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TRANSCRIPT
The NAIFA Silicon Valley
AdvisorGET STARTED. GET CONNECTED. GET INVOLVED!
May, 2013Vol. 76, No.8
www.naifasiliconvalley.org
Thank You Jack & Max Schmitz for Sponsoring this Month’s
Luncheon
NEXT MONTH’S MEETINGMay 16, 2013
Annual Meeting, Award Presentation, Table Topics
MONTHLY VENUESan Jose Airport Garden Hotel
1740 North First StreetSan Jose / 408.793.3976
8:00 a.m.Check-In / Networking / Breakfast
8:30 a.m.Business / Breakfast
9:00 a.m.Table Topics
NAIFA/SFSP Members: $15Non Members: $20
RESERVATIONS –[email protected]
(408) 275-1530
Our May Membership Breakfast is also our Annual Meeting and Awards Breakfast. We’ll elect our new officers for the coming year, present awards to our NAQ winners, and announce our Top Producer and New Agent of the Year win-ners. PLUS, we’ll offer a great Table Topics lineup for the discerning NAIFASV member who wishes to select the topic he or she wants to learn more about. A big meeting to be sure, so don’t miss it.
TABLE TOPICS Choose from the following topics.
Please indicate which topic you want to sit in on when you make your reservation so our presenter knows how much material he needs to bring with him.
1. Ideas on How to Position Long Term Care in Sales Process – Max Schmitz, Brokerage Manager for DI & LTC Insurance Services.
2. How to Find the Premium for Clients to Increase Permanent Life In-
surance Sales – Steve Rice, CLU, ChFC, CAP, Rice Financial Consulting, Inc., Past President of NAIFA Silicon Valley and NAIFA California and former Mayor of Los Gatos.
3. Creative Prospecting Ideas & Techniques – Jonathan Ebrahimoon, New York Life Insurance President’s Council agent and #1 in Life Insurance Case Rate for 2012 in the Silicon Valley office of New York Life.
4. Ideas to Help You Move into and/or Increase Your Investment and Planning Clients – Jesse Dogillo, CFP®, CLU, ChFC, founder of Bay Area Financial Advisers and current Silicon Valley SFSP President.
Please note that our meeting is tight this month so please be sure to arrive on time. To insure you get the topic you want to hear, please specify when you make your reservation to [email protected]
Table Topics: You Select the Topic You Want to
Learn More AboutElection of New Officers, NQA Awards
& Special Awards Presentations Highlight Annual Meeting
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We Thank Our 2012-2013 Association Sponsors
PLATINUM
GOLD
For information on sponsoring opportunitiesplease contact: Joel Velasquez
State Farm Insurance1779 Woodside Rd., Ste. 200
Redwood City, CA 94061Tel: (650) 260-2532 / Cell: (408)529-0566
Fax: (650) 851-4029Email: [email protected]
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Join the winning team of dedicated professional leaders of one of the most honored locals in the NAIFA federation.
If you would like to get involved in the NAIFA Silicon Valley Board or on one of its many committees during the coming 2012-13 Association year, please contact Mike Wecker at (408) 452-6055 or email: [email protected] or Don Pollard, CLU, ChFC, (408) 363-7342, email: [email protected]
Be one of those who make things happen. Help NAIFA Silicon Valley grow & accomplish its mission. Association life is more fun when you’re involved as a leader!
Silicon Valley
NAIFA Is More Fun When You’re Involved!
OUR VISION: NAIFA is the Association of choice that delivers unparalleled legislative advocacy and bottom line member benefits.
New Slate of Officers for 2013-14 ProposedIf you think you might have an
interest in working with any of the
above board members or volunteering some time to assist some of the many
NAIFA Silicon Valley’s Nominations Committee has recommended to the NAIFA Silicon Valley Board of Directors the following slate of officers for the 2013-14 year. They include:
President: Michael J. Wecker, CLU, ChFC, CLF, LUTCF, MSFS; President-Elect: Philip Lau; National Com-mitteeman: Don Pollard, CLU, ChFC; Immediate Past President: Jack O’Brien, Jr., LUTCF.
Nominated for continu-ing one year terms: Elaine Chen, Joel Velasquez, LUTCF, and Nani Nakamatsu.
committees (YAT, Programs, Non Dues Revenue, Sales Congress, etc.) please
contact Mike Wecker at (408) 452-6055.
This year’s Nominations Committee was chaired by Don Pollard, CLU, ChFC.
Also serving on the Committee was Jack O’Brien, LUTCF.
New Officers for 2013-14 May, 2013
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Program OverviewIf you’ve been looking for some clarity about what to tell your clients amid all the talk of tax increases,
spending cuts, sequestration, and the debt ceiling, you don’t want to miss this teleconference. In the first hour our expert panel looks at the most significant parts of the tax law and how they changed the environment forever. In the second hour, panelists focus on specific issues within the tax law, such as: valuation discounting ; life insurance and IRS Section 101(j) compliance; Crummey Notices; decanting trust agreements; charitable trusts; an expected Supreme Court ruling on the constitutionality of the Defense of Marriage Act as it relates to tax filings; Social Security Survivor payments, and other federal benefits. Get the information you need to work in the new fiscal environment and to advise clients on how to keep their financial goals on track. The program concludes with a Q&A session.
Attendees Will Learn:• How the new tax law changes planning for 2013• How to make new tax strategies part of a comprehensive financial plan• Portability - planning with or without it: which is better for your client?• Decanting - like a fine wine, a finely crafted trust sometimes needs to be decanted of “trust sediment”• Why planning is more important than ever under the current fiscal uncertainty
Who Should Attend?Estate planners, financial planners, investment advisors, insurance producers, and retirement counselors.
ModeratorLynne F. Stebbins, JD, AEP, CLU, ChFC is senior vice president, advanced planning, with Marsh Private Client Solutions. Lynne provides exemplary analysis of and product solutions for clients’ estate and business planning by working collaboratively with clients’ advisors, MMC colleagues, and other financial professionals.
Panelists:Terence B. Stanaland, JD, ChFC, CPA, is of counsel to the law firm Teague Rotenstreich Stanaland Fox & Holt, P.L.L.C. A frequent local and national lecturer and author on financial and tax topics, he regularly consults with insurance companies and brokerage houses on technical tax matters involving financial products and services.
Audrey Young, JD, LLM is the Washington national tax director for estate, gift and trust taxa-tion for McGladrey, LLP. In 12 years of private legal practice Audrey represented executors, trustees and corporate fiduciaries in all aspects of estate administration, including probate court litigation, preparation of income and estate and gift tax returns, federal and state audits and intra-family negotiations.
Wednesday, May 15, 2013Registration / Networking / 9:30 a.m.
10 a.m. – 12:10 p.m. / VTC New York Life,
1731 Technology Dr., Ste. 400, San JoseSFSP / NAIFA Members: FREE / Non Member Guests: $10
Email reservations to: [email protected]
A New Tax Code for a New Generation VTC Offered on May 15th
*CE Credits Available for the Following
Designations:
ICB CFP CIE CLE CPE PACE CPC
Enrolled Actuary
www.svsfsp.org
National Quality AwardThe NAIFA Quality Award provides advisors at any career stage, the opportunity to demonstrate a commitment to exceptional:
• Professionalism through education and earned designations • Production measured by performance metrics customized for each practice specialty • Adherence to the NAIFA code of ethics, and • Service to your industry association.
Advisors specializing in Life & Annuities, Financial Advising & Investments, Health & Employee Benefits, Multiline Sales or any combi-nation of these specialties have the opportunity to demonstrate the quality that is the mark of a true professional.
One award, the NAIFA Quality Award, reflects all the varied practice specialties of NAIFA members with a singular mark recognized by all. The NAIFA Quality Award is the mark of distinction to be recognized by not just your colleagues, but by your clients and com-panies. Be recognized for your commitment to excellence in service to your clients and your industry, in your pursuit of education and training and in your adherence to NAIFA’s Code of Ethics. It is time for all NAIFA members to display proudly the mark of NAIFA Quality.
If your practice spans more than one specialty area, the unique bonus mul tiplier credits allow you to build credit toward your production qualifications by combining production across specialties. A demonstrated commitment to professional education and as-sociation leadership also earns you qualification credit.
The NAIFA Quality Award is a continuation of the former NAIFA Industry Awards. Previous recipients of the NAIFA Industry Awards will carry over their years of achievement to the NAIFA Quality Award. Previous recipients of NAIFA’s National Quality Award and National Sales Achievement Award will find the NAIFA Quality Award Life Insurance and Annuities Qualification is comparable. Previous recipi-ents of NAIFA’s National Multiline Sales Award will find the NAIFA Quality Award Multiline Qualification is comparable.
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29th YearDarrell W. Shideler, CLU, ChFC, CFP®, LUTCF, LIFE, Thrivent Financial for Lutherans
6th YearDouglas B. Miller, LIFE, Northwestern Mutual Financial Network
3rd YearChristopher Andrews, LIFE, Northwestern Mutual Financial Network
First YearTodd Scott, LIFE, State Farm Insurance
Congratulations to Our Industry Award Winners May, 2013
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“Gathering Assets Under Management”
May, 2013MDRT Minute
If you are contemplating getting into wealth management or you already are gathering assets but want to do more, the single most significant key to success is a process you can communicate effectively. Your process needs to communicate how you do what you do — and then you need to do it.
Important QuestionsBefore you even have a chance to deal with a prospective cli-
ent, there are three key questions you need to ask and answer:
1. What do you currently have in the way of income producing assets to fund your retirement?
2. How much capital do you need to fund your retirement, now and in the future?
3. How long will your capital (hence your income) last?
The answer to all three questions starts with getting a copy of a client’s brokerage statement. When you can do this, you have a real prospect and an opportunity to convert their assets to AUM, assets under management — the salvation of the advisors in the years to come.
Importance of Aligning Risk and Return
It is important to obtain a copy of the prospective client’s investment portfolio in order to be able to find and demonstrate these two impor-tant metrics:
1. What is their investment policy?
2. What is the risk they are buying compared to the return this portfolio has historically produced?
Obviously, we cannot know the future. We know markets go up and markets go down. If your client cannot live with the fact their portfolio is going to fluctuate, they have no business being in the market. This is a key component to managing expectations.
Four Critical FactorsIn order to better understand the forces negatively impacting
portfolio performance for individuals, it is important to under-stand the four critical factors that determine portfolio returns:
1. Volatility — the amount of risk associated with the ups and
downs of the market2. Portfolio construction — how to build a portfolio to
achieve acceptable long-term results3. Expense and fees — wealth erosion from the cost of invest-
ing money in the market4. Taxes — controlling the inevitable cost of successThese four factors have important considerations that, if un-
derstood and managed properly, can set you apart from your peers in the money management world.
The ProcessAs previously stated, it is im-
portant to have a well-thought-out process to deliver a meaningful expe-rience and an excellent result.
1. Have every client complete a Risk Tolerance Questionnaire to de-termine the best portfolio to suit their long-term needs.
2. Examine their existing invest-ment policy statement by back-testing their current portfolio to yield important information.
3. Evaluate their current financial circumstances.
4. Present your options.5. Decide on next steps with your
client.The changing economic land-
scape makes clear the need for advisors to begin providing a broader array of services. In the end, this blueprint for money management will help you achieve your objectives — and the goals of your clients.
Guy Baker, MSFS, CLU, is a 43-year MDRT member with 35 Top
of the Table qualifications and an MDRT Foundation Excalibur Knight. He was MDRT President in 2010 and MDRT Founda-tion President in 2000. As managing director of Wealth Teams Solutions, Baker focuses on wealthy business owners. He was selected by Worth magazine as one of the top 250 planners in the United States and named a distinguished planner in 2006 by the National Association of Estate Planning Councils. Baker has written hundreds of articles for industry publications and is the author of five books. You may purchase his entire presenta-tion on www.mdrtpowercenter.org.
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Federal Legislative News May, 2013
The Center for Consumer Information and Insurance Oversight (CCIIO) posted FAQs to clarify the role agents, brokers, and web-brokers will serve in regards to health insurance marketplaces (exchanges). The guidance includes many NAIFA requests regarding agent compensation and access to issuer and exchange pathways. While the guidance mostly assists in clarifying roles for federally-facilitated exchanges (FF-exchanges) and state-federal partner-ship exchanges, it still leaves a number of questions unanswered with these exchanges, and only establishes certain minimum parameters and expectations for states with state-based exchanges.
Exchange Registration
In states where FF-exchanges or state-federal part-nership exchanges exist, agents and brokers seeking to operate in exchang-es must register with the Center for Medicare and Medicaid Services (CMS). An online registration pro-cess will be made available by CMS some-time during the summer of 2013. Agents and brokers will be required to provide simple identification information, undergo an exchange training course, and agree to comply with federal and state exchange laws. Federally-facilitated and partnership exchanges will not offer any state-specific training, and states will continue to govern their own licensing and continued educa-tion (CE) requirements.
Exchange Market PathwaysThere will be two main ways that
brokers and agents can interact with con-sumers in regards to exchanges – an issuer based pathway, and an exchange based pathway. These pathways will apply to both individual exchanges as well as Small
Business Health Options Program (SHOP) exchanges. On the issuer based pathway, agents and brokers will be redirected to the exchange website through their partner issuer, using exchange credentials obtained upon completion of exchange registration. Agents and brokers will then assist consumers with their exchange eligibility applications. Once the consumer is deemed qualified for the exchange, the agent and broker will be redirected back to the issuer’s website to assist with plan comparison, selection, and enrollment. For FF-exchanges and state-federal partner-ships, agents and brokers are not required to display or facilitate enrollment into all
Qualified Health Plans (QHP). On the exchange pathway, consum-
ers will login to the exchange website, and create an account. Agents and brokers can assist with the application process, but are prohibited from creating a consumer’s username and password. After a con-sumer completes their eligibility applica-tion, all QHPs will be displayed, and the agent or broker can assist the consumer in selecting a product. The consumer will also be required to enter an agent’s exchange credentials to indicate they were assisted with selection of a QHP.
Additional GuidanceHealth and Human Services (HHS) will
not be issuing commission rules or sched-ules for agents or brokers for FF-exchanges or state-partnership exchanges, though it does not plan on prohibiting states
from doing so in state-based exchanges. Though the CCIIO did iterate the point that HHS previously issued rules preventing issuers from offering different compensa-tion rates for QHPs sold inside or outside of exchanges.
Agents and brokers will be expected to direct any consumers found eligible for Medicaid or CHIP to appropriate state agencies, information which will be made available during exchange registration training. CCIIO also clarified that agents and brokers may continue to communi-cate with consumers after they have been enrolled in a QHP through the exchange, including possibly for the marketing of
additional products, so long as these communications are compliant with applicable laws and regulations. More-over, it assumes that agents and brokers will be the primary contacts for
employers in SHOP exchanges.The FAQ guidance included a number
of other rules defining the role of web-bro-kers and their interaction with exchanges. The full text of the guidance can be found here.
NAIFA continues to advocate for the implementation of a well-defined process and rules that are not cumbersome for agents and brokers in compliance. While this guidance is helpful in beginning to establish the role agents and brokers will have interacting with exchanges, much further clarification is needed. NAIFA will take steps to follow up with HHS and state governments for further explanation, and will closely monitor future guidance to ensure it does not overburden our mem-bers, or increase costs for agents and their clients.
CCIIO Issues Agents & Brokers Exchange Guidance
Legislative Alert May, 2013
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Oppose SB 161 Take Action!
RE: SB 161 (Hernandez) – OPPOSENAIFA-California is opposed to SB 161 authored by Senator Ed Hernandez, relating to stop-loss insurance
coverage. SB 161 seeks the elimination of the self-insuring option for small employers with 50 or fewer em-ployees.
For years, self-insuring, combined with stop-loss coverage for excessive and/or unexpected claims, has been the best and most affordable option for some small employers wanting to provide healthcare coverage for their employees. By eliminating this option, the bill creates an unreasonable barrier for small businesses look-ing to provide employee healthcare coverage at an affordable cost.
Under this proposal, it would become very difficult, if not impossible, for small employers wanting to self-insure to purchase stop-loss coverage. The bill would force small employers to take on significantly increased risk, which would be $65,000 of risk per employee before the stop-loss coverage would kick-in and reimburse the small employer for healthcare costs exceeding that amount.
The bill needs to be defeated and we need your help! To do so, please send a letter urging your Senator to vote ‘no’ on SB 161 when it is before them for consideration.
It is imperative that you send your letter as soon as possible since the bill will be heard by the Senate Ap-propriations Committee on May 13th. NAIFA California has a draft letter for you to personalize and electroni-cally send to your Senate representative using the NAIFA-California’s grassroots system. Past this link into your browser: http://www.capwiz.com/naifa/issues/alert/?alertid=62648926&type=TA
Thank you in advance for your assistance. We are hoping that our intense lobbying efforts, coupled with your grassroots efforts, will result in successfully defeating SB 161.
If you have any questions, please contact NAIFA-California Legislative Advocate Shari McHugh at (916) 930-1993 or [email protected]. PLEASE EMAIL OR WRITE YOUR STATE SENATOR (see below)
Sen. Jim Beall (District 15) Campbell, Cupertino, Los Gatos, Monte Sereno, San Jose & Saratoga)
4062 State Capitol, Sacramento, CA 95814 Tel: (916) 651-4015 / Fax: (916) 324-0283
2105 S. Bascom Avenue, Suite 154, Campbell, 95008 Tel: (408) 558-1295 E-Mail: [email protected]
Jerry Hill (District 13)(Includes: Hillsborough, Menlo Park, Millbrae, Pacifica, Portola Valley, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, Woodside, Los Altos, Los Altos Hills, Palo Alto, Mountain View & Sunnyvale.)
2080 Capitol Building, Sacramento, CA 95814Tel: (916) 651-4013 / Fax: (916) 323-4529
160 Town & Country Village, Palo Alto, CA 94301Tel: (650) 688-6384 / Fax: (650) 688-6370E-Mail: [email protected]
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Career Advancement ConferenceMay 21 - 22, 2013
Joseph W. Jordan “Living a Life of Significance”
Robert O. Smith, CLU, ChFC, J.D. NAIFA President “State of NAIFA”
Neil Crosby “Health Care Reform - How It Will Affect Employers & Agents”
Michael S. McCaffrey, CLTC, LUTCF and Shari McHugh “Who’s After Us Now?” Current Legislation Effecting Advisors and Brokers
Registration Forms Available Online at http://www.naifacalifornia.org/2013-Career_Advancement_Conference.htm
TUESDAY SPEAKERS
WEDNESDAY SALES EXPO SPEAKERS
New and Innovative Sales and Business Ideas from “Extraordinary Industry Giants”
Norman G. Levine, CLU, ChFC, CSA “Make More Money and Have More Fun”
Van E. Mueller, LUTCF “The Opportunity We’ve Been Waiting For”
Anthony Morris “Double Your (next) Quarter”
TUESDAY WORKSHOPS Christy Magorian, DIA
“Critical Illness: How to Open Doors to More Sales with Critical Illness Conversation”
Matthew D. Hudack CLU, ChFC Regional Director for John Hancock Financial Services
Lloyd Silver, CLU, ChFC, CFP® “How to Create an Endless Stream of Business Using Simple Marketing Tactics”
The Focus is Not on Association Business, But on Your Business’ “Bottom-Line”
REGISTRATION FEES
Registration includes: Breakfast, refreshment breaks, access to exhibit hall, speaker sessions, workshops, and lunch on Tuesday.
Cancellations and refund requests must be received in writing at NAIFA-California by 5:00 p.m., no later than May, 10, 2013. No refunds will be issued after Friday, May 10, 2013.
MEMBER $160
YAT MEMBER Under 40 years old
Or Less than 5 yrs in industry
$80
Non-Member $260
Spouse / Guest $100
NAIFA-California 1451 River Park Dr., Ste. 175 Sacramento, CA 95815 (916) 646-8600 Fax (916) 646-8130 [email protected]
Embassy Suites - South Anaheim
11767 Harbor Blvd. Garden Grove,
CA 92840 (714) 539-3300
WHERE
May Is DI Awareness Month May, 2013
Discussing DIBy Maxwell Schmitz
DI & LTC Insurance Services
sey Vonn, is an elite American skier and winner of the World Cup championship in 2008, 2009, 2010 and 2012 along with the gold in downhill at the 2010 Winter Olympics. She was training for the 2014 Olympics when she lost control and tore two ligaments and fractured her knee in February. There were no mental disorders reported in the aftermath of Lindsey’s crash, though we must be suspect to this possibility given her recent romantic tie to Tiger Woods. Vonn may miss the Olympics, costing her an undisclosed amount in en-dorsement deals in addition to the $25,000 honorarium provided by the US Olympic Committee for gold medal winners.
The purpose of these examples is to show that disability stories do not often attract the attention of mainstream media. You may have heard the headline, but no one stopped to think what might happen to them financially. Similarly, disabilities occur all around us but our attention is fleeting. The above instances are all inju-ries, which actually account for just a small segment of disability claims. Each of the celebrities above will be out of work for months on end, but they are lucky. They are lucky because they will all heal. They have not yet been subjected to a more critical diagnosis. The fact remains that your neighbors, coworkers, friends, and relatives are all susceptible to disability, and many have already battled an episode of this nature.
It is especially noteworthy to address how we file these disabilities in our mem-ory. An advisor will elicit two different responses by asking two similar questions. Let’s try it. “Have you ever known anyone with a disability? ” The answer may be yes, but the ability to recall an example may be a bit strenuous. Contrast that with the question, “Have you ever known anyone to battle cancer [heart attack, stroke, chronic pain, back ache]?” The answer is a much more emphatic yes.
We suggest starting the conversation with a similar approach. In most cases the
DI conversation comes up after a Health Insurance or Life Insurance sale. This is a perfectly appropriate opportunity to ask if they’ve ever known someone to have can-cer, heart disease, or chronic pain. Then listen. Ask them to tell you more about their friend’s hardship and the clients’ role in that process. Then listen again. Then ask if the client has a plan for her/himself if they were to find themselves in a similar situation. Then listen again.
The next task is to add up their monthly expenses. Would they be able to maintain a similar lifestyle if a disabling illness presented itself? Would the money come from a taxable Group LTD plan? Would they be able to live off of 35-40% of their earnings (assuming 60% income re-placement)? Is it worth it to set aside 1-4% of their income to insure 50-60% of their earnings on a tax-free basis? Listen.
Insurance and financial planning has become more and more transactional in recent years. If that is your style, then you run the risk of losing your clients to automated companies that work through internet portals promising to save time and money. If your job is to maintain a relationship with your clients, then nothing will keep you safer than protecting them in a time of dire need. Remember to address an income protection plan with clients because chances are they have neglected this coverage just like the media has ne-glected stories like these every day.
Disability. You might as well talk to your client about the chances of contract-ing the Ebola virus. The last time we heard about a catastrophic celebrity disability was probably Christopher Reeve. You may have even been one of the good ones to tell a client, “If Superman can be-come disabled then anyone can!”
This is the biggest problem with America’s perspective on disabilities — the fact that we don’t even have a perspective. Here are a few cases of celebrity disabilities in 2013 alone:
Lady Gaga suffered a hip injury that required surgery in February. She had to cancel 22 tour dates, resulting in a loss of millions of dollars. Your client might not have a job with a similar pay schedule, but perhaps they are paid on a commission structure. Imagine they miss 22 of their biggest client meetings in the span of their departure. Influential clients can develop into strong referral sources. The loss of these opportunities may result in seriously adverse financial consequences.
Dancing with the Star’s heartthrob, Maksim Chmerkovskiy, is reported to un-dergo ankle surgery this year. His inability to dance may result in a substantial loss of earnings. However, it is reported that Maks will be starring in a primetime drama once he begins recovery. This is a perfect ex-ample of an Own Occupation case. Maks
would be able to collect the full monthly benefit amount in addition to his new
earnings as an actor since he is unable to perform his usual duties as a dancer.
We can only hope he had
a proper plan in
place.
Lind-
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Generation X, those between the ages of 47 and 32, now represent larger sales potential, $3.6 trillion in a 12 month period, than baby boom-ers, at $2.2 trillion, and generation Y, at $0.3 trillion, according to “Life insurers cast the net wider for growth: Enter Gen X,” a white paper from Deloitte.
“Carriers should now reconsider the scant atten-tion paid to this formerly discounted, underinsured and underpenetrated generation,” Deloitte said. “While at first glance it may seem that the pursuit of this segment neces-sitates more resources than other generations, Xers’ high brand loyalty is very likely to help defray the initial acquisition cost through additional prod-uct sales over time.”
To gain the trust and loyalty of this underinsured generation, Deloitte’s Center for Financial Services offers these sugges-tions for targeting Gen X customers:
• Employ tech-forward marketing and customer contact channels, includ-ing social and virtual media, and direct self-purchase options. Gen X is influenced by social media and review sites, such as Angie’s List, Epinions, and CNET.
• Focus on community-based niche marketing opportunities. Gen Xers distrust institutions, but value the opinions of their
Industry News May, 2013
Generation X: A $3.6 Trillion Opportunity for Life Insurers
By Chris McMahon, Insurance Networking News
social circle when making purchase deci-sions.
• Leverage analytics to find high value and high conviction customers. Gen X is in the life stage for catalysts such as getting married, having children or changing jobs.
• Deliver value with affordable, flexible and scalable products. insurers may need to construct products with lower premium prices, potentially offset by improving processes, distribution, targeted marketing and even lifetime customer value.
• Don’t employ a traditional “push sales strategy” from intermediaries that do not
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This formerly discounted, underinsured and underpenetrated generation now presents a larger sales opportunity than boomers.
reflect the youth and diversity of this mar-ket. Deloitte suggests redefining the role of agents to educator-focused marketing executives, helping customers understand the need and benefit of protection-based life insurance coverage, alleviating doubts and directing them towards appropriate products and the purchasing method of their choice.
• Pursue opportunities created by the Patient Protection and Affordable Care Act or the advantages of worksite market-ing. Direct-to-consumer channels offer a potential to cross-sell ancillary products, including life insurance.
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13
OVERVIEWThe monthly credit card/bank draft program allows NAIFA members to pay their membership dues in 12 monthly charges by either drafting from their savings or checking accounts or by charging their Visa or MasterCard credit cards. AMEX is accepted only for full payments. NAIFA members have the option of adding their AHIA dues in the monthly credit card/bank draft program in combination with their NAIFA dues.
What are the payment processes?On the 5th of each month NAIFA will draft from your bank account or charge your credit card for 1/12 of your total dues unless the 5th falls on a weekend or on a holiday. In this case the card or draft will be charged on the next business day.Each month, after draft or charge occurs, a one month payment will be applied to your membership record. This will advance your paid through date by one month.
What are the fees associated with the programs?There is a simple monthly processing fee of 50 cents that will be added to each transaction.
How long is the payment commitment?When you enroll in the monthly credit card/bank draft program, you are committing to one year of monthly payments. If you decide to revoke the authorization to have your account drafted or your
NAIFAcard charged before the 12 months are over, you will be billed for the remaining months’ dues. All monthly credit card/bank draft program cancellation requests must be submitted in writing to NAIFA by the first of the month. These requests may be emailed to [email protected].
What happens if a draft/charge is declined or not valid?If your draft or charge is denied or is not valid, NAIFA will contact you in writing requesting a valid account number. NAIFA will charge a $15.00 fee for such returns. This fee will be applied to your next monthly charge.If your draft or charge is declined twice within a six month period, your involvement with the monthly draft or credit card program will be terminated and you will be charged the full amount of your membership.
How do I apply?Visit https://secure.naifa.org/registration to sign up online or to print the membership application to sign up for the monthly credit card program. Current members can renew into the monthly membership plan by downloading the payment option forms from the same site.
NatioNal associatioN of iNsuraNce aNd fiNaNcial advisors
Applications for the monthly credit card/bank draft program are available from the NAIFA Marketplace at www.naifamarketplace.com in the Membership Marketing Section under NAIFA Association Resources.
Visit https://secure.naifa.org/registration/ to view or download the application.
Monthly Credit Card/ Bank Draft Program
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14
We are grateful for the contin-ued support of those members listed below and thank them for renewing their NAIFA membership and salute our new members for their commitment to their careers and to their clients. Welcome!
Who Will Win the Agency of the Year Cup for Recruiting the Most
New Members? The Race Is On!
RENEWALS (thru 05/07/13)42 Years
Jack O’Brien, LUTCF, Principal Financial Group
31 YearsThomas Z. Zirbes, LUTCF, Securian Finan-cial Network
25 YearsGary J. Wenberg, State Farm Insurance
15 YearsJoseph Guttadauro, LUTCF, JMG Financial NetworkMichael E. Klein, CLU, ChFC, State Farm Insurance
3 YearsOlga Bove, FIC, LUSO AmericanPhilip Lau, EliteMax Insurance Solutions
Thank You for Your Support May, 2013
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LifeLine Screening Offers Health Screening Packages for NAIFA Members
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coast-to-coast, Life Line Screening may be coming to your neighborhood. NAIFA Members pay $145 for the Stroke, Vascu-lar Disease and Heart Rhythm Package. This Includes screening for Stroke/Carotid Artery Disease, Peripheral Arterial Disease, Abdominal Aortic Aneurysms and Atrial Fi-brillation. For more information, visit www.lifelinescreening.com/naifa .
15
To Be Completed by LocalAssociation*
___ New Member @ $____________ Reinstate @ $______________ Transfer Only (no dues required)___ Transfer/Renewal (dues inclosed)Former Association (include State location)___________________________________
___ Credit Card Charge by NAIFA*___ Bank Draft by NAIFA** Attach completed Payment Option CardCode ______________________________
To the best of our knowledge, the applicant named is entitled to and worthy of acceptance by this local association,
––––––––––––––––––––––––––––––––––––Active Sponsor Name (Please Print) (1)
____________________________________Active Sponsor Name (Please Print) (2)
Annual MonthlyBasic Dues: Local: $120 State: $125 National: $330 Total Annual Dues: $575.00 $575.00 $ 47.92 GRAND TOTAL:
NOTICE: NAIFA is required to inform you of the cost of your state and/or national magazine subscription, which is included in your membership dues. This amount is not deductible from your dues. The amount of your Advisor Today subscription is $10. The amount of your state subscription is $25.
New Member & Transfer Application(Please Print Legibly)
P.O. Box 26130, San Jose, CA 95159-6130 / (408) 275-1530
1. LOCAL ASSOCIATION NAME 2. ASSOCIATION NO. 3. MEMBERSHIP TYPE
4. *YEAR OF INITIAL LICENSE 5. *DATE OF BIRTH
6. APPLICANT’S FULL NAME __MR. __MS. __MRS. (First, Middle Initial, Last)
7. DESIGNATIONS 8. TITLE 9. MAIL SHOULD BE SENT TO:
10. PRIMARY COMPANY 11. FIRM/AGENCY NAME
12. BUSINESS ADDRESS (include country if outside USA) 13. BUSINESS PHONE
Street _________________________________________________________________
City, State, Zip ___________________________________________________________
15. HOME ADDRESS (please complete for our legislative database) 16. TOLL-FREE NUMBER
Street ____________________________________________________________________
City, State_____________________________________________ Zip_________________
18. E-MAIL ADDRESS 18a. WEBSITE 19. MONTH/YEAR OF INITIAL LICENSE ____/____
20. PRODUCER / AGENT TYPE ___ Ordinary ___ Multiline ___ Health ___ Home Service 21. Date of Birth ___ Bank Agent ___Broker Dealer ___Indedpendent
22. APPLICANT’S SIGNATURE 23. DATE APPLICATION APPROVAL
NAIFA Silicon Valley 05-0640
Silicon Valley
Payment Information
Note to Members Paying by Bank Draft or Monthly Credit Card: NAIFA will debit/charge your account on the 5th of every month. Debits/Charges will begin the month following receipt of this application. You will be notified in advance of any adjustments in your monthly debit/charge, resulting from any dues adjustments. There is a $.50 per month transaction fee, which is added to the monthly deposit/charge amount. If your membership is being reinstated after a lapse, the first debit/charge will reflect the amount due for the delinquent months. If the participant has insufficient funds in their account to cover the monthly draft, NAIFA will charge a $15 fee on the next monthly debit. If the insufficient fund status occurs for a second consecutive month or twice within six months, the participant will be removed from the program and all benefits will be terminated. The member will not be eligible to receive benefits again until his/her account is brought current. Once you have enrolled in the bank draft/monthly credit card program, you are committed to pay full annual dues in 12 monthly payments. you you fail, for whatever reason, to complete your full memebership dues oblicgation, you are still liable for the remaining unpaid balance.
If You Want to Pay Annually, Please Fill This Part Out
17. HOME PHONE
14. BUSINESS FAX
❑ Active ❑ Associate ❑ Regular ❑ Student ❑ Transfer Only
❑ Business ❑ Home
575.00575.00
I hereby authorize the National Association of Insurance & Financial Advisors, hereinafter called NAIFA, to initiate debit/charges to my: (select one) ❑ VISA ❑ Mastercard (only cards accepted at this time)❑ Checking Account ❑ Savings Account at the depository financial institution named be-low, herein called DEPOSITORY, and to debit the same to such account. (Please include a voided check with your application)
Bank Name / Credit Card Name
Bank Routing Number (ABA #/Expiration Date)
Bank Account Number / Credit Card Number
This authorization is to remain in full force and effect until NAIFA has received writen no-tification from me (the participant) of its termination. Written notification must be received by NAIFA by the last business day of thee month to avoid a draft/charge for the following month.
Account Holder’s Name
Signature Date
NOTE:All written debit/charge authorizations must provide that the member may revoke the authorization only by notifying NAIFA in the manner specified in the authoriza-tion.
If You Want to Pay Monthly, Please Fill Out This Authorization Agreement
METHOD OF PAYMENT: (Please check one)
❑ Check ❑ VISA ❑ Mastercard ❑ American Express
Card Number # Expiration Date: Name on Card
Signature
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P.O. Box 26130San Jose, CA 95159-6130(408) 275-1530 Website: www.naifasiliconvalley.org
Silicon Valley
May, 2013 16 Membership Breakfast at the San Jose Airport Garden Hotel, Table Topics (see inside for details) 21-22 NAIFA California Annual Meeting & Sales Exposition, Embassy Suites, Garden Grove. Details inside. June, 2013 9-12 MDRT Annual Meeting, Philadelphia, PA 20 Membership Breakfast, Installation of new officers & past presidents appreciation at the San Jose Airport Garden Hotel, TBA
November, 2012 15 Membership Breakfast at the San Jose Airport Garden Hotel, Maxwell Schmidt & Jim Farden, CLU, RHU (1 CE). Details
Apple’s iPhone® Now Available to NAIFA Members for Just $99
NAIFASV / SFSP2013 Program Schedule