For producer use only. Not for distribution to the public.
A FRESH APPROACH TO BUILDING YOUR BUSINESS
Mark StuevenNational Sales Director
CRB 175 0713
For producer use only. Not for distribution to the public.
Sales Opportunities
For producer use only. Not for distribution to the public.3
Sales Opportunities
Young Families
• Families with children
• Working couples
• Single-income households
• Single-parent households
Small Business Owners
• Want to protect their business from unexpected events
• Loss of key employee
• Cost associated with employee turnover
For producer use only. Not for distribution to the public.
Income Protection Option (IPO)
For producer use only. Not for distribution to the public.
How much life insurance do your clients need?
• LIMRA 2011: The number of households that are uninsured or underinsured is at a 50-year high
For producer use only. Not for distribution to the public.
Reasons for Buying Life InsuranceBuyers vs. Nonbuyers
0% 10% 20% 30% 40% 50% 60%
22%
23%
26%
37%
56%
Percent of Nonbuyers
Policy too expensive/could not afford premium
Afraid of making wrong decision
Couldn't decide on policy type/coverage amount
Don't know enough
Not finished shopping
0% 10% 20% 30% 40% 50% 60% 70%
20%
23%
34%
60%
64%
Percent of Buyers
Income replacement
Guarantee mort-gage paid
Burial and final expenses
Transfer wealth
Funds for college
2010 Trends in the United States, LIMRA Fact Book MarketTrends
For producer use only. Not for distribution to the public.
Effective Fact Finding: 3 Questions
What is the monthly income stream required for your spouse to continue to run the household?
2 Would you like a lump
sum set aside for college expenses, for your kids, retirement for your spouse or a wedding for your daughter?
3 If you die tomorrow, how much is needed to satisfy outstanding debt and any other final expenses?
1
FOCUS ON LOVED ONES
For producer use only. Not for distribution to the public.
Guaranteed Income Strategy:Income Protection Option (IPO)
What is the monthly income stream required for your spouse to continue to run the household?
2 Would you like a lump
sum set aside for college expenses, for your kids, retirement for your spouse or a wedding for your daughter?
3 If you die tomorrow, how much is needed to satisfy outstanding debt and any other final expenses?
1
5 – 25 years / $100 min.$10,000 min. $10,000 min.
Guaranteed Monthly Income Stream
Initial Lump Sum
FinalLump Sum
For producer use only. Not for distribution to the public.
Guaranteed Income Strategy:Income Protection Option (IPO)
5 – 25 years / $100 min.$10,000 min. $10,000 min.
Guaranteed Monthly Income Stream
Initial Lump Sum
FinalLump Sum
• Available at no additional premium cost
• May include multiple beneficiaries
• Can be modified prior to the death of the insured
• A portion of each monthly payment and a portion of the final lump sum are reportable as interest income
For producer use only. Not for distribution to the public.
Client Profile• John, 37, married to Ann, 35
• 2 children aged 10 and 8
• John is a business manager and Ann is a nurse
Income Protection Option Scenario
For producer use only. Not for distribution to the public.11
Income Protection Option Scenario
Concerns• Will his family have enough to
help cover living expenses if something happens to him?
• How can he help ensure the financial security of his spouse and kids for the future?
For producer use only. Not for distribution to the public.
Trendsetter ® Super policy on John with the IPO*
Family Need Initial Lump SumGuaranteed Monthly
Income (15 Years)Final Lump Sum
Ann(Spouse)
$50,000 $1,500
Amy(Child)
$ 500 $25,000
James(Child)
$ 500 $25,000
Total $50,000$2,500 / month(for 15 years)
$50,000
Monthly Premium: $36.90Total Face Amount: $446,025
Total Income Protection Option Payments: $550,000
*Trendsetter Super 20, Male, 37, Preferred, Nonsmoker
Solution: Trendsetter® Super with the IPO
For producer use only. Not for distribution to the public.13
Income Protection Option
• Economical
• Simple
• Gives Control to Policy Owner Death benefit payout options
Flexible
For producer use only. Not for distribution to the public.14
IPO Talking Points
Producer Presents Benefits to Client:
• “Let’s build a family protection plan.”
• “With all the economic uncertainty, we can create a guaranteed income stream for your family.”
• “What could your loved ones do with an extra $500/mo? $1000? $2000?”
For producer use only. Not for distribution to the public.
IPO Calculator on Mobile App
Available Marketing Tools: Income Protection Option (IPO)
IPO on TransWare® Flyer IPO Consumer Brochure IPO Consumer Flyer
IPO Calculator on iPad App
http://m.lifesales.transamerica.com
For producer use only. Not for distribution to the public.
Small Business Triple Play
For producer use only. Not for distribution to the public.17
Business Owners: What is at stake?
• Number of businesses in the U.S. is 5.7 million
• 90% are small businesses (fewer than 20 employees)
Source: 2010 County Business Patternshttp://www.census.gov/econ/susb/
Small Businesses90%
For producer use only. Not for distribution to the public.18
Challenges for Businesses
PWC Saratoga Human Capital Effectiveness
Small Businesses80%
• Decreased unemployment is increasing voluntary turnover
• Workers have more career options
For producer use only. Not for distribution to the public.19
Employee Turnover
• Wage and salary workers = 4.6 years of median tenure1
• 75% of an organization’s top performers leave the company within 3 years2
• Replacement costs range from60% to 200% of an employee’sannual salary3
1US Dept. of Labor: Bureau of Labor Statistics, Employee Tenure Summary released September 2012.2http://www.forbes.com/sites/danschawbel/2011/11/22/whos-at-fault-for-high-gen-y-turnover/2/3Society for Human Resources Management, Executive Brief: Differences in Employee Turnover Across Key Industries.
For producer use only. Not for distribution to the public.20
Target Market
Small Businesses Who Want:
• To retain key employees
• To select who benefits
• Little to no administration costs
• Tax deductions
For producer use only. Not for distribution to the public.21
Small Business Triple Play
Employee Benefits
Income replacement1
Safety net2
Long term care protection3
For producer use only. Not for distribution to the public.22
Small Business Triple Play
TransACE® with the LTC Rider
Income replacement1
Safety net2
Long term care protection3
For producer use only. Not for distribution to the public.23
Small Business Triple Play Example
InWorks, Inc.
• Computer repair business
George, Head of IT
• InWorks’ most valuable employee
For producer use only. Not for distribution to the public.
Small Business Triple Play Example
Deciding on Benefits:
Income Replacement Safety Net
Long Term Care Protection
$6,500/mo for 15 years
or$5,000/month
for 20 yearsor
$4,000/month for 25 years
Up to face amountMaximum $1M in benefits
$158,865 in year 15
or$211,820
in year 20 or anytime after
year 25
$5,000/month for 20 years
$211,820 available at retirement (age 65)
Up to face amount of $907,089
For producer use only. Not for distribution to the public.
Small Business Triple Play
During Working Years
George recognizes income
InWorks, Inc. Annual Bonus TransACE® with the LTC Rider
TransACE® Annual Premium
For producer use only. Not for distribution to the public.
Small Business Triple Play: IPO
If George Passes Away
TransACE® with the LTC Rider
Income Protection Option $5,000/month for 20 years
George George’s Family
Income Replacement
For producer use only. Not for distribution to the public.
TransACE®
with the LTC RiderMultiFlex Surrender Endorsement
$211,820
Small Business Triple Play: MSE
At Retirement - age 65 (year 20)
Safety Net
George
For producer use only. Not for distribution to the public.
Small Business Triple Play: LTC Rider
Throughout his Lifetime
TransACE®
with the LTC RiderLong Term Care
Benefits
Long Term Care Protection
George
For producer use only. Not for distribution to the public.
Small Business Triple Play Benefits
Small Business
Retain Employee in Competitive Environment
Tax Deduction
Valuable Benefit to Employee
Employee
Income Replacement
Safety Net
Long Term Care Protection
For producer use only. Not for distribution to the public.30
A Fresh Approach to Building Your Business
Income Protection Option
• A sales tool that provides families with guaranteed monthly income replacement.
Small Business Triple Play
• A unique solution using life insurance to solve the challenges of employee retention facing business owners.
For producer use only. Not for distribution to the public.31
This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here.
Trendsetter® Super 20 (Policy Form No. 1-304 11-107) is a term life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids IA 52499. Premiums increase annually beginning in year 21 for the 20-year policy. Policy forms and numbers may vary, and this policy may not be available in all jurisdictions. Insurance eligibility and premiums are subject to underwriting.
TransACE® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form No. ICC12 UL07 or UL07 (CVAT), Long Term Care Rider Form No. ICC 12 LTCR02 or LTCR02. Policy and rider form and number may vary and this policy and rider may not be available in all jurisdictions.
Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.
Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects.
Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of July 2013.
CRB 175 0713
For producer use only. Not for distribution to the public.
Thank you!