2. Primerica
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•
•
•
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Listed on the New York Stock Exchange (PRI)
New company with 35-year proven track record
$664 billion of term life insurance in force / 2 million investment clients
Accredited member of the Better Business Bureau
Doing business in one of the most highly regulated industries
Largest independent financial services marketing organization in North America
Insurance Agents
~92
Primeric
a Mutual
Fund
Licensed
Reps
73
Brokers
Sales Force
(in thousands)
Primeric
a Life
License
d Reps
18
1
2
Financial Advisors
36
Aflac2
Allstate3
State
Farm4
13
MetLife
5
18
17
7
Torchmark6
MSSB7
BAML8
13
Edward
Jones9
11
Ameriprise9
5
Raymond
James9
3. Help families earn more income, become properly
protected, debt free and financially independent.
FREE Financial Needs Analysis
The FNA provides
solutions in these areas:
• Savings
• Debt Solutions
• Income Protection
A Financial GPS
• Income Management
• And More!!
4. Life Insurance
Managed Accounts1,4
Annuities1,3
Debt Solutions
1,6
Referrals by Primerica
Client Services, Inc. to
Primerica DebtWatchers™
401(k) Plans1,3
1,2
Offered by Primerica Client Services, Inc.
through contractual agreement with
®
Mutual Funds3,5
Auto & Home Insurance
Referral Program
Quotes from such companies as:
Safeco and Progressive
Legal Protection
Long Term Care
4
See endnotes pages for
important disclosure.
5. Perfect Storm
Baby Boomers:
•76 million people were born in this country within 18 years of each
other (1946 - 1964). Their WANTS/NEEDS have CREATED companies and
shaped ALL of the major INDUSTRIES for the past 60 years.
1945
1955
1965
1975
1985
1995
2005
?
2015 2025
We Are Perfectly Positioned To Serve Their Current Needs
•Earn Additional Income
•Long Term Care Insurance
•Life Insurance
•Lifetime Retirement Income
•Wealth Transfer Documents (Wills)
•Debt Elimination Strategies
•Portfolio Protection
•Help Planning Their Future
6. Perfect Storm
Less Help Available
The number of firms registered with the Financial Industry Regulatory
Authority, Inc. has declined by 8.2% since 2005. Nearly 80% of families
don’t have a personal life insurance agent or broker.
Wealth Transfer:
$2.2 trillion was received through inheritance and gifts between 1998
and 2007, and the rate of transfer is increasing. It is estimated that
tens of trillions more will transfer over the next several decades.
Money on the Sidelines
Nearly $12.3 Trillion in money market funds, CD’s and saving accounts
Rollovers In Motion
From an estimated $314 Billion in 2008, the value of rollovers will rise to
$2 Trillion by 2013
9. Boomers Need To Know About
In Service Distributions
The Arithmetic Of Loss: 401(k) Value: $500,000
Year 1: (-37%) = -$185,000 Loss: Account Value: $315,000
Year 2 (+37%) = +$116,550 Gain: Account Value: $431,550
Can Boomers “Afford” Another 2008?
Do They Have A “Stop Loss” Provision in Their 401(k)?
10. Is Getting “Out of the Market The Answer?”
There are 2 reasons why taking money completely out of the market
Isn’t always the right answer.
1. You still may need some growth between now and retirement .
2. You don’t know when to get back in, and missing a few days could
HURT you.
11. What Do I Do?
Exercise An In Service Distribution
1.Roll 401(k) Into A Product With Protection, Guarantees
and Lifetime Income Solutions
2.Eliminate The Possibility Of Current & Future Loss
3.Eliminate The Possibility of Running Out of Money In
Retirement
16. No Risk; No Loss GUARANTEE
GUARANTEED Growth; Market Upside
GUARANTEED LIFETIME INCOME
Nursing Home Benefit (10%- $46,947 yr)
Typical 401 (k) Fee: 1% - 2%
Our Product:
.85%
2013 avg.
SS Benefit:
$1,230
2013 full
retirement
age benefit:
$2,533
16
Since 2005: 10,000 Boomers per day turn 59 ½ until 2023!!
17. Account Value vs “5% Step Up”
Account Value
$100,000
Actual
Return
5% Step Up
“Income Base”
$103,000
+3%
$105,000
$115,360
+12%
$115,360
$115,360
-30%
$121,128
18. INTELLIGENT WITHDRAWAL STRATEGY WITH AN
INCOME FOR LIFE OPTION
ASSETS:
$500,000
INCOME:
$2,500/MO PENSION or SS
ADDITIONAL INCOME NEED: $1,800/MO
$150,000
0% Avg. R.O.R
$2,083/mo Withdrawal
6 YEAR WITHDRAWAL
ACCOUNT = $0
59 ½ WITH 4 YEARS
UNTIL RETIRMENT
IMMEDIATE
IN SERVICE DISTRIBUTION
INCOME FOR LIFE 10
YEARS FROM NOW
$350,000
4.5% Annual Step Up
10 YEARS LATER:
$543,477 (Income Base)
$2,831/mo for life
**Nursing Home Waiver: 10%
$54,000 year for LIFE.
19. What’s The Client’s Next Step?
1. Contact Your 401(k) to Determine If You Qualify
(Outstanding Loans, Etc)
2. Discover Their Transfer Process/Requirements
3. Gather Additional Data (FNA) to Determine
Suitability
4. Open New IRA Account to Accept Your 401(k)
Transfer
5. Help Us Tell Others About What We Did For You
and It Could Be Quite Profitable….
20. In Service Distribution Compensation
If WE showed our Fixed Indexed Annuity Product to 5
People 59 ½ and still working, how many would roll a
portion or all of their 401(k)?
1 Personal Client:
$250,000 Rollover Volume
Rep:
$3,750 (Part time, just getting started)
District $4,375 (Help us put others to work)
RVP:
$7,750 (Run your own office)
If you could potentially earn $20,000 to $40,000 a year
part-time without jeopardizing your job, would that interest you?
21. Regional Vice President
1 Personal Client:
$250,000 Rollover
Volume
Equals: $7,750
Override:
5 Distict Leaders
$150,000 Volume Each
How many reps do
you want to override?
Equals: $10,125
Bonus: $1,236
Total cash for the month: $19,111
In the 12-month period ending in December 2010, Primerica paid a total of $503,115,928
in compensation to its sales force at an average of $5,296 per licensed representative.
22. GETTING STARTED
1. (IBA) $99 (Life Insurance License)
State Licensing /Exam Fee; Fingerprint/Background Check;Pre-Licensing Class
Actual Cost: $400 - $500
2.
$25/mo for Primerica Online – Online Business Support
Access to Exam Simulator, FNA Software
Your Own Website and Business Reports
Access to Live and On-Demand Video Training
Qualify To Have Securities License (Series 6 & 63) Paid For
Morningstar Financial Analysis Software
Actual Cost: $6,000
3. Personal FNA
Orientation
Identify your Marketing Inventory