Presentation on theme: "Adding Value… Always Do an FNA! Adding Value… Budget Sheet."— Presentation transcript:
Adding Value… Always Do an FNA!
Adding Value… Budget Sheet
Adding Value… Do a Financial Recomendations Sheet
James M. Martinson National Sales Director Primerica Financial Services Insurance Marketing, Inc. Insurance offered through: Primerica Life Insurance Company Executive Offices: Duluth, Georgia Representing PFS Companies Securities offered through: PFS Investments Inc. Member NASD and SIPC Home Office: Duluth, Georgia 30199-0001 (404) 381-1000 1.Adequately Insure Your Family’s Financial Future. Replace your income. – Jim’s Recommendations: You are currently on Track! 2.Help to Fund your children’s College Education - $652 per month. This will provide for an average 4 year college for Nick, Heather & Grant. 3.Provide for Legal Protection - $35 to start and $25 per month. Unlimited access to a respected law firm to protect your legal rights, property & person. Make sure you have a WILL in place. 4.Consider Long Term Care to protect your net worth. – See FNA. 5.Get Financially Independent. Emergency Fund - Liquid Money Market: Goal: $10,000 in money market account. Wealth Building Fund-(401K/ROTH IRA/TSA/SEP/Def comp/VA) High Growth Asset Allocation: Bottom Line: $967 more per month. That will help you to accumulate the $3 Million you need to retire at age 55. Start ROTH IRA’s - (Tax free money) John $330 monthly – 12% / 30 yrs = $1.1 million! Mary $330 monthly – 12% / 30 yrs = $1.1 million! Auto & Home Insurance Quote: 877-855-8111 Financial Recommendations for: The Smith Family Financial Independence, A Step by Step Process Please refer to Important Information Notes in Your FNA for further explanation. 1025 S. Moorland Rd Site 600 Brookfield, WI 53005 Bus. 262-789-7767 Immediate Actions: Life Coverage to Fully Protect Family._X_ $330 / $330 Roth IRA’s___ / College Education $652 monthly___ Long term care protection___ / $25 Consider Legal Protection___ Auto & Home Insurance Quote___ Earn part-time income with Primerica. Immediate Actions: Life Coverage to Fully Protect Family._X_ $330 / $330 Roth IRA’s___ / College Education $652 monthly___ Long term care protection___ / $25 Consider Legal Protection___ Auto & Home Insurance Quote___ Earn part-time income with Primerica. AlonzoHierarchycd/PPT/1.7salesprocess/financialrecommendsample
Killing Cash Value
Insurance Analysis - Old policy Pros- Mike Current coverage - $250K $33.91 per month. Guaranteed for 10 years level term policy Kharon Current coverage - $100K $11.46 per month. $10 per month less money Guaranteed for 10 years level term policy Insurance Analysis - Primerica policy Pros- Current coverage - $250K and $150K (50K more on Kharon’s policy) Guaranteed re-insurability. In 10 years, only $107.5 per month to sustain. In 20 years, only $327 per month to sustain. Terminal illness rider at no extra cost. Increasing benefit rider. Personal financial analyst to assist you to your financial goals. Complimentary FNA. Guaranteed premiums. Largest company in the world. (Secure claims paying ability) Guaranteed coverage to age 95. Total cost for $250K + $150K = for 10 years = $54 Total cost for $250K + $150K = for 15 years = $68 Total cost for $250K + $150K = for 20 years = $84 Representing PFS Companies Please refer to Important Information Notes (page17,18 in Your FNA) for further explanation. Primerica Financial Services Insurance Marketing, Inc. Insurance offered through: Primerica Life Insurance Company A E lo x n e zo c hi u er t a i rc v hy e cd O /PP f T f /1 i. c 8l e ife s in : su D ran u ce l p u ro t c h es, s/f G ina e nc o ia r lr g ec i o a mmendwlifeinssample Securities offered through: PFS Investments Inc. Member NASD and SIPC Home Office: Duluth, Georgia 30199-0001 (404) 381-1000 Cons- Old policy No guaranteed re-insurability. No increasing benefit rider. In 10 years, price jumps to $331 per month to sustain. If you do qualify and keep this policy for 11 years: The first year of renewal $3,975. In 20 years, price jumps to $816per month to sustain. That’s an extra $2,691! (Comparing with Primerica Life). If you do qualify and keep this policy for 21 years: The first year of renewal $8,900 That’s an extra $4,976! (Comparing with Primerica Life). Cons- Primerica Life Extra $9 per month. (10 yr) / (Over 10 years = $1,080) Extra $23 per month. (15 yr) / (Over 15 years = $4,140) Extra $39 per month. (20 yr) / (Over 20 years = $9,360)
The Rule of 72 The Power of Compound Interest This simple calculation gives you the approximate number of years it will take to double your investment. 72 ÷ 3% = 24 YEARS 24 YRS = $20,000 48 YRS = $40,000 Start with a $10,000 Initial Investment Start with a $10,000 Initial Investment Mutual Fund 72 ÷ 12% = 6 YEARS 6 YRS= $20,000 12 YRS = $40,000 18 YRS = $80,000 24 YRS = $160,000 30 YRS = $320,000 36 YRS = $640,000 42 YRS = $1.2 Million!
PLAN A PP/US/33633/7.06/V4.0/01PFS324-30 1.Average0-5% Intereston Your Savings. 2.6-8% Fee to WithdrawYourMoney. 3.6 Months to Defer Your Money. 4. They Keep All Your 1st Year Deposits. 5.IfYouDie, They Keep All Your Savings.
PLAN B PP/US/33633/7.06/V4.0/01PFS324-30 1.Average 7-25% Interest on Your $$$. 2.No FeetoWithdrawYourYourMoney. 3.Receive Your Money within 7 Days by Law. 4. 1st year Deposits are Credited Immediately. 5.IfYou Die, Your Family Gets Your Savings.
3 Different Types Of Life Insurance A RTA RT 100,000 $155 $150 $175 $200 $250 $ UL VUL
3 Different Types Of Life Insurance DTDT $150 100,000 +10,000 110,000 90K 80K 70K 25K $ W L x 100,000
3 Different Types Of Life Insurance L TL T $50100,000 30 Years
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1.Mortality and Expense Risk Charge -.00002455 2.Collection Fee - $3.00 3.Monthly Policy Charge - $7.50 4.Surrender Charge - $17.64 per $1,000 or Specified Amount. 17.64 x 250K policy = $4,410 5.Loan Interest Rate - 5.2% 6.Loss of Savings if you die. 7.Reduction of Death Benefit if there is any outstanding loans. 8.Assets of Sub-account is the property of the company. 9.They can defer payment of a loan to you for up to 6 months. 10.One withdrawal per year. 11.Surrender charge for 15 years. 12.Pro rata decrease charge for 15 years. 13.Processing fee of 2% to withdraw money.
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Why "Return of Premium" Term Life Insurance Is No Free Lunch An insurance offer that's too good to be true By Marina Krakovsky on September 21, 2010 Ever been offered a "Return of Premium" rider? Since the 1990s, life insurance companies have been offering these special riders on top of term life insurance. Often called ROP (perhaps as opposed to RIP), the riders work in a seemingly straightforward way. If you die before the term of the policy (normally 20 to 30 years), you receive a death benefit (or at least your beneficiaries do). That part is traditional. But because of the rider, if you live past the term of the policy, instead of losing the premiums you've already paid the insurance company pays you back every penny you paid in. There are a couple of gotchas. For starters, the premium is usually higher than that of the standard term life insurance, which means the rider isn't free. Now, you might not care about that since the idea is that you can recover everything at the end. The problem is that you're not getting everything at the end—you're losing any interest you would have earned on the money had you invested it yourself. And that includes not only interest on the rider-related premiums, but also interest on the basic term policy—which without the attractive-sounding rider you might not have bought in the first place. The insurance company, meanwhile, holds on to the money you're putting in over the course of 20 to 30 years and pockets the investment gains, paying out a portion to those lucky customers who outlived their policies. This loss of interest is the hidden cost of such a rider. Not only that, but if you do indeed die during the term of the policy, your net death benefit (that is, the insurance payout minus the premiums you've paid) would be smaller than under a traditional term life insurance policy. If you run the numbers, you'll see that on average, you're better off investing the money yourself. This Investopedia article shows the math. So why does the ROP rider seem appealing to insurance buyers? We can think of several reasons:. *The Appeal of the Free Lunch. The way the policies are marketed, they sound like free insurance because if you do die you get a payout and if you don't you get your money back. But as we've shown, if you look carefully at the numbers this "free lunch" will cost you. We suspect that because of limited time or the like, many insurance buyers won't bother to run the numbers. *Risk Aversion. This, of course, is the same reason people buy insurance at all. And as we describe in our chapter on uncertainty, you can capitalize on people's aversion to risk in several ways, such as offering warranties or generous return policies. But for the person who's extremely risk averse, mere insurance is not enough, so with ROP riders, insurance companies go a step further: eliminating the downside risk of death— and of life. What's more, since any kind of investment carries some risk, insurance companies are betting that you are more willing to give up unknown future earnings (on money you could otherwise invest yourself) than to give up money already in your pocket. *Loss aversion. People who look into term life insurance know that the odds of dying before the term of the policy are pretty low. Because only about 7 percent of policyholders die before the end of their policy's term, customers know there's a high chance that buying a term life insurance policy is just throwing money away. And people hate losing money: loss aversion (as opposed to simple risk aversion) means that although you might like to gain a dollar, you hate losing a dollar a lot more. Since the Return of Premium rider ensures against the loss of premiums, it can seem like an attractive option—even if it's really a poor deal. Copyright Kay-Yut Chen and Marina Krakovsky,
2 Different Types Of Cheap Life Insurance Accidental Life Insurance
How it works Company will pay out death benefit only if the clients death is caused by an accident. DeathCertificate mustindicatethat the cause of death was an accident. Only.09% ofthese policiesin forceactuallypayout. Because of all these facts, is the reason why AccidentalLife Insurance is so inexpensive.
2 Different Types Of Cheap Life Insurance Group Life Insurance
Howitworks No access to a knowledgeable representative. No consideration of your financial needs. The policy may offer guaranteed coverage only as long as your employment continues. Annual Renewable Term, ART, is the most common form of group products, but it doesn’t usually come with guaranteed premiums.This means the insurer has the right to increase your premiums at will.
How it works Group Life Insurance coverage is usually limited to 2X your annual salary which is well below the recommended amount of coverage for the average family. Group life insurance: is purchased through an employer or organization, often it is controlled by that employer or organization.
WhyPrimericaLife A licensed Primerica rep works with you to choose the coverage that meets your needs. We offer affordable premiums that are guaranteed for the term of the policy. This helps you control your costs. We do not limit the coverage you can apply for, making it possible for most families to secure coverage which is 8-10 times their annual income, as most experts recommend. Once issued as long as the payments is kept current, your policy remains in effect as regardless of changes in your health. Your Primerica policy is portable. You take it wherever you go, regardless ofyour employment status.
WhyPrimericaLife Guaranteed re-insurability. IBR: Increasing benefit rider, with this benefit a client has the option of increasing his death benefit by 10% regardless of health. Only clause is suicide: But after2 years client may commit suicide & Primerica will pay the death claim. (Committing suicide is not recommended but it is another option.) FNA: a comprehensive Financial Needs Analysis to help you get your financial house in order, from debt to retirement and more. Death Benefit payout is 5X industry average. Highly rated: AM Best A+, Standard & Poor’s AA
How we get paid $ 80 a month 80 X 12 – 75 (policy Fee) =885 885 X.50 (District) X.75 (advance) = $331