for producer use only. not for distribution to the public. a fresh approach to building your...

For producer use only. Not for distribution to the public.

A FRESH APPROACH TO BUILDING YOUR BUSINESS

Mark StuevenNational Sales Director

CRB 175 0713


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


Income Protection Option (IPO)


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


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


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


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


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


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


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?


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


Income Protection Option

• Economical

• Simple

• Gives Control to Policy Owner Death benefit payout options

Flexible


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?”


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


Small Business Triple Play


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%


Challenges for Businesses

PWC Saratoga Human Capital Effectiveness

Small Businesses80%

• Decreased unemployment is increasing voluntary turnover

• Workers have more career options


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.


Target Market

Small Businesses Who Want:

• To retain key employees

• To select who benefits

• Little to no administration costs

• Tax deductions



Employee Benefits

Income replacement1

Safety net2

Long term care protection3



TransACE® with the LTC Rider

Income replacement1

Safety net2

Long term care protection3


Small Business Triple Play Example

InWorks, Inc.

• Computer repair business

George, Head of IT

• InWorks’ most valuable employee


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



During Working Years

George recognizes income

InWorks, Inc. Annual Bonus TransACE® with the LTC Rider

TransACE® Annual Premium


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


TransACE®

with the LTC RiderMultiFlex Surrender Endorsement

$211,820

Small Business Triple Play: MSE

At Retirement - age 65 (year 20)

Safety Net

George


Small Business Triple Play: LTC Rider

Throughout his Lifetime

TransACE®

with the LTC RiderLong Term Care

Benefits


George


Small Business Triple Play Benefits

Small Business

Retain Employee in Competitive Environment

Tax Deduction

Valuable Benefit to Employee

Employee

Income Replacement

Safety Net



A Fresh Approach to Building Your Business

Income Protection Option

• A sales tool that provides families with guaranteed monthly income replacement.


• A unique solution using life insurance to solve the challenges of employee retention facing business owners.


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


Thank you!

for producer use only. not for distribution to the public. a fresh approach to building your...

Documents

income slide

markettrends slide

guaranteed income stream

employee turnover slide

guaranteed income strategy

loved ones slide

career options slide

year high slide