TERM LIFE CHAMPIONS AN AGENT GUIDE

Transcription

1 TERM LIFE CHAMPIONS AN AGENT GUIDE An Outline of the Sales Process and Miscellaneous Considerations Current statistics indicate that: 60% of the families earning between $50,000 and $250,000 each year have NO individual life insurance Of those families that do own individual life insurance, 33% know they do not have enough The market is HUGE. The Term Life Champions system is EASY. It is a nice match for a capable agent! There are 5 ways that the Term Life Champions approach can help you grow your business. 1. Get paid faster, often in two weeks or less 2. Get more cases placed placement ratios increase 7% using Term Life Champions 3. Stay in control with full access to case tracking using a Home Office website 4. Full compensation; while the Home Office representative does most of the work, you still receive full commissions 5. More clients the easier process makes it profitable to take small cases, even in faraway places, cases you might otherwise not be able to profitably write THE SALES PROCESS 1. Determining the Need, the 1 page Life Insurance Needs Analysis The best way is to have the client complete a 1 page life insurance needs analysis. In this way, the client can determine the amount the client feels is required. Depending upon the relationship you have with the client, the life insurance needs analysis may be mailed to the client for completion or completed in your office, the client s home or anywhere else that you and the client deem reasonable.

2 NOTE: The one thing you want to ask BEFORE the client is given the 1 page life insurance needs analysis is this: How much life insurance does the client already have? We strongly suggest that the answer should separate INVIVDUALLY OWNED life insurance and GROUP LIFE INSURANCE. Remember that unless your client is the employer, the client cannot control the availability of a group plan. ACTION STEP: Enter the client s amount of personally owned life insurance and Group Insurance on LINE 11 on the 1 page life insurance needs analysis BEFORE giving the form to the client. 2. Determining Premium, the Bracketing Approach Ask the client if the client can afford a few dollars a month if that would meet the life insurance needs the client identified. The answer should be Yes. Then ask the client if $1,000 a month would be OK. The answer is normally, but not always, No. So somewhere between a few dollars and $1,000 is an acceptable monthly premium number. That number needs to be determined by the client. Once done, DO NOT attempt to up sell this number. Insurance that is not in force at death is of no value and that will be the case if the client cannot afford the premiums. If you prefer, you may use a weekly or even an annual number. ACTION STEP: Write the premium number somewhere clearly visible on the 1 page life insurance needs analysis form BEFORE giving the life insurance needs analysis form to the client. You now know the client s self determined coverage amount, the amount of life insurance the client already has and the amount in premium the client feels able to pay. 3. Closing the Sale Ask the client a closing question. If the client s spouse is involved, and it is generally much better if that is so, then a good question is: I assume you would like (name of spouse) to be the beneficiary? You can use (name of spouse and children or anything else that seems logical.) You will know best after you have spent some time with the client. ACTION STEP: Once you have asked the closing question, STOP TALKING and wait for a response.

3 4. Paper or Plastic? If you are completing the Life Quick Request Form in front of the client, then ask the client the questions as you go and, once completed, hit send and the application request will go to the carrier. However, if you do not have a computer with you, or even if you prefer to do so, then print and use a Life Quick Request Worksheet (form number LQR) and complete that paper work with the client. Once you return to your office, you can enter the information into your computer and send to the carrier. You can do this either way because the client DOES NOT sign the Life Quick Request Form. This method even allows for phone applications from clients you already know but may not live locally. ACTION STEP: NONE. The carrier representative will call the client within 24 hours of receiving the Life Quick Request. The carrier representative will arrange for a paramedical exam. The initial premium will be collected at time of examination. After you have made the sale, your next step will be to deliver the policy. NOTE: If the policy is going to be paid monthly EFT, then two months premium will be the initial deduction. Therefore, leave the client a copy of What Happens Next (form number 48437e) a carrier publication that tells the client what to expect during the telephone interview. If the client is prepared, the calls will be about 30 minutes. All forms are available at the carrier website. This form also covers the fact that two months premium are the initial deduction for monthly EFT. NOTE: Sometimes, the caller ID on the client s phone shows Unknown. There are also some people who are very busy. For these and other reasons, it may be that the client would rather call the fulfillment/paramedical center. Maybe they do not want to wait 24 hours. The phone number is Monday through Thursday 7A.M. 11 P.M.; Friday 7A.M. 9 P.M. and Saturday 8 A.M. 4P.M. All times are Mountain Time. NOTE: It may come to pass that while the Home Office Representatives reach most applicants within hours, they cannot reach your client. If that happens, as your client may be on vacation, not home when called, has a new cell number or for whatever reason, you will be notified.

4 5. An Additional Benefit Term Life Champions also promotes Prescription Champions. This provides you and your clients FREE drug discount cards that you can use when prospecting or to simply thank your customers for their business. These are well received. 6. How Do I Get Started? The easiest way is to go to Term Life Champions and register for an account. During the registration process, you will need to enter a Customer Code. Customer Codes will be provided by your up line agency or Term Life Champions. 7. Contracting Contracting is what you would expect it to be. However, the contracting could take longer than policy issue. In a perfect world, if you feel this Term Life Champions process is something that you are going to use, and you are not contracted with the carrier, then complete the contracting paperwork and return to Term Life Champions for processing. In that way, you will have an agent number for your Life Quick Request Forms. However, if you need to write a case before the carrier appointment process is completed, then use your Social Security number as the agent code number. Since the Life Quick Request forms are not part of the policy, your clients will not receive your Social Security number but it will allow the carrier to connect the policy to your contracting application and assures that you are the agent that gets paid. GLIC is the contract code for Genworth Life Insurance Company, a NON_NEW YORK carrier. In New York, there is Genworth Life Insurance Company of New York (GLICNY). The Term Life Champions system works with either carrier but if you do business inside and outside New York, you will need to be appointed with both carriers. ACTION STEP: Send your contracting paperwork to Term Life Champions as soon as you decide to pursue a Term Life Champions relationship. Do not wait until you sell your first policy it will delay policy issue.

5 8. The Insurance Policy Term Life Champions approach promotes the 20 Year Colony Term UL policy. The carrier offers 10, 15, 20 and 30 year term periods. They are all available to your client using the same online submission process. Issue ages for each guaranteed period begin at age zero. The 10 year term is issued to age 85, the 15 year to age 80, the 20 to age 75 and the 30 to age 65. A few odds and ends: These policies are particularly attractive under $1,000,000 in face amount. They are also attractive for non tobacco users or when the client is rated table 4 or less. The minimum issue is $50,000. We suggest always quoting standard rates. If the carrier can issue at a better rate, they will automatically do so. It is easier to go back to your client and tell them their rates are better than applied for. If the client is rated, then asking for a small increase in premium (from standard to a table rating) is a less difficult conversation than going all the way from preferred to a table rating. These policies can be kept in force beyond the guarantee period, all the way to age 121. However, premiums will increase. The LQR process also allows you to select the Colony Lifelong UL product. This product is issued 0 80 at $100,000 or more and coverage can be designed to last until 121. The focus of this product is death benefit and not cash values. Additionally, and unless a Section 1035 exchange is involved, a signed illustration is not required. This product should be considered when a coverage duration of longer than the maximum coverage duration available using Colony Term UL is desired. All of the simplicity and benefits of the LQR process you would use when selling Colony Term UL apply. ACTION STEP: The client has a complete choice of face amount, premium and length of coverage. No matter what combination the client selects, the process is the same, a few questions, the click of a mouse and the carrier does the rest. 9. Home Office Representative Processing The term request was submitted quoting standard rates. However, the Home Office representative determines that the policy can be issued preferred. They will automatically do so. But what if the policy rate is worse than standard? Assuming the customer is insurable; the Home Office representative will calculate a premium rate and send the information to the agent. The agent can determine if the client wishes to accept the offer, modify the face amount or decline the offer. Upon receipt of a written request, the Home Office representative will share the information that resulted in their offer so that the agent may have the opportunity to shop the case with additional carriers. NOTE: If the Home Office underwriting department finds that it needs some additional information concerning your client, you will be notified so that you can contact your client.

6 10. Policy Delivery Once issued, policies are mailed directly to you, the agent. While Attending Physician Statements (APS) can, if required, take time to obtain as the doctor s office may be busy, the average issue time is two weeks. ACTION STEP: Any time 24/7 you wish to check the status of your case, you may view that status on the carrier s website. 11. Summary The average face amount using the Term Life Champions system is $400,000. The average age is 45. The average premium is $ on a 20 year policy. Since the placement rate on this business is higher than average, your income will increase even if you make the same number of sales. Could you make a phone call to an existing client, one 1,000 miles away and sell a term policy? Certainly however, that is usually when the work starts: taking an application, arranging an exam, collecting the premium and what about witnessing the client s signature? With the Term Life Champions system, the client determines how much insurance the client needs, the length of time it is needed and the amount of premium the client is willing to pay. You ask a few questions but you usually don t have to ask those tough financial and medical questions and the carrier representative does all the processing chores. 12. The Genworth Life Quick Request (LQR) Process The LQR Increases your productivity as the LQR team contacts your clients and completes the application and related paperwork. The LQR process shortens policy issue time as it reduces the requests for additional information and additional medical information. The LQR process prevents embarrassing situations where an agent s friend or a neighbor needs to disclose medical information. What is the LQR Process? The agent submits a simple LQR worksheet online. The LQR system immediately assigns a policy number and then sends the agent an verifying receipt of the LQR request including the information sent to LQR by the agent plus the policy (case) number.

7 The Exam One team s goal is contact with the customer for a telephone interview within 24 hours. If client is not reached in first 24 hours*, follow ups every 26 hours up to 7 days If the client cannot be contacted within 7 days, the agent will receive notice. The agent can then contact the client to determine next steps. Your client can always contact Exam One and set up an appointment for completion of the application. Exam One Hours of operation: Monday Thursday from 7:00 AM 11:00 PM; Friday from 7:00 AM 9:00 PM; Saturday from 7:00 AM 4:00 PM The contact phone number is: Activities of Exam One Complete Part 1 and Part 2 of the application and any supplemental forms required Obtain voice authorizations for medical records Schedule paramedical appointment APS is ordered Examiner delivers completed application package to applicant for signature except in NC & TX where they are sent by Fed X. Examiner performs paramedical exam and returns completed application package to HO including TIAA, if appropriate, and EFT or charge card authorization. LQR/Agent Communication Process Agent receives receipt for LQR submission Agent is notified if client cannot be contacted To check on the status of your case, see Genworth s website (New agents must register to obtain username and password) Policy Delivery Once issued, the policy will be sent to the agent for delivery.

8 The Term Life Champions system is EASY for YOU and logical for the client. REMEMBER, SYSTEMS: S ave Y ou S tress T ime E nergy and M oney ACTION STEP: Contact Term Life Champions ASAP [email protected]