AGLA Plan For Life

  • 1,681 views
Uploaded on

Plan For Life Presentation

Plan For Life Presentation

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • Hi Mr Sgarrett
    I am from Singapore. I would like to request for a copy of your slides to enable me to develop one in my career. I appreciate your kind assistance on this request if its possible. My email is jairus.cheon@gmail.com
    Are you sure you want to
    Your message goes here
No Downloads

Views

Total Views
1,681
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
1
Likes
3

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. A PLAN FOR LIFE The purpose of A Plan for Life is to help people plan for their future financial security
  • 2. American General Life and Accident Insurance Company
    • Providing Security To Americans For Over 100 Years
    • Paid Over $420 Million In Life and A&H Claims Last Year
    • Over 4 Million Customers
    • Professional Sales Force
    • Member Of The Insurance Marketplace Standards Association (IMSA)
  • 3. I’d like to tell you about myself ... Now that I’ve told you about myself, may I ask you a question?
  • 4. In your opinion, is it important for people to commit part of what they earn for their future financial security?
  • 5. Part of Everything You Earn Should Be Yours To Keep ... This Probably Won’t Happen Unless You Have A Plan.
  • 6. A Plan That Helps Ease The Financial Worry Of ... DYING TOO SOON … Losing your future earnings or LIVING TOO LONG … Outliving your financial resources
  • 7. What is the likelihood of dying too soon or living too long? The answer is provided by recent government data. For every 100 people age 65 and over, the following situation exists today: Sources: U.S.Census Bureau, 2000; A Profile of Older Americans: 2002, Administration on Aging, Department of Health and Human Services. 17 are dead 7 have annual incomes over $50,000 26 have annual incomes under $10,000 50 have annual incomes between $10,000 and $50,000
  • 8. Sources: U.S.Census Bureau, 2000; A Profile of Older Americans: 2002, Administration on Aging, Department of Health and Human Services. 17 are dead Would you agree these are the ones we could consider financially successful at age 65? 7 have annual incomes over $50,000 26 have annual incomes under $10,000 50 have annual incomes between $10,000 and $50,000
  • 9. Sources: U.S.Census Bureau, 2000; A Profile of Older Americans: 2002, Administration on Aging, Department of Health and Human Services. 17 are dead 7 have annual incomes over $50,000 26 have annual incomes under $10,000 50 have annual incomes between $10,000 and $50,000 These people didn’t plan to fail … they simply failed to plan.
  • 10. Sources: U.S.Census Bureau, 2000; A Profile of Older Americans: 2002, Administration on Aging, Department of Health and Human Services. 17 are dead 7 have annual incomes over $50,000 26 have annual incomes under $10,000 50 have annual incomes between $10,000 and $50,000 Is it fair to assume you would want to protect against dying too soon or living too long?
  • 11. Insurance can help ease the financial worry … By taking these four steps STEP 1 Set Financial Goals STEP 4 Review and Update Plan Regularly STEP 3 Take Action STEP 2 Develop a Plan
  • 12. STEP 1 Set Financial Goals STEP 4 Review and Update Plan Regularly STEP 3 Take Action STEP 2 Develop a Plan Would you agree that by taking these four steps, you could be further down the road toward financial security? FINANCIAL SECURITY
  • 13. STEP 1 Set Financial Goals STEP 4 Review and Update Plan Regularly STEP 3 Take Action STEP 2 Develop a Plan FINANCIAL SECURITY We can accomplish this goal in one of two ways -- we can start now and have the rest of our working years … Or we can wait. But the longer we wait ...
  • 14. The harder the climb! Unfortunately, many people wait too long, and ultimately do nothing. That’s why procrastination is the leading cause of financial failure!
  • 15. The harder the climb! In view of this, would you agree it is important to begin your financial planning as soon as possible?
  • 16. Often as I work with people, they naturally begin to think of others who should know about this process. If, in the course of our work together, you think of someone who might benefit from our process, I hope you’ll let me know and we can discuss the best way to introduce me to them. Fair enough?
  • 17. To get started I need to ask you a few questions ... Some of the information I’ll be asking for is confidential, and you can be certain that it will remain just that - confidential. If any one knows of anything we discuss, it will be because you, not I, saw fit to tell them. Complete Factfinder page 1
  • 18. Are you getting credit for all your earnings? Benefits statements for Social Security are sent to you each year. It is recommended that you check your statement to make sure that all the information is accurate, because these records have a direct bearing on your Social Security benefits. Have you reviewed your Social Security benefits statement?
  • 19. Factfinder pages 2 and 3
  • 20. Most of us have found that there never seems to be a convenient time to put money aside to protect against DYING TOO SOON or LIVING TOO LONG Why is this so?
  • 21. Most people spend all of their paycheck before they have a chance to spend for their own financial security.
  • 22. Experts recommend that you spend for your financial security first and spend the balance on other needs. People who do this have money when they really need it. I assume you would want to be one of these people?
  • 23. In order to help protect against dying too soon or living too long, there is probably some amount you can afford. But could you manage $10 a week? An additional $500 a week might be impossible.
  • 24. So the right amount for you is somewhere between $10 a week and $500 a week. What is the right amount for you?
  • 25. Take a moment to review the information. Proceed to one of the following presentations: Needs Analysis Pool Presentation Most Valuable Possession
  • 26. Needs at Death Final Expenses Fund Mortgage/Rent Fund Payment of Debts Education Fund Let’s Review Your Specific Needs
  • 27. Factfinder page 5
  • 28. Final Expenses Fund
    • To provide for expenses your family may face at your death. These may include:
      • Funeral Expenses
      • Medical Expenses
      • Legal Fees
    Financial advisors usually recommend 50% of the higher wage earner’s annual income
  • 29. What is the right amount for your Final Expenses Fund?
    • Average charge for a hospital stay is $17,300
    • Approximately 2% of all hospitalizations end in death
    The Burden of Final Expenses Sources: Federal Trade Commission, June 2000; National Funeral Director’s Association 2001 General Price Life Survey; U. S. Department ot Health and Human Services, Hospitalization in the United States 2002 Fact Book
    • Average funeral cost is $6,000 - $10,000
    • Average cost of funeral services is $5,180, plus an additional $1,000 - $3,000 for the gravesite and marker
  • 30. What is the right amount for your Debt Fund? To help pay all outstanding bills, loans, and credit card balances Source: Federal Reserve Statistical Release, Consumer Credit, November 2005 Debt Fund The average consumer debt is over $17,000 per household and rising (not counting mortgage debt)
  • 31. Mortgage Fund Our Home - The Largest Investment Most Of Us Make What is the right amount for your Mortgage Fund?
  • 32. Rent Fund What is the right amount for your Rent Fund? The Spiraling Cost of Renting
    • At death, a Rent Fund can:
      • Help pay the rent
      • Help pay for future rent increases
      • Be used to help buy a house
    Source: U.S. Census Bureau, American Factfinder, 2004 American Community Survey The average cost of rent in the United States is $694.00 per month
  • 33. How does an education impact income? Education Fund
    • College graduates can earn at least $1,000,000 more over a lifetime than their high school counterparts
    • The average annual income of college graduates was 89% higher than that of high school graduates
    Source: U.S. Census Bureau, Current Population Survey, March 2002
  • 34. Education Fund
    • $21,235 private four-year institutions
    • $5,491 public four-year institutions
    • $2,191 public two-year institutions
    Source: www.collegeboard.com Average annual tuition and fees (not counting room and board)
  • 35. Sample of Public Universities What is the right amount for the Education Fund? 2005 College Costs Source: www.collegeboard.com $18,990 $6,802 $4,648 Georgia Institute of Technology $12,798 $5,229 $5,812 University of Kentucky $16,597 $6,260 $3,094 University of Florida $18,313 $6,590 $4,515 University of North Carolina $14,679 $6,952 $6,399 Texas A&M $21,744 $7,060 $11,508 Penn State University $23,877 $6,389 $7,133 University of Virginia $24,332 $12,554 $6,512 University of California Out-of-State Tuition Room & Board In-State Tuition
  • 36. Factfinder page 6
  • 37. The average cost of raising a child to age 18
      • $77,400 for child care
      • $27,450 for groceries
      • $22,500 for transportation
      • $10,908 for clothing
      • $10,800 for education
      • $5,940 for gifts
      • $5,940 for recreation
      • $5,400 for health care $5,400 for insurance
      • $5,400 for miscellaneous
      • $190,528 total
    Source: U. S. Department of Agriculture annual report, “The Cost of Raising a Child,” Release No. 0127.98
  • 38. Social Security Survivorship Benefits 1 If earnings are not shown, interpolate between the two nearest amounts illustrated. Actual benefits will depend upon wage history and actual age. Assumes death in 2006. 2 Assumes full-time employment. If surviving spouse is not employed full-time, somewhat larger benefits may be available for the one child and two children situations. Benefits may be payable to a spouse age 60 and over, or any age if caring for a child who is under 16 or disabled. Benefits may be payable to children who are under age 18, or who are under age 19 if in high school, or who are any age if disabled before 22. Source: The Mercer Company, 2005
  • 39. The Plan for Life Solution
  • 40. Do you believe that this insurance plan accomplishes the right things for you? In all of your life, have you ever been sorry for doing the right thing? NH NN NM NC
  • 41. Next Steps
  • 42. Now that you’ve seen the type of work I do, tell me … do you see the value in this process? With that in mind, I have an important question to ask … Can we brainstorm to see if we can identify some people you know who might find value in this process?
  • 43. Who Do You Know…
    • Do You Know Someone Who:
      • Recently changed jobs?
      • Just became engaged or married?
      • Has a new baby or is expecting?
      • May have money to invest?
    • Who Would You Call To:
      • Invite to a cook-out / family gathering?
      • Invite to an engagement / wedding?
      • Ask about financial matters / career?
      • Organize a youth outing?
  • 44. I’ll be sending them this brochure showing the type of work I do and describing my background.
  • 45.
    • When appropriate, I would ask that you add a brief note of introduction on the front.
    • Here’s an example.
  • 46.  
  • 47.  
  • 48. If you decide to take action and start a plan ... I will commit to work with you to keep your plan updated. NH NN NM NC
  • 49. Next Steps
  • 50. Now that you’ve seen the type of work I do, tell me … do you see the value in this process? With that in mind, I have an important question to ask … Can we brainstorm to see if we can identify some people you know who might find value in this process?
  • 51. Who Do You Know…
    • Do You Know Someone Who:
      • Recently changed jobs?
      • Just became engaged or married?
      • Has a new baby or is expecting?
      • May have money to invest?
    • Who Would You Call To:
      • Invite to a cook-out / family gathering?
      • Invite to an engagement / wedding?
      • Ask about financial matters / career?
      • Organize a youth outing?
  • 52. I’ll be sending them this brochure showing the type of work I do and describing my background.
  • 53.
    • When appropriate, I would ask that you add a brief note of introduction on the front.
    • Here’s an example.
  • 54.  
  • 55.  
  • 56. Would you agree it’s time to insure the goose? NH NN NM NC If you had a goose that was laying golden eggs, would you insure the goose or the eggs? Many of us are guilty of insuring only the eggs.
  • 57. Next Steps
  • 58. Now that you’ve seen the type of work I do, tell me … do you see the value in this process? With that in mind, I have an important question to ask … Can we brainstorm to see if we can identify some people you know who might find value in this process?
  • 59. Who Do You Know…
    • Do You Know Someone Who:
      • Recently changed jobs?
      • Just became engaged or married?
      • Has a new baby or is expecting?
      • May have money to invest?
    • Who Would You Call To:
      • Invite to a cook-out / family gathering?
      • Invite to an engagement / wedding?
      • Ask about financial matters / career?
      • Organize a youth outing?
  • 60. I’ll be sending them this brochure showing the type of work I do and describing my background.
  • 61.
    • When appropriate, I would ask that you add a brief note of introduction on the front.
    • Here’s an example.
  • 62.  
  • 63.  
  • 64. Would you agree that the only person who can take care of the older person you will someday be …. NH NN NM NC Is the younger person you are now?
  • 65. Next Steps
  • 66. Now that you’ve seen the type of work I do, tell me … do you see the value in this process? With that in mind, I have an important question to ask … Can we brainstorm to see if we can identify some people you know who might find value in this process?
  • 67. Who Do You Know…
    • Do You Know Someone Who:
      • Recently changed jobs?
      • Just became engaged or married?
      • Has a new baby or is expecting?
      • May have money to invest?
    • Who Would You Call To:
      • Invite to a cook-out / family gathering?
      • Invite to an engagement / wedding?
      • Ask about financial matters / career?
      • Organize a youth outing?
  • 68. I’ll be sending them this brochure showing the type of work I do and describing my background.
  • 69.
    • When appropriate, I would ask that you add a brief note of introduction on the front.
    • Here’s an example.
  • 70.  
  • 71.  
  • 72. A PLAN FOR LIFE
  • 73.
    • Today, you may be healthy, able to work, and earn a living.
    • Tomorrow, you may unable to work due to an unexpected sickness or accident.
    The problems of becoming disabled Source: American Council of Life Insurers, 2001. The likelihood of suffering a serious disability between the ages of 35 and 65 is 1 in 3. A Plan for Life can become self- completing if you become disabled.* * If your policy provides for additional benefits if you should become totally disabled, waiver of premium or waiver of monthly deductions, as applicable, may apply.
  • 74. There is only one financial product that helps protect against dying too soon or living too long by providing one or more of these alternatives ...
    • Cash at death
    • Cash values for retirement
    • Cash values for emergencies, education and other goals
    • Self-completion if disabled
    LIFE INSURANCE
  • 75. What is our single most valuable possession? It is our ability to get up every day and earn a living. If we can keep doing it, we will earn a fortune! $450,000 $400,000 $350,000 $300,000 $ 250,000 $200,000 $125,000 60 $900,000 $800,000 $700,000 $600,000 $ 500,000 $400,000 $250,000 55 $1,350,000 $1,200,000 $1,050,000 $900,000 $ 750,000 $600,000 $450,000 50 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $ 1,000,000 $800,000 $600,000 45 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $ 1,250,000 $1,000,000 $750,000 40 $2,700,000 $2,400,000 $2,100,000 $1,800,000 $ 1,500,000 $1,200,000 $900,000 35 $3,150,000 $2,800,000 $2,450,000 $2,100,000 $1,750,000 $1,400,000 1,050,000 30 $3,600,000 $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 25 $4,050,000 $3,600,000 $3,150,000 $2,700,000 $2,250,000 $1,800,000 $1,350,000 20 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 Average Income to Age 65 Present Age
  • 76. Our Home - The Largest Investment Most Of Us Make
  • 77.
    • About 1 in 2 men and 1 in 3 women are predicted to develop heart disease or cancer in their lifetime.
    • 64.4 million Americans are living with one or more forms of cardiovascular disease.
    • Each year 700,000 Americans experience a stroke.
    • Nearly 9 out of 10 deaths and about three-fifths of the disabling injuries suffered by American workers in 2001 occurred off-the-job.
    • In the home there is a fatal injury every 16 minutes and a disabling injury every 4 seconds.
    Illness and Injury Facts Sources: Heart Disease and Stroke Statistics, Cardiovascular Disease – 2004 Update, American Heart Association, Report on Injuries in America – 2001, National Safety Council
  • 78. Examples of Cause of Death Tractor accident 38 Farmer Brain tumor 55 Postal clerk Accident – fall 41 Mason Motorcycle accident 22 Student Pneumonia 53 Garage Owner Accident at home 29 Teacher Hunting accident 58 Restaurant Mgr. Auto accident 33 Attorney Lung cancer 42 Salesman Cause of Death Age Occupation
  • 79. Unlike other products ... You buy insurance when you don’t need it ... So you have it when you do need it.
  • 80.
    • Today, you may be healthy, able to work, and earn a living.
    • Tomorrow, you may be unable to work due to an unexpected sickness or accident.
    The problems of becoming disabled Source: American Council of Life Insurers, 2001. The likelihood of suffering a serious disability between the ages of 35 and 65 is 1 in 3. A Plan for Life can become self- completing if you become disabled.* * If your policy provides for additional benefits if you should become totally disabled, waiver of premium or waiver of monthly deductions, as applicable, may apply.
  • 81. Our single most valuable possession Is the ability to get up every day and earn a living. If we can keep doing it, we will earn a fortune! $450,000 $400,000 $350,000 $300,000 $ 250,000 $200,000 $125,000 60 $900,000 $800,000 $700,000 $600,000 $ 500,000 $400,000 $250,000 55 $1,350,000 $1,200,000 $1,050,000 $900,000 $ 750,000 $600,000 $450,000 50 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $ 1,000,000 $800,000 $600,000 45 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $ 1,250,000 $1,000,000 $750,000 40 $2,700,000 $2,400,000 $2,100,000 $1,800,000 $ 1,500,000 $1,200,000 $900,000 35 $3,150,000 $2,800,000 $2,450,000 $2,100,000 $1,750,000 $1,400,000 1,050,000 30 $3,600,000 $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 25 $4,050,000 $3,600,000 $3,150,000 $2,700,000 $2,250,000 $1,800,000 $1,350,000 20 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 Average Income to Age 65 Present Age
  • 82. A story to remember
  • 83. Is your life insurance adequate? * Based on the United States annual inflation rate 2.7% $102,700 $ 1 0 0 , 0 0 0 2004 6.7% $106,743 $ 1 0 0 , 0 0 0 2002 11% $111,053 $ 1 0 0 , 0 0 0 2000 15% $115,877 $ 1 0 0 , 0 0 0 1998 21% $121,382 $ 1 0 0 , 0 0 0 1996 27% $127,651 $ 1 0 0 , 0 0 0 1994 35% $135,425 $ 1 0 0 , 0 0 0 1992 48% $148,733 $100,000 1990 Percentage Increase Required Amount of Insurance Required in 2005 to Provide same benefits* Assumed Amount of Insurance Owned Year of last Insurance Review
  • 84. Unlike other products ... You buy insurance when you don’t need it ... So you have it when you do need it.
  • 85. Your Obligation
    • Set aside $___ per month
    Our Obligations*
    • Pay benefits to your survivors upon your death
    • Cash to supplement retirement income
    • Provide cash to help with emergencies, education, and other needs
    • Waive your premium or monthly deduction if you become disabled for more than six months prior to age 60
    • Allow you to increase coverage without evidence of insurability
    * Based on policy provisions
  • 86. Product Comparison
    • Wide variety of riders -- waiver of premium or monthly deduction, accelerated benefit rider and disability income rider (where available), guaranteed purchase rider, children & spouse rider
    • Waiver of premium in the event of disability
    Optional Riders Available
    • Cash values accumulate and can be used to provide loans, surrender value, and make premium payments
    • None
    Cash Value
    • Cash value may be used to increase death benefit value
    • Protection is guaranteed for life as long as premiums are paid
    • More coverage for the cost
    • Coverage terminates at the end of the term or becomes too expensive to continue
    Death Benefit
    • Higher cost
    • Initial low cost
    Premium Cost Permanent Insurance Term Insurance
  • 87. There is only one financial product that helps protect against dying too soon or living too long by providing one or more of these alternatives ...
    • Cash at death
    • Cash values for retirement
    • Cash values for emergencies, education and other goals
    • Self-completion if disabled
    LIFE INSURANCE
  • 88. Most people spend all of their paycheck before they have a chance to spend for their own financial security. I assume you would want to be one of these people? People who do this have money when they really need it. Experts recommend that you spend for your financial security first and spend the balance on other needs.
  • 89. The paradox of insurance People say they don’t want to pay insurance premiums so they can spend more to enjoy life. The opposite is true. Insurance makes it possible for us to spend more of our income with a clear conscience ... for we know that our families will be provided for even if we become injured, ill, or die. Without insurance, we’d have to save and save and save some more, and give up doing many things we can do because we do have insurance.
  • 90. Your Obligation
    • Set aside $___ per month
    Our Obligations*
    • Pay benefits to your survivors upon your death
    • Cash to supplement retirement income
    • Provide cash to help with emergencies, education, and other needs
    • Waive your premium or monthly deduction if you become disabled for more than six months prior to age 60
    • Allow you to increase coverage without evidence of insurability
    * Based on policy provisions
  • 91. American General Life and Accident Insurance Company
    • Providing Security To Americans For Over 100 Years
    • Paid Over $420 Million In Life and A&H Claims Last Year
    • Over 4 Million Customers
    • Professional Sales Force
    • Member Of The Insurance Marketplace Standards Association (IMSA)
  • 92. A permanent life insurance policy provides many benefits for achieving financial security
  • 93. Income tax advantages of permanent life insurance
  • 94.