Pm9681 le by The Penn Mutual Life Insurance Company

P E N N M U T UA L’ S

LEADING

EDGE

THE VOICE OF THE PRODUCER VALUE COMMITMENT

PENN MUTUAL

Veterans Offer Recruiting Insights

PM9681 | For Advisor Use Only 1245006RM-Jul17

vol 7

issue 3, 2015

VOL. 7, ISSUE 3, 2015 Penn Mutual’s Leading Edge is published by the Corporate Communications Department as the voice of the Producer Value Commitment for all of the company’s field partners. Editors: Ann Callaghan, Keith Bratz Chief Writer: Rich White Art Director: D ominic Monte Designer: Lia Giambanco Contributors to this issue: Justin McNeal, Steven Horvath, Allen Timms, David Hansen, James Pierce, Lisa Davis, Mike Ross, Randy Cowell, Ted Digges, Rebecca Dunne, Scott Blackley, Andrew Martin, Debbie Poley, Leanne Acton Please send questions or comments to callaghan.ann@pennmutual.com.

contents 1

essage from Tom Harris, CLU®, ChFC®, FLMI M Executive Vice President, Distribution

2 Penn Mutual Veterans Offer Recruiting Insights 6 New Product Launch Creates Separation from All IUL Competition

10 Teamwork, Diversity and Social Styles: An Interview with Lisa Davis

14 How Women Can Boost Your Career 16 Randy C. Cowell: Financial Professional of the Year 20 Three Ways You Can Support The Penn Mutual Center for Veterans Affairs

24 The Many Facets of Penn Mutual's Rugby Initiative

The Producer Value Commitment

Message from

Tom Harris, CLU®, ChFC®, FLMI, Executive Vice President, Distribution It’s hard to believe we’re in the full swing of summer – and what a summer it has been! Our Royal Blue and Golden Eagle Conferences were incredible and I was thrilled to spend time with so many of our advisors in Puerto Rico and Lisbon. We’re already planning for these recognition conferences next year and I encourage you to visit Producers Place and see where you stand. As a company, we continue to seek the best advisors from across the country to do business with us and partner with our field offices. One way we are doing that is through The Penn Mutual Center for Veterans Affairs. We established this in partnership with The American College as a way to not only give back to service men and women, as well as their families, but to attract people with skills that will lend themselves to a successful career in the financial services industry. This edition of Leading Edge profiles three advisors who are military veterans and they share their insights as to why financial services has been a good second career for them. You’ll also learn ways that you can support The Penn Mutual Center for Veterans Affairs and an update on the scholarship program from executive director, Ted Digges. At this year’s Royal Blue Conference, one of the most well attended break-out sessions was Social Styles: Understanding and Working with Those Around You, presented by Lisa Davis, Managing Director at 1847Financial. In this issue, you will learn about how teamwork, diversity and social styles impact the way you communicate with clients and colleagues and keys to success for implementing this in your daily routine. Eileen McDonnell and I had the opportunity to recognize Randy Cowell at the Royal Blue Conference with the Financial Professional of the Year Award. This award is given to an individual who demonstrates extraordinary commitment to continuing education and a high standard of ethics. Randy is a true example of all of these qualities and I encourage you to read more about him and his practice.

Penn Mutual’s myWorth program has been promoting the importance of working with women clients, and many advisors are finding success by targeting women in their prospecting efforts. Recently, Mike Ross from the New England Region had the opportunity to speak at the Million Dollar Round Table’s annual conference and you’ll get to hear from Mike about how women can give your career a boost. In June, we launched Accumulation Builder Advantage Indexed Universal Life that is setting us apart from the competition with its strong accumulation and income potential. Read on to learn how your clients can benefit from its attractive offerings. As you know, last year we embarked on our sponsorship of collegiate rugby with the Penn Mutual Varsity Cup and the Penn Mutual Collegiate Rugby Championship. It was an exciting time for us as we connected with this new dynamic audience. There have been so many success stories and components of this sponsorship, so please read on to learn about all of the benefits we are seeing in just our first year. Finally, I’d like to remind everyone that September is Life Insurance Awareness Month and is a perfect time for you to talk to your clients about the importance of life insurance in a sound financial plan. Turn-Key marketing campaigns are available for you to take advantage of by visiting www.pennmutual.com/ bringittolife and I encourage you to keep an eye out for an exciting campaign that will be featured on our corporate social media channels. Enjoy this issue of Leading Edge and best of luck in achieving your goals for the rest of the year! Sincerely,

Thomas H. Harris

marketing

PENN MUTUAL

Veterans Offer Recruiting Insights

WHY IS FINANCIAL SERVICES A GOOD SECOND CAREER FOR U.S. MILITARY VETER ANS? HOW CAN YOU HELP TO RECRUIT VETER ANS FOR YOUR OFFICE OR TEAM? O O O O O O O O O O O O O O O O O O O FOR ANSWERS, LEADING EDGE TURNED TO THREE VETER ANS WHO HAVE L AUNCHED SUCCESSFUL C AREERS WITH PENN MUTUAL C AREER AGENCIES. HERE ARE THEIR STORIES AND INSIGHTS.

Justin served in the U.S. Navy for six years, working as an Engineering Watch Supervisor on the fast-attack nuclear submarine, the USS Key West. He retired in 2007, with the rank of first-class petty officer (E6). “My

Justin McNeal, MBA TREW FINANCIAL & BENEFITS, INC. (GEARY AGENCY) HONOLULU, HI

biggest claim to fame was being underwater for 87 days straight,” he says. He completed

INSIGHTS: O W hen you first get out of the military, you feel lost. You are used to working with a close group of friends with whom you trust your life. It’s hard to find something similar on the outside. Fortunately, the financial services industry is like that in some ways.

three Western Pacific deployments, one in support of Operation Iraqi Freedom, and another in support of Operation Enduring Freedom. When Justin retired from the military, he earned an MBA degree in Management from Hawaii Pacific University and worked as an agent for Northwestern Mutual and with the Geary Agency when it was affiliated

O In our business, a new advisor has to work really hard, especially in the beginning, without getting much recognition. The military is like that, because you only achieve rank and authority with hard work and achievement. You also learn integrity in the military – to always do the right thing, even when nobody’s looking – and that carries over into helping people with personal finances.

with Guardian. After going independent for a time, he then rejoined the Geary Agency in August of 2014, after it affiliated with Penn Mutual. At TREW Financial & Benefits, he has teamed with an experienced partner, Todd Shanholtzer, the firm’s President and CEO. Recently, Justin began to take on sales management duties for the agency’s Honolulu outpost, increasing agency distribution.

O I think the biggest key to success for vets getting into this business is to find a mentor, somebody you can team up with and shadow. From the first day I stepped on a nuclear submarine, I had a “sea dad” assigned to show me the ropes. Fortunately, I was able to team up with Todd early in my financial services career. He is strong in sales and relationships, and my strength is in numbers and analytics. By working together as a team, we magnify our individual strengths and eliminate weaknesses.”

Steven F. Horvath, MBA, LUTCF PROFESSIONAL ECONOMIC GROWTH GROUP (DEPAOLAESPOSITO AGENCY), EDISON, NJ

After graduating from the Academy of Aeronautics with an Associate Degree in Aircraft Structural Design in 1983, Steven joined the Navy and logged over 1,000 military flight hours from anti-submarine warfare platforms including an SH-3 Sea King (Helicopter) S-3 Viking (Jet), both of which were from the decks of Air Craft Carriers, and a P3C Orion (turbo-prop) from a land based aircraft. Steven was trained as an Anti-Submarine Warfare Operator (AW) and cross trained as a US NAVY Rescue Swimmer for combat Search and Rescue. “For six years of active duty and three years of Navy Reserves, I flew around oceans and tracked submarines,” he says. He retired from the Navy in 1992 and earned an MBA in Finance from Canterbury University, with additional study at the American College and Wharton School. From 2000 to 2008, he worked as a financial advisor affiliated with a MetLife Agency and has been with PEGG the past seven years. His oldest son, Derrick, now serves in the Navy as an E5 on board nuclear submarines. Steve’s liaison involvement and veteran connections are an integral part of PEGG’s outreach and recruitment efforts aimed at veterans. Presently, the agency is building an advisor team around Steve and his practice in its Edison office, consisting of several veterans. Mike Esposito USCG, Brett Feldman USMC, Mike Gorman USMC and Mike McLane US Army are all veterans from PEGG and have been a tremendous help to Steve over the years. In his spare time, he is an ice hockey player and contributor to Defending the Blue Line, a charitable organization that helps children of military families participate in the sport.

INSIGHTS: O W hat I loved about military training is that it teaches you to motivate yourself and work without constant supervision, whether as an individual or on a team. The rigidity of military training is a stereotype, and it is not true. On the battlefield, if an officer is killed or wounded, the next highest ranking person must step up and lead. As an E5, I was cross-trained to command a unit, if I had to. In our PEGG team, we have the same kind of flexibility to perform different roles.

O One similarity between my military and financial jobs is the personal commitment required. In the military, you sign on the dotted line to do whatever it takes, up to the ultimate sacrifice. The biggest difference in careers is the opportunity to advance. In the military, you can only advance one rank at a time, with two to three years in between. In financial services, if you work smarter and harder every day, you can advance your career quickly.

O If you want to recruit a vet, ask the right questions. Be honest when explaining this type of work and don’t downplay difficulties. If anyone in the office has a military background, that person should be assigned to mentor and train veteran recruits. There should be set hours for training and most time should be dedicated to on-the-job training.

O People who retire after 20 years in the military are ideal for our business. They may be in their early 40s and drawing a pension, so there is not as much financial pressure. They are great at learning, and they have spent 20 years in the military cultivating close friendships for their natural market.

O Military people definitely help to increase the integrity of our industry. The ultimate goal of all military personnel is to “harm no one.” Our service members are doing more humanitarian work around the world than they are involved in conflicts, and that’s good training for helping people plan personal finances.

INSIGHTS: O Each day of my work life, I am thankful for the discipline I learned as an Army

Allen Timms GEARY AGENCY, SAN DIEGO, CA

officer. When people enter financial services, they have great freedom to run their own businesses. But that freedom can become a liability if you take the path of least resistance and don’t stick to a model workweek. I track how many calls and appointments I make every day, and these metrics are tied to disciplines I learned in the military.

O In the military, I was blessed to be able to lead people. Those skills translate From 1998 to 2008, Allen served as an intelligence and artillery officer in the U.S. Army on active duty (3 years) and in the National Guard, including a 2003-04 tour in Iraq. His last duty position was at the Headquarters Batter Commander for an artillery unit in Burbank, CA. He attended Valparaiso University School of Law and earned a JD degree on the Montgomery GI Bill, before deciding that he enjoyed financial services more than law. He previously worked for Thrivent Financial and Guardian,

directly into financial services because I am advising and educating my clients so they can make informed decisions. My strength as an advisor is in meeting people and helping them work through a planning process.

O T he biggest gap military people may face in this business is lack of sales experience. In the military, you are given a mission and you follow orders and execute it. In our business, you must be open-minded, learn sales techniques, and call people in your natural market. It’s hard if you have not previously been in the sales world. You must believe you are there to improve peoples’ lives.

O T he natural market of veterans who enter our business usually consists of military people and federal government employees. There is a perception among these people that if they have Servicemembers Group Life Insurance (SGLI), their families will be protected, but it’s not true. SGLI is inexpensive, but it’s a glorified term life insurance policy and often the coverage is not enough. The challenge is to convince clients that there are many other benefits in permanent life insurance.

before following the leaders of the Geary Agency, who moved from Guardian to Penn Mutual in 2014.

"MY STRENGTH AS AN ADVISOR IS IN MEETING PEOPLE AND HELPING THEM WORK THROUGH A PL ANNING

O When my dad retired from a career in the Navy, he chose a 100% pension survivor benefit for my mother, to make sure she would be protected if he passed away. Because of that, his pension was much lower than it would have been with other payout options. That was in 1990, and he is still alive today, so my parents have been dealing with lower income for 25 years. I wish someone with my knowledge and experience had talked to them back then, the way I talk to clients now, about how to use permanent life insurance to meet survivor needs more cost-efficiently.

O One of my passions is to have my own charitable foundations, through which I can give back to military causes. Because of the income opportunities in this career, having this dream is realistic. There are many vets who have the acumen and skill sets to be successful in this industry, and it’s a good fit for them, because it lets them dream big. Veterans need to understand how important it is to choose a great life insurance company like Penn Mutual. We have everything a veteran needs to be successful – not just in the local agency but also in the home office, back office and with tools like LEAP Systems.

PROCESS."

competitive products and compensation

NEW PRODUCT LAUNCH

Creates Separation from All IUL Competition

On June 1, 2015, Penn Mutual announced the launch of Accumulation Builder Advantage Indexed Universal Life (IUL), which is a new and unique permanent life insurance David M. Hansen

product that sets Penn Mutual apart in the industry. This highly competitive product offers strong accumulation and income potential, a choice of four indexed accounts, a 12-month dollar cost averaging account, a fixed account

James C. Pierce

option and a no-lapse guarantee, up to 30 years*.

Accumulation Builder Advantage IUL will replace its predecessor at Penn Mutual, Accumulation Builder Choice IUL. It is built on the chassis of that product, with all of its attractive features, plus two changes: The guaranteed Policy Value Enhancement (PVE) bonus feature will increase from 0.30% to 0.75%. This rate is guaranteed to be credited to the policy’s non-loaned, indexed and fixed account values as early as policy year 11, regardless of market performance. It will reward policyholders for persistency and increase their long-term cash value accumulation. Combined with the product’s 1.0% guaranteed floor crediting rate, the PVE in effect increases the guarantee from 1.0% to 1.75% on non-loaned values. (For policyholders younger than age 35 at issue, the PVE begins at the earlier of attained age 46 or 26 years after issue.) The “cap rates” used to determine annual interest rate crediting, based on performance of an equity index, have changed. The current cap rate in the 1 Year S&P 500 Indexed Account is 12.0%. with a generous guaranteed annual floor of 1%. For cash values allocated to the account, the crediting rate is based on the annual performance of the Standard & Poor’s 500 Index (excluding dividends), up to the cap rate.

Persistency Reward + More Predictable Outcomes According to Andrew Martin, VP, Product Management: “The PVE will now guarantee a 0.75% annual bonus, in addition to the 1.0% guaranteed floor crediting rate, starting after the first 10 years for most policies, regardless how the market performs. There is only one other company in the industry that currently offers a 1.0% guaranteed floor. When you add another 0.75%, the guarantees set Penn Mutual apart among all IUL providers. The changes also strengthen our story of providing guaranteed protection against down markets while still providing upside potential.” Says James C. (“Jim”) Pierce, Managing Partner, National Legacy Group (Pierce Agency), Wilton, CT: “IUL illustrations may look great to clients, but they become old as soon as they are printed. Once I get clients to stop fixating on illustrations and look at what is actually being credited and guaranteed, there is nothing in the IUL industry that can touch our new product. After the PVE kicks in, it will outperform competitive products in a variety of stock market environments – flat, down or modestly strong.”

"When you add another 0.75%, the guarantees set Penn Mutual apart among all IUL providers. The changes also strengthen our story of providing guaranteed protection against down markets while still providing upside potential." 7

Anticipating Regulatory Changes The upgrade from the older Choice product to the new Advantage IUL product was driven by Andrew Martin’s life insurance product development team, based on the competitive environment and with anticipated changes in the life insurance illustration regulatory environment in mind. The National Association of Insurance Commissioners (NAIC) has adopted new rules that will cap the IUL crediting rates on illustrations at a lower rate than today’s rates. Says David M. Hansen, Regional Director, Great Lakes Region: “The NAIC has never before addressed the issue of maximum crediting rates and indexed loan rates in IUL illustrations. They are doing this to simplify illustrations to the consumer and make them more conservative and comparable. Our product development team anticipated this change and moved quickly to turn it to Penn Mutual’s competitive advantage.” Jim and David serve on a Life Product Tri-Council Committee that provided feedback to Andrew’s team. Says Jim: “Our committee brings together producers and field managers from both the career and independent channels. Based on our input, Penn Mutual made several changes in the new IUL product, as originally proposed by Andrew’s team. The team then accepted our advice on what features would be presentable to our clients, and this increased our comfort about what we are selling. It’s rare for a life insurance company to include producers and field managers in new product development, to this extent.”

Built on a Proven Chassis Andrew emphasizes that the Choice IUL product was very competitive and successful, and none of its features and benefits have been lost in Advantage IUL. “We still offer a choice among the same four Indexed Accounts, including a

High Participation 1 Year S&P 500 Indexed Account, a 1 Year S&P Global BMI Indexed Account and a 5 & 1 Blend S&P 500 Indexed Account, and also a Fixed Account. We also offer the longest no-lapse guarantee on accumulation IUL products in the industry, up to 30 years, at no extra cost. Although the product enhancements may seem minor at first glance, they will make a big impact on how our IUL product looks competitively.”

Best IUL Sales Ideas David’s best IUL sales idea is to focus on clients who “understand and appreciate the features of this product and want to put in as much premium as they can, to build cash value. The PVE will help to build cash value faster, after it kicks in. Penn Mutual charges the cost of insurance based on the net amount at risk. So, as cash values grow, the number of units we charge for insurance goes down, likely reducing overall costs later in life.” For clients concerned about recent stock market volatility, Jim suggests using the dollar cost averaging feature to spread allocations to the indexed accounts over 12 monthly increments. “Money goes into the 12 Month Dollar Cost Averaging (DCA) fixed account and the balance is guaranteed by Penn Mutual to earn 4% (currently). The policyholder also avoids putting all premiums into a market-linked Indexed Account near its highest point during the year.” You can learn more about Accumulation Builder Advantage Indexed Universal Life (IUL), including a comprehensive product FAQ, on Producers Place at: Products & Investment Information > Insurance.

*The number of no-lapse years will vary based on the age of the insured at issue.

All guarantees are based on the claims paying ability of the issuer. Accumulation Builder AdvantageSM Indexed Universal Life is an indexed universal life insurance policy offered by The Penn Mutual Life Insurance Company. Product or features may not be available in all states. Policy form numbers ICC12-IFL and IFL-12. (Policy form numbers may vary by state.).

September is

Life Insurance Awareness Month Take advantage of this opportunity to raise awareness of the complete value of permanent life insurance with your clients and prospects. Drive sales with turn-key marketing support to use during Life Insurance Awareness Month, including: n

Share emails that highlight the possibilities of permanent life insurance

Social media posts to compliment the email campaign

Tools to target millennials and young professionals

Start your planning today! www.pennmutual.com/bringittolife 9

practice management

DIVERSITY AND SOCIAL STYLES: Editorâ&#x20AC;&#x2122;s Note: Among the most well-attended breakout sessions at the 2015 Royal Blue Conference in Puerto Rico was a presentation on Social Styles by Lisa Davis, Managing Director at 1847Financial (Meehan Agency) in Conshohocken, PA. Lisa joined the agency in 2012 to help develop its strategic planning, including productivity growth among existing advisors through team-based selling. She advocates for awareness of Social Styles in building diverse advisor teams and increasing communication with clients. Leading Edge recently interviewed her to learn more about Social Styles and how you can use them.

AN INTERVIEW

with Lisa Davis

LE: The title of your breakout session at Royal Blue was Social Styles: Understanding and Working with Those Around You. Can you explain? lll Lisa: At 1847Financial, we believe our business is about relationship management. Advisors must connect with people to help them define and meet their personal goals. By paying close attention to Social Styles, our advisors connect with their clients and prospects in ways that work best to help them understand information and make decisions. LE: You are training them to be more effective communicators? lll Lisa: Yes, through Social Styles, they learn to adapt the way they communicate with each person so they are receptive and understand the information. Good communication is not about how articulate you are. It’s about how well you are understood, which means delivering information in ways that each person can process. LE: Can you give an example? lll Lisa: My Social Style is Expressive, which means that I emote and generally speak in statements. People that are expressive are intuition oriented. Because of this, I tend to speak quickly and I use my hands and facial expressions for emphasis. When trying to convey a point I like to “paint” a picture. This is in direct contrast to someone that is an Analytic. Analytics have controlled body movements and rely on facts to make their decisions. They are thought oriented people. In order for an analytic to best hear and understand me, I know that I must slow down and focus on the facts in an orderly and logical progression. If I am talking to someone with a Driver style, I know that they are action-oriented and I let them communicate their points-of-view while giving them the information they need to make decisions themselves. LE: You had about 60 people attend each of two one-hour breakout sessions on Social Styles at Royal Blue. Why do you think the interest in this topic is so high? lll

Lisa: In today’s financial services industry, we need a broader skill set than in the past. Ours is a relationship management business and we can’t disregard the value of human connections and buying psychology. Social Styles is one important component in our redesigned training curriculum. At 1847Financial, every person in the firm participates in Social Styles training. We dedicate classroom training sessions to the topic four times each year, and we constantly reinforce the training in individual advisor coaching and our work with sales teams. LE: How does Social Styles fit into your agency’s commitment to team-based selling? lll Lisa: We now have 11 sales teams in our agency. Each team ideally has three to five advisors developed around one successful senior advisor as team leader. To effectively manage client relationships, we believe that no team leader should be managing more than about 50 clients, so we emphasize delegation. The question then becomes: How does the leader most effectively delegate client relationship-building to the most suitable team member? The idea is to mix people with diverse Social Styles on teams, so relationship management can be delegated to an advisor who communicates in each client’s preferred style. We also emphasize versatility, which means the extent to which others see us as adaptable, resourceful and competent. We train advisors and teams on the four steps to increasing versatility: 1) know your own Social Style; 2) identify the other person’s Social Style; 3) adapt your behaviors to the other person’s style; and 4) communicate in the way that the other person can best understand. LE: Is it always clear which Social Style is dominant in an individual? lll Lisa: Usually, it is, because our Social Styles are very consistent. A key point is that Social Styles are behavior-based, not personality-based. Behaviors are what you can observe about a person, such as facial expressions, body language, or how he or 11

she answers questions. We use a Social Styles assessment with just 10 questions, all of which can be answered by observing an individual’s actions or responses. Based on answers to these questions, you can plot where a person falls on a grid in which the horizontal axis measures assertiveness and the vertical axis measures responsiveness. The four quadrants that are created are the four Social Styles, Analytic, Driver, Expressive, & Amiable. LE: Can you cite an example of how this helps to increase communication? lll Lisa: When we first started building teams, I identified a potential team leader and 4 other advisors that I thought, for a number of reasons, would make a great team. I organized the first team meeting where I pitched the concept of a mentorship team to the group. I was really excited about the idea of them working together and I painted the picture of what the next 3-5 years would look like to the group. However, it was one of those meetings where I felt like I was speaking another language. After the meeting, I went to speak to Jim Meehan, Managing Partner of 1847Financial, about it and I told him that they didn’t understand the team concept. Jim challenged me by asking “Who didn’t understand?” It was at that point where I realized that they didn’t understand because I wasn’t communicating effectively. I had four Analytics and one Driver, “all above the line people." I knew I needed to start over again. I created an entirely new agenda, detailing a defined process with specific action steps. The next meeting was fantastic and they are now a high performing team. The key to this was versatility. Versatility means being able to change your own communication style to match the client’s style, and also mixing together different styles on the same team, to increase diversity. LE: Are different Social Styles systems and models available? lll Lisa: Several different systems have evolved, and most of them trace back to work done in the 1960s by Dr. David W. Merrill, an industrial psychologist, and Roger H. Reid. They were looking for a model that would predict success in sales and management careers. Eventually, they wrote a book about Social Styles and founded the TRACOM Group, a workplace performance company that now owns and licenses Social 12

Styles models and tools. Over the years, thousands of people have been exposed to their models and many firms, such as ours, have adapted them for practical application. We don’t use any one commercial model but rather our own version, which meets the needs of our team-based approach and its emphasis on versatility, diversity, and everyday selling situations. LE: How should a Penn Mutual office evaluate and choose, or adapt, a Social Styles model? lll Lisa: The most important need is simplicity. For example, another popular behavioral analysis assessment tool is the DISC Profile. It takes into account both behavior and personality, using a rating scale and multiple-question test. The problem is you’re not going to meet with your clients and ask them to fill out a DISC Profile. You want a model that allows you to size up the Social Style of a team member or client easily, based on observation. LE: What is the key to success in choosing Social Styles models and using them effectively? lll Lisa: I think three things. First, identifying Social Styles is a skill that must be learned and practiced. Second, by building teams with diverse Social Styles, you can delegate relationships to create a better fit with each client. Third, being able to communicate more effectively with each client, in his or her style, can have a dramatic impact on business productivity. If you think about it, adapting to social styles is like giving a present. You don’t give a present with your own needs in mind. You focus on what other people need. ❖

* Resources for

Learning More about Social Styles

Boost Your Career with myWorth and find the right level of engagement for you!

Level 1: Retention n

Working with through

Scripts and Action Plans to Retain Women

and Couples n n

life myWorth

Insights on Retaining Widows and Divorced Clients Brochures, Workbook, Producer Guide

More than 1 in 4 persons who divorced in 2008 were age 50 and older.1

upwards of 45% of marriages expected to end through divorce.¹ Divorce is not limited to young and inexperienced couples, either. The divorce rate among persons aged 50 and older has more than doubled between 1990 and 2008. In fact, one in four persons who divorced in 2008 were age 50 and older.¹ So if your client base skews older, divorce is as much of a threat to your

Planning for a

you can depend on

book as it is to financial professionals with a younger clientele. As a financial professional who works with couples, there is very good chance that at some point some of your clients will divorce. Setting expectations up front with

married couples is important, as is understanding your responsibility and how to work with couples going through a divorce. Being prepared to guide your divorcing clients not only provides them with confidence and great comfort in a most difficult time, but also can help minimize the risk and impact to your client’s future and to your practice. When a couple divorces, one ex-spouse usually stays with their financial professional while the other finds a new advisor. If the Financial Professional has spoken primarily (or only) with the husband, the ex-wives are likely shopping around for a new advisor.

The Opportunity The silver lining in the divorce of clients is that you have the opportunity to maintain one client rather than losing both. In addition, divorced women clients, in particular, can lead to referrals and a steady flow of business if you excel at helping divorced women transition to their new financial independence. That’s because women refer nearly twice as often as men and will likely refer their divorced friends to you if you are able to help them successfully navigate the process of becoming single again.

workbook

The following best practices were designed to provide helpful tips for working with couples, guidelines on how to navigate the divorce of clients, and steps to help the spouse who remains your client. ¹ Divorce in Middle and Later Life: New Estimates from the 2009 American Community Survey. Susan Brown and I-Fen Lin, Department of Socialology, Bowling Green State University.

myWorth

1. What is your current annual salary or net income from self-employment?

2. What is the estimated cash value of fringe benefits you earn at work, including insurance, employer retirement plan contributions, deferred compensation or other benefits?

Find co-hosts who offer non-competing products or services for the healthy and wise topics and your topic is on the wealthy component. Select topics that appeal to your guest demographic.

SucceSS Story:

Healthy – managing stress, food/diet, yoga, exercise, work/life balance, staying active in retirement or massage therapy.

What’S in your PurSe?

Wealthy – use the “myWorth Financial Evaluation” or “Retirement” workshops or speak on other topics that suit your audience like raising money smart kids, funding college education, budgeting for the sandwich years, making the most of Social Security and Medicare. Wise – antique or heirloom appraisals, career counseling, starting your own business, the art of negotiation, networking in the 21st Century, evolving family relationships, estate planning or bargains for seniors.

Worthwise Newsletter

5. What is the estimated annual income tax and payroll tax withholding on the amounts on lines 1 and 2 above?

$ $ $

8. Subtract line 7 from line 4 above. This is your “Net Annual Value to Your Family.”

This is your Human Life Value (HLV)

objective

To make connections with women in his community. Jeff wanted to send the messages, “I get your concerns” and “I want to empower you to take charge of Multiply line 8 by line 10. This HLV assumes no increase in your annual salary in the future. your financial future.”

When

Held on a Wednesday evening in June at 5:30 p.m.

Find a restaurant who serves high tea or a Japanese tea house or garden and invite your clients to bring their mother (or daughter) to enjoy tea and sandwiches. Invite a guest speaker to discuss ‘tea’ traditions throughout the world.

The event was held at Fortino Winery in Gilroy, California.

invitationS

Guests were invited via printed invitations that were mailed or handed out.

GueStS

Over 20 women attended.

DetailS

The theme of the event was What’s in Your Purse? Guests were invited to dinner and a retirement workshop. As guests arrived, they signed in and provided their emails and phone numbers, and were introduced to Jeff and his team, as well as to each other.

Factor 0.95

location

Years 9

1.86

2.72

3.55

Women producers may want to treat a group of women clients to a day or evening at a local spa. Some spas offer private parties and allow food and beverages to be brought into the facility. Make sure to schedule appointments in a way that allows you to spend some individual time with each guest as well as have group time for lounging, eating and talking. ed Company events

4.33

13 14

7.11 7.72 8.31 8.86 9.39

Years 17

Factor 11.27

11.69

19 20

Factor

14.09

14.38

12.09

14.64

12.46

14.90

12.82

13.16

Factor

16.00

34 35 36

16.19 16.37 16.55

16.71

16.87

5.79

10.38

13.49

15.59

17.02

6.46

10.84

13.80

15.80

17.16

15.14

Years

9.90

Years

5.08

Factor

15.37

Factors indicate present value based on a 5 percent annual discount rate.

Invite guests to a wine and dessert or cheese tasting event. Get your guests to relax and mingle by dividing them into teams (separate spouses) and have them taste a few wines at different stations and guess which wine they are tasting by the description given by the sommelier or on a card. Each member of the team that correctly guesses the most wines gets a gift.

Event Marketing Ideas

Time Value of Money Table Years

divine Wine and desserts ∆

A financial professional can help you determine HLV, assuming a rate of salary increase.

Invite guest speakers to talk about important and timely women’s issues like health care, work/family balance, pay equity or care giving and you speak on the importance of proper protection through life insurance, or retirement savings and longevity or being in financial control.

spa event ∆

6. How much do you estimate you spend annually on self-maintenance (i.e., your own food, clothing, recreation, personal needs, etc.)? 7. Add together lines 5 and 6 above.

motHer and daugHter tea ∆

Childcare, cooking, cleaning, shopping, budgeting, paying bills, etc.

4. Add together lines 1, 2 and 3 above.

9. How many years until your expected retirement? ________ years Jeff Orth of the Pacific Region held a dinner at a popular winery for women professionals and business owners who are active in his local chamber of commerce and community. 10. Use the number you indicted in question 9 to find and then enter the “Time Value of Money” Some of the guests were clients, but many were new prospects. factor from the table below.

Women’s issues ∆

nnnn

HealtHy, WealtHy and Wise ∆

3. What is the estimated value of your total non-monetary contributions to your household or family, including the cost to replace the work that you do for:

ideas

∆

Women’s events

HLV

Estimate Your Human Life Value

nnnn e vent m arketing

The following are a combination of ideas from producers, wholesalers, vendors and industry experts with experience in event marketing.

mixed Company events

The Risk Unfortunately there is an inherent risk to your practice when working with couples — the risk of divorce. The U.S. has the highest divorce rate in the world, with

Producer Guide

Level 2: Referrals n

Better or Worse

Most financial professionals work with couples, as well as with other market segments. Couples, married or otherwise committed, are common and they tend to have greater earning power than a single individual. And, in many cases, being a couple is the motivating factor for considering life insurance.

Your guide to planning for a life you can depend on

PM5663

page 1

09/12 | A2CD-0824-05E3

Jeff’s wife, Barbara - who serves as his director of client services, started the event by getting the ladies to relax and have fun playing What’s in Your Purse?—a game she created that cleverly illustrated how women are generally prepared for any emergency— except perhaps a financial one. The ladies voted for the woman who was most prepared for any emergency based on the contents of her purse, and the winner was awarded a small Vince Camuto handbag.

page 1

Customizable Educational Flyers Scripts

to Target

Women’s Organizations and Employers

Women

Level 3: Prospecting n

You can join or network with women’s groups and organizations, as well as employers in your community, by introducing them to Penn Mutual’s myWorth program and offering to provide financial education and planning resources to their

Targeting through Organizations and Employers Key talking points: members and employees.

∆

Despite the great strides American women have made over the last century, statistics with respect to their

∆

Penn Mutual has developed a program called myWorth, with the objective of providing much needed financial education to women and helping women take charge of their financial futures. I want to share this program and its vast resources with as many women in our community as possible.

Follow these three steps, whether you’re a male or female financiallack of financial preparedness are truly alarming. The majority of American women feel they are behind or professional, to identify and approach women’s organizations in haven’t yet started planning for their retirement.¹ your market. ∆ I am committed to providing women with the financial education, resources and advice to help them take

Step 1: Identify Potential Organizations and Employers

Take Our Financial Check-up to Find Out

1. Financial Flexibility

Start with Existing Connections

Check if “Yes”

when you have a connection. Your female COI may include existing clients and prospects, your spouse (for men), friends, relatives,

2. Adequate Protection

staff, neighbors or women with whom you attended school.

Do you have sufficient life insurance protection to maintain your family’s current lifestyle?

Ask these women: ∆ In which organizations are they involved and why?

If you were unable to work, do you have an alternative source of income to meet your financial obligations? If you’re 50 years or older, do you have a plan or policy to finance long-term care?

3. Growing Assets If yes, is it growing?

Are you saving at least 15% of your income?

5. Retirement

myWorth Workshops and Presentations

Do you know at what age you plan to retire? Do you have a retirement plan in place? If yes, have you reviewed your retirement plan in the last year?

6. Current Records & Policies Have you reviewed all your policies in the last year? Are your beneficiaries up-to-date on all your policies, accounts, annuities and other important documents?

F inancial Check-up Themed Trade Show

∆

Where did they go to college? Does their alumni club have a women’s networking group?

∆

Where do they work? How many women are employed there?

Then ask: ∆ What resources, programs, and activities do these organizations offer their members/employees?

Do you know your net worth?

∆

4. Healthy Ratios Is your debt-to-income ratio less than 30%?

control of their financial future and am looking for opportunities to do so for women in our community.

¹Penn Mutual’s Annual myWorth Survey, 2012

Who do your existing clients and female centers-of-influence (COI) know? It’s always easiest to gain access to an organization

Do you have at least 6 months of income set aside in case of an emergency?

∆

Unsure how to plan for a healthy financial future? I can help.

Asking Women Clients and Centers-of-Influence to Connect You to Women’s Organizations It’s been really great working with you on creating and implementing a financial plan to help you achieve your goals and dreams. You should be proud of the steps you’ve taken to protect your financial well-being and that of the people you care about most. Unfortunately, most women are not where you are when it comes to protecting their financial future. In fact, the majority of women are behind—or worse, haven’t even started—on saving for key goals, including their retirement. And women are so busy

For a description of the typical member/employee profile in terms of: life stage, marital status, work/career situation, today juggling careers and families that they have very little time to gain the financial knowledge they need to make important financial status and interests. decisions about their future and often put it off when it really should be a priority. To whom you should speak about providing financial education to women in that organization and if your COI would be I am committed to helping women take control of their financial future and have access to some excellent resources to able to make that introduction for you?

Identify National Organizations with Local Chapters

accomplish this through myWorth, a financial education program that Penn Mutual has designed for women. myWorth features a financial newsletter, as well as workbooks and workshops specifically for women. A key component of the program

You may also want to identify appropriate organizations in your market and then ask women you know if they isareWorthForWomen.com, affiliated or know a public web site offering lots of financial information for women at all life stages. of anyone in these organizations. Here’s a list of national organizations that may have a local chapter in your market. ∆ American Society of Women Accountants (http://www.aswa.org/)

Name Address Address City, State, Zip Phone email

∆

Have you reviewed your will in the last 3 years? Do you have a current living will and power-of-attorney in place?

What Does Your Score Indicate?

Total Boxes Checked for Financial Check-up

14-15 = Clean Bill of Health 10-13 = Follow-up Suggested 0-9 = Financial Evaluation Needed

Take charge...it’s your financial future

Positioning yourself as an advocate for women with a commitment to helping them gain financial literacy and independence is a noble cause that resonates well with women and those who care about them.

Women’s Bar Association of [your state or city]

∆

Women in Communications in [your state or city]

∆

National Association for Female Executives (http://www.nafe.com/?service=vpage/1474)

∆

National Association of Women Business Owners (http://nawbo.org/)

∆

The Association of Junior Leagues International, Inc.(www.ajli.org/)

∆

American Medical Women’s Association (www.amwa-doc.org/)

∆

Society of Women Engineers (www.swe.org)

∆

American Association of University Women (www.aauw.org)

The best way to get in touch with me is:

Mail Email Phone Yes, I’d like to learn more about planning for a healthy financial future. Yes, I’d like to receive the complimentary Worthwise® newsletter.

T ips for Targeting Women through Organizations and Employers

You’ll find these materials and a whole lot more on Producers Place. Click on the Marketing tab and myWorth is listed under Programs.

Personal Styles & Effective Performance – This book, written in 1981 by David W. Merrill and Roger H. Reid, laid the groundwork for most modern systems based on Social Styles. It contains examples showing how people demonstrate specific styles in their work and social behaviors. TRACOM Group Website – TRACOM is the Social Intelligence Company that Merrill and Reid formed

to promote Social Styles training. The site contains information on the company’s tools including the Social Styles Observation Checklist and Social Styles Connection White Papers. www.tracomcorp.com Social Styles on YouTube – You can learn the basics of Social Styles from a five-minute TRACOM video on YouTube. Google “TRACOM’s Social Style Model HD Version.” 13

marketing

How

Women

Can Boost Your Career

Recently, Mike Ross (New England Region) had the opportunity to speak at the annual conference of the Million

Dollar Round Table (www.mdrt.org), in front of over 750 attendees. MDRT is an organization that represents the top 1% of insurance and financial advisors in the world. During his presentation, he shared his experiences on marketing to women and how critical it is for advisors to pay attention to their women clients.

Leading Edge interviewed Mike to get his take on how women have provided a boost to his career, and how other advisors can do the same. Leading Edge (LE): What made focusing on your women clients a priority for you? Mike: Several years ago, I saw a presentation on the Penn Mutual myWorth program. It was then that I realized most of my best clients were women. And, they were the ones that I had the strongest relationships with and gave me the most referrals. After doing some research and engaging with Debbie Poley, Senior Marketing Manager of the myWorth Program at Penn Mutual, I learned that women control much of the nation’s wealth, earn high incomes, and are well educated and motivated to get a financial plan in place. Sadly, they’ve been underserved by our industry, but perhaps most importantly, many women tend to have longer life expectancies than men but have less saved for retirement (maybe due to wage inequality or taking time out of work to care for family members or children). That’s a major problem that I try to help my clients solve. After that call, I decided to set up a seminar for my female “A” clients and their guests. I ended up with a good number of clients attending and even better, almost all brought a friend. Most of the friends from that initial seminar are now clients. Today, I do a few women’s events each year and my practice keeps growing. LE: What are the benefits of working with women? Mike: First off, women refer over 22 people over the course of an average working relationship as opposed to 11 for men. 1 Women are also loyal if they’re happy clients who know and trust their advisor. If they think of you as their husband’s advisor, you’re in trouble. This is why it’s important to engage with both the husband and the wife when you’re working with couples. You don’t want to be part of the statistic that sites 70% of married women fire their financial advisor a year after their husband’s death 2 because they didn’t feel like they had a good relationship with their “husband’s” advisor. LE: What would you say to an advisor (most likely male) who doesn’t run a very women-friendly practice? Mike: I would suggest that they look at the above statistic and remember that most wives outlive their husbands. It’s not a great feeling to watch those assets that you’ve worked so hard

to build or that death claim that you delivered to a spouse get invested elsewhere. LE: What would you say to an advisor who doesn’t want to focus on a specialized market? Mike: I believe the thought of focusing on one particular market can scare some advisors and give them the false impression that they’ll be giving up additional business if they “specialize.” But, compare it to doctors. The ones who specialize on one type of medicine are typically in higher demand, and earn more, than a general practitioner. The same can translate to financial services. By specializing in the women’s market, my clients and prospects know that I have a greater understanding of the financial challenges that women face and I’m attracting new clients all the time as a result. I also still work with men; it’s just that the women that I meet through events and referrals are my typical entry point into the family. LE: What steps does an advisor need to take to start working in this market? Mike: Penn Mutual has an excellent myWorth program. I would encourage anyone interested in marketing to women to view the myWorth materials on Producers Place. myWorth is arranged into three levels to help advisors narrow down where to start and how to proceed in the women’s market. The idea is to start at Level 1 and make sure you’re positioned to retain and maximize your existing book of business. Level 2 features ideas and tools to increase referrals and introductions to your female client’s centers of influence through various events, educational offerings and the Worthwise newsletter. Level 3 is when you’re ready to prospect for women in specific occupations, life stages or other demographics you’re looking to work with, like women business owners, female medical professionals, pre-retirement age women or divorced women. There’s a wealth of producer and clients materials available in each level. The myWorth Matrix gives an overview of all that’s available, broken out by producer materials and client materials. ❖

Andrew Osterland, “Female clients more likely than men to make referrals”, Investment News, accessed 2012, http://www. InvestmentNews.com/article/20120424/FREE/120429972

2. Christie, Sherry and Mellan, Olivia. “Madame Ex: Advising ‘Gray Divorcees.’” Advisor One: http://www.advisorone.com/2012/09/25/ madame-ex-advising-graydivorcees.(2012)

competitve compensation and recognition

Randy C. Cowell:

Financial Professional of the Year When Randy C. Cowell, MS, CFP®, LUTCF, CRPC®, was named Penn Mutual’s Financial Professional of Year, he was standing near sea-level in Puerto Rico, at the 2015 Royal Blue Conference. But his heart and mind were focused on the mountaintop. Two months after Royal Blue, Randy set out to climb 19,000foot Mount Kilimanjaro, the tallest mountain in Africa. He had with him a Penn Mutual banner to unfurl at the summit and joining him was a film crew. “We are attempting to film a short documentary on Why We Climb Mountains,” he explains. 16

To prepare for the six-day climb, Randy went on a grueling pre-work training regimen of running, biking, weight-lifting and hiking up to eight miles, four or five times a week with a loaded backpack. Why did he decide to climb one of the world’s tallest the mountain at age 63? Randy’s answer is typically short and to the point: “To recommit to my family, friends, clients and of course God!”

Higher Mountains to Climb

Memphis in 1977 and spent nine years as an exploration

Each year, Penn Mutual’s Financial Professional of the

geologist. In 1986, faced with a cyclical depression in the oil

Year award recognizes an individual for extraordinary

patch, Randy decided to switch careers, joining the Hulse

commitment to continuing education and a high standard

Agency and Penn Mutual. However, in 1987, Penn Mutual

of ethics and performance in helping clients achieve

downsized its agency system in the western part of the U.S.,

financial security. To earn this award, recipients must

and the Hulse Agency affiliated with Sun Life of Canada for

demonstrate exceptional dedication to their clients and the

the next nine years, before returning to Penn Mutual in 1997.

financial services profession; be members of good standing

Two sources of continuity in Randy’s professional life since

of specific industry organizations; and have achieved a high

1986 have been his relationship with Mike Hulse and his belief

degree of sales success.

in helping his clients “get their financial houses in order.”

Randy has met and exceeded these criteria by constantly

“I am only in this business because people helped me

trying to climb higher mountains in his life and profession.

put my house in order,” he says. “I was a geologist in 1982,

He has built his own comprehensive financial services

when the oil and gas business was raging in Tulsa. Some

firm, ACT Financial Services, Inc., within Premier Advisors

guys came through and put on a presentation about how

Group (Hulse Agency) of the Penn Mutual career agency

to handle personal finances from a Biblical perspective. I

system. The Tulsa-based firm, which serves about 1,000

followed their advice and took steps to pay off debts and

clients, is a model for team-based selling, multi-generation

protect my family.”

succession planning, and effective client communication and education. He also is the author of a published book and monthly magazine columns on personal financial management, viewed from a spiritual perspective.

“In 1985, I found myself unemployed when the oil bust finally caught up with Oklahoma. Like my colleagues, I was out of work and became a consultant for a year, during which I earned $3,000 with two children at home. Because

Randy is a member of Penn Mutual’s Producer Advisory

my house was in order, I didn’t lose my marriage or home,

Council (PAC) and serves as Chairman of the Tri-Council

like a lot of my colleagues. When I finally decided to change

Communications Committee. In a career phrase some

careers, it hit me like a laser – financial services is what I

might call pre-retirement, he renewed his commitment

need to do. I believe I was called into this career, and I now

to continuing education, earning a Chartered Retirement

recognize that the nobility of our work is second only to

Planning Counselor® (CRPC) designation. Then, he used

being in the ministry.”

it to launch a whole new business, Premier Education Partners, with Matthew (“Matt”) Hulse, to deliver participant education to qualified retirement plans.

Tailoring the Message to Client’s Faith Randy and his ACT Financial Services team will help any client in need of financial guidance, but their approach

Putting the House in Order

varies with the client’s faith. “If you walk in our door and

Randy is the 21st winner of the Financial Professional of

are a believer, we can talk to you in a different way than if

the Year Award, and he is entering his 21st year with Penn

you are not. We help atheists, too, but we know they don’t

Mutual. A native of Memphis, TN, he graduated with

care what the Bible says about finances. So, we have to be

a Master of Science in Geology from the University of

sensitive. If a client wants to know what the Bible says about 17

"...we pour time and energy into each one, and we keep our clients for life"

The Best of Both Worlds The Tri-Council Communications Committee, which Randy chairs, is charged with serving as the “voice of the advisor” for over 6,000 advisors

investing, life insurance, or property and casualty (p&c) insurance, it’s all in there and we know what it says.”

who place business with Penn Mutual in either the Career Agency System or Independence Financial Network

“Our knowledge of the Bible helps to position who we are, especially in Tulsa, the buckle of the Bible belt. If you’re looking for a stock jockey to analyze your portfolio, go somewhere else. But if you’re looking for a protection planner, you may want to take a

him new perspectives on advisors’ relationships with Penn Mutual.

look at us.”

“Penn Mutual is a unique life insurance

A Multi-Generation Business Succession Plan

company because the 15 Tri-Council

At age 63, Randy says he has penciled in age 70 as a possible

committees have representatives from

retirement age, and his multi-generation business succession plan

both distribution channels. Usually,

already is falling into place. “I still really enjoy what I’m doing. But

independent advisors are out there doing

now, my son Justin has joined our business and Kent Thiessen, our VP of Operations, has been working with me the last six years, so we are moving in that direction. I’m a Baby Boomer, Kent is a Gen

their own thing. Penn Mutual treats them just like career advisors. They sit

Xer, and Justin and other people in our office are Millennials, so

side-by-side at conferences, and bring

we can talk the language of any client. We have tried to do that

innovative ideas to committees, because

intentionally, so clients can relate to us no matter where they are

they can work with any company and

in life.”

they see it all. You get the best of both

“We don’t take on many clients in a given year, but we pour time

worlds when career and independent

and energy into each one, and we keep our clients for life. We visit

minds come together. It’s one reason why

them in the hospital when they are sick. When I signed on to this

Penn Mutual offers some of the most

business, I didn’t know I would one day be sitting at a bedside of a

innovative products in the industry.”

dying husband, who was looking up at me saying about his wife: ‘She’s your responsibility now.’ It’s an awesome responsibility, but if you take it to heart, there is no greater profession.” ❖

channels. He says this role has given

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marketing

Three Ways You Can Support

The Penn Mutual Center for Veterans Affairs

In 2011, Penn Mutual made a $2.5 million donation to create The Penn Mutual Center for Veterans Affairs at The American College. Its mission is to provide educational support and career opportunities to eligible men, women and their spouses who have served in the U.S. armed forces. The Center was established in 2012. On Veterans Day 2013, Ted Digges became its full time Executive Director. Ted was a recently retired Navy Captain with 27 years of military service, and was completing a stint with Merrill Lynch prior to arriving at The American College. 20

On May 7, 2015, the Center awarded its 100th scholarship to attend The American College. It went to Rachel Lucas of Pompano Beach, FL, a U.S. Navy veteran, independent insurance agent, and single mother of four children. It will pay all of her expenses in pursuing the Chartered Life Underwriter® (CLU®) designation at The American College. The 100th-scholarship milestone coincided with other important developments at the Center. To help you understand them, Leading Edge recently interviewed Ted. He emphasized that every person in the Penn Mutual organization can make a positive contribution to the Center in three ways, which you will learn about in this article.

A Progress Report In just its third full year of operation, the Center has achieved industry visibility and financial stability. It now has 18 corporate sponsors and almost $4 million of trust corpus to use in awarding scholarships. In the first half of 2015, the Center achieved a 300% year-over-year growth rate in scholarship awards, and it is on pace to reach the $1 million mark in cumulative scholarship commitments by mid-2016. "When the Center was formed, our goal was to receive 30 applications per quarter and award scholarships to half of applicants,” Ted says. “We hit that metric in August of 2014, and we are now seeing about a 20% growth in applications from quarter to quarter, with the award of about one scholarship per week. I also am pleased by the diversity of our scholarship applicants based on gender, age, ethnicity and service background. About 75% are male and 25% female. 80% are younger than age 40. I have also seen a noticeable rise in the number of female and spouse applicants over the past year.” The fund-raising momentum, combined with the nearly $4 million in trust, has allowed the Center to set a new goal. In 2015, Ted says his vision is to operate the Center where there is enough money in the trust corpus to pay all operating expenses of the Center. This allows 100% of new fund-raising to go toward current and future scholarships.

Another 2015 goal is to expand education counseling and career placement services for veterans. Many retiring veterans are eligible for the Post-9/11 GI Bill program, which can pay up to four years of college costs at participating universities. “Veterans often have the option of delegating their Post-9/11 GI Bill benefits to a spouse or children,” says Ted. “When they want to attend The American College, we may counsel them to apply for a scholarship from the Center and save their GI Bill benefits for another family member. We also can help them take advantage of Veterans Administration benefits.” He adds: “As the Center moves into its fourth year, we are seeing more scholarship recipients graduate from The American College and look for suitable job opportunities in financial services. We are developing our placement services right now, starting with Penn Mutual and our other corporate sponsors, and we will be seeking mentoring and internship opportunities, as well as employment.” You can read an informative article on the Center’s career development services for veterans, published by the Wealth Channel: http://veterans. theamericancollege.edu/about To learn more about how you can hire veterans in your office, see the related article in this issue of Leading Edge. Also, check the Resources tab on the Center’s website, which provides access to a growing list of career opportunities for vets: http:// veterans.theamericancollege.edu/news-and-gouge/resources

A Call to Action: Three Ways You Can Help Ted invites every person in the Penn Mutual organization to support the Center in one or more of three ways: 1) referring scholarship applications; 2) recommending a candidate for the Center’s annual Soldier-Citizen Award; 3) financially supporting the Center by becoming a donor or attending the Center’s annual Clambake fundraising and networking event. 21

Scholarships

Any active or retired member of the U.S. military and their spouse are eligible to apply for a scholarship from the Center. Ted says all scholarships are full and cover tuition and fees (less company reimbursements) for any professional designation program at The American College and also the Master of Science in Financial Services (MSFS) and Master of Science in Management (MSM) degree programs. The average award is $6,000 for a designation program and $30,000 for the Master programs. The Center evaluates six criteria for scholarship awards: 1) military service status, 2) financial need, 3) accomplishments, 4) academic potential, 5) the quality of recommendations, and 6) extenuating circumstances. The only knockout criteria is military service status, but it can be met in several ways including active service, honorable discharge in the past five years, being a disabled veteran, being retired from the military with 20+ years of service, or being a spouse of a qualified candidate. Any candidate who is eligible for tuition support from an employer should exhaust those benefits before applying for a scholarship from the Center. Ted emphasizes that age is not a criteria, and the Center welcomes applicants from spouses of eligible veterans. “Our scholarship applicants have ranged in age from 19 to 60. Retirement from military service is a life phase event that can be a major change for everyone in a family, and many times it is the vet’s spouse who has the opportunity to jumpstart a career. Recently, about 10% of our scholarship awards have gone to spouses.” To learn about the Application Process, look on the Center’s website under Admissions & Scholarships. To access the Application Form, click on the “Apply” red button.

Soldier-Citizen Award

In 2014, The American College established the SoldierCitizen Award to recognize individuals in the financial services industry who have made significant contributions to the U.S. military, their communities, or societies. The award celebrates sacrifice, success and service. In August of 2014, the Center announced the first recipient of the award – Admiral Joe Prueher, a retired four-star admiral with the U.S. Navy and former Ambassador to the People’s Republic of China (1999 to 2001). The 2015 recipient will be General Ralph “Ed” Eberhart. He is a retired four star General who was Commander, North American Aerospace Defense command (NORAD) during 9/11. He is currently the President and Chairman of Armed Forces Benefit Association, a life insurance organization serving members for over 70 years. He will receive the award at a ceremony during the Clambake (see below) in August. Ted says anyone can nominate a candidate for the award through a tab on the Center’s website that stays open from January 1 of each year through Memorial Day.

Donations and Clambake Attendance Ted invites everyone at Penn Mutual to make a donation to the Center if they wish.

You also are invited to attend the Center’s premier annual fundraising event, the Clambake. This year’s Clambake is the second, and like the first it will be held at the Grand Geneva Resort and Spa, a deluxe lakeside resort. The dates are August 20-21. Registration is $400 and proceeds are used for the Center’s scholarship fund. Why Lake Geneva? “One of our advisory board members, Michael Corey, has a home on Lake Geneva and was

Come ROCK with Penn Mutual at the

2015

National Training Symposium

Sheraton Nashville Downtown Hotel

instrumental in helping to set up the Clambake,” says Ted. “The location is in the backyard of Chicago. Although it’s a little out of the way for East Coast and West Coast people, the resort and scenery are worth the trip. It’s also becoming a great industry networking event with world class entertainment and, of course, the presentation of the annual SoldierCitizen Award.”

September 29 - October 2

Mark your calendar now for our best meeting yet!

Penn Mutual Is Proud of the Center’s Success In a short time, the vision that Penn Mutual and The American College together developed for the Center has been realized by operational success and scholarships awarded. We are very involved in the Center’s growth, with three Penn Mutual people serving on its Advisory Board:

What to expect at this years NTS:

n T homas

H. Harris, CLU, ChFC, FLMI, Executive Vice President, Distribution J ames J. (“Jim”) Meehan, MSM, Managing Partner, 1847Financial lida Moose, PhD, Senior Vice President, A Chief Human Resources Officer

The 2015 NTS is a three-day event that can help you enhance your sales skills with immediate actionable ideas from dynamic outside speakers and some of the most successful advisors in the industry. You’ll be amazed at where you can take your practice by attending.

You can be involved, too. To learn more about the Center, check out a video of a little over three minutes in length, featuring Jim Meehan: http://veterans.theamericancollege.edu/about Then, take Ted up on one or more of his three calls-to-action! ❖

Guest Speaker Ed Slott, America’s IRA Expert, speaks about how to stand out from the competition n Guest Speaker Craig Duswalt, Former Guns & Roses Band Manager, “How to be a Rockstar in Our Industry” n Session on “How to Get Things Done in Less Time” n Using Social Media as a Financial Advisor with Expert Amy McIlwain n 4 CE Sessions n Hear Dave O’Malley and Ray Caucci speak in Executive Panel n Learn from your Peers in Producer Panel Discussions n Bring your laptop/tablet to learn best kept secrets in your Technology Toolbox n

...and much more!

www.pennmutual.com/NTS2015

marketing

f o s t e c a F y n a T he M e v i t a i t i n I y b g u R s ' Penn Mutual

In September of 2014, Penn Mutual announced

the pitch, another story was unfolding off the

a new sponsorship to support two national

pitch. It is about the remarkable strides Penn

rugby events as title sponsor. In May of 2015,

Mutual has made in building an integrated

the initiativeâ&#x20AC;&#x2122;s first cycle culminated with

multi-faceted program around its involvement

on-the-field competition for the Penn Mutual

in rugby. Already, the program has many

Collegiate Rugby Championship (CRC) on May

offshoots producing positive results for Penn

30-31 at PPL Park near Philadelphia and the

Mutual, its offices and aadvisors. This article

Penn Mutual Varsity Cup on May 2 in Salt Lake

summarizes events surrounding the CRC

City. As fast-paced as the rugby action was on

competition in Philadelphia.

Keep in mind: All of this happened in the first eight

teams participating. During both receptions, Eileen

months of a multi-year Penn Mutual sponsorship

introduced Jessica Choi, AVP, Talent Acquisition &

of rugby. It’s still early in the game for you to

Diversity, to underscore the company’s desire to

participate!

recruit college athletes. “During both receptions,

Integration of Three Goals – CRC-related events helped to tie together three goals Penn Mutual

it was fabulous to see the lines of people that kept coming up to Jessica and talking to her on an individual basis,” says Leanne. “It showed that rugby

wanted to achieve when it entered the rugby

players are interested in Penn Mutual as a

sponsorship. According to Leanne Acton,

company and place of employment.”

AVP, Conferences, Recognition and

Additionally, Tom Harris, EVP

The

Program Marketing, they are: 1) brand awareness and visibility;

Distribution at Penn Mutual hosted

more I

2) recruiting, with a primary target

two other receptions the same day.

learn about

of attracting the next generation

At one reception, Tom participated

rugby and the

of advisors; and 3) lead generation

in a panel discussion alongside

people I meet

and sales.

USA 7s National Team Coach,

through rugby, the Leanne adds: “During the CRC, it was very rewarding to see Penn

more I appreciate

Mutual’s name up on stadium banners and to be driving down the highway seeing Penn Mutual

what a great sport and community

Loves Rugby on a billboard. The more I learn about rugby and the people I meet through rugby, the more I appreciate what a great sport and community it is.”

Recruiting Receptions – On the Friday night before the weekend CRC competition, Penn Mutual Chairman, President and CEO Eileen C. McDonnell hosted two receptions – one for the men’s National Small College Rugby Organization (NSCRO) teams and another for the CRC women’s

it is.

Mike Friday where hundreds of rugby coaches at all levels and from across the country attended. At the other reception, Penn Mutual hosted the Navy and Air Force teams where

Tom Manion, the father and member of the board of directors for the Travis Manion

Foundation spoke to the group and gave out signed copies of his book, “Brothers Forever.”

Small College Sponsorship – Days before the CRC, Penn Mutual announced a major expansion in its rugby initiative, a multi-year agreement with the National Small College Rugby Organization (NSCRO). NSCRO, now powered by Penn Mutual, represents 40% of all colleges playing rugby in the U.S., more than 300 teams in total. Under its agreement with 25

his teammates, who appreciate not only his onfield skills but also his professional knowledge.

Record Attendance – In its sixth year, the CRC reported record attendance of 25,000, and Penn Mutual was visible to every attendee. One Penn Mutual career agency, Professional Economic Growth Group of Edison, NJ (DePaola/ NSCRO,

Esposito Agency), sent a contingent of field

Penn Mutual will sponsor

leaders and advisors to join the CRC crowd.

the NSCRO Men’s 7s national championship, held in conjunction with the CRC, as well as other NSCRO

According to Rebecca N. Dunne, Managing Director

men’s and women’s national championships on a

of the agency, “Rugby is America’s fastest growing

multi-year basis.

team sport, and until I went to CRC, I did not realize how huge rugby has become. No matter where you

In announcing the agreement, Eileen McDonnell

looked, you saw Penn Mutual, and everyone I talked

said: “Our Top Sponsorship of NSCRO deepens our

to appreciated Penn Mutual’s national support of

already strong connection with the growing and

rugby. It was clear that this is a great relationship for

loyal rugby community. We are less than a year into

Penn Mutual to have going forward.”

our relationship with rugby, and we are thrilled by the reception we’ve received. We want to help grow

You can see the CRC highlights video reel, including

this amazing sport in America, and our partnership

a brief video interview with Eileen McDonnell, here:

with NSCRO will help do that.”

www.youtube.com/watch?v=LcGYCOaLIlw

TV Commercials – Penn Mutual received national

Agency Sponsorships – PEGG has developed

exposure with its new TV commercials that aired

strong interest in rugby because it is pursuing

during 11 hours of coverage on NBC, NBCSN and

local rugby club sponsorships, especially with

Comcast SportsNet Philadelphia. In one two-spot

women’s teams, as part of its recruiting efforts. For

sequence, a millennial Penn Mutual advisor has a

example, PEGG recently helped to send the Rutgers

tough time getting appointments, until he walks

University women’s rugby club team to the National

onto a rugby club and becomes a valuable player.

Championship Finals in Denver, CO, where it finished

Doors swing open, giving the advisor a chance to

sixth in the nation.

discuss financial planning and protection issues with 26

Talia M. Manzo, Director of Marketing for PEGG,

Participant could record their own efforts to score

says the agency formed the relationship by reaching

a “try,” rugby’s version of reaching the end zone in

out to the team’s coach, Ken Pape. “We created a

football, and many fans participated. You can see

signed sponsorship agreement with the club, and

video results: www.pennmutual.com/rugby

Ken understands that we are interested in recruiting female athletes to Penn Mutual. He has identified 10 graduating seniors who could be candidates to join Penn Mutual, full-time or as interns, and we are planning to have a career day in the agency for them. They wore tee-shirts with the PEGG logo at the National Championship and brought a PEGG banner to the game.”

Video Spirit – Penn Mutual created and sponsored a Show Your Rugby Spirit Video Contest, in which teams across the United States competed to develop the best video showing passion for the sport. The winner, announced in conjunction with the CRC, was the Kansas City Blues, who won $5,000 in rugby equipment donated by co-sponsor Rhino Rugby. You can see the winning video here: http://pennmutual.

Valuable Publicity – Penn Mutual increased

appbuilder.spredfast.com/fbcontests/showentry/

corporate visibility with positive press reports

Show-Your-Rugby-Spirit-1/474152/474152

relating to its support of rugby. In an online interview with Eileen C. McDonnell, iSports Times’ Tanner Simkins wrote: “In sports, the Insurance category is one of the most valuable and most competitive when one thinks of sponsorship. Liberty Mutual, Allstate, Farmers, and Geico all spend big bucks in the battle to engage consumers through the window of sport. But Penn Mutual? The highly successful suburban Philadelphia-based company has never gotten into the sports game, until now, and

Teammates for Life – Penn Mutual’s 2014 Annual Report, Teammates for Life, prominently featured rugby photos along with messages from Penn Mutual advisors and associates who have participated in rugby, emphasizing to potential recruits the advantages of teaming with Penn Mutual for the long run. Several Penn Mutual agencies have begun to use Teammates for Life as a banner for their own recruiting programs.

they have done it in a rather unique way to try and

A Famous Spectator – The most famous

reach and entertain select consumers and engage

spectator at the CRC was Mark Cuban, the

millennials who may be looking to both purchase

charismatic owner of the Dallas Mavericks basketball

products and find a career path.”

team and caustic “shark” on the TV series Shark

You can read the full interview: www.isportstimes. com/articles/11969/20150602/penn-mutual-scoredrugby.htm

Virtual Rugby Experience – Penn Mutual invited fans attending the CRC to participate in rugby through a virtual video experience called Give It a Try.

Tank. Cuban was sporting an Indiana University (IU) rugby jersey and rooting for the Hoosiers, the team for whom he played during his college days. You can hear the back story, about how he played rugby for IU during the 1970s and was thrown out of a game for fighting, in a CRC NBC TV interview: www. nbcsports.com/rugby/mark-cuban-flashes-back-hisrugby-days 27

More importantly, Cuban has become a visible

who participates in the CRC and exemplifies Penn

patron and supporter of U.S. rugby at all levels.

Mutual’s values of integrity, commitment and

Joe Jordan – How did Penn Mutual and rugby get together? The question was answered in an online interview with Susan M. Cooper, CLU, ChFC, CFP, CDFA, CAP, CEO of Empire Wealth Strategies (Cooper Agency), published by LastWordonSports. An excerpt: “Rugby was introduced to Penn Mutual two years ago by Joe Jordan, a rugby player with a life insurance career and now a motivational speaker, whom Eileen [McDonnell] knew from the insurance industry. Jordan was aware that United World Sports (UWS) did not currently have title sponsors of their rugby properties, the Collegiate Rugby Championship (CRC) and the Varsity Cup. UWS via Jordan approached Penn Mutual with the offer to be a title sponsor of these events.” Joe Jordan was an active participant in events surrounding the CRC. You can read the informative interview, entitled Penn Mutual Embodies Rugby’s Values, here: http://lastwordonsports.com/2015/06/23/ penn-mutual-embodies-rugbys-values

Life of Significance Award – A few days before the CRC, Penn Mutual announced Midshipman First Class David Schroeder of the U.S. Naval Academy as winner of the inaugural Penn Mutual Life of Significance Award. Penn Mutual will give the award annually to a collegiate rugby player 28

respect, while making substantial contributions to society and their community. The award was inspired by Joe Jordan’s book, Living a Life of Significance, which focuses on positive impacts the life insurance industry has on society.

Teamwork in the Agency – One of the most compelling Penn Mutual stories in connection with the CRC involved a team of four advisors, all of whom have rugby backgrounds and traveled together from Houston to Philadelphia to attend the event. The team was built by producer Scott Blackley, Sales Manager, Wealth Development Strategies (Creuzot Agency), Houston, to leverage rugby friendships into business success. In addition to Scott, it consists of three CareerBuilders – Kristian Heinrich, Jason Molina and John Scheurich. Says Scott: “We’ve been playing club rugby together in the Houston area since 2008. When you know you can count on somebody on the rugby field, the trust carries over into business.” While the four advisors were in Philadelphia for CRC, they had an opportunity to tour Penn Mutual’s headquarters and meet home office people. Scott has a deep background in rugby, having helped to form the school rugby team at Angelo State University, San Angelo, TX, in 1998. He says; “Typically, in collegiate rugby we have not seen many sponsorships in the past. It was nice that Penn

"...WHEN YOU KNOW YOU CAN COUNT ON SOMEBODY ON THE RUGBY FIELD, THE TRUST CARRIES OVER INTO BUSINESS.”

Mutual had enough outside-the-box thinking to see

With the positive results Penn Mutual and some

this as an up-and-coming sport, and at the CRC we

agencies have already generated in rugby, you don’t

saw the Penn Mutual name everywhere. Rugby is a

need to go with your gut. Just visit our rugby portal

sport in which people don’t forget affiliations. It’s

at www.pennmutual.com/rugbypitch to access tools

a big family and we support each other. Millions of

and templates for leveraging sponsorship success.

people may not yet know what Penn Mutual does, but now they know our name, and also that Penn Mutual loves and supports rugby.” Wealth Development Strategies is active as a sponsor

Then, look for great partners in your market to align interests and maximize results. Finally, align your efforts with Penn Mutual’s three corporate goals: brand building,

of club rugby teams, including the Houston Athletic Rugby Club (HARC) Women’s Sevens Team.

Partners Are Essential In CRC-related interviews, Eileen McDonnell candidly admitted that Penn Mutual made the decision to sponsor rugby without having access to the kind of hard data and facts that companies usually require for a corporate-level sponsorship. As she told iSports Times: “The rugby decision has surpassed our expectations but looking back we didn't have a lot of information to go on. We went with our gut, that was key...I think adding great partners to the

recruiting, and sales – and remember that

mix is important. For us, those partners were United

men’s and women’s Rugby Sevens will be a visible

World Sports and NBC. We have been able to deliver

new sport in the 2016 Olympic Games. Your rugby

on promises to one another because we aligned

opportunity is yet young! ❖

interests to maximize results.”

Presorted Standard US Postage PAID Princeton, NJ Permit #159

The Penn Mutual Life Insurance Company P.O. Box 178 Philadelphia, PA 19105-0178

2016 Conference Destinations

EDINBURGH

BANFF SPRINGS

SCOTLAND

CANADA

2016 Golden Eagle Conference Balmoral Hotel Edinburgh, Scotland June 22-26, 2016

2016 Royal Blue Conference Fairmont Banff Springs Hotel Banff Springs, Canada March 2-6, 2016

Visit the Penn Mutual Conference website for more information: www.pennmutualconferences.com