Help clients enjoy the “suite life”!
3RD QUARTER 2012
(See page 6)
800.710.1115
www.greatplainsannuity.com
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“One Size Fits All” Retirement Income Solutions Don’t Suit Most Prospects... can help you research the industry’s leading annuity, life insurance and income rider solutions in a matter of minutes, reduce your planning, case development and suitability headaches. Instead of cramming your prospect’s unique financial objectives into a “one product” answer, show them your custom-built plan tailored to meet their personal needs and desires today, tomorrow and as a legacy for their loved ones.
IncomePLUS helps you do a better job of understanding the client’s total financial picture. This leads you to the opportunity in offering better financial solutions for reliable lifetime income, health and legacy issues.
Working with your GPALM Annuity Specialist and using our IncomePLUS client presentation, you can provide them with retirement income solutions designed to their specific situation and needs. We
Find out how we are helping producers help their clients and close more sales. Speak with a GPALM Annuity Specialist today.
800.710.1115
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JUST the FACTS | 3RD QUARTER 2012
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INSIDE 6
HELP YOUR CLIENTS’ ENJOY THE RETIREMENT SUITE LIFE!
Today’s rate environment is making annuity sales increasingly difficult. Throw heightened suitability/compliance review into the mix and you can feel like the battle to get the sale done is fought on two fronts: your client and the insurance carrier. Turn one of those battles into an alliance with prospects eager to buy from you using the power of IncomePLUS!
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QUELL CLIENT CONCERNS WITH R.O.P. BENEFITS
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HIDDEN AGENDAS: A DISSERVICE TO AGENTS AND THEIR CLIENTS
The Return of Premium benefit found in several fixed annuity offerings can offer clients and prospects peace of mind in today’s low interest rate environment. Here’s a look at why you might consider these products for clients concerned about liquidity.
Agents and advisors have enough on their plates with the current low interest rate environment and evolving regulatory framework – what should you expect from your Marketing Organization relationships?
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WHAT’S HOT AT GPALM?
A quick summary of news, information and ideas to help you write more business...
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LEAD PROGRAMS
3RD QUARTER 2012
PRINCIPALS • Rich Hellerich • Robb Edwards
ANNUITY MARKETING • Brad Allen • Brian Dixon • Carlos Rojas • Cindy Nelson • Jane Plumberg • Kara Jones • Scott Andrew
LIFE MARKETING • Dick Reynolds, CLU • Jeff Bregovy
ADMINISTRATION • Cris Larson • Gina Skiles • Kathy Putnam • Mackenzie Oakley • Naomi Mayekawa
Beware of retirement income benefit presentations to clients that rely on projections rather than guarantees. Your GPALM Annuity Specialist can help you find the best solutions to meet your client’s specific situation, and real income benefits that will be there when needed. Take advantage of the income planning tools available at Great Plains!
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SEMINAR EFFICIENCY
What are your current prospecting methods costing you beyond dollars and cents? Are your relationships at home suffering? Seminar Guru Kim Magdalein looks at the efficiency and sales potential of seminar marketing.
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LIFE INSURANCE
Here are some thoughts regarding the current state of the life insurance marketplace, and sales opportunities you may need to consider.
JUST the FACTS | 3RD QUARTER 2012
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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 JUST the FACTS is published quarterly for the benefit of independent insurance agents and brokers contracted with Great Plains Annuity & Life Marketing. Great Plains assumes no responsibility for the professional training or continuing education of agents. This publication is for agent use only, and not to be used to solicit sales from the general public. Products noted may not be available in all states. Great Plains does not offer tax, investment or legal advice. While every effort is made to confirm accuracy, published rate and product information is subject to change. Material herein may not be reproduced in any form without permission.
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JUST the FACTS
THE NEXT BIG BUBBLE? We’ve had several interesting case situations over the past month that ultimately focused on consumer perceptions regarding bonds and annuities. Because we all are experiencing the harsh realities of this “new economy”, and because we believe seniors are more concerned than ever when it comes to protecting their retirement savings, this is an important issue. In the course of my financial services career, I spent eight years as a bond trader. I believe that experience gives me a solid grasp of the traditional appeal of bonds to seniors concerned about risk to their retirement or “safe” money assets. I’m going to assume that you understand the inverse relationship between bond values and interest rates. Bonds can be great investments. Many times they offer the most attractive rates of the fixed income class of investments, and offer an additional chance for safety with the right companies and municipalities. In addition, bonds from local, state, and even federal governments may offer tax advantages as well. A bond pays a fixed interest rate at a regular interval. They can be insured for a little extra safety or even backed by the government by way to taxing ability just in case the individual municipal entity has trouble repaying. The downside is that municipalities do default on bonds. It is rare but it does happen. Google “Stockton Mammoth Lakes San Bernardino CA bonds” and follow the links. If you are invested here you probably won’t lose your principal, but losing interest is possible. If these municipalities have to raise taxes to pay you back that could take time as well. How does this compare to fixed indexed annuities?
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Rich Hellerich Principal
Given our current low rate environment and volatile economy consider the following: • Investors still perceive risk in stocks but not bonds. (In June, US stock funds had outflows of $8.5 billion, versus $10.8 billion in inflows to taxable-bond funds). • Bernanke has said the Federal Reserve will keep interest rates low until 2014 – will he? Who knows? • If rates do start to climb (our hope for annuities), the next big bubble could well be in bond funds. We live in a world of frequent political and economic tremors that have a great effect on consumer behavior, especially when it comes to the consumer’s financial future. That makes your understanding and knowledge of this issue more important than ever. For producers that are securities licensed – are your clients asking for safety in bond funds? – do they understand the risks? Are annuities a viable and suitable solution? For producers that are not securities licensed – are your clients talking to another advisor about bond funds? There’s much discussion of the $6 trillion sitting on the sidelines – where is that money going to go? I believe the decision rests with the consumer. That said, we’d love the opportunity to help you educate your clients by presenting the benefits and features of fixed and fixed indexed annuities so they make an appropriate and informed purchasing decision. If you are interested in receiving a more detailed commentary including supporting articles, information and details on this topic, contact your GPALM Annuity Specialist.
JUST the FACTS | 3RD QUARTER 2012
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Open the door to high-net-worth prospects with After Market Assignments! Open the door to high-net-worth prospects offering guaranteed future payments from highly rated insurance carriers at significantly higher rates than available in today’s low interest crediting environment. After-Market Assignments are priced to yield 5.00%-6.50% or more guaranteed all years, regardless of duration. Contact your GPALM Annuity Specialist for details!
te the Facilita r your se fo purcha urchase rp client o account! n your ow
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 3RD QUARTER 2012
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PAGE 5
7/30/2012 9:29:50 AM
Welcome to the “Suite” Life! How Great Plains IncomePLUS Suite is changing the Annuity Sales Landscape
Every annuity sales person knows that today’s rate environment is making sales increasingly difficult. Add to this the heightened suitability/compliance scrutiny and it can feel like you are fighting a battle on two fronts: your client and the insurance carrier. As any general will tell you, fighting a battle on two fronts is not a wise move, just ask the Germans from World War II. So how do you avoid this situation? The best answer is to turn one of those battles into an alliance. The easiest way to do this is to have your clients begging to buy from you. This is the power of IncomePLUS! IncomePLUS is a suite of tools available to Great Plains producers that enhance the sales presentation by showing them how you are working to provide the best PAGE 6
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solution for their needs. These were designed with you and your clients in mind. They are easy to understand and open up the conversation to discuss a majority, if not all, of your client’s assets. The most popular presentation with our producers is our Income Rider Comparison Worksheet. When income riders first hit the street on Fixed Indexed Annuities, they were fairly simple. Each of them had similar withdrawal rate age bands, basically increasing every 5 or 10 years. This meant that comparing income riders was as simple as comparing their rollup rates. For example, if your client was 60 and wanting to start income at age 70, and all of the income riders had a withdrawal rate of 6%, then you as the trusted advisor instinctually knew that a rollup rate of 7% was
going to produce a greater income than a rollup rate of 6%. However, as time progressed and carriers started competing with one another for business, the income riders became more and more complex. Withdrawal rates started increasing by 0.10% every year, rollup rates went from compounded to a higher simple rate, and some even gave you an extra boost on the withdrawal rate if your client held the contract for at least 5 or 10 years. This made it exponentially more difficult to be able to determine which income rider was perfect for your client’s specific situation and goals. The first alternative was to run income rider quotes with 10 different carriers, compare them and present only the first or second best income. (Continued on page 8)
JUST the FACTS | 3RD QUARTER 2012
7/30/2012 9:30:22 AM
Great Plains Olympic Challenge Agent Bonus In the spirit of the 2012 Summer Olympics and introduction of the hottest asset-based Chronic Care annuity product available, Great Plains and The AltiSure Group are pleased to announce our Olympic Challenge Agent Bonus. PAID PREMIUM / QUALIFICATION LEVEL PAID PREMIUM ON THE TEAM BRONZE MEDALIST SILVER MEDALIST GOLD MEDALIST
BONUS ALTISURE BONUS
GPALM BONUS
TOTAL BONUS
$500
DNQ
$500
$250,000 to $499,999 $500,000 to $749,999 $750,000 to $999,999
$1,500
PLUS
$3,000
PLUS
$1,000,000 +
$5,000
PLUS
$2,500 to $3,749 $3,750 to $4,999 $5,000
EQUALS EQUALS EQUALS
$4,000 to $5,249 $6,750 to $7,999 $10,000
Applies to all Protected Solutions Annuity policies issued and paid through September 30th, 2012.
Pick up the torch and go for the gold!
800.710.1115
www.greatplainsannuity.com Bonus program applies only to The Protected Solutions Annuity. Bonus checks will be sent to qualifiers on or about November 15th, 2012 directly from The AltiSure Group. Qualifiers must be in good standing with The AltiSure Group and The Phoenix Companies on November 15th, 2012, and must complete the AltiSure Group Bonus Agreement (if they have not previously done so). Qualification is at the sole discretion of The AltiSure Group. Bonus program applies only to writing agents at the Producer A compensation level or below. The AltiSure Group and Phoenix are not affiliated.
JUST the FACTS | 3RD QUARTER 2012
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PAGE 7
7/30/2012 9:30:48 AM
Welcome to the “Suite” Life! (Continued from page 6) This was very time consuming, and tended to make even the savviest of client’s dizzy reviewing all of the numbers. That is why we developed the Income Rider Comparison. This tool takes all of these different factors from 17 different income riders with 13 different carriers, calculates the income anywhere from immediate income all the way out to 20 years of deferral, places them side by side in a one page presentation, and highlights the first and second best income for each year of deferral. We have taken the guesswork out of which income rider to choose and turned the conversation with your client from a “trust me, this is the best” to “let me show you your best options”. The secondary benefit to this presentation is that it opens up the discussion with your client to other aspects of planning not foreseen when this tool was created. One of my producers shared a story with me after taking an Income Rider Comparison to an appointment. The client was 55 years old, single, and had about $250,000 in an old 401(k). He was currently working, contributing to his current 401(k), and looking to retire around age 65. He had determined that he would need about $1,500 per month in retirement to cover his needs. Using the Income Rider Comparison, the producer showed the client that the $250,000 would generate a little over $27,000 per year, or about $2,250 per month. This opened up the conversation with the client to discuss his option receive this additional income, or reduce the premium to cover just the $1,500 per month and use
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the rest of the money for other needs. The client decided that he would put in just enough premium to cover the $1,500 per month and use the rest of the money to cover chronic care needs (which we will cover later) that may arise in the future and also fund a life insurance policy for his kids. The producer didn’t have to sell the client the annuity, the client chose to buy the annuity because he saw that he was able to accomplish his needs and start planning for the unknown.
your client’s income needs for retirement, we need to look at covering them in case a health emergency arises. Long Term Care insurance has always been one of the best ways to protect your clients from the rising costs of nursing home stays. However, it can be difficult to sell a client on paying for a benefit that they feel they may never need or use, especially when premium costs can represent a significant portion of their retirement income. Fortunately, the carriers have
This also works in the reverse. Let’s say the client we just spoke about only had $150,000, but still needed the $1,500 per month in retirement. Using the Income Rider Comparison, the producer would be able to show the client that age 65 the income generated off of the annuity would not be enough to cover his expenses. This opens up the conversation to a couple of different options for the client. The Income Rider Comparison would show the client that if he works for just 2 more years, this annuity would cover those expenses. The other option would be to see how much money the client could put into his 401(k) to cover the shortfall if he still chose to retire at 65. Again, the client is able to make an informed decision rather than be sold by the producer. Now that we have taken care of
brought out hybrid annuities that offer alternative solutions to help to cover these costs. But just like the income riders discussed earlier, how do you, as the trusted advisor, determine the best Chronic Care rider to help your clients to selfinsure themselves and leave the money to their beneficiaries in the event that they don’t need this money. Great Plains has added a new feature to the IncomePLUS Suite. Our new Chronic Care Rider Comparison worksheet compares the different riders available in the market place to show your client which rider will provide the greatest benefit when your client cannot perform two activities of daily living. These benefits range from a 5 year payout (such as the new Phoenix Protected Solutions)
JUST the FACTS |3RD QUARTER 2012
7/30/2012 9:30:22 AM
to a lifetime benefit. This tool will open up the conversation to let the client decide which product best suits their needs. Do they have a history of longevity in their family? Then the lifetime benefit may be the best option. Are they more concerned about maximizing their benefit for a limited period of time? Then choosing a 5 year payout may be the choice for them. Or maybe it is a combination of both, where they use a portion of their assets to trigger a 5 year benefit with the remainder going to provide a lifetime benefit in case they live too long. All of these options are laid out in front of your client in a one page, easy to understand presentation that allows them to choose the solution that is best for them. Let’s assume your client has chosen the income rider they want to use and has decided that purchasing a chronic care rider to protect them in case of a life changing condition. However, they have still not been shown how these products to work together. IncomePLUS is the original tool in the suite and was designed to show
a comprehensive overview of how different annuities work together to provide retirement income. This has now been enhanced to include secondary protections offered by the chronic care riders. IncomePLUS was developed with feedback from producers and
clients over the past 5 years to make it easy to understand while still illustrating the overall plan. Each presentation is unique to your client and their specific needs and goals. It is flexible to account for different requests by your client and to work around other factors not normally considered in an annuity laddering presentation. For example, you have a client who is 62 and is thinking of retiring. If they take their social security benefit today, it will provide $1,500 per month. If they wait until age 67, they will receive $2,100 per month, a significant difference. How do we structure IncomePLUS to allow your client to retire today, but still take advantage of the higher social security income at age 67? One solution would be to purchase a SPIA to cover the gap between age 62 and 67 that levels off the income and use the rest of their retirement savings to provide inflationary adjustments or luxury income for your client. You have another client who is 65, retired and looking to enjoy their retirement by travelling and doing activities that they couldn’t do
while they were working. However, they are concerned that as they get older they will not be able to enjoy these activities. You can provide them a solution using IncomePLUS to provide a greater income while they are young enough to enjoy it, and then lower the income in later
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years to provide the quality of life that they desire. All of these scenarios illustrate your client is choosing to buy these solutions, not you having to “sell” them a product. The IncomePLUS Suite has been successfully informing and educating clients on how they can make their retirement assets work for them, and positions you as the trusted advisor with the tools to provide these solutions. A direct result of this is your clients depend on you as their needs and situation changes, and request you handle more of their retirement planning. They also become your biggest cheerleader, providing you a steady stream of referrals of their friends, all who are asking you to help them the way you helped your clients. Learn how you can take advantage of our IncomePLUS Suite by calling your Great Plains Annuity Specialist today. Let us help you better serve your clients and prospects with this unique tool!
Brad Allen Annuity Marketing Consultant brad@gpam.biz PAGE 9
7/30/2012 9:30:23 AM
The time could be just right for advisors to start presenting products with a Return of Premium provision. Such annuities will return a client’s entire premium, less withdrawals, at any point in time. Now policyholders can enjoy all the great benefits fixed index annuities have to offer without the preoccupation with the unknowns in today’s economy. Protection of principal is a great talking point with many consumers whose savings took a hit during the economic downturn.
Many agents tell me selling annuities in today’s market is increasingly challenging. The low interest rate environment of these past few years has presented challenges to even the most seasoned agents. One of the biggest roadblocks is no one really knows how much longer low interest rates will prevail. What this means for agents, now more than ever, is clients and prospects reluctant to put money into financial products offering modest returns and limited liquidity. What if market conditions (and interest rates) improve sooner rather than later? While the fixed annuity’s saving grace, “protection of principal” remains resonate with cautious consumers, the idea of modest returns coupled with limited access to their money should market conditions improve quickly often does not. Prospects might respond to annuity solutions more favorably if they knew more about a feature that would quickly quell concerns regarding being locked in to low interest rate credits or limited liquidity issues. The Return of Premium feature available in several fixed index annuity products provides a way to overcome these objections. Many consumers with such a provision in their fixed index annuity will never use the feature. The benefit of such a feature is access to premium if needed, to reposition assets to higher interest products. If interest rates improve substantially, this feature can adequately address such concerns. PAGE 10
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Most consumers know that if the market drops 30% it would take a 43% gain to get them back to where they were. Consumers are concerned now more than ever about protecting what they have. Be mindful these same consumers are concerned they won’t be able to stretch their assets across their lifetimes. You can bet, if and when interest rates begin to move north, these consumers will be looking for better rates within the fixed index annuity market place. The benefit of Return of Premium is your clients can feel at ease knowing they have full access to their money without a surrender charge invading principal! In today’s marketplace, there are a handful of annuities with Return of Premium provisions. In this low-rate environment offering limited gains, doesn’t it make sense to consider provisions that are most relevant to the concerns of your prospects? If you would like to learn more about the available Return of Premium products offered at Great Plains, please call your Great Plains Annuity Specialist today!
Carlos Rojas
Senior Annuity Specialist Carlos@gpam.biz
JUST the FACTS | 3RD QUARTER 2012
7/30/2012 9:31:08 AM
I’m not concerned with the return on my money, just the return of it. Will Rogers American Humorist
This famous quote rings more true than ever for your clients and prospects looking for a safe and sane place to protect their retirement savings in today’s volatile economic landscape. While we can’t predict the future, the benefits and features found in fixed and fixed indexed annuities offer a proven track record of performance, and can provide peace of mind and security for clients concerned about the return OF their principal as much as the return on their principal. Contact Great Plains and speak to an Annuity Specialist regarding our quality carriers that offer fixed and fixed indexed annuities with Return of Premium benefits! We can help you find the best solutions to present your clients!
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 3RD QUARTER 2012
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WHAT’S HOT AT GPALM? WHY PEOPLE BUY ANNUITIES The feature article in the July issue of InsuranceNewsNet magazine focused on a new LIMRA Research Report exploring the various reasons people purchase deferred annuities. We strongly recommend you take the opportunity to read this study to better understand what motivates your clients and prospects and their ultimate decision to include annuities in their retirement plan. Contact your Great Plains Annuity Specialist to receive this report by email. Call 800-710-1115 now.
LOOKING FOR A BROKER/DEALER ALTERNATIVE? If you are suffering from Broker/Dealer commission haircuts, Great Plains can introduce you to an alternative solution. • B/D does not have to principal or approve your indexed product business
NEW ANNUITY LEAD MAILER Here’s a New ANNUITY LEAD MAILER from Kramer Direct, one of the industry’s oldest and most experienced lead generation firms. Averaging over 5% in response, this can be an economical way to get in front of prospects for agents who understand how to work these leads. Call 800-710-1115 and ask your GPALM Annuity Specialist for details and special GPALM discount Kramer Direct is offering our producers.
• No submission of ANY paperwork to B/D regarding your indexed product business • No involvement at any level by B/D in your indexed sales • Support for RIA/IAR platforms • No commission haircut on your indexed product sales! What’s your current situation? Call 800-710-1115 and speak with your GPALM Annuity Specialist for details!
CALL FOR DETAILS ON THESE HOT ITEMS...
• SPECIAL marketing incentives for three new FIA’s available through Great Plains
• Special Discount Offer from Great Plains for Financial Help Centers Book/Website Lead Generation program • SPECIAL OPPORTUNITY IN SELECTED STATES for new Annuity & Life Consumer leads generated on the internet • New sales presentation: Have you asked your client to consider refinancing their savings? Call 800.710.1115 today!
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JUST the FACTS | 3RD QUARTER 2012
7/30/2012 9:32:06 AM
Boost your client’s guaranteed GLWB income growth by 3.75% each year that the index returns 3% or more! 1
Assumes a 100% allocation in the Annual-Point-to-Point Interest Strategy and a 3% interest cap.
GUARANTEED INCOME BENEFIT GROWTH plus POTENTIAL GROWTH…
20%
PREMIUM
PLUS
GUARANTEED IMMEDIATE BONUS1
7%
PLUS
GUARANTEED COMPOUNDED GROWTH1
125% OF POTENTIAL
INTEREST EARNINGS1
PLUS
Until Start of Lifetime Income Benefit
First 10 Contract Years or Start of Lifetime Income Benefit
… FOR LIFETIME GUARANTEED INCOME. Offer your client a lifetime income benefit based upon a 1 guaranteed 120% of premium compounding at 7% annually for 10 years, 1 plus additional potential growth of 125% of interest earnings. 1
Growth of the Income Benefit Base stops upon the start of the lifetime income benefit. 12 Year Surrender Charge Schedule (10 years in some states).
Upside potential with no downside risk applied to a lifetime income benefit. THE PREMIER LIFESTYLE ANNUITY Featuring
The Income Enhancer Plus℠ Benefit FOR MORE INFORMATION CONTACT US TODAY!
800.710.1115
www.greatplainsannuity.com 1. Applied
only to the Income Benefit Base, which is used only to calculate the amount of the annual lifetime income withdrawal benefit and the annual rider fee; it is not available for single-sum withdrawal nor as a death benefit. 7% annual interest crediting applies only to the first 10 policy years or the start of the lifetime income benefit, and 125% of annual interest earnings applies only until the start of the lifetime income benefit, adjusted for withdrawals. Interest earnings cannot be predicted and are not guaranteed. Indexed account crediting rates and additional benefit base credits are not guaranteed and are subject to change and/or elimination at the company’s discretion. The amount of income produced by the Income Benefit Base varies by issue age and the number of years before the lifetime income benefit is started. The Income Enhancer Plus Benefit is an optional rider for an annual fee equal to 0.95% of the Income Benefit Base value at the time the fee is deducted; the Fee is guaranteed not to increase for 12 years, and will never exceed 1.50%. Excess withdrawals from The Premier LifeStyle Annuity are subject to a 12-year (10 years in some states) Surrender Charge period and a Market Value Adjustment. The Premier LifeStyle Annuity (10FIA, 11GLWB2, and 11RSP) is a single-premium indexed annuity issued by PHL Variable Insurance Company (“PHLVIC”), Hartford, CT and offered exclusively through The AltiSure Group. PHLVIC and The AltiSure Group and associated Marketing Organizations are not affiliated. Product features and availability may vary by state. PHLVIC is not authorized to conduct business in NY and ME. Guarantees are based upon the claims-paying ability of PHL Variable Insurance Company.
BPD38337 5/12
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FOR PRODUCER USE ONLY
7/30/2012 2:43:04 PM
“The Times they are a Changing”... Are your Marketing Organization Relationships meeting your needs? my current MO used to provide? How many more cases would I sell each year if I spent less time on administrative issues?
Over the past several years, times have rapidly changed in the fixed annuity marketplace, and you can bet there are more changes to come. Well-meaning regulators will continue to identify areas for improvement and insurance companies will continue to amenably respond. Safeguards that protect consumers are not bad. It is the nature of the industry, a natural evolution. But the fact is agents are spending more time than ever keeping abreast of compliance-related matters. As agents worry about their livelihood in a tough interest rate environment, they have a steady preoccupation with the accountability they hold to their consumers and the increased scrutiny of regulators to which they must succumb. Adding to this is the “moving target” of different interpretation and definition of suitability requirements among the carriers they represent. The obvious question is: How many more ways can your time as an agent be split among administration, management and sales activities? Product-specific training, state-required training, continuing education, business administration, and case tracking are just a few of the areas where agents must spend their time. With each of these activities, agents are being pulled away from the revenue producing activity (Selling!) necessary to stay in business.
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Simultaneously, as agents respond to these increasing demands, carrier commissions are being reduced and agent close ratios (in light of low interest rates and consumer reluctance) are down! Not to mention that if you make a mistake, it could cost you your livelihood and maybe even your freedom! An equation that was once balanced is now a greatly diminished value proposition to existing agents and new industry recruits. What about the other obvious elephant in the room: Company-owned Marketing Organizations with their hidden agendas! Are you just a speck on the radar, perhaps unworthy for their ‘dedicated’ service model??? How much do you need to produce to get average service? Better yet, how much of one specific product do you need to sell? Does selling one product help you plead your case for consumerfocused recommendations; or are you simply feeding the secret society of the company-owned MO?
As an independent (Yes, 100% independently owned and operated) marketing organization, Great Plains Annuity & Life Marketing understands that service is why our agents choose us as their MO. Call it old-fashioned, but we appreciate the business you place with us. We strive to provide world-class service and a professional, yet down-toearth demeanor. Our experienced consultants are available to assist you with case development, illustrations, product selection, and case management. Great Plains enjoys relationships with over 60 insurance companies. We scour the market for unique and robust products so you don’t have to. Whether it is a great interest rate with a lesser known carrier, a niche SPIA product, a laddered annuity solution or a return of premium product—Great Plains Annuity & Life Marketing can help you! Adapting to a changing marketplace does not mean you have to give up on expecting old fashioned service and values. Call us today to discuss how we can help your business!
As you are working much harder just to maintain your income, you may be getting the short end of the stick from the support system you rely on the most—your MO!!! Ask yourself this question: What am I really getting from my current MO? Is it simply an entity on which to hang my various company appointments? How much time could I spend selling if I enjoyed the old-fashioned agent support
Jane Plumberg
Annuity Specialist Jane@gpam.biz
JUST the FACTS | 3RD QUARTER 2012
7/30/2012 9:33:15 AM
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 3RD QUARTER 2012
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FISHING for LEADS?
Are you generating enough leads to feed your practice? Producers whom have worked with Great Plains for any period of time know our Principal, Rich Hellerich, is an avid fisherman. In a recent discussion regarding lead generation, Rich observed that successful producers use several lead generation methods continuously, and commit to a marketing budget to ensure they generate appointments and sales. These producers understand that in order to create the best possible lead, a referral, they must invest in other branding and advertising efforts to built awareness and be “top-of-mind” in their community. They are also willing to experiment with new methods and tools. Here are some of the lead generation and sales tools through Great Plains to help you fill your appointment calendar. Contact your GPALM Annuity or Life Specialist or visit our web site for more information! IncomePLUS: Our proprietary income planning presentation helps you educate clients on the benefits of creating reliable lifetime retirement income using annuities, life insurance and other financial products that fit their needs and your practice. We have expanded IncomePLUS to include our GPALM Income Rider Comparison Tool and just introduced the Chronic Care Comparison Tool to assist you in finding the best product solutions to meet your clients’ needs. Financial Help Centers: FHC offers producers the opportunity to create their own custom web site in 10 minutes, tied to the offer of a free consumer education book (that you can personalize), “What all stock & mutual fund investors should know!”. FHC suggests PAGE 16
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multiple marketing ideas for using this tool to create both new leads and referrals from existing clients. We currently have a special introductory offer for Great Plains producers! Seminars for Less: If you are an experienced pro at doing client seminars or just considering adding this tool to your practice we encourage you to contact SFL. Besides great value and pricing, you’ll have access to their outstanding team and the most knowledgeable seminar expert in the industry, Kim Magdalein. (See Kim’s article on page 18). Kramer Lead Marketing: We’ve just been notified of a new mailing package that is generating over 5% in average response. The offer focuses on social security changes and benefits. Your GPALM Annuity Specialist has details and a discount form—call for details. Event Planning: At press time we are putting the final touches on our GPALM Event Planning Kit. This free PDF can be emailed to you with ideas for Client Appreciation, Birthday, Retirement parties and more. Watch your email or call your Marketing Specialist!
Robb Edwards Principal Robb@gpam.biz JUST the FACTS | 3RD QUARTER 2012
7/30/2012 9:34:03 AM
It’s Your Choice... Spend hours researching the best income riders for your clients, or call Great Plains for your best answers in minutes! Tired of keeping up with all the industryleading guaranteed lifetime income benefit riders? Did you know that the largest rollup rate does not always equal the highest payout? Think you know everything you need to know to recommend the best solution for the different income needs of clients and prospects? Educate prospects with information designed to help them identify and focus on their needs, dreams and desires for guarantees and peace of mind in their retirement years. Combined with the power of our exclusive IncomePLUS presentation, your client can rest assured they have made the right decision. We help you present a professional, easy to understand strategy to create dependable, tax-advantaged retirement income, plan for potential financial issues later in life, and build legacy gifts to their children, grandchildren and charity. More and more fixed indexed annuity professionals are discovering Great Plains offers fast answers for the best income rider solutions and assistance that leads to better advice, larger sales, and happy clients! Call your GPALM Annuity Consultant today to learn more!
Bring your clients more than just a product solution. Help them take control of their financial future!
JUST the FACTS | 3RD QUARTER 2012
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800.710.1115
www.greatplainsannuity.com PAGE 17
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Seminar Efficiency
EdItor’s Note: Seminars for Less is Great Plains’ recommended resource for agents interested in or using seminars to build their practice. How many phone calls are you willing to make to get a prospect to sit and talk with you about their assets? How many socials are you willing to attend to gather enough interest with qualified prospects?
Each year he was asked to speak to the annual convention attendees. I heard all of his talks. He stood almost derisively behind the lectern and told the audience that each year he says the same things and each year nobody follows his lead to produce such a high volume. Then he proceeded to tell them how to have a successful practice, once again. He talked of his availability to his clients. His
Mike was the top agent with a major insurer for over a dozen years. His picture still graces the halls of this company as a legend. He is the Babe Ruth for this carrier.
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SAFE? Are your Retirement Savings by a Join us for this informative seminar,
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extraordinary customer service, he mentioned how he spent time with his clients on the tennis court, the golf course, the social clubs, the bowling alley, the softball field, and major sports games. What he didn’t tell them was what his family life was like. He was never home with his family. He was on his third wife. He had no relationship with his grown children. All of his friendships and relationships were built around money. How pitiful. Most prospecting methods that are being promoted today have an agenda. The methods’ advocate has something to gain from your participation. I also have something to gain if you follow my advice. However, two major differences prevail with my advice. It works and it’s efficient. In the last ten years I rarely worked more than 30 hours per week. I rarely missed a meal with my family. I’m in church on Sunday evenings and Wednesday evenings almost without a miss and netted an average of $350,000 per year in that timeframe. All of this by the efficiency of seminars. Almost the entire income was derived from new business from new clients. All new money. Give us a call. I will be honest about what it takes to build a successful practice through the use of seminars. Kim L. Magdalein is a producer and owner of PresentYourPractice.com. He entered the industry in 1985 and went into private practice in 2001, serving the Jacksonville, Fla., retirement community. He can be reached at (800) 909-9894.
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Kim Magdalein Kim Magdalein has presented to over 1,000 audiences in the last 10 years resulting in over $150,000,000 of annuity production averaging $150,000 per presentation. His marketing company Seminars For Less has produced thousands of seminars for other producers nationwide producing over $2.5 Billion in annuity premium. Kim has written a monthly article for Life Insurance Selling magazine for 2 years.
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JUST the FACTS | 3RD QUARTER 2012
7/30/2012 9:34:49 AM
Income For Life • Available with any newly issued EquiTrust Index Annuity1 • Lifetime income based on 7% Benefit Base* accumulation for up to 20 years • A guaranteed income stream for life – without annuitizing • Flexibility and control to start and stop income payments as needed • All of this, while maintaining other annuity benefits *Benefit Base is used only to calculate the Income Withdrawal amount. It is not available upon surrender, death or annuitization.
Plus • Rider income continues after the annuity accumulation value is depleted • Index-linked returns may produce HIGHER income later • Income may continue after the death of a spouse • Increasing accumulation value may provide for heirs upon death
Help clients looking for a guaranteed lifetime income stream take advantage of EquiTrust’s Improved Income For Life Rider Today!
800.710.1115
www.greatplainsannuity.com 1For Washington residents, the rider is available only with Builder Bonus Index; the rider is not avail-able with MarketValue Index. Guarantees subject to the claims-paying ability of EquiTrust Life Insurance Company. Contracts and riders may vary by state. Products and riders not available in all states. Rider issued on Form Series ICC11-ET-IBR-B(11-11) or ET-IBR(06-08). EquiTrust Life Insurance Company, West Des Moines, IA. For Producer Use Only. AC12-ET-ECN-1061
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LIFE INSURANCE WHERE SALES OPPORTUNITIES EXIST! Estate Planning - With the $5million lifetime gift tax exclusion possibly coming to an end this year, savvy clients are taking advantage of it. Single premiums of $250,000 and up are being spent on Survivorship life or UL products where ownership is an ILIT.
Life Products with LTC benefits - Lot’s of options here for clients in most states. Where just an LTC product is “use it or lose it”, these products pay a death benefit if all the LTC benefits are not used. Usual ages are 50 to 75 and very popular.
Senior Market - “Leave Behind” lump sums of money are pouring into Single Premium Life Products. These simplified issue no exam products are the best way to maximize one’s legacy while beneficiaries receive the proceeds income tax free.
Universal Life - As many product types as we have ever seen. Pure no-lapses that have virtually no cash values, Index with built-in no lapse, No-lapse with ROP starting in some future year and current assumption with a guaranteed death benefit out to mortality ages.
Senior Market - Asking the right questions are leading to these sales. “Not Needed” RMD’s or 10% free withdrawals from annuities are providing a built-in annual life insurance premium for Survivorship sales as well as individual UL or Single Premium Life sales. Again, it’s a way for one to maximize what they are leaving to their heirs. Under age 50 - A lot of term insurance being bought however, many agents are suggesting that the client mix in some amount of permanent coverage as well. The question for these clients is “when this term policy runs out in 20 years, will you still need coverage?” The answer is almost always yes. They can now avoid higher premiums some 20 years later and avoid adverse underwriting due to medical impairments.
Jeff Bregovy Life Specialist Jeff@gpam.biz
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Business Insurance - Never funded Buy & Sell Agreements are everywhere. If a Partner or Stockholder dies prematurely, everyone loses. Easy question to ask business owners.
Please contact Dick Reynolds, CLU or Jeff Bregovy in the Great Plains Life Department! 800-710-1115
Dick Reynolds, CLU V.P., Life SALES Dick@gpam.biz
7/30/2012 9:35:19 AM
OUR LIFE DEPARTMENT EXPERIENCED. INNOVATIVE. FULL SCALE. INTERESTING LIFE PRODUCTS • No Lapse Universal Life with “Guaranteed Cash Value” • No Lapse Universal Life with NO-COST ROP • No-Med term with separate Critical Illness Rider • Survivorship Term • Turn IRA funds into Tax-free benefits to heirs • Church Legacy-Simplified issue life for Congregation
SENIOR MARKET-CLIENTS AGES 60+ • Estate planning • Creating a larger legacy with single premium life • LTC life Plans or LTC Riders • 1035 Exchanges • Pension Maximization • Final Expense Plans • Maximize IRA funds with life insurance • Simplified and Guaranteed issue plans • Turn IRA funds into Tax-free benefits to heirs
UNDERWRITING • Preliminary screening impaired risk casestypically 48 hour turnaround time • Informal Shopping of Case • Managing Jumbo cases and avoiding total line issues with facultative reinsurance requirements • Direct access to underwriters • Associate in-house underwriter • Pushing for better offers from carriers
INDIVIDUAL & FAMILY SOLUTIONS • Term Insurance • Whole Life Insurance • No Lapse Universal Life • Current Assumption Universal Life • Index Universal Life • Survivorship Life • Critical Illness product
ADVANCED PLANNING • Estate Planning • 162 Bonus • Buy Sell Agreements • Key Person • 412(e)3 Plans • Charitable Remainder trust • Deferred Compensation • Family Limited Partnerships • Access to Attorneys
SALES SUPPORT • Quick Response on Illustration requests • We will suggest possible solutions • Best product for the client • Client Brochures • Product Guides • Applications • We’re happy to order exams
800.710.1115
www.greatplainsannuity.com JUST the FACTS | 3RD QUARTER 2012
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If you have been selling annuities for 10 or more years you may in fact be sitting on a goldmine. Many retired seniors who own annuities do not even take the interest on the gains as other sources of income are sufficient. These annuities might now be earmarked to pass to heirs or, if needed, to provide funds for assisted living or home health care expenses. Take advantage of potential sales • Go back and speak to you existing annuity clients. They already know you. • Determine through a couple of questions if they still need annuities for income 1. If you ever need assisted living or home health care, what asset(s) will you use to pay these expenses? Would you need these assets for retirement income? 2. Do you have annuities or other lump sums of money you may have saved earmarked for your heirs because you will not need them for income purposes? Recommend planning by simply repositioning assets • If LTC benefits are needed then use monies as a single premium to acquire a substantially higher amount of funds for these type expenses. If these benefits are not used or used up, heirs receive a death benefit income tax free. • If client just wants to pass monies to heirs in the best possible manner, again move them via a single premium to not only increase the amount heirs would receive but now make them income tax free. Both solutions are easy to explain, an easy process for the client and underwriting is quick. Agent commissions are very attractive. Please contact us if you need more details or have a case to discuss
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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!
ELIMINATE
THE UNCERTAINTY! BE READY WHEN YOUR CLIENT NEEDS YOU. Current economic instability, coupled with changing life circumstances, can create the need for clients to re-evaluate their financial situation. There are many reasons why clients might choose to sell their existing single premium immediate annuity income streams or annuitized annuities. Some inherit these policies and find they would rather have a lump sum than monthly payments. For others needs change requiring a different type of insurance/investment product. Some choose to change their investment or estate planning strategy, while still others find that their original decision to buy the SPIA no longer applies. With the money received, clients pay off debt, start new businesses, pay for school, buy homes or save their existing home from foreclosure. They have the freedom to apply their existing financial resources to best serve their family and changing circumstances.
CONVERT ANNUITY INCOME STREAMS TO CASH Learn how you can be ready to assist clients and prospects if changing financial circumstances force them to seek a lump-sum payment for an existing single premium immediate annuity or annuitized annuity.
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CALL RICH HELLERICH!
800.710.1115
7/30/2012 9:36:41 AM