Life Changes, So Does Life Insurance

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1 Marketing Letter for Business Clients [DATE] [CLIENT NAME] [ADDRESS] [CITY], [STATE] [ZIP) Dear [Mr./Ms.] [LAST NAME]: Are you one of 62% of life insurance policyholders that don t know what they own or how it works? If I can show you a way to get more coverage for the same amount of money or the same coverage for less money would you be interested? Because you are a valued client and a business owner, I want to let you know about a complimentary service available to you. If you own life insurance, you ve made a commitment to protect your business and your family. But when was the last time you reviewed your business continuation plan and insurance policy(ies)? Life insurance can play an important role by providing the protection you need to help keep your operation running whether it s to fund the continuation of your business or to plan for retirement. Life insurance can be a valuable part of the financial planning for your business. I d like to offer you a complimentary insurance review to ensure that your current business continuation plan and insurance coverage are meeting your business and personal goals. There is no charge for this insurance review What s involved in an insurance review? Basically, we ll examine your current coverage, assess any personal or business changes that may have taken place since the policy was issued, and help you determine if your insurance is still in line with your business planning. Getting started is easy. Contact me at your earliest convenience at [INSERT PHONE NUMBER] and we can schedule a consultation and conduct your review. Thank you for your continued trust. Sincerely, Producer Name

2 Marketing Letter for Individual Clients [DATE] [CLIENT NAME] [ADDRESS] [CITY], [STATE] [ZIP) Dear [Mr./Ms.] [LAST NAME]: Are you one of 62% of life insurance policyholders that don t know what their insurance is and how it works? If we can show you a way to get the same amount of coverage for less money or more coverage for the same amount of money would you be interested? Because you are one of our valued clients, I want to let you know about a complimentary service available to you. If you own life insurance, you ve made a commitment to protect your family and possibly your estate. But when was the last time you reviewed your policy? In addition to helping you with your financial needs, I want to make sure you know that I can also help you with your life insurance needs, I d like to help you evaluate your current life insurance needs. As such, I d like to offer you a free, no obligation life insurance review to make sure that your current policy or policies are still in line with your overall financial goals and family situation. Many things can affect your ongoing need for life insurance an addition to the family, a change in marital status, or business-related changes. However, most of us never take the time to review our policy after we buy it. What s involved in a policy review? Basically, we ll examine your current coverage, assess any life changes that may have taken place since the policy was issued, and help you determine if your insurance still meets your financial goals. There is no charge for this insurance review. Contact me at your earliest convenience at [INSERT PHONE NUMBER] and we can schedule a consultation and conduct your review. Thank you for your continued trust. Sincerely, Producer Name

3 Policy Review Checklist Current Statement Policy Data Page In-Force Ledger How Much Insurance Questionnaire Business Insurance Questionnaire Ownership/Beneficiary Changes? Underwriting: Has Your Health Changed? When you discuss insurance with your clients and prospects, it is imperative that you obtain information in regards to medical history and lifestyle. These two attributes are key in pricing the coverage for your client. For example, ask these questions: Any history of heart disease or cancer? Are they taking any medications? Any adverse family history? Blood pressure and cholesterol? Does the client use tobacco? Does the client fly, scuba dive, parachute? Alcohol and drug abuse? Foreign travel and driving record? Appropriate height/weight build? These are some of the factors that could have an adverse affect on their underwriting class.

4 Sample Case Jack is 65 years old and looking to retire while maximizing his income and protecting his family. Jack currently has four life insurance policies that he has purchased over a period of 40 years. Jack is still paying annual premiums on all four policies. Death Benefit Current Annual Premium $35,060 $540 $11,060 $484 $ 9,385 $120 $ 8,758 $ 90 $64,263 Total $1,234 Total Cash Value of all four policies $35,146 Jack has 3 choices 1. Continue to pay the premiums and keep the $64,263 Death Benefit. 2. Stop paying premiums and allow the cash value of the policies to maintain the $64,263 Death Benefit. 3. Use the cash value of all four policies to buy a new policy with a guaranteed Death Benefit and no future premium payments. $35,146 will buy Jack $112,000 of insurance with no out of pocket expenses or future premiums.

5 Why do Life Insurance Reviews? Based on a recent study by the National Association of Insurance Commissioners over 60% of your clients that own life insurance have no idea what they own and how it works. In addition there have been several changes in the market and the industry that directly impact your customers life insurance, they include: Changes in interest rates Changes in mortality costs or costs of insurance Changes in the stock market Changes in policy design Tax law changes Because of these changes it is important for your clients to review their policies on a regular basis. How does your business benefit? By offering life insurance reviews to our clients you provide a value added service to them that will help them understand what they have, how it works and what are the strengths and weaknesses of their current policies. It also allows you to uncover other opportunities such as estate planning, business planning and charitable planning. What is the process? Once we have identified a client that is interested in having a policy review done we collect the following information: Copy of the current statement In-force ledger or illustration Policy details including beneficiary, owner and premium payer Once we have these details we put together a document that will outline for your clients how the policy works and if it is performing efficiently. Included in the review will be the following: How was the policy issued Who are the current beneficiaries How is the policy owned What is the current cash value What is the current premium What is the long term performance of the policy In addition we will offer alternatives for your client to consider that could either give them more coverage for the same amount of money, or the same coverage for less money, the alternatives could also give the client better guaranteed options for their policies. What is the first step? We have created a complete marketing kit for you to use to market this concept to your clients, the kit includes a letter, customizable brochure and checklist for your clients. In addition you can start by asking your clients in meetings about doing a life insurance review. Some questions you might ask the client: Do you currently own life insurance and if so have you had it reviewed recently? If we can show you how your life insurance works and if it is performing efficiently at no cost or obligation would you be interested? If we can show you a way to get more coverage for the same amount of money or the same coverage for less money would you be interested? Contact us and we will show you how you can significantly add value to your clients as well as grow your business using