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

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Slide 2 Adding Value Always Do an FNA! Slide 3 Adding Value Budget Sheet Slide 4 Slide 5 Adding Value Do a Financial Recomendations Sheet Slide 6 James M. Martinson National Sales Director Primerica Financial Services Insurance Marketing, Inc. Insurance offered through: Primerica Life Insurance Company Executive Offices: Duluth, Georgia Representing PFS Companies Securities offered through: PFS Investments Inc. Member NASD and SIPC Home Office: Duluth, Georgia 30199-0001 (404) 381-1000 1.Adequately Insure Your Familys Financial Future. Replace your income. Jims Recommendations: You are currently on Track! 2.Help to Fund your childrens 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 IRAs - (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 Family Financial Independence, A Step by Step Process Please refer to Important Information Notes in Your FNA for further explanation. 1025 S. Moorland Rd Site 600 Brookfield, WI 53005 Bus. 262-789-7767 Immediate Actions: Life Coverage to Fully Protect Family._X_ $330 / $330 Roth IRAs___ / 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 IRAs___ / 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 Slide 7 Killing Cash Value Slide 8 Insurance Analysis - Old policy Pros- 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 policy Pros- Current coverage - $250K and $150K (50K more on Kharons 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 Company A E lo x n e zo c hi u er t a i rc v hy e cd O /PP f T f /1 i. c 8l e ife s in : su D ran u ce l p u ro t c h es, s/f G ina e nc o ia r lr g ec i o a mmendwlifeinssample Securities offered through: PFS Investments Inc. Member NASD and SIPC Home 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. Thats 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 Thats an extra $4,976! (Comparing with Primerica Life). Cons- Primerica Life Extra $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) Slide 9 The Rule of 72 The Power of Compound Interest This simple calculation gives you the approximate number of years it will take to double your investment. 72 3% = 24 YEARS 24 YRS = $20,000 48 YRS = $40,000 Start with a $10,000 Initial Investment Start with a $10,000 Initial Investment Mutual Fund 72 12% = 6 YEARS 6 YRS= $20,000 12 YRS = $40,000 18 YRS = $80,000 24 YRS = $160,000 30 YRS = $320,000 36 YRS = $640,000 42 YRS = $1.2 Million! Slide 10 PLAN A PP/US/33633/7.06/V4.0/01PFS324-30 1.Average0-5% Intereston Your Savings. 2.6-8% Fee to WithdrawYourMoney. 3.6 Months to Defer Your Money. 4. They Keep All Your 1st Year Deposits. 5.IfYouDie, They Keep All Your Savings. Slide 11 PLAN B PP/US/33633/7.06/V4.0/01PFS324-30 1.Average 7-25% Interest on Your $$$. 2.No FeetoWithdrawYourYourMoney. 3.Receive Your Money within 7 Days by Law. 4. 1st year Deposits are Credited Immediately. 5.IfYou Die, Your Family Gets Your Savings. Slide 12 3 Different Types Of Life Insurance A RTA RT 100,000 $155 $150 $175 $200 $250 $ UL VUL Slide 13 3 Different Types Of Life Insurance DTDT $150 100,000 +10,000 110,000 90K 80K 70K 25K $ W L x 100,000 Slide 14 3 Different Types Of Life Insurance L TL T $50100,000 30 Years Slide 15 Agent makes more $ Slide 16 1.Mortality and Expense Risk Charge -.00002455 2.Collection Fee - $3.00 3.Monthly Policy Charge - $7.50 4.Surrender Charge - $17.64 per $1,000 or Specified Amount. 17.64 x 250K policy = $4,410 5.Loan Interest Rate - 5.2% 6.Loss of Savings if you die. 7.Reduction of Death Benefit if there is any outstanding loans. 8.Assets of Sub-account is the property of the company. 9.They can defer payment of a loan to you for up to 6 months. 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. Slide 17 Slide 18 Slide 19 Slide 20 Slide 21 Slide 22 Slide 23 Slide 24 Slide 25 Slide 26 Slide 27 Slide 28 Slide 29 Slide 30 Slide 31 Slide 32 Slide 33 the bs urnauzed gun oozing which put Capital top of its class. sse are one-seventh of igh far a soio manager ga $50 billion nrnd:;1] the Month;0] resumptive new todays low Inflation cnergyprlces: ipation is of fund watcher to do? C1ea,y, theres f, flK.II 4,_But night now wt,isw er In a word,yes. Heres why: Variable un*eisac ite----the most conimon!y sold variabe policytodaygivesyou liFe insurance hi combinaon wiEh tax-sheltered invcsL merits for retirement But it - does neitherjoh welL Thgs because mostvariable policies are extremely axpensiveand bewil.edatcpilmoycglirhedruhmsre-taistroF, sasa 15 oIyourfirst-year premium may go to pay sales costs, jremiLrn taxes. and ot heerexpenses, accord- irig tojim Hunt, ills insur an cc actua ry for the Consumer Federator ot ArneriYou also Face annual chargesforthecost ofinsurance,which vary widely, and asset manag emer Fees, which can totat 15% or more anriuaJly. AN those fees sxplainwhy advisers [oveto pilcb VUL and thy most people should avoid the poUcies. Mforthpromised tax free withdrawals in your retirement, well, theyre real[yjust lodnsagainst the policy, and they remain tag free onlyas long asthe policyisin Force. Inihe evenithat your vhdrriwas and a bad niarkc conspire to shrink your account so owth3t ft doesnt cover your insUrance chargesyou may Fuve o keep paying prnaim s for Ion ger tha you expected. lithe policy lapses,yourgainswould becometaxableaordi nary income rates. IIyou life in sura nce, b uy a low-cost term policy. And Ioryour reLirement savings. stick with your 401(k) ortax managed mutual funds. Mv?dviserwants usto investourmoneyinavariablq ft insurance plan, where wean avoid taxes. uId it be betterto buyterm Ufe insurance and Pa. invest in mutual funds? Keck,Three Jason Springs, Slide 34 Slide 35 Why "Return of Premium" Term Life Insurance Is No Free Lunch An insurance offer that's too good to be true By Marina Krakovsky on September 21, 2010 Ever been offered a "Return of Premium" rider? Since the 1990s, life insurance companies have been offering these special riders on top of term life insurance. Often called ROP (perhaps as opposed to RIP), the riders work in a seemingly straightforward way. If you die before the term of the policy (normally 20 to 30 years), you receive a death benefit (or at least your beneficiaries do). That part is traditional. But because of the rider, if you live past the term of the policy, instead of losing the premiums you've already paid the insurance company pays you back every penny you paid in. There are a couple of gotchas. For starters, the premium is usually higher than that of the standard term life insurance, which means the rider isn't free. Now, you might not care about that since the idea is that you can recover everything at the end. The problem is that you're not getting everything at the endyou're losing any interest you would have earned on the money had you invested it yourself. And that includes not only interest on the rider-related premiums, but also interest on the basic term policywhich without the attractive-sounding rider you might not have bought in the first place. The insurance company, meanwhile, holds on to the money you're putting in over the course of 20 to 30 years and pockets the investment gains, paying out a portion to those lucky customers who outlived their policies. This loss of interest is the hidden cost of such a rider. Not only that, but if you do indeed die during the term of the policy, your ne