Download presentation
Presentation is loading. Please wait.
Published byDorothy Long Modified over 9 years ago
1
Principles of Agency Building 9th Edition May 12,2009 By: Roberto H. Bruce, MS, CLU, ChFC, LUTCF Cavaliers Insurance Marketing Rights Reserved
2
Agency Building Opportunity Strong Company Unique Products Ground floor Agency compensation Rights Reserved
3
The Ultimate of Selling is Agency Building Recruit Train Sell Rights Reserved
4
Term – Insurance For A Specified Period T1T1 T2T2 T age CCOI $ T 1 Flexible Premium 2 Adjustable Death Benefit 3 Current Interest Rate 4 Guaranteed Interest Rate UL $ Rights Reserved
5
Premiums $ Tamra 88 Defra 85 Net Level 7 Pay Test Guide Target Minimum Premiums Single Level eg. $5,000 eg. $25,000 eg. $2,000 YR 1— $5,000— $4,000 2—10,000 — 5,000-9,000 3—15,000 — 7,000-16,000 4—20,000 — 5—25,000 — 6—30,000 — 7—35,000 — M.E.C Annuity Rights Reserved
6
TRA’ 86 PREM INSURANCE Interest Income PREM Interest Income ANNUITY 59 ½ - 10% Penalty FIFO LIFO Rights Reserved
7
Life Insurance Tests 1. Guide Premium 2. Corridor – Age 95 Rights Reserved
8
Options t1t1 95 T $ $ T Savings OPT A Level Face Amount OPT B Increasing Face Amt or Face Amt + Savings 100,000 t1t1 Rights Reserved Amount At Risk
9
Policy Costs CCOI + Policy Fee + PREM Charge + Charge / $1,000 TCOI = PREM – TCOI = Policy Fund Rights Reserved Cash Value Cash Accumulation Value Policy Fund – SURR Charge = Cash Surrender Value
10
Hierarchy of Life Plans Whole Life Universal Life Term Rights Reserved
11
Parties To A Contract Owner Insured Beneficiary Three - Gift Tax One - Estate Tax Two – Recommended Disclaimer, if not taken Rights Reserved
12
Waiver Of Premium In case of disability Always recommend Disclaimer, if not taken Rights Reserved
13
Beneficiary(ies) Primary Contingent / Secondary Per Capita Per Stirpes Rights Reserved
14
Product Spectrum Life DILTC10T AF ANICO Assurity Sagicor LBL 15T AF Assurity LBL 20T AF ANICO Assurity Sagicor LBL AF ANICO Sagicor LBL 30TT95 AF UL ANICO LBL Assurity Par ANICO Assurity Simplified Issue Assurity Non-Par AF Sagicor Big Cases LBL/ANICO Small Cases ANICO/AF/Assurity/Sagicor Preferred/Big Cases LBL/ANICO Standard & Below ANICO/AF/Assurity/Sagicor WL CI Assurity Rights Reserved 25T AF GT AssuritySagicorAssurity
15
Annuity 1 or more premiums (accumulation) 1 or more payments (distribution) Tax-Deferred 59 ½ 10% Penalty 1 – Single premium Immediate – SPIA Deferred - SPDA 1 or more - Flexible premium FPA/FPDA Ordinary incomeCapital gains FIX – General AccountVARIABLE – Separate Account QUALIFIED IRA (Front)-70 1/2 DEDUCTIBLE NON-DEDUCTIBLE ROTH-IRA (Back) NON - QUALIFIED TRADITIONAL IRA / ROTH-IRA / SEP-IRA / SIMPLE IRA DIRECT TRANSFER / ROLLOVER / CONVERSION Rights Reserved INDEX / TREASURY LINKED / MYG/MVA 1035 Exchange
16
Annuity Ideal Cases AFA (FPA $25/mo - $10,000/yr) Sagicor/Assurity (SPDA $2,000) ANICO (SPDA $4,000Q/$5,000NQ) LBL (SPDA $10,000) LBL (FPA $3,000Q/$10,000NQ) Rights Reserved
17
Plan Distributions – When to? Die, Disabled, or severance from employment Plan terminates, no successor plan 59 ½ Financial hardship* Rights Reserved *Cannot rollover to IRA
18
Early Distribution Penalty (Plan, IRA, Annuity) 10% additional tax on distributions under age 59 ½ In addition to any regular income tax on the amount Rights Reserved
19
Penalty Free Plan Early Distributions Death or Disability Distributions over life expectancy on termination of employment Service separation after age 55 Qualified domestic relations order Medical expenses over 7 ½ % of AGI Distribution election by March 1, 1986 Dividends on employer securities IRS levy of plan Qualified reservist distributions Rights Reserved
20
IRA Rollover Distribution from one qualified plan Contribution to IRA within 60 days Rights Reserved
21
Types of IRA Rollover Direct - qualified plan to IRA, no 20% tax withholding Indirect - qualified plan to individual to IRA, with 20% tax withholding Rights Reserved
22
IRA Rollover Exceptions Series of substantial equal payments based on life expectancy, or 10 or more years period certain Required minimum distribution (RMD) Corrective distribution Loan treated as distribution Hardship distribution Dividends on employer securities Cost of life insurance coverage Distribution to beneficiaries Rights Reserved
23
Penalty Free IRA Early Distributions Unreimbursed medical expenses over 7 ½ % of AGI Not more than cost of medical insurance Disabled Beneficiary of deceased IRA owner Distribution in form of annuity Not more than qualified higher education expenses Used to build, rebuild first home $10,000 or less IRS levy of qualified plan Qualified reservist distributions Rights Reserved
24
Required Minimum Distributions (RMDs) Minimum amount to withdraw annually starting with year at age 70 ½, or if later, year retires (except 5% business owners) Amount not withdrawn taxed at 50% Rights Reserved
25
Placement Ratio Issued over submitted apps Pre-qualify prospect Concept selling Trial app / no initial premium for borderline cases Initial payment w/ app More apps, e.g., Juvenile plans Case follow-up Rights Reserved
26
Persistency Ratio Active over issued policies Modal payment hierarchy 1. Annual, 7 Pay, or Single 2. Monthly bank draft 3. Semi-annual 4. Quarterly 5. Monthly direct billing Client contact/review Improve placement ratio Rights Reserved
27
Goal Setting 4.$$$$ 3.Sale/Network 2.Appointment 1. Calls ——————— 3 min NO $ Time Need Name Company Purpose Appt. T1T1 T2T2 Rights Reserved
28
$ _______ A.P. Goal ÷ $ _______ A.P./Sale Sales/Year x_______ Appt/Sale Appts/Year ÷52 Wks Appts/Wk x_______ Calls/Appt Calls/Wk x 3(min/call)/60(min/hr) Hrs/Appt Appt Hrs/WkCall Hrs/Wk + Hrs/Wk Total x ___ min/call ___ calls/appt ___ hrs/appt ___ appt/sale $_____ Annual Prem (A.P.)/Sale $ 250,000 – ESD/SGA $ 100,000 – MDRT $ 50,000 – Convention Goal Setting 20 2 2 1,000 100,000 1,000 100 2 200 20 80 4 12 2 8 4 Rights Reserved 3
29
ESDASMDMUMHow? 1) Recruit One (1) Agent Per Month 3 Agents/QTR 12 Agents/YR Maintain 10 Producing Agents Maintain 6 Producing Agents Maintain 2 Producing Agents 1) Mergers / Acquisitions 2) Advertising 3) Agency Office 4) Seminars 5) Business phone/ pager / 800# / Fax 6) Laptop Computer 7) Partnering 8) Recruiting presentation 9) Annuity / high premium selling 10) Weekly reports 11) Monitor agents 12) Awards / Incentives 13) Referrals / Phone Book / Associations 14) Education (CLU, CFP, LUTCF, ChFC) 15) Concentration 16) Delegation 17) Mailers / Leads 18) Convention 19) Goal Setting 6 Agents Per YR4 Agents Per YR2 Agents Per YR 2) Participate in Regional Seminars Yes 3) Conduct Agency Seminars Yes for ESD-Aspirants Participate 4) Provide Agency Sales and Training Support Yes 5) $250,000 Paid Target Premiums/YR $100,000 Paid Target Premiums/YR $60,000 Paid Target Premiums/YR $36,000 Paid Target Premiums/YR 6) $500,000 Total Premiums $250,000 Total Premiums $100,000 Total Premiums $60,000 Total Premiums 7) Quarterly Progress Review With RD With Immediate Manager 8) Annual Review with RD With Immediate Manager Aalliance Management Expectation/Commitment (Calendar Year) Rights Reserved
30
Agency Building Blocks 1) Recruit - Producer, Recruiter 2) LEG 3) Magnificent “Seven” 4) Rule of “Three” 5) Principle of the understudy 6) Bottom/Top Approach 7) Recruit-Train-Sale Cycle 8) Teamwork/Involvement 9) Lead from the front 10) Quality vs. Quantity – Collect/Select 11) Generalization-Specialization Cycle 12) Simplify - KISS 13) Sowing/Reaping - Stout-Hearted 14) Set the example 15) Go forth and multiply 16) Numbers game - +/-, Attrition, Prime, Progression 17) Curves- Straight line, Pulse, Supply, Ravine / Death-defying, Crash- landing, Sine, Square, Cubic 18) Anarchy a) Absence of Rules b) Rules are impossible to implement c) Nobody is implementing the rules d) Rules are being violated with impunity 19) Five Pillars - Professionalism, Persistency, Perseverance, Production, Proficiency 20) Management Cycle - Planning, Organizing, Staffing, Directing, Controlling 21) Goal Setting 22) 7 C’s of Success - Commitment, Competence, Concentration, Consistency, Creativity, Control, Conduct 23) Maximin = Minimax Rights Reserved
31
Recruit A recruit is not a recruit without a recruit A recruit is both a producer and a recruiter Rights Reserved
32
LEG A leg is not an effective leg without another leg Rights Reserved
33
Magnificent “Seven” Tested to be the most efficient Seven members of a squad Seven days in a week Less-not enough, inefficient More-Too much to handle Rights Reserved
34
Rule of Three Out of the seven, select your best three Rights Reserved
35
Principle of the Understudy Out of your best three, select your understudy that can duplicate or replace you Rights Reserved
36
Bottom/Top Approach Service the bottom Inform all at the top Rights Reserved
37
Cycle of Success Rights Reserved RECRUIT Marketing Structure Professional Development Financial Independence TRAIN SELL
38
Teamwork/Involvement No man is an island The whole is more than the sum of its parts Congregation Rights Reserved
39
Set The Example Lead from the front in sales, recruiting, and training Rights Reserved
40
Quality vs. Quantity Collect and collect; and then select Rights Reserved
41
Generalization/Specialization Cycle Rights Reserved
42
Simplify K I S S Keep It Simple and Sincere Rights Reserved
43
Sowing/Reaping What you sow you reap a thousand times Stout hearted men Rights Reserved
44
Go Forth and Multiply The ultimate of selling is in agency building If you don’t talk about recruiting, it will never happen Rights Reserved
45
Numbers Game +/- Attrition Prime Progression Arithmetic Geometric Rights Reserved
46
Curves Straight Line $ y Supply $ y Ravine/Death Defying $ y Crash Landing $ y Square $ y Sine $ y Rights Reserved Cubic $ y $ y Pulse $ y
47
Why Anarchy? Absence of Rules Rules are impossible to implement Nobody is implementing the rules Rules are being violated with impunity Rights Reserved
48
Five Pillars Professionalism Persistency Perseverance Production Proficiency Rights Reserved
49
Management Cycle Planning Organizing Staffing Directing Controlling Always go back to planning every time there is a hitch Rights Reserved
50
Book of Success Front Cover: Goal Setting Body: 7 C’s of Success CommitmentCreativity CompetenceControl ConcentrationConduct Consistency Back Cover: Maximin=Minimax Maximize profit, subject to minimum utilization of your own resources Minimize cost, subject to maximum utilization of other people’s resources Should be balanced Rights Reserved
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.