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TIP-OFF TO SALES

TIP-OFF TO SALES. How to Boost UL Sales in a Depressed Economy: The TransSecurity SM Solution. John Oliver CLU, ChFC , MBA Vice President, Field Development. Overview. Market Overview What Clients are Looking For How to Boost Your UL Sales Tools and Resources. Industry Trends, 2009.

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TIP-OFF TO SALES

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  1. TIP-OFF TO SALES • How to Boost UL Sales in a Depressed Economy: The TransSecuritySM Solution John OliverCLU, ChFC, MBA Vice President, Field Development

  2. Overview • Market Overview • What Clients are Looking For • How to Boost Your UL Sales • Tools and Resources

  3. Industry Trends, 2009 Policies Premium 25% 12% 7% 5% 1% 0% 0 -1% -11% -14% -25% -50% -49% -52% WholeLife UL Term VUL Total Source: LIMRA U.S. Individual Life Insurance Sales Trends Q3, 2009

  4. Challenges to Your Business Changing Environment • High-net-worth market • Estate Tax laws • Premium Financing • Guaranteed products

  5. Challenges to the Opportunities of Future Generations Budget deficits Increased taxes & slower recovery Real estate & equity depreciation Retirement insecurity

  6. Standard of Living: The Next Generation Better or Worse Off? Same or Worse 52% Better 43% Source: The American Dream, CBS Poll, May 2009 For producer use only. Not for distribution to the public.

  7. The Myth of Averages S&P® 500 (total returns, %) as of 12/31/2009 “The biggest myth is that the stock market returns, on average, about 10% a year.” 0.4 Source: “Let's Bury The Myth Of Averages,” Forbes, February 23, 2009 Chart Source: Standard & Poor’s Index Services, Monthly Returns

  8. Future Generations • Lower income • Higher taxes • Fewer entitlements • Less purchasing power • Fewer opportunities Client Mindset Today’s Clients • Should they keep working longer? • Revise their retirement plans? • Scale back their standard of living now to conserve money for later? • What standard of living will my grandchildren have? • “Leave less to your heirs. Or even nothing at all.” Source: “Baby Boomers To Kids: Kiss Your Inheritance Goodbye,” The Wall Street Journal, July 2009 For producer use only. Not for distribution to the public.

  9. The TransSecuritySM Solution Creating Opportunitiesfor Future Generations

  10. The TransSecurity Solution A Guaranteed Policy A Guaranteed Policy Guaranteed Income Strategy Innovative Financial Underwriting The Transamerica Advantage

  11. The TransSecurity Solution Taxes Investments Economic Conditions Career Choices Independent of external factors

  12. The TransSecurity Solution A Guaranteed Policy

  13. The TransSecurity Solution A Guaranteed Policy For producer use only. Not for distribution to the public.

  14. The TransSecurity Solution Year Net Death Benefit Internal Rate of Return 10 $2,000,000 15 $2,000,000 20 $2,000,000 A Guaranteed Policy 33.13% 17.10% 10.41% 25 $2,000,000 6.86%

  15. The TransSecurity Solution A Guaranteed Policy

  16. The TransSecurity Solution A Guaranteed Policy Guaranteed Income Strategy Innovative Financial Underwriting The Transamerica Advantage

  17. Dangers of Sudden Wealth • As many as 70% of those who come into sudden money end up losing it all because of their inability to deal with the practical, financial and emotional issues involved1 • 44% of lottery winner winnings were spent after 5 years2 • Nearly one-third of lottery winners become bankrupt3 • 1 MSN.com as quoted in http://www.pacificawealth.com/financial_planning_services/sudden_money_recipients.asp (2010) • 2 Camelot Group Plc (2003) • 3 Certified Financial Planner Board of Standards, Inc (2003)

  18. The TransSecurity Solution Guaranteed Monthly Income Stream Initial Lump Sum Back-End Lump Sum Guaranteed Income Strategy Income Protection Option (IPO) $10,000 min. 5 – 25 years / $100 min. $10,000 min. • Available at no additional cost • May include multiple beneficiaries

  19. The Turners’ Plan TransSecurity Solution: TransACE UL policy with the IPO on Eric Turner* *A portion of each monthly payment and a portion of the final lump sum are reportable as interest income. The policy illustration provides the tax-reportable percentage for each monthly income payment and the final lump sum based on a 3% guaranteed minimum interest rate and the illustrated face amount. Upon the insured’s death, the actual taxable portion of each monthly payment will be calculated and communicated to the beneficiary(ies) based on the actual payout amounts. The taxable portion of the final lump sum payment will be determined when the payment is made.

  20. IPO Offers Flexibility TransSecurity Solution: TransACE UL policy with the IPO on Eric Turner* $25,000Start-up Capitalfor business

  21. IPO Calculator on TransWare

  22. The TransSecurity Solution A Guaranteed Policy Guaranteed Income Strategy Transamerica Brand Innovative Financial Underwriting

  23. NEWGuidelines • 50% of current net-worth • Growth factor: 7% • Multiple of salary • Current in-force policies The TransSecurity Solution Innovative Financial Underwriting Previous Guidelines • Estate Tax liability • Multiple of salary • Current in-force policies

  24. Calculating Net Worth

  25. The TransSecurity Solution Innovative Financial Underwriting Example Female Standard Age 65 Male Standard Age 70 Net Worth: $4.0 Million Qualify: $5.5 Million Death Benefit

  26. Financial Underwriting Estimator 3975000 *Male, Age 45, Preferred, Non-smoker

  27. The TransSecurity Solution A Guaranteed Policy Guaranteed Income Strategy The Transamerica Advantage Innovative Financial Underwriting

  28. ® The TransSecurity Solution The Transamerica Advantage • Strong financials • High consumer value • Solid history, serving customers for over 100 years

  29. The Transamerica Advantage

  30. The TransSecurity Solution

  31. MASS AFFLUENT ($1 - $10 Million) The TransSecurity Solution HIGH-NET-WORTH Age 55 - 75 ($10 Million +) MIDDLE MARKET (less than $1 Million)

  32. Possible Sources of Premium • Lazy asset rescue • Money markets/CDs • Municipal bonds • Annuities • IRAs • Premium financing

  33. Top 10 Tools to Target a TransSecurity Sale

  34. Top 10 Tools 1. Two minute consumer video

  35. 2. Email template 3. Consumer Guide and Fact Finder

  36. 3975000 5. FinancialUnderwriting Estimator 4. • IPO Calculator 6. Consumer lllustration

  37. 7. Producer FAQ 8. Producer Flyer

  38. 9. Co-branded web site YOUR LOGO HERE YOUR CONTACT INFO HERE

  39. Top 10 Tools • 10. TransSecurityConcierge Unit(866) 858-0066

  40. The TransSecurity Solution A Guaranteed Policy Guaranteed Income Strategy Innovative Financial Underwriting The Transamerica Advantage

  41. Tip-Off to Sales Save the Date: March 9 Next Tip-Off: Term for Our Times Todd Ewing Vice President, Term Life and Direct Marketing

  42. 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. TransACE® is a nonparticipating, 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. TransACE Survivor® 2008 is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form #1-12111108 (CVAT), Group Certificate #2-72136108 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. This material 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 January 2010. OLA 2055B 0210

  43. TIP-OFF TO SALES • How to Boost UL Sales in a Depressed Economy: The TransSecuritySM Solution John OliverCLU, ChFC, MBA Vice President, Field Development

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