concept Marketing Strategies

Transcription

1 Turn Ideas into results. Individual Life Insurance concept Marketing Strategies Find Inside XXConcept-Product Matrix XXKey Sales Concepts XXService & Support

2 Generate more opportunities with solutions that sell. Because every great sales success starts with a great story, we have designed a guide to help you tell those stories. Not just any stories, either stories that are going to make a difference in the lives of your clients to help them achieve their financial goals and objectives. At the Principal Financial Group, we offer tailored solutions that support a variety of personal and business strategies. XXThe difference is in the value. Not all life insurance carriers are the same. What makes The Principal different is the value we provide to you and your clients so you can feel confident in working with us. We are committed to your success and helping you grow your business. In this guide, you ll discover: Proven sales concepts that can help you turn ideas into results Value-added services and support that will help you stand out Quick tips to help you close more sales 2

3 Drive more sales with tailored solutions Take advantage of all that we have to offer from value-driven products and innovative underwriting programs, to market-based approach packages and top-notch service and support, to help make it easy for you to do business with us. Deliver tailored solutions for business and individual markets Platform Products Services Stand out in the business market with our robust Business, Owner and Executive Solutions (BOES) platform that delivers support before, during and after the sale. Help individuals evaluate their financial goals and objectives with Personal Planning Solutions and Individual Approaches Lean on a leader to provide corporate financing options for nonqualified deferred compensation plans. No. 1 Provider in Nonqualified Plan Solutions 1 Close cases faster with time-saving, Principal Accelerated Underwriting SM PROTECTION ACCUMULATION 48 Faster underwriting decisions in as little as 48 hours Term Leverage our comprehensive product portfolio Guaranteed UL UL Indexed UL Variable UL Can eliminate lab testing and paramed exams 2 Polices paid and issued in 10 days or less 1 Based on number of plans, PlanSponsor 2015 NQDC Buyer s Guide. 2 Based on age, product, face amount and personal history. 3

4 Concept-Product Matrix Select from our diverse, value-driven products. Term SUL UL IUL VUL Principal Term Principal SUL Protector II SM Principal UL Protector IV SM Principal UL Provider Edge SM Principal UL Flex II SM Principal UL Accumulation II SM Principal Indexed UL Flex SM Principal VUL Business SM Principal VUL Income III SM VUL NY only Principal Benefit VUL II COLI Principal Executive VUL II BUSINESS PROTECTION Key Person DC ESOP Repurchase DC Stay Bonus ESTATE PLANNING Charitable Giving Gifting Strategies Inheritance Equalization Principal IRA Legacy Plan SM Private Split Dollar Trust Solutions EXIT PLANNING Cross-Purchase Buy-Sell Entity Purchase Buy-Sell No-Sell Buy-Sell One-Way Buy-Sell Multi-Owner Buy-Out Select Buy-Out Business Continuation General Partnership/LLC Sole Owner Transition Plan NonQualified SUPPLEMENTAL RETIREMENT Principal Executive Bonus Plus SM Principal LLC Bonus SM Deferred Compensation Principal S Owner Plus SM Principal Select Reward Plan SM Principal SERP Select SM Principal Split Dollar Plus SM DC PERSONAL PLANNING Diversified Life Strategy Life Insurance as an Asset Supplemental Retirement Income SURVIVOR INCOME Endorsement Split Dollar Executive Bonus Special Needs Planning 4 DC = For Deferred Compensation

5 TURN IDEAS INTO RESULTS Getting Started: Putting Concepts into Action Smart sales strategies can be used to help your clients protect their loved ones or their life s work. Our concept starters are designed in an easy-to-sell format that will help you focus your efforts and get results. Learn Understand the concept, how it works and the opportunity Approach Identify prospects to target your efforts Consult Ask key questions and gather important information See how simple it can be to get started with our sales solutions. Take Action Initiate next steps to deliver a custom solution Get all of the tools and resources to guide you through the sales process. GO TO: advisors.principal.com Start the Conversation Access comprehensive, turnkey approach packages to start conversations with clients, help them understand the need and deliver solutions. Business Market Business Planning Services Offer complimentary informal business valuation & business planning report and buy-sell review Targeted approaches Address specific business priorities, such as key person, buy-sell and supplemental retirement, or approach targeted industries, such as agriculture and healthcare. Individual Market Personal planning solutions Focus on life insurance diversification, estate planning, or life insurance as an asset Established approaches Create more opportunities with approaches such as life insurance review and Principal Retirement Plus. Untapped markets Take advantage of a unique opportunity, only from The Principal, to help you offer additional risk protection solutions with property & casualty firms. 5

6 BUSINESS PROTECTION Key Person LEARN The most valuable asset of any business is the people who contribute most to its success. Loss of the service of these key employees can cause financial strain on a business from lost sales or additional cost to find and train a replacement. Key person insurance can provide a financial cushion with cost-effective liquidity for replacing employees who critically impact the value of the business. Life Insurance used to fund key person insurance: The business is the owner and beneficiary of a life insurance policy that insures a key employee. Then, upon an unexpected death, the business receives the death proceeds, generally income tax-free. EMPLOYER SALES TIP Premium death benefit Use the Key Person Calculator to refine the need and generate a quote. GO TO: m.principal.com/keyperson Insurance policy ON key employee APPROACH CONSULT Common Profile Companies in most any industry of any size and of any type will generally have the need for key person insurance. XXWho are the difference makers in your business in areas such as operations, workflow, relationship management and sales? XXIf one of your key employees died or left for a competitor, would your business be as successful as it is today? TAKE ACTION 1 Use the Key Person Calculator and run an illustration OR submit a Key Person Request for Proposal: 2 Develop a plan to protect the business or retain key persons. 3 Check qualification using the Principal Accelerated Underwriting Checklist (BB11642C). 6

7 EXIT PLANNING Buy-Sell Agreements LEARN One of the most common things business owners need to consider is how to protect against events that may threaten the future of their business. A buy-sell agreement creates a market for the business when a co-owner dies or leaves. It also protects the remaining owners by preventing a disruptive or unqualified person from acquiring an interest in the business. Common Buy-Sell Agreement Options Importance of current business valuation Less than 10% of buy-sell agreements we review reflect a current fair market value of the business 3. An outdated valuation creates risk for all parties. Cross Purchase Entity Purchase One-Way Co-owners purchase departing owner s business interest Business purchases departing owner s business interest Key employee purchases departing owner s business interest. Exiting owner may not get fair value for their share Remaining owners may over-pay the exiting owner(s) Costly delays and arguments amongst owners may ensue APPROACH CONSULT Common Profile 4 Industries: Professional, scientific and technical services, manufacturing, construction, wholesale trade, finance and insurance Employees: 1-99 Business experience: 10+ years XXWhat is your business worth? XXWhom do you see running the business when you leave? Third-party? Key employee? Family member? XXDo you have a buy-sell agreement in place? Entity type: Corporation (S or C), partnership TAKE ACTION 1 Request a complimentary Informal Business Valuation 5 and/or Buy-Sell Review. 2 Submit an Exit Planning Request for Proposal. 3 Don t forget about Accelerated Underwriting for those who qualify. 3 Source: Review of 1,000 buy-sell reviews by the Principal Financial Group, January 1, 2011 December 31, In Q3 2013, the Principal Financial Group analyzed its BOES block of business customer data. Dunn & Bradstreet demographic data is also appended. 5 Buy-Sell Reviews and Informal Business Valuation Planning Reports are available for a variety of business types. Some prospects may present challenges, including: farms, nonprofit organizations, publicly traded companies, nonprofitable businesses, sole proprietors, real estate holding companies, financial services firms and new companies. 7

8 NQ SUPPLEMENTAL RETIREMENT Principal Executive Bonus Plus SM Accumulation phase Distribution phase Business owners want a simple way to recruit, reward, retain and LEARN retire key employees. The Principal offers executive benefits solutions that can help them accomplish that, including Principal Executive Bonus Plus. It provides a platform for employers to offer supplemental retirement income benefits to key employees on a tax-deductible basis. Organization Insurance policy Premium key employee Key employee uses life insurance cash values to supplement retirement income or provide survivor benefits. CASH VALUE TAXES key employee TAX-FREE DEATH BENEFIT Premium Insurance policy SURVIVORS Key benefits: Employees gain a retirement income source that, if properly structured, may provide distribution income tax-free in retirement. Employers have the opportunity to give additional contributions to employees to help them meet retirement goals. Business owners can protect their future using business dollars to help meet survivor needs. APPROACH CONSULT Common Profile Industries: professional, scientific and technical services; healthcare and social assistance Employees: high income earners $150,000 XXAre you looking for ways to retain and reward key employees? XXWould your key employees like to save more money on a taxadvantaged basis? Business experience: 10+ years Entity type: Corporations (S or C) TAKE ACTION 1 Use the Principal Executive Bonus Plus Request for Proposal. 2 Obtain a proposal from the Advanced Solutions team. 3 Deliver customized plan to client. 8

9 ESTATE Planning Principal IRA Legacy Plan SM LEARN Individual Retirement Accounts (IRAs) provide many benefits to clients during working years; however, distributions taken in retirement are subject to federal income tax and in some cases, estate tax. For clients who don t need retirement income from their IRA, the Principal IRA Legacy Plan offers an alternative to help minimize tax erosion and provide a potentially greater legacy to heirs or a charity using life insurance. IRA OWNER After-tax IRA distributions used to purchase life insurance LIFE policy Funding Principal IRA Legacy Plan Take distributions or RMDs Pays income tax on IRA distribution At death, tax-free death benefit IRA At death, remaining, taxable IRA assets Heirs APPROACH 30% of U.S. retirement assets are in IRAs 6 Common Profile 60+ years old $1 million+ of assets CONSULT In good health May or may not be taking required minimum distributions (RMDs) Desire to leave legacy to heirs or a charity XXWhat plans do you have for the money you take from your IRA? XXWould you like to potentially pay less in taxes and leave more for your heirs? XXIs there a special charity to which you d like to leave money? TAKE ACTION 1 Demonstrate to your client the value of the plan using the IRA Legacy Sample Proposal. 2 Complete an IRA Legacy Request for Proposal. 3 Present the customized IRA Legacy Plan proposal to the client Investment Company Fact Book, A Review of Trends and Activities in the U.S. Investment Company Industry, 54th edition. Includes all IRA types: IRA, SEP IRA, SAR-SEP and SIMPLE IRA. 9

10 PERSONAL PLANNING Diversified Life Strategy LEARN Use a Diversified Life Strategy to design customized life insurance solutions to cover all of a client s needs and provide flexibility for the future. The client allocates their total budgeted premium among two or more policies in order to diversify among product types and policy durations. Meet multiple protection needs Provide flexibility as needs change Enhance an overall financial portfolio APPROACH CONSULT Common Profile Individual or business owner Has multiple needs for life insurance May or may not have existing coverage Seeks to diversify risk within their financial portfolio Do you need temporary insurance coverage until your children are through college and your mortgage is paid off? Do you need permanent coverage for you and your spouse to protect each other? SALES TIP Life insurance diversification strategies: TAKE ACTION XXTerm + Permanent For low-cost protection, plus cash value accumulation XXTerm Layering Multiple term policies of varying lengths XXRisk Diversification Policies using different interest crediting strategies XXPersonal & Business Coverage Business owners and key executives often require both 1 Discuss with your clients the benefits of life insurance. 2 Use the calculator at lifeneeds to help better understand your clients needs. 3 Review the calculator results as a starting point for their life insurance plan. XXPolicy Review Identify additional coverage needed 10

11 Service and Support You Can Count On When you work with The Principal, we help position you for success with a variety of support, tools and resources to help you before, during and after the sale. Direct Access to Experienced Professionals Get consultative support and personalized service to help you achieve results. Advanced Solutions Talk to experienced attorneys, certified public accountants (CPAs) and senior consultants for advanced, custom case design. Dedicated Sales Support Leverage our team of wholesalers and sales consultants for your case development needs. Underwriters Work with our team of knowledgeable professionals committed to delivering fair and consistent decisions. Complimentary Services Business Market Administration (BMA) Get more service after the sale. With some carriers, plan administration is sourced to a third-party administrator, which adds costs. Our dedicated, in-house BMA team provides quality services for your clients, at no charge. XXList billing Receive consolidated payment reminders for all of the policies under the program. XXOnline access View information; policy owners may make policy changes or initiate service requests. XXOngoing support: Provide split dollar economic benefit or imputed interest reporting and 101(j) information, if applicable. Deliver retirement income re-projections. Business Planning Services Offer complimentary, value-add services providing important information to business owners regarding the value of their businesses and the impact that value can have on many aspects of their financial futures. XXInformal Business Valuation & Planning Report Uses five common valuation methods that satisfy financial requirements during life insurance underwriting process XXBuy-Sell Review Provides summary of any issues and recommendations regarding existing buy-sell agreement Providing these unique services to your business-owner clients and prospects can help open a variety of business case sales opportunities for you! Research answers to questions regarding the policies and/or program design. Monitor tax law changes that could impact the plan. Let s connect. Contact the National Sales Desk at , or your Life RVP. advisors.principal.com 11

12 we ll give you an edge Principal National Life insurance Company and Principal Life Insurance Company, Des Moines, Iowa , Insurance products from the Principal Financial Group are issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Company. Principal Funds, Inc., is distributed by Principal Funds Distributor, Inc. Securities offered through Princor Financial Services Corporation, , Member SIPC. Principal Trust Company SM is a trade name of Delaware Charter Guarantee & Trust Co. Principal National, Principal Life, Princor, Principal Funds Distributor and Principal Trust are members of the Principal Financial Group, Des Moines, IA For financial professional use only. Not for distribution to the public. Not FDIC or NCUA insured May lose value Not a deposit No bank or credit union guarantee Not insured by any Federal government agency BB /2016 t uh