Presentation on theme: "FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Policy Review Your life doesn’t stand still. Neither should your coverage. Insert RLS name."— Presentation transcript:
FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Policy Review Your life doesn’t stand still. Neither should your coverage. Insert RLS name Regional Life Specialist Date and Location
1 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC The following presentation has been developed and approved for use by authorized producers and agents of the insurers of American General Life Companies. This presentation must be used with the accompanying narrative notes which are included in the presentation. You must take the following steps to access these notes: 1.Save the presentation to your laptop or PC. 2.Open the saved presentation; then click the “View” option in your menu bar in the upper left corner of your screen. 3.From the “View” drop down, click “Notes Page”. This will open the presentation with the narrative notes at the bottom of each slide. When making the presentation, these notes must be used without modification. Please contact your American General Life Companies representative with additional questions.
2 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Policy Review Reviewing your clients’ policies every few years is an important part of helping your clients keep their financial strategy intact. If their needs or plans have changed, then their policy may need to be adjusted to fit their new circumstances. They may have too little or too much insurance for their present situation and future goals. Talking with your clients about their financial plans and periodically reviewing the role that their life insurance policy plays in those plans can make a marked difference in your clients’ ability to reach their goals. Chances are, life is quite different today than when your client purchased their policy — and likely so are their insurance needs. A systematic policy review is the best way to ensure their coverage continues to keep pace with their needs. 2
3 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Why is a Policy Review Important ? Would your client like to know if they could possibly increase their death benefit and/or get death benefit guarantees ? Wouldn’t your client want to be reassured that their death proceeds will be paid to the right beneficiary ? Wouldn’t your client want to know if their coverage were inadequate due to changes in their lives, their needs or in legislation ? Do your clients’ have children or perhaps parents who rely on them for support ? Would your client want to move from “renting” to buying insurance ? A few reasons why a policy review is important in keeping your clients financial plan intact.
4 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC What Events Can Trigger the Need for a Review ? Do you have clients who… Have married or divorced in the last several years ? Have changed jobs or been promoted ? Have started a business or sold one and retired ? Have become parents or grandparents ? Have experienced a death in the family or is now providing financial support for a family member ? Have refinanced or purchased a new or 2 nd home ?
5 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Understanding the Current Premium Environment As your clients’ lives have changed so has their life insurance need. Clients have the opportunity to get more coverage for the same or lower premium than when they initially purchased their current policy due to; – Advances in product design – Underwriting changes due to greater medical and heredity knowledge, and – Interest rate environment changes If your clients haven’t reviewed their policy in the last 5 years or since purchase, a policy review may be in their best interest.
6 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Changes May be Required by Your Client Today Is their current policy type still the right one ? – Are guarantees preferable to price? Is their beneficiary designation still correct ? Have estate tax laws altered their original plans ? Is their policy performing as expected ? – Has market volatility exceeded comfort levels ? Have interest rates or subaccount performance met expectations ?
7 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC How can we assist you in this process ? Partner with your Regional Life Specialist to uncover, profile and identify policy review candidates. Create talking points to help you in conversations with your client and to set the appointment. Gather needs analysis data to determine necessary protection amounts Systematize your review of the findings with your client and help you make meaningful recommendations.
8 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Case Study – Greg's Situation Greg bought his life insurance policy when he and his wife, Sara, bought their first home - a 2-bedroom condo with a combined income of $100,000. – 3 years later they had twin sons Today (16 years later), they have moved twice, each time an upgrade as well as purchased a vacation home. His sons attend a private prep school and he plans to send them to an Ivy League university, and They have started taking care of Sara’s mother. Greg originally purchased a $500,000 policy to protect his family and today it has cash value of $57,000. Is it time to do a policy review and update his coverage?
9 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Case Study - Cheryl’s Situation Cheryl is a 44 year old single mother of 3 who owns two life policies, one whole life and one term, for a combined total of $225,000. She has cash value of $28,000 in her whole life policy and her term has only 2 years left before it ends but she would like to increase her coverage to make sure her children can finish college if anything were to happened to her. She likes guarantees but she wants flexibility and the potential to have the cash value grow in case she needs to access it in the future. She’s in good health and making quite a bit more than she was when she bought her policies but she doesn’t want to continue paying past 65, is there something she can do? Is this an opportunity for a policy review?
10 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Create Opportunities to Enhance Your Life Insurance Position Identify the client(s) who can benefit from a Policy Review Who do you know who has life policies in force with … A purchase date of 5 years or greater? Face amounts of $250,000 or more? Annual Premiums of $5,000 or more? Cash surrender values of $20,000 or more? An insured(s) age 40 – 80 with no major changes in health since time of issue? Variable universal life, universal life or whole life policies that are under performing or are inefficient? Policy focused on death benefits rather than cash value growth List 3 – 5 qualified clients who fit one or more of the descriptions above
11 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC What is Needed to Complete a Policy Review? Prepare your client by asking them to provide… Current policy information (type of policy, face amount, premium, etc.) Marital/family status Goals such as retirement, educational & personal Assets such as real estate, stocks, bonds, personal savings Financial obligations (mortgage, car loans, small business loans, etc.) Charitable intentions
12 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Prepare Yourself and Your Client Your clients will appreciate if you are prepared and take the time to understand their values, visions and goals by… Ask probing questions which help you get to know your client’s present position. – Current cash requirements such as, final expenses Ask personal questions, (DOB, health status, etc.) that may help uncover reasons to update their policies. Expand from the fact finder. Script out additional questions that may enhance the meeting. Utilize your Regional Life Specialist as your partner in this process!
13 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Reiterate Why a Policy Review is in the Best Interest of Your Client The reassurance that their insurance is in line with your client’s and their family’s long term needs. The knowledge that they are not paying for more coverage than they need. The opportunity to review their entire financial situation which may lead to life insurance and other opportunities. The chance to determine if their life insurance is working as efficiently as possible. The possibility to optimize the client’s investment opportunities.
14 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Next Steps - Order Our Policy Review Kit
15 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC The policy owner should complete the Policy Review Worksheet Inforce ledgers should be requested of the existing policies ―The inforce ledger provides an overview based on the original sales proposal along with current cash values, assumed premium payments at current assumptions ―Annual statements should be reviewed as well Based on the data collected and along with the assistance of your Regional Life Specialist, you should be able to offer your findings – The policy is performing as expected or possibly better than expected and no changes are required – The policy requires minor adjustments which may require adjusting the premium and/or payment period, possibly allocation changes or face amount changes – The policy requires substantial changes including the contemplation of a new and possibly more efficient policy Next Steps
16 FOR PRODUCER USE ONLY – NOT FOR DISSEMENATION TO THE PUBLIC Contact your Regional Life Specialist Today so… We can work with you to uncover and identify potential clients for policy review opportunities. We can help you generate leads and convert them into sales to increased revenue. We can help you enhance your clients’ existing life insurance protection. Contact us today at xxx-xxx-xxxx to begin the process!