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

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

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

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

7. 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

8. 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

9. 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

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