Agent Faces up to 4 Years in Prison for Selling an Annuity

I’ve known this case was in the works for some time, but I didn’t really think the outcome would be jail time for the defendant. It’s really quite shocking.

When I had this story forwarded to me yesterday, I was saddened. Why saddened? Sure, I feel bad for the advisor; I believe the story simply speaks to the unprofessionalism of the attorney who decided to prosecute this case. It makes all attorneys look bad and shows us how abusive the legal process can be (and how helpless a defendant can be).

Summary—an agent sells a Masterdex 10 (Allianz) annuity to an 83 year old. As it turns out, the client had some form of dementia (although the agent didn’t see signs of it and was not informed by the client or her relatives about her dementia).

Through Monday-morning quarterbacking and due to outside pressure, investigations ensued; and the agent was charged with a felony theft charge. This is ironic since he did not steal anything and since the annuity never lost money. Yes, there was a declining surrender charge but to be charged and convicted of theft is simply crazy.

When you read the facts of this case, if you know anything about annuity sales, you will not think them to be egregious in a manner that would lead to a civil suit let alone a criminal one. This advisor seemingly has had his life ruined by a criminal process that should have never taken place.

This is a bad facts, bad jury, and an overzealous prosecutor case that is hard to fathom. I’d like to tell you that we can learn a lot from this case, but I can’t think of much except to make sure you send your CYA letter after each annuity and life sale. I know that insurance companies have been watching this case and have instituted procedures to help prevent this in the future with phone interviews with clients over a certain age; but, unfortunately, that won’t help this agent.

To read a lengthy summary of this case, please click here.
http://enews.insurancemail.biz/article.aspx?id=331872&type=topnews

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American Collectors Insurance and one of its insureds discuss on camera the coverage concerns with collectible autos

We Love You! Not romantically, but in a Sales Representative sort of way...

Of course today is Valentine's Day!
(And guys who forgot, you're welcome!)

A day of love and excitement for some...

And S.A.D. (Singles Awareness Day) for others...

Either way, make sure you have good reason to celebrate because I'm going to share with you Cupid's secret to more commissions...

First, it is worth noting that Cupid is a member of PASI;-) At least, our fictional character PASI...

Anyhow, as you should know, Cupid's job is to bring two lovers together - he is the ultimate match-maker.

Now while your job is not to help soul mates find each other, you are most certainly a match-maker!

You match your prospects and clients with the right companies, products and services they need to protect themselves, their assets, their families, etc.

Often though, those prospects and clients are resistant to your help because they think you might try to sell them something. Sadly, this is a result of charlatans and the like in our society of which I'm sure you are not one.

Cupid has the same problem...

Until he fires his arrow and strikes his human target, that person is totally resistant to love. Only when Cupid grabs their attention and causes their eyes to be opened, does that hard-hearted person soften and become open to the prospect of love.

You need an arrow like Cupid - a way to grab your prospect's attention and get them open the possibility of working with you. You need an arrow that will make the prospect "open their eyes" and see that you are in fact, simply trying to help them achieve their goals and manage the risks they have.

So what's your arrow???

Your arrow is your marketing and sales funnel - the process that a new prospect finds their way into and moves along until they emerge from the other side as a lifelong client of yours.

This marketing and sales funnel follows Cupid's lead...

First, the funnel MUST get the prospect's attention.

Second, it MUST "open their eyes" (via education) to the problems they have.

And third, this process MUST introduce the prospect to their "soul mate" of insurance coverage - by positioning you as the only and best provider of the solution(s) that prospect needs.

So are you a Cupid in your marketplace? Do you have a powerful and effective arrow in the form of a proven marketing and sales funnel?

If not, you need to discover the TWO tactics that will become the framework of such a funnel...

These two tactics, 1) include a call to action in every marketing message & create a lead magnet and 2) use a needs assessment tool to bring value to your prospects.

Sincerely,

Doug

Insure Your Love Campaign: Life Insurance Is Love Insurance

With Valentine’s Day right around the corner, your clients will be focusing on showing their love with flowers and jewelry and romantic dinners for two. Why not take advantage of this atmosphere of love by making them aware of a gift that will have an even greater impact: life insurance?

“Too often, consumers view life insurance as an optional line item on the budget — great to have if they can afford it but reduced or eliminated if money is tight,” says Marvin Feldman, LIFE Foundation president and CEO. “What they don’t understand is that life insurance is really love insurance — that by carrying sufficient insurance, they are safeguarding the future of their loved ones.”

Unfortunately, many agents have found themselves in the heartbreaking situation of telling grieving families that there was little or no insurance money available to help mitigate the financial burden that resulted from the loss of a loved one. Even worse is the knowledge that this might have been prevented had there been just a few more discussions about the role of life insurance in a family’s financial plan.

From now until the end of February, producers and companies can take advantage of the Insure Your Love (IYL) awareness campaign to reach out to their customer base, using a variety of creative methods. From mailing the “Because He Loved Me” poem to sending links to realLIFEstories videos to holding an open house, complete with red and white balloons and IYL notepads, magnets and wristbands, the goal is to spread the message that life insurance is the best gift of love one can give. (For resources and free materials, visit the Insure Your Love Producer Kit page at http://www.lifehappens.org/lovekit.)

But the Insure Your Love awareness campaign is more than just an excuse to distribute freebies and host heart-themed events. As the first awareness event of the year, it provides producers with the opportunity to meet with their clients to review their needs and evaluate their coverage. As for those prospects who have resisted even discussing life insurance, the light-hearted, love-filled atmosphere may help allay their psychological discomfort in planning for the future.

With industry studies reporting that less than two-thirds of those surveyed own insurance [i] and 50% of those who do own it believe the amount is insufficient [ii], the Insure Your Love awareness campaign is the ideal opportunity for producers to demonstrate their commitment to their market by encouraging a “life and love” dialogue.

For more information about the LIFE Foundation, contact Jaimee C. Niles, V.P., Communications at jniles@lifehappens.org, (703) 888-4450 or visit www.lifehappens.org.
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[i] P 9 2011 Insurance Barometer Study

[ii] P 30 Household Trends report: Half of U.S. households say they do not have enough life insurance — the highest proportion ever.

Is This Simple But Costly Mistake Lurking in Your Clients’ IRAs?

Let me tell you about a couple I knew who were married for 34 years. They managed to raise and educate four children through college. He retired from his first career early due to heart disease and then began a second one as an accountant. Years later, she also retired and was ready to enjoy life with her husband as a homemaker. Unfortunately, he died unexpectedly while doing the job he loved, suffering a massive heart attack literally at his desk while working with clients.

She was devastated and had the most difficult time coping with this sudden tragedy. Luckily, they had put away some money over time and most of it was in IRAs established years earlier, which had grown nicely. One of the great things about IRAs is that they can be easily transferred to beneficiaries without going through the timely and expensive probate process.

But this couple never named beneficiaries for their IRAs. They just assumed that the surviving spouse would inherit the deceased’s money. Then the reality of this costly mistake hit home. Unless the spouse or child is named as the beneficiary, the money must go through probate court. His IRA could not simply be rolled over into hers. The result? Income taxes were due on the entire amount instead of being able to defer them until much later. And those taxes dramatically reduced what she had hoped to receive for her grandchildren and her own living expenses.

This often happens when people forget to update their IRAs and wills. Money that could be passed down to subsequent generations becomes snared in the probate process. Parents or grandparents whose bank and IRA accounts still carry the beneficiary designation of “per stirpes” or left to “the estate” of the deceased will cause headaches and potentially cost hundreds or thousands of dollars unnecessarily.

Few parents would want their children to suffer due to the unnecessary early payment of income taxes on their hard-earned savings. Even worse, there are often cases when, after a divorce, beneficiary designations are forgotten about. Then, when a death occurs, money may actually go to the “ex” and his or her new spouse instead of the children of the deceased.

Ensure your clients don’t make this mistake with their beneficiary designations and protect them from unnecessary hassle.

When It Comes to Training, Do You Drag Your Feet?

Last week-end Kathy and I enjoyed a trip to Okoboji. On Sunday, we were sitting near the pool people watching. Several people walked past us, and we couldn’t help but notice the vast majority dragged their feet or shuffled as they walked. This got me thinking about situations in which salespeople drag their feet and how this affects their sales.

Prospecting. As my friend LeAnna Kruckeberg says, “No one ever defaults to prospecting.” Many salespeople drag their feet and procrastinate when it comes to engaging in this activity. However, it is the one sales activity that can influence your final results more than anything else.

Lead follow-up. It never ceases to amaze me how many people drag their feet when new prospects contact them. I can think of several situations where I contacted a company to inquire about a particular product or service only to have my email or voice mail ignored, forgotten or misplaced.

Sales follow-through. Very few sales happen in the first conversation, which means salespeople need to follow through if they want a sale to move forward. However, many salespeople drop the ball and fail to follow up after that initial sales call.

Information. In today’s lightening-paced world, people have a very low “wait” tolerance when they request information about your products, services or offerings. I recently read that companies (and salespeople) who get information to a prospect faster than their competition significantly increase their likelihood of capturing that sale.

Self-development. Many salespeople and their managers believe that their existing skill set is sufficient and that they don’t need to update or improve their selling skills. Sales training expert Colleen Francis reports that three-plus hours of sales coaching a month will ensure a salesperson hits 107 percent of his or her quota, while less than two hours of coaching per month sees that rep hitting 90 percent of quota. Yet many salespeople resist coaching and even more sales managers drag their feet and fail to provide effective sales coaching.

Adapt and change. If there is one thing I have learned in business and in sales, it’s that change is inevitable, which means we need to constantly adapt and modify our approach if we want to generate better results. Salespeople, however, are notoriously reluctant to change their approach, particularly seasoned veterans.

In today’s competitive sales world, dragging your feet can cost you money in lost sales opportunities—especially if your competitors are light and quick on their feet.

How to Follow Up on a Referral

My follow-up might look like this:

Dear _____,

Jane Doe mentioned your name and thought that I may be of service to you as an insurance agent.

To get to know me, please click this link to look at the following insurance specialist testimonials (attach link).

Here is a link to understand the “Client Protection Review” process (attach link) that Jane Doe is working on.

Please e-mail me back if you would like to have a complimentary conversation about how I can help you meet your coverage needs and exceed your financial goals.

Kind regards,

Doug

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Hopefully, this example will guide you the next time you’re fortunate enough to receive a referral.

Five Lunches. Four Breakfasts. More Sales!

The secret to building a solid sales business? Five lunches and four breakfasts each week. That’s nine meetings a week. (It could be 10, but who wants to meet for breakfast on Monday morning?)

The magic meeting number. Nine meetings a week equals 36 meetings a month, equals 432 meetings a year. (A solid 52 weeks a year adds up to 468 meetings, but I subtracted four weeks for vacation and other things that get in the way—conferences, personal business, sick days, etc.)

Either way, the number—432— is staggering. This is what I ask my sales team to do. Do they reach that goal? Rarely. Selling is hard work. Continuing to expand our relationships and build our networks is hard work. But what a great return on our investment.

Set goals and stretch to reach them. In order to grow you need a goal. When your goal is to bring new clients to our agency and the company, your most important activity is expanding your referral network. Think of it this way: Say you have 200 meetings a year with potential referral sources. What if half (100) of those connections were to introduce you to a potential client?

Referrals deliver sales success. We know with a referral introduction to your decision maker, you will convert a minimum of 50 percent to clients. That means 50 new clients to our agency. Sounds too good to be true? It’s not. But you need to work the process. If you work it, it will work.

Your biggest problem becomes following up on those great referrals. That’s a nice problem to have, and if you’re like me, you love having that problem. Nine meetings a week—go for it.