adding value… always do an fna! adding value… budget sheet

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Page 1: Adding Value… Always Do an FNA! Adding Value… Budget Sheet
Page 2: Adding Value… Always Do an FNA! Adding Value… Budget Sheet

Adding Value… Always Do an FNA!

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Adding Value

… Budget Sheet

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Adding Value… Do a Financial

Recomendations Sheet

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James M. MartinsonNational Sales Director

Primerica Financial ServicesInsurance Marketing, Inc.Insurance offered through:Primerica Life Insurance CompanyExecutive Offices: Duluth, Georgia

Representing PFS Companies

Securities offered through:PFS Investments Inc.Member NASD and SIPCHome Office: Duluth, Georgia 30199-0001(404) 381-1000

1. Adequately Insure Your Family’s Financial Future. Replace your income. – • Jim’s Recommendations: You are currently on Track!

2. Help to Fund your children’s College Education - $652 per month. • This will provide for an average 4 year college for Nick, Heather & Grant.

3. Provide for Legal Protection - $35 to start and $25 per month. • Unlimited access to a respected law firm to protect your legal rights, property & person.• Make sure you have a WILL in place.

4. Consider Long Term Care to protect your net worth. – See FNA.

5. Get Financially Independent. • Emergency Fund - Liquid Money Market: Goal: $10,000 in money market account.• Wealth Building Fund-(401K/ROTH IRA/TSA/SEP/Def comp/VA) • High Growth Asset Allocation: Bottom Line: $967 more per month. • That will help you to accumulate the $3 Million you need to retire at age 55. • Start ROTH IRA’s - (Tax free money) • John $330 monthly – 12% / 30 yrs = $1.1 million!• Mary $330 monthly – 12% / 30 yrs = $1.1 million!

• Auto & Home Insurance Quote: 877-855-8111

Financial Recommendations for: The Smith FamilyFinancial Independence, A Step by Step Process

Financial Independence, A Step by Step Process

Please refer to Important Information Notes in Your FNA for further explanation.

1025 S. Moorland RdSite 600

Brookfield, WI 53005Bus. 262-789-7767

Immediate Actions:• Life Coverage to Fully Protect Family._X_

• $330 / $330 Roth IRA’s___ / College Education $652 monthly___• Long term care protection___ / $25 Consider Legal Protection___

• Auto & Home Insurance Quote___• Earn part-time income with Primerica.

Immediate Actions:• Life Coverage to Fully Protect Family._X_

• $330 / $330 Roth IRA’s___ / College Education $652 monthly___• Long term care protection___ / $25 Consider Legal Protection___

• Auto & Home Insurance Quote___• Earn part-time income with Primerica.

AlonzoHierarchycd/PPT/1.7salesprocess/financialrecommendsample

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Killing Cash Value

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Insurance Analysis - Old policyPros-•Mike Current coverage - $250K•$33.91 per month.•Guaranteed for 10 years level term policy•Kharon Current coverage - $100K•$11.46 per month.•$10 per month less money•Guaranteed for 10 years level term policy

Insurance Analysis - Primerica policyPros-•Current coverage - $250K and $150K•(50K more on Kharon’s policy)•Guaranteed re-insurability.•In 10 years, only $107.5 per month to sustain.•In 20 years, only $327 per month to sustain.•Terminal illness rider at no extra cost.•Increasing benefit rider.•Personal financial analyst to assist you to your financial goals.•Complimentary FNA.•Guaranteed premiums.•Largest company in the world. (Secure claims paying ability)•Guaranteed coverage to age 95.

•Total cost for $250K + $150K = for 10 years = $54•Total cost for $250K + $150K = for 15 years = $68•Total cost for $250K + $150K = for 20 years = $84

Representing PFS Companies Please refer to Important Information Notes (page17,18 in Your FNA) for further explanation. Primerica Financial Services Insurance Marketing, Inc. Insurance offered through: Primerica Life Insurance CompanyAEloxnezochiuertaircvhyecdO/PPfTf/

1i.c8leifesin:suDranucelpurotches,s/

fGinaencoiarlrgecioammendwlifeinssample

Securities offered through: PFS Investments Inc. Member NASD and SIPCHome Office: Duluth, Georgia 30199-0001 (404) 381-1000

•Cons- Old policy•No guaranteed re-insurability.•No increasing benefit rider.•In 10 years, price jumps to $331 per month to sustain.•If you do qualify and keep this policy for 11 years:•The first year of renewal $3,975.•In 20 years, price jumps to $816per month to sustain.•That’s an extra $2,691! (Comparing with Primerica Life).•If you do qualify and keep this policy for 21 years:•The first year of renewal $8,900•That’s an extra $4,976! (Comparing with Primerica Life).•Cons- Primerica LifeExtra $9 per month. (10 yr) / (Over 10 years = $1,080) Extra $23 per month. (15 yr) / (Over 15 years = $4,140)Extra $39 per month. (20 yr) / (Over 20 years = $9,360)

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The Rule of 72The Power of Compound Interest

This simple calculation gives you the approximate number of years it will take to double your investment.

72 ÷ 3% = 24 YEARS24 YRS = $20,00048 YRS = $40,000

Start with a $10,000 Initial Investment

Start with a $10,000 InitialInvestment

Mutual Fund72 ÷ 12% = 6 YEARS6 YRS = $20,00012 YRS = $40,00018 YRS = $80,00024 YRS = $160,00030 YRS = $320,00036 YRS = $640,00042 YRS = $1.2 Million!

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PLAN A

PP/US/33633/7.06/V4.0/01PFS324-30

1. Average 0-5% Interest on Your Savings.

2. 6-8% Fee to Withdraw

Your Money.

3. 6 Months to Defer Your Money.

4. They Keep All Your 1st Year Deposits.

5. If You Die, They Keep All Your Savings.

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PLAN B

PP/US/33633/7.06/V4.0/01PFS324-30

1. Average 7-25% Interest on Your $$$.

2. No Fee

to Withdraw Your Money.

3. Receive Your Money within 7 Days by Law.

4. 1st year Deposits are Credited Immediately.

5. If You Die, Your Family Gets Your Savings.

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3 Different Types Of Life Insurance

A R T100,000

$155

$150

$175

$200

$250

$

U LVUL

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3 Different Types Of Life Insurance

D T

$150

100,000

+10,000

110,00090K

80K70K

25K$W L

x100,000

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3 Different Types Of Life Insurance

L T$50 100,000

30 Years

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Agent makes more $

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1. Mortality and Expense Risk Charge - .000024552. Collection Fee - $3.003. Monthly Policy Charge - $7.504. Surrender Charge - $17.64 per $1,000 or

SpecifiedAmount.

17.64 x 250K policy = $4,4105. Loan Interest Rate - 5.2%6. Loss of Savings if you die.7.Reduction of Death Benefit if there is any

outstandingloans.8. Assets of Sub-account is the property of the

company.9. They can defer payment of a loan to you for up

to 6months.10.One withdrawal per year.11.Surrender charge for 15 years.12.Pro rata decrease charge for 15 years.13.Processing fee of 2% to withdraw money.

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W h y " R e t u r n o f P r e m i u m " T e r m L i f e I n s u r a n c e I s N o F r e e L u n c h A n i n s u r a n c e o f f e r t h a t ' s t o o g o o d t o b e

t r u eB y M a r i n a K r a k o v s k y o n S e p t e m b e r 2 1 , 2 0 1 0 E v e r b e e n o f f e r e d a " R e t u r n o f P r e m i u m " r i d e r ?

S i n c e t h e 1 9 9 0 s , l i f e i n s u r a n c e c o m p a n i e s h a v e b e e n o f f e r i n g t h e s e s p e c i a l r i d e r s o n t o p o f t e r m l i f e i n s u r a n c e . O f t e n c a l l e d R O P ( p e r h a p s a s o p p o s e d t o R I P ) , t h e r i d e r s w o r k i n a s e e m i n g l y s t r a i g h t f o r w a r d w a y . I f y o u d i e b e f o r e t h e t e r m o f t h e p o l i c y ( n o r m a l l y 2 0 t o 3 0 y e a r s ) , y o u r e c e i v e a d e a t h b e n e f i t ( o r a t l e a s t y o u r b e n e f i c i a r i e s d o ) . T h a t p a r t i s t r a d i t i o n a l . B u t b e c a u s e o f t h e r i d e r , i f y o u l i v e p a s t t h e t e r m o f t h e p o l i c y , i n s t e a d o f l o s i n g t h e p r e m i u m s y o u 'v e a l r e a d y p a i d t h e i n s u r a n c e c o m p a n y p a y s y o u b a c k e v e r y p e n n y y o u p a i d i n .

T h e r e a r e a c o u p l e o f g o t c h a s . F o r s t a r t e r s , t h e p r e m i u m i s u s u a l l y h i g h e r t h a n t h a t o f t h e s t a n d a r d t e r m l i f e i n s u r a n c e , w h i c h m e a n s t h e r i d e r i s n ' t f r e e . N o w , y o u m i g h t n o t c a r e a b o u t t h a t s i n c e t h e i d e a i s t h a t y o u c a n r e c o v e r e v e r y t h i n g a t t h e e n d .

T h e p r o b l e m i s t h a t y o u ' r e n o t g e t t i n g e v e r y t h i n g a t t h e e n d — y o u ' r e l o s i n g a n y i n t e r e s t y o u w o u l d h a v e e a r n e d o n t h e m o n e y h a d y o u i n v e s t e d i t y o u r s e l f . A n d t h a t i n c l u d e s n o t o n l y i n t e r e s t o n t h e r i d e r - r e l a t e d p r e m i u m s , b u t a l s o i n t e r e s t o n t h e b a s i c t e r m p o l i c y — w h i c h w i t h o u t t h e a t t r a c t i v e -s o u n d i n g r i d e r y o u m i g h t n o t h a v e b o u g h t i n t h e f i r s t p l a c e . T h e i n s u r a n c e c o m p a n y , m e a n w h i l e , h o l d s o n t o t h e m o n e y y o u ' r e p u t t i n g i n o v e r t h e c o u r s e o f 2 0 t o 3 0 y e a r s a n d p o c k e t s t h e i n v e s t m e n t g a i n s , p a y i n g o u t a p o r t i o n t o t h o s e l u c k y c u s t o m e r s w h o o u t l i v e d t h e i r p o l i c i e s . T h i s l o s s o f i n t e r e s t i s t h e h i d d e n c o s t o f s u c h a r i d e r .

N o t o n l y t h a t , b u t i f y o u d o i n d e e d d i e d u r i n g t h e t e r m o f t h e p o l i c y , y o u r n e t d e a t h b e n e f i t ( t h a t i s , t h e i n s u r a n c e p a y o u t m i n u s t h e p r e m i u m s y o u 'v e p a i d ) w o u l d b e s m a l l e r t h a n u n d e r a t r a d i t i o n a l t e r m l i f e i n s u r a n c e p o l i c y .I f y o u r u n t h e n u m b e r s , y o u ' l l s e e t h a t o n a v e r a g e , y o u ' r e b e t t e r o f f i n v e s t i n g t h e m o n e y y o u r s e l f . T h i sI n v e s t o p e d i a a r t i c l e s h o w s t h e m a t h .S o w h y d o e s t h e R O P r i d e r s e e m a p p e a l i n g t o i n s u r a n c e b u y e r s ? W e c a n t h i n k o f s e v e r a l r e a s o n s : .

*T h e A p p e a l o f t h e F r e e L u n c h . T h e w a y t h e p o l i c i e s a r e m a r k e t e d , t h e y s o u n d l i k e f r e e i n s u r a n c e b e c a u s e i f y o u d o d i e y o u g e t a p a y o u t a n d i f y o u d o n ' t y o u g e t y o u r m o n e y b a c k . B u t a s w e 'v e s h o w n , i f y o u l o o k c a r e f u l l y a t t h e n u m b e r s t h i s " f r e e l u n c h " w i l l c o s t y o u . W e s u s p e c t t h a t b e c a u s e o f l i m i t e d t i m e o r t h e l i k e , m a n y i n s u r a n c e b u y e r s w o n ' t b o t h e r t o r u n t h e n u m b e r s .

*R i s k A v e r s i o n . T h i s , o f c o u r s e , i s t h e s a m e r e a s o n p e o p l e b u y i n s u r a n c e a t a l l . A n d a s w e d e s c r i b e i n o u r c h a p t e r o n u n c e r t a i n t y , y o u c a n c a p i t a l i z e o n p e o p l e 's a v e r s i o n t o r i s k i n s e v e r a l w a y s , s u c h a s o f f e r i n g w a r r a n t i e s o r g e n e r o u s r e t u r n p o l i c i e s . B u t f o r t h e p e r s o n w h o 's e x t r e m e l y r i s k a v e r s e , m e r e i n s u r a n c e i s n o t e n o u g h , s o w i t h R O P r i d e r s , i n s u r a n c e c o m p a n i e s g o a s t e p f u r t h e r : e l i m i n a t i n g t h e d o w n s i d e r i s k o f d e a t h — a n d o f l i f e . W h a t 's m o r e , s i n c e a n y k i n d o f i n v e s t m e n t c a r r i e s s o m e r i s k , i n s u r a n c e c o m p a n i e s a r e b e t t i n g t h a t y o u a r e m o r e w i l l i n g t o g i v e u p u n k n o w n f u t u r e e a r n i n g s ( o n m o n e y y o u c o u l d o t h e r w i s e i n v e s t y o u r s e l f ) t h a n t o g i v e u p m o n e y a l r e a d y i n y o u r p o c k e t .

*L o s s a v e r s i o n . P e o p l e w h o l o o k i n t o t e r m l i f e i n s u r a n c e k n o w t h a t t h e o d d s o f d y i n g b e f o r e t h e t e r m o f t h e p o l i c y a r e p r e t t y l o w . B e c a u s e o n l y a b o u t 7 p e r c e n t o f p o l i c y h o l d e r s d i e b e f o r e t h e e n d o f t h e i r p o l i c y ' s t e r m , c u s t o m e r s k n o w t h e r e 's a h i g h c h a n c e t h a t b u y i n g a t e r m l i f e i n s u r a n c e p o l i c y i s j u s t t h r o w i n g m o n e y a w a y . A n d p e o p l e h a t e l o s i n g m o n e y : l o s s a v e r s i o n ( a s o p p o s e d t o s i m p l e r i s k a v e r s i o n ) m e a n s t h a t a l t h o u g h y o u m i g h t l i k e t o g a i n a d o l l a r , y o u h a t e l o s i n g a d o l l a r a l o t m o r e . S i n c e t h e R e t u r n o f P r e m i u m r i d e r e n s u r e s a g a i n s t t h e l o s s o f p r e m i u m s , i t c a n s e e m l i k e a n a t t r a c t i v e o p t i o n — e v e n i f i t ' s r e a l l y a p o o r d e a l .

C o p y r i g h t K a y - Y u t C h e n a n d M a r i n a K r a k o v s k y ,

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2 Different Types Of Cheap Life Insurance

• Accidental Life Insurance

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How it worksCompany will pay out death benefit only if the clients death is caused by an accident.Death Certificate must indicate thatthe cause of death was an accident.Only .09% of these policiesin force actuallypayout.Because of all these facts, is the reason why Accidental Life Insurance is so inexpensive.

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2 Different Types Of Cheap Life Insurance

•Group Life•Insurance

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How itworksNo access to a knowledgeable

representative. No consideration of your financial needs. The policy may offer guaranteed coverageonly as long as your employment continues.Annual Renewable Term, ART, is the most common form of group products, but it doesn’t usually come with guaranteed premiums. This means the insurer has the right to increaseyour premiums at will.

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How it worksGroup Life Insurance coverage is usually limited to 2X your annual salary which is well below the recommended amount of coverage for the average family.

Group life insurance: is purchased through an employer or organization, often it is controlled by that employer or organization.

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Why Primerica Life A licensed Primerica rep works with you to choosethe coverage that meets your needs.We offer affordable premiums that are guaranteed for the term of the policy. This helps you control your costs.We do not limit the coverage you can apply for, making it possible for most families to secure coverage which is 8-10 times their annual income, asmost experts recommend.Once issued as long as the payments is kept current, your policy remains in effect as regardless of changes in your health.Your Primerica policy is portable . You take it wherever you go, regardless of your employment status.

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Why Primerica Life Guaranteed re-insurability.

IBR: Increasing benefit rider, with this benefit a client has the option of increasing his death benefit by 10% regardless of health.

Only clause is suicide: But after 2 years client may commit suicide & Primerica will pay the death claim. (Committing suicide is not recommended but it is another option.)

FNA: a comprehensive Financial Needs Analysis to help you get your financial house in order, from debt to retirement and more.

Death Benefit payout is 5X industry average.

Highly rated: AM Best A+, Standard & Poor’s AA

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How we get paid

$ 80 a month

80 X 12 – 75(policy Fee) =885

885 X .50(District) X .75 (advance) = $331

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4 - $80/mo sales MonthlyRep = 25% = $663.00

Dist = 50% = $1,327.00 Div = 60% = $1,593.00 Reg = 70% = $1,858.00 RVP = 110% =$2,920.00+ Bonuses, Equity & Ownership

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As a Full Timer 12 $80/mo Sales- Monthly

Rep = 25% = $1,989.00Dist = 50% = $3,981.00Div = 60% = $4,779.00Reg = 70% = $5,574.00RVP = 110% =$8,760.00+ Bonuses, Equity & Ownership