What's in Your Presentation/reference Binder?

[DHK]

This is for those who are taking a more 'comprehensive' approach with your clients. What do you keep with you for reference during your appointments?

My binder includes:
- IRS Publication 590 & 560
- History of Income Tax Rates in the U.S. Chart
- Laminated copy of my insurance license
- 2014 Key Numbers from Forefield Advisors (or get the same from VSA) including current year tax rates, qualified plan contribution limits, etc.
- 529 plan FAQ
- Mock illustrations for comparison purposes on how I will design their plan... compared to basic illustrations and the reasons why financial entertainers don't like these products.
- Current interest rates
- Policy loan treatment and education funding excerpts from The Tools and Techniques of Financial Planning & Life Insurance Planning.
- A product brochure or two.
- Benefit Comparison matrix of QP, Roth, 529, MF (mutual funds), and Life Insurance.

What do you have in your binder?

(And don't say you have women in your binder. That's an old joke.)

 

[Justin Bilyj]

Mock illustrations for comparison purposes on how I will design their plan... compared to basic illustrations and the reasons why financial entertainers don't like these products.

Can you explain this a little more?

 

[DHK]

I made up 3 illustrations based on me: age 36, standard non-smoking, and a given premium amount consistent for all 3.

First illustration was a Midland National IUL, illustrated at target premium for $947,457 death benefit. All permanent death benefit (no term rider available with Midland National).
- No cash values until year 6.
- Policy never "breaks even".
- Policy "runs out of gas" on the guaranteed column by age 66.
I show non-guaranteed interest at 6% to keep expectations more 'realistic'.

Second illustration is an Assurity WL base + 20-year level term rider to total the approximate death benefit of the IUL above.
- Cash values in year 3.
- Break even at policy year 26 on Non-Guaranteed column.
- Projected dividend equals premium at year 35 of the policy.
- At age 66 (when the IUL ran out), this one has $161,000 in guaranteed cash value.

Third illustration is also an Assurity WL, but maximum funded with the same dollars. WL death benefit is lower, and more term to make up the same death benefit. (This is a great time to talk about converting even more to the plan!)
- Cash values in year 1.
- Policy "breaks even" at year 18 non-guaranteed, and year 26 guaranteed.
- Projected dividend equals premium at year 27 of the policy.
- Age 66 shows non-guaranteed cash values of $311,172 and guaranteed cash values of $209,050.
- Then I take the 3rd illustration a step further and show them $22,000 of cash withdrawals, then loans from age 70-98.

I'm only showing the policy values pages... and I'm stating that it is based on my own underwriting on me. And it's just to show how I will structure the policy for them to maximize its benefits. It's only to show the concept of policy design using a given premium, not as a leave-behind.

The reason why most financial entertainers don't like WL, UL, IUL, VUL, is because of the way most agents design them. They do it like the first two... which is slow on building up cash. If they did it the way I do it, they wouldn't have nearly as much criticism.

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I like Assurity because of their focus on Middle America and bundling a disability income benefit within the policy.

In CA, disability income policies seem to be disappearing like the Dodo... so to have that protection bundled in, is an additional selling point for me.

 

[LifeWorth]

What's the consensus on carrying your own life policy with you? As a way of showing a client you own what you're suggesting?

 

[DHK]

A copy of the original illustration compared with a recent statement of performance - sure.

I probably wouldn't carry my actual policy with me everywhere though.

John Savage had a financial balance sheet that (I think) was also signed by his accountant. He offered it up front saying that if you're going to be my client, then we should share. (It also helps to block out the competing attorney/agents/accountants... unless they bring THEIR balance sheets too!)

I wish my personal balance sheet was good enough to share at this point... but one day soon, it will be!

 

[LGilmore]

A yellow legal pad... and a catalog from Midwest brewing for when I am waiting.

That's about it. and a pen.

 

[WinoBlues]

A yellow legal pad... and a catalog from Midwest brewing for when I am waiting.

That's about it. and a pen.

That is about it for me as well. I usually make notes on the back of my green sheet. (Info sheet I use) That always stays close to the top of the file.

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I really like that. Back in the stone age when I started I printed up a 2" binder full of UL illustrations and called it my what if book. This was before laptops. I had $2,000 and $1,000 premiums for different ages.

Your illustrations below remind me of the one pagers I used to use ( Howard Wight) They were very effective. Worked so well I stopped doing it. I may do something like that again.

Thanks for the break down.

Lee

I made up 3 illustrations based on me: age 36, standard non-smoking, and a given premium amount consistent for all 3.

First illustration was a Midland National IUL, illustrated at target premium for $947,457 death benefit. All permanent death benefit (no term rider available with Midland National).
- No cash values until year 6.
- Policy never "breaks even".
- Policy "runs out of gas" on the guaranteed column by age 66.
I show non-guaranteed interest at 6% to keep expectations more 'realistic'.

Second illustration is an Assurity WL base + 20-year level term rider to total the approximate death benefit of the IUL above.
- Cash values in year 3.
- Break even at policy year 26 on Non-Guaranteed column.
- Projected dividend equals premium at year 35 of the policy.
- At age 66 (when the IUL ran out), this one has $161,000 in guaranteed cash value.

Third illustration is also an Assurity WL, but maximum funded with the same dollars. WL death benefit is lower, and more term to make up the same death benefit. (This is a great time to talk about converting even more to the plan!)
- Cash values in year 1.
- Policy "breaks even" at year 18 non-guaranteed, and year 26 guaranteed.
- Projected dividend equals premium at year 27 of the policy.
- Age 66 shows non-guaranteed cash values of $311,172 and guaranteed cash values of $209,050.
- Then I take the 3rd illustration a step further and show them $22,000 of cash withdrawals, then loans from age 70-98.

I'm only showing the policy values pages... and I'm stating that it is based on my own underwriting on me. And it's just to show how I will structure the policy for them to maximize its benefits. It's only to show the concept of policy design using a given premium, not as a leave-behind.

The reason why most financial entertainers don't like WL, UL, IUL, VUL, is because of the way most agents design them. They do it like the first two... which is slow on building up cash. If they did it the way I do it, they wouldn't have nearly as much criticism.

----------

I like Assurity because of their focus on Middle America and bundling a disability income benefit within the policy.

In CA, disability income policies seem to be disappearing like the Dodo... so to have that protection bundled in, is an additional selling point for me.

 

[KidsGotHeart]

An app, three ways to pay illustration, 4 questions page, pad, and pen.

 

[LifeWorth]

An app, three ways to pay illustration, 4 questions page, pad, and pen.

A three ways to pay page? Can you post it?

 

[DHK]

Rent, Lease, Own

Rent = Term Insurance

Lease = Universal Life (probably a 1st year dump-in with annual term payments)

Own = Whole Life

Ideas are from Irwin Burt Meisel's books on one-page illustrations.