Agent training only. Not for sales use. Wealth Maximization Agency Owners Meeting October 2013 Agent training only. Not for sales use. 1

What you will learn How much business you are losing How much business you are conserving Additional Sales Opportunity What to do about it

Agent training only. Not for sales use. Lost Business Agent training only. Not for sales use. 3

Big Picture -- Lost vs. Conserved Business In the third quarter of 2013, Liberty National: Column 1: Lapsed $9.4 million in bonus-eligible business Column 2: Conserved $233,884 Column 3: We’re conserving 2.5% of our Lapse $36.3 million projected in lost business annually

Agent training only. Not for sales use. Conserved Business Agent training only. Not for sales use. 5

Total Conserved Business (Column 2) Column 4: Reinstatement Bonus AP + Column 5: Standard Reinstatement AP + Column 6: PD to BD Conserved AP = Total Conserved Business

Reinstatement Bonus (Column 4) Company pays bonus to agents create income and additional activity which aids agent retention. Company pays to help Agency Owners build wealth through renewals. Liberty 33 reinstated policies per month. AIL averages 298. 32 Agencies have not submitted a bonus-paying reinstatement. Kathy Blanco has reinstated twice as much AP as any other Agency Owner.

Standard Reinstatements (Column 5) AP Reinstated that didn’t pay a reinstatement bonus.

Conserved PD to BD AP (Column 6) Moving Payroll Deduction customers to bank draft

Sherri Young, Enterprise, AL Almost three times more Payroll AP conserved to Bank Draft than next Agency 216 cases in Agency 90% of new sales are individual

Projected Lost AO Annual Renewals Column 1: Lapsed Business - Column 2: Conserved Business = AP Renewal Opportunity 7.3% Agency Owner Renewal Rate 65% 13-month Persistency What would that do for your long-term wealth building year after year after year after year after year after year after year after year after year after year after year?

Additional Sales Opportunity Agent training only. Not for sales use. 12

Q3 Premium Paying Policies Lapsed (8) What would the perfect lead look like? Knows Liberty National Has need for insurance Can qualify for insurance Can afford it With no downside

Potential AP from New Sales (Column 9) Set appointments on 25% of lapses Present to 50% of appointments Close 33% of presentations at $500 AP What would that additional AP do for your passion number?

AO Income Potential from New Sales (10) Agency Owners make approximately 25% on every dollar What would that boost do for your immediate income?

AO Income Potential off Referrals (12) Column 11: Each presentation generated 5 referrals Same metrics: Set appointments on 25% of referrals Present to 50% of appointments Close 33% of presentations at $500 AP What would that do for the Agent Activity in your Agency? Activity = Growth = Supervising Agents = Agency Directors = Training = Activity …

Total Opportunity (Column 13) Add the Green Columns… Column 7: Additional Renewals + Column 10: Income from New Sales + Column 12: Income from Referrals Total Income Potential from Lapse How would that additional income impact the growth of your organization? Pay for Quality Manager Pay for Recruiters Better Facilities

Agent training only. Not for sales use. What to do about it Agent training only. Not for sales use. 18

Never Let It Lapse What’s your Culture of Quality? Agents call late customers from Premium Notice Combined Billing report to start every call session No call session? Have Quality Manager call from SAMs

Make Reinstatement Bonus a Big Deal Promote it: Recognition through Bonus Checks and first year agents earning renewals Assign it: Who distributes leads and how are they tracked? Measure it: What do you hold Agency Directors accountable to each month? If an Agent is given 50 leads, what results are they accountable for?

Conserve Payroll Deduction Business Promote it: Recognition at Agency Meeting Assign it: Who calls these customers and when? Measure it: What do you hold your quality manager accountable to each month?

Make Lapsed Business an Activity Driver Good things happen when Agents are talking to people Additional Sales Additional Referrals Additional Worksite Cases

If it’s important to you, it will be important to your people Agent training only. Not for sales use. 23

It’s not what you write, it’s what you keep Agent training only. Not for sales use. 24