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A Fresh Approach to Building Your Business

A Fresh Approach to Building Your Business. Mark Stueven National Sales Director. CRB 175 0713. Sales Opportunities. Sales Opportunities. Young Families. Small Business Owners . Want to protect their business from unexpected events Loss of key employee

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A Fresh Approach to Building Your Business

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  1. A Fresh Approach to Building Your Business Mark StuevenNational Sales Director CRB 175 0713

  2. Sales Opportunities

  3. Sales Opportunities Young Families Small Business Owners • Want to protect their business from unexpected events • Loss of key employee • Cost associated with employee turnover • Families with children • Working couples • Single-income households • Single-parent households

  4. Income Protection Option (IPO)

  5. How much life insurance do your clients need? • LIMRA 2011: The number of households that are uninsured or underinsured is at a 50-year high

  6. Reasons for Buying Life InsuranceBuyers vs. Nonbuyers 2010 Trends in the United States, LIMRA Fact Book MarketTrends

  7. Effective Fact Finding: 3 Questions FOCUS ON LOVED ONES 3 • Would you like a lump sum set aside for college expenses, for your kids, retirement for your spouse or a wedding for your daughter? 2 1 If you die tomorrow, how much is needed to satisfy outstanding debt and any other final expenses? • What is the monthly income stream required for your spouse to continue to run the household?

  8. Guaranteed Income Strategy:Income Protection Option (IPO) 3 • Would you like a lump sum set aside for college expenses, for your kids, retirement for your spouse or a wedding for your daughter? 2 1 If you die tomorrow, how much is needed to satisfy outstanding debt and any other final expenses? • What is the monthly income stream required for your spouse to continue to run the household? Guaranteed Monthly Income Stream Initial Lump Sum Final Lump Sum 5 – 25 years / $100 min. $10,000 min. $10,000 min.

  9. Guaranteed Income Strategy:Income Protection Option (IPO) • Available at no additional premium cost • May include multiple beneficiaries • Can be modified prior to the death of the insured • A portion of each monthly payment and a portion of the final lump sum are reportable as interest income Guaranteed Monthly Income Stream Initial Lump Sum Final Lump Sum 5 – 25 years / $100 min. $10,000 min. $10,000 min.

  10. Income Protection Option Scenario Client Profile • John, 37, married to Ann, 35 • 2 children aged 10 and 8 • John is a business manager and Ann is a nurse

  11. Income Protection Option Scenario Concerns • Will his family have enough to help cover living expenses if something happens to him? • How can he help ensure the financial security of his spouse and kids for the future?

  12. Solution: Trendsetter®Super with the IPO Trendsetter® Super policy on John with the IPO* • Monthly Premium: $36.90 • Total Face Amount: $446,025 • Total Income Protection Option Payments: $550,000 *Trendsetter Super 20, Male, 37, Preferred, Nonsmoker

  13. Income Protection Option • Economical • Simple • Gives Control to Policy Owner • Death benefit payout options • Flexible

  14. IPO Talking Points Producer Presents Benefits to Client: • “Let’s build a family protection plan.” • “With all the economic uncertainty, we can create a guaranteed income stream for your family.” • “What could your loved ones do with an extra $500/mo? $1000? $2000?”

  15. Available Marketing Tools:Income Protection Option (IPO) IPO on TransWare®Flyer IPO Consumer Brochure IPO Consumer Flyer IPO Calculator on iPad App IPO Calculator on Mobile App http://m.lifesales.transamerica.com

  16. Small Business Triple Play

  17. Business Owners:What is at stake? • Number of businesses in the U.S. is 5.7 million • 90% are small businesses (fewer than 20 employees) Small Businesses 90% Source: 2010 County Business Patterns http://www.census.gov/econ/susb/

  18. Challenges for Businesses • Decreased unemployment is increasing voluntary turnover • Workers have more career options Small Businesses 80% PWC Saratoga Human Capital Effectiveness

  19. Employee Turnover • Wage and salary workers = 4.6 years of median tenure1 • 75% of an organization’s top performers leave the company within 3 years2 • Replacement costs range from60% to 200% of an employee’sannual salary3 1US Dept. of Labor: Bureau of Labor Statistics, Employee Tenure Summary released September 2012. 2http://www.forbes.com/sites/danschawbel/2011/11/22/whos-at-fault-for-high-gen-y-turnover/2/ 3Society for Human Resources Management, Executive Brief: Differences in Employee Turnover Across Key Industries.

  20. Target Market Small Businesses Who Want: • To retain key employees • To select who benefits • Little to no administration costs • Tax deductions

  21. Small Business Triple Play Employee Benefits • Income replacement 1 • Safety net 2 • Long term care protection 3

  22. Small Business Triple Play TransACE® with the LTC Rider • Income replacement 1 • Safety net 2 • Long term care protection 3

  23. Small Business Triple Play Example InWorks, Inc. • Computer repair business George, Head of IT • InWorks’ most valuable employee

  24. Small Business Triple Play Example Income Replacement Long Term Care Protection Safety Net $6,500/mo for 15 yearsor$5,000/month for 20 yearsor $4,000/month for 25 years $158,865in year 15or$211,820in year 20 or anytime after year 25 Up to face amountMaximum $1M in benefits • $211,820 available at retirement (age 65) Up to face amount of $907,089 • $5,000/month for 20 years Deciding on Benefits:

  25. Small Business Triple Play InWorks, Inc. Annual Premium TransACE®with the LTC Rider Annual Bonus TransACE® George recognizes income During Working Years

  26. Small Business Triple Play: IPO Income Protection Option $5,000/month for 20 years George’s Family George TransACE®with the LTC Rider Income Replacement If George Passes Away

  27. Small Business Triple Play: MSE MultiFlex Surrender Endorsement $211,820 TransACE®with the LTC Rider George Safety Net At Retirement - age 65 (year 20)

  28. Small Business Triple Play: LTC Rider Long Term Care Benefits TransACE®with the LTC Rider George Long Term Care Protection Throughout his Lifetime

  29. Small Business Triple Play Benefits Retain Employee in Competitive Environment Tax Deduction Valuable Benefit to Employee Employee Income Replacement Safety Net Long Term Care Protection Small Business

  30. A Fresh Approach to Building Your Business • Income Protection Option • A sales tool that provides families with guaranteed monthly income replacement. • Small Business Triple Play • A unique solution using life insurance to solve the challenges of employee retention facing business owners.

  31. This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here. • Trendsetter® Super 20 (Policy Form No. 1-304 11-107) is a term life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids IA 52499. Premiums increase annually beginning in year 21 for the 20-year policy. Policy forms and numbers may vary, and this policy may not be available in all jurisdictions. Insurance eligibility and premiums are subject to underwriting. • TransACE® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form No. ICC12 UL07 or UL07 (CVAT), Long Term Care Rider Form No. ICC 12 LTCR02 or LTCR02. Policy and rider form and number may vary and this policy and rider may not be available in all jurisdictions. • Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. • Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects. • Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of July 2013. CRB 175 0713

  32. Thank you!

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