Life Insurance Review 1 Reviewing Life Insurance Policies

Life Insurance Review 1

Reviewing Life Insurance Policies Your customers should look to you when it comes to their life insurance coverage. After all, you’re the expert. n So when you take the initiative and review your customers’ policies every one to two years, it’s an opportunity for you to build loyalty and increase your business. n 2

What you gain n n A chance to prove your interest and knowledge to your customers Loyalty that can last for years – even to the next generation The opportunity to build your business with existing customers Cross-selling opportunities Explicit and enthusiastic referrals 3

What your customers gain The chance to consider the changes in their lives and financial situations n The opportunity to adjust their life insurance coverage, or opt to keep their current policy n Peace of mind, knowing they have proper policies that will take care of their loved ones n 4

Building on your current customer base can be simple n During these economic times, it’s easy for people to overlook the purchase of new life insurance polices. However, people who already own policies understand that fixed life insurance is still a solid, stable investment. That’s why working with your current customers is an essential part of building your business. 5

Ten most common life insurance mistakes n n n The insured’s estate is named as beneficiary Failure to name at least two “backup” beneficiaries Failed to check policies at least every 3 years Product does not match the problem The amount of coverage is inadequate for current goals Policy proceeds are payable outright to minor children or grandchildren n n All the insurance is owned by the insured No investigation to see if the insured’s business can provide insurance on a more cost- or tax-efficient basis Forgot that term insurance (including group term coverage) will self-terminate or become prohibitively expensive to carry Insurance has been purchased or treated as a commodity 6

Your plan is already in place n A life insurance review is simple when you follow these four steps ¨ Get in touch ¨ Have a conversation ¨ Evaluate and analyze ¨ Present meaningful solutions 7

Rocky Mountain Insurance Network’s Program We have developed a “Professional Life Insurance Management Program” n This program was set up to make the policy review process as easy as possible for you and your clients n We will assist you in completing the policy review on your clients n 8

Professional Life Insurance Management Program includes: n n Pre-approach letter – for you to send to your clients Policy Fact Finder – form used to gather current policy information Broker Authorization – letter signed by client giving you and RMIN authorization to obtain information on current in force policy Complete Policy Review – form detailing entire review process and our recommendations 9

Your role vs. RMIN n Your role ¨ ¨ ¨ Get in touch Have a conversation Complete our Policy Fact Finder form Obtain a Broker Authorization Send above information to RMIN n Our role After receiving the Policy Fact Finder and Broker Authorization, we will request an in force ledger from current carrier ¨ Do a Complete Policy Review and make a recommendation for you to present to your client ¨ 10

Step 1 – Getting in touch If you have a close, personal relationship, you could just make a simple phone call and set up an appointment n A pre-approach letter that you can personalize to your clients n 11

Step 2 – Have a conversation n What’s going on in your customer’s life? Whethere have been subtle changes or major ones, it’s easy for people to overlook their life insurance policies as their situations change ¨ ¨ ¨ Income – promoted, laid off, changed job, retired Family – new birth or adoption, grandchildren, elderly parent Home – new home, paid off mortgage Martial status – marriage, divorce Heath – weight loss, quit smoking Inflation – if 10, 15 or 20 years old, may no longer be adequate 12

Other conversations that may be helpful n Young customers ¨ n Middle-aged customers ¨ n Are they paying too much for adequate protection for their families? Should they look at polices that will help them build cash value? Business owners ¨ n Many of them have term insurance, but should they consider a longterm policy? Are they using their life insurance effectively, by using it to handle continuation plans, benefit plans or key person coverage? Trustees ¨ Are they exposing themselves to unnecessary liability and legal risk by managing policies that are not their own? 13

During this conversation Complete a Policy Fact Finder form on your client n Complete a Broker Authorization letter with your client n Send this information to RMIN n 14

Reasons to consider maintaining the status quo n n n n New contestable period Existing loans New acquisitions costs New suicide period Guaranteed crediting rates Surrender period Change for the worst in underwriting status 15

Reasons to consider exchanging a policy Secondary guarantees – universal life products with death benefit guarantees n Lower mortality rates – all products are now on 2001 CSO tables n More competitive plans n Preferred/Special underwriting n Extended maturity dates n 16

Step 3 – Evaluate and analyze n Rocky Mountain Insurance Network will ¨ Obtain any information needed on the current in force policies ¨ Run current illustrations and compare all options ¨ Do a Complete Policy Review and make appropriate recommendations ¨ Provide you with the details and information you need to follow up with your client 17

Step 4 – Present meaningful solutions Now, you know your customer’s life insurance coverage inside and out n Your recommendation may be as simple as changing a beneficiary n Or, through the Complete Policy Review completed by RMIN, you now have better options to present to your client for them to consider n 18

If new policy is recommended RMIN will provide you with all applications, etc. needed to get started n RMIN will manage the case from beginning to end n RMIN pays out the highest street comp available – no broker haircut on fixed business and your appointment is direct with the carrier!! n 19

We’re only a phone call away Call us today at (800) 846 -3997 to get started n Visit our web site at www. rmininsurance. com today. n “In Business For Yourself, Not By Yourself” n 20