© Legal & General Assurance Society

Q18772 June 2008

This presentation is in a ‘read-only’ format and should

not be changed in any way.

This is not a consumer advertisement. It is intended for use by professional advisers and should not be relied upon by private investors.

Legal & General Assurance Society LimitedRegistered in England No. 00166055Registered Office: One Coleman Street London EC2R 5AAA member of the Association of British Insurerswww.legalandgeneral.com

Closing the Protection Gap

2008

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Making the most of 2008

Sales Tips

Our journey:

Selling Protection

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Sales tips

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Handling objections

Why objections occur Other sales solutions

1.Incomplete fact-finding

2.Client confusion, genuine reasons

3.Client doesn’t understandwhat’s in it for them

1.Up-sell where it’s appropriate

2.Identify client buying patterns

3.Regularly review your client bank

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Sales tips to use with your client

For example – no cover at all in place

Your client’s responsibility

Mortgage £600Council tax £100

Utilities £ 90

Childcare £530Telephone £ 30

Mobile £ 60Car expense £ 80Food £350Day to day £300Insurances £ 60

Total £2,200

Legal & General’s responsibility

NILOr it could

be...

“If your partner died, what would your responsibilities be?”

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Sales tips to use with your client

For example - only have mortgageprotection cover in place

Your client’s responsibility

Mortgage £600Council tax £100

Utilities £ 90

Childcare £530Telephone £ 30

Mobile £ 60Car expense £ 80Food £350Day to day £300Insurances £ 60

Total £1,600

Legal & General’s responsibility

NILOr it could be

..

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Sales tips to use with your client

Your client’s responsibility

£18.73 a month* for the chosen term

Legal & General’s responsibility

To provide a monthly benefit to cover your monthly expenses of

£2200

*£18.73 a month is based on a healthy female 35 years next birthday, non smoker with £2,200 per month, Family and Personal Income Plan (FPIP) for 25 years with optional waiver of premium benefit (Quote date: 16/03/2008)

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Sales tips to use with your client

“YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT

KEEP UP THE REPAYMENTS ON YOUR MORTGAGE”

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Sales tips to use with your client

The vicious circle

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Sales tips to use with your client

The vicious circle… or is it?

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Sales tips to use with your client

£1,000 £10,000

£100,000

£1,000,000

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Sales tips to use with your client

Comparing to subscription television.

As an example:

* Based on a healthy male, 35 years next birthday, non smoker, Family and PersonalIncome Plan (FPIP) for 25 years with optional waiver of premium benefit (Quote date: 17/03/2008).

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Sales tips to use with your client

Comparing to subscription television:

As an example:

* Based on a healthy male, 35 years next birthday, non smoker, Family and PersonalIncome Plan (FPIP) for 25 years with optional waiver of premium benefit (Quote date: 17/03/2008).

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Selling protection

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Selling protection

A loan arranger or a salesman…?

• People want to buy houses

• People need mortgages

• Mortgages are sourced and arranged

• People need protection

• People rarely want to buy protection

• Protection needs to be sold

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Selling protection

• “I can research the market to secure you the cheapest premium….”

x

advise…don’t ‘arrange’

The client needs to appreciate what role you perform in this and the benefits of your professional advice and relationship.

The bigger belief they have in you, the stronger belief they will have in your recommendation.

Supermarkets and websites will sacrifice commission based on their low overheads to ensure the best rates in the marketplace.

They can ‘arrange’ life productscheaper than you can.

How do you approach ‘The Sale’?

• Qualified professional

• As an adviser:

– that will carry out a fact find to identify fully the clients needs

– that will advise andrecommend how to address these needs

– that is here for the long term

Sell yourself first as a…

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Aerobics for Advisers

• A member of your family has suffered a critical illness?

• You have a close friend who has suffered a critical illness?

• You have a work colleague who has suffered a critical illness?

• You have a ‘friend of a friend’ who has suffered a critical illness?

Hands up if:

Critical Illness Recovery

Approximately two in three patients will eventually leave hospital, yet survival does not necessarily mean a return to

full health

Source: British Journal of Hospital Medicine, 2008

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Claims

Average age for a cancer claim = 43

Average age for a heart attack claim

= 47

Average age for a Multiple Sclerosis claim= 39

Average age for a stroke claim = 43

Average age of a Legal & General claimant = 45

Source: Legal & General Claims Department, 2008

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Claims

• Legal & General paid out £110,100,00 million in critical illness claims in 2007

• The total number of claims paid was 1805

• The average claim payout was £60,000

• The largest claim payout was £500,000  

Source: Legal & General Claims Department, 2008

• The top five reasons, accounting for 86% of all claims paid, in 2007 were:

– Cancer (50.2%)

– Terminal illness(17.5%)

– Heart Attack (8.9%)

– Stroke (5.3%)

– MS (4.4%)

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Claims

Death claims

Critical illness claims

Year Amount paid% of claims

paid

2005 £163.8 million 96.4%

2006 £165 million 96.6%

2007 £179 million 96.3%

Year Amount paid% of claims

paid

2005 £83 million 79.4%

2006 £92.1 million83.3% (up

4.9%)

2007 £110.1 million88.2% (up

5.8%)Source: Legal & General Claims Department, 2008

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Awards

‘Life Insurer of the year’ by British Insurance Awards

‘Best Term Assurance Provider’ by Financial Adviser Life & Pensions Awards ‘Best Life Assurance Provider’ by Financial Adviser Life & Pensions Awards

‘Best Protection Provider’ by Financial Adviser Life & Pensions Awards

‘Best Protection Provider’ by Mortgage Solutions Online Technology Awards

Awarded ‘Best Service Provider’ by the LifeSearch Awards

Just some of the awards we have won over the last 12 months

Awarded ‘Best Life Provider’ by the Money Marketing Awards

‘Best Life Assurance Provider’ by Professional Adviser Awards

‘Best Critical Illness Provider’ by Moneyfacts Awards

Awarded ‘Most Competitive Term Assurance IFA Provider’ by Moneyfacts Awards

Awarded ‘Best Critical Illness Provider’ by Moneyfacts Awards

Awarded ‘Best Protection Service’ by Moneyfacts Awards

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The earnings potential

It is essential you focus on treating customers fairly –implementing the FSA’s initiative into your core business processes

The earnings potential

There is an excellent opportunity to increase your number of life (plus critical illness cover) sales increasing your commission whilst benefiting the client and their protection needs.

This is a huge opportunity for you to grow your business and expand the market.

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Remember…

A client is never going to come in and ask for as much cover as possible.

It is down to you, the adviser, to sell this proposition and the benefits to the client so they understand what they have and the importance of it.

Thank you