TMK TMK Atlanta Training Seminar August 26-27, 2010 For Training Only

TMK TMK Luke Gilliam Vice President

TMK TMK What You Will Learn Activity is always the answer How to find excuses to have conversations Talk to enough people, some of them will buy If you can’t put your finger on it, you are guessing Don’t make it harder than it is Get sponsorships! How to be a self-sufficient Agent Individual, Worksite & Med Supp product training

TMK Responses are anonymous Questionnaire

TMK TMK To-Do List

TMK TMK Top Producer Panel

TMK SERVICE before SELF in everything you do - place company interests and customer interests above personal gain or preferences. Core Beliefs

TMK INTEGRITY in EVERYTHING you do – make sure you allow no “traps” of improper business activities, systems or practices to develop, in order you ensure ethical achievement has no alternatives (no short cuts). No leader – REGARDLESS OF POSITION – can be allowed to claim “I didn’t know” – it is your JOB to KNOW and all must be held accountable for any ethical lapses or execution gaps in your organization. Core Beliefs

TMK EXCELLENCE in EVERYTHING You Do - with clear expectations and consequences for you and of those who report to you (both positive and negative). One without the other won’t work. Core Beliefs

TMK TMK Prospecting

TMK Recommended Weekly Sales Activity Model 240 Contacts 24 Dropoffs/Appointments 15 Presentations 5 Sales = $2,000 AP per week 300 Sponsorships Activity Management

TMK Contact Conversation in person or on the phone where you ask for a dropoff/appointment Activity Management: Definitions

TMK Dropoff / Appointment Agreement to meet Activity Management: Definitions

TMK Presentations Dropoff/appointment that ends with the Agent asking the customer for a sale Activity Management: Definitions

TMK Sales Signed application and agreement to deduct money for the first premium Activity Management: Definitions

TMK Sponsorships Name and contact information of a referral to receive an introductory offer (i.e., $3,000 Accidental Death Policy, Child Safe Kit, MedFacts Kit, Memorial Guide) Activity Management: Definitions

TMK Who do you know? List Existing Customers Sponsorships Call Clinics Sales Genie Walk ‘N’ Talks T-Canvas (whitepages.com) Leads Door Hanger/Signs Events/Organizations Prospecting Ideas

TMK Recommended Weekly Sales Activity Model 240 Contacts 24 Dropoffs/Appointments 15 Presentations 5 Sales = $2,000 AP per week 300 Sponsorships Activity Management

TMK So how did we arrive at these numbers?

TMK How did we arrive at these numbers? % of contacts turn into dropoffs % dropoffs turn into presentations 15 33% presentations turn into sales 5 Avg. sale $37/month = $411 AP $2,000 AP per week 300 Sponsorships Activity Management

TMK Project 25

TMK What will sponsorships do for your income? 25 Practice with friends 10 Sponsorships apiece 250 Sponsorships Sounds a lot like 240 contacts doesn’t it? Activity Management

TMK “That’s where the money is.” Bank Robber Willie Sutton

TMK What will sponsorships do for your income? 240 Contacts % to dropoffs vs. 10% cold call % dropoffs to presentations 56 75% close rate vs. 33% cold call Avg. sale $37/month = $411 AP Activity Management

TMK What will sponsorships do for your income? 56 sales x $22,400 at 50% commission $11,200 in commissions x40% bonus level $8,860 in bonus Activity Management

TMK From 56 Sales on 240 Sponsorships $11,200 Commission +$8,860 Bonus $20,060 Total Income When contacts are sponsorships?

TMK Recommended Weekly Sales Activity Model 240 Contacts 24 Dropoffs/Appointments 15 Presentations 5 Sales = $2,000 AP per week 300 Sponsorships Activity Management

TMK TMK Product

TMK Sell Whole Life for permanent needs Sell Term Life for temporary needs Whole life vs. Term life

TMK year-old married man with a wife, two kids and a mortgage in Alabama. He has $100 to spend on life insurance. Scenario 1 Agent thinks the customer needs $50,000 of Whole Life $50,000 of Whole Life costs $76.86 With his remaining money, he can purchase $50,000 Term 20 RC for $ Needs Based Selling

TMK Scenario 1 If the customer dies in the next 20 years, his family receives $100,000. $50,000 Whole Life +$50,000 Term 20 RC In 20 years, the Whole Life policy will have a cash value of $9,396 and a reduced paid-up value of $29,050. Needs Based Selling

TMK Scenario 2 Final Expense need $15,000 $15,000 of Whole Life is $24.32 per month With his remaining money, he can purchase $200,000 Term 20 RC for $75.78 Needs Based Selling

TMK Scenario 2 If the customer dies in the next 20 years, his family receives $215,000. Needs Based Selling

TMK Scenario 1 $100,000 Death Benefit + $9,396 Cash Loan Value + $29,050 Paid up value Scenario 2 Needs Based Selling $215,000 Death Benefit Needs Based Selling

TMK Insure the highest income earner first Insure the spouse second Insure children third Who should I insure first?

TMK Watch for potential selling opportunities Play Video

TMK Whole Life vs. Term Life Children’s Insurance Rider Premium Waiver Conditional Receipt Product Training

TMK “I’m not sure, but I’ll find out.” “I’m not sure, let’s look at the policy.” Two Key Phrases

TMK Children’s Insurance Rider Why sell it? Great product, covers all children for low premium Children can purchase additional insurance without proof of insurability Product Training

TMK Children’s Insurance Rider My 24-year-old daughter is married. She lives in Germany with her husband, who is in the military, and they have three children. Is she still covered? Product Training

TMK Children’s Insurance Rider My 24-year-old daughter is married. She lives in Germany with her husband, who is in the military, and they have three children. ANSWER: Yes. Coverage on an individual child will cease on the earlier of the anniversary following the child’s 25 th birthday or the expiry date. Product Training

TMK Children’s Insurance Rider My wife and I have a children’s insurance rider on our two children. We have a third child born in perfect health. At 10 days old, the child dies. How much will the company pay? Product Training

TMK Children’s Insurance Rider My wife and I have a children’s insurance rider on our two children. We have a third child born in perfect health. At 10 days old, the child dies. How much will the company pay? ANSWER: Nothing. To be covered a child must: be named in the application; be born and survive to age 15 days; or be legally adopted by the insured after the date of the application. Product Training

TMK Whole Life My wife and I have a child, a son, born in perfect health. At 10 days old, we buy a $10,000 whole life policy. On the child’s 33 rd day, he dies. How much will the company pay? Product Training

TMK Whole Life My wife and I have a child, a son, born in perfect health. At 10 days old, we buy a $10,000 whole life policy. On the child’s 33 rd day, he dies. How much will the company pay? ANSWER: We will pay the proceeds of the policy to the beneficiary when we receive due proof of the insured’s death while the policy is in force. If the insured is not more than two months old at death, we will pay $250 per $1,000 of the death benefit. Product Training

TMK Premium Waiver Why sell it? If you don’t ask and they become disabled, they are going to want to know why you didn’t offer If they do become disabled, they can’t work and won’t be able to afford the premium when they need the coverage the most Product Training

TMK You sell a $100,000 Term Life policy. The customer asks, “When does the coverage go into effect?” What’s your answer? Product Training

TMK First premium is paid All underwriting requirements are met It is issued as applied for Policy is delivered Product Training

TMK You sell that $100,000 Term Life policy on Friday. Customer dies five days later. If the premium has been paid and underwriting requested a urine sample from the applicant that had not been obtained, what is the death benefit that would be payable? Product Training

TMK You sell that $100,000 Term Life policy on Friday. Customer dies five days later. If the premium has been paid and underwriting requested a urine sample from the applicant that had not been obtained, what is the death benefit that would be payable? ANSWER: $0. Product Training

TMK You sell that $100,000 Term Life policy on Friday. You deliver the policy two weeks later. The customer dies 26 days later. What is the death benefit that would be payable? Product Training

TMK $100,000 Product Training

TMK You sell that $100,000 Term Life policy on Friday. Customer dies five days later. If the premium has been paid and all underwriting requirements have been met, what is the death benefit that would be payable? Product Training

TMK If as much as one monthly premium is collected or bank draft authorization is executed, the amount of the collection or draft should be entered on the application, and the signed Receipt should be given to the applicant. The Conditional Receipt will then be binding on the Company subject to the terms and conditions of that Receipt. Conditional Receipt

TMK If no premium is collected and a bank draft authorization (Form R-3616, Authorization for Preauthorized Payments) is not executed when the application form is completed, the Conditional Receipt must be left attached to the application form. The A-250 conditional receipt states that “NO COVERAGE WILL BECOME EFFECTIVE PRIOR TO POLICY DELIVERY UNLESS AND UNTIL ALL CONDITIONS OF THE RECEIPT ARE MET.” Conditional Receipt

TMK In order for coverage to be provided under the conditional receipt the following conditions must be met: 1. The applicant must submit an initial premium payment equal to the first full premium or bank draft authorization. 2. All underwriting requirements must be completed (blood, urine, etc.) 3. The insured is an acceptable risk for the plan applied for on the later of the date of application or the date on which all of the Company’s underwriting requirements are satisfied. Conditional Receipt

TMK For example, if a proposed insured was killed in an automobile accident prior to all of the underwriting requirements being met, the claim would not be paid. To prevent misunderstandings in connection with applications to the Company for large amounts of insurance, the following limitations and instructions apply. The A-250 application contains a Conditional Receipt which limits the maximum amount of insurance which may become effective under such Conditional Receipt to $50,000 including accidental death benefits. All of the conditions and limits expressed in the Conditional Receipt must be complied with. While these limitations are expressly set out in the Conditional Receipt and are not changed in any way, these additional instructions and limitations must be followed to prevent any possible misunderstanding. Conditional Receipt

TMK What about Worksite? Coverage effective at time of signature for the amount ultimately issued Cancer: 30-day waiting period for coverage begins at time of application Product Training

TMK TMK Website

TMK TMK Laptop Sales Presentation

TMK About LNL Introductory Offer Get Sponsorships (20+) Survey Barbara/Renee Story (Emotion) About Life Insurance Need/Product E-app Go see Sponsorships Repeat Process Laptop Sales Presentation

TMK TMK Brainshark

TMK Bookmark this address: First 5 letters of last name + Last four digits of SS# User Name Click ‘Forgot Password’ Training: Available Tools

TMK TMK Top Reasons for Terminations

TMK Violation of signature rules 2.Taking cash from a customer 3.Submitting an application on themselves or a person related by blood or marriage 4.Forging or falsifying an application 5.Failure to delivery policy 6.Frequently replacing customer’s existing polices 7.Failure to meet minimum standards Top Reasons for Terminations

TMK TMK How Do I Get Promoted?

TMK TMK Average Earnings Agents: $56,948 Branch Managers: $116,000

TMK TMK Test Answers

TMK What document do you use to find out information about your Liberty compensation? Guide to Growth #1

TMK What document do you use to find out information about Liberty signature rules, eligible beneficiaries, and underwriting requirements? Agent’s Instruction Guide #2

TMK What website do you go to access your Brainshark online training? #3

TMK It is acceptable when a customer does not have a checking account to accept cash and buy a money order for the first premium. False #4

TMK It is acceptable for an Agent that has been appointed 90 days or LESS to submit Liberty business on himself/herself or persons related by blood or marriage. False #5

TMK It is acceptable for an Agent that has been appointed 90 days or MORE to submit Liberty business on himself/herself or persons related by blood or marriage. True, as long as the Agent submits an to BEFORE the app is submitted #6

TMK Fill in the correct numbers of the recommended weekly sales activity model: 240 Contacts 24 Dropoff/Approintments 15 Presentations 5 Sales 300 Sponsorships #7

TMK What day and time each week is cut off for application submission for gross submit? 3:30 p.m. Central Friday #8

TMK What must your DCN percentage be to receive 100% of your bonus? 8 #9

TMK What percentage of your health gross submit is counted toward bonus calculation? 20% #10

TMK What happens to anyone’s direct pay whose commission account is below $500? Cut in half #11

TMK What happens to anyone’s direct pay whose commission account is negative? All goes to commission account #12

TMK How is DCN calculated? Declines + Cancels + Not-Takens Divided by submitted business #13

TMK How is QOB calculated? Business paid 4 months or longer Divided by submitted business #14

TMK What document details the steps to prospecting, closing, enrolling, and contacting the bookkeeper on worksite cases? Steps to Success #15

TMK What is the Medicare Part A deductible? $1,100 #16

TMK What is the deductible on HDF? $2,000 #17

TMK What is the guaranteed interest rate on the Reserve Fund Annuity? 3% #18

TMK It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming Teddy Roosevelt, 1910

TMK But who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat. Teddy Roosevelt, 1910

TMK Friday 8 a.m. Bring Your Packets Branches 1 - ? Branches X – x next door