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1 | Dare to Soar

This Issue:

LIFE INSURANCETaking Sales to New Heights

Reserve National Insurance CompanyA Kemper Life & Health Company

DS-1

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A Note from the EditorWelcome to the first issue of Dare to Soar! This publication is for you and about you. Included are insurance sales and marketing concepts, plus those ever so important tips from the field! I would like to thank those who took the time from their busy schedules to talk with me and share their stories of success in life sales. I know you will find their insights helpful.

We want your stories and ideas! The next Dare to Soar theme will be “On the Road to Success” and focus on business-building strategies. We will be asking managers to tap into their teams’ knowledge and share what is working to drive sales and grow the agency. We are looking forward to sharing these ideas in our next issue!

Jody Colatrino

FEATURESCONTENTS | IN THIS ISSUE

Life Insurance.Who Needs It?

4 Whether or not a person earns an income, chances are they need life insurance.

L.I.F.E. A Simple Needs Analysis Concept

4 out of 10households

would immediately have trouble meeting expenses1


would have trouble after several months meeting expenses2

Most households today rely on two incomes. In the event of the death of a wage earner, according to LIMRA:

12Conducting a simple needs analysis with clients.

Exploring the

Final Expense Market

26 The final expense market is huge and great for life insurance sales.

14Helpful tips from a pro on selling life insurance.

Young Agents

IN THIS ISSUE:

7 Surprising U.S. Life Insurance Statistics

8 Facts Tell. Stories Sell.

10 Designating a Beneficiary

19 Power Phrases

22 It’s Still Life Insurance

30 Take Time for an Annual Review

34 Chronic Illness and Long-Term Care

For Agent Use Only. Not For Use in Sales Presentations.

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Andy SchallhornPresident

Andy SchallhornPresident

As you read through our first issue of Dare to Soar you will recognize that life insurance is virtually an untapped and underserved market. 50 percent of U.S. households (58 million) say they need more life insurance and 30 percent have no life insurance at all according to LIMRA, an association that provides research, consulting, and other services to the insurance industry worldwide. And despite the attempts by companies to reach potential life insurance buyers through worksite, direct sales, call centers, and the Internet, millions of potential households are not being reached.

What a great opportunity for Reserve National.

And there is more. Studies continue to show that non-face-to-face methods to sell life insurance fail to attract and reach many of the underinsured households. We have some of the best face-to-face, relationship-building agents in the industry.

Also, many consumers don’t feel comfortable making what they see as a very important and complex decision on their own. They want to buy from someone they trust, who will provide them with the information they need to decide what and how much to buy. Reserve National agents are committed putting their clients first and focused on providing solutions.

Finally, two out of three adults think life insurance is too expensive. However, they overestimate the true cost by two times.* Reserve National policies are marketable, affordable and have features consumers want.

This issue of Dare to Soar offers ideas and presents ways you can reach and sell to potential life insurance buyers, including your current clients. Millions of people are looking for someone they trust to help them make that important decision about life insurance. Who better than you?

What a great opportunity for YOU! Don’t miss out on it.

* SOURCE: 2014 Insurance Barometer Study, Life Happens, and LIMRA

Kemp ColeSenior Vice President, Marketing andAgency Director

Senior Vice President, Marketing andAgency Director

I am excited to present our first issue of Dare to Soar. This publication was created as part of our ongoing effort to provide training and marketing ideas to help you build success.

Our first issue is focused on Reaching New Heights with Life Sales. While reading the content I found there to be a common thread throughout the articles and stories...to get a life insurance sale you have to start the conversation. Once you open up that discussion, things happen!

This issue is packed with ideas on how to present life insurance, closing techniques, target markets, and worksheets to help clients calculate final expenses. Also, check out the Power Phrases on page 19 – I think you’ll like them!

Likewise, one key purpose of Dare to Soar is to energize your teams by having a conversation. I encourage you to sit down as a group to review and discuss the material in these quarterly publications. When you meet, ask questions and think about how you can leverage these ideas to create new sales opportunities and improve your performance.

Just as an eagle spreads its wings and climbs to amazing altitudes, I want you to be open to exploring new ideas and be committed to taking your life sales to new heights. Dare to soar.

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Life Insurance.Who Needs It?

25%

40%

30%

25% of households rely on group life

insurance alone for �nancial protection.

These households would lose their only coverage in the case

of a layo� or termination.

Among families with minor children, 40% say they’d immediately have trouble paying everyday expenses without the primary wage-earner’s income.

Another 30% would be in �nancial trouble after several months.

25%

40%

30%

25% of households rely on group life

insurance alone for �nancial protection.

These households would lose their only coverage in the case

of a layo� or termination.

Among families with minor children, 40% say they’d immediately have trouble paying everyday expenses without the primary wage-earner’s income.

Another 30% would be in �nancial trouble after several months.

The American College of Financial Services, a non-profit educational institute dedicated to training and development for financial services professionals, includes the following list in their training materials concerning life insurance:

Source: The American College of Financial Services, The Many Uses of Life Insurance, The Swiss Army Knife of Financial Products1

You can use life insurance to:

• Provide a death benefit

• Provide income to survivors

• Secure a line of credit

• Guarantee future insurability

• Equalize an inheritance

• Pay estate taxes

• Give to charity

• Help pay mortgages and debts

• Supplement college, retirement, and other expenses

• Pay funeral and last expenses

• Provide an employment benefit

• Help protect a business from financial loss

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Whether or not a person earns an income, chances are he or she need private life insurance.

A Homeowner Family members could continue to make the mortgage payments rather than sell the house and move.

A Married Senior A spouse can use the benefits to pay final expenses and living expenses.

Any Senior To leave a legacy for beneficiaries, pay final expenses, or estate taxes, if any.

Married, with two incomes, The spouse’s lifestyle could change with the loss of income. no children The benefits can also be used to pay for final expenses.

Married with children Benefits help allow a spouse to help maintain a family’s lifestyle or help provide for future needs such as day care, college tuition, and medical care.

Working Supplements employer-provided insurance. It’s portable no matter who employs you.

A Single Parent Lost income will be needed for day-to-day living expenses.

A Stay-at-Home Parent A stay-at-home parent provides services that can be costly to replace – child care, housekeeping, and cooking.

In debt with loans - car, mortgage, Benefits can be used to pay debts and reduce the burden or tuition for the family.

In business with or without a partner The absence of a key partner or employee could cause the business to fail or close.

Loyal to a charity Benefits can leave a legacy or fulfill a financial commitment.

Anyone at anytime Lock in a premium rate and guarantee insurability. Juvenile policies offer this benefit for children.

IF YOU ARE WHY PRIVATE LIFE INSURANCE IS NEEDED

Source: LIMRA Top 10 Reasons for Life Insurance: Understanding Life Insurance Buyers and Non-Buyers, 2012

1 Basic Principles of Life Insurancehttp://www.theamericancollege.edu/assets/pdfs/fa257-class-1-2011.pdf

information and resources

Raise the issue.One-quarter of life insurance shoppers consider life insurance only after a producer initiated the discussion.

SOURCE: Insure Your Love Facts from LIMRA, 2014

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REACHING NEW HEIGHTS IN LIFE SALES

“Once I’ve won them over, it’s not over.”

After getting engaged, David realized how important life insurance can be for a family and makes sure to ask about it at every appointment. For many clients cost is a priority, but David asks them to think about who they want to be their agent. He reminds them of the importance of having an agent and a Company they can trust to make sure the claim goes smoothly during a tough time. David promises his clients, “When you call I will call you back the same day. This is how I act and how I was raised.” Once they become a client David says, “Now that you’re a policyholder you’re in a network of my friends and family. I look forward to being your friend and helping you in the future. I want to be your agent for the rest of your life.” And once he’s won them over, it’s not over. Now it’s time to win over their friends and family…this is when he asks for referrals.

David Branton


“You have to ask about life insurance. And always give them options.”

One reason Steve has success selling life insurance is because he asks about it. When he is with a client he finds out what they have now. He listens carefully and then presents some options. Giving his client choices is an important part of Steve’s presentation. When clients pick the options they like, Steve better understands what is important to them.

Steve Kaploe

Be persistent with follow-up.More than one-third of shoppers said the producer should have followed up with them while they were still deciding whether to buy.


SURPRISING U.S. LIFE INSURANCE STATS

2 in 3 adults think life insurance is too expensive; however, they overestimate

its true cost by more than 2x

44%

of those without

coverage say they need it

and3 in 10 think they might buy in the next year

75% of Americans say the main reason to buy life insurance is because you love your family

37% haven’t bought life insurance or more of it because they’re unsure of how much or what type to buy

50%of U.S. households

(58 milion) say they need more life insurance

69%While 4 in 10 households with children under 18 now include a mother who is either the sole or primary earner for her family, among women who have life insurance, coverage is only 69% of the average coverage on men

70%

ALMOST 70% of consumers say required cost-of-living expenses keep them from buying some or more of life insurance

50%

MORE THAN 50% say additional living expenses, such as Internet, cable, and cell phone costs prevent them from purchasing life insurance

4 in 10 life insurance shoppers are prompted to start shopping for life insurance by life events – getting married or divorced, having or adopting a child, buying a home, or

experiencing the death of a relative or close friend

The most important reason consumers cite for shopping for life insurance is

either to replace their income (42%) or pay for burial and other final expenses

30%

Thirty percent of U.S. households have no life insurance at all

44%

Only 44 percent have individual life insurance

LESS THAN HALFof middle-market consumers ages

25 to 64 have individual life

insurance coverage

2014 Insurance Barometer Study, Life Happens and LIMRA Facts from LIMRA: September 2014SOURCES:

LIMRA and LIFE Foundation 2011 Insurance Barometer Study LIMRA Fact About Life 2014

Most people still prefer to purchase life insurance face-to-face with a financial advisor or agent, but one in four people (25%) under the age of 45 say they prefer to apply for it online

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Facts Tell.Stories Sell.The bottom line is that while sales

stories will help you sell more

products, they will also help enrich

the relationships with your clients.

For the best agents, that is just as

important as making a sale.

P eople buy products based on emotion. It’s particularly true with life insurance. Everyone makes their purchase decision based on some

type of emotion that they have. Then they justify that purchase decision based on logic.

Facts TellTraditional presentations provide the facts, coverages, features and benefits of a product. Although necessary, this can be boring and probably won’t create an emotional connection with your client.

Stories SellGreat presentations include stories. Stories create a picture and can be inspirational. Top agents have stories. They know that using real life stories to illustrate a point gains the interest of prospects and wins sales.

Simple ConceptThe concept is simple, tell a story to make a point, then support it with facts. Repeat this throughout the presentation. Have a story for each product. Think about your customers’ satisfaction, referrals you received, how people’s lives were changed, how the product helped them maintain their lifestyles and protect their finances.

Borrow a StoryIf you don’t have a story, borrow one until you get your own. Some of the most famous storytellers were not necessarily the original storyteller, they just told it better. You can use a story from a client’s experience or you can use stories of from other agents. The Life Happens website also has some powerful video stories you can use.

Here’s a StoryHaving a story can change the way you feel and think about this business. Here’s an example. A young agent, new to the business, had learned all the facts and figures about life insurance. He could repeat all the features and benefits about the product but never really understood the value, until he had to deliver a death claim. He shared this story:

“I was 26 years old and my manager told me I had to deliver a check to a client, her husband had died. I still remember walking in to their home. She was sitting on the sofa with three young children. She was crying her eyes out, the kids were all sobbing and hugging each other. It was heart wrenching. I told her I was sorry for her loss and handed her the check. It was only $10,000 but she hugged me and thanked me. This was the last

The concept is simple, tell a story to make a point, then support it with facts. Repeat this throughout the presentation. Have a story for each product. Think about your customers’ satisfaction, referrals you received, how people’s lives were changed, how the product helped them maintain their lifestyle and protect their finances.

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6Storytelling Tips

Life Happens Website The LIFE organization, offers free materials, stories, and videos you can share with your clients, go to the site at: http://www.lifehappens.org./.

Insure Your Love: Videoshttps://www.lifehappens.org/industry-resources/awareness-campaigns/insure-your-love/campaign-materials/videos/

Love-Themed Materialshttps://www.lifehappens.org/industry-resources/awareness-campaigns/insure-your-love/campaign-materials/flyers/


Strategically place your stories throughout your presentation.

Always have one during the close.

Make them relevant and show “proof” of how a client was helped.

When you get an objection respond with, “that reminds me of a client who...”.

Use a story when asking for referrals: “My client asked me to see their friends and they were so glad they did; a few months after they got their policy...”.

Have a range of stories. Some people respond best to humor while others relate better to heartwarming messages.

1

23

4

5

6

paycheck she would ever get from her husband. Sure it would help, but I wished it was a lot more. I made a promise to myself that day I would never leave a client’s house without reviewing their life insurance.”

This agent learned early the importance and value of life insurance. It changed his career and he went on to become an expert in life insurance and a leading producer, qualifying many years for the MDRT (Million Dollar Roundtable).


“Create a picture with a story.”

Ryan asks every client if they have life insurance and there is a reason why. When he lost his father unexpectedly last year, Ryan lived a nightmare due to not understanding how much final expenses can cost. By telling his real-life story to clients Ryan creates a picture of what he has been living through. Although he has a competitive spirit and loves making the sale, the reason for his success in life insurance goes beyond that. Ryan is committed to making sure his clients have life insurance coverage so their families don’t have to experience what he did.

Ryan Templeton

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Designating a Beneficiary

Designating beneficiary(s) is an important part of the life insurance application process. However, if the applicant chooses an ineligible beneficiary, it can lengthen the approval process. Here are some tips to keep in mind when helping your clients apply for life insurance:

A beneficiary must have “insurable interest” in the insured’s life at the time of application. This means the beneficiary must be someone who would suffer a direct and measurable financial loss or hardship in the event of the insured’s death.

Examples of “insurable interest” include:

• Insured’s life (in which case the beneficiary is the insured’s estate)

• Husband or wife• Domestic Partner (with proof of

shared assets)• Civil Union • Parent & Child (natural or

adopted)• Other Relative (by blood or

adoption) • Business Partner• Employer• Creditor

Examples of those who do NOT have “insurable interest” include: • Friend• Neighbor• Step-parent or Step-child• Pet

A church or other charitable organization can also qualify as a beneficiary.

Life insurance benefits cannot be paid directly to a minor (under the age of 18 or 21, depending on the state) beneficiary. If an applicant is considering a minor beneficiary, he or she should seek legal advice.

The Home Office will review the beneficiary’s relationship to the insured to determine if there is “insurable interest.” If the relationship does not clearly reflect an “insurable interest” the

Home Office will not approve the beneficiary designation.

Keeping life insurance beneficiaries up to date is important. Should your client need to change his or her beneficiary designation, have him or her write to or call the Home Office and request a Change of Beneficiary form.

Keep these things in mind and the beneficiary designation process will be a smooth one.


“The Short-Term Care Rider helps bridge the gap to take care of expenses many long-term care policies don’t.”

Reserve National’s competitive life insurance rates and product features have proven to be a winning combination for Steve. Many of his sales have been to clients who have long-term care insurance. Most long-term care policies have a 30-90 day waiting period before expenses are covered and benefits kick in. When presenting a life policy with the Short-Term Care Rider, clients immediately see the added value to having additional coverage to help bridge the gap during the waiting period on their long-term care policy. Steve Kaploe

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“When selling life, lead with the benefits of the Short-Term Care rider.”

Helping people can open up sales opportunities. A HIFA lead resulted in Luke writing a $50,000 life insurance policy with both the Short-Term Care and Chronic Illness riders. The client, a 57-year-old woman needed health insurance. She qualified for a subsidy through the federal marketplace and Luke helped her apply. She saved money and was appreciative for his help. Luke asked her what she was doing for nursing home coverage and presented the short-term nursing home benefits in the Short-Term Care rider. Her husband, who is disabled, thought it was a good idea. His first wife, who has since passed away, spent three years in a nursing home, which cost more than $150,000.

Luke Peterson


“Give your clients two lines of defense.”

Ben likes to use a two-pronged approach to give his clients two lines of defense. He presents a combination of the Reserve National Home Health Care policy and a life insurance policy with the riders. Clients appreciate how the features and benefits of these products can work together to strengthen their current coverage, including any long-term care insurance they may have.

Ben Kunes

Life insurance agent to would-be client:"Don't let me frighten you into a hasty decision. Sleep on it tonight. If you wake in the morning, give me a call then and let me know."

A little humor...

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L.I.F.E. A Simple Needs Analysis Concept

Why complete a Life Needs Analysis?A Life Needs Analysis helps you develop a more thorough understanding of what your clients:• need• want • and already have in place

When should the Needs Analysis be done?• 30-60 days prior to the client’s birthday

It helps you spend less time closing the sale because you will• stay organized and on track

• identify buying motives

• gain small commitments

• find opportunities to sell even deeper


would immediately have trouble meeting expenses1


would have trouble after several months meeting expenses2

Most households today rely on two incomes. In the event of the death of a wage earner, according to LIMRA:

1 LIMRA 2011: Life Insurance Ownership Gap Closes Between Men and Women, LIMRA Finds2 2010 LIMRA : Household Trends in U.S. Life Insurance Ownership

The Life Needs

Analysis process

helps your client

better understand

their values and

focus their thinking.

When working with a client they need to give you the numbers for their life insurance needs. It is important to let them take ownership.

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Estimate the total life insurance needs – consider LIFE:

Source: Insure Your Love Facts from LIMRA, 2014.

Liabilities – mortgages, debt, car loans, student loans

Income replacement – breadwinner and the stay-at-home parent too

Final Expenses – funeral costs and other expenses

Everything else – emergencies, children’s education, medical expenses, wedding, aging parents

L

I

F

E

Determine resources available to meet those needs:

TOTAL

Current life insurance

Assets: cash, savings, investments, retirement funds, government benefits, home equity

TOTAL

Difference – Subtract total resources from total estimated life insurance needs

ESTIMATED AMOUNT OF LIFE INSURANCE NEEDED

Meet directly with clients and prospects.More than 7 in 10 life insurance shoppers who met with a producer face-to-face bought a policy.


Conduct a needs analysis with clients and prospects. Consumers who get one are considerably “more likely to buy” than consumers who don’t. What’s more, producers who recommend an amount of insurance to buy ultimately sell more policies, at a 60 percent higher coverage level.

The LIFE organization, offers aneasy-to-use tool:www.lifehappens.org


Young Agent?Helpful Tips from a Pro

You’re selling yourself.

This is a huge challenge and one reason for these tips. If you know a young insurance salesperson, please pass this article along to them. And if you are one: Follow these tips to be an inexperienced but insanely successful insurance salesperson.

John Carroll, the young CEO of InsuranceSplash has many helpful resources posted on his website including, 21 Insurance Sales Tips For Young or Inexperienced Insurance Agents. John created this resource to help young insurance salespeople be successful and encourage hiring agents to consider young and inexperienced applicants. However, there are a lot good ideas that are worthwhile for agents of all ages.

John gave Reserve National permission to use this content and following are some highlights of his article:

Selling insurance is different from selling everything else.

Insurance is one of the most expensive things people buy and they can’t see it, touch it, or hold it.

You’re selling ideas. You’re selling trust. You’re selling promises.

Source: 21 Insurance Sales Tips For Young or Inexperienced Insurance Agents, John Carroll, 2013.www.insurancesplash.com/blog/insurance-sales-tips-for-new-insurance-agents/

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Don’t Ignore Sales Fundamentals

1I’m sorry to burst your bubble, but Facebook, Twitter, Text Messages and QR Codes don’t sell insurance.

People do.

Of course there are tools that can make things easier and more effective for agents, but social media will never replace the basics.

Read “How To Win Friends and Influence People ” by Dale Carnegie. It was written in 1936 and teaches you how Teddy Roosevelt, Henry Ford, Benjamin Franklin and a lot of other people become successful long before Mark Zuckerburg.

Everything in that book is just as relevant today as it was 75 years ago.

Avoid Using “Young” Slang

2Do you express agreement by saying things like, “Gotcha”, “Right on” or “For Sure”?

The more you speak like your prospect the better success you’ll have.

If your prospect doesn’t use those terms it’s harder to earn their trust when you do.

Learn From Experienced Coworkers

4Technology has created an unusual situation in the business world. It makes younger people think they’re smarter than they are.

As a tech guy myself, I know it’s hard to take advice from someone you just watched peck away at a keyboard to write a one sentence email.

But I also know more multi-millionaire insurance agents than almost anybody and I have found almost no correlation between their tech abilities and their success.

That’ll change for your generation, but learn everything you can from those who’ve been around.

Speak Less, Listen More

5As a young or inexperienced salesperson, there’s always an impulse to demonstrate your knowledge.

You want prospects to see you know your stuff because you’re a bit worried about it yourself.

The more you talk or explain things they didn’t ask about, the more obvious it is how much you don’t know.

Be Better Prepared

6Work harder, work longer, learn more about your products. Have an answer for every possible question.

Read books about sales, listen to sales audio tapes, go to seminars about sales.

Get in front of a mirror, a colleague, or a friend and practice your sales scripts, practice your rebuttals, your closes.

Nothing comes to you. Prepare yourself and go get it.

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Find Common Ground

3Regardless of your prospect’s age or background there’s always something you have in common.

Find it.

Did you grow up in the same neighborhood? Like the same baseball team? Shop at the same grocery store? Do you both love your families?

Ask questions.

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Ask Prospects About Their Kids

7If you’re trying to sell to people much older than you, try to find out if they have a child or grandchild your age and ask a lot of questions about him or her.

You’ll prime their brain to think about their loved one. This makes your prospects more likely to buy from you since they would want someone else to do the same for their child.

Don’t Spew Features

8When you’re new to selling it’s common to focus on product features rather than benefits.

At some point you learned all 10 features of a product and you’re anxious to prove your knowledge by telling customers about all 10 of them.

Unfortunately they don’t care about all of them.

There’s maybe one or two features that interest them and you’re better off asking questions to identify a client’s needs so you can explain how your products will satisfy those needs than trying to explain everything.

Recognize Buying Signals

11I’ve witnessed a lot of new salespeople shoot themselves in the foot because they didn’t know when to shut up.

When someone is ready to buy, let them do it.

Don’t Sell on Price

10I get it… people are shopping on price, they’re comparing on price, and they’re buying on price.

You buy everything on price too, right?

Wrong.

Here’s the bottom line:

If you honestly believe people only buy on price then quit today. You’re in the wrong business and the industry doesn’t need you.

Expect to Live In the Trenches

12Selling insurance is hard, hard work.

Insurance agents you see with big houses, nice cars, and playing golf around the world didn’t get there overnight.

They sold and sold and sold.

And sold more.

Embrace Your Youth

13Embrace life. Be passionate. Be young!

No one ever had a mid-life crisis and became an insurance salesperson. Don’t be afraid to breathe some life into this business!

Smile. Laugh. Be fun.

Sell to Other Young People

9There’s one group you have a huge advantage with in selling… other young people!

And guess what… There’s millionsof them!

Millions buying homes, millions getting married, starting businesses, having kids, buying expensive stuff!

Go get them!

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Ben Franklin Close

This close can be used not only for sales but in other situations when youneed to make a decision.

When you are choosing a house, car, school, job, vacation spot, or anything else this approach can be helpful.

Instead of handling a decision emotionally, Ben Franklin, who is known for his common sense, would take a sheet of paper and draw a line down the center. On the left side he would write something similar to “Reasons for” (yes) and on the right side “Reasons against” (no).

The next step is to write down all the reasons for and against the decision at hand. When selling have some reasons for buying the policy ready in case you need to prompt them.

Start by listing all the reasons for and then move to the reasons against column – don’t number them because then it becomes a numbers contest.

You then go through each item and review the pluses and minuses. By following this procedure you can readdress any objections and balance them with the reasons why this is a good decision.

Pros Cons

Helps protect loss Too expensiveof income

Already have I don’t know how my final too much insurance expenses would be paid

Could lose my job so I’d lose my life insurance

Feel, Felt, FoundFeel, Felt, Found is a proven sales strategy to help keep the conversation moving forward when a client raises an objection. It is based on the principle of listening to your clients and letting them know you understand their concern and can relate to them.

There are three separate parts and statements using these key words and phrases.

Here’s an example.

“I like the policy, but it’s too expensive.”

“(Client Name), I understand how you feel and others have felt the same way. What they found is that life insurance cost doesn’t outweigh the benefits. When their spouses passed away, the medical bills, household bills, and final expense costs really added up, but the life insurance benefit they received helped take the edge off the expenses.”

FEEL

Phrase:“I understand how you feel”

Concept:Shows empathy. Rather than push back or challenge an objection, you are saying it is understandable they have this concern.

Phrase:“Many others have felt the same way” or “People in similar situations have felt the same way”

Concept:Safety in numbers. This lets them know they are not alone in feeling this way.

FELT

Phrase:“And here’s what they found (insert benefit) or “They did become my client and here’s what they found”

Concept:Allows you to share a client story, a third party example to the benefits of the policy. Provides reassurance that others found value in making the decision to buy.

FOUND

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Can Reserve NationalPolicies Help?For the past three years the LIFE Foundation and LIMRA have conducted an Insurance Barometer Study to survey consumers on insurance and financial topics. The 2013 Insurance Barometer Study revealed the top consumer

financial concerns in the United States and the results show that overall consumers continue to be concerned with financial issues. Consumers without life insurance tend to be more concerned about everyday expenses than those with life insurance.

Consumer Concern Over Financial IssuesPercent concerned, very concerned, or extremely concerned

Paying for long-term care services58%

Paying for medical expenses57%

Support myself if disabled and unable to work57%

Paying monthly bills48%

Losing money on my investments42%

Paying off or reducing credit card debt42%

Paying my mortgage or rent41%

Burden dependents if I die prematurely39%

Burdening others with my funeral expenses37%

Leaving an inheritance for my heirs32%

Paying for a child’s schooling/college29%

ALL RESERVE NATIONAL POLICIES can help clients achieve a comfortable retirement. How?

They help protect savings and avoid accumulating debt in the event of death, accident or illness. Life insurance can help replace lost income. Accident and health policies pay benefits to cover expenses, this means more money for retirement!

EXAMPLE:Money for a comfortable retirement67%

Conducted by LIFE Foundation and LIMRA

As you review the chart below, take a moment to consider each item and ask yourself these questions:

• Could a Reserve National policy help provide a solution?

• Which policies?

• How can that policy help?

• How can I help provide a solution?

Dare to Soar | 19

You can say “I don’t need it,” but can you say, “My family won’t

need it.”

No one ever plans to fail, but many fail to plan.

The most valuable asset that a parent can leave his or her children is their other parent’s time.

No need? True. Ifyou knew you needed

life insurance, you couldn’t get it.

A spouse may not believe in life

insurance but widows and widowers

always do.

Life insurance is pre-paid

tomorrows.

Life insuranceisn’t an added

obligation; it’s the best means of meeting the

obligations youalready have.

It wasn’t raining when Noah built the ark.

If you die, the bank pays what you have saved; the insurance company pays what you meant to save.

The day a business person dies without life insurance his business becomes a speculation.

Life insurance iscalled life insurance

because it insures the future life of those you leave behind.

The bills don’t stop when the paycheck does.

Life insurance is a shield to meet the blow you can’t see coming.

I have never meta widowed person who

said that his or her spouse had too much

life insurance.

PP

O WH

ER

AS

R

E

S

A parentless college graduate said, “I don’t remember my father that well, but thanks to life insurance, I know my father sure remembered me.”

Have you ever attended an estate sale or auction because the family needed money to pay final expenses?

Whatever reason you have for not starting this plan will only sound ridiculous to your spouse after your death.

When a parent dies there are three deaths in the family. The husband or the wife, the father or the mother, and the income.

Would you find it hard to get by without your paycheck for one month? What about the hardship to your loved ones if all your paychecks stop?

With life insurance (earmarked for your mortgage), you don’t leave your home to chance, you leave it to your family.

If you had a machine that turned out money, you’d insure it wouldn’t you? Well, as far as your family is concerned you are that money machine!

Life insurancewon’t keep people from

dying, but it will keep their plans from dying

with them.

An effective sales approach is important, of course, but it isn’t so much what you say – it’s the way you say it, the sincerity in your voice the way you look at the prospect. It’s the way you express it that tells the prospect whether you know what you are talking about and whether you are stumbling. –Legendary producer Ben Feldman

The following power phrases are used by top producers to bolster the effectiveness of their sales presentation, particularly when a prospect is indecisive about making a purchasing decision.

20 | Dare to Soar

“Mr. and Mrs. Client, you buy homeowners insurance in case your home burns down. You buy car insurance because you might have an accident. With life insurance, let’s look at the future. There is going to be a claim. You are going to use it and somebody is going to get the money.”

Disney Walt Disney mortgaged everything he had and borrowed money from the cash value on his life insurance to help finance Disneyland.

McDonald’s Founder of McDonald’s, Ray Kroc did not take a salary during his first 8 years in business. In addition to borrowing money from his bank, Kroc borrowed money from the cash value of two life insurance policies to help cover the salaries of key employees and also to create an advertising campaign around his new mascot, Ronald McDonald.

J.C. Penney During the stock market crash of 1929 and the Great Depression, Penney had financial setbacks but he was able to borrow against the cash value of his life insurance policies to help the company meet its payroll and day-to-day expenses.

The Pampered Chef Using $3,000 she borrowed from a life insurance policy, home economist Doris Christopher started The Pampered Chef in her suburban Chicago home in 1980. Using the life insurance money, she purchased some basic inventory and was on her way. By 2002, the company had grown into a $700 million operation and was acquired by Warren Buffett’s Berkshire Hathaway Corporation for $1.5 billion.

Life Health Pro http://www.lifehealthpro.com/2012/04/ 06/6-famous-brands-started-or-saved-by-life-insurance


If not for life insurance, some famous brands might not be so famous.

LIFE INSURANCE AND

Famous Brands

Dare to Soar | 21

Live Too Long, Die Too Soon, Become Ill, or Quit Paying

When selling life insurance, you are helping clients face the inevitable and providing cash when it is needed most. Whether a client lives too long, dies too soon, becomes chronically or terminally ill, or quits paying premiums, the Reserve National Whole Life Insurance Policy can be a self-completing solution.

You will quit the plan, for reasons you can’t foresee

right now, and the policy will have guaranteed cash

value for you to use to continue paying the premiums to keep the

policy in force, or to use for other needs,

as you wish.

You will become ill or need care

and the benefits can help with

those expenses.

You will die and your family will be guaranteed to receive the

benefit to use as they wish.

You will live and the guaranteed

cash value will be available for you to borrow if you need it.


“When long-term care insurance rates get too high, people drop their policies.”

On a recent appointment, a couple had dropped their long-term care policy because they could no longer afford to pay the premium. Frederick presented a combination of products including a Whole Life insurance policy with the Short-Term Care Rider and the Home Health Care policy. The benefits met the clients concerns and the total cost was less than what they had been paying for long-term care insurance.

Frederick Smith

A Self-Completing SolutionReserve National Whole Life Policy

with Accelerated Death Benefit and Short-Term Care Rider

22 | Dare to Soar

It’s Still Life InsuranceZombie apocalypse, Ebola virus, terrorist attacks…life can be scary. Things can change in a heartbeat, especially the status of one’s health. When it comes to financial protection and planning for a secure future, life insurance can be a great solution.

However, despite all the advertising and websites extolling the benefits life insurance can offer, the problem is – IT’S STILL LIFE INSURANCE and consumers don’t always understand the product.

Too Confusing!According to LIMRA, one of the top reasons consumers give about why they don’t buy life insurance is because it is ‘too confusing.’ LIMRA provided a life insurance IQ test to 4,000 Americans to gauge their level of knowledge about life insurance. Less than a third passed the 10 question exam, 55 percent got fewer than five questions correct

and less than one percent of those surveyed answered all 10 questions correctly.1

Too Expensive?Most people don’t have an accurate sense of what life insurance costs. A study co-sponsored by the LIFE Foundation and LIMRA found that less than one-fifth of consumers correctly estimated the cost of a life insurance policy. Survey respondents were asked to estimate the annual cost of a 20-year, $250,000 term life policy for a healthy 30-year-old. The actual cost is roughly $150, but Americans pegged the cost at $400.

Who is Helping…In a 2012 Deloitte report “The Voice of the Life Insurance Consumer” 33 percent of people surveyed said they didn’t have coverage because no one had offered to sell them a policy. A significant number of respondents did not know if

they need more insurance – or if they do, they don’t know how much they might need to buy.

Another key finding was that respondents are either not aware of or don’t understand the benefits of life insurance. Even current buyers did not overwhelmingly recognize many of the financial needs life insurance can fulfill – they don’t think of the product as a way to provide solutions .

Create the Opportunity Americans by and large see value in life insurance, but less than half of middle-market consumers ages 25 to 64 have individual life insurance. 44 percent of those without life coverage say they need it, and 3 in 10 think they might buy in the next year. 2

It is up to you to make sure your clients have an opportunity to understand how life insurance can benefit them.

Dare to Soar | 23

Show Enthusiasm One of the best way to have conviction about a product is to own it. Having ownership will make a difference in your presentation. Even if the policy is the lowest face amount and the least expensive policy. Many life insurance agents keep their policy in their presentation book – powerful.

1 LifeHealthPRO,LIMRA: 70% of Americans fail life insurance IQ test, Jan. 2013www.lifehealthpro.com/2013/01/18/limra-70-of-americans-fail-life-insurance-iq-test

2 Facts from LIMRA, Life Insurance Awareness Month 2014


“Don’t make life insurance the last thing you talk about.”

Wesley approaches life insurance a little differently. Many agents get through the health insurance presentation and then ask, “Oh by the way, what are you doing for life insurance?” Life insurance is not an afterthought or an extra added to the end of Wesley’s presentation. He makes sure it is at the forefront of his mind and brings it up early on in the conversation. Wesley has found that families and small businesses have a big need for life insurance and they are happy to find out we can help them, especially those who thought they could not qualify due to their health.

Wesley Steese

Key of Enthusiasm “Many people think that enthusiasm means you’re loud. Obviously, you can be enthusiastic and loud, but in its truest sense, enthusiasm comes from the two Greek words en theos and literally means ‘God within.’ Look at the last four letters in enthusiasm. They are I A S M and are an acrostic for ‘I Am Sold Myself.’ If you are sold on the product, goods, or services you sell, then you are going to be enthusiastic as you make your presentation and close.” – Zig Ziglar from his book “Secrets of Closing the Sale”

Important Factors When Buying Life Insurance 2013Percent rating factors as first or second in importance

Getting the proper amount of coverage

Being certain I understand what I am buying

Getting a fixed price that can never go up

Getting the best price

Getting coverage that is guaranteed for life

50%

43%

36%

36%

32%

Although cost issues are the top reasons for not purchasing life insurance despite a self-acknowledged need, most important factors in actually purchasing life insurance are related to knowledge.

Offer it. During every presentation reach out and offer to do a life insurance policy review, ask about changes in their life circumstances.

Be an educator. Insurance can confuse people, focus on providing solutions and explaining the benefits.

Keep it simple. Consumers like easy.

SOURCE: LIMRA 2013 Insurance Barometer

24 | Dare to Soar


“Long-term care insurance can be expensive. I show clients what Reserve National has done to take away that whole problem.”

When meeting with clients in their 50s and 60s Ben asks them about their long-term care insurance. He has found most have looked into buying the insurance but didn’t because “it’s just too darned expensive.” And for those who did buy the coverage their rates keep going up. When they reach their 70s the policy is no longer affordable but they are afraid to drop it. Ben tells his clients, “Reserve National has something exciting to take away that whole problem.” A Reserve National Life policy with the Short-Term Care Rider provides a win-win for his clients. They like knowing that whether or not they use the rider benefits, their beneficiaries still get the life insurance money.

Ben Kunes


“Even if a policyholder never goes into a nursing home, they still have the life insurance.”

Luke sells the benefits of the Short-Term Care Rider first. On a recent sales call Luke was getting a lot of objections to the Dental & Vision policy. Earlier in the conversation the client had mentioned she had been declined for long-term care insurance in the past. Luke decided to change the conversation and presented the benefits of the Short-Term Care rider. What the client liked best was that even if she never used the rider for short-term nursing home care she still had the life insurance. There were no objections at all to the life policy.

Luke Peterson

More Insights on Life Insurance Sales

Present two rates.Give the client one rate at their current age and another at a future age. Since there is a difference in price, this may motivate them to buy now rather than at a later date.

Dare to Soar | 25

Her name was Sonja McWilliams. In 1984, for every tenth grade guy at Abilene High School, she was the one. She was a senior but what’s

two years difference anyway? Well in my high school it was everything. A senior wouldn’t be caught dead dating a sophomore and if they were so crazy to stoop that low, they would never hear the end of it. As many times as I thought about dating Sonja McWilliams, I thought even more about all the reasons she wouldn’t. The fear of rejection was more than I was willing to risk. Who likes being rejected? It’s the worst.

Being in sales you face rejection on a regular basis. Sometimes you get dealt enough of it and you just want to pack up and go home. But what if there was a way to face that rejection and not only overcome it, but use it to become even stronger?

I was watching a TED talk. If you haven’t heard of them, they’re short talks on all different kinds of subjects. The speaker posed the idea that when we break a leg, we seek medical attention. It would be ludicrous to say, “Just walk it off.” Yet he said that’s what we do when we’re emotionally wounded or rejected. We’re told to just shake it off.

As sales people, you’re told to forget about it and move on to the next one. But sometimes it’s hard to shake it off, right? We start saying to ourselves, “Maybe I’m not that good. I knew they wouldn’t buy it. I knew they would say no.” When you start down that road, you’ve now begun to ruminate. I’d never heard that term. Its literal meaning is to chew over

and over. That’s exactly what we do. We’ll take that negative outcome or thought and play it over and over and over in our minds until we start to believe it. Before you know it, you’ve convinced yourself you’re not that good and no one is going to buy from you. So how do you break that cycle? It’s easier than you think. Here’s how.

Distract yourself. That’s it. Think about it. Thought after thought pulling you down. Right there you gotta step in. Put your mind on something else, do something else, or read something else. Don’t jump in that pit. The speaker was struggling with the resurgence of cancer in his twin brother. For a week, it was just wrecking his life. But he battled and by the end of the week, he was able to see things differently and have a positive outlook. It’s what he needed to keep going and it’s what his brother needed to keep his spirits up.

If you want to take it a step further, do something for someone else. When you’re able to help someone else, it’s amazing what it will do for your spirit and for your situation. It will diminish those negative thoughts and give you renewed energy to jump back in the game.

How’s your emotional hygiene? Take care of it and it will take care of you. Now get out there and sell some life. ;)

P.S. In case you’re wondering I never did askSonja out.

A Message From

Coach KCoach K

26 | Dare to Soar

Individuals close to retirement will lose their group life insurance when they leave their job. Many

don’t have individual life insurance and Social Security only pays $255 to a beneficiary at the time of death.1 The Veterans Administration will pay a $300 burial allowance for a non-service related death, $745 if the Veteran was hospitalized.2

The concept of final expense insurance is for the purpose of paying expenses incurred at and near the time of death. Final expenses can include funeral costs, hospital and other medical

expenses associated with an illness, probate fees, debt, and any other unforeseen charges.

Helping policyholders cover final expenses can be a rewarding experience – you can feel good about helping families minimize or eliminate financial challenges at one of the worst times of their lives. Selling life insurance can also be financially rewarding for you.

No one likes to talk about their mortality and for that reason many agents avoid talking about life insurance. This gives you an advantage to have this conversation.

Exploring the

Final Expense Market

Tip: Pick up

General Price Lists

(GPLs) every six

months from area

funeral homes and

cemeteries and

carry them in your

presentation book.

*If a vault is included, something that is typically required by a cemetery, the median cost is $8,343.

Cost of an Adult Funeral$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

1965 1975 1985 1995 2000 2009 2012

$790

$1,285

$2,737

$4,626

$5,180

$6,195

$7,045* Cost does not take into account cemetery, monument or marker costs, crematory fees (if cremation is selected), or cash-advance items, such as flowers and obituaries.

SOURCE: NFDA General Price List Survey, 2012

1 http://www.ssa.gov/planners/survivors/ifyou7.html2 http://benefits.va.gov/BENEFITS/factsheets/burials/Burial.pdf

Dare to Soar | 27


“With Reserve National’s outstanding products, pricing, and underwriting, it’s easy to have a conversation about life insurance.”

There is a huge market of people age 50+ who need a small face amount life insurance policy and Frederick thinks Reserve National’s Guaranteed Issue Life policy is a perfect fit. He feels it is easy to have a conversation about life insurance when you can offer clients a policy that is well-priced, does not require a physical and competes well with other products in the marketplace.

Frederick Smith

Cremation in the U.S.

Cost of cremation: from $1,200 to $4,200 based on location, whether or not it is arranged through a funeral home, or if it is a direct cremation (without a formal viewing, visitation, or ceremony)

43.2%People in the U.S. choosing cremation for final needs in 2012

People in the U.S. choosing cremation for final needs in 1980

9.7%

$1,200 to

$4,200

We already have savings to take care of this.That’s great, let me congratulate you. It is always difficult to know what your financial situation will be in the future. Did you know the last six months of a person’s life can be the most expensive… especially when medical expenses exceed health insurance benefits. I’m here today to provide you with solutions so you don’t have to use your savings to cover these costs. We will work together to look at all your

options to get the most coverage you can for the least amount of money. Does that sound fair?

We already have insurance to take care of this.That’s great, let me congratulate you. I’m here today to provide you with solutions and to make sure you have all the coverage you need. We will work together to look at options to get the most coverage you can for the least amount of money. Does that sound fair? Let’s take a look at the policy to see what you have.

I already have a prepaid funeral plan.That’s great, let me congratulate you. Statistics show that funeral expenses are only part of the costs and your family will need money for, there are many things that aren’t included the prepaid funeral plan. We will work together to look at all your options to get the most coverage you can for the least amount of money. Does that sound fair?

Dealing With Common Objections

Median Cost of Cremation – 2013(with and without services)

Item/Service Median Charge

Direct cremation (no services) includingcrematory fee and alternative container* $2,260

Cremation with memorial service (no viewing)* $3,250

Casketed adult funeral with viewing and cremation* $5,410

Other cremation charges:

Urn** $ 275

Cremation casket** $ 995

* 2014 NFDA Cremation Business Practices Study** 2013 NFDA General Price List Study

Source: National Funeral Director’s Association, http://nfda.org/about-funeral-service-/trends-and-statistics.html; National Funeral Council, http://nationalfuneralcouncil.org/category/statistics/; U. S. Funerals, www.us-funerals.com

28 | Dare to Soar

Focus 360°

EstimatingFinal ExpensesThe Baby Boomer generation is a huge market. With 12,500 turning 65 every day this is the largest growing segment of the U.S. population. By 2030, the 65-plus population will double to about 71.5 million, and by 2050 will grow to 86.7 million people (U.S. Census).

When Kemp Cole was selling in the field he would always ask his clients, “What are you doing for burial insurance?” Many times a client would reply “I have life insurance.” Here is Kemp’s reply.

“That’s great but I’m not talking about life insurance, this is burial insurance. Sometimes those big policies can take a long time to pay out. This is for immediate needs for your family. They are trying to figure out where to come up with the $10,000 to bury you. This pays immediately so your family doesn’t have to worry about whether they are going to have to get the pine box or pick a nice casket.”

Once you have your client’s interest it is time to help them estimate their final expenses. Continue the conversation by saying that many people have not sat down to figure out final expenses and most are usually surprised at the cost.

Let them know you would like to help them estimate these costs so they have a better idea of what their final expenses might be.

Reserve National has a worksheet and personalized plan for you to use. Pull out the worksheet and start asking questions. “Have you thought about whether you would like a traditional burial or cremation?” “Do you already have a burial plot?”

On the Personalized Plan page there is a section for Family Expenses. All too often people forget the electric bill still has to be paid and the mortgage or rent payment isn’t going to stop. There are also many unforeseen expenses such as medical bills, attorney fees, or taxes. A minimum of 90 days worth of funds is typically recommended to help a family keep paying the bills. One simple way to come up with this number is to ask what their current monthly expenses are and multiply that number by three.

Once you have completed estimates for both the funeral and family expenses, you now have three numbers to calculate the cost of a policy: funeral expense, family expenses, and the total final expenses. And three options to present.

The final expense market is huge. Final expense insurance new premium totaled nearly $400 million in 2013, representing 613,000 policies. There is great potential in this market due 1.5 million Americans retiring each year until 2015 and many will need the protection final expense insurance provides. The typical issue age for final expense insurance was 61 with an average face amount of $10,864.1

Funeral Expense

Worksheet

National

Traditional Funeral or Cremation?

Median Cost*

FUNERAL

Direct Burial (n

o visitation) – $1,700 OR

$4,650

Traditional Funeral – $3,200 to $6,100

CASKET Basic–$995/Standard–$2,495/Premium–$5,995

$2,395

VAULT Basic (Concrete)–$995/Standard (Steel)–$1,495

$1,298

CREMATION

Direct, No Services – $2,260

Memorial Service No Viewing – $3,250

$3,640

Memorial Service Viewing – $5,410

URN – $195-$995

$ 275

CASKET Cremation Casket

$ 995

Additional Expenses to Consider

Average Cost**

CEMETERY

Burial Plot – $1,500-$3,500 + Cemetery

$4,000

Charges – $1,500 (open/close grave)

MONUMENT – $500-$1,000

$ 850

FLOWERS – $250-$1,000

$ 625

MISCELLANEOUS

Expenses including honorarium for music,

$ 500-

clergy – $100-$300, catering – $500-$1,500,

$2,000+

death certifi c

ates, clothing, and other extras

TOTAL ESTIMATED FUNERAL EXPENSES:

A Kemper Life & Health Company

FEW (04/15)Reserve National In

surance Company

* National Funeral Directors Association National Median Price 2012; Median Cost of Cremation 2013 General Price List Study;

2014 NFDA Cremation on Business Practices Study.

** Average cost is an estimate only and the actual cost for your area may vary and increase in the future.

This worksheet is intended as a guide to help estimate fi nal expenses. You should consult with a local funeral home for an actual

estimate of these costs.

OR

Estimated for (names):

Personalized Plan for

Your Final Expenses

TOTAL ESTIMATED FUNERAL EXPENSES *

Funeral costs for burial or cremation services

FAMILY EXPENSES **

How much do you spend each month for rent or mortgage

payments, credit card debt, car loans, loss of income, taxes?

Take that amount times the number of months to provide

income (typically minimum of 3 months). Plus fi nal expenses

for attorney fees, hospital and medical bills, family travel

and other immediate needs.

TOTAL ESTIMATED FINAL EXPENSES

* From reverse side.

** This should be based on your own review of your family expenses.

A Kemper Life & Health Company

FEW (04/15)

Reserve National Insurance Company

OPTION 1FUNERAL EXPENSES

Face Amount:

Payment:

OPTION 2FAMILY EXPENSES

Face Amount:

Payment:

OPTION 3TOTAL FINAL EXPENSES

Face Amount:

Payment:

Name

OPTION 1FUNERAL EXPENSES

Face Amount:

Payment:

OPTION 2FAMILY EXPENSES

Face Amount:

Payment:

OPTION 3TOTAL FINAL EXPENSES

Face Amount:

Payment:

Name

Although diffi cult to talk about, fi nal expenses can be a burden to your family and loved ones. The last thing

you want your family to worry about is the expenses of your fi nal medical bills and funeral costs, while

coping with your loss.

When Final Expense insurance from Reserve National is in place, it can help protect your family from

unforeseen expenses and ease the fi nancial costs of fi nal arrangements, allowing your family to focus on the

issues that matter most.

Estimated for (names):

Printable Worksheetscan be found on the agent portal

“What are you doing for burial insurance?”

1Source: LOMA Press Release Final Expense Insurance Sales Nearly $400 Million in 2013, Life Insurers Council and CSG Actuarial Report, 2013http://www.loma.org/Publications/Documents/PressReleases/2014/Final_Expense_Insurance_Sales_Nearly_$400_Million_in_2013,_Life_Insurers_Council_and_CSG_Actuarial_Report.aspx

Dare to Soar | 29

Source: LIMRA 2013 Insurance Barometer

Top Life Events That Influence U.S. Households to Shop for Life Insurance

• Wanted to review life insurance coverage• Had or adopted a child• Life Insurance was suggested • Offered life insurance through work place• Lost group life insurance (le� their job)• Got married or divorced• Started or expanded a business• Received substantial assets• Bought a house or a vacation home• Saw advertising• Began saving/paying for college• Relative or a close friend diedSource: 2013 Insurance Barometer: To Shop or Not to Shop for Life Insurance, LIMRA, 2011

“You don’t buy life insurance because you are going to die, but because those you love are going to live.”

– Unknown author

AN OPPORTUNITYAlthough there is no solid proof that an event is a direct link to a consumer thinking about buying life insurance, there are ways to leverage these events and encourage consumers to shop and buy for life insurance including:

• Advertise• Ask • Recommend• Be at the right place, at the right time


“Retirees are losing their life insurance coverage.”

Art has found a great market for life sales – early retirees and retirees. When someone retires they lose their group life insurance and most have never purchased individual coverage. The group policies provide an option to convert but the cost at that age can be prohibitive – usually double the cost of a Reserve National policy. Art recently sold a policy to a 68-year-old woman who had lost her life insurance when she retired. She confided in Art that she has been fearful about leaving her husband with nothing except a lot of expenses. The Reserve National policy was affordable and she was relieved she no longer had to worry.

Art Davenport

TOP

REASONSU.S. Consumers

Own LifeInsurance

Cover burial and other final expenses

Replace the income of

primary wage earners

Help pay off mortgage or other debt such as credit cards

Transfer wealth

and/or leave an inheritance

30 | Dare to Soar

Take Time for anANNUAL REVIEW

Is the policy still the right product?

Is the coverage the right amount?

Is the policy still doing the job originally intended?

Can the coverage be improved in some way?

Are there any new benefits to consider?

Is the ownership still correct?

Are the beneficiary designationsthe way the client wants them?

The goal is to determine:

1

2

3

4

5

6

7

One value an agent can provide life insurance policyholders is an annual life insurance review.

Even without any big changes to the policyholder’s personal or business situation, it is still important to look at their existing policies and show there is good value.

An annual review can help ease your client’s mind that they have the right coverage for the unexpected events in life. It’s a great idea to provide value and generate referrals.

Dare to Soar | 31


“When the client says they already have life insurance, I ask them to pull out the policy and we go through it.”

Clint started in the business selling life insurance so it’s natural for him to ask about it. When he is on a call with a client he opens up the conversation by asking, “Who’s your life insurance with?” That gets them talking and if the client already has a policy he asks them to go get it and reviews it with them. Clint has found that most people don’t understand what they bought and their agent hasn’t been back to do an annual review. Although Reserve National does not replace existing life insurance, this opens up a lot of sales opportunities. One client had an older UL (Universal Life) policy that wasn’t sustainable at today’s interest rates. A Reserve National policy locked in their premiums and guaranteed their face amount would never decrease.

Clint Holmes

AN ANNUAL REVIEW: SOME QUESTIONS TO ASKYou took out this policy around (date), let’s review why you bought this policy in the first place – what were the reasons?

Since we last met, what has changed?• Have you or your spouse changed jobs?• What are your plans regarding early retirement?• Any changes in marital status – married, separated or divorced?• Have any of your children (beneficiaries) married, separated or divorced?• Any plans to move?• Has anyone close to you died?• Will you be taking care of any aging parents or relatives?• Any significant changes to you or your immediate family - or any expect in the near future? – Births – Adoptions – Deaths – Graduations – New Job Let’s review the beneficiaries. Do you want to change the beneficiaries on any of your insurance policies?

Have you purchased any other health or life insurance?

– Serious Illness or Injury – Health Challenges – Major Unforeseen Expenses – New Vacation Home

– Inheritance – Lottery Winning – Retirement – Name Change

You took out this policy around (date), let’s review why you bought this policy in the first

• Any significant changes to you or your immediate family - or any expect in the near future? – Serious Illness or Injury – Health Challenges – Major Unforeseen Expenses – New Vacation Home

Let’s review the beneficiaries. Do you want to change the beneficiaries on any of your

32 | Dare to Soar


“Never think a lead is too old to work. It’s all about timing and finding a solution for the client.”

Kurt worked a one-year old Vision Quest lead and ending up making a $1,400 sale. During the appointment, he found he couldn’t improve the major med the client had but did discover an interest in long-term care insurance. After discussing the high costs of long-term care insurance and concerns about actually using it, Kurt presented a combination of the Home Health Care product and a Whole Life policy with the Short-Term Care Rider. The client loved the strategy and it was a good solution for the client. Kurt Saxton


Flipping the conversation has been a factor in Art’s success with life sales. He has found that when he goes on a call for a Dental and Vision, HIFA, or Medicare lead, the client has been comparison shopping for price and coverages. They will have quotes from five different companies and are not ready to make a decision. By changing the conversation to life insurance he stands out and is not in competition with another company.

“They have shopped for health coverage with five different companies and yet no agent has talked with them about life insurance.”

Art Davenport

“Fun is like life insurance; the older you get, the more it costs.”

– Frank McKinney aka “Kin” Hubbard (1868-1930)American cartoonist, humorist and journalist

Dare to Soar | 33

You arePre-Approved!

Two experienced agents have found a way to open doors to life sales. Using the Pre-Approval Certificate for Life Insurance sales tool provided by Reserve National, Stephanie Guy and Michael Stock are talking with their clients about life insurance.


“Oh, by the way, you have a life insurance offer.”

When Stephanie is on an appointment to deliver a health insurance policy she makes sure she has a Pre-Approval Certificate for Life Insurance with her. After reviewing the health policy Stephanie shows her client the Certificate with their name on it while saying, “Oh by the way, you have a life insurance offer.” She asks the client questions and presents the flexibility and different ways Reserve National life insurance policies can help, her clients are “hyped about that!” Many take advantage of the offer – especially when they learn they do not have to take a physical or have blood drawn. If someone does decline they usually ask if she can come back later because they still want to take advantage of the offer –what a great way to keep the door open for a future sale!

Stephanie Guy


“The Pre-Approval Certificate reinforces the value of life insurance.”

Michael has found that the individual life insurance market is underserved and untapped. He says, “Four out of 10 people don’t have life insurance. If we’re not bringing this up, who is?” One way Michael “brings up” the topic of life insurance is to present the Pre-Approval Certificate when he delivers a health policy. If a client says they already have enough life insurance he asks them to sign the certificate to release the offer. It’s at this point the client realizes the value of the offer and usually asks, “Can’t you just hold this for me?” And he does. Michael recently had one lady who wanted to buy the life insurance and asked him to come back because she just couldn’t do it right then. Three weeks later he called her and she was ready to go. Michael wrote a Whole Life policy with a $1,000 annual premium.

Michael Stock

34 | Dare to Soar

Focus 360°

Solutions for Chronic Illness andLong-Term Care Insurance

How many people age 65+ are in nursing homes?A relatively small number (1.5 million) and percentage (3.5%) of the 65+ popularion in 2012 lived in institutional settings such as nursing homes (1.2 million). In 2012:• 1% of persons 65-74 years • 3% of persons 75-84 years • 10% of persons 85+

U.S. Census Bureau, P23-212, 65+ in the United States: 2010, Issued June 2014

Long-term care services are:

• Services that include medical and non-medical care for people with a chronic illness or disability

• Long-term care helps meet health or personal needs.

• Most long-term care services assist people with Activities of Daily Living, such as dressing, bathing, and toileting.

• Long-term care can be provided at homeor in a facility. Also community services, such as adult day care centers, can supplement the care received at homeand provide time off for family caregiversWho is providing care?

Long-term care services and support typically come from:• About 80 percent of care at home is

provided an unpaid caregiver who may be a family member or friend

• A nurse, home health or home care aide, and/or therapist who comes to the home

• Adult day services in the area• A variety of long-term care facilities

On average, caregivers spend 20 hours a week giving care. More than half (58 percent) have intensive caregiving responsibilities that may include assisting with a personal care activity, such as bathing or feeding.

A profile of caregivers• About 65.7 million people in the US

(one in four adults) were unpaid family caregivers to an adult or child in 2009

• About two-thirds are women

• Fourteen percent who care for older adults are themselves age 65 or more

• Most people can live at home for many years with help from unpaid family and friends, and from other paid community support

Source: http://longtermcare.gov (unless otherwise noted)

TheNeed for Long-Term Care

The duration and level of care will vary from person to person and change over time:

• Someone turning age 65 today has almost a 70% chance of needing some type of long-term care service and support.

• One-third of today’s 65-year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years.

• Overall more people use long-term care services at home (and for longer) than in facilities. The distribution of Medicaid

funds has been shifting towards home- and community-based services. Suchoptions for long-term care are increasingly popular, in part because of the desire to remain in one’s own home. Almost 90 percent of adults aged 50 and over want to stay in their own home as long as possible (AARP Public Policy Institute, 2009).1

Source: http://longtermcare.gov (unless otherwise noted)

1 US Census Bureau, P 23-212, 65+ in the United States: 2010, Issued June 2014

Dare to Soar | 35

The Cost of Long-Term CareThe cost of long-term care varies by care setting.

The table below shows that, overall, more people use long-term care services at home (and for longer) than in facilities.

Average number of Percent of years people use people who useType of care this type of care this type of care

Any Services 3 years 69%

At Home

Unpaid care 1 year 59%

Paid care Less than 1 year 42%

Any care at home 2 years 65%

In Facilities

Nursing facilities 1 year 35%

Assisted living Less than 1 year 13%

Any care in facilities 1 year 37%

DISTRIBUTION AND DURATION OF LONG-TERM CARE SERVICES

SOURCE: longtermcare.gov; The Basics, How Much Care Will You Need?

National Range of average Care setting and type of rate average rate rate across states

Nursing home (daily):

Semi-private room $205 $123 - $610

Private room $229 $138 - $687

Assisted living communities $3,293 $2,073 - $5,231(monthly):

Home care (hourly):

Home health aide $21 $14 - $30

Homemaker $19 $13 - $25

Adult day care service (daily) $67 $31 - $140

AVERAGE COST OF LONG-TERM CARE BY CARE SETTINGS: 2010

SOURCE: MetLife Mature Market Institute, 2010.

Types of Long-Term Care Services

36 | Dare to Soar

The Cost of Long-TermCare InsuranceLong-term care insurance can be costly and premiums increase with age. The high cost is the reason most people give for not purchasing coverage.

Most middle income Americans are not purchasing long-term care insurance. In 2010, the typical purchaser was age 59 and more than half (57 percent) had an income of more than $75,000 per year, and 79 percent had more than $100,000 in liquid assets.

SOURCE: AHIP March 2012, “Who Buys Long-Term Care Insurance in 2010-2011?”

2010 Average Annual Premium

SOURCE: The 2012 America’s Health Insurance Plans “Guide to Long-Term Care Insurance.

$1,831$2,261 $2,781

$3,421$4,123

Under 55

55-64 65-69 70-74 75 & Over

AGE:

The Problemn The cost of good long-term care insurance

coverage can be expensive. Many people can’t afford it or are unwilling to pay the high premiums.

n Many consumers find when they reach their 70s and 80s that premiums increase substantially and many drop their coverage at the age when they may need it most.

n People with certain health conditions may not qualify for long-term care insurance. You have to be in good health to get the coverage.

n A relatively small number of the 65+ population actually end up in a nursing home (3.5% in 2012)

n People would rather get long-term care at home. About 80 percent of care at home is provided by an unpaid caregiver who may be a family member or friend.

SolutionsReserve National policies can offer solutions to the challenges older Americans face with long-term care.

The life insurance policies and optional riders thereunder that are offered by Reserve National are not long-term care insurance.

Dare to Soar | 37

To find costs in your state for: • Homemaker Services• Home Health Aide• Adult Day Health Care• Assisted Living• Nursing Home

Go to http://longtermcare.gov/costs-how-to-pay/costs-of-care-in-your-state/


The PresentationThe following are some talking points for your presentation:

n What steps have you taken to obtain a LTC policy? – Ask about their health. Have they been denied LTC coverage? – It is suggested doing a health history before starting the presentation.

n Discuss the need and statistics for long-term care.

n Talk about the different settings people receive long-term care. – Nursing facility – Care at your home

n Statistics show most people are choosing to receive care in the comfort of their own home. – Ask your prospect, “If you had a choice, and your doctor said it would be ok, what would you prefer?”

n Discuss the best age to apply and cost considerations: – 50s or 60s before health starts to deteriorate – 70s if healthy

Reserve National Policy SolutionsFor the client who already has or wants to purchase long-term care insurance, Reserve National policies can supplement their coverage with a:

n Home Health Care policy to help during the long-term care policy qualifying period or in the event services are needed at home.

n Life policy with the Short-Term Care and/or Accelerated Death Benefit Riders.

For the client who believes a long-term care policy is not affordable and is looking for other options:

n “Reserve National has a less costly alternative that may help you with some of your future health care needs.”

n Present three options, depending on their health.

n One recommendation is to combine a Whole Life insurance (WL-1) policy with the Short-Term Care (STC) rider and the Home Health Care (HHC) policy. This offers a powerful solution. For example:

Option 1 WL-1 with the STC rider and 2X HHC

Option 2 WL-1 with the STC rider with 1X HHC

Option 3 2X HHC

The Closen The need has already been discussed and confirmed.

n Finalize everything by saying; “It’s my job to help you obtain the most protection based on what is affordable to you.”

n Tell me, out of these three options, which one is the best fit for you?

This will either start the application process or open up the conversation for more discussion to reconfirm the need.

Thanks to Roger Schuster and John Schuster for developing the framework of these talking points and concepts for the Reserve National product solutions.

38 | Dare to Soar

Some books can improve your sales performance while others can truly impact your life. These books are some of the most often recommended by top sales pros. It is hoped they will inspire you and help make a difference in your career.

Secrets of Successful Insurance Sales by Jack Kinder Jr. and Garry KinderThe Kinder Brothers, two outstanding life-insurance salespersons share what they call a “value-added” approach to selling and refer to the buyer-oriented approach of “need selling rather than greed selling.”

The Greatest Salesman in the World by Og MandinoOffers a spiritual philosophy of salesmanship, which involves a message of honesty and believing in what you are selling.

Think & Grow Rich by Napoleon HillAndrew Carnegie’s magic formula for true and lasting success was the direct inspiration for this book.

How to Master the Art of Selling by Tom HopkinsTom Hopkins has had great influence on the world of sales andrecognized that selling is primarily a process of managing your own fears and focusing on what the customer needs.

Secrets of Closing the Sale by Zig ZiglarZiglar explains proven, practical sales techniques. Excerpt: Success is a personal standard, reaching for the highest that is in us, becoming all that we can be. Also check out his books: Selling 101 and See You At The Top.

The Little Red Book of Selling by Jeffrey GitomerA fun book that is short, sweet, and to the point. Excerpt: Sell to help the other person and let your sincerity of purpose shine through. When you have the pressure to sell, the prospect senses it, and backs off.

The Psychology of Selling by Brian TracyThis book will help you change the way you think about sales. With visualization techniques and tried and true sales advice, you will learn how to take command of your mind and also your customers. Also check out his book Be a Sales Superstar.

Attitude 101 by John C. Maxwell Reminds you that your attitude, as much as anything else, can determine your success. Excerpt: Value people. Praise effort. Reward performance.

How to Win Friends and Influence People by Dale Carnegie First published in 1936, this book is still the go-to-guide for developing advanced “people skills.”

How I Raised Myself From Failure to Success in Selling by Frank Bettger Bettger shares experiences in his life as an insurance sales person and offers tips on persistence, presentation, and developing relationships with colleagues.

An insurance sales rep, an administration clerk and their manager are walking to lunch when they find an antique oil lamp.

They rub it and a genie comes out in a puff of smoke. The Genie says, “I usually only grant three wishes, so I´ll give each of you just one.”

“Me first! Me first!” says the admin clerk. “I want to be in the Bahamas, driving a speedboat, without a care in the world.” Poof! She´s gone.

In astonishment, “Me next! Me next!” says the sales rep. “I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas and the love of my life.” Poof! He´s gone.

“OK, you´re up,” the Genie says to the manager. The manager says, “I want those two back in the office after lunch.”

Moral of story: always let your boss have the first say.

An insurance sales rep, an administration clerk and their manager are walking to lunch

They rub it and a genie comes out in a puff of smoke. The Genie says, “I usually only grant

In astonishment, “Me next! Me next!” says the sales rep. “I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of Pina

10 Great Sales Books to Put on Your Must-Read List

Dare to Soar | 39

One of the toughest parts of sales is when someone tells you “No, I’m not interested.” It is especially hard when you passionately

believe in what you are doing – you wonder how could they NOT want the solutions you offered?

Even veteran life insurance agents get the occasional no. “I was with a couple who had a new home and a small child. The meeting went great. During the course of the fact find it was determined there was a definite need for life insurance and I presented a combination of life insurance products that met their budget and provided a great solution. We filled out the applications and the wife signed without hesitation. Surprisingly, the husband refused to sign. No matter what I said I couldn’t change his mind and I left without making the sale.”

The agent kept replaying the call in his mind wondering what he had done wrong. He finally decided to call the wife who told him her husband had filed for divorce and it was a total shock to her.

The point is –there are times you can’t control the outcome. Don’t take it personally. When a prospective clients tells you no, remember this powerful formula: (SW x 4) + N: Some Will. Some Won’t. So What! Someone’s Waiting… Next!

Jack Canfield presented this concept in his book, The Success Principles: How to Get from Where You Are to Where You Want to Be. When selling life insurance there will be rejection along the way, do not give up… someone is waiting to hear your ideas and solutions and appreciate what you do for them.

The YES is out there... go get it.

Confucius says...“Needing insurance is like needing a parachute. If it isn’t there the first time, chances are you won’t be needing it again.”

(SW x 4) + N

Grand Game On

Conference ofChampions

Oct. 5-8, 2015 • San Diego, California

RESERVE NATIONAL