My "Bersonal" View

John Sestina is a noted financial author and columnist. He runs a very successful financial planning firm in Columbus, OH. For years I have been listening to his podcasts and reading his articles. The best nugget I got from him is this – Keep it simple! John rails against the use of “brokerese” or financial jargon as he feels that people (clients) are fed up with being talked around, talked down to and confused. If you are not speaking a language your clients understand, they will find a broker or advisor who will.

“I hear these ads selling vocabulary development programs that promise to help you develop a Harvard vocabulary. Well, I don’t want a Harvard vocabulary – I’m not even sure I want an Ohio State vocabulary. I want to speak a language every one of my clients understands!”  John Sestina

In our training we talk about a lot of complex topics and strategies. But our focus is how to best relay this information to your clients. We keep it simple. In fact, if we can’t write it on a “yellow-pad” we don’t feel it is simple enough. Get rid of the jargon and the “brokerese” in your presentations and you will find success.

“The Challenger Sale” by Mathew Dixon and Brent Adamson has been proclaimed as “the most important advance in selling in many years.” After just going through the training and after reading the book several times I am finally of the belief that yes…challengers can be made if we understand the ideas that inspired the book. Putting it simply, the Challenger Idea is very similar to the training we have been conducting for years here at ISN – the challenger knows how to take control of the client conversation, and by doing so can help clients make better decisions.

In their book, Dixon and Adamson have done extensive research on sales professionals and breaks them down into 5 different types:

• The Hard Worker – Always willing to go the extra mile; Doesn’t give up easily; self motivated; interested in feedback and development
• The Relationship Builder – Builds strong advocates in organizations; generous in giving time to others; gets along with everyone
• The Lone Wolf – Follows own instincts; self-assured; independent
• The Problem Solver – Reliably responds to internal and external stakeholders; ensures that all problems are solved; detail oriented

It is the fifth type – The Challenger as Dixon and Adamson call them that their research shows is the most successful –

• The Challenger – Always has a different view of the world; understand’s the client’s business; loves to debate; asks the right questions and waits for the answers.

Here are some good examples of questions that can help control the conversation. Try some of these out and see if you can rise to the Challenge!

challenge customer assumptions by introducing new conditions:

“Based on these unique circumstances, what would need to change to…”

paraphrase to drive to your desired outcome:

“It sounds like you are saying…”  “Am I correct in assuming that…”

allow customers to do most of the talking:

“I see your point, but how does that apply to us?”

The Challenger is a unique individual. He has mastered the art of questioning to control the conversation. He can reframe the customers view in a way that leads them toward our solution. The reps who come to our training can learn this technique and develop better relationships and derive more success in their practice. Call us today to ask about our next training.

I have been on LinkedIn now for almost 3 years. I was a reluctant convert but once I got in I went in with everything I had. At first I was slightly puzzled about how to use LinkedIn to my advantage. But slowly I began to understand how and what can work in our industry. Here are some tips to use with LinkedIn to make an impact.

1. Have a clear purpose – Most people begin LinkedIn without a real strategy. This was my initial experience. Don’t make that mistake. And if you already have a presence now is the time to decide on what you want from LinkedIn. Do you want to expand your network inside our industry? Are you looking for opportunities? Mentors? The more you focus the better luck you will have.
2. Have a Professional Profile – This means taking a hard look at the image you are presenting. Get away from the “job hunting” type of profile and focus more on what you are doing now and what you can do in the future. First impressions are everything so be sure to have a professional photo – no photo means you are not serious about LinkedIn…get a photo.
3. Use your network Just because you have a lot of connections does not mean you are done with LinkedIn. Every week, identify five connections and send them a brief invitation to catch up by phone. Look for ways you can help them professionally. And, when you accept someone’s LinkedIn invite, scan their profile and suggest ways you can help them. Keep it simple. If an idea does not occur right away…move on.

Charitable giving programs can be funded in a number of ways, but none offer the unique advantages and the flexibility of life insurance. Typically, the amount of the policies death benefit is many times the total premium resulting in “leveraged” dollars. Rather than making annual donations to help fund their charities missions, it’s possible to leave amounts large enough to make a serious impact in the planning goals of the chosen charity.

We can help you research and implement a Charitable strategy. There are many different ideas to consider. Here is a list of simple techniques using life insurance in charitable giving:

• Buy a new policy for the charity and make gifts so it can pay the premiums This can provide a very large gift in proportion to the amount gifted to the charity. The gift to pay the premiums should be tax-deductible as long as there are “no strings” attached to the gifts.
• Buy life insurance to replace the value of an asset donated to charity – Donating highly appreciated assets to charity can provide income and estate tax benefits, but can reduce the amount left to heirs. To overcome this, the value of the donated asset can be replaced with life insurance so the heirs can receive the inheritance income tax-free. If the policy is purchased inside a Wealth Replacement Trust, the death benefit can also be estate tax-free.
• Buy life insurance to back a future donation to a charity – Pledging a large amount to a charity can mean a lot to the charity and the donor. An efficient way to ensure payment of a future donation or pledge is by purchasing life insurance and naming the charity as the beneficiary. Life insurance provides a low-cost way to provide a large benefit to a charity. As the pledge gets paid off the charity can be left as beneficiary of the entire policy, or a portion can be redirected to the heirs or another charity.
• Gifting insurance policy dividends to a charity – With an older dividend-paying whole life policy this strategy is easy to implement. All that is necessary is to contact the insurance company and request the dividends to be paid in cash, and then donate the dividend to the charity. These gifts can be deducible up to 50 percent of their gross adjusted income.
• Change the current beneficiary to a charity – This is also easily accomplished. A favorite charity is named the beneficiary for either all or a portion of the policy proceeds. The ownership does not change and the beneficiary designation is revocable at any time. There is no income tax deduction for premiums paid but it does qualify for a full charitable deduction for estate tax purposes.

A good rule of thumb is that you are least impressive when you are trying hardest to impress. Rather than talking about strategy,positioning and marketing, think about what you’d say if you were sitting across the table from your best friend. You’d be a lot more comfortable and less nervous, right? You’d ask how they’re doing and you’d really care to know. You’d drop the business speak. You’d be clear. And you’d help solve problems.

In our daily discussions with Reps we often get asked about LTCi policies and partnership programs. Owning a partnership-qualified LTCi policy is a good way for people to protect a portion of their retirement assets while providing a Medicaid safety net in case they need on-going care.

What is a partnership?

Long-term care partnership programs are alliances between the states and private insurance companies. These programs are specifically designed to encourage people who otherwise might plan to rely on Medicaid for their long-term care needs to purchase long-term care policies.

Owning a partnership qualified policy entitles people who deplete the policy benefits to retain specific amount of assets on a dollar-for-dollar basis and still qualify for Medicaid, provided they meet all other Medicaid eligibility requirements. For example, if yu own an LTCi qualified plan with a $250,000 policy limit, you can protect $250,000 in assets from the required Medicaid spend down.

What makes a LTCi  policy partnership qualified?

A LTCi policy must meet certain requirements in order to be partnership qualified. First it must be a tax-qualified plan. Second, it must meet inflation protection guidelines as specified by the Deficit Reduction Act of 2005 (DRA). The requirements varies by age. For example, if you are under age 61 compound inflation protection is required. If you are age 61 to 76, some level of inflation protection is required. And if you are over age 76 then inflation protection is optional.

Each state has the right to determine the inflation percentages for partnership-qualified LTCi. Some states have reduced the inflation protection minimum to 1 percent. This can give the client some flexibility in planning for benefits and cost. We can help you find your state specific percentage requirements simply by calling our offices.

Also, it is important that you have your partnership training up-to-date as well. Our licensing team can let you know where you stand and help you find the resources to get the proper training if you need it.

Having the ability to offer a partnership-qualified policy has its benefits. It gives your clients a safety net should they need to apply for Medicaid. And it helps you overcome objections, ease your clients fears and assure them they are making a smart decision. Call us today  and we can provide this important financial planning solution to your clients.

For any of you who have been to our “Transition Training” or to our “Raise the Bar” training you know that we talk mostly about how questions can be the answer to your success. Thomas Freese is the guru who has had the most success with the Question Based Approach. Here is a guest article from his most recent news letter.

How to Succeed in Sales  By: Thomas A. Freese

To succeed in most anything, you must first pay your dues. Olympic athletes don’t just show up in a host city once every four years in order to get some exercise. Instead, these legends in sport invest countless hours of preparation and study before the starting gun goes off. Ultimately, you can be sure that whoever takes home the gold medal has paid their dues well in advance.

I didn’t really know much about selling when I first started, but they were willing to “train” me and I was willing to learn. Lo and behold, I finished my first full year on commission at a whopping 45% of my sales quota; which I actually thought was good. I was glad to be above zero, to be honest. My sales manager didn’t share the same opinion. Still,  I hung in there year after year and I busted my butt to make the grade, but I didn’t achieve my quota a single time in my first five years in sales.

Finally, I figured out how to sell lots of stuff and as a result, I finished seven consecutive years above my sales quota. From there, a chain of more than coincidental events caused me to sit down and start writing my first book. What did I know about writing books? Nothing–I just started putting words on paper–another place where sheer determination and desire kept me going. Nobody paid me a cent for rewriting the book five times over three years, or for the nine times (count ’em) we went back and forth with the editor before Secrets of Question Based Selling was eventually published. It was all on my dime, a significant investment that involved a tremendous investment in time, effort, and personal sacrifice.

As it turns out, my commitment to making sure QBS would exceed client expectations has paid off many times over, mostly because I was willing to pay my dues in advance. It’s simple really: all you have to do to be successful in sales is be willing to put in the time and effort necessary to “out-work” the rest of the pack. Think about it this way. Somebody is going to succeed in the next account; it might as well be you.

So, let me get back to the question about how your going to reach your sales goals? Let me ask: how many articles have you read about your industry in the last 90 days? Great! Now double that number in the next 90 days. Make it a passion to become an expert on your customer’s world. Sure, you could just try to be empathetic and walk a mile in their shoes. But, if you are committed to paying your dues upfront, then I would keep walking until you’ve lapped the field and there’s a perceptible difference between talking with you and your competitors.

Along the same lines, don’t wait for someone else in the corporate marketing department to create a more compelling presentation at some point down the road. Use your newfound expertise, be creative, and develop your own positioning strategies that are more impactful than the customer has ever seen. Also, take the time to learn how to work the white board and how to visually explain how your product will impact their business more than other options in the marketplace.

Trust me. If you are willing to go above and beyond and put in extra effort even when you are not being directly compensated, two things will happen:

a.) First, you will never (ever) have to worry about money again.

b.) Second, your services will be in high demand, such that you will never again have to worry about landing a top job.

At the end of the day, success is a choice, not some kind of lottery system. So, what if you choose to take all the resources you could otherwise spend hoping to win the human lottery and instead invested heavily in your own skills? I can tell you right now that those people who are willing to turn off the television, unplug your video games, and maybe even skip a few bowling nights, will find that the odds will suddenly become heavily stacked in your favor.

Although this article was written with the sincere intention of encouraging you to become part of the solution, at the end of the day, the ball is ultimately in your court. The difference between the level of success you desire and wherever you currently are is, in fact, you. The good news is, there’s no need to reinvent the wheel. The QBS Methodology has already been created for you. All you need to do is be willing to step outside the box of traditional thinking and put a series of proven and strategic question-based techniques into practice. From there the formula for success is relatively simple: If you are indeed willing to invest in yourself, in a similar way that I invested in myself when I created QBS, then as the late Zig Ziglar would have said, “I’ll see you at the top.” Let me know how I can help.

The Reversionary Annuity

In recent weeks we have seen an increase in awareness and production of a very unique product called the  “reversionary annuity.” In my explanation I have called the product a life insurance product that becomes an immediate annuity at claim time.  It provides the client/beneficiary with the best attributes of a Term Insurance Policy (lower cost and greater affordability); The best attributes of a Permanent Insurance Policy (cannot outlive the coverage); The best attributes of an Annuity (because of the security of a lifetime income stream).

What is it?

It’s a new product concept, a life insurance policy conditioned on the survival of the beneficiary beyond the life of the insured and payable to the beneficiary at a pre-arranged amount per month/year as long as the beneficiary is alive. More simply, it is a life insurance product that pays out a lifetime income stream to the beneficiary on the death of the insured.

What are its advantages?

It offers a viable alternative to traditional forms of insurance.  The program offers a much larger benefit for the same premium dollar (in the form of monthly income).  The reduction in premium outlay versus other traditional life insurance can be significant (unequaled affordability).

A reversionary annuity is a life insurance policy that provides a monthly income to the beneficiary on the death of the insured.

How does it work?

The Reversionary Annuity is designed to be a cost efficient provider of guaranteed lifetime income to a beneficiary.  The prospect for this unique life insurance product will be someone with a need to provide a guaranteed lifetime income benefit to a specific beneficiary.  Often this is a family member, a spouse, a parent, or a child.  In other situations it may be a business associate or an ex-spouse.  The Reversionary Annuity should be seriously considered in any situation where there is a need for a guaranteed income. Perhaps the best use of the product is when a pension option must be considered. Often referred to as “Pension Max” the Reversionary Annuity offers a great solution in most of these cases and should be considered as an option when making the decision.

Both the insured and the beneficiary apply for and are underwritten for the policy.  The premium is determined by the relative age and health status of  both the insured and the beneficiary.  The more medically impaired the insured the higher the premium, the more medically impaired the beneficiary the lower the premium.

Once the policy is in force, The lifetime income benefit cannot be changed.  The beneficiary is irrevocable and must outlive the insured in order for the lifetime income benefit to be paid.  Should the beneficiary predecease the insured the policy will terminate without value.  It does not have a face value and the lifetime income benefit cannot be commuted.

A Return of Premium Rider is available for policies with beneficiaries who are age 80 or younger and who are issued standard through table 12.  This rider provides that, should the beneficiary predecease the insured, all premiums paid into the policy will be returned to the insured over a comparable time period, frequency and amount as the premiums were paid.  If the insured dies before all premium payments have been returned, rider benefits cease.

In our experience the Reversionary Annuity idea can be a great asset for Reps to have in their tool box. It solves a definite need but more importantly than that it is a product that most reps are unfamiliar with. You can get an edge by learning about this concept and product and using it to engage clients in meaningful dialogue. Call us for the latest info and updates. We are here to help.

Most of us are very knowledgeable about our business. Because of that when we meet a prospect or client we like to tell them what we know. However, at the very beginning of a presentation to a client it is a mistake for us to assume that since the client is there to learn from us that it is ok to just begin a presentation. Most often this can get the appointment off on the wrong foot.

The idea of jumping right into features and benefits is a common error that many of us make. Just because we have a great story to tell does not mean we should be telling it. In our “Transition Training” program we talk about using questions as the foundation of your practice. this applies to a beginning of an appointment as well as to the end.

Next time you are face-to-face with a client, before you begin, pause and ask a question. The question I like to use at the beginning is simple and to the point. Usually I say something like:

“Mr. Client, I have several ideas I want to discuss with you, but before I begin let me ask you…what would you like to accomplish in this meeting?”

In my experience, this type of opening usually gives the client confidence that you are there to help. Most often, the client will tell you exactly what you need to know to help them and with more questions you can not only accomplish what you set out to do but also give the client what they wanted as well. Any questions?