Selling to the Female Market
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Transcript of Selling to the Female Market
For producer use only.Not for distribution to the public.
SELLING TO THE FEMALE MARKET
Claire Durand, CFP®, CLU, ChFCManaging Consultant, Advanced Marketing
For producer use only.Not for distribution to the public.
The number of wealthy women in the U.S. is growing twice as fast as the number of wealthy men1
Financial Power of Women
Best Untapped Market
1 Fry, Richard and Cohn, D’Vera. (Jan 2010). New Economics of Marriage: The Rise of Wives. Pew Research Center.
Women control or influence 67% of household investment decisions2
2 Warner, Fara. (2006) . The Power of the Purse: How Smart Businesses Are Adapting to the World’s Most Important Consumer –Women.
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Women when compared to men
Best Untapped Market
Source: Ahmed, Nilufer R. (2005). Women and Life Insurance: Results From the 2004 U.S. Ownership Study. LIMRA.
Only 20-25% of producers intentionally market to women
Less likely to own life insurance
Are underinsured
Believe more strongly in the value of life insurance
For producer use only.Not for distribution to the public.
Best Untapped Market
Source: James O. Mitchel, Ph.D., CEBS. Financial Styles of Affluent Women LIMRA, 2010
Women when compared to men
More conservative Tend to view wealth as protection and place less emphasis on accumulation
Maintaining income stream to support loved ones is a top financial priority
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Focused on the buyer
Typical Fact Finding
How much insurance do you need or want?
How much do you want to leave your loved ones when you die?
How much can you afford? What lump sum is right for you?
For producer use only.Not for distribution to the public.
What is the monthly income stream required for your spouse to continue to run the household?
2 Would you like a lump
sum set aside for college expenses, for your kids, retirement for your spouse or a wedding for your daughter?
3 If you die tomorrow, how much is needed to satisfy outstanding debt and any other final expenses?
1
Effective Fact Finding: 3 Questions
FOCUS ON LOVED ONES
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Mass Affluent Females TransTermSM policy
Income Protection Option (IPO)
High Net Worth Females TransACE® policy
Spousal Support Trust established by wife
A Strategy for Every Segment
For producer use only.Not for distribution to the public.
Guarantees and Control Guaranteed universal life product with cost
effective term-like premiums
Flexibility to transition to lifetime coverage if future needs change
Five separate initial level premium options: 10, 15, 20, 25 & 30 year durations
TransTermSM Overview
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Why will this appeal to women? Guarantees
Flexibility
Control
TransTermSM
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Guaranteed Income Strategy
Income Protection Option (IPO)
5 – 25 years / $100 min.
Guaranteed Monthly Income Stream
$10,000 min.
Initial Lump Sum
$10,000 min.
FinalLump Sum
Available at no additional 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
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What is the monthly income stream required for your spouse to continue to run the household?
2 Would you like a lump sum set aside for college expenses, for your kids, retirement for your spouse or a wedding for your daughter?
3 If you die tomorrow, how much is needed to satisfy outstanding debt and any other final expenses?
1
Guaranteed Income Strategy
Guaranteed Monthly Income Stream
Initial Lump Sum
FinalLump Sum
Income Protection Option (IPO)
For producer use only.Not for distribution to the public.
Julia, 43, married to Danny, 45
3 children ages 12, 15 and 19
Julia is a management professional and Danny is an elementary school teacher
Seizing Opportunities –Insurance Security for the Family
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Concerns Will her family have enough to
cover living expenses if something happens to her?
How can she help to ensure financial security of her spouse and kids into the future?
Seizing Opportunities –Insurance Security for the Family
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Security for Julia’s Family
TransTermSM 30 policy on Julia* with the IPO
Beneficiary Initial Lump SumGuaranteed
MonthlyIncome (15 Years)
Final Lump Sum
Danny(Spouse) $100,000 $50,000
Jessica(Child) $25,000
Paul(Child) $25,000
Steven(Child) $25,000
Total $100,000 $4,500 / month(for 15 years) $125,000
*Standard Nonsmoker initial premiums level for 30 years.
$4,500
For producer use only.Not for distribution to the public.
Security + Flexibility for Julia’s Family
TransTermSM 30 policy on Julia* with the IPO
Beneficiary Initial Lump SumGuaranteed
MonthlyIncome (15 Years)
Final Lump Sum
Danny(Spouse) $100,000 $50,000
Jessica(Child) $25,000
Paul(Child) $25,000
Steven(Child) $25,000
Total $100,000 $4,500 / month(for 15 years) $125,000
0
$1,500
*Standard Nonsmoker - initial premiums level for 30 years.
$1,500
$1,500
$4,500
For producer use only.Not for distribution to the public.
Illustrating IPO on TransWare®
$4,500
$100,000
15
$125,000
Annual Premium : $2,084*
Face Amount : $835,309
Total IPO Payments: $1,035,000*Female, Age 43, Standard Nonsmoker, TransTerm 30
For producer use only.Not for distribution to the public.
Affordable
Simple
Gives Control to Policy Owner
Death benefit payout options
Flexible
Income Protection Option
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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?”
IPO Talking Points
For producer use only.Not for distribution to the public.
Mass Affluent Females TransTermSM policy
Income Protection Option (IPO)
High Net Worth Females TransACE® policy
Spousal Support Trust established by wife
A Strategy for Every Segment
For producer use only.Not for distribution to the public.
Estate Tax
Gift Tax
• Exemption in 2010: $1 Million
• Exemption in 2011–2012: $5 Million
• Tax Rate for 2010–2012: 35%
Two-Year Tax Window
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Gifting During the Two-Year Window
“If we give away some of our wealth now, what happens if we need it later?”
Gifting Dilemma
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TransACE® with Surrender Flexibility Endorsement
GuidelinesIf the policy is funded as required by the endorsement:
60 day period following the 20th policy anniversary, policy owner could receive
the lesser of:
25th policy anniversary or after, policy owner could receive
the lesser of:
100% of gross premiums*
30% of lowest face amount**
100% of gross premiums*
35% of lowest face amount**
OR OR
*Less any refunds, partial surrenders, and any outstanding policy loans.
**Less any outstanding loans, and any partial surrenders that did not reduce the face amount.
For producer use only.Not for distribution to the public.
The Best of Both Worlds
Spousal Support Trust (SST)
Provides access to cash value and estate tax-free death benefit
Uninsured spouse may receive lifetime distributions for health, education, maintenance and support
Maximizes benefits of Surrender Flexibility Endorsement
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Ellen, 58, married to Thomas, 59
2 children ages 30 & 35
Ellen is an executive for an insurance company and John is a psychologist
$10 Million insurance need
Legacy Opt Out Plan
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Legacy Opt Out Plan
Spousal Support Trust owns TransACE® policy on Ellen’s life
Trust corpus is available for distributions to Thomas
Trustee can surrender policy for enhanced values
If policy kept in force, trust can provide estate liquidity at Ellen’s death (loan money or buy assets)
For producer use only.Not for distribution to the public.
Legacy Opt Out with TransACE®
Enhanced Surrender Value
Female Age 58, Preferred, Non-Smoker, $10M Annual Premium: $122,984
Yr Age Total Premium Paid Death Benefit Endorsement
Benefit*
20 78 $2,459,680 $10 Million $2,459,680
25 83 $3,074,600 $10 Million $3,074,600
30 88 $3,689,520 $10 Million $3,500,000
*Endorsement is exercised only if the policy is fully surrendered in the applicable years and time frame.
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ACE (no-lapse) provision must be current or endorsement will terminate
Policy must be funded for lifetime guarantees for the endorsement to be applicable
Termination of endorsement is irrevocable
Endorsement Guidelines
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Automatically added to each policy at no cost
No limitations to age, face amount or risk class*
Surrender Flexibility Endorsement
*Must meet funding requirements
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Increasing affluence, believe in life insurance and are underserved
Attracted to IPO with its protection emphasis over accumulation
Can be driver in legacy planning in an uncertain economic and tax environment
Why Women are the Ideal Clients
For producer use only.Not for distribution to the public.
Fact Finding with Women Clients
What are your concerns for the future financial security of your loved ones?
What amount will your spouse/family/loved ones need to continue to pay for household expenses?
How much would you provide loved ones as a buffer for emergencies or medical bills?
How much confidence do you have that your children will have access to future opportunities for success?
For producer use only.Not for distribution to the public.
Take a look at your book of business for opportunities within the women’s market:
Married couples in which the wife works outside the home
Business owners or professionals
Network through friends and acquaintances for women who are working full time
Next Steps
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Contact your General Agencyor the Transamerica Advanced
Marketing Department at(866) 545-9058 Option 2
Contact Us
For producer use only.Not for distribution to the public.
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.
TransTermSM 30 (Policy Form No. ICC10-430) is a non-participating, flexible premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Higher premiums may be necessary to maintain coverage starting in year 31 for TransTerm 30, and payment at any time of premiums that are insufficient to continue coverage may result in termination of coverage. Policy form and number may vary and this policy may not be available in all jurisdictions.
TransACE® is a non-participating, flexible premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form #1-12611107 (CVAT), Group Certificate #2-72336107 (CVAT) for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary, and this policy may not be available in all jurisdictions.
Transamerica Life Insurance Company (“Transamerica”), and its representatives do not give tax or legal advice. The material in this presentation 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 September 2011.
OLA 2121 0911
For producer use only.Not for distribution to the public.
Claire Durand, CFP®, CLU, ChFCManaging Consultant, Advanced Marketing
SELLING TO THE FEMALE MARKET