Life Stage Financial Planning - MT SAVINGS_01292015
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Life Stage Financial Planning - MT SAVINGS_01292015
- 1. LIFE STAGE FINANCIAL PLANNING_SAVINGS 01/29/2015 version 1.1
- 12. (as of September 2, 2014)
Editor's Notes
- STEP 1: INTRODUCTION Good morning, Mr. Prospect! How are you today? (NOTE: Ask about family or work.) I am a financial consultant of Pru Life UK. Here’s my business card (if available). As a financial consultant, I help people understand and achieve their financial goals.
- CONTINUATION OF STEP 1: INTRODUCTION By the way, have you heard of Pru Life UK? Pru Life UK was established in 1996 as a life insurance company. It is a subsidiary of United Kingdom-based financial services giant Prudential plc, with regional headquarters Prudential Corporation Asia based in Hong Kong. Pioneering the sale of unit-linked or investment-linked life insurance products in 2002 and one of the first life insurance companies approved to market US dollar-denominated unit-linked policies, Pru Life UK is among the leading life insurers in the industry as of end - December 2013.* *http://www.insurance.gov.ph/htm/_statistics.asp
- STEP 2: ESTABLISHING THE NEED AND FACT FINDING Everyone goes through different life stages. (NOTE: Point to each picture as you explain each life stage.) We all start off by finding a good job. Young single professionals normally spend their money on gadgets, travel, and social activities. Most young people at this stage don’t usually save. Do you agree? After a few years, most get married and start to have kids. During this stage, their priority becomes providing for their family’s needs and ensuring their children’s education. Most have more than one child. This is the longest stage of one’s life as a parent. What are common concerns of people at this stage? When their children are about to finish school, they then prepare for their retirement. Upon retirement, income is usually needed to cover daily expenses, health needs, and leisure activities. The concern at this stage becomes the risk of running out of money. Do you agree? What do people need in each of these life stages? Money or income is needed in each life stage.
- CONTINUATION OF STEP 2: ESTABLISHING THE NEED AND FACT FINDING As we go through these life stages, there are four needs we need to prepare for. The first need is PROTECTION. If you are providing for yourself and your family, then your income is important. We have to protect that income. Is that correct? Can you and your family maintain your present lifestyle in case something unexpected happens to you? The second need is CHILDREN’S EDUCATION. Sending children to school can be expensive. So, we need to prepare ahead. Do you agree? What are your dreams for your child? The third need is RETIREMENT. Most of us wish for a comfortable retirement. For this to be possible, we need money. Do you know that 8 out of 10 retirees depend on their children for financial support? (Source: NSO 2003) The fourth need is MEDIUM- TO LONG-TERM SAVINGS. We want to buy a house and a car, travel, and do all sorts of things we have always wanted to do. Again, we need to prepare for all these. What dreams and goals do you have for your future? In your case, Mr. Prospect, which of these four needs is your priority today? (NOTE: Our goal as agents is to provide sufficient protection for our clients. In case the client answers car or travel as their priority, you can have a follow up question to determine if it’s the most important thing for him/his family today. Agent may say: “Is this the most important thing for you and your family today?”)
- CONTINUATION OF STEP 2: ESTABLISHING THE NEED AND FACT FINDING (NOTE: Depending on the answer of the client, get fact-finding sheet of the appropriate need.) MEDIUM TO LONG TERM SAVINGS: Mr. Prospect, to serve you better, here are a few questions to find out how much you might need in the future. I assure you that all information you give me will remain confidential. What do you want to save for? Is it a house, a car or a trip? (NOTE: Ask further information about the goal.) When do you want to achieve that goal? How much do you think that house/car/trip would cost? Have you started a program to address this need? How much is it for? Now, let’s see if there’s a gap between how much you have and how much you need. (NOTE: Compute for the shortfall. Subtract D from C.) Your savings need is PhP(amount).
- CONTINUATION OF STEP 2: ESTABLISHING THE NEED AND FACT FINDING If I can show you a way to provide for this need, would you be interested? STEP 3: ASKING FOR PREMIUM COMMITMENT Taking into consideration that your time horizon is short, you need to accumulate funds fast, and the fastest way to do this is by saving a big amount today. Can you set aside PhP100,000 today? Is this your minimum or maximum? (NOTE: If the client says it’s his minimum:) How much is your maximum? (NOTE: If the client says it’s his maximum:) How much is your minimum? (NOTE: If the prospect cannot afford at least PhP100,000 which is the minimum required premium for PIA Plus, then you might want to consider another product solution: PAA Plus or PEP)
- STEP 4: PRESENTING THE SOLUTION MEDIUM TO LONG TERM SAVINGS As you mentioned earlier, you wanted to save for your medium- to long-term savings needs by setting aside PhP100,000. Let me show you an illustration of a 30-year-old client setting aside PhP100,000 today and PhP50,000 every other year in the next 10 years. This solution is called PruLink Investor Account Plus. This is a variable life insurance plan that provides both protection and savings. After 10 years, you would have saved PhP471,000. After 20 years, you would have saved PhP900,000. In 30 years, you would have saved PhP1.7 million if we put the money in what we call the PruLink ProActive Fund, which currently earns 6.77% per year (as of September 2, 2014). By the way, this is based on the fund’s actual performance for the past 36 months and, of course, not guaranteed. Additionally, these benefits are net of the following charges: Insurance charge Rider charges (if any) Policy fee Annual management charge (NOTE: If the Fund Value is not enough:) Based on our discussion, this is not enough. As part of my service, I will come back every year, and we will review your plan. What do you think of this? Mr. Prospect, I have good news for you. Aside from savings, there is also life insurance. Should something happen to you during the first two years due to accident, your family will receive PhP125,000 or the amount saved, whichever is higher. Should it be due to natural causes such as critical illness, your family will receive the fund value at the time, and the company will return all the charges deducted. If this happens after two years, your loved ones will receive PhP125,000 or the amount saved, whichever is higher. So, in summary, Mr. Prospect, this plan will give you all these benefits by saving PhP100,000 one time and PhP50,000 every other year.
- CONTINUATION OF STEP 5: CLOSING How does this sound to you? Can we start this program today? What I need to do now is go back to my office and prepare a personalized plan for you. Before I do that, let me ask you some questions. (NOTE: Take out your Client Suitability Form and accomplish it.) Thank you for sharing these information. Are you free tomorrow or Saturday? 10am or 5pm? Here or your office? (NOTE: After completing the suitability form, if you have a laptop and printer, you may proceed to show the personalized proposal using the same framework for presenting the solution.)
- CONTINUATION OF STEP 5: CLOSING (NOTE: Asking for referrals is included in the closing.) Mr. Prospect, how did you find my service? If you don’t mind, I would like to ask for your help. In my business, I need to continue meeting new people. Could you please give me three names? Who are the people close to your heart whom you would like to benefit from this idea? Could you tell me more about Mr. _____? May I have his contact number, please? What does he do for a living? How old is he? Is he single or married? Does he have any dependents? (NOTE: If the client is reluctant to give you names:) Mr. Prospect, how did you find my service? Do you think this program will benefit your loved ones? Wouldn’t you want them to have the same benefits? Thank you for sharing these names with me. When I call them, I’d like to mention that you and I have done some work together. Would that be all right? I’ll be sure to let you know the results of my call.
- CONTINUATION OF STEP 5: CLOSING (NOTE: If you have set a schedule for the second meeting:) So, I’ll see you on (date), (time), (venue). Thank you.
- SECOND MEETING Good morning, Mr. Prospect. Again, thank you for making time to see me today. How’s everything going? Yesterday, I remember you saying that your priority is planning for your (goal). Am I right? You also said you will need PhP(amount) for your (goal) in (duration) years. Is this correct? You also mentioned that you can save PhP(amount) one time for this. Let me show you a plan prepared just for you.
- SECOND MEETING: PRESENTING THE SOLUTION MEDIUM TO LONG TERM SAVINGS This solution is called PruLink Investor Account Plus. This is a variable life insurance plan that provides both protection and savings. After 10 years, you would have saved PhP(amount). After 20 years, you would have saved PhP(amount). In 30 years, you would have saved PhP(amount) if we put the money in what we call the PruLink ProActive Fund, which currently earns 6.77% per year (as of September 2, 2014). By the way, this is based on the fund’s actual performance for the past 36 months and, of course, not guaranteed. Additionally, these benefits are net of the following charges: Insurance charge Rider charges (if any) Policy fee Annual management charge (NOTE: If the Fund Value is not enough:) Based on our discussion, this is not enough. As part of my service, I will come back every year, and we will review your plan. What do you think of this? Mr. Prospect, I have good news for you. Aside from savings, there is also life insurance. Should something happen to you during the first two years due to accident, your family will receive PhP(amount) or the amount saved whichever is higher. Should it be due to natural causes such as critical illness, your family will receive the fund value at the time, and the company will return all the charges deducted. If this happens after two years, your loved ones will receive PhP(amount) or the amount saved, whichever is higher. So, in summary, Mr. Prospect, this plan will give you all these benefits by saving PhP(amount)one time. How do you like it? For us to proceed, I need some information about you. (NOTE: Fill out the application form and get signature.) Please sign here. Thank you and congratulations for taking the first step in preparing for (need).