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What We do . . . The Resource Center  is an Insurance Marketing Organization devoted to helping you grow and protect your ...
Meet Jim Brown… <ul><li>26 years in the field…selling annuities,    life insurance and securities products </li></ul><ul><...
For 2008…What is Your GOAL As a Financial Advisor? You know you can get there... Getting to the Next Level! •   $200,000 •...
Who We Represent . . . The Resource Center  represents these and other insurance companies: <ul><li>LSW  (Life Insurance C...
Recommended Products . . . We can recommend any product.    So why  LSW ? They have just released  new products  and  ride...
CAPTURE THE WINNINGS! DOW JONES INDUSTRIAL AVG - 1940-1960
CAPTURE THE WINNINGS?!? DOW JONES INDUSTRIAL AVG - 1960-1980
CAPTURE THE WINNINGS! DOW JONES INDUSTRIAL AVG – 1980-2000
YESTERDAY & TODAY Dow Jones  1960-1980 Dow Jones 1995-Present
<ul><li>Proven leader in all aspects of the fixed and indexed annuity marketplace! </li></ul><ul><li>Since 1996 – One of t...
Guaranteed Lifetime Income Rider <ul><li>Guarantees a steady stream of income for the rest of your life </li></ul><ul><li>...
<ul><li>Optional living benefit;  issue age 40  and older </li></ul><ul><li>Rider allows you to take an  annual Guaranteed...
<ul><li>To qualify: </li></ul><ul><li>Only available on life of the Annuitant </li></ul><ul><li>Must be  unable  to perfor...
Rider Charge Charge is .40% of Policy Accumulation Value for first 10 Policy years beginning on the 1 st  Policy Anniversa...
<ul><li>LSW uses a formula to determine your  payment from your annuity… </li></ul><ul><li>Income  “Calculation” Base  </l...
Step 1: Income “Calculation” Base <ul><li>Before Election : </li></ul><ul><ul><li>Increases at the annual Roll-Up Rate of ...
Step 1: Before Election - Automatic Reset of Income Calculation Base: 5 th , 10 th , 15 th , 20 th , election Years of Inc...
Guaranteed Withdrawal Payment for Life Guaranteed Withdrawal Payment is $10,819  a year for life $ 100,000 LSW Indexed Ann...
Enhanced Benefit for Life Enhanced Benefit Withdrawal Payment is $16,720  a year for life $ 100,000 LSW Indexed Annuity  &...
Step 2:  Guaranteed Withdrawal Percentage Table Annuitant ’ s Attained Age at Time of Election Single Life Income Percenta...
Innovations – LSW’s Guaranteed Lifetime Income Rider <ul><li>7 % annual Roll-Up Rate on the Income “Calculation” Base; gua...
Innovations – LSW’s Guaranteed Lifetime Income Rider <ul><li>Guaranteed Withdrawal Payments may be increased –  Step-up ca...
 
Issue #6 Healthcare Crisis <ul><li>Americans 45 and up consider healthcare the single most critical national issue and exp...
Issue #6 Healthcare Crisis <ul><li>How are you accumulating enough assets to pay for future healthcare expenses for you an...
Issue #7 Investor Blunders <ul><li>Greed…In an effort to hit a homerun, we take risks. Risks can reap big rewards, but usu...
Issue #7 Investor Blunders <ul><li>March 10, 2000, NASDAQ reached 5,132 </li></ul><ul><li>Oct. 10, 2002, fell to 1,108 </l...
Issue #7 Investor Blunders <ul><li>Is your retirement money protected from market risk? </li></ul><ul><li>What is your ris...
<ul><li>Male Age 66 </li></ul><ul><li>Retired from GM 1 Year Ago </li></ul><ul><li>Had $500,000 Invested in Money Manageme...
t PROTECT YOUR PORTFOLIO Fully Invested in Market a la S&P $400,000 Invested in Mutual Fund $200,000 in Mutual Fund $200,0...
 
 
What We do . . . The Resource Center  is an Insurance Marketing Organization devoted to helping you grow and protect your ...
For 2008…What is Your GOAL As a Financial Advisor? You feel you can get there... Getting to the Next Level! •   $200,000 •...
Why Haven’t You Been Reaching Your Goals? You’re doing it all wrong! If you really look at the marketing materials sent to...
Everybody Else Appears to Be Successful . . .   <ul><li>E-Mail </li></ul><ul><li>Faxes </li></ul><ul><li>•  Postcards & Ma...
My Future is Bright! . . . There’s Nothing to It… But to DO IT!   Life is Good!
Just a Few Situations?… Getting Leads Scheduling  First Appointments First Appointments No Shows No House at that Address ...
Just a Few Situations?… CAR REPAIRS SPOUSE KIDS MAIL BILLS MARKETING CREDIT CARDS MORTGAGE “ You’ve Got to Get a Real Job!...
…  Are you feeling a bit overwhelmed about now?
What Do I Need to Do? How Do I Want Potential Clients to See Me? “ The Ultimate Financial Advisor”   •  They Need to Know ...
3 Participation Levels . . . EXECUTIVE CLUB ASSOCIATE VICE PRESIDENT REGIONAL VICE PRESIDENT The Resource Center  offers A...
TRC Participation Level . . . <ul><li>Entry Level  </li></ul><ul><li>Limited Marketing </li></ul><ul><li>Access to a Regio...
TRC Participation Level . . . ASSOCIATE VICE PRESIDENT <ul><li>Enrolled in AESI CWSS program </li></ul><ul><li>Customized ...
TRC Participation Level . . . REGIONAL VICE PRESIDENT <ul><li>Fully engaged in The Resource Center marketing program </li>...
TRC Participation Level . . . <ul><li>Appoint with TRC today </li></ul><ul><li>Submit first piece of business and we will ...
Quick Start Steps… Step 1:   Appoint with The Resource Center Step 2:   Submit some Business Step 3:   Receive 100 FREE LE...
 
 
Life Insurance Company of the Southwest LSW Solutions for Life
The Future is Now <ul><li>78 million Baby Boomers (1946-1964) heading to retirement </li></ul><ul><li>2007 -- Now more sen...
Critical Illness Impact <ul><li>In 2007 - </li></ul><ul><li>1.2M American will have a heart attack* </li></ul><ul><li>700,...
The End of the Money Trail <ul><li>Only 44 million Americans covered by pension plans </li></ul><ul><li>Number of corporat...
<ul><li>Nearly one in three Americans ages 35-65 will become disabled for more than 90 days. 1   More than 20 million Amer...
** ** * * * Policy loans and withdrawals and the use of living benefits riders reduce the policy’s cash value and death be...
SecurePlus Paragon Prospects <ul><li>Individuals </li></ul><ul><li>Tax-deferred cash accumulation </li></ul><ul><li>Retire...
<ul><li>Business Market </li></ul><ul><li>Buy-Sell Agreements </li></ul><ul><li>Executive Bonus Plans </li></ul><ul><li>No...
<ul><li>Estate Planning </li></ul><ul><li>Management of Estate Taxes </li></ul><ul><li>Settlement Costs </li></ul><ul><li>...
Paragon Introduction <ul><li>Issue ages: 0 - 85 (age nearest) </li></ul><ul><li>Minimum Face: $100,000 </li></ul><ul><li>M...
Paragon Introduction <ul><li>Minimum Premium: $25.00 / month </li></ul><ul><li>Surrender Charge: 10-year declining charge ...
Paragon Introduction <ul><li>Rate Classes: </li></ul><ul><li>Elite Pref. Non-Tobacco (issue ages 20-75) </li></ul><ul><li>...
Paragon Introduction <ul><li>1035 Exchanges: Available with loans of up to 50% of the gross transfer amount </li></ul><ul>...
Paragon Introduction <ul><li>Interest Crediting – 1 yr term, annual reset </li></ul><ul><li>Fixed Interest </li></ul><ul><...
<ul><li>Strategy  Cap  Par  Max Illus Rate </li></ul><ul><li>Point-to-Point Cap Focus  16%  100%  9.7% </li></ul><ul><li>P...
Low Net Cost Loan Example <ul><li>Assumptions: $200,000 death benefit policy over 10 years old with a cash value of $50,00...
Variable Net Cost Loan Example <ul><li>Assumptions: $200,000 death benefit policy over 10 years old with a cash value of $...
Accelerated Benefits Rider <ul><li>ABR 1 – Terminal Illness </li></ul><ul><li>Resulting in death within two years* </li></...
Accelerated Benefits Rider <ul><li>ABR 2 – Chronic Illness </li></ul><ul><li>Unable to perform 2 of 6 ADLs or cognitive im...
Accelerated Benefits Rider  <ul><li>ABR 2 – Chronic Illness ( cont’d ) </li></ul><ul><li>Activities of Daily Living </li><...
Accelerated Benefits Rider <ul><li>ABR 3 – Critical Illness </li></ul><ul><li>Covered Illnesses </li></ul><ul><ul><ul><ul>...
Extension of Benefits Rider <ul><li>Provides LTC benefits after ABR2 or  LTC Rider benefits have been exhausted this will ...
Additional Protection Benefit Rider <ul><li>Provides additional permanent coverage </li></ul><ul><li>Minimum face amount -...
Overloan Protection Rider <ul><li>Prevents a potential tax liability if a policy is in danger of lapse due to loans </li><...
Be Like Mike! SecurePlus Paragon, male 46 preferred, average interest of 9.7% Policy Year Age Annual  Outlay  Guaranteed C...
A Long Term Saver  SecurePlus Paragon, male 30 preferred, average interest of 9.7% Policy Year Age Annual Outlay  Guarante...
A Last Minute Saver  SecurePlus Paragon, male 55 preferred, average interest of 9.7% Policy Year Age Annual  Outlay  Guara...
 
Q & A   (Questions and Answers)
 
 
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Recruitment Webinar No Animation

  1. 3. What We do . . . The Resource Center is an Insurance Marketing Organization devoted to helping you grow and protect your client’s wealth through: <ul><li>Seminar Marketing </li></ul><ul><li>Professional Development </li></ul><ul><li>Professional Coaching </li></ul><ul><li>Product Placement Coaching </li></ul><ul><li>Sales Skills Training </li></ul><ul><li>Qualified Leads </li></ul><ul><li>Helping you take control of your career </li></ul><ul><li>We will help you double & triple your income </li></ul>
  2. 4. Meet Jim Brown… <ul><li>26 years in the field…selling annuities, life insurance and securities products </li></ul><ul><li>Chartered Life Underwriter </li></ul><ul><li>Chartered Financial Consultant </li></ul><ul><li>10 years as a sales manager / business coach / business development </li></ul><ul><li>Vice President of Sales and Recruiting at The Resource Center. </li></ul>What can Brown (Jim Brown) do for you?
  3. 5. For 2008…What is Your GOAL As a Financial Advisor? You know you can get there... Getting to the Next Level! • $200,000 • $300,000 • $400,000 • $ 500,000 and more! … in annual income
  4. 6. Who We Represent . . . The Resource Center represents these and other insurance companies: <ul><li>LSW (Life Insurance Company of the Southwest) </li></ul><ul><li>ING </li></ul><ul><li>Allianz </li></ul><ul><li>Transamerica </li></ul><ul><li>American National </li></ul><ul><li>Washington National </li></ul><ul><li>Investors Insurance </li></ul><ul><li>Old Mutual / F&G </li></ul><ul><li>American Equity </li></ul><ul><li>AIG </li></ul><ul><li>For . . . </li></ul><ul><li>Annuities </li></ul><ul><li>Life Insurance </li></ul><ul><li>Long Term Care Insurance </li></ul>To Protect and Grow Your Client’s Wealth
  5. 7. Recommended Products . . . We can recommend any product. So why LSW ? They have just released new products and riders! National Life Group $19.2 Billion Assets $55 Billion Insurance In Force Rated A+ (S&P), A (Best’s) Career and Independent Distribution Relationship-based Companies LSW is part of:
  6. 8. CAPTURE THE WINNINGS! DOW JONES INDUSTRIAL AVG - 1940-1960
  7. 9. CAPTURE THE WINNINGS?!? DOW JONES INDUSTRIAL AVG - 1960-1980
  8. 10. CAPTURE THE WINNINGS! DOW JONES INDUSTRIAL AVG – 1980-2000
  9. 11. YESTERDAY & TODAY Dow Jones 1960-1980 Dow Jones 1995-Present
  10. 12. <ul><li>Proven leader in all aspects of the fixed and indexed annuity marketplace! </li></ul><ul><li>Since 1996 – One of the first companies in the industry to develop an interest indexed annuity; First in flexible premium design </li></ul><ul><li>Financial stability & strength </li></ul><ul><li>Integrity in design and promotes outstanding marketing practices </li></ul><ul><li>Quality Service </li></ul><ul><li>Published Renewal Rate History </li></ul>Why LSW?
  11. 13. Guaranteed Lifetime Income Rider <ul><li>Guarantees a steady stream of income for the rest of your life </li></ul><ul><li>Leaves you in control of your money, so you have access to it when you need it the most </li></ul><ul><li>Protects your retirement savings and transfers as much of it as possible at death </li></ul>
  12. 14. <ul><li>Optional living benefit; issue age 40 and older </li></ul><ul><li>Rider allows you to take an annual Guaranteed Withdrawal Payment for life </li></ul><ul><li>Can elect the rider’s Guaranteed Withdrawal Payment at attained age 60 or older and after the first policy year </li></ul><ul><li>Enhanced Benefit also is available at attained age 60 or older and the policy has been in-force for five years </li></ul>How Does the Rider Work
  13. 15. <ul><li>To qualify: </li></ul><ul><li>Only available on life of the Annuitant </li></ul><ul><li>Must be unable to perform, without substantial assistance from another individual, at least 2 of the 6 ADLs due to a permanent loss of functional capacity </li></ul><ul><li>Don’t have to be in a long-term care facility to qualify </li></ul><ul><li>Subject to verification by independent health care professional </li></ul><ul><li>If the Annuitant qualifies before electing payments, the Guaranteed Withdrawal Payment will be significantly higher </li></ul>The Enhanced Benefit
  14. 16. Rider Charge Charge is .40% of Policy Accumulation Value for first 10 Policy years beginning on the 1 st Policy Anniversary Charge is .50% of Policy Accumulation Value for Policy years 11+ Charge is frozen at .40% if election of Guaranteed Withdrawal Payment occurs before the 11 th Policy Year
  15. 17. <ul><li>LSW uses a formula to determine your payment from your annuity… </li></ul><ul><li>Income “Calculation” Base </li></ul><ul><li>X Guaranteed Withdrawal Percentage </li></ul><ul><li>= Guaranteed Withdrawal Payment </li></ul>How Does the Rider Work?
  16. 18. Step 1: Income “Calculation” Base <ul><li>Before Election : </li></ul><ul><ul><li>Increases at the annual Roll-Up Rate of </li></ul></ul><ul><ul><li>guaranteed up to 20 years! </li></ul></ul><ul><ul><li>Income “Calculation” Base also will increase by the amount of any immediate interest credit and/or Bonus Accumulation Value </li></ul></ul>
  17. 19. Step 1: Before Election - Automatic Reset of Income Calculation Base: 5 th , 10 th , 15 th , 20 th , election Years of Income Deferral Income “Calculation” Base Hypothetical Policy Accumulation Value* 1 107,000 $105,000 5 140,225 $140,500 Reset @ 140,500 140,500 $140,500
  18. 20. Guaranteed Withdrawal Payment for Life Guaranteed Withdrawal Payment is $10,819 a year for life $ 100,000 LSW Indexed Annuity & GLIR Age 55 Age 65
  19. 21. Enhanced Benefit for Life Enhanced Benefit Withdrawal Payment is $16,720 a year for life $ 100,000 LSW Indexed Annuity & GLIR Age 55 Age 65 2 of 6 ADLs
  20. 22. Step 2: Guaranteed Withdrawal Percentage Table Annuitant ’ s Attained Age at Time of Election Single Life Income Percentage Enhanced Benefit Joint Life Income Percentage 60 5.00% 8.00% 4.50% 61 5.10% 8.10% 4.60% 62 5.20% 8.20% 4.70% 63 5.30% 8.30% 4.80% 64 5.40% 8.40% 4.90% 65 5.50% 8.50% 5.00% 66 5.60% 8.60% 5.10% 67 5.70% 8.70% 5.20% 68 5.80% 8.80% 5.30% 69 5.90% 8.90% 5.40% 70 6.00% 9.00% 5.50% 71 6.10% 9.10% 5.60% 72 6.20% 9.20% 5.70% 73 6.30% 9.30% 5.80% 74 6.40% 9.40% 5.90% 75 6.50% 9.50% 6.00% 76 6.60% 9.60% 6.10% 77 6.70% 9.70% 6.20% 78 6.80% 9.80% 6.30% 79 6.90% 9.90% 6.40% 80 7.00% 10.00% 6.50% 81 7.10% 10.10% 6.60% 82 7.20% 10.20% 6.70% 83 7.30% 10.30% 6.80% 84 7.40% 10.40% 6.90% 85 7.50% 10.50% 7.00% 86 7.60% 10.60% 7.10% 87 7.70% 10.70% 7.20% 88 7.80% 10.80% 7.30% 89 7.90% 10.90% 7.40% 90 and above 8.00% 11.00% 7.50%
  21. 23. Innovations – LSW’s Guaranteed Lifetime Income Rider <ul><li>7 % annual Roll-Up Rate on the Income “Calculation” Base; guaranteed for up to 20 years </li></ul><ul><li>Enhanced Benefit when client cannot perform 2 out of six ADLs (3 percent additional withdrawal percentage added to guaranteed withdrawal percentage) </li></ul><ul><li>Automatic reset of the Income Base takes the higher of the Accumulation Value versus the Income Base </li></ul><ul><li>Guaranteed Withdrawal Percentage – 5% at age 60, growing by 0.10% per year until age 90 (8%) </li></ul>
  22. 24. Innovations – LSW’s Guaranteed Lifetime Income Rider <ul><li>Guaranteed Withdrawal Payments may be increased – Step-up calculation using attained age percentages </li></ul><ul><li>Joint Withdrawal Option - Only a .50% reduction to Single life percentages </li></ul><ul><li>Rider is Commissionable - Commission Paid on Single Premium </li></ul><ul><li>Rider charges are fixed at issue (doesn't change on reset of Income Base) </li></ul><ul><li>Guaranteed Withdrawal Payments made from Declared Account = Interest to date of withdrawal </li></ul><ul><li>Guaranteed Withdrawal Payments may be paid monthly, quarterly, semi-annually, and annually </li></ul><ul><li>  </li></ul>
  23. 26. Issue #6 Healthcare Crisis <ul><li>Americans 45 and up consider healthcare the single most critical national issue and expense </li></ul><ul><li>69% of people age 65 and older will need some type of long-term care: 37% will enter a nursing home </li></ul><ul><li>Current long-term care costs range between $150 to $250 per day…that’s $55,000 to $90,000 per year </li></ul><ul><li>2010 – Annual Healthcare expenditures will be $8,704 per person </li></ul>
  24. 27. Issue #6 Healthcare Crisis <ul><li>How are you accumulating enough assets to pay for future healthcare expenses for you and your family? </li></ul><ul><li>Do you have the right medical insurance coverage? </li></ul><ul><li>An LSW Indexed Annuity with the SELI option may allow you to retain your wealth and protect you accumulation value from creditors and in some cases not force you to spend-down your assets to qualify for Medicaid </li></ul>
  25. 28. Issue #7 Investor Blunders <ul><li>Greed…In an effort to hit a homerun, we take risks. Risks can reap big rewards, but usually leads to low overall returns. </li></ul><ul><li>From 1984 to 2003 S&P Index posted annual returns of nearly 13%. </li></ul><ul><li>During same period, average stock market investor only earned 3.51%. </li></ul><ul><li>WHY? FEAR…Buy and Sell at the wrong time. </li></ul>
  26. 29. Issue #7 Investor Blunders <ul><li>March 10, 2000, NASDAQ reached 5,132 </li></ul><ul><li>Oct. 10, 2002, fell to 1,108 </li></ul><ul><li>Hypothetical $100,000 invested would have been worth $21,590, a reduction of 78%. Requires 463% growth to break even </li></ul><ul><li>Assuming 8% growth, it would take nearly 20 years to recoup the money </li></ul>
  27. 30. Issue #7 Investor Blunders <ul><li>Is your retirement money protected from market risk? </li></ul><ul><li>What is your risk tolerance and timeline for retirement? </li></ul><ul><li>An LSW Indexed Annuity is an excellent vehicle for those people who do not want to risk their retirement savings and not a long-time to make up loss </li></ul>
  28. 31. <ul><li>Male Age 66 </li></ul><ul><li>Retired from GM 1 Year Ago </li></ul><ul><li>Had $500,000 Invested in Money Management Program with a Firm </li></ul><ul><li>Portfolio down $100,000 </li></ul>A RECENT CLIENT
  29. 32. t PROTECT YOUR PORTFOLIO Fully Invested in Market a la S&P $400,000 Invested in Mutual Fund $200,000 in Mutual Fund $200,000 Indexed IF the S&P Goes Down 50% Diversified to Less Risk $200k Mutual Fund = $100k $200k Indexed = $200k Total Holdings = $300k $400k Mutual Fund = $200k Total Holdings = $200k IF the S&P Goes Up 33% $200 Mutual Fund = $267k $200 Indexed = $252k Total Holdings = $519k $400k Mutual Fund = $533k Total Holdings = $533k Difference of $14k – But Without The Risk
  30. 35. What We do . . . The Resource Center is an Insurance Marketing Organization devoted to helping you grow and protect your client’s wealth <ul><li>Seminar Marketing </li></ul><ul><li>Professional Development </li></ul><ul><li>Professional Coaching </li></ul><ul><li>Product Placement Coaching </li></ul><ul><li>Sales Skills Training </li></ul><ul><li>Qualified Leads </li></ul><ul><li>Helping you take control of your career </li></ul><ul><li>We will help you double & triple your income </li></ul>
  31. 36. For 2008…What is Your GOAL As a Financial Advisor? You feel you can get there... Getting to the Next Level! • $200,000 • $300,000 • $400,000 • $ 500,000 and more! … in annual income
  32. 37. Why Haven’t You Been Reaching Your Goals? You’re doing it all wrong! If you really look at the marketing materials sent to you . . .the answer is clear
  33. 38. Everybody Else Appears to Be Successful . . . <ul><li>E-Mail </li></ul><ul><li>Faxes </li></ul><ul><li>• Postcards & Mail </li></ul><ul><li>LATEST </li></ul><ul><li>GREATEST </li></ul><ul><li>STUPENDOUS </li></ul>We want to believe . . . We’ll try anything to get us where we feel we should be . . . at the NEXT LEVEL ! Every day you receive . . . But YOU?
  34. 39. My Future is Bright! . . . There’s Nothing to It… But to DO IT! Life is Good!
  35. 40. Just a Few Situations?… Getting Leads Scheduling First Appointments First Appointments No Shows No House at that Address Person Scheduled Died 2 Years Ago r Great First Appointment! I made 2 New Friends Today! My Spouse and I Are Going to Dinner No Money… Already Lost in Market I’m Tired! Client Backed Out!
  36. 41. Just a Few Situations?… CAR REPAIRS SPOUSE KIDS MAIL BILLS MARKETING CREDIT CARDS MORTGAGE “ You’ve Got to Get a Real Job!” Some Financial Planner I Am . . . If My Clients Actually Knew Our Finances IRS Problems
  37. 42. … Are you feeling a bit overwhelmed about now?
  38. 43. What Do I Need to Do? How Do I Want Potential Clients to See Me? “ The Ultimate Financial Advisor” • They Need to Know I Care • They Need to Know I Know • They Need to Know I’m Going to Be Around You Need to Position Yourself for Success! • “ What Do I Do?” Let Us Show You What to Do! = TRUST!
  39. 44. 3 Participation Levels . . . EXECUTIVE CLUB ASSOCIATE VICE PRESIDENT REGIONAL VICE PRESIDENT The Resource Center offers Advisors three levels of professional engagement and support
  40. 45. TRC Participation Level . . . <ul><li>Entry Level </li></ul><ul><li>Limited Marketing </li></ul><ul><li>Access to a Regional Vice President </li></ul><ul><li>Regional Sales Rallies </li></ul><ul><li>Around $1,000,000 in annual Fixed Annuity production </li></ul>EXECUTIVE CLUB
  41. 46. TRC Participation Level . . . ASSOCIATE VICE PRESIDENT <ul><li>Enrolled in AESI CWSS program </li></ul><ul><li>Customized Marketing Program </li></ul><ul><li>$2-4,000,000 in annual Fixed Annuity production </li></ul><ul><li>$2-4,000,000 in Variable Annuity and Mutual Fund business </li></ul><ul><li>Regional Sales Rallies </li></ul><ul><li>Website development—Full community Promotion </li></ul>
  42. 47. TRC Participation Level . . . REGIONAL VICE PRESIDENT <ul><li>Fully engaged in The Resource Center marketing program </li></ul><ul><li>Enrolled in AESI CWSS program </li></ul><ul><li>30 Programs per year: (30 Buying Units per program = 20 appointments = 7 sales X 30 = 210 sales X $50,000 in premium = $10,000,000) </li></ul><ul><li>$10,000,000 in Fixed Annuity production </li></ul><ul><li>$10,000,000 in Variable Annuity business </li></ul><ul><li>$10,000,000 in Mutual Fund business </li></ul><ul><li>3-6 Sub-Producers </li></ul><ul><li>2-4 Staff Employees </li></ul><ul><li>Regional Sales Rallies (Exec. Club, CPAs, PC, Financial Planners) </li></ul>
  43. 48. TRC Participation Level . . . <ul><li>Appoint with TRC today </li></ul><ul><li>Submit first piece of business and we will give you 100 FREE leads. A qualified lead is: </li></ul><ul><ul><li>Over age fifty </li></ul></ul><ul><ul><li>Homeowner </li></ul></ul><ul><ul><li>$100,000 household income </li></ul></ul><ul><ul><li>$250,000+ investable wealth </li></ul></ul><ul><ul><li>TRC will send out Direct mail postcards </li></ul></ul><ul><ul><ul><ul><ul><li>Phone scripts </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Door knock appointment script </li></ul></ul></ul></ul></ul>EXECUTIVE CLUB QUICK START Marketing Plan
  44. 49. Quick Start Steps… Step 1: Appoint with The Resource Center Step 2: Submit some Business Step 3: Receive 100 FREE LEADS Step 4: 10 times = 1000 LEADS Step 5: YOUR MARKETING AREA 1000 leads yields at least 60 sales at average $60,000 ea. in premium = $3,600,000 @ 8% commission = $280,000 income to you.
  45. 52. Life Insurance Company of the Southwest LSW Solutions for Life
  46. 53. The Future is Now <ul><li>78 million Baby Boomers (1946-1964) heading to retirement </li></ul><ul><li>2007 -- Now more seniors than teenagers in America </li></ul><ul><li>Fastest growing population segment is 100 + </li></ul><ul><li>Estimated 2010 to 2030 … 65 and older population is expected to spike 75% to more than 69 million </li></ul><ul><li>If married and live to age 65 … 47% chance that one of you will live to age 95 </li></ul>
  47. 54. Critical Illness Impact <ul><li>In 2007 - </li></ul><ul><li>1.2M American will have a heart attack* </li></ul><ul><li>700,000 Americans will have a stroke* </li></ul><ul><li>1.4M will be diagnosed with cancer** </li></ul><ul><li>How many will be forced to declare BANKRUPTCY because of a medical hardship? </li></ul>*source American Heart Association **source American Cancer Society
  48. 55. The End of the Money Trail <ul><li>Only 44 million Americans covered by pension plans </li></ul><ul><li>Number of corporate pension plans have dropped from 114,000 in 1985 to fewer than 28,000 in 2006 </li></ul><ul><li>Many plans are seriously under funded and near default </li></ul>
  49. 56. <ul><li>Nearly one in three Americans ages 35-65 will become disabled for more than 90 days. 1 More than 20 million Americans suffer disabling injuries each year. 2 </li></ul>Consumer Financial Concerns <ul><li>Almost half of Americans have saved less than $50,000 (46%), and 15% say they have saved nothing towards retirement 3 </li></ul><ul><li>Over half of women and nearly one-third of men 65 and older will stay in a nursing home sometime during their lifetime 4 </li></ul><ul><li>48 Million U.S. households are underinsured 5 </li></ul>1 2005 Field Guide to Estate Planning, Business Planning & Employee Benefits, by Donald Cady 2 National Safety Council, Injury Facts, 2004 edition 3 2002 Retirement Confidence Survey – American Savings Education Council 4 The Risk of Nursing Home Use Later in Life, Medical Care 28(10): 952-62 5 AAA Business Wire - September 13, 2006 Disability Retirement Accelerated Living Benefits Life Insurance
  50. 57. ** ** * * * Policy loans and withdrawals and the use of living benefits riders reduce the policy’s cash 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.
  51. 58. SecurePlus Paragon Prospects <ul><li>Individuals </li></ul><ul><li>Tax-deferred cash accumulation </li></ul><ul><li>Retirement Income </li></ul><ul><li>Funding Education Costs </li></ul><ul><li>Acceleration of the death benefit in cases of terminal, chronic or critical illness through the ABR riders </li></ul><ul><li>Higher-End Death Protection Sales </li></ul><ul><li>1035 Exchanges (VUL to IUL) </li></ul><ul><li>Long-term Care Expense </li></ul>
  52. 59. <ul><li>Business Market </li></ul><ul><li>Buy-Sell Agreements </li></ul><ul><li>Executive Bonus Plans </li></ul><ul><li>Non-Qualified Deferred Compensation </li></ul><ul><li>Key Employee Protection </li></ul><ul><li>Premium Financing </li></ul>SecurePlus Paragon Prospects
  53. 60. <ul><li>Estate Planning </li></ul><ul><li>Management of Estate Taxes </li></ul><ul><li>Settlement Costs </li></ul><ul><li>Probate Expense or Estate Administration Costs </li></ul><ul><li>Liquidity to Protect Assets from Forced Sale </li></ul>SecurePlus Paragon Prospects
  54. 61. Paragon Introduction <ul><li>Issue ages: 0 - 85 (age nearest) </li></ul><ul><li>Minimum Face: $100,000 </li></ul><ul><li>Minimum APB </li></ul><ul><li>Rider: $25,000 </li></ul><ul><li>Maximum APB: Nine times base face </li></ul><ul><li>Maximum Face: Talk to us </li></ul><ul><li>Premium Bands: $250,000 & $1,000,000 </li></ul><ul><li>Approved in all states EXCEPT: MT, NJ, NY, PA, HI, MA, MS </li></ul>*Additional Protection Benefit Rider. Riders are optional, may require an additional premium and may not be available in all states.
  55. 62. Paragon Introduction <ul><li>Minimum Premium: $25.00 / month </li></ul><ul><li>Surrender Charge: 10-year declining charge </li></ul><ul><li>Policy Loans: Variable and fixed available after the first policy year </li></ul><ul><li>Withdrawals: Available after the first policy year </li></ul><ul><li>Minimum Interest: 2.5%, available at death or full surrender </li></ul>
  56. 63. Paragon Introduction <ul><li>Rate Classes: </li></ul><ul><li>Elite Pref. Non-Tobacco (issue ages 20-75) </li></ul><ul><li>Preferred Non-Tobacco (issue ages 20-85) </li></ul><ul><li>Standard Non-Tobacco (issue ages 0-85) </li></ul><ul><li>Preferred Tobacco (issue ages 20-75) </li></ul><ul><li>Standard Tobacco (issue ages 20-85) </li></ul><ul><li>Standard Non-Tobacco for insureds ages 0-19 </li></ul>
  57. 64. Paragon Introduction <ul><li>1035 Exchanges: Available with loans of up to 50% of the gross transfer amount </li></ul><ul><li>Policy Fee: $5 per month </li></ul><ul><li>Premium Load: 6% of premium </li></ul><ul><li>Expense Charges: Based on age, sex and rate class </li></ul><ul><li>Mortality Basis: 2001 CSO </li></ul>
  58. 65. Paragon Introduction <ul><li>Interest Crediting – 1 yr term, annual reset </li></ul><ul><li>Fixed Interest </li></ul><ul><li>Point-to-Point – Cap focus </li></ul><ul><li>Point-to-Point – Participation Rate focus </li></ul><ul><li>Point-to-Point – No Cap </li></ul><ul><li>Point-to-Daily Average </li></ul>
  59. 66. <ul><li>Strategy Cap Par Max Illus Rate </li></ul><ul><li>Point-to-Point Cap Focus 16% 100% 9.7% </li></ul><ul><li>Point-to-Point PR Focus 11.5% 140% 8.4% </li></ul><ul><li>Point-to-Point No Cap None 75% 9.9% </li></ul><ul><li>Point-to-Average No Cap None 140% 9.3%  </li></ul><ul><li>  </li></ul>Illustrated Rates for Paragon
  60. 67. Low Net Cost Loan Example <ul><li>Assumptions: $200,000 death benefit policy over 10 years old with a cash value of $50,000 earning average indexed interest of 7.5% and a $10,000 loan is requested with a 6% variable loan rate. </li></ul>Cash value: $40,000 @ 7.5% In 10 additional years cash value = $82,441 Collateral account: $10,000 @ 6% In 10 additional years collateral account = $17,908 Loan debt: $10,000 @ 6% In 10 additional years loan debt = $17,908 Cash value available for additional loan or surrender is $82,441
  61. 68. Variable Net Cost Loan Example <ul><li>Assumptions: $200,000 death benefit policy over 10 years old with a cash value of $50,000 earning average indexed interest of 7.5% and a $10,000 loan is requested with a 6% variable loan rate. </li></ul>Cash value: $50,000 @ 7.5% In 10 additional years cash value = $103,051 Loan debt: $10,000 @ 6% In 10 additional years loan debt = $17,908 Cash value available for additional loan or surrender is $85,143
  62. 69. Accelerated Benefits Rider <ul><li>ABR 1 – Terminal Illness </li></ul><ul><li>Resulting in death within two years* </li></ul><ul><li>Lump-sum distribution (discounted from death benefit) </li></ul><ul><li>No additional premium cost </li></ul><ul><li>85% to 90% of the face value </li></ul>Form series 8052(0798) *One year in PA, CT or VT. Please see the ABR disclosure forms for more information.
  63. 70. Accelerated Benefits Rider <ul><li>ABR 2 – Chronic Illness </li></ul><ul><li>Unable to perform 2 of 6 ADLs or cognitive impairment; </li></ul><ul><li>Max. monthly benefit is 2% of the face value of the policy, discounted by age, face amount, cash value accumulation and other factors – approximately 80%. Payments will last approximately 50 months. </li></ul>Form series 8095(0399) *Please see the ABR disclosure forms for more information.
  64. 71. Accelerated Benefits Rider <ul><li>ABR 2 – Chronic Illness ( cont’d ) </li></ul><ul><li>Activities of Daily Living </li></ul><ul><ul><ul><li>Bathing </li></ul></ul></ul><ul><ul><ul><li>Continence </li></ul></ul></ul><ul><ul><ul><li>Dressing </li></ul></ul></ul><ul><ul><ul><li>Eating </li></ul></ul></ul><ul><ul><ul><li>Toileting </li></ul></ul></ul><ul><ul><ul><li>Transferring </li></ul></ul></ul><ul><li>Cognitive Impairment </li></ul><ul><ul><li>Short-term or long-term memory impairment </li></ul></ul><ul><ul><li>Loss of orientation to people, places or time </li></ul></ul><ul><ul><li>Deductive or abstract reasoning impairment </li></ul></ul>Form series 8095(0399)
  65. 72. Accelerated Benefits Rider <ul><li>ABR 3 – Critical Illness </li></ul><ul><li>Covered Illnesses </li></ul><ul><ul><ul><ul><li>Heart Attack </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Stroke </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cancer* </li></ul></ul></ul></ul><ul><ul><ul><ul><li>End stage renal failure* </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Major organ transplant </li></ul></ul></ul></ul><ul><ul><ul><ul><li>ALS (Lou Gehrig’s disease)* </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Blindness </li></ul></ul></ul></ul>Form series 8165(0703) *Upon diagnosis. Please see the ABR disclosure forms for more information.
  66. 73. Extension of Benefits Rider <ul><li>Provides LTC benefits after ABR2 or LTC Rider benefits have been exhausted this will keep paying you… </li></ul><ul><li>Max. monthly benefit of 1% of initial face amount for nursing home or home health care or .5% for adult day care </li></ul><ul><li>Funds must be used for long-term care costs </li></ul><ul><li>Benefits are paid for life as long as insured remains eligible </li></ul><ul><li>Issue ages 0 - 70 </li></ul>Form series 8097(0899)
  67. 74. Additional Protection Benefit Rider <ul><li>Provides additional permanent coverage </li></ul><ul><li>Minimum face amount - $25,000 </li></ul><ul><li>Maximum blend – 9 times base </li></ul><ul><li>Non-commissionable </li></ul><ul><li>Maximum ABR acceleration – 50% of APB face amount at time of initial acceleration </li></ul>Form series 8404(0606)
  68. 75. Overloan Protection Rider <ul><li>Prevents a potential tax liability if a policy is in danger of lapse due to loans </li></ul><ul><li>Creates a “paid up” policy </li></ul><ul><li>To qualify: </li></ul><ul><ul><li>Age 75 or greater </li></ul></ul><ul><ul><li>Policy must be in force at least 15 years </li></ul></ul><ul><ul><li>Loans at least equal to 95% of policy’s accumulated value </li></ul></ul><ul><ul><li>Policy must be in DEFRA corridor </li></ul></ul><ul><ul><li>Not available on CVAT </li></ul></ul><ul><li>No additional cost until rider is exercised </li></ul><ul><li>Policyholder will be notified when eligibility requirements are met </li></ul>Form series 8315(0206)
  69. 76. Be Like Mike! SecurePlus Paragon, male 46 preferred, average interest of 9.7% Policy Year Age Annual Outlay Guaranteed Cash Value Guaranteed Death Benefit Current Cash Value Current Death Benefit Annual Income 1 46 $18,000 $0 $976,526 $0 $976,526 $0 2 47 $18,000 $0 $976,526 $0 $976,526 $0 13 58 $18,000 $156,835 $976,526 $282,171 $976,526 $0 14 59 $18,000 $167,078 $976,526 $322,740 $976,526 $0 15 60 $0 $113,060 $929,844 $302,561 $929,844 $43,957 16 61 $0 $55,134 $880,267 $281,856 $880,267 $43,957 45 90 $0 $0 $0 $719,443 $960,759 $43,957 50 95 $0 $0 $0 $1,733,479 $1,808,936 $43,957 51 96 $0 $0 $0 $2,042,484 $2,125,101 $43,957 52 97 $0 $0 $0 $2,393,305 $2,483,754 $43,957 53 98 $0 $0 $0 $2,790,797 $2,889,811 $43,957 54 99 $0 $0 $0 $3,286,655 $3,395,036 $0 55 100 $0 $0 $0 $3,843,804 $3,962,438 $0 Total Premium Paid $252,000 Total Income From Loans $1,714,323
  70. 77. A Long Term Saver SecurePlus Paragon, male 30 preferred, average interest of 9.7% Policy Year Age Annual Outlay Guaranteed Cash Value Guaranteed Death Benefit Current Cash Value Current Death Benefit Annual Income 1 30 $7,200 $0 $785,317 $0 $785,317 $0 2 31 $7,200 $0 $785,317 $0 $785,317 $0 30 59 $7,200 $145,063 $785,317 $790,358 $1,059,080 $0 31 60 $0 $140,689 $785,317 $865,472 $1,125,113 $0 32 61 $0 $0 $0 $811,497 $1,076,846 $128,227 56 85 $0 $0 $0 $613,315 $1,028,238 $128,227 57 86 $0 $0 $0 $769,030 $1,222,371 $128,227 58 87 $0 $0 $0 $953,161 $1,448,242 $128,227 59 88 $0 $0 $0 $1,168,365 $1,708,755 $128,227 60 89 $0 $0 $0 $1,417,729 $2,007,278 $128,227 61 90 $0 $0 $0 $1,704,482 $2,347,335 $128,227 70 99 $0 $0 $0 $8,131,155 $8,419,889 $128,227 71 100 $0 $0 $0 $9,576,809 $9,892,861 $0 Total Premium paid $216,000 Total Income From Loans $5,000,853
  71. 78. A Last Minute Saver SecurePlus Paragon, male 55 preferred, average interest of 9.7% Policy Year Age Annual Outlay Guaranteed Cash Value Guaranteed Death Benefit Current Cash Value Current Death Benefit Annual Income 1 55 $50,000 $16,811 $801,323 $19,593 $801,323 $0 2 56 $50,000 $51,807 $801,323 $60,532 $801,323 $0 3 57 $50,000 $97,433 $801,323 $115,629 $801,323 $0 4 58 $50,000 $143,840 $801,323 $175,440 $801,323 $0 5 59 $50,000 $191,095 $801,323 $240,483 $801,323 $0 6 60 $0 $157,668 $768,006 $226,345 $768,006 $31,372 7 61 $0 $121,726 $732,623 $211,339 $732,623 $31,372 31 85 $0 $0 $0 $192,987 $304,143 $31,372 41 95 $0 $0 $0 $1,236,316 $1,290,160 $31,372 42 96 $0 $0 $0 $1,456,752 $1,515,706 $31,372 43 97 $0 $0 $0 $1,707,023 $1,771,564 $31,372 44 98 $0 $0 $0 $1,990,592 $2,061,245 $31,372 45 99 $0 $0 $0 $2,344,346 $2,421,684 $0 46 100 $0 $0 $0 $2,741,829 $2,826,484 $0 Total Premium Paid $250,000 Total Income From Loans $1,223,508
  72. 80. Q & A (Questions and Answers)

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