Experts say that just four words can change your practice and help you gain the trust and confidence of your clients. Those four words…

“What do you think?”

By asking one question – “what do you think?” – you let people know that you value their input, respect their opinion and have an open mind toward solving problems. Clients know that you are knowledgable, but asking for their input helps form a valuable bond that leads to a more satisfying relationship.

What do you think?

The world is always changing and the insurance world is no different from the rest of the world.  I can remember when I sent my first email and I must admit I had no sense that someday it would replace the regular US Postal mail that I was accustomed to. The same is now true of marketing. Email marketing is now a vital part of any reps business plan and has easily replaced the US Postal service. More efficient, more cost effective…but how can we also make it more effective?

LOWER COST and WIDER TARGETING

It usually comes down to the list. If your list is reliable and if your means of delivery is reliable (your emails are actually delivered) – email marketing can be a tremendously efficient resource for lead generation and a cost-effective way to promote. While there are costs involved in email marketing, your delivery costs are significantly less than what you might spend on direct mail. For this reason the cost per contact is much cheaper and you can target a wider scope of potential clients.

DEEPER CONNECTION

With emails you can incorporate “hyperlinks” so that with a click of the mouse a client can go from reading your message to your website or video. They may peruse your website, subscribe to your blog or even think to call you for an appointment. In this way, email marketing makes it possible for clients to get to know you in a more efficient way.

TRACKING

Perhaps the greatest asset of email marketing is the analytics or tracking feature. With analytics, you can gauge the effectiveness of your campaign by monitoring the results. How many have opened the email? How many have “clicked through” to the hyperlink? How many have forwarded the email to someone else? This info is vital to the design of the next email and the next campaign and puts email marketing way ahead of the direct mail approach.

If you are not incorporating email marketing into your overall business model then you could be missing out on some valuable opportunities. If you need help in this project, we are here to provide the resources you need to get started. It is well worth the effort and can pay off immensely in terms of growing your client base. Let us know how we can help.

If you are in the Long Term Care business then you know how tough the market place is right now. Carriers are pulling out- rates are increasing and clients are turning more and more to the hybrid life policies as a solution to their Long Term Care needs. But for those of us who know the value of a traditional Long Term Care policy- there is still hope and a market for the solution it provides.

First, you must understand that nothing provides coverage as well as a Long Term Care policy. If your client does need care, and the odds are that they will- then a Long Term Care policy is the best investment that they can make. Sometimes opportunities for growing your business are closer than you think. With a keen eye on your existing individual client list, you may be able to find an excellent network into multi-life sales.Here’s five key triggers to look for to turn one contact into a high potential multi-life prospect:

1. Clients who own a business that might be looking for meaningful benefits to offer employees.
2. Clients who hold a high-level position or have influence in the decision process at their workplace.
3. Clients who hold a professional occupation such as attorney, physician, CPA,real estate agent, etc.
4. Clients who would benefit from the unique tax incentives if LTCi were purchased using company dollars
5. Clients who could benefit from significant multi-life discounts and possible underwriting concessions.

As you already have an established relationship with these prospects, it’s easier to expand this existing business association than to make cold calls to businesses you don’t know. Companies continue to look for ways to reward employees, and Long Term Care insurance is a welcome benefit that can help build loyalty and improve job satisfaction. Which clients can you help to make LTCi available at their workplace?