3Rs
Marketing 3Rs from page 11
We are in the process of hiring additional staff so we ’ re prepared to provide even more sales support than we have right now .
Lacey-Gray
Playing Catchup
“ As you know , there are clients who ‘ put off until tomorrow what they should do today .’ This usually happens with business owners who are heavily involved in the day-to-day operations of their companies ’” explains Lacey-Gray . “ They are often busy putting profits back into their company . When they enter their mid-40s and 50s , they realize they have saved very little for their own future retirement income .
“ We have a solution for this . What we really want these clients to think about is how they will play catch-up at this age . They might even be in their late 50s by the time they decide to get serious about their own retirement . They may think that the sale of their own company will be their retirement income source , but that may not be the case . Too many times businesses either lose their value or become obsolete and there is no buyer out there to give them what they think their business is worth . A good solution , of course , is an overfunded life insurance policy , which will either provide enough income value , potentially tax free , or a death benefit that will provide future income to their spouse or family members just in case the insured dies too soon .
Creating positive outcome
“ How about looking at a solution that has a three-to-one ratio for leverage to satisfy this dilemma ? We recommend a five-year payment plan into an indexed universal life policy where a bank lender matches those amounts . In addition , for the next five years , the bank pays both parts of the premium , thereby replacing the client ’ s portion with additional funding from the bank . That ’ s right ! The second five years , the client pays nothing ! At the end of ten years , the premium funding stops and an additional five years of compounding creates a very significant outcome .
“ In the fifteenth year , the client pays back the loan and the net result of the compounding gains provides a very attractive income stream for the client to take when they are ready to do so . Plus , the client has also been insured against early death and impairment .
Plans for professionals
“ The bank loves these opportunities ,” she continued , “ because the life policy itself fulfills the bank ’ s need for collateral in the event of early policy termination . We , therefore , do not need to provide audited financials , etc . The plan design requires household income of $ 100,000 + to satisfy the arrangement . Of course , we have a third-party administrator that provides the documents and important details along with the lenders that bid on these policy opportunities .
“ The opportunities in marketing this concept to professionals like physicians , dentists , accountants , and attorneys — as well as small business owners — is tremendous and a market in which many brokers want to be involved . This sales idea has been building momentum as our economic environment is opening the door to reviews and creative planning techniques . Clients love the idea of using ‘ OPM ’….. other people ’ s money !”
When asked about her outlook for next year in light of today ’ s economic challenges , Lacey-Gray stated , “ Over the years I have found history repeats itself . Therefore , I expect a continuance of increasing sales activity . We are in the process of hiring additional staff so we ’ re prepared to provide even more sales support than we have right now . We are also running educational webinars and live meetings to help agents stay up-to-date on the new creative product designs that have been coming out recently . We all need to be on top of our game to help consumers get the right solutions , especially during times of uncertainty !”
This is not a one and done game . The sales process is a relationship game , and you must bring value .
Berson
Marketing 3Rs continued on page 14
12 Perspectives Q4 2022