LOOKING BACK…focused on the future CIA Annual Meeting LOOKING BACK…focused on the future

UL is unbundled insurance Requires Maintenance Commissions are up-front Impact of interest Rates Do clients understand?

Case Study DL UL Block 7,000 policies Issued in 1981 to 1984 Average Face of $74,000 Average CSV of $5,500 Underfunded

FN 61, Face of $40,000 Plus CSV of $340

Goals of Client Mailing: Increase Awareness CSV made up of ins and outs YRT vs. Level COI Sustainability of their policy Introduce Enhanced YRT rates Encourage action on under-funding

Was the initiative successful? 7% of people switched to Level COI – only ½ of these increased funding 5% took action to make policy sustainable 7% of clients phoned us Agents phoned us regarding 4% of the policies Cost about $300 K PVFP up about $700 K

What about people who did not respond? 23% (5) don’t remember the package 10% (2) ignored the package 10% (2) skeptical or upset 10% (2) didn’t understand it 5% (1) wants a copy 14% (3) will decide later 28% (6) will talk to their Advisor

Conclusions Maintenance of UL is non-trivial Need to clarify roles Pricing and compensation need to line up with who will do the work