Welcome to the Welcome to the …..…..

Life Cycle UniversityLife Cycle UniversityGraduate StudiesGraduate StudiesGraduate StudiesGraduate StudiesMODULE II: BUILDING YOUR FUTUREMODULE II: BUILDING YOUR FUTURE

Presented byPresented byNational Life Group & American Classic AgencyNational Life Group & American Classic Agency

Jennifer WarfieldJennifer WarfieldDirector of Product Marketing & SalesDirector of Product Marketing & Sales

1TC42625 (0908) For agent use only. Not for use with the general public.

Today’s AgendaToday s Agenda Recap from Session 1 Marketing for Today

– Effective Seminar Sales Just the Facts…and More!

– Retirement Checkup Analysis and Design

– Use your toolsy Building Your Future

– Saving for Retirement and College Featured SolutionFeatured Solution

– FlexLife IUL Presenting the Concepts Next session preview

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Next session preview

Last TimeLast Time

Introduction to the programp g Our process: Using the Sales Cycle

– Marketing and sales scripts

Protecting What’s Important– Client strategies, starting out– Survivor Needs Fact FinderSurvivor Needs Fact Finder

Featured solutions– SecurePlus Provider with ABRs

Conducting an annual review– Life Insurance Checkup

Rule of 72

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Rule of 72– Use it or lose it!

The Sales CycleThe Sales Cycle

Identify the prospect– Marketing– Preapproach

Approach the prospect– Establish the relationship p– Discuss the process

Establish goals and gather information– Fact finding

Analyze the informationAnalyze the information– Develop solutions

Develop and present the plan– Objection handling

Implement the plan Implement the plan– Close the sale

Service the plan– Monitor and adjust

Referrals and cross sales opportunities

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– Referrals and cross-sales opportunities

Financial Planning: Process and Environment, Don A. Taylor and C. Bruce Worsham

Life StagesLife Stages

1 Protecting What’s Important1. Protecting What s Important2. Building Your Future3 Managing Your Retirement3. Managing Your Retirement4. Transferring Your Wealth

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Applying the Sales ProcessApplying the Sales Process

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National Life Group’sNational Life Group’s

K T lK T lKey ToolsKey Tools

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Key Tools and MaterialsKey Tools and Materials

Materials Materials– Personal Life Cycle Agent Guide, 63760– Initial Questionnaire, 63744Initial Questionnaire, 63744– Retirement Checkup Agent Guide, 64294– Retirement Checkup Checklist, 64295– How to Profit from Your Seminar, 62052

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Key Tools and MaterialsKey Tools and Materials

Tools and Resources Tools and Resources– NationalLifeGroup.com– Internal Sales Desk 800-906-3310 Internal Sales Desk 800 906 3310

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Marketing SuccessfullyMarketing SuccessfullyMarketing SuccessfullyMarketing Successfully

The Pre-Approachand The Approach

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Effective Seminar SalesEffective Seminar SalesEffective Seminar SalesEffective Seminar Sales

How to make the mostof your seminar activities

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What is Seminar Marketing?What is Seminar Marketing?

Marketing method to attract qualified Marketing method to attract qualified prospects

Consultative and educational processConsultative and educational process Mass marketing approach to group education Short concise benefit-oriented program that Short, concise, benefit-oriented program that

solves problems

An efficient way to convert qualified prospects into clients!

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Benefits of SeminarsBenefits of Seminars

Promote your business in a different way Promote your business in a different way Warmer follow ups vs. cold calls Referral potential Referral potential Promote the value of professionalism

St i t h ith t li t Stay in touch with current clients Keep up on the latest information

L i d ff Leverage your time and efforts

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Planning StepsPlanning Steps

Develop the right Find the right siteDevelop the right attitude

Set benchmarks for

Find the right site Create your seminar

marketing plansuccess

Define your target market

Develop your materials Conduct your seminar

dmarket Create your budget Choose your topic

Convert attendees into clients

Evaluate your successy p Select your speakers Select date and time

Evaluate your success PRACTICE PRACTICE!

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To help you along the way…To help you along the way…

How to Profit From Your From Your Seminar Agent Guide, 62052,

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Seminar Do’s and Don’ts*Seminar Do s and Don ts

DO offer refreshmentsDO offer refreshments DON’T charge to attend DO select the right venueDO select the right venue DON’T hold the event at convention centers,

or at your office DO choose a start time appealing to your

audienceDON’T d l k DON’T expect attendees to leave work to attend

16*Emerald Publications

Seminar Do’s and Don’ts*Seminar Do s and Don ts

DO choose the right day or night DO choose the right day or night– DON’T select the day of a holiday, major sporting

event, election day, etc.y

DO make it easy to register and attend DON’T entrust your registration to anyone y g y

who can’t answer basic questions DO use appealing marketing piecespp g g p

– DON’T cut corners on invitations

DO present yourself!

17*Emerald Publications

National Life Group Resources

Tax Free Retirement Seminar presentation Tax Free Retirement Seminar presentation Scripting Invitation flyer HTML email Invitation, flyer, HTML email Evaluation form

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NationalLifeGroup com NationalLifeGroup com NationalLifeGroup.com NationalLifeGroup.com

Finding and using your sales cycle resources

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Fact FindingFact FindingFact FindingFact Finding

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Four Objectives of Fact FindingFour Objectives of Fact Finding

1 Get the facts1. Get the facts2. Do some advance suspecting3 Reach the inner person3. Reach the inner person4. Build your prestige

O. Alfred Granum, Barry Albertstein, Delia Alberstein, Building a Financial Services Clientele, p.222

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(More Than) Just the Facts…(More Than) Just the Facts…

The Initial Questionnaire The Initial Questionnaire Retirement Checkup Checklist

(Saving for Retirement part 1)(Saving for Retirement, part 1) College Cost Worksheet

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Pi t t th i ht f t fi d Pivot to the right fact finders based on your clients’ responses

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The The R ti t R ti t Retirement Retirement

CheckupCheckupCheckupCheckup

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Your Retirement Checkup Resources:M k ti G id d Ch kli tMarketing Guide and Checklist

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Setting the StageSetting the Stage

Set expectations with the client Set expectations with the client Explain to the client what you hope to

achieve with this worksheetachieve with this worksheet– Determine whether are on track to accumulate

enough retirement– What income producing sources are available to

themDi th f t d f l– Discuss the power of tax deferral

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Retirement Ch kliChecklist

Revisit the issues from the Initial from the Initial Questionnaire

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SAVING FOR RETIREMENT: Basic i f ti th li t’ t information on the client’s current savings plan

- When will you retire?- Will you retire when ready?

H h l i g h d ?- How much planning have you done?- Types of savings?- Confident that you have enough?- Tax efficiency?

M t ti t l ?- Max to retirement plans?- Concerns about retirement?- What about life insurance?

SECTION 2: RETIREMENT NEEDS/GOALSLINE 1: Monthly income need- LINE 1: Monthly income need

SECTION 2: RETIREMENT NEEDS/GOALSLINE 2: Special savings needs

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- LINE 2: Special savings needs

PAGE 2: CURRENT RETIREMENT PLAN

PERSONAL RETIREMENT SAVINGS: Including IRAs, CDs, annuities, savings/money markets, etc.

EMPLOYER-SPONSORED RETIREMENT PLANSLINE 3: Subtotal of personal savings and employer sponsored plansemployer-sponsored plans

LINE 4: Calculate the future value using Conversion Table A, Column A on page 3(MULTIPLY LINE 3 x FACTOR)

LINE 5: Current annual savings for retirementLINE 6: Calculate the future value using Conversion Table A, Column B

NON PENSION ASSETS: Including real estate, business interests

31LINE 7: Subtotal of non-pension assets

So far, you’ve helped the client determine:- Retirement needs and goals- Income sources to help fund retirement- Income sources to help fund retirement

Now let’s determine if the retirement plan will meet the retirement needs

LINE 8: Total funds available(EQUALS LINE 4 + LINE 6 + LINE 7 – LINE 2)(EQUALS LINE 4 + LINE 6 + LINE 7 LINE 2)LINE 9: Convert retirement assets to monthly income(LINE 8 x Conversion Rate in Table B)

Find the difference between income desired and Find the difference between income desired and income available(SUBTRACT LINE 9 – LINE 1)

IF THERE IS A SHORTFALL- Consider IRAs, Roth IRAs, Permanentlif i llife insurance to accumulatesupplemental retirement savings

IF THERE IS NO SHORTFALL- Discuss the impact of taxes and inflation on the plan

- Review the plan periodically

CONSIDER OTHER NEEDS- Survivor needs- Long term care needs

Di bilit d

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- Disability needs

Th C ll C t W k h tTh C ll C t W k h tThe College Cost WorksheetThe College Cost Worksheet

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Use this form to help the client estimate college funding needsestimate college funding needs

Li t th f t i l d ith l i g f List the factors involved with planning for college expenses:

- How long until children attend college?- Annual college cost

N b f ’ t iti- Number of years’ tuition- Plan to pay for college- Current savings

SALES CONCEPTS: - How life insurance cash values can

accumulate and provide educationfunds

- Survivor benefits should take collegeexpenses into consideration

- Impact of paying for college onretirement

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Case Analysis and DesignCase Analysis and DesignCase Analysis and DesignCase Analysis and Design

What does it all mean?What does it all mean?

Interpreting your factfinding results

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Classifying Your ClientsClassifying Your Clients

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Stage TwoStage Two

Building Your FutureBuilding Your FutureBuilding Your FutureBuilding Your Future

Reaching for financial dreams…Reaching for financial dreams…

37For agent use only. Not for use with the general public.

Common Client AttributesCommon Client Attributes

Mid to late 30’s to early 40’s Mid to late 30 s to early 40 s Income exceeds expenditures Stable cash flow Stable cash flow Growing family and/or upgrading house

G i tf li f d l t Growing portfolio focused on long term growth

Maximizing employer sponsored opportunities Maximizing employer-sponsored opportunities Paying down debt

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Common Client NeedsCommon Client Needs

Protection and Risk Management! g Employer-sponsored benefits

– Life insurance– Disabilityy– Medical

Manage taxes through additional savings– Tax-free, tax-deferred, taxable, ,

Protection from loss of spouse’s income Education funding for children

Primary Insurance Risk Protection from loss of income due to death

or disability39

or disability

Analysis Tools and RResources

Online Retirement Calculators Online Retirement Calculators College Funding Calculator Internal Sales Desk at 800 906 3310 Internal Sales Desk at 800-906-3310

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NationalLifeGroup comNationalLifeGroup comNationalLifeGroup.comNationalLifeGroup.com

Online Calculators

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Take ActionTake Action

Take full advantage of employer-sponsored Take full advantage of employer sponsored retirement plans and company-provided benefits

If client owns a business, use corporate dollars to purchase life, disability and medical coverage

Potentially reduce current taxes by putting money in an IRAan IRA

Set aside money for children’s education expenses Consider personally owned life insurance for p y

additional benefits

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Featured SolutionFeatured Solution

FlexLife IUL

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Why FlexLife IUL?Why FlexLife IUL?

Indexed Universal Life allows upside Indexed Universal Life allows upside potential for longer time horizons

Downside protection against market Downside protection against market downturns

Cash accumulation for retirement and other Cash accumulation for retirement and other savings needs

Guaranteed lifetime income with LIBR Leverage premium dollars with riders

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Your FlexLife MarketYour FlexLife Market

Replacing SecurePlus Paragon Replacing SecurePlus Paragon Emerging affluent Business owners Business owners

L ki f Looking for…– Supplemental retirement income

Long term tax advantaged accumulation– Long term, tax-advantaged accumulation– Guaranteed lifetime income– Living benefits

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Living benefits

Introducing FlexLifeIntroducing FlexLife

Improved PerformanceImproved Performance– Accumulated values– Income solves– Large case policy valuesg p y

Special Enhancements– Lower mortality chargesLower mortality charges– Additional band at $3 million– Interest enhancement

Riders to help you sell– Lifetime Income Benefit Rider – Systematic Allocation Rider

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y– Accelerated Benefit Riders

FlexLife: Keeps What’s Goodp

Same 4 great indexed strategies– Cap focus– Participation focus– No cap– Point-to-averagePoint to average

Same competitive cap and participation rates

Same established renewal rate philosophy

Average annualized credited rates from product Average annualized credited rates from product introduction range (May 2007 – June 2011) from 5.2% to 6.8%, depending on index strategy

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Highest one year return, 28.7%

FlexLife HighlightsFlexLife Highlights

Lifetime Income Benefit Rider (LIBR)

Systematic Allocation Rider

Policy Protection Period 10 years

Death Benefit Protection Rider– Guaranteed coverage for up to 30 years for certain ages

Face Amount reduction greater than 25% starting in year 10 Face Amount reduction greater than 25% starting in year 10– MEC and Guideline testing still apply

Interest Enhancement of 0.35% starting in year 11

A fourth face amount band

Variable Net Cost Loans - Now also available in New York

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Product at a GlanceProduct at a Glance Issue Ages: 0 to 85 (age nearest birthday)

Minimum Initial Total Face Amount:– LSW: $100,000– NL: $25,000

Guideline Premium Test (GPT) & Cash Value Accum. Test (CVAT)

Banding:– Band 1: Minimum Face Amount to $249,999.99 – Band 2: $250,000.00 to $999,999.99a d : $ 50,000.00 to $999,999.99– Band 3: $1,000,000.00 to $2,999,999.99– Band 4: $3,000,000.00 and up

Pension Availability:

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Pension Availability:– All qualified pension and profit sharing plans

except 412(e)(3)

Product at a GlanceProduct at a Glance Five Interest Rate Crediting Strategies

1 Fixed-Term Strategy1. Fixed Term Strategy2. Point-to-Point, Cap Focus Index Strategy3. Point-to-Point, Participation Rate Focus Index Strategy4. Point-to-Point, No Cap Index Strategy5 Point-to-Average Index Strategy5. Point to Average Index Strategy

Index – S&P 500®1

0% Fl I d St t i 0% Floor on Index Strategies

2.5% Minimum Interest Rate Guarantee2

B i – Basic strategy– Fixed-Term Strategy– Upon surrender or death for Indexed Strategies

1 “Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500”, and “500” are trademarks of The McGraw-Hill

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Standard & Poor s® , S&P® , S&P 500® , Standard & Poor s 500 , and 500 are trademarks of The McGraw Hill Companies, Inc. and have been licensed for use by National Life Insurance Company and Life Insurance Company of the Southwest. These products are not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability of purchasing the Products.2 Guarantees are dependent upon the claims-paying ability of the issuing company.

Plus…Plus…

Lifetime IncomeLifetime IncomeLifetime IncomeLifetime IncomeBenefit RiderBenefit Rider

Guaranteed lifetime income from an Indexed Universal Life policy

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New with FlexLife

S t ti All ti RidSystematic Allocation Rider

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Premium swept to

Year OnePremium swept to

Point-to-Point Strategy

At end of Index PeriodPeriod

Interest Credited

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Year Two

At end of Second Y I d P i dYear Index Period

Interest Credited

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What Did They Miss?

Everything in Between!Between!

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How can they yparticipate in

what they ymissed?

S t tiSystematic Allocation

Rider

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Systematic Allocation RiderSystematic Allocation Rider

FlexLife with the Systematic Allocation Rider allows FlexLife with the Systematic Allocation Rider allows the premium to be divided into 12 equal portions, allocated to the different index strategies that client chooses, throughout the 12 month period

R ltResult Twelve points versus one point Doesn’t guarantee higher returns but helps avoid Doesn t guarantee higher returns but helps avoid

putting all of your client’s eggs in one basket

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Systematic Allocation RiderSystematic Allocation Rider

Important addition to our IUL story Important addition to our IUL story

Avoids “all-eggs-in-one-basket” incidents– Premium not tied to only a single point in the index

Especially makes sense for single premiums Especially makes sense for single premiums and 1035’s– Grandparent making large single gifts to grandchildGrandparent making large single gifts to grandchild

– Large 1035 dump-in amount

Company paying Executive Bonus based

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– Company paying Executive Bonus based on year-end results

Systematic Allocation RiderSystematic Allocation Rider

May be elected at or after issueMay be elected at or after issue

No additional charge for rider

Minimum Premium - $3,000

New money only– New premium

– 1035 Exchange

Same minimum guarantee as Fixed Strategy

59Guarantees are dependent upon the claims-paying ability of the issuing company.

Leverage your premium dollar with ridersLeverage your premium dollar with riders

* Policy loans and withdrawals and the use of living benefits riders reduce the policy’s cash

l d d th b fit d lt i

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value and death benefit and may result in a taxable event..

**Riders are optional, may require an additional premium and may not be available in all states.

FlexLife RidersFlexLife Riders

Accelerated Benefits Lifetime Income Benefit Accelerated Benefits Riders

Additional Protection

Lifetime Income Benefit Rider

Other InsuredBenefit

Balance Sheet Benefit Children’s Term

Overloan Protection Qualified Plan Exchange

ll Children’s Term Death Benefit

Protection

Systematic Allocation Waiver of Monthly

Deductions Guaranteed Insurability

Deductions Waiver of Premium

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State Approvals ppas of 10/10/2011

National Life Life of the SouthwestNational LifeApproved Everywhere Except

California

Life of the SouthwestApproved Everywhere Except

California Connecticut Delaware

N d

Connecticut Delaware

N d Nevada Nevada Not Available in New York

Note: LSW has New Life Application8121(0911)

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Present Your CasePresent Your Case

Case Design and Presentation

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Helping clients understand your recommendations helpsp

close the sale!

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Tax Free Retirement Consumer Brochure, 6433564335

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Servicing the PlanServicing the Plan

Periodic client reviews makes them ai iClient for Life!

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For Next TimeFor Next Time

Recap Session 2 Recap Session 2 Stage Three: Managing Your Retirement Retirement distribution planning Retirement distribution planning

– Living well in retirement

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Thank you!Thank you!

What’s your Rule of 72?What’s your Rule of 72?

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