Agent Fast Start Program

1. Agent Fast Start Program Marketing And Activity Plan

2. Why People Need The Products We Sell

3. Only 61 percent of adult Americans have life insurance protection, a decline from 70 percent in 1984. Only 41 percent of adult Americans have individual life insurance. Many rely on group insurance, leaving them vulnerable if they lose a job. *Facts from LIMRA International for Life Insurance Awareness Month (LIAM) Millions of Americans have no life insurance coverage.

4. The average life insurance need is about $459,000, (12 times the average income) but the average amount of life insurance owned is $126,000. Therefore, the average underinsurance is more than $300,000. *Facts from LIMRA International for Life Insurance Awareness Month (LIAM) Most people who have insurance coverage don't have enough.

5. Some 45 percent of widows and 37 percent of widowers say their spouse was inadequately insured. One to two years after the death, half the widows and one third of the widowers are just getting by financially. On average, widows (who receive life insurance proceeds) receive about three times the household income from all life insurance proceeds, while widowers receive one year of household income. *Facts from LIMRA International for Life Insurance Awareness Month (LIAM) People who die prematurely with inadequate life insurance coverage create a financial burden on the surviving family.

6. Because households are underinsured, there is not enough coverage to materially improve the finances of the deceased's household. Some 13 percent would immediately have trouble meeting everyday living expenses. Another 25 percent would have difficulty keeping up with expenses after several months. *Facts from LIMRA International for Life Insurance Awareness Month (LIAM) Nearly half the population seems inadequately prepared if the primary breadwinner were to die tomorrow.

7. Widows and widowers indicate an average period of four to five years before their financial circumstances return to what they were at the time of their spouse’s death. Two thirds of spouses who do receive life insurance benefits receive less than three times the annual income of the deceased. Average amounts of coverage for those having life insurance is about three times their income. That’s less than the four to five years needed for recovery. *Facts from LIMRA International for Life Insurance Awareness Month (LIAM) It takes years to recover economically from the death of a spouse.

8. Despite evidence of being underinsured, only 29 percent of households feel they need more life insurance coverage. Even more affluent households (>$100,000 household income) lack sufficient life insurance, yet say they have sufficient coverage. In the last two years, 11 percent of American households shopped for life insurance but only 8 percent bought - about 890,000 households out of 111 million. *Facts from LIMRA International for Life Insurance Awareness Month (LIAM) Large numbers of Americans don't recognize their need for life insurance coverage

9. Agents are seen as more useful than the Internet, books and magazines, or TV and radio programs. Of households that shop for life insurance, 45 percent never have had a Needs Analysis done to help them determine how much life insurance they need. Consequently 53 percent of shoppers say they have difficulty determining how much life insurance to buy. *Facts from LIMRA International for Life Insurance Awareness Month (LIAM) Life insurance Agents are seen as the most useful source of information when buying life insurance.

10. Whole Life vs. Term Life Peak Earnings & Asset Accumulation Debt Reduction Children Grandchildren Marriage/ First Home Term Life College / Work Retirement & Wealth Transfer Whole Life Life Begins Life Ends

11. Individual 38 million uninsured working adults (18-64) 68 million U.S. citizens have no life insurance coverage Worksite In 2000, 68% of companies with 3-199 employees offered health benefits In 2007, 58% of companies with 3-199 employees offered the same, a 10% reduction. Retiree Largest Wealth Transfer – Taxation at its highest Concerned about asset preservation Overview - Market *Facts from LIMRA International for Life Insurance Awareness Month (LIAM)

12. Marketing Plan

13. Marketing the Liberty National Way Get in All Houses, Deliver Introductory Offer Get Minimum 20+ Sponsorships “Realizing Your Need” Video Customer Survey, Listen to Critical Last Question Based on Last Question Answer, Get to One of 5 Basic Needs, Selling One or More of Entire Portfolio of Products E-App Close Repeat Process Monthly Income Replacement Presentation Supplemental Health Presentation Final ExpensePresentation Mortgage Presentation Education Presentation

14. Laptop Sales Make it Easier • Laptop Video Sales Presentations in Conjunction with E-App: • Needs-based selling - what they need and WANT • Generates many more Sponsorships • When the process is followed, results in 75% closing rate, with to two to three times larger face amounts sold • Compliant, Standardized Presentations – minimizes inadvertent misrepresentation risks • Faster Training - easy to implement for new agents with no prior experience • 95+% of all apps now come via e-app - helps retain more producers for Producer Growth - immediate e-app transmission to Home Office results in quicker commissions, bonus and issue

15. Step 1. Play Introductory Offer Presentation: Giveaway to gain entry to home – Laptop Presentation offers $3000 Acc. Death for families or small businesses; ChildSafe Kit for young families; MedFacts for middle-aged; Memorial Guide for seniors, etc. 90% accept Offer Step 2. Get “Sponsorship” Referrals from end of Introductory Offer Presentation: At end of introductory offer presentation, Agent prompted to enter 10-50 “sponsorships.” 90% will agree to offer sponsorships Step 3. Play “Realizing Your Need” Video: Outlines meaningful risk and solution for a family losing a primary bread-winner – stimulates “what if” thinking by prospect to want to know more on their own situation. 90% will agree to see video Step 4. Complete “Customer Survey” for General Data: Gathers general data on family: name, address, spouse & children, phone, age, gender, employer, policy types in force (Final Expense, Mortgage, Monthly Income Replacement, Education, Supplementary Health, etc.) Asks important question – Agent listens to answer to survey’s last question and then plays proper needs-based Video for the product for A) what they NEED and as importantly, B) what they WANT. 80-90% agree to do survey Needs-Based Laptop Presentation:Presentation’s Sales Steps

16. Needs-Based Laptop Presentation:Presentation’s Sales Steps Step 5. Play “Needs-Presentation” on Specific Exposure, Based on Customer’s Concern, Gathering Specific Data: One of 5 basic need videos are played: Final Expense, Mortgage, Monthly Income Replacement, Education, Supplementary Health. Within each presentation, specific data is gathered regarding customer’s own exposure; based on this data, the presentation recommends a specific amount of insurance coverage, prompting them to then “See if You Qualify” or “Get a Quote”. 90% agree to see Needs Presentation Step 6. Write E-Application Quote & Underwriting 60% - 75% Closing Rate, resulting in 2-3 times more face amount sold Step 7. Go see Sponsorships and Repeat Process: Ideally, an Agent who fully understands this concept will attempt to give away 20 Introductory Offers per day, getting a minimum of 10 sponsorships on each, for a total of 200 per day. Obviously an Agent who is working this system successfully will run out of time to see all potential prospects.

17. * Insurance Marketing magazine, September 2008

18. Liberty Laptop Sales Presentation

19. Overview - Winning Game Plan • Marketing Plan – Laptop builds value • Introductory Offer – Give it away first! • Accident Ins. • Interim Term Rider • Child Safe Kit • MedFacts Kit • Memorial Guide • Savers Plus Discount Card • Sponsorships (20+) • “Realizing Your Needs” Video • Customer Survey • Product Recommendation • Submit E-application / Next Steps • Go contact sponsors and give it away

20. Overview - Winning Game Plan • Marketing Plan – Laptop builds value • Introductory Offer – Give it away first! • Accident Ins. • Interim Term Rider • Child Safe Kit • MedFacts Kit • Memorial Guide • Savers Plus Discount Card • Sponsorships (20+)

21. Marketing Plan

22. $3,000 Accidental Death Policy

23. Family Coverage – $10 per year payable at the end of the policy year $3,000 Accidental Death Benefit on the primary insured/spouse

24. $1,000 Accidental Death Benefit on each eligible child. Eligible Child is: “your children, legally adopted children, and stepchildren who are less than twenty-one years of age; are unmarried; and either live with you or are primarily dependent upon you for their support” The insurance on any child covered under this policy will terminate at the earlier of the termination date of the policy or the child’s 25th birthday

25. There is a limit of one policy per family • Outline of Coverage required in NV, OK, TX Issue ages, 18 through 68

26. In Florida, the Accidental Death Benefit on each eligible child is $2,000. • In Florida, the ADP is sold to customers at no cost for the first year. To do this, the Agent rebates their first year commission to pay the first year’s premium for the Insured . • “For each policy sold, a $10 first year commission is paid into the Agent’s commission account. Then, the $10 is deducted from the commission account and is used to pay the customer’s first year premium on the ADP policy.  As such, the net pay out to the agent is zero.” • Florida Only! Florida Only! Florida Only! Florida Only!

27. A-394 Application The policy is not underwritten. There are no health questions. The application must be completed in full and signed by the applicant and the agent Do not collect any money with the application The $10 annual premium is not payable until the END of each policy year

28. Application,continued … This policy can only be billed on an annual mode. It cannot be transferred to any other mode. This is a guaranteed issue policy so there are no commissions or bonuses. In Florida, Agent’s commission account will be debited $10 for the first year premium and the agent will receive a $10 commission for the first year premium.  As such, the net pay out to the agent is zero.

29. Introductory Offer – Cold Calls Marketing Plan

30. Introductory Offer – Sponsored Prospects Opening: Your Name & Company: Hello, is this (prospect)? My name is (your name) with Liberty National Life Insurance Company, do you know (Sponsor’s full name)? Body: Why you are calling: (Sponsor’s first Name) said he/she was a friend of yours, and he/she sponsored you for a (Accidental Death Policy). The good news is… he/she thought of you as a friend! Marketing Plan

31. Introductory Offer – Sponsored Prospects Close: Win the Appointment (Drop-off): I need to schedule a time to get you enrolled in the program but I need to ask you a few questions, OK? - Would it be more convenient for us to meet at you work or home? - What’s the address? - Is morning or afternoon typically best for you? Great, then I will meet you (Wednesday) morning / afternoon at (address USA). Look forward to meeting you, my name is (emphasize your name) and I’ll see you soon. Have a great day, goodbye. Marketing Plan

32. Marketing Ideas That Work!

33. Introductory Offers/ Sponsorships

34. Introductory Offers/Sponsorships • The Laptop Introductory Offer video builds value with the goal of generating additional sponsorships and a system to capture names.

35. Introductory Offers/Sponsorships • Liberty National Activity Plan – Week One • And the usual 5-7 sales @ 33%-50% closing utilizing the laptop

36. Introductory Offers/Sponsorships • Call sponsorships and multiply your efforts:

37. Introductory Offers/Sponsorships 90% of people accept the Introductory Offer. After all, who doesn’t want something for nothing?

38. Introductory Offers/Sponsorships • Ask good questions: • Bad – “Who else do you know that needs • insurance?”

39. Introductory Offers/Sponsorships • Ask good questions: • Good – “Who else do you know that has: • – a small business?” • – small children?” • – a new baby or is expecting a baby?” • – grandchildren?” • – nieces or nephews?”

40. Introductory Offers/Sponsorships • Ask good questions: • Good –“What about: • – neighbors?” • – relatives?” • – co-workers?” • – concerned parents or PTA groups?” • – Teachers and Principals?” • – owners of childcare businesses?”

41. Introductory Offers/Sponsorships Ask to put your number in their cell phone. Ask if they would allow their friends to have access to the introductory offer.

42. Introductory Offers/Sponsorships Sponsorships carry an implied endorsement. “Hello Mrs. Jones. Mrs. Smith asked me to call you and share one of our Introductory Offers with you.”

43. Introductory Offers/Sponsorships • When should you ask? The best time to ask is from the beginning!

44. Introductory Offers/Sponsorships When should you ask? Before you start selling insurance. And When you deliver the policy.

45. Introductory Offers/Sponsorships When should you ask? While saying thanks. When following up.

46. Introductory Offers/Sponsorships When should you ask? After each Introductory Offer module in the Laptop Sales Presentation. As a matter of fact, the laptop will do the work for you but you may have to help them along by asking them for their club, PTA or work, directory, etc.

47. Cold Calls

48. Cold Calls • When you don’t have the money or don’t want to spend the money to buy leads, cold calling works. • Use the phone or knock on doors.

49. Fairs

50. Fairs “The best thing I’ve ever done. State or regional fairs will average 300,000 people over several days and 1/3 of those will not have insurance. And as you know, almost everybody you talk to is uninsured or underinsured for life or health insurance. You are not going to get better numbers than that.”