This Month:
Schwabe: Settling small estates
If I died today, how would I be remembered?
Aetna unveils consumer-focused brand refresh
Reflections on retirement regrets of 2011
Fripp: Make every word count
Hassett: Exit Strategy: When to sell your practice?
RetireSmart TV; online video series
Dumont: Your image: A game of influence
Ciotta: Improving productivity
When kids take charge: Sparking the life insurance conversation
Desaultel: EOLI- The rules have changed
Estate Settlement Solutions for Small Estates
There is a long list of costs involved, regardless of the size of the estate
By Gregory E. Schwabe, FLMI
Mr. Schwabe, FLMI, is National Marketing Director for First American Insurance Underwriters. Contact him at 800-444-8715 or gschwabe@faiu.com.
With the federal estate tax exclusion at $5 million through 2012, a vast number of estates will not incur any federal tax. Even if the exclusion drops back to the $1 million dollar limit in 2013, the majority of estates will have little or no federal estate tax liability.
On the surface, it would seem there's little need to do estate planning for many clients, particularly if it's clear that their estate will not require a federal estate tax payment.
This is only part of the overall story, however. To ignore estate planning can be a huge mistake since there is a long list of estate settlement costs will have to be paid regardless of the size of the estate. And life insurance is still the best way to cover these expenses.
Clients don't need a seven-figure estate to incur funeral costs, medical expenses, credit card or loan debt, and the variety of taxes and fees that are applied during an estate settlement.
Debt resolution can also include a mortgage, school loans, recurring bills to survivors and unfunded educational costs. In smaller estates, these expenses represent a much higher percentage of the overall estate and can absorb much if not all of the inheritance before it's passed on to family and loved ones. Which asset will they liquidate to pay these bills? How much of a discount will they have to accept on assets that are put on the block?
Funeral expenses can run between $5,000 and $10,000, even by modest standards. End of life medical expenses, whether hospital bills or long-term care costs, can come to another $10,000 and climb to more than $100,000. Income taxes and property taxes must be paid. If all that is not enough, there are 20 states that impose either a state estate tax or a state inheritance tax ranging from 7% to 41% and two states, New Jersey and Maryland impose both. Unless a client has a family member who is an accountant or attorney, there will be legal fees, appraisal fees, executor or trustee costs that need to be paid.
Many believe that having a will is all that's necessary to exclude an estate from probate. Sadly, this is not the case and probate costs are high and will further deplete assets that were intended for family members or charities. Probate can also be a long, drawn out process. Which assets will be liquidated to pay for these expenses? It doesn't need to be this way, however. Probate expenses can be completely avoided with a revocable living trust.
Beyond the pure dollars and cents of settling estates, what happens when an estate must be divided among heirs and the assets are not easily divisible? Again, this is a situation that may require the liquidation of certain assets, which may only serve to undermine the intent of the deceased.
In many cases, not all heirs are interested in owning the assets, especially non-business heirs. What happens when those involved don't get along well? How does a decedent eliminate potential squabbling after dividing the assets? Once again, a life insurance policy can serve to equalize an estate and keep family members from having to liquidate any of the assets.
There's also the fact that it's quite common for clients to have a second or even a third marriage. Each one creates an ex-spouse and perhaps children from that prior marriage. And it's quite possible that the next spouse comes with a built-in family.
How do clients manage their estates to meet the needs of multiple families? Is there still a commitment to an ex-spouse? How do you treat children from a prior marriage versus the children in a current marriage? Trusts should be established for the benefit of spouses, children, and stepchildren. Once established, they can and should be funded with life insurance. This is the best way to manage distributions from an estate.
There are some situations in which a client has a special needs child, and this raises the question of how that offspring will be provided after the death of a caretaker. In some cases, children can be disqualified from some government programs at the death of a caregiver. A trust funded with life insurance can provide assets for medical equipment, for future medical treatment and incidental expenses.
Not all minors are equipped to handle an inheritance and are better served by receiving an income over time. Life insurance proceeds are an easy asset to control for this type of individual. If the grantor is a parent, this can give control beyond their lifetime. Without life insurance, which asset do you liquidate to pay for these expenses?
Without question, clients need to plan for settling their estates regardless of the size. By making those smart decisions today, they can avoid costly expenses and conserve the assets for their loved ones.
As advisors, we can help those we serve minimize settlement costs, while preserving a lifetime of accumulation that they have intended for the families and charities left behind. Estate size should not be a consideration when it comes to discussing settlement costs and the impact they can have on your clients. Make sure you have this conversation with all of your clients, not just the wealthy ones.
from end-zone to end-game
Everyone Needs To Ask: If I Died Today, How Would I Be Remembered?
5'6", 98lbs NFL athlete describes overcoming life's challenges and hardships
Houston, TX. - To friends and family, Vernon Turner is a very private man who is known to be his own worst critic and who finds it difficult to talk about himself. To his fans, he is the talented athlete that played professionally for the Buffalo Bills, LA Rams, Detroit Lions and Tampa Bay Buccaneers. So it was a huge surprise to those that know him to discover he had written the story of his life- a life that had its share of tragedy and dysfunction, but at times was greatly touched by happiness and inspiration.
In The Next Level: A Game I Had To Play! a book that was seventeen years in the making, Turner steps out of his comfort zone and reveals secrets that even some family members were not aware of. That's because Turner made sure people only saw one side of him, the success and accomplishments; he was careful never to show the hurt from childhood events that accompanied his days and haunted his nights.
The Next Level is both a motivating and inspirational story that tells of a young man who had to face insurmountable odds to save his family, and in the process achieve a childhood dream. Turner sees himself as 'a work in progress,' and while he readily admits to making mistakes he has learned that 'my past experiences became my toolbox for future journeys.'
Turner shares the challenges of not only growing up in the 70's in a predominantly African-American neighborhood of Brooklyn, but facing school days and football with his 5'6" and 98 lbs stature. This fascinating and candid account shows readers what Turner's life was like from age five to the present, and what was really going on behind the big smile, moments of pure joy overshadowed by agonizing periods of pain and regret that will be with him forever.
While Turner remembers the good times he and his cousins spent at Nana's house; his beloved compassionate and principled grandmother he openly describes as 'his heart,' he also remembers the bad times with his mother's addiction.
In The Next Level readers get to know the deep thinker who over-analyzes and dissects everything in his life, his family, and some of the amazing individuals he believes were meant to cross his path, learning how this all played an important part in his life.
Turner admits that while writing his book was perhaps one of the most difficult things he has ever done because it forced him to remember things that were long buried in his mind and heart, by sharing his story he overcame obstacles, learned never to miss an opportunity, and now tries to never take anyone for granted. He hopes the messages in his book will connect with readers in a truly inspiring way because leaving his mark and making a difference is extremely important to him. He believes everyone needs to ask themselves: "If I died today, how would I be remembered?"
For more information, please visit: www.vernonturner.com.
Excerpts from reviews on Amazon.com:
“…honest, inspiring tale of hard knocks and beating the odds is a book you will not be able to put down. As a book editor for both fiction and nonfiction alike, I seldom come across riveting stories of this nature - stories written with such heartfelt honesty and insight that linger with you long after you turn the last page. From difficult childhood years to the endzones of the NFL, this autobiographical wonder is a beautiful revelation of the human experience, a look into the amazing life of an amazing man, and an example of what a can-do attitude and a dedicated, goal-driven mindset can do to carry one through all the tackles that life can throw our way. If you need to be inspired, motivated, or simply entertained, get a copy of this book."
Aetna Unveils Consumer-Focused Brand Refresh
New Branding Captures Passion for Helping People Make Confident Choices and Lead Healthier Lives
HARTFORD, Conn. - Aetna (NYSE: AET) has unveiled a refreshed brand promise as the company continues its evolution from an insurance carrier to a health solutions company. The most visible element of Aetna's refreshed brand is a vibrant new look and logo, reflecting Aetna's new vision to the marketplace. Far beyond a look or logo, the revitalization of the brand is focused on driving increased consumer engagement in their health care and empowering people to live healthier lives.
"We want to help make health care work better for everyone," said Aetna Chairman and CEO Mark T. Bertolini. "Aetna's refreshed brand reflects our goal of combining innovative benefits products, game-changing technologies, and collaborative relationships with the provider community to create a system that is more connected, convenient and cost-effective. Aetna is uniquely positioned to deliver on this goal."
As Aetna continues its evolution from a health insurance carrier to a health solutions company, it is reframing its offerings into four benefit-focused categories that connect people to:
- Quality health plans and benefits: plans, products, networks, services, programs and tools that promote individual, family and employee health.
- Healthier living: wellness information, resources and support to help individuals, families and communities thrive.
- Financial well-being: plans, products, services, programs and tools that help people manage their health care spending and deliver financial peace of mind.
- Intelligent solutions: insights and expertise that enhance productivity or business results.
These categories better explain Aetna's current offerings, promote clear, simple and benefit-oriented communications, and provide insight into Aetna's future offerings.
Aetna has already begun bringing its refreshed brand to life with innovative benefits packages, industry-leading resources that help people shop for health care based on out-of-pocket costs and outcomes, and more than half a dozen unique accountable care arrangements. In the months ahead, Aetna will continue this work with the introduction of new mobile applications, access to enhanced resources and information, and even more collaborative relationships with the health care community. Beginning this spring, Aetna’s advertising and marketing campaigns will reflect the vibrant new look and feel of the brand.
"By 2012, half a billion people will use health care applications globally. The message is clear: consumer empowerment is coming to health care," said Robert M. Mead, senior vice president of Aetna Marketing, Product and Communications. "As we continue our evolution to become a health solutions company, Aetna is offering far more than innovative benefits packages that appeal to consumers. Aetna is connecting people to health care information and services in relevant and meaningful ways, helping them do more online and on the go. We're putting the power of health in people's hands, helping them understand their health care and benefits, make confident choices, and lead healthier lives."
Aetna's new logo celebrates the equity and tradition of the Aetna name in a way that is both contemporary and optimistic. Aetna is symbolically reinforcing its 160-year history, its dedication to building relationships with its members, customers and providers and its brand promise of a connected health care experience through the inclusion of a connected 'a' and 'e.' Known as a ligature, the connection of the two letters was used in the Aetna logo for 151 years, before being retired in 2001. It returns today as a unique symbol of Aetna's brand and its heritage. Global strategic branding firm Siegel+Gale advised Aetna on branding and design.
As part of a renewed focus on actively listening to consumers, Aetna also will be initiating the Empowered Health Index. This survey will assess and regularly measure the needs, feelings and behaviors of adult health care consumers. Aetna will release its findings later this year, and will be using them to inform new programs, tools and resources that will help consumers better engage with their health care providers and manage their health and wellness.
About Aetna
Aetna is one of the nation's leading diversified health care benefits companies, serving approximately 36.3 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com.
Opinion
Reflections on Retirement Regrets of 2011
Could you have done more?
By Rick Schmitt
Mr. Schmitt, author of 401(k) Day Trading: The Art of Cashing in on a Shaky Market in Minutes a Day. He has appeared on Fox Business News, KCBS, and Business News Talk Radio, and he is an Adjunct Professor teaching retirement planning at the Edward S. Ageno School of Business at Golden Gate University.
Year end usually presents a good time for personal reflection back to previous excesses that may have lasting consequences. Seldom do ordinarily conscientious folks look back for times in which they could have done more. Only here we are not talking about office parties, but rather retirement savings. Retirement savings habits, however, do present a case where more action attendant to savings, variety, costs, and trading could have brought better investment returns in 2011 and beyond.
Consider the following retirement regrets where more, rather than less, would have been warranted in 2011:
Saving too little too late
Financial planners recommend individuals save at least 10 to 15 percent of pay each year for retirement, and more if you are older. When you save through a retirement savings account, like a 401(k) plan, you may not only be able to defer taxes on the portion of your pay you contribute to the plan, but you may also get the benefit of a company match on some or all of your contributions.
Every year you save too little or put off saving increases your future savings burden needed to meet your retirement goals. Ongoing contributions on a regular basis build capital upon which investment earnings may accrue and thereby reduce the need for future contributions. Contributions into a stock fund through regular payroll withholding at regular intervals also offer the beneficial effect of dollar cost averaging, where more shares of stock are bought when share prices are low and less when share prices are high.
In 2012, when in doubt, save more.
Putting all eggs in one basket
Conventional wisdom suggests diversifying investments among stocks, bonds, and cash so as to minimize risk. The thinking goes that when one asset class tanks, another one may respond with more favorable investment returns. In 2011, an investment in a U.S. stock index fund like the Standard & Poors 500 index fund would have generated a return of next to nothing. Cash was not much better. However, a prescient investment in bonds, like those in the Barclays Aggregate Bond Index, yielded a total return of almost 8% during 2011. Absent an ability to pick only winning asset classes, portfolio diversification makes sure you do not miss out on favorable returns in one or more asset classes when other asset classes do not fare as well.
In 2012, prudently diversify the investment of retirement savings among stocks, bonds, and cash.
Burying head in sand when it comes to paying fund fees
Fund fees skimmed off the top of your retirement savings can range from a few basis points (hundredths of a percent) to 2% or more per year. Furthermore, studies show that the more expensive actively managed funds do not necessarily beat the market on a consistent basis. Therefore, you could be paying $2,000 more in fund fees for $100,000 held in an inferior actively managed fund than in a passively managed fund based on a market index. Over time, your retirement portfolio will suffer considerably from these higher fees if left unchecked.
In 2012, seek out the lowest cost funds that meet your investment objectives.
Setting-it-and-forgetting-it
When it comes to investing retirement savings, most folks let it ride. Even when offered almost 20 fund options on average in which to invest, almost nine out of ten individuals make no changes in the direction of their retirement savings plan account investments. In the current type of end-up-where-you-started stock market, such a buy-and-hold approach applied to retirement savings yields nothing to a stock investor.
Conventional investment advice suggests periodic rebalancing of a portfolio whose asset classes have risen (or fallen) at different rates. This rebalancing produces the favorable result of buying underweight asset classes at low prices and selling overweight asset classes at high prices.
If the number of fund choices is holding you back in the management of your retirement savings, simplify your life by investing some of your retirement savings portfolio in just stock and cash fund options. Then to take advantage of market volatility, consider applying a form of rebalancing to your retirement savings portfolio every day. You buy some stock each day the market is about to close lower, and sell some stock each day the market is about to close higher. Better yet, each fund exchange under this so-called 401(k) day trading approach does not trigger immediate taxes or direct trading costs when properly carried out in a retirement savings portfolio. Although more suited for the long-term, a 401(k) day trading strategy beat a buy-and-hold approach applied to retirement savings held in the bumpy S&P 500 index by nearly 4% during 2011.
In 2012, consider 401(k) day trading your retirement savings portfolio by making daily fund exchanges between stock and cash funds to make the most out of a volatile market headed in no apparent direction.
Make 2012 a year in which you help yourself to a better retirement. With the new year comes an opportunity to correct 2011 retirement savings management regrets by saving, diversifying, cost-monitoring, and trading more within your retirement savings portfolio.
Make Every Word Count: Be a Memorable Speaker
Your goal should be to always say something that will be remembered and repeated
By Patricia Fripp, CSP, CPAE
In sales, what would happen if your prospects could vividly remember why others choose to do business with you? Would it be profitable for you if they felt that you were more focused on their needs than your competitors? You can have that impact with a memorable pitch, or speech. If people are making hiring decisions for consulting contracts or a large investment, they are probably going to be discussing with a team or committee what they heard from various vendors, consultants, or sales professionals. Your goal is to have them remembering and repeating your key ideas and benefits: you need to be a memorable speaker.
Your goal should be always to say something that will be remembered and repeated. If we ask audience members, "Who was the hit of last year's convention?" usually they can recall the topic and that it was entertaining and dynamic, but if they can recite your key points, profound statements, or even that you appeared to know exactly what their lives are like, you've made yourself memorable. To be remembered and repeated, you need a simple structure for your speech. The following tips will help you construct your speech so that you and it will not be forgotten.
Organize
Is your presentation content organized in a logical way? Is it easy for you and your listeners to follow? The creative process is messy: brainstorming what ideas, stories, and concepts will go into your presentation. However, you or your audience will not remember your key ideas unless your presentation is arranged around a central theme or premise and the talking points that make that case. Think of them as your points of wisdom. Each point can be illustrated with your examples, case histories, and statistics. Even if you have short sentences, visual words, and great stories, if it's difficult to keep track of exactly where you're going, your audience isn't going to remember and repeat your ideas.
At the beginning of a three-hour seminar, an expert said, "I will be addressing twenty talking points." That is a lot for an audience to try to remember, but his content was amazing and his stories were wonderful. However, fifteen minutes before closing, he introduced key point three. Do you think the audience was able to remember and quote his key points? Because of no strong structure, no one could remember his points without looking at their notes.
Analyze
Listen to a recording of yourself, and even consider having a transcription of your presentation. Look for ways to be clearer, sharper, and more eloquent. What about sentence length? Do you run on and on, that may be considered natural in casual speech? Can you use shorter, more memorable sentences?
In the case of the previous expert, in his speeches on CD, his key points were unforgettable. The material was flawlessly organized, with no digressions or confusing irrelevancies: the content of his speeches had been skillfully edited. Repetitions and digressions had been deleted and material rearranged to move those common "Oh, wait, I forgot to tell you" to the correct section. All the 'ums' and 'ers' were gone. It was a truly professional presentation!
With many of my own presentations, I send an MP3 to a transcription service, telling them I want every 'er,' 'ah,' 'um,' 'you know' everything that came out of my mouth or my client's. This helps us see what speech patterns, habits, or lack of clarity we need to fix, the first step to analyzing.
Edit
A commonly misused synonym for 'delete,' 'edit' actually means, 'to correct, revise, or adapt.' Correct by filling in any unintentional blanks in the logic of your speech. Revise by deleting repetitions, digressions, fuzzy phrases, and meaningless clichés (For example, 'today' is the most overused, impact-diluting word in business communication.) Adapt by framing the material for your specific audience. It is important you address your subject from the audience's point of view or interest.
Most presenters, even executives, are great once they get started; however, surprising few know how to start with impact. A sales executive was reviewing her content for a very important webinar. Her visuals were fabulous and her speech was very well structured; however, her opening and close were the low points. Her opening line was, 'I'm very glad we're talking about this today.' Wishy-washy!
A good idea would be to open with her key idea: 'If you can't negotiate, you'll never close the sale.' She could also make it a question and involve the audience with the answer: “Why do negotiations get less attention than other business skills? Because people equate 'price' with dollars."
Specify
Using specificity builds credibility. Speakers can immediately improve their speeches and articles by using words that are more precise. For example, you say, "I went to a networking event and walked out with bunches of cards of good prospects." A 'bunch' should only refer to grapes. How big and useful was the pile of cards in your hands? However, if you say, "I left with two dozen cards, at least fifteen of them good prospects," you have given a specific idea.
My pet peeve is the word 'stuff.' Always use explicit language- 'research,' 'experience,' 'leading edge strategies' or 'technical formulas,' whatever is relevant. Specificity makes you sound valuable; much more so than 'things' or 'stuff.'
If your goal is to be remembered in your keynotes, sales conversations, or presentations, use these techniques to be powerfully pithy! After all, what would it mean to your business if every time you spoke you engaged, inspired, informed and were a resounding success?
Ms. Fripp is an executive speech coach, sales presentation skills trainer and keynote speaker on sales, memorable presentation skills and executive communication skills. She is Past-President of the National Speakers Association. She can be reached at PFripp@ix.netcom.com.
Exit Strategy
How to Maximize Value When it's Time to Sell Your Practice
by Stephen Hassett
Mr. Hassett is a corporate development executive with Sage North America, a subsidiary of The Sage Group plc, a leading global supplier of business management software and services. He is the author of "The Risk Premium Factor: A New Model for Understanding the Volatile Forces that Drive Stock Prices"
When many people think of the stock market, they conjure up images of the 1987 movie Wall Street complete with the crazy of Charlie Sheen. The truth is far from that. Over long term, the market is in fact, not only rational, but it is easy to understand and almost reptilian in response to readily observable factors. The ways of the market are actually simple and straight forward.
This article will explain the main drivers of the stock market and show how understanding them not only makes you a smarter investor but a better manager and give you the keys to driving value in your own business. Many business owners only think of getting their businesses ready to sell when they're ready to sell. At this point it's too late. A history of top and bottom line growth are the keys for driving value.
You've spent years building your business and for whatever reason you are ready sell it. How do you maximize value? Unfortunately, you may be too late. The value creation process needed to start years ago and short-term fixes may actually make things worse. In order to understand why, it helps to start with the stock market. When many people think of the stock market, they conjure up images of the 1987 movie Wall Street complete with the crazy of its co-star Charlie Sheen. The truth is far from that. Over long term, the market is in fact, not only rational, but it is easy to understand and almost reptilian in response to readily observable factors. The ways of the market are actually simple and straight forward.
To maximize value you want to have sustainable growth and strong cash flow (earnings). It's that simple. Instead, many people believe the market is almost arbitrary in assigning values. This leads to bad decision making.
One of the main metrics used to compare values between companies is the P/E ratio, which is simply the value of a company divided by its earnings or the share price divided by its earnings per share. If Company A earns $1.50 per share and its stock price is $15.00 then its P/E ratio is 10. If Company B's stock price is $30 with the same $1.50 in earnings, then its P/E ratio is 20. This implies that for every ten cents per share that Company A adds it will increase its share price by $1.50, while Company B will increase by $3.00. So obviously you want a high P/E ratio, but how? Why aren't all dollars the same? Why do some companies command a premium?
To answer these questions and understand what drives P/E ratios it helps to look at the stock market as a whole. The P/E ratio of the stock market can be explained by a very simple formula: P/E = 1 divided by cost of capital less growth or P/E = 1 / (C - G). If your growth rate increases so does your P/E ratio and your company becomes more valuable. For example, let's say your cost of capital (investors' expected return) is 10%, if your expected long term growth rate is zero, then your P/E ratio is 1/(10% - 0%) or 10. If you increase your growth rate to 5%, your P/E ratio jumps to 20 and the value of your company doubles. It's that simple, higher growth means higher P/E and higher value.
Before going any further, it helps to understand what this growth rate means. It is the expected long-term growth in earnings or cash flow, meaning that on average your investor expects the company to grow at this rate forever. Now here is a mistake that many people, even sophisticate investors, make. They don't grasp that the growth rate is based on investors' long-term expectations for the future, not what you did last year and not what you expect to do next year. Misunderstanding this can cause serious problems. If you have grown earnings over the past several years by cutting cost and not growing revenue, investors are not going to be convinced you have a long-term growth story because you can't cut costs forever. In order to have a good growth story, you need to show the ability to growth the top line and the bottom line.
Investors have to believe your story.You won't get credit for growth, if they don't believe it's sustainable. Creating the growth story takes time, which is why starting when you're ready to sell is too late. If you want to show bottom line growth by beginning to cut costs a year or two before you're ready to sell, rather than creating a growth story, you many destroy value by making decisions that sap your top line growth. Here's how.
Let's assume your business has been growing at a modest 5% per year and earns $1 million. If a would-be buyer believed that you could sustain that growth, we could expect them to pay you 20 times earnings (1 / 10% - 5%) or $20 million. Rather than take the $20 million, you decide to boost earnings by cutting sales expense by $500,000 and the result boosts your bottom-line at the expense of revenue growth which drops to zero. The savvy investor will see that you have a healthy $1.5 million in earnings but no growth. Since you can't cut costs forever, they may assume your long-term growth rate is zero. The result is that your P/E ratio drops to 10 (1 / (10% - 0%), so the value of your business actually drops to $15 million despite the increase in profits.
Not only do investors value growth, but they are smart. M&A professionals know the difference between sustainable and unsustainable growth. Simple common sense says the best way to create that growth story is to start early and invest wisely. Less wide known is the fact that your growth story is one of the most important drivers of value.
Marketing Innovation
MassMutual Retirement Services Launches
RetireSmart TV, Online Video Series
Farnoosh Torabi Speaks to Everyday Americans On Credit, Healthcare, College and Retirement
SPRINGFIELD, Mass., - MassMutual Retirement Services recently launched RetireSmart TV, a new series of short online videos spanning key financial topics such as the importance of good credit, affording healthcare, ways to save for college, and how to prepare for retirement.
The first 10 educational videos, each approximately two minutes in length, feature Farnoosh Torabi, independent Generation Y money coach, best-selling author and personal finance journalist, talking with everyday Americans about being RetireSmart with their individual strategies surrounding:
- Keeping tabs on credit
- Staying on track to reach their retirement goal
- Assessing their current retirement strategy
- Getting an early start to saving for retirement
- Ways to pay for college
- Envisioning their retirement future and important lifestyle considerations
- Getting help with retirement planning
- Affording healthcare
- Reaching their retirement goal
- Understanding mutual funds
"People today are reading less and watching more online video and webisodes, with Americans spending nearly three and a half hours a week watching online video," says Kris Gates, assistant vice president of participant and interactive marketing for MassMutual's Retirement Services Division. "We have engaged with Farnoosh to create a series of 10 edutainment videos to connect with our participants in a new and exciting way," adds Gates.
"I can't wait to see the positive impact these videos have on our participants," says Hugh O'Toole, senior vice president of sales and client management for MassMutual's Retirement Services Division. "We look forward to integrating RetireSmart TV into our on-site educational meetings to show that our participants, along with most Americans, are all in the same boat when it comes to understanding these complex topics, and that MassMutual is here to help them prepare for a strong financial future," adds O'Toole.
"We are so excited to launch these RetireSmart TV online videos to further connect with our participants," states Elaine Sarsynski, executive vice president of MassMutual's Retirement Services Division and chairman and CEO of MassMutual International LLC. "It was a pleasure to work with Farnoosh and gather invaluable feedback from everyday Americans. Through her informal conversations 'on the street,' we were able to hear firsthand how Americans feel about these important financial topics, and provide simple, easy-to-implement strategies to help them assess their current situation and prepare for a successful retirement," adds Sarsynski.
The RetireSmart TV videos can be accessed here.
About MassMutual
MassMutual's Retirement Services Division has been serving retirement plans for 65 years. It offers a full range of products and services for corporate, union, nonprofit and governmental employers' defined benefit, defined contribution and nonqualified deferred compensation plans. It serves approximately 1.3 million participants.
Your Image: A Game of Influence
Understanding executive presence and being covertly sexy
By Sandy Dumont
Sandy Dumont is an image consultant who speaks on the subject of image throughout the world. She just launched a boxed set of products to ensure that you and your employees look influential and powerful. More info at www.TheImageArchitect.com.
There are three centers of influence in the U.S. The first is New York, home of the powerful financial center, Wall Street and international banks. Second: Washington, the political center of influence. The third great center of influence is Hollywood, whose influence reaches far beyond the big screen. Rock stars and some celebrity athletes and fashion models are included in this category of powerful influencers.
Hollywood is the only group that can afford to look very, very sexy and outrageous. It goes with the territory. Not all forms of influence are positive, and some stars do their fans an injustice with their outrageous behavior and appearance. Politicians and bankers who land in jail will find their careers ruined. Not so with celebrities. As long as you remain 'beautiful' you are forgiven. In fact, most of us are secretly attracted to the 'bad boys' and 'bad girls' of Hollywood. It's another story for politicians and business people. Being attractive may get you elected, but it won't get you out of jail.
If you're a serious business professional or politician, these attributes will help you:
An image that conveys immediate credibility and trust
- Executive presence that says you are an expert and a leader in your field.
- Charm and charisma. If you weren't born with these attributes, make every effort to develop them.
- An attractive appearance. There are no unattractive people, only those who haven't learned how to look attractive. In addition, make sure you know the difference between being 'overtly' and 'covertly' sexy. The former is the kiss of death outside Hollywood, and the latter is the icing on the cake in terms of your image- and it has nothing to do with Hollywood glamor.
If you're in the financial services sector, your dress code is much more rigid than that of politicians, sales managers, business executives and CEOs. Stick to white shirts, dark suits and power ties. You're the only one who doesn't look severe in pinstripe suits, because it says you're a member of the 'tribe' and the tribe appreciates the resemblance between ledger sheets and all those long 'columnar' stripes seen on pinstripe suits. Outside the tribe you'll look like Mr. Stiff Suit, so keep that in mind.
So what does it mean to be covertly sexy? Here are the guidelines:
Covertly Sexy
A man's dark, well-tailored business suit is innately sexy. It makes a man's shoulders look broad and his torso look slim, while the dark color from head to toe makes him appear taller and slimmer. Add a red power tie and you've just increased your sexiness ten-fold. For financial services arena, make that tie a dark red or a burgundy. According to university studies, a high status look attracts females in all of the animal kingdom, not just humans; and red is sexy personified in color psychology. Women have endless possibilities in terms of items that are covertly sexy. Just take lips, hair and eyes for a start. Of course, not all hair is sexy and alluring, only those locks that look healthy, radiant and stylish. Some religions require head scarves so that a long, gleaming head of lustrous hair doesn't become so irresistible that it can corrupt. As for lips, there is nothing more alluring than full, pouty lips that are rich with color. Smoky eyes also draw others in irresistibly, just as Mona Lisa's smoky eyes do. Lastly, a woman's hourglass shape is innately sexy, as are the shape of her legs. A skirted suit that is tailored is both commanding and covertly sexy. A baggy 'daddy jacket' and mid-calf skirt lowers credibility as well as your perceived attractiveness.
Avoid at All Costs
- Khakis. They look baggy and make a man look sloppy and heavier. Most women dislike them.
- Polos. Unlike dress shirts with their built in epaulets, polo shirts are limp and make the shoulders look sloping, so you look weary, especially in drab colors.
- Drab colors. They make you appear tired and even older. This includes olive green, drab shades of brown and burgundy, mustard and slate blue.
-Five-inch heels. They cause you to walk precariously, and it's not an asset in business. Gladiator styles aren't even remotely attractive, since they cover most of the foot, making the legs appear shorter and even stubby. Mid-calf and ankle-length skirts. They make you appear weighed down by their length and create a long, severe line.
What kind of influencer are you? You can increase both your power and your ability to influence if you know the rules of the game when it comes to image.
Improving Productivity
5 Ways to Identify Your Staff's Motivating Factors
By Diane Ciotta
Ms. Ciotta is the founder of The Keynote Effect, where she presents a passionate message of accountability and encourages activities to conquer complacency. She is a professional speaker and co-author of the book, Pushing to the Front, with Brian Tracy. She can be reached at di@thekeynoteeffect.com.
What's In It For Me? This common phrase exemplifies the reality of how people are primarily focused on the things that matter most to them. This is well depicted in the story of a young car salesman who enthusiastically shared with his 75-year-old female prospect the feature of how the new model SUV's spare tire bin was designed to double as a beer cooler; perfect for tailgating!
It is human nature to try to motivate another person from the same basis as one's own perspective. However, being motivated is an internal effort and therefore arguably cannot be instilled in someone else; rather, it must be self-induced. A well-known athletic apparel company's logo simplifies the act of 'just doing it' and this would be a whole different world if everyone just did. Unfortunately, when it comes to managing employees, motivation is not a one-size-fits-all concept.
Different people are motivated for different reasons both personally and professionally. Particularly where employer/employee interactions are concerned, understanding an associate's individual motivating factor can enhance coaching opportunities and improve productivity while reducing turnover.
Five common motivation factors are:
Compensation
Show me the money! This phrase is often heard at casinos around the world, but is also often the mindset of an employee that has a purely financial perspective on employment opportunities. This is especially common amongst people in commission-based positions. A professional that is motivated by money is less concerned about title, perks or even recognition. Instead, they operate from a 'put it in my paycheck' mentality. Their philosophy is that if they can't cash it, it has no real value. This employee is usually self-motivated and as a result, often does not need a lot of coaxing to perform. They respond best to cash reward-based spiffs and bonuses which can be offered as additional incentives.
Advancement
A 26-year-old college graduate was convinced that he was making the right decision to turn down a position with a well-established corporation offering him a salary $15,000/year more than the start-up venture group that was also interested in him. His decision was based on his theory that it's not just about the money. His desire to learn and grow in his new position with the start-up outweighed the income potential of the corporation. An employee that is motivated in this way genuinely thrives on the concept of moving up the corporate ladder. Offering constant reinforcement of advancement opportunities and highlighting examples of internal promotions are excellent ways to maintain a high level of motivation for this associate.
Recognition
From The Grammy's to The Emmy's and from horseracing to reality TV shows, our culture has trained us to focus on first place. Is it the sense of accomplishment or the bragging rights? Perhaps a little of both! Most contenders just aren't as excited about the silver medal or being the runner-up. Sadly in fact, second place has been referred to as 'the first loser.' Despite society's perspective, for some people, simply receiving accolades for the effort of a job well done at any level is their motivating factor. Recognition builds self-esteem and confidence while setting a positive example for others. In the workplace, a photo on a wall, a designated parking spot or a shout out at the department meeting can mean more than a bonus to the employee motivated by recognition and usually doesn't impact the company budget.
Security
The well-known definition of insanity is to do the same thing over and over and expect a different result. On the other hand, doing the same responsibilities over and over with a consistent result is considered job security. There's an old joke about a 40-year-veteran accountant who would start every day by looking in his top right-hand desk drawer. After his retirement, his associates were anxious to see just what it was that he peaked at daily. Upon looking, they found an old index card that read: 'credits on the left...debits on the right.' In the case of the security seeking employee, minimal change implies safety and increases motivation. When assured often that their position is valuable and necessary for the long term vision of the company; it reinforces a comfort level and encourages maximum effort.
Personal Satisfaction
If the dream is big enough the facts don't count. An aspiration, a personal objective or a self-established goal is the greatest encouragement to the employee that is more motivated by personal satisfaction than money, advancement, recognition or security. It is common for this employee to be willing to commit to activities that are beyond the call of duty in an effort to move closer to fruition of their own desire and not for any 'at-a-boys' from the boss. In coaching this team member, gain a respectful understanding of their personal agenda and offer support to focus on what is necessary to accomplish those individual objectives which will simultaneously attain professional goals.
Identifying one's own motivating factor can be the trigger to hitting a goal. Recognizing what motivates others will have a positive impact on the process of building good relationships both at the office and at home.
Professional Hockey, College Football, and UConn Basketball Sponsorships Renewed in Key Markets
NEW YORK, - New York Life Insurance Company announced today the extension of its professional hockey, Southeastern Conference college football, and University of Connecticut men's and women's basketball sponsorships.
This season's professional hockey program includes renewal marketing deals to support New York-area teams: the New York Rangers, the New Jersey Devils, and the New York Islanders. Additionally, the company has renewed its deal with the New England Sports Network in Boston for a sponsorship of the Boston Bruins. The advertising program will be executed through both traditional media integrations in-arena and on television. For every regulation game that ends in a tied score, television viewers will see New York Life's 30-second Selfless Gift commercial, then the five-minute overtime period commercial-free, with the company's signature blue box logo onscreen throughout. Additionally, at-home viewers will see New York Life's logo on the glass for all Rangers home games.
The company's Southeastern Conference college football sponsorships include 30-second television spots during each game, and the New York Life logo superimposed on the field alongside the first down marker four times each game, including the SEC championship game. Additionally, New York Life has renewed its sponsorship of the University of Connecticut men's and women's basketball teams, which includes the company's blue box logo on the court during all basketball games played at both the Gampel Pavilion and the XL Center. The company's ads will also appear on courtside and baseline signs.
The sponsorships are part of New York Life's In the Game advertising strategy, in which the company's brand is integrated into the game, raising brand awareness. The New York Life sponsorships are in their third year, joining the company's Safe and Secure Major League Baseball sponsorships, which aired for the 2010-2011 season. The company is also continuing its sponsorship of Consuelo Mack WealthTrack, the respected public television program devoted to helping Americans build and protect their wealth over the long term.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody's Investors Service (Aaa), Standard & Poor's (AA+). Headquartered in New York City, New York Life's family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Go to www.newyorklife.com for more information.
Marketing, and making sense to, a new generation
Millennials Feel Most Confident about Insurance Benefit Decisions
Yet May Be the Most Under-insured Generation
Despite Sharp Increase in Online Enrollment, Only 32% of employees say they carefully review benefits details and options
NEW YORK, NY - November 10, 2011 - According to research from The Guardian Life Insurance Company of America, one of the nations largest mutual life insurers and a leading provider of employee benefits, Millennials are by far the most confident about their ability to make the right benefit decisions, with 96 percent feeling 'highly confident' versus 66 percent of Gen Xers and 64 percent of Baby Boomers. Additionally, nearly 80 percent of employees spend less than a total of two hours evaluating their insurance benefits options, including group medical, dental, life and disability insurance.
Only 32 percent of all employees described their approach to open enrollment as one that incorporates a 'careful review' of their benefits details and options. Millennials are more likely than their older co-workers to say they carefully enrolled in available benefits options (50 percent vs. 30 percent of Gen Xers and 31 percent of Baby Boomers). Yet research indicates that Millennials may be under-insured. A smaller percentage of Millennials (78 percent) are currently enrolled in available benefits as compared to their older colleagues (92 percent), particularly life (48 percent vs. 71 percent) and disability insurance (53 percent vs. 68 percent).
While online benefits enrollment has become the new normal - with its use more than doubling in five years to 62 percent - many of the same communication and engagement challenges still persist. A majority of workers, regardless of age or life-stage, say they try to better understand their benefits options by reading their benefits materials (77 percent) and reviewing their prior year's selections (66 percent), however, a minority reported that they have attended benefits meetings (37 percent), spoken with a benefits advisor (29 percent), used online planning tools (28 percent) or spoken with a carrier representative (14 percent) prior to enrollment.
"Most employees are not taking full advantage of available company resources to help them make informed decisions about benefits. In fact, employees' benefits engagement and decision-making has not substantially improved with the advances in technology, despite the convenience it offers," said Chris Swanker, Vice President, Worksite and Sponsored Markets for Guardian. "As this do-it-yourself attitude continues to prevail, it underscores the critical opportunity companies have to evaluate and alter their communication strategies to better engage and educate employees about their benefit offerings."
While some challenges continue, the research found that online enrollment can help improve employee perceptions of employer benefits communication and education efforts. 61 percent of workers who used an online benefits enrollment tool and found it to be a very easy process gave top ratings to their employers’ benefits education and communication efforts, compared to 35 percent of others.
To improve benefits communication and education efforts, Guardian recommends employers take a three-step approach to aligning communication strategies to their organization’s needs, preferences, culture and goals. This includes:
- Audit: Review all current materials, communications and approaches. Understand what's working or not working. Find out what channels are most useful to employees. Assess what engages employees and why.
- Test: Assemble your future strategy by building on successes and stopping activities that don't have value. Resist going 'all at once,' test one new idea / tactic at a time.
- Measure: Evaluate each new tactic and determine what success means for each. Incorporate results and feedback into future initiatives and refine measurements as you go.
The full research study can be viewed in its entirety here.
Guardian has launched a multi-carrier online enrollment platform as part of their EnrollmentWorks program. This new system enables organizations of 50 or more employees to manage their benefits carriers with a single online system. For more information, visit here.
About the Survey
Benefits & Behavior 2011: Spotlight on Enrollment Trends presents the findings of a telephone survey conducted among a national probability sample of 2,000 adults. In total, 874 adults qualified to answer questions pertaining to their employee benefits: 469 men and 405 women, all of whom are 18 years of age and older, living in private households in the continental United States. Opinion Research Corporation of Princeton, N.J. conducted the interviews from August 25 - 27, 2011.
About Guardian
A mutual insurer founded in 1860, The Guardian Life Insurance Company of America and its subsidiaries are committed to protecting individuals, business owners and their employees with life insurance, disability income insurance, dental insurance products, and offer funding vehicles for 401(k) plans, annuities and other financial products. Guardian operates one of the largest dental networks in the United States, and protects more than six million employees and their families at 115,000 companies. The company has approximately 5,000 employees in the United States and a network of over 3,000 financial representatives in more than 80 agencies nationwide.
For more information about Guardian, please visit The Guardian here
A window of opportunity?
Only Half of Consumers Are Aware
that their Multi-Line Carrier Offers Life Insurance
Lack of resonance, urgency
WINDSOR, Conn., Nov. 7, 2011 - While 95 percent of the multi-line companies represented in the survey offer life insurance, only 48 percent of consumers are actually aware that they can buy life insurance from them; additionally 87 percent of consumers surveyed said they have never spoken to their multi-line agent about life insurance (chart).
"There is an obvious disconnect. In past surveys, 90 percent of LIMRA's multi-line exclusive agent (MLEA) panel said they always let clients know they can help them with their 'auto, home, and life insurance needs' during the first conversation or meeting," said Laura Murach, assistant director, LIMRA Distribution Research. "Perhaps it's not that sales agents are''t bringing up the topic of life insurance; but rather, the conversation is not resonating with potential clients enough to respond - or even to remember the conversation."
The report, The Insurance Cross-Purchase Survey, examined the results of a survey of more than 4,000 people to understand their purchase behaviors and why people do or do not buy life insurance from their multi-line company.
The study found that while 63 percent of participants own life insurance, only 19 percent own it with the same company as their automobile insurance. The study also revealed that almost 1 in 3 people who buy life insurance from a company other than their auto insurance company do so because they are not aware their multi-line company offers the product.
Cross selling life insurance to property-casualty customers has long been a part of the multi-line strategy. Yet despite companies having the products, capabilities, and access, multi-line household penetration rates remain relatively low. In fact, in a separate study, LIMRA research shows that only eight percent of 64.3 million households from 13 multiple-line exclusive-agent (MLEA) companies own automobile, homeowners and life and/or financial products with the same company.
Fifty-three percent of consumers surveyed said price contributed most to their decision to purchase auto insurance. However, only14 percent say price is the single factor that contributed to their purchase decision. Aside from price, people buy life insurance with their multi-line company mainly because the products are well-suited to their needs (47 percent) and they trust the company's reputation (44 percent).
How important is company reputation when it comes to purchasing insurance?
It's one of the most influential factors in a consumer's purchase decision - whether they buy auto or life insurance. In fact, 61 percent of respondents who purchased life insurance from their multi-line company (19 percent of total) did so because they trusted the company's reputation; 56 percent cite their trust in their agent; 48 percent say the price was right and 41 percent mentioned that they bought the product because they considered it was the best. Regardless of age, people say company reputation is more important to them when purchasing life insurance than it is when purchasing auto insurance.
Timing is another factor the survey uncovered. Of the people who purchased life insurance from their multi-line company, 41 percent discussed it when they first met with the agent. But only 21 percent of those surveyed said their agent brought up the topic of life insurance. In fact, nearly two thirds of those surveyed whose life insurance is with their multi-line company initiated the conversation about life insurance with their agent. Most consumers said a change in their personal situation spurred the discussion.
"It's clear that consumers are open to the idea of buying life insurance from their multi-line carrier," noted Murach. "Insurers just need to remind their producers of the importance of talking to their clients early in the process and making them aware of the risk products available to them."
Making a case for getting 'jacked'
Passion is Required for a Winning Culture
Lesson #1: Do something you love
By Nathan Jamail
Mr. Jamail, author of The Playbook Series, is a motivational speaker, entrepreneur and corporate coach. Visit www.NathanJamail.com .
Passion is one of those words that many people love to use but very rarely do they actually demonstrate it themselves. It easily can be the reason for almost any person or organization's success. Passion fuels everything good about a person or an organization, so why is it so hard to find people that are passionate about their jobs or the product or service they sell?
In most organizations, every leader can name a few of their great employees or bosses that have immense passion and will state 100% of the time they wish that all of their employees would have that same passion. The same can be said of employees who wish their leader had more passion. Although not everybody can be passionate about their job or their business because some people just do not follow their passion (rather they follow a paycheck), as a leader one should strive to have most employees passionate about what they do. This is not an easy concept, but most things that make people and organizations great are not easy - that is why they are great. There are a few things that individuals and leaders can do to make passion a mandatory part of their culture.
Do something you love
A person once said that you couldn't really do what you want and will probably never get a job you love so just find one that pays well and try to learn to like it. This couldn’t be further from the truth. There are millions of ways to make a living in this world, so do something you love or love what you do. A person’s passion will create value for customers, resulting in revenue from a customer or organization. In some cases, a person may not be passionate about the actual product or service they sell, rather they are passionate about the task of selling, helping customers or having personal success.
Being passionate has very little to do with what a person does and everything to do with why a person does it. Every decision made in life (hiring decisions, buying decisions, career decisions, etc.) can be based on our emotions. Every person and every leader should strive to find the passion in their jobs and careers. People work for money, but when a person has passion for their work, they will gain a lot more than just money.
Make passion a job requirement
Some could argue that passion and attitude are subjective and cannot be measured or fairly managed, which could be true in some cases. Most leaders can look at their team and easily identify the members that are passionate about their career and the organization, and in almost every case, those people are the most successful. The leader's job is to help those without passion find it in their current role or help them find a role within the organization they can be passionate about.
If a leader wants their entire organization to be passionate about their job, they must make it mandatory. How serious should a leader be about making passion mandatory? Should a leader fire their top performer if they lack passion and don't have a desire to be better regardless of their results? In most cases they won't, but in time that top performer's results may decline as the results catch up with their lack of passion.
Encourage passion
Passion is not an emotion that is taught, rather it is the result of a person doing the right job or having the right career. Leaders don't necessarily have to mandate passion out of each person like being told to get to work on time, but they should recognize those individuals that lack the passion and strive to help them find it in their position. In today's economy it is not always enough to do a good job or know your business. A person and organization must have the passion to pass on to others. Passion is the fuel for an organizations success no matter what industry, region or economy one is in.
to build and grow every aspect of business
Changes in available technology are happening at a staggering pace
NEW YORK, Oct. 24, 2011 - Robert A. Kerzner, president and CEO of LIMRA, LOMA and LL Global, opened the 95th LIMRA Annual Conference challenging the more than 500 financial services executives attending to better leverage the power of social media, mobile devices and other technological advances to grow life insurance and investment sales in the future.
"The changes in available technology are happening at a staggering pace" said Kerzner. "Do you think there is any way iPhones, iPads, Droids and other mobile devices are not going to materially change our business model? Is it realistic to think that this type of device-to-device communication won’t change how people buy our products?"
Kerzner suggested that the industry must leverage these advances to find ways to increase productivity from our existing distribution so they can close many more sales per year; to find new sources of distribution; and to reach the consumer directly and frequently in new and different ways.
From recruiting, hiring and training producers, marketing and communicating with consumers to data collection, Kerzner described how current technology is being used in other industries and how it can be adopted to improve and expand the business model of the financial services industry to better align with how people are living.
He showed the audience examples of online job fairs and how some companies are using social media to attract new candidates both in the field and at the home office. Kerzner encouraged the industry to train their producers differently, using mobile devices to provide on-the-spot lessons and mentoring.
According to Kerzner, communicating with consumers needs to change. "Many of our companies continue to post lots of pages of text on their websites and wonder why no one's really getting the message. I'’s not just the younger generations who play games online - consider if we incorporated our messages into games like Angry Birds."
"Gen X & Y consumers want to buy differently-– they want to retain control," noted Kerzner. "What if we invert how we think about prospecting, really turn the model upside down?" Kerzner then showed a video portraying how future customers will not wait to hear from an advisor but will search online for an advisor that closely meets their needs, reading online reviews from past customers and friends. He asked the audience: "Are you ready for something like this? Are you training your reps on social media?"
Throughout his remarks, Kerzner provided examples of how social media platforms like Facebook, Twitter and LinkedIn could be used to reach new customers, collect data and get referrals from satisfied clients. He advised that insurers not allow negative distractions prevent them from reevaluating how they conduct every aspect of their business and see if they can improve.
"Growth is the imperative," closed Kerzner. "We must embrace the new world and make it ours."
The 2011 LIMRA Annual conference theme, Transform Potential Into Performance, focuses on what leaders can do to capture emerging opportunities and innovate their business strategies to secure future, sustainable growth for their organizations. This event provides a unique opportunity for attendees to share their experience and knowledge with their colleagues and counterparts.
More than 500 top executives from LIMRA member companies throughout the world attended the industry's most preeminent meeting.
New GEICO app gives Facebook users access to their GEICO policies
WASHINGTON--(BUSINESS WIRE)--GEICO understands how customers want to handle their insurance business these days - easy and fast - so it is launching a new GEICO Facebook app called 'GEICO Shortcuts,' to give GEICO policyholders access to their insurance information using the functionality of the popular social networking site.
"Facebook's dramatic growth has significantly changed the way people consume information," said Steve Smith, GEICO assistant vice president for information technology. "We've created an app that makes it easier for customers to get access to GEICO within the Facebook environment."
Here are some features of the GEICO Shortcuts app
- Pay your bill (via a stored account or using the one-time card option)
- Retrieve your ID cards to save or print
- View GEICO Privileges deals
- Rate Caveman Photo Crasher photos
- Unlock tokens by performing certain tasks within the Facebook app
The GEICO Shortcuts app joins an ever expanding list of mobile apps released in 2011 including the GEICO Guinea Pig Getaway app, the GEICO BroStache app and the Caveman Photo Crasher app. To access GEICO Shortcuts, go here ; or to experience GEICO's latest innovation, visit here .
GEICO (Government Employees Insurance Company) is a member of the Berkshire Hathaway family of companies and is the third-largest private passenger auto insurer in the United States. The company is celebrating its 75th anniversary this year. GEICO handles auto insurance coverage for 10 million private passenger auto policies and insures more than 16 million vehicles.
In addition to auto insurance, GEICO offers customers insurance products for their motorcycles, all-terrain vehicles (ATVs), and mobile homes. Coverage for life, boats, homes and apartments is available through the GEICO Insurance Agency. Commercial auto insurance and personal umbrella protection are also available.
As a member of the Berkshire Hathaway group of companies, GEICO is rated A++ for financial strength by A.M. Best Company and ranks at the top of several national customer satisfaction surveys. For more information, go to http://www.geico.com.
When Kids Take Charge:
Sparking Life Insurance Conversation through Social Media
New MassMutual Facebook Platform Takes a Fresh Approach to Serious Subject
SPRINGFIELD, Mass., -A new Why Life Insurance? consumer awareness program on Facebook launched yesterday by Massachusetts Life Insurance Company (MassMutual), is designed to confront common barriers and start families across America thinking and talking about their financial futures. This social media effort enlists the help of kids to underscore the importance of life insurance and was developed in part to address an industry-wide challenge: the record low* in life insurance ownership.
"With this new campaign, we challenge head on the declining life insurance ownership trend in an engaging manner, while strongly emphasizing the crucial role life insurance can play in a family's financial planning strategy," said John Chandler, senior vice president and chief marketing officer, MassMutual.
Why Life Insurance? is the company's premiere initiative hosted solely on a social platform. The innovative and creative combination of entertaining videos, interactive tools and informative content was developed and executed through a collaborative program involving MassMutual's advertising agency of record, Mullen, in a leadership role, in close consultation and cooperation with Genuine Interactive.
The program highlights the key benefits of life insurance and seeks to confront common barriers to ownership, such as the anxiety that comes with discussing death, prioritizing financial responsibilities and dispelling the notion that life insurance can be expensive. The videos feature children taking control of the discussion by questioning a life insurance agent and quizzing adults on their knowledge of the topic. MassMutual's Facebook fans will also have links to financial planning tools, helpful tips and a platform to engage in real-time conversation.
"We understand the role of social media in communications today and believe Facebook provides a great forum to generate conversation about an important, yet oftentimes uncomfortable subject," explained Chandler. "Kids delivering the message make the subject seem more approachable and serves as a reminder that life insurance is all about protection."
Also launched is Mutual Matters, an online news source, providing candid, practical information that brings clarity to and encourages conversation to help people make good financial decisions.
Why Life Insurance? and Mutual Matters both support a larger initiative by MassMutual to connect with consumers and initiate a dialogue on this vital subject matter. These thought leadership programs reinforce the company's commitment to life insurance education and awareness. To learn more, visit Facebook.com/MassMutual.
To view the multimedia assets associated with this story, go here.
*Source: Household Trends in U.S. Life Insurance Ownership, LIMRA, 2010.
About MassMutual
Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders every year since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company’s strong and growing network of financial professionals helps clients make good financial decisions for the long-term.
For more information, visit www.massmutual.com, 'Like" MassMutual on Facebook.com/massmutual or follow us on Twitter.com/massmutual.
Three Tips for Writing Intelligently
As always, your first impression should be your best
By Patricia Fripp, CSP, CPAE
Ms. Fripp CSP, CPAE, is a co-author of Speaker's Edge - Secrets and Strategies for Connecting with Any Audience, and is Past-President of the National Speakers Association. She can be reached at PFripp@ix.netcom.com.
Throughout the business community, ambitious individuals who work in highly competitive environments know the impression they give in their business communications often makes the difference between career failure and success.
When you make the following grammar mistakes, you will sound less intelligent than you actually are. Effective communication, both in speaking and writing, make an important and significant impression. Most likely, your English teacher gave you the following advice. In case you have forgotten, here are three business communication tips to improve the impression you make to your prospects, clients, and senior executives.
Use Pronouns Properly
How often do you hear people say the following comments?
The owner promoted him and I.
The client took Sally and he to lunch.
That's very important to we commuters.
Pronouns change when they play different roles in a sentence. Note that 'you' and 'it' stay the same, however you use them.
Pronoun Same Pronoun
Used as Subject Used as Object
I me
he him
she her
we us
you you
they them
it it
For some reason, people who aren't sure which to use can end up over-correcting. 'I' and 'he' sound more elegant, so these people come up with sentences like the first three examples above. The most confusion seems to arise when there are two people receiving the action. The simplest technique is to eliminate the one that isn't a pronoun to see if the sentence 'sounds right.'
WRONG: The owner promoted him and I. (The owner promoted I)
RIGHT: The owner promoted him and me.
WRONG: The client took Sally and he to lunch. ( The client took he to lunch )
RIGHT: The client took Sally and him to lunch.
WRONG: That's very important to we commuters. ( That’s very important to we )
RIGHT: That's very important to us commuters.
Be Wise with Who and Whom
To know which to use, substitute 'he' for 'who' (both end with a vowel) and 'him' and 'whom' (both end with M) while you figure out what is acting on what. For example:
I know he paid him.
I know who paid whom.
Even people who master this trick can get confused when who/whom is used in a question. Simply turn the question around into a statement and follow the above rule:
To who/whom are you speaking?
STATEMENT: You are speaking to he/him.
Who/whom are you going to call?
STATEMENT: You are going to call he/him.
The correct choice is 'him,' so you would substitute with 'whom.'
'Whom' almost always follows a preposition, those words that transfer action from one thing to another. Words like to, from, for, in, and out.
Watch Your Language with Lay and Lie
Unless you're lucky enough to be multi-lingual, English is the main tool you use to transmit your ideas to others. Yet you don't need a Harvard degree to sound intelligent. It's just a matter of mastering a few tricks, aka grammar rules.
Let's consider 'to lay' and 'to lie.' The first verb transmits or transfers its action to something (transitive), while the other doesn't (intransitive). There’s also 'to lie,' meaning to fib, which further muddies the waters.
In school you probably confronted dozens of charts showing how lay, laid, lie and lie work when describing the past, present, future, singular and plural (a process called conjugation). Instead of memorizing charts, here's a four-line verse to remember that will make you a master of these tricky common verbs:
Yesterday, Todd lay in bed.
We laid an icepack on his head.
Today he lies beneath the sod.
We lay a wreath to honor Todd.
When Ken Burns' 1990 documentary, The Civil War, first aired, many viewers commented on the astonishingly literate and grammatically perfect letters written home by soldiers who had no formal schooling beyond the age of ten or twelve. In the nineteenth century, education was a serious and intensive process, and people were expected to continue learning all their lives through reading, conversation, and study.
As a professional, you are constantly working to educate others, sharing your ideas and expertise. One additional gift you can offer your listeners and readers is clear, powerful language.
Hopefully, you found these grammar tips practical, educational, and entertaining. Written and verbal communication should never be boring. Before you send that intelligent-sounding email, letter, or proposal, remember to check it at least once for grammar and spelling errors. Many executives continue to be surprised by obvious mistakes in the corporate communications they receive.
Whether you own a business, report to a boss, or search for a job, it is important to sound intelligent in all your corporate communication. Never underestimate the power of your words. Words and correct grammar give you a competitive edge!
Broadcast, Social Media entice, but Insurance is still, at its roots, B2B
Insurance Marketing Podcast: Martin Hilson of MWH Advertising Takes Insurance Marketers Beyond Their Roots
OLDWICK, N.J. -(BUSINESS WIRE) - A.M. Best Co. has released a new Insurance Marketing Podcast featuring Martin Hilson of MWH Advertising. In this latest release, Hilson explains that while advertisers may flirt with broadcast, social media and other new channels, insurance marketing remains at heart a B2B-communications exercise.
"For me, a dovetailed campaign is the best, and it's the way all companies work. No company relies on landing its business through straight print [advertising]. They don't rely on landing their visitors with straight e-mails. They rely on face-to-face meetings, events, direct marketing and direct mail."
Hilson is a featured speaker at the 2011 Insurance Marketing and Advertising Summit, set for November 3 at the Hyatt Regency Jersey City on the Hudson. The one-day event, hosted by Best's Review magazine, features insurance and marketing experts exploring mobile technology, new approaches to marketing, the role of social media and breakthrough creative work in the insurance sector. Register now at www.bestreview.com/imas.
Hilson is a 13-plus-year veteran of the insurance advertising market who has placed media across the world for various financial services organizations. MWH Advertising is based in Princeton, NJ.
"The nicest thing about what's going on right now is the multichannel approach," Hilson said in the recorded interview. "I'm not saying don't do social media. I'm not saying don't do online. I like ads that give me enough information - or like anything that gives me enough information - whether it's a two-line headline or a tagline."
In the interview, Hilson runs through the various channels that insurance advertisers are exploring and recommends that marketers find a mix that works for their particular needs. "For me, a dovetailed campaign is the best, and it's the way all companies work. No company relies on landing its business through straight print [advertising]. They don't rely on landing their visitors with straight e-mails. They rely on face-to-face meetings, events, direct marketing and direct mail."
To listen to the full podcast, visit feeds.feedburner.com/insurancemarketing.
Registration for the Insurance Marketing and Advertising Summit is $199 and includes a continental breakfast, lunch and networking opportunities. To register now or view the most up-to-date conference agenda, visit www.bestreview.com/imas.
The January 2012 issue of Best's Review magazine will feature full coverage of the conference. To learn more about Best's Review or to subscribe, visit www.ambest.com/sales/bestsreview.
7 Steps to Cloning Your Best Clients
First: Develop a 'perfect profile'
by Bill Cates, CSP
Mr. Cates is president of Referral Coach International. He is the author of Get More Referrals Now! and Don't Keep Me a Secret! You can reach him at Info@ReferralCoach.com.
Over the years, there has been a lot of controversy around cloning - cloning of sheep, cloning humans, etc. When it comes to 'cloning your best clients' there's no controversy at all. Every financial professional wants to acquire more clients that resemble their top clients. Here are 7 steps to accomplishing that goal.
Develop an Ideal Client Profile
Okay, like you've never hear this before. But have you done it? Done it lately? One of the quickest ways to expand your book of business is to get laser clear on whom you serve the best and who serves your business the best. The clearer you are on what you want, the more likely you'll get it.
Who are your best clients? They know the value of your advice and they trust you implicitly. They have substantial discretionary cash flow and don’t have the time, desire, or knowledge to manage their own finances. They may have substantial net worth - from their own hard work or inherited. They are well connected in their community. They meet or exceed your financial minimums. They are willing to pay for your advice without complaining. They are happy to take a stake in your success.
How do you attract more of these people? How do you make sure your existing clients and centers of influence only refer you to these 'A' clients? Simple, you develop an Ideal Client Profile and you share it with certain clients and centers of influence.
Top producers tell me that quantity of referrals isn't their issue anymore. Rather, they want to improve the quality of their referrals. Using an Ideal Client Profile (ICP) is the answer. Here's how it works:
Determine the quantitative and qualitative characteristics of your 'A' clients and write them down. Quantitative characteristics are things like: net worth, investable assets, income, occupation, location, age, business, and family situation - to name a few. Qualitative characteristics are things like: attitude toward professional advice, general personality, risk tolerance, and lifestyle. Every reps' profile will be somewhat different. For instance, you might really like working with small business owners, while a colleague might enjoy engineers, or high-level executives in large companies. There is no right or wrong here. You may enjoy working with middle-market folks. The point is, when you are only working with people who fit your profile, you do a better job for your clients, your clients experience the value you bring to the relationship, and they're more likely to give you referrals to people like themselves.
Just taking the time to be clear on who your 'A' clients are is a worthwhile exercise. But don't stop there. Write your profile down in a format where you can share it with certain clients and centers of influence. I've found that showing people your ICP is much more effective then just telling them.
Determine Whom You Want to Interview
Steps 3 and 4 involve interviewing your 'A' clients. But before you run off and start these interviews, it would be good to know who makes the best interview candidate. Not all your clients will be open to the type of interview you will be requesting. It's best to select clients who are fairly 'open' in their style of communication. 'Open' people tend to be freer with their time, their advice, and their willingness to help. 'Guarded' people are less free with their time and will probably feel uncomfortable with your interview. People who are well-networked are usually 'open' types who enjoy helping others (you, their friends, and their colleagues).
From your list of 'A' clients, identify the most open, networked, socially active, as well as your 'A' clients who just plain 'love you.' These are your best interview candidates.
Request an Interview with Your Best Clients
It’s important to be totally upfront with why you want to interview your clients. It's a combination of wanting to know what's working in your relationship - what they find valuable - then brainstorming how you might approach others like them. Your 'script' might sound a little like the following: "I've been taking a look at my business and want to focus most of my energy serving clients much like yourself. I'm doing a little research and I really value your help. I'd like to get together for about an hour to do two things. First, I want to make sure I'm on track with you. I want to see what you value in our relationship and see if there's anything I could or should be doing differently to serve your needs. Second, I want to brainstorm a little on how I might reach more people like yourself - people who I believe I can serve the best. I'd be happy to do this at a time most convenient for you. I'll even bring a nice lunch over to your office if need be. What do you think? Don't worry about the exact words I used above. Find your own words that are natural for you.
Determine the Value
It's valuable for you to determine the value you bring to your client relationships. Here's a gusty way to start the interview: "George. On a scale of 1-10, where am I with you right now?" That will get your juices flowing as well as some important information flowing from your client. You might also ask, "George. What about your financial situation keeps you up at night?" Follow that with, "Is our current plan addressing your concerns or do you think we need to make some adjustments?" Of course, the questions you ask will be specific to the relationships and what you may have covered in a previous meeting.
Ask them why they do business with you and what attracted them to you in the first place. Tell them, "If you could wave a magic wand over me and our relationship, what would be different?"
By the way, you should consider recording these interviews. You'll be able to capture everything your client says without having to take notes. This will free you up to really listen and formulate better questions.
This value discussion will help your clients get clearer on the value you bring to them. It will teach you what people value about you, your process, and your service.
Here's an example. I recently received an email from a subscriber to my email newsletter. Before he became a financial professional, he was a practicing attorney. He said, as a financial professional, he prided himself on his attention to detail, his ability to explain a financial plan, or a particular type of investment vehicle. When he stared asking his clients what they valued from him, he heard a lot of great things. But his clients never mentioned his attention to detail or his ability to explain a financial plan. What a valuable lesson for him - to see where his clients recognized the value.
Brainstorm for Introductions
Now you move into the area of working on your marketing plan. I suggest your start off 'general' and become more 'specific.' Here's what I mean. Begin this step by telling your client you want to meet more people like them - people who fit your ideal client profile. Show them your profile. Ask them, "If you were in my shoes, how would you go about trying to meet people like yourself?" "What would you say to them to get their attention?" "What's a compelling reason for someone like yourself to take a timeout from their busy life and sit down with me?" These types of questions will get them looking at your business from an important perspective - yours.
Tell them, "Part of my business vision is to provide such great value to my clients that they naturally want to introduce me to others who might also benefit from the important work I do. Does that make sense?"
Now, if your client has been a willing participant in this interview and he or she remains open in their demeanor, you can take this meeting to the next step of actually asking for referrals.
Get Introduced
If you have selected the right type of client to meet with in the first place, you'll probably get from 1 to 5 referrals. The average is 4. As you move up the ladder of affluence, it becomes more important to be introduced to your new prospect, rather than calling them without their expectation. How do you get introduced and how do you approach your new prospect?
Here are two effective questions to help you customize your approach to a new prospect. "How would you like to introduce me to George?" And, "What do you think you need to say to George to get him interested in taking my call." It's as simple as that. Now you just step into the flow of their relationship. Your client will help you build your customized approach to their friend for colleague.
Evaluate and Follow Up
After each interview, there are several things you want to do:
1. Reflect on the information you received from your client and adjust your process and/or service if necessary.
2. Reflect on the Ideal Client Profile you presented and fine-tune it if necessary.
3. Send a 'thank you' note and very small gift to your client for meeting with you and for the referrals, if you obtained some.
4. Contact any new referral prospects right away.
5. Keep your client in the loop with what happens to their referrals.
This is merely a template to follow, not an exact road map. What I mean by that is you should adjust this process to fit your style and your client base. The important thing is that you are sincere about wanting to bring the best possible process and service to your clients, and that you believe you can truly help others to whom they might introduce you. When you come from a place of service to others, you'll always be on safe ground.
Sample Ideal Client Profile of a Retiree
Here is an example of an Ideal Client Profile for a retired individual. In this example, no specific numbers are given relative to income, net worth, etc. If you have specific requirements, you may want to include them in your profile.
Who I Serve the Best
- Age 55 or older
- Highly successful when he/she worked
- Lives in established and/or affluent neighborhood
- Family is important to them
- Knows the value of professional advice
- Wants to maintain their lifestyle
- Active in one or more organizations
- Worked for a company with a great benefit program or ran a very successful business
Product and Service Opportunities
- IRA Rollovers
- 72t distributions
- Exercising stock options
- Large case proposals
- Retirement projections and implementation
- Asset allocation
- Long-Term Healthcare Insurance
Visit www.ReferralCoachBlog.com
The Character-Driven Company
Five Simple Rules to Help Yours Become One When It Matters Most
It's certainly a tense time in business. The uncertain economy has many business leaders constantly poring over the financials, crunching the budget, and nixing every possible unnecessary expense. Unfortunately, says Dave Anderson, financial problems aren't the only ones your company might be facing. He asks if you've recently taken a good hard look at the character of your company.
"When you really think about it, many of the transgressions we see in business today, from CEO scandals to terrible customer service, boil down to a lack of solid character," says Anderson, author of How to Run Your Business by THE BOOK- Revised and Expanded: A Biblical Blueprint to Bless Your Business. "Character does matter in business. And there's no time like the present to sit down and define your goals for the character of your company with your employees."
That's right. Anderson is asking business leaders to get serious about defining what their company stands for - and share those values with employees. "It's amazing how few leaders take the time to do this," says Anderson. "They may feel uncomfortable discussing character issues, or maybe they've never given a lot of thought to what they really stand for themselves. But just resolving to sit down and articulate your beliefs is a powerful exercise - and one that yields powerful results."
Not exactly certain what constitutes good character? You're in luck! Anderson says there are five simple rules that every employee, from the top of the corporate ladder on down, should follow to ensure that they have a rock-solid character:
Don't Tell White Lies
We're all guilty of telling a white lie or two. In fact, most of us do it on a daily basis and hardly even notice anymore! And while we may consider those little untruths to be harmless, consider that instructing your receptionist to tell a caller that you're out of the office when you really aren't is a reflection on your own character. White lies are still lies, after all. Think of how many business scandal stories there were this past year and how many of them were the result of dishonesty - and how that dishonesty shattered the lives of so many people.
"White lies are like the gateway drug to bigger offenses," says Anderson. "And even though telling the truth is often the hard and unpopular thing to do, honesty is rule number one to developing sound character. Tell the truth because it is the right thing to do, and encourage your employees to do the same. In the end it protects your personal integrity, and honors, rather than diminishes, everyone who hears what you have to say."
Keep Your Commitments
Have you ever made a business promise that you didn't keep? Perhaps you didn't follow through with a promised promotion, or skipped out early on a day when you promised to work late. And given the past year's turbulent economy, it's even more likely that you found yourself in a situation where your mouth wrote checks in the good times that your bank account can no longer cash. Cutting expenses is necessary and understandable, but Anderson warns that breaking promises is not - even if it turns out to be more costly, inconvenient, or time-consuming than you estimated.
"Don't take your promises casually," asserts Anderson, "and explain to your employees that they shouldn't either. This is a real test of 'practice what you preach,' as your employees will be less inclined to follow this guideline if they don't see you doing the same. Before you commit to anything, make certain that you can live with the worst-case scenario resulting from what you're agreeing to, and always, always follow through. Do what you said you'd do, regardless of the cost."
Go the Second Mile
One of the most common character flaws in leaders and their employees is that they do just enough to get by; they come to work and do just enough to get paid and just enough not to get fired. That's not good enough, says Anderson. He suggests thinking about it this way: If the majority of people are doing only the minimum, then those who give just a little bit more of themselves will stand out and be highly valued - a great asset for any company or individual to have. So think about what you can do to go the extra mile each day. It may mean volunteering to take on an extra project, coming in on a Saturday once in a while, or taking a night class to improve your skill set. Whatever that extra mile may be, the benefits will be well worth your sacrifice.
"Some of the most successful business men and women will readily admit that they are no smarter than their less successful counterparts," explains Anderson. "They simply outwork them, outthink them, and, as a result, outperform them. By doing what others were unwilling to do, going where they were unwilling to go, saying what they were unwilling to say, learning what they were unwilling to learn, and risking what they were unwilling to risk, they earned a success and a lifestyle that the 'just enough' crowd was unable to attain."
Don't Give False Impressions
When it comes to business, false impressions are everywhere. From misleading advertising campaigns to padded resumes, you won't be hard pressed to find examples of people trying to make others believe things are better than they really are. But Anderson says that you have to be upfront and honest with those you work with, or you may lose your credibility and build up bitterness and resentment in a once-valuable business relationship. Think about the ways that you or your company may be misleading others, and find ways to stop it.
"There are a few simple things you can do to get your employees and organization on the road to transparency," explains Anderson. "For starters, stop any misleading advertising you may be engaged in - and if you're not sure if it's misleading, then it probably is! Make sure that you aren't spinning feedback to make someone feel as though they're doing better or worse than they really are. And certainly don't mislead any potential job candidates or employees about realities concerning compensation, advancement, or future plans. Cultivating a culture of honesty in your organization will only bless your business."
Reconcile and Forgive Immediately
Holding grudges is a common and unfortunate consequence of competitive business. Resentment builds up when employees leave organizations, mistakes are made, or when coworkers feel slighted. Take an inventory of grudges you may be nursing, people you're resenting, and those with whom you must reconcile. It doesn't matter how far back the offense was. If you're carrying it around, it's affecting your performance, whether you realize it or not. Suggest to your employees that they think about any hard feelings they may be harboring and encourage them to make amends.
"When you are busy harboring resentment and holding onto grudges, you are taking time and precious energy away from the things you could be doing to increase your productivity and your business,' asserts Anderson. 'Bring closure to past offenses. Identify amends you must make, with whom, and do it quickly. By holding onto these hard feelings, you aren't hurting the other person; you're hurting yourself! And having a clear conscience and a sound heart is a key component to having a solid character.'
Still skeptical about your ability to pull off this company character assessment - not to mention how well received it's likely to be? Just give it a try, urges Anderson. You'll be pleasantly surprised by the results. But if you can't bring yourself to discuss these matters openly, just living them sends a persuasive message.
"It's one thing to sit down with your employees and share your values, but the best way to get the message across is to make sure you are setting the example yourself," Anderson concludes. "You have to walk the walk. If you haven't been doing so, make a point to change. Others in your organization will be sure to follow. And you'll see firsthand that a business that is based on strong core values and a shared vision is one that's headed for long-term success and prosperity."
Visit www.learntolead.com
Employee benefits season gives employers chance to boost employee morale
New research finds effective education key to a more satisfied, engaged workforce
CHATTANOOGA, Tenn. - Employee morale remains well below 2008 levels, but benefits education continues to be a reliably effective way to boost workforce satisfaction, according to research from Unum (NYSE:UNM).
The third annual survey of workers, done most recently following the 2010 benefits enrollment period, finds that 63 percent of employees think their employer values their work, down from 70 percent in 2008. The survey, conducted online by Harris Interactive in December among 1,712 employed adults, also found that even fewer, 56 percent, feel that their employer cares about their well-being, a 7 point drop since 2008.
"In this difficult economic environment, there may be many reasons employee morale has not bounced back," said Bill Dalicandro, vice president at Unum. "But our research shows that benefits education can be a highly effective, low-cost way to boost engagement."
In an environment where nearly 30 percent of employees have seen colleagues laid off and one in four has experienced a salary freeze, employers should be spending more time communicating about benefits with their employees so that they feel valued.
But the research shows they're not.
Employers continue to focus on other areas of their business affected by the economy, spending less time and fewer resources on employee engagement, particularly in relation to benefits education:
- Unum's research finds that nearly one-third of employees said the benefits education provided by their employers is insufficient.
- Only about half of employees said they received printed information or brochures, down from 70 percent in 2008.
- Just over a third of employees were offered a chance to attend an information and question-and-answer session about benefits, down from 52 percent in 2008.
- The percentage who had access to online materials fell from 51 percent in 2008 to 36 percent in 2010.
- Unum's research shows just how big an impact a good benefits education program has on workforce satisfaction.
In this most recent survey, 80 percent of employees who rated their benefits education highly also rated the employer as an excellent or very good place to work. Conversely, only 31 percent of employees who rated their benefits education poorly also said their employer was an excellent or very good place to work.
And some 77 percent of those who rated their benefits education highly said they would choose to stay with their current employer even if they were offered the same pay and benefits elsewhere.
"People are the lifeblood of any successful business, and in this challenging economy employers need to work even harder to demonstrate their concern for employees and their well-being," said Dalicandro. "Everyone benefits when they do."
About Unum
Unum (www.unum.com) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group paid approximately $6 billion in total benefits to customers in 2010.
Harris Interactive Survey Methodology
This survey was conducted online by Harris Interactive on behalf of Unum from December 6-8, 2010 among 1,712 adults 18 and older who are employed full- or part-time.
Harris Interactive is one of the world’s leading custom market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Serving clients in over 215 countries and territories through our North American, European, and Asian offices and a network of independent market research firms, Harris specializes in delivering research solutions that help us, and our clients, stay ahead of what’s next. For more information, please visit www.harrisinteractive.com.
Gen Y demands new workplace benefits strategies
Voluntary insurance, communication are key to attracting major workforce
COLUMBIA, S.C. (Sept. 6, 2011) - Generation Y is taking over the world and the workplace - and employers who want to attract, engage and retain this huge workforce need to understand its preferences and communication styles, especially when it comes to workplace benefits.
That's the finding of a new white paper released today by Colonial Life & Accident Insurance Company. 'Pump Up Productivity from the Next Generation: Build Voluntary Benefits into Workplace Strategies to Attract, Engage and Retain Generation Y' uses proprietary and industry research to outline what employers should know about the benefits needs and preferences of Gen Y to develop effective employee benefits programs.
"The ability to recruit and retain younger workers is quickly becoming essential for employers to ensure long-term business success, especially as Baby Boomers begin to retire in increasing numbers," says Stephen Bygott, director of marketing programs and research at Colonial Life. "But Gen Y has different needs, expectations and preferences than previous generations, so companies need to take a different approach when it comes to designing and communicating their benefits packages. Those who don’t consider changes could risk losing their competitive edge and may be left behind."
Key information in the white paper that employers and human resource managers should know includes:
Gen Y tends to be less financially stable than other generations
Only 58 percent pay their bills on time,1 43 percent have high credit card debt2 and 70 percent aren't building a cash cushion for emergencies. They also tend to change jobs frequently: The average 26-year-old has already had seven jobs.
Gen Y puts great value on a strong benefits package, yet is woefully underinsured
Sixty percent of Gen Y workers list benefits as the second most important aspect of job satisfaction.4 However, a recent survey by Harris Interactive on behalf of Colonial Life showed Gen Y is the least likely working group to take advantage of workplace insurance, from major medical plans to voluntary coverage such as life, disability and accident insurance.
The workplace is the number one source for benefits information, but Gen Y seems to prefer more personal communication
Despite their 'constantly wired' reputation, Gen Y employees don't use online resources such as forums or blogs any more than other workers do. And they’re significantly more likely than other workers to turn to a family member or friend for information.
Opportunity to improve benefits communication
"Benefits communication emerged in the research as a clear opportunity for employers to more strongly engage Gen Y workers," Bygott says. "These workers give employers low marks for the effectiveness of their benefits communication, and Gen Y women in particular are much more likely to say the communication they receive about their benefits is not at all informative, including cost, what’s covered and what they need."
The white paper outlines numerous tactics and tools employers can use to communicate benefits more effectively with Gen Y workers, including:
- Implementing one-to-one counseling
- Using appropriate technology for the message
- Employing multiple communication methods
- Making content more interactive
"As benefits decision-making continues to shift more toward employees, Gen Y workers will become more eager for the products and information they need to manage their personal financial security," says Bygott. "Employers have a tremendous opportunity right now to create a greater return on investment by evaluating their benefits offerings and communication methods to appeal to Gen Y. The result will be a more loyal, engaged and productive workforce."
The complete white paper is available here
Colonial Life & Accident Insurance Company is a market leader in providing insurance benefits for employees and their families through the workplace, along with individual benefits education, advanced yet simple-to-use enrollment technology and quality personal service. Colonial Life offers disability, life and supplemental accident and health insurance policies in 49 states and the District of Columbia. Similar policies, if approved, are underwritten in New York by a Colonial Life affiliate, The Paul Revere Life Insurance Company, Worcester, Mass. Colonial Life is based in Columbia, S.C., and is a subsidiary of Unum Group, one of the world’s leading providers of employee benefits. For more information about benefits communication, call Colonial Life at (803) 798-7000 or visit www.coloniallife.com.
The Key to Successful Selling: Become a Priority
Why is it that a sales professional's number one priority is to close the sale
while buying the product is the prospect's last priority?
by Nathan Jamail
Mr. Jamail, the author of 'The Playbook Series,' is also a motivational speaker and corporate coach. Visit www.NathanJamail.com
"The customer loves our product and service and they want to buy from us, but right now they are handling some higher priority situations, however I am sure right after that they are definitely going to buy from us!" If you constantly hear yourself or one of your sales professionals make this statement and find that the customer still has not purchased after several months, you need to understand something; you are NOT a priority to the customer and you need to become one. Why is it that a sales professional's number one priority is to close the sale and yet buying the product is the prospective client's last priority? If the product or service helps the customer, they like it, they want it, then why would it not be a top priority, if not the number one priority?
The answer is simple. Your product or service cannot become a client's number 1 priority until you understand the customer's priorities. There are a couple of things you can do to move buying your product or service up on the customer's priority list without having to offer a financial incentive or limited time offer.
Avoiding the Limited Time Offer
Many organizations create a sense of urgency or move up the priority list of their customers by trying to offer a financial incentive or a limited time offer. This works in many retail environments, which is why retailers have weekly specials and advertisements in newspapers, but what about in business to business sales or those retail sales that are not based on a weekly special or advertisement? A salesperson must create a sense of urgency or become the customer's priority, but the difference between a sales clerk and sales professional is that the salesperson should away from trying to be the cheapest. Selling on price alone devalues the product; it is about selling the value, the benefit, not the price alone. The difference is found when you start to focus on becoming a priority to the customer. If you try to create a sense of urgency as a solution or as a strong close, all you have is limited quantity or limited time offer, but when you focus on the priority in the beginning by asking the right questions, you are able to influence the customer to buy now without resorting to desperate tactics. The question is, how can you get customers to view your product or service as a priority?
Becoming a Priority
When developing your purposeful questions (qualifying questions), develop questions that will allow you to understand the goals and current priorities of the prospective customer. The better you understand the customer's goals and priorities, the more likely it is that you will be able to show how your product or service will help benefit the customer as their top priority. This is a lot more than asking open-ended questions or leading questions. Ask questions to truly understand the prospect's responsibilities and the pains of their job until you've gained enough knowledge to directly show how your product or service can help the prospective customer with their immediate goals or priorities. By doing this, the prospective customer knows they need to buy now. A good sample question is, "What are your top 3 priorities this quarter and this year?" Ask this to truly understand the "why" and the "how" of those priorities. The better you understand the customer's perspective, the more likely you are to help them make an immediate and beneficial decision.
Many times a salesperson only asks questions based on their product or service and then immediately makes an offer. They ask questions about how the customer is currently using their product or service and what they like and dislike, etc. Based on those standard questions, unless their number 1 priority happens to incidentally be to purchase that product or service, that salesperson will be waiting until the customer has time to make a decision, which may never happen. By asking the right questions, you're able to determine how your product or service can become a top priority or sometimes just as important Maybe after asking all of the questions, you find out that your product or service cannot be an immediate benefit to the customer's goals and priorities. In this case, you are able to plan accordingly. Accordingly means giving a more accurate forecast of when the customer will be making the purchase and most importantly knowing when to and when not to offer a financial incentive to get the prospective customer to take immediate action-versus it being a default sales tactic.
More than just a Close
There is not a magic wand for closing more sales and coming up with witty catch phrases will not do much more than get a good laugh. The real magic is in the preparation and the skill of selling. You can close more sales when you focus on the benefit the prospective customer is looking to obtain, not just the benefit of your product or service. When you understand the prospective customer's priorities, you will be able to become a customer's priority
Email Evolution: New Trends in a Proven Marketing Communications Channel
e-Mail as a marketing tool is 40 years old... and still going
by Deb McAlister-Holland - Posted by: Distributed Marketing on: August 29, 2011
For nearly 3 decades, I've had an email marketing campaign of some kind running every business day. Yes, there was email 30 years ago. In fact, email is 40 years old.
Back when I sent my first few campaigns, there wasn't a lot of commercial email being sent. I worked for a computer company, and the people who got our email were mostly people who had purchased our products. They were happy to get a notice from us about a new toy they could buy to add to their system, or a new software product that was available.
I remember thinking that email marketing was the simplest thing I'd ever been asked to do. Later, when I worked for a consumer entertainment company that is one of the highest volume emailers in the world, I realized just how complicated email marketing was - and how many regulations there are to comply with.
But things continue to get even more complicated as time goes on. I've read (and written) a number of articles, presentations, white papers and tutorials on how to do email marketing better. There were three truisms I learned early in my career that have been floating around so long that they were almost taken as gospel.
Those truisms were:
- Send commercial email during business hours, because that's when people read email sent to their business email address. (Note the underlying assumption that people have a unique business inbox that's separate from their personal email inbox.)
- Do'’t send people too many email messages - your open rate will go down if you send more than one or two emails a month.
- As other forms of communication become more popular, email will follow direct mail and personal letters into the dust bin of marketing history.
Turns out, the first two are dead wrong - and for now at least, so is the third one. In fact, a study we completed in July 2011 shows that multi-channel marketers rank email as the most effective marketing channel they have.
I just finished a new white paper called Email Evolution: New Trends in a Proven Marketing Channel that explains why these old ideas are changing, and how marketers have to adapt to some pretty striking changes in the way people interact with and read email.
It’s not long - just eight pages including the cover page - but I tried to fill it with data and practical information that almost anyone can use today to get better results from their email marketing efforts.
What does it include?
- Why email still survives as social media grows
- How email and social media became 'adult homework'
- When to send email for the best (and worst) results
- What it takes to build smartphone-friendly emails
That last point - making your email marketing efforts accessible and attractive for the 88% of email users who read their mail on mobile devices - is critical to achieving good results. I think the most valuable information in the white paper are the six tips for making email display better on mobile devices, and the data on how to time your messages for best results. Click here to download it now.
From Raymond James Marketing Matters blog
Evidence builds confidence, confidence builds trust, trust builds relationships.
How can your clients experience the intangible value that you bring to them?
In today's world and, in our business in particular, we often hear 'it's all about the numbers,' Everything is measured, tracked and analyzed. On the other hand, (and in our business in particular), we often hear 'it's all about relationships.' Those are two very different things, so what is an advisor to do?
Well, the answer is... one leads to the other. In other words, evidence of your value as an advisor builds relationships with your clients. So as you approach your marketing strategy, be certain to focus part of your work on providing 'evidence' of the value you and your team provide.
Because much of what we do in our business is 'intangible' (such as service, advice and planning), it is harder for clients to 'experience' the value you bring to the table.
The best book that I have ever read on this subject is Selling the Invisible by Harry Beckwith (and it is a fun read). It helps point to the importance of creating visible proof of what you do. In order to provide evidence of the value they bring to the table, many very successful advisors establish a deliberate process that starts at client on-boarding and goes all the way through to the loyal client stage.
To name just a few of the many things they do:
- Initial meeting follow-up letters with a fairly detailed recap of the discussion
- A website for prospects/clients/COIs to see and learn about the advisor's practice
- Predetermined frequencies for client meetings and written agendas provided in advance
- Follow-up communications with a detailed recap and next steps
- Printed materials, important other printed tools such as a pitch book (at RJ we call it a capabilities presentation) and a written perspective on the current economy and markets (capital markets review)
These items are the 'tangibles' the 'evidence' that helps clients have confidence in you and your team. Once confidence is established, they become more trusting of you. With time that confidence and trust lead to relationships.
So, in the end evidence leads to confidence, confidence leads to trust and trust leads to relationships - and we all know loyal, long-term clients become our advocates and drivers of new business.
Oh, really?
Beat the Competition by 'Hugging' Your Customers
Today's tough economy is not the time to start cutting great customer service out of their business plans.
Stanford, CA -The U.S. economy is still in a deep funk, and for many small business owners that means business isn't exactly booming. Forced to do more with much less, the small businesses that have managed to survive and even thrive during these tough times have recognized one important factor: You can't always compete on price, but you can compete on service. And the best thing about great customer service is that providing it doesn't cost you an extra penny. Ed Hess explains that when your competition is scrounging for customers, you have to hold yours close, and that starts with great customer service.
"Today's small business owners need to understand that cutting costs will not save their business," says Hess, author of the new book Growing an Entrepreneurial Business: Concepts & Cases (Stanford University Press) and professor at the University of Virginia's Darden Graduate School of Business.
"Remember, customers are concerned about their own financial security. When they walk into a business, they need to feel cherished and special. They need to be 'hugged' by great customer service. Customers don't expect to get bottom-of-the-barrel prices everywhere they go, but they do expect to be treated with respect." Great customer service doesn't just happen. It starts with employees who have been trained in the science of service. "Your employees will treat your customers as they have been treated by their leaders," explains Hess. "Treat employees in a respectful, caring manner, and that will be transferred to customers. The business research done at Harvard, Stanford, Michigan, and my research at Darden Business School all finds that happy employees make for happy customers."
Hess notes that many major companies, such as Southwest Airlines, UPS, Chick-fil-A, Best Buy, Yum! Brands, Room & Board, Starbucks, Ritz-Carlton, Levy Restaurants, Costco, Zappos, and Whole Foods, understand the importance of great employee relations. In the Best Buy culture, for example, customers are 'kings and queens,' employees are 'royalty,' and managers and leaders are 'servant leaders' serving employees and customers. At Ritz-Carlton, employees are 'Ladies and Gentlemen serving Ladies and Gentlemen.'
Today, not every business is getting customer service right, but not every business is getting it wrong, either. Fortunately, for any small business owner looking to improve his customer service, valuable lessons can be learned from both the good and the bad. Hess provides examples from his own experience and teaches what can be learned from the good and bad sides of customer service.
The Bad: The Local Coffee Shop
In tough economic times, small business owners should have a laser-sharp focus on great customer service, doing everything they can to ensure their customers feel respected and loved. After all, studies have shown that it costs much more to attract a new customer than it does to keep an existing one. So it is important that business owners do everything they can to keep their current customers happy. Unfortunately, that isn't always the case.
"I recently went into a local coffee shop to get my wife her favorite latte," says Hess. "I ordered, paid, and waited for the drink to be made. When the employee gave it to me, she said she was sorry but they had run out of skim milk and as a result the cup was less than 2/3 full. And that was it. She turned and went on to the next customer. I stood there thinking, But I paid for a full cup! Instead of making her problem my problem, she should have offered to refund part of my money, or even better, she could have given me a coupon for a free drink on another day. Nope. Nothing. Pay for a full cup; get 2/3s of a cup…better luck next time. Needless to say, I have not been back to that coffee shop."
Learning from the 'Bad'
Remember, disgruntled customers won't complain; they just won't come back. If you don't give your customers the courtesy of taking the time to provide them with excellent service, they are not going to take the time to tell you how to improve your business. "Remember, too, that in addition to not coming back to your business, unhappy customers will likely tell others about their bad experience," says Hess. "The ripple effect of just one bad customer service experience can be very damaging. Be sure your employees are providing consistently great customer service."
Provide special training for frontline employees. The employees who interact directly with customers are essential for your business. "Their attitudes, communication skills, and style of service are what your customers are going to associate with your business," explains Hess. "Make sure your employees are trained to handle the potentially stressful task of working with customers."
Make sure a customer is happy before moving on to the next customer. At many small businesses, like the coffee shop in the example above, customers value quick service just as much as they value quality service. But you can't sacrifice one for the other. "It's important to make sure one customer is satisfied before you move on to the next guy," notes Hess. "That can be as simple as asking, 'Is there anything else I can do for you today?' Remember, you're not done serving the customer when you think you're done. You're done serving the customer when the customer is completely satisfied."
Compensate for mistakes. Never, ever shortchange your customers. "If a mistake was made or some other circumstance is preventing you from providing the best level of customer service, find a way to make it up to your customer," says Hess. "I would have gladly continued going to the coffee shop in the above example if the store's employee had offered to make amends for the fact that I was getting less than what I had ordered. But the employee allowed me to feel shortchanged, and that isn't a feeling that any customer is going to want to repeat."
Provide solutions. Never make your business's problem or an employee's problem your customer's problem. "At the coffee shop, the employee who served me probably isn't the one who does the store's inventory," notes Hess. "So maybe she didn't think there was anything she could do to remedy the situation. But that really isn't the case. Allow your employees to have the latitude to provide your customers with solutions when they can't satisfy a need. For example, as I mentioned above, she could have offered a coupon for a free drink or even a free pastry. She could have told me about the problem before making my order and asked if there was a beverage I would like to substitute. Any offer would have been better than simply having a better-luck-next-time attitude."
The Good: Zappos.com
Companies that know great customer service do exist, and Zappos.com is one of them. "Recently I ordered some shoes from Zappos that ended up not fitting," says Hess. "I sent them back using the provided prepaid shipping form. I immediately got an e-mail acknowledging that my shoes were being shipped back to Zappos, and I could follow their progress on the Internet. When they were received at Zappos, I got another e-mail telling me my refund was being processed and thanking me for shopping at Zappos. I sent them a response thanking them for the great service. Quickly thereafter, I got a personal e-mail from a customer service rep thanking me and telling me that Zappos loves its customers. She upgraded me to the Zappos VIP site. Wow! I felt cared about and appreciated. And guess what? I went online and ordered a different pair of shoes. Zappos truly gets it."
Learning from the 'Good
Happy employees = Happy customers. Zappos understands that employee satisfaction translates to great customer service. "I can't say for sure if the customer service rep who upgraded me to the VIP site was completely satisfied with her job," says Hess. "But I can say that she took the initiative to go the extra mile for a customer when she really didn't have to. She cared enough to provide me with high-level service, which makes me think that she also cares about the company where she works. Creating that feeling in your employees will pay you back exponentially."
Always respond quickly. Your customers are busy. They have big concerns of their own. They don't deserve to be left wondering what kind of service they are going to receive or when they are going to receive it. "Address customer questions and problems as quickly as possible," says Hess. "Even if it's just a message to say, 'I am looking into this for you,' the customer will appreciate being told where they are in the process."
Keep customers informed of what's happening. When customers know what's happening with their order, it reduces their anxiety. And when they're less anxious, they enjoy doing business with you. Use technology to provide quick, efficient customer service. It's the twenty-first century, and email, message boards, and online stores provide us with the means to provide service more quickly than ever before. "Small business owners might sometimes make the assumption that customers don't like to be communicated with online," says Hess. "And for some older customers that might be the case. But by and large, I think people appreciate the ease that online shopping and communication provide. As long as you make sure your messaging is detailed and easy to understand, your customers will appreciate the quick service these technologies provide."
"Today's small business owners must understand that their business is not about 'me'; it's about 'them': your employees and customers," explains Hess. "Making cuts to employee perks or customer service perks is not a long-term plan for survival. It might buy you the opportunity to stay in the game a little bit longer, but it won't make you a winner. In today's economy, you have to do everything you can to hang on to your customers and to encourage them to keep coming back to your business. There's no better way to do that than through consistently great customer service.
"You might not always be able to slash your prices lower than those of your competitors," he concludes. "But you can make the experience of doing business with you superior to all others. Never be afraid to take your customer service up a notch!"
Majority of Middle Market Companies
View Health Insurance Brokers and Agents as Valued Partners
Opportunities for Brokers Evident as Health Reform Takes Shape
NEW YORK, July 14, 2011 -The importance of health insurance brokers and agents over the next three years, especially those who specialize in employee health benefits, will be increasing sharply in the eyes of middle market decision makers. This is based on a recent survey, conducted by TNS, a world leader in market information.
According to the study, almost two-thirds (63%) of companies surveyed view their employee health insurance broker or agent as a valued partner with 33% describing them as a trusted advisor. "Our results indicate a much stronger role for brokers than one might have expected," said William Bruno, Vice President at TNS. "One possible explanation is they fill a vital role in helping companies control the rising employee benefit costs. This is a key area that almost all (92%) of the companies surveyed identified as a concern, and one that for the vast majority (77%), say has increased in importance over the past 12 months," said Bruno. "On top of this, many companies have reduced their staffing in the human resources or benefits areas over the past two years, and brokers are helping to fill this void."
While health reform may make it easier for companies to find benefit plans at more competitive prices in 2014, most companies surveyed will be relying more heavily on their broker to help them navigate through the choices offered under reform. This is evidenced by 75% of companies who think their health insurance broker will play a more important role in their relationship over the next three years.
"One of the most important insights that came from our research highlights the vast opportunity for brokers and agents to stay well ahead of the curve on detailed knowledge of health reform and related employee health care options that best fit with their clients' needs. For health insurers, it will be important to recognize the significant role that brokers and agents may continue to play well into the future," said Bruno.
About TNS
TNS is the global leader in custom market research delivering actionable insights and research-based business advice to clients around the globe so they can make more effective business decisions. TNS offers comprehensive industry knowledge within the Consumer, Technology, Finance, Automotive and Political & Social sectors, supported by a unique product offering that stretches across the entire range of marketing and business issues, specializing in product development & innovation, brand & communication, stakeholder management, retail & shopper, and qualitative research. Delivering best-in-class service across more than 80 countries, TNS is dedicated to discovering growth opportunities for its clients in an ever-changing world. Through its pioneering and innovative culture, TNS understands the latest marketing challenges and research techniques, being the first to discover and solve new marketing issues for clients.
Please visit www.tns-us.com for more information.
About Kantar
Kantar is one of the world's largest insight, information and consultancy networks. By uniting the diverse talents of its 13 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Its 26,500 employees work across 95 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group's services are employed by over half of the Fortune Top 500 companies.
For further information, please visit us at www.kantar.com
Local company Next Generation Insurance Group Partners with Sallie Mae
to Launch Life-Stage Insurance Services for the Collegiate Market and Young Adults
BOSTON, Mass., (July 11, 2011) -Next Generation Insurance Group (NGI), a licensed specialty insurance agency and the nation's first comprehensive insurance provider focused on the collegiate and young adult markets, has partnered with Sallie Mae to offer insurance programs to colleges and universities, as well as students and young adults.
Sallie Mae Insurance Services provides colleges and universities access to insurance products specifically designed to help students and their families mitigate risks. The initiative will also deliver insurance programs designed to help families protect their investment in higher education and young adults protect the value of their investment post college.
"Despite the powerful data that speaks to the risks inherent with college, too few families make an effort to protect their investment in higher education," said Bill Suneson, co-founder and president, Next Generation Insurance Group. "Sallie Mae, through its leadership in providing financial services for education, understands the need to mitigate these risks. Sallie Mae Insurance Services represents a new breed of insurance products designed to give college students and their families the right type of insurance, when they need it, to protect the investment in higher education and its related costs."
Sallie Mae Insurance Services will initially offer tuition insurance, renters insurance and student health insurance directly to America's college students to address the life-stage risks they face. In addition, Sallie Mae Insurance Services will provide colleges and universities access to specially designed insurance products, such as the Student Protection Plan, a package of insurance benefits featuring tuition insurance and other relevant benefits, designed to meet the needs of a typical college student.
"We have great respect for Sallie Mae's long-standing relationship with its university partners and the value of its brand to the collegiate market," says John Fees, co-founder and chief executive officer, Next Generation Insurance Group. "Our common purpose is to safeguard the investment made in the education both during and following college."
Sallie Mae and Next Generation Insurance Group, which is licensed in all 50 states, will provide insurance and benefit programs to Sallie Mae's 23 million customers. NGI's experience with college students and young adults, strong underwriting partners and shared commitment to offering responsible products align with the safeguards Sallie Mae offers to families who are saving, planning and paying for college.
NGI's additional properties include:
- GradGuard.com, a comprehensive insurance solution for college students and their families
- CollegeRentersInsurance.com, offering personal property and liability protection for college students
- StudentHealthPlan.com, an alternative to school-sponsored health insurance for full- and part-time and non-traditional students.
About Next Generation Insurance Group, LLC (NGI)
Founded by veteran affinity and collegiate marketers, Next Generation Insurance Group builds specialized insurance products, resources and expertise, and offers a diverse selection of services available through multiple delivery channels. NGI delivers innovation to the insurance industry, allowing consumers to mitigate the risks in their lives, fulfilling the needs of underserved consumer groups, especially first-time insurance buyers – young adults, students, graduates and their families. An authority in life-stage marketing and emerging trends and markets, NGI is changing the way people buy insurance. In partnership with affiliate channels, NGI ensures those in need are informed about 'right fit' insurance products at the right time for their situations and corresponding life-stage risks, creating easy, relevant access to insurance when buyers are thinking about it and most need it.
NGI is a national insurance operator, combining its privately owned online channels with embedded partner channels. In partnership with Sallie Mae, it created Sallie Mae Insurance Services to offer specialized programs on-campus and for college students and young adults. NGI's properties include: GradGuard, a direct-to-consumer product for college students and their families; CollegeRentersInsurance.com, offering personal property and liability protection for college students; and StudentHealthPlan.com, an alternative to school-sponsored health insurance for full- and part-time and non-traditional students. NGI has been awarded a provisional patent for its Education Life-Stage Insurance Programs. More information is available at www.nextgenins.com. Follow the company on Twitter @nextgenins for life-stage risk news, information and product updates.
Employer-owned life insurance: The rules have changed
Without the proper filing and notice,
a business can't receive policy proceeds on a federal income tax-free basis.
by Denise Desaultels
Ms. Desaultels is a brokerage manager at First American Insurance Underwriters in Needham, Ma. She can be reached at ddesautels@faiuonline.com
Most of the time when we hear someone say today, 'The rules have changed,' we don't pay much attention. Why get excited? They're changing all the time. However, as an advisor, it's worth your while to give careful attention to Employer-Owned Life Insurance (EOLI), since the new rules can make a significant difference to your clients.
EOLI contracts issued after August 17, 2006 require that certain items be put into place to receive favorable tax treatment. Without the proper filing and notice, a business can't receive policy proceeds on a federal income tax free basis. To help avoid having your clients find themselves with this problem, there are a series of steps that must be implemented.
They include the following:
- The employer must receive a notice of Insurance.
- The employer must consent to the coverage.
- The legislation also mandates annual reporting of employer-owned contracts for each year the contract is owned.
- The report to the IRS is accomplished with Form 8925 and is attached to the policyholder's federal tax return.
- The employee understands that the employer will be a direct or indirect beneficiary of the death proceeds.
- The notice and consent requirements should be fulfilled prior to issuing the policy.
Form 8925 requires the following:
- The number of employees at the end of the year.
- The number of employees insured under the contract.
- The total amount of insurance in force under such contract.
- The name, address, taxpayer ID numbers.
- An attestation that valid consent has been obtained
If these prescribed steps are taken, the death benefit proceeds can be received income tax free. The life policy can be an important tool for a business, but following the rules is the key to having a successful plan. It's extremely important to maintain the documents and show that the client has met the notice and consent requirements in a timely manner.
Since meeting the requirements depends on having the correct documents, here are samples, although employers must rely on an attorney to develop suitable forms. However, the sample forms can serve as a guide for the client's lawyer in drafting the notice and consent forms.
Here are three Employee Acknowledgement and Consent to Employer-Owned Life Insurance forms for your review:
Sample form #1
The employer/applicable policyholder has given me notice that
it intends to purchase a life insurance policy or policies on my life. I understand and consent to the following:
- I will be the insured under the policy(ies).
- The employer/applicable policyholder will own the policy.
- The employer/applicable policyholder may, directly or indirectly, be a beneficiary of the policy(ies) and may receive proceeds payable on my death
- The employer/applicable policyholder, or its successors, may continue to be the owner and/or may be a beneficiary of the policy even after my employment terminates.
- $ (fill in figure) is the maximum face amount for which I may be insured by the employer/applicable policyholder at time of issue. [Signature of proposed insured and date of signing]
Sample form #2
I, [name] am currently employed by [company name], (the Company). I understand that the Company is purchasing an insurance policy on my life with a $(face amount) maximum face amount at issue. I voluntarily consent to have insurance purchased on my life for the benefit of the Company. I understand the reason(s) for this insurance and understand that the Company will have the rights of ownership, will pay all premiums, and will be the beneficiary of the policy. I understand and agree that my administrators, estate, heirs, and assignees have no rights to any policy proceeds, unless expressly agreed otherwise in a separate writing between the Company and me. I also understand that the Company may keep a life insurance policy in effect on my life after my employment has terminated with the Company.
This notice and consent was executed by the undersigned on this [date] day of [month], 20[year]. Signature of Insured Employee
Sample form #3
Employee acknowledges receipt of notice and agrees that:
- I consent to being insured by employer
- I consent to the policy being continued after I terminate employment with employer
- I understand that employer will be a direct or indirect beneficiary of any death proceeds payable on my death Employee signature and date
While it's important to make sure the notice and consent forms are filled out properly before policies are issued, there are occasions when the paperwork may not have been taken care of properly.
When the employer-owned life insurance legislation under IRC 101(j) was enacted in 2006, advisors believed the only way to correct the situation on policies issued after August 17, 2006, was to surrender the contracts and reissue new ones after proper notice and consent was obtained from affected employees. However, a recent notice provides another option, which also creates an opportunity for advisors. A Section 1035 exchange to a new policy with a larger face amount or other material change is now deemed a new contract on which proper notice and consent can be obtained before issue.
It behooves advisors to review their Employer-Owned Life Insurance records and identify those contracts for which notice and consent forms were not completed before the policies were issued.
This gives agents the opportunity sit down with employers to review the situation and present them with options. The specter of being faced with paying federal income tax on the proceeds from the existing policies should make them interested in listening to your recommendations.
Facebook Faux Pas
Six Things Businesses Need to Know
Posted by: Distributed Marketing on: June 29, 2011
Most marketers understand how Facebook works very well from a personal standpoint — but some of the recent rules and changes that Facebook has made in how it treats business users make it easy to commit a Facebook faux pas.
Creating a Profile Instead of a Page
People have profiles, businesses have pages. What's the difference? That's worth a chapter in a thick book, not a short blog post. Here are a few of the big differences. Pages can have tabs, and page owners have much more control over how their pages look, what kinds of features they can add to their pages, and what kind of analytics and reports they can get. Profile owners are given access to the same tool set- and the profile page for a Fortune 500 company looks almost exactly like the profile page for a 15-year-old.
Failing to Understand EdgeRank
The wall is the basic way to deliver a Facebook fan Page message. Every post gets a post quality score. A low post quality score, as determined by an algorithm called EdgeRank, means that your post won't actually be seen by very many people. (EdgeRank has to do with the number of interactions, such as likes, comments, shares, and how much attention a post gets in a short period of time.) Posts with high EdgeRanks stay in the newsfeed, posts with low ones don't.
Posting Too Often — Or Too Rarely
Posts made in the morning (before 8 a.m.) and on weekends get more 'buzz' than posts made in the middle of a work day. Companies that post an average of every other day - especially if the posts contain specific offers that fans benefit from (discount codes, specials, information).
Treating a Corporate Fan Page Like a Profile
This may sound like Faux Pas #1, but the point here is that pages provide custom tabs, while profiles don't. Custom Facebook tabs provide the perfect tool for business objectives like growing a mailing list, subscribing to a blog, generating discussions, and so on. Not using the Facebook fan page as a landing page that delivers clear calls to action is deprives your business of the chance to harness the real power of Facebook. (Now you can use HTML for this instead of the custom coding language FBML, Facebook mark-up language, required until recently. This makes it easier to create the custom look you want.)
Forgetting Facebook Ad Tools
The Facebook ad platform is a great way to find customers on Facebook. You don't even have to launch an ad to use it, either. The process for setting up a Facebook ad allows targeting by specific demographics or audiences based on their interests, age, gender, location and so on. If you want to know what the potential for your brand is on Facebook, start the process of launching a Facebook ad, you'll be amazed what kind of information Facebook will deliver, free.
Rushing the Process
If you think of Facebook as a marketing channel, and your Facebook page as the lynchpin in leveraging that new communications channel, then you're not likely to create and post a page in 5 minutes or less. Sure, you could, but doing that just isn't smart. Smart marketers plan the process, from how the page will look, to who will update content, to what messages will (and won't) be shared on Facebook. One big part of the planning process is handling customer comments, positive and negative, and mobilizing appropriate resources when (not if) an unhappy customer uses your fan page to vent or ask for a resolution to a problem.
What other Facebook faux pas have you seen businesses commit, or committed yourself? What tips do you have for compliance, marketing success, or finding the right tools to manage your corporate Facebook presence? Please share!
Note: The Facebook faux pas outlined in this article relate to setting up a new Facebook page. But no corporate marketer can afford to overlook the subject of compliance (legal, brand, and regulatory) in any social media marketing effort. If you work in a regulated industry like insurance, financial services, healthcare or banking, join us for a free webinar on July 14 titled Drawing the Line Between Personal and Professional to learn more about compliance, social media success, and avoiding the most costly social media faux pas. Register now. The webinar is presented by Distribion, LIMRA, and Socialware.
Google Executive: The Future in the Digital World
Holds Great Opportunity for Life Insurance Industry
Key to onLine success: Get found, be relevant and accountable
WINDSOR, Conn., June 10, 2011- Last week at the LIMRA 2011 Marketing and Research Conference in Boston, Payton Dobbs, manager of Google's Financial Services Online Sales, told an audience of 200 life insurance professionals that online users are expected to double in the next decade, including those looking for life insurance.
"In the shortest span of time- less than the age of a teenager- a lot has happened to our digital landscape. Consumers have moved from simply researching, to buying and now virtually living online," said Dobbs. "This is the perfect opportunity for the life insurance industry to capture this audience. "In conjunction with Harris Interactive, Google has found that 43 percent of potential customers are shopping for life insurance online and with the rapid adoption of mobile technology, the opportunities are limitless."
Dobbs advised attendees that the key to online success was three-fold: you must be found; you must provide relevant information and you must be accountable, ensuring that your customers have easy access to the information they need. During his remarks, Dobbs discussed specific strategies that would be easier using analytic tools, targeting messaging with embedded links to drive prospects deeper into your website, and adding click to call phone numbers at every step to make it easy for consumers to finish the transaction.
Dobbs challenged his audience with the question: "There are 10 million online life insurance consumers, how will you win this market?"
The LIMRA Market and Research Conference is a three-day event, providing an opportunity for its participants to learn leading edge marketing efforts and revolutionary research from industry leaders and top practitioners that will help drive innovation and growth.
Play Ball!
Minor League Baseball Welcomes The Principal Financial Dreams Tour
New financial education event will travel to baseball minor leagues in 2011
DES MOINES, Iowa--(BUSINESS WIRE)--The Principal Financial Group has announced The Principal Financial Dreams Tour, a new event that will travel to 15 minor league baseball parks in 2011.
The event, an evolution of the popular Principal Financial Group Family Fun Fest, will be held inside the stadium prior to and during the game. Attendees will have the opportunity to receive information they can use to plan for their financial futures.
"Our hope is that The Principal can make this experience more than just a day at the park. We invite fans to help celebrate America's national pastime while providing them access to free, simple, financial education tips and tools that everyone can use," said Mary O'Keefe, senior vice president and chief marketing officer.
It's Time to Dream Again.
During the tour, The Principal will highlight a new integrated financial education campaign, Dream Again With The Principal. The campaign provides easy-to-use resources, including the Principal Dreamcatcher, which helps people put their financial pictures into clear focus to help them make their dreams reality.
"We've been through tough economic times, but Americans now are saving, spending and investing smarter as a result," said O'Keefe. "People are cautiously optimistic, but they still want help and encouragement. The future is a vague concept and many people don't know how to get started reaching their dreams. Dreams are easier to reach if you can see them clearly first through tools like the Dreamcatcher."
Four Bases of Financial Security
To bring the Dream Again concept to life at the ballpark, fans will have the opportunity to learn about the Four Bases of Financial Security, through interactive games and displays:
- First base: Protect your family from the unexpected with life insurance
- Second base: Protect your ability to earn an income with disability insurance
- Third base: Secure your retirement through savings and investments
- Home plate: Create a Dreamcatcher, find an advisor and create a financial plan. Each fan who creates a Dreamcatcher will be eligible to win $2,500 in the Dream Again with The Principal Sweepstakes.
The Four Bases activities will be fun, family-friendly and provide fans with a bit of information to help them get their financial futures on track. During the event, fans will also have the opportunity to pose for a keepsake photo with one of 15 baseball legends.
To learn more about the event and schedule, visit the Dreams Tour
For more news and insights from The Principal, connect with us on Twitter here.
2011 Principal Financial Dreams Tour Stops
All dates and teams subject to change
Tour Dates:
- Syracuse, N.Y. -- June 14
* Guest baseball legend, Kelly Gruber
- Rochester, N.Y. -- June 16
*Guest baseball legend, Steve Garvey
- Harrisburg, Pa. -- June 21
* Guest baseball legend, Brad Wilkerson
- Frederick, Md. June 23
* Guest baseball legend, Chris Hoiles
- Charlotte, N.C. -- June 28
* Guest baseball legend, Ron Kittle
- Mobile, Ala. -- June 30
* Guest baseball legend, Jon Lieber
- Nashville, Tenn. -- July 5
* Guest baseball legend, Lance Parrish
- Kansas City, Ks. -- July 7
* Guest baseball legend, Dennis Leonard
- St. Paul, Minn. July 9
* Guest baseball legends will include a collection of past Saints players
- Lincoln, Neb. July 11
* Guest baseball legend, Jack Clark
- Omaha, Neb. July 14
* Guest baseball legend, Tom Burgmeier
- Round Rock, Texas July 18
* Guest baseball legend, Jeff Kent
- Salt Lake City, Utah -- July 21
* Guest baseball legend, Vern Law
- Fort Wayne, Ind. -- July 25
* Guest baseball legend, Dave Parker
- O'Fallon, Mo. July 28
* Guest baseball legend, Mike Matheny
About the Principal Financial Group
The Principal Financial Group (The Principal )1 is a retirement and global asset management leader. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, investment services and insurance through its diverse family of financial services companies. A member of the FORTUNE 500, the Principal Financial Group has $327.4 billion in assets under management2 and serves some 16.4 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
Marketing using OPM, OPC & OPCL
Marketing is so much more fun than selling; So, how can you have fun and make a living?
by Herb Daroff, JD, CFP
Mr. Daroff is affiliated with Baystate Financial Planning, in Boston. He can be reached at hdaroff@baystatefinancial.com
Many of you know Steve Leimberg (www.leimberg.com) author of the Tools & Techniques series of books, NumberCruncher, and much much more. I have known Steve since my Philadelphia days, some thirty years ago, and have learned a great deal technically from him. However, his best marketing idea is:
OPM = Other Peoples’ Money
OPC = Other Peoples’ Credibility
OPCL = Other Peoples’ Client Lists
He has suggested such ideas as holding seminars at car dealerships when the new models arrive. Add your seminar announcement to the car dealer's announcement. Add the car dealer's announcement to your seminar mailings. This helps the car dealer, and helps you.
Recognizing that CPAs need Continuing Professional Education (CPEs), my company has been running a series of CPE Seminars for CPAs for years. We send out questionnaires to CPAs about financial planning topics, and we ask CPAs to send out similar questionnaires to their clients when they send out the request for tax filing information. That way, we present topics that are relevant to the CPAs and their clients, and the CPAs receive the needed CPEs at the same time.
The hottest topics (those most requested by clients and their advisors) are:
1. Retirement Income Planning
2. HealthCare Reform
3. Business Succession Planning (for business owners)
4. Estate Planning under the new rules
Retirement Income Planning remains a very popular topic for seminars to both professionals (CPAs, Attorneys, Bankers, P&C firms, etc.) and clients (Chambers of Commerce, other affinity groups, etc.). So, ask a client 'What’s your retirement plan?' and the answer often is 'I have a 401(k).' But, as we know, that is an accumulation plan. So, what's your retirement plan? Eventually, the conversation turns to taking required minimum distributions (RMDs) - 'Stretch-IRA'. Here, we're concerned with: sequence of returns, the amount taken, and the source of the income if: the market is UP, the market is DOWN, tax brackets are UP or tax brackets are DOWN. These are all critical components of a Retirement INCOME Strategy.
What's better than a 'stretch-IRA'? A Roth IRA for your surviving spouse and/or other beneficiaries (funded with life insurance).
HealthCare Reform is of great concern to business owners and consumers. How do I control costs and yet keep control over my own health care? The government (both State and Federal) have placed their focus on paying for healthcare and not on providing healthcare.
Consumer Driven healthcare involves higher deductibles, but then followed by clear management of medical testing. What if your car insurance came with a $20 co-pay for car repairs? Would you really care how much the repairs cost? You should, because it has a direct relationship with the future of your car insurance premiums. If you don’t actually see the doctor’s bill or the hospital bills, you forget about what you and your employer are paying for the insurance.
Exploring what the State and Federal governments are currently thinking is certainly a hot topic for clients, prospects, and their advisors.
Business Succession Planning is also very popular for business owners and their advisors. There are a few important classifiction: one owner with children active who plan to succeed the parent; one owner with no children active; multiple owners with children active who plan to succeed in ownership; multiple owners with no children active.
For estate planning attorneys, our focus this year has been on what we refer to as, 'The Portability Traps'.
In 2011, for the first time, we have portability of the death tax exemption (currently at $5M per person, which can also be used during lifetime). So, if the first spouse to die doesn't use any of his or her exemption, or only uses part, then the surviving spouse not only has his or her own $5M but also the unused part of the first spouse to die's $5M.
However, not using each spouse's exemption results in five portability traps. First, the value continues to grow inside the surviving spouse's taxable estate. This may actually be beneficial if the amount of the surviving spouse’s exemption is sufficient to cover the full value, since the heirs will get a step-up in cost basis at the surviving spouse's death. However, if the exemption does not cover the value, then these assets will be subject to estate taxes rather than growing outside of the surviving spouse’s taxable estate
Second, the assets are accessible by the surviving spouse's creditors, if the assets pass outright to the surviving spouse this could be mitigated if the assets pass to a properly drafted marital trust or QTIP trust.
Third, the value of the first spouse to die's exemption rollover may not be the full $5M, if the amount of the exemption goes down in the future. If the exemption is $3.5M, for example, when the surviving spouse dies, then potentially only $3.5M will be the value of the rollover instead of the full $5M.
Fourth, the value of the first spouse to die's exemption rollover may not be available, if the surviving spouse remarries (and then his or her next spouse dies having used more of his or her exemption). If the surviving spouse's next spouse uses some or all of his or her exemption in order to pass assets to his or her children from his or her first marriage, then the surviving spouse may only have her own $5M exemption. The exemption from his or her first spouse may be forfeited.
And fifth, generation skipping exemptions do not appear to be portable.
Another seminar topic idea comes from the current $5M exemption. Some couples who are married under Massachusetts law are not married under Federal law. Therefore, they don't benefit from the federal unlimited marital deduction. However, now they can benefit from the $5M exemption. The same may also apply to couples where one spouse is not a U.S. citizen. The U.S. citizen can pass $5M to their spouse without the need for a QDOT (Qualified Domestic Trust) and its limitations.
One on-going topic, especially for estate planning attorneys, has been the fiduciary duty of a trustee in an irrevocable (life insurance) trust. This applies to the attorney, his or her partners, and his or her clients who have been named as trustee. What is the trustee's liability if:
1. The trustee delivers $2,000,000 of death benefits to the beneficiaries and...
2 ... they say, 'I thought there was $5,000,000 of life insurance on my father’s life' and...
3 ... the trustee responds, 'Oh, $3,000,000 lapsed a few years ago' and...
4 ... they say, 'On your watch?'
Life Insurance Audits rate insurance policies, as well as insurance companies. For years rating services have rated insurance companies, but not their products. You could own a 'C' policy from an 'A' company. In many cases, it's not the product, but the funding of the product (or lack thereof) that has caused the risk of lapsing before the insured lapses:
- Universal Life expected double-digit returns and only received single-digit returns
- Variable Universal Life expected returns
- Whole Life, with large term riders and/or with policy loans and so-called “'recognition dividends' (lower dividend scale depending on loans against cash value) even these venerated products can be in serious risk of collapsing
- Term Insurance that has passed its level premium period (e.g., 20-year term in its 23rd year)
I have often been asked by advisors, 'What topics should I present to clients, prospects, and their advisors?' My answer is, 'Marketing is so much more fun than selling':
STEP #1: Ask the audience what they want;
STEP #2: Give them what they asked for.
12 Biggest Mistakes Salespeople Make in Their Presentations
Even the best can use some coaching and polishing now and then
By Patricia Fripp, CSP, CPAE
Ms. Fripp is an executive speech coach, sales presentation trainer, and keynote speaker on change, customer service, promoting business, and communication skills. She is the author of Get What You Want!, Make It, So You Don't Have to Fake It!, and Past-President of the National Speakers Association. Contact her at PFripp@ix.netcom.com.
Salespeople are incredible. Like Hollywood actors, whenever they open their mouths, they are putting themselves and their company on the line, taking a risk in the hope of a favorable outcome. Just like actors, even the best, most experienced salesperson can use some coaching and polishing now and then.
Here are the 12 most common mistakes salespeople make and how to avoid them.
1. UNCLEAR THINKING. If you can't describe the objective of your interaction in one sentence, you may be guilty of fuzzy focus, trying to say too much at once. You'll confuse your listener, and that doesn't make the sale. Decide exactly what you want and need to accomplish in this contact. What would be a positive outcome? For example, imagine that a busy executive says, "You have exactly ten minutes of my time to tell me what you want me to know about your company. In one sentence, tell me how I should describe your benefits when I talk to my managers tomorrow." At any stage of the sales process, you should know in advance why you are interacting, what benefits you are offering your prospect or client, and what you'd like the next step to be.
2. NO CLEAR STRUCTURE. Make it easy for your prospect to follow what you are saying, whether in a casual conversation or a formal presentation of information and ideas. They'll remember it better--and you will too. Otherwise, you may forget to make a key point. If you waffle or ramble, you lose your listeners. Even for a conversation, mentally outline your objectives. What key "Points of Wisdom" do you want the prospect to remember? How will you illustrate each point? What phrases or slogans do you want to guarantee they will repeat afterwards? You speak to be remembered and repeated.
3. TALKING TOO MUCH. Salespeople often talk too much about themselves and their service or product. They make a speech rather than having an exchange or interaction, otherwise known as conversation. The key to connecting with a client is conversation; the secret of client conversation is to ask questions; the quality of client information received depends on the quality of the questions--and waiting for, and listening to, the answers! In fact, a successful encounter early in the sales process should probably be mostly open-ended questions, the kind that require essay answers rather than just "yes" and "no." And don't rush on with preprogrammed questions that pay no attention to the answer you've just received. Learn to listen, even pausing to wait for further comments. Silence draws people out.
4. NO MEMORABLE STORIES. People rarely remember your exact words. Instead, they remember the mental images your words inspire. Support your key points with vivid, relevant stories. Help them "make the movie" in their minds by using memorable characters, exciting situations, intriguing dialogue, suspense, and humor. Telling stories of satisfied clients and painting a picture of how this client’s condition will be improved with your product or service are appropriate.
5. NO THIRD-PERSON ENDORSEMENTS. There's a limit to how many bold claims you can make about your company and product results, but there is no limit to the words of praise you can put in the mouths of your delighted clients. Use case histories of your clients' success stories about the benefits they received from your service or product. When you are using their actual dialogue, you can say much more glowing things about yourself and your company than you could if the words were your own. Your endorsement stories should use the same ingredients as a good Hollywood movie: create memorable characters, use vivid dialogue, and provide a dramatic lesson learned.
6. NO EMOTIONAL CONNECTION. The most powerful communication combines both intellectual and emotional connections. Intellectual means appealing to educated self-interest with data and reasoned arguments. Emotion comes from engaging the listeners' imaginations, involving them in your illustrative stories by frequent use of the word "you" and from answering their unspoken question, "What's in this for me?" Obviously, a customer is going to justify doing business with you for specific analytical reasons. What gives you the edge is creating an emotional connection too. Build this emotional connection by using stories with characters that they can relate to and by providing a high You/I ratio, using the word "you" as often as possible and talking from their point of view.
7. WRONG LEVEL OF ABSTRACTION. Are you providing the big picture and generalities when your listeners are hungry for details, facts, and specific how-to's? Or are you drowning them in data when they need to position themselves with an overview and find out why they should care? Get on the same wavelength with your prospects. For first contacts with executives, describe what your company can do for them in broad generalities. With middle managers, discuss exactly how you can work together, a medium level of abstraction. If you are dealing with IT professionals, use the lowest level of abstraction, lots of facts and figures.
8. NO PAUSES. Few sales presentations have enough pauses. Good music and good communication both contain changes of pace, pauses, and full rests. This is when listeners think about important points you've just made. If you rush on at full speed to crowd in as much information as possible, chances are you've left your prospects back at the station. Give them enough time to ask a question or even time to think over what has been said. Pauses allow pondering and understanding.
9. IRRITATING NON-WORDS. Hmm--ah--er--you know what I mean--. One presenter I heard began each new thought with "Now!" as he scanned his notes to figure out what came next. This might be okay occasionally, but not every 30 seconds. Practice in front of your sales manager or colleagues and give them permission to call out whenever you hem or ah. Or video or audio record yourself, and note any digressions.
10. STEPPING ON THE PUNCH-WORD. The most important word in a sentence is the punch-word. Usually, this is the final word: "Take my wife--PLEASE." But if you drop your voice or add, "Right?" or "See?" or "You know?" or "Okay?," you've killed the impact of your message. Another popular punch-line killer is the word "today." Avoid saying, "Let's look at the recommendations we have for you today." Obviously, you're talking "today." The punch word in this sentence should be "recommendations."
Comedian Jerry Seinfeld says, "I'll spend an hour reducing an eight-word sentence to five words because the joke will be funnier." Salespeople can do the same thing with their key phrases because their presentations will be more powerful.
11. NOT HAVING A STRONG OPENING AND CLOSING. Engage your audience immediately with a powerful, relevant opening that includes them. For example, "You have an awesome responsibility." Then fill in what it is: increasing sales, reducing errors, cutting overhead, whatever your product can help your prospect do. Another excellent strategy is to do some research. Then you can say, "Congratulations on your company's recent success," and describe it. Or "I love your new commercials." Most salespeople start by talking about their company. Talk about your prospect instead.
12. MISUSING TECHNOLOGY. Too many salespeople rely heavily on their PowerPoint and flip charts and do not ever make an emotional connection. Technology is usually much more exciting to the person who created it than the person who is watching or listening to it. PowerPoint presentations tend to be wholly informational and don’t connect emotionally to the audience. Make technology a support, not a crutch.
When you learn to avoid these 12 common traps, you're on your way to being a "star" of the sales world, ready to accept an award for your dazzling performance.
7 Steps to Cloning Your Best Clients
Every advisor wants to acquire more clients like their top clients
by Bill Cates, CSP
Mr. Cates is president of Referral Coach International. He can be reached at Info@ReferralCoach.com
Over the years, there has been a lot of controversy around cloning; cloning of sheep, cloning humans, etc. When it comes to cloning your best clients there's no controversy at all. Every financial professional wants to acquire more clients that resemble their top clients. Here are 7 steps to accomplishing that goal.
Step #1: Develop an Ideal Client Profile
Okay, like you've never hear this before. But have you done it? Done it lately? One of the quickest ways to expand your book of business is to get laser clear on whom you serve the best and who serves your business the best. The clearer you are on what you want, the more likely you'll get it.
Who are your best clients? They know the value of your advice and they trust you implicitly. They have substantial discretionary cash flow and don't have the time, desire, or knowledge to manage their own finances. They may have substantial net worth from their own hard work or inherited. They are well connected in their community. They meet or exceed your financial minimums. They are willing to pay for your advice without complaining. They are happy to take a stake in your success.
How do you attract more of these people? How do you make sure your existing clients and centers of influence only refer you to these 'A' clients? Simple, you develop an Ideal Client Profile and you share it with certain clients and centers of influence.
Many of the top producers who participate in our Referral Championsâ„¢ Coaching Program tell me that quantity of referrals isn't their issue anymore. Rather, they want to improve the quality of their referrals. Using an Ideal Client Profile (ICP) is the answer. Here's how it works:
Determine the quantitative and qualitative characteristics of your 'A' clients and write them down. Quantitative characteristics are things like: net worth, investable assets, income, occupation, location, age, business, and family situation, to name a few. Qualitative characteristics are things like: attitude toward professional advice, general personality, risk tolerance, and lifestyle. Every rep's profile will be somewhat different. For instance, you might really like working with small business owners, while a colleague might enjoy engineers, or high-level executives in large companies. There is no right or wrong here. You may enjoy working with 'middle market' folks. The point is, when you are only working with people who fit your profile, you do a better job for your clients, your clients experience the value you bring to the relationship, and they're more likely to give you referrals to people like themselves.
Just taking the time to be clear on who your 'A' clients are is a worthwhile exercise. But don't stop there. Write your profile down in a format where you can share it with certain clients and centers of influence. I've found that showing people your ICP is much more effective then just telling them.
Step #2: Determine Whom You Want to Interview
Steps 3 and 4 involve interviewing you're 'A' clients. But before you run off and start these interviews, it would be good to know who makes the best interview candidate. Not all your clients will be open to the type of interview you will be requesting. It's best to select clients who are fairly open in their style of communication. Open people tend to be freer with their time, their advice, and their willingness to help. Guarded people are less free with their time and will probably feel uncomfortable with your interview. People who are well-networked are usually open types who enjoy helping others (you, their friends, and their colleagues).
From your list of 'A' clients, identify the most 'open', networked, socially active, as well as your'œ'A clients who just plain love you. These are your best interview candidates.
Step #3: Request an Interview with Your Best Clients
It's important to be totally upfront with why you want to interview your clients. It's a combination of wanting to know what's working in your relationship, what they find valuable , then brainstorming how you might approach others like them. Your scriptmight sound a little like the following: "I've been taking a look at my business and want to focus most of my energy serving clients much like yourself. I'm doing a little research and I really value your help. Iâ'd like to get together for about an hour to do two things. First, I want to make sure I'm on track with you. I want to see what you value in our relationship and see if there's anything I could or should be doing differently to serve your needs. Second, I want to brainstorm a little on how I might reach more people like yourself, people who I believe I can serve the best. I'd be happy to do this at a time most convenient for you. I'll even bring a nice lunch over to your office if need be. What do you think?"
Don't worry about the exact words I used above. Find your own words that are natural for you.
Step #4- Determine the Value
It's valuable for you to determine the value you bring to your client relationships. Here's a gusty way to start the interview: "George. On a scale of 1-10, where am I with you right now?" That will get your juices flowing as well as some important information flowing from your client. You might also ask, "George. What about your financial situation keeps you up at night?" Follow that with, "Is our current plan addressing your concerns or do you think we need to make some adjustments?" Of course, the questions you ask will be specific to the relationships and what you may have covered in a previous meeting.
Ask them why they do business with you and what attracted them to you in the first place. Tell them, "If you could wave a magic wand over me and our relationship, what would be different?"
By the way, you should consider recording these interviews. You'll be able to capture everything your client says without having to take notes. This will free you up to really listen and formulate better questions.
This value discussion will help your clients get clearer on the value you bring to them. It will teach you what people value about you, your process, and your service.
Here's an example. I recently received an email from a subscriber to my email newsletter. Before he became a financial professional, he was a practicing attorney. He said, as a financial professional, he prided himself on his attention to detail, his ability to explain a financial plan, or a particular type of investment vehicle. When he stared asking his clients what they valued from him, he heard a lot of great things. But his clients never mentioned his attention to detail or his ability to explain a financial plan. What a valuable lesson for him to see where his clients recognized the value.
Step #5- Brainstorm for Introductions
Now you move into the area of working on your marketing plan. I suggest your start off general and become more specific. Here's what I mean. Begin this step by telling your client you want to meet more people like them – people who fit your ideal client profile. Show them your profile. Ask them, "If you were in my shoes, how would you go about trying to meet people like yourself?" "What would you say to them to get their attention? What's a compelling reason for someone like yourself to take a timeout from their busy life and sit down with me?â" These types of questions will get them looking at your business from an important perspective: yours.
Tell them, "Part of my business vision is to provide such great value to my clients that they naturally want to introduce me to others who might also benefit from the important work I do. Does that make sense?"
Now, if your client has been a willing participant in this interview and he or she remains open in their demeanor, you can take this meeting to the next step of actually asking for referrals.
Step #6- Get Introduced
If you have selected the right type of client to meet with in the first place, you'll probably get from 1 to 5 referrals. The average is 4. As you move up the ladder of affluence, it becomes more important to be introduced to your new prospect, rather tha calling them without their expectation. How do you get introduced and how do you approach your new prospect?
Here are two effective questions to help you customize your approach to a new prospect. "How would you like to introduce me to George?" And, "What do you think you need to say to George to get him interested in taking my call." It's as simple as that. Now you just step into the flow of their relationship. Your client will help you build your customized approach to their friend for colleague.
Step #7- Evaluate and Follow Up
After each interview, there are several things you want to do:
1. Reflect on the information you received from your client and adjust your process and/or service if necessary.
2. Reflect on the Ideal Client Profile you presented and fine-tune it if necessary.
3. Send a thank you note and very small gift to your client for meeting with you and for the referrals, if you obtained some.
4. Contact any new referral prospects right away.
5. Keep your client in the loop with what happens to their referrals.
This is merely a template to follow, not an exact road map. What I mean by that is you should adjust this process to fit your style and your client base. The important thing is that you are sincere about wanting to bring the best possible process and service to your clients, and that you believe you can truly help others to whom they might introduce you. When you come from a place of service to others, you'll always be on safe ground.
Sample Ideal Client Profile of a Retiree
Here is an example of an Ideal Client Profile for a retired individual. In this example, no specific numbers are given relative to income, net worth, etc. If you have specific requirements, you may want to include them in your profile.
Who I Serve the Best
- Age 55 or older
- Highly successful when he/she worked
- Lives in established and/or affluent neighborhood
- Family is important to them
- Knows the value of professional advice
- Wants to maintain their lifestyle
- Active in one or more organizations
- Worked for a company with a great benefit program or ran a very successful business
Product and Service Opportunities
- IRA Rollovers
- 72t distributions
- Exercising stock options
- Large case proposals
- Retirement projections and implementation
- Asset allocation
- Long-Term Healthcare Insurance
Increase Your Potential by Improving Your Perception
Homer Simpson or the Hulk- Which super hero are you reflecting?
by Jill Wade and Kelly Martin
John was accustomed to having Superhero status with his family, friends and business colleagues. He was handsome, strong, witty and had been a motivated executive in his company for many years. Recently, as he was leaving a long day at work, he caught a glimpse of his reflection and was shocked at what he saw. He was unable to recognize the defeated, unhappy, overweight, and tired version of 'Superhero' John. He felt the weight of the world on his shoulders but was completely unmotivated to do anything about it. So he began to wonder: is perception the reflection of what is going on inside of you?
Are you aware of how others perceive you? Are you reflecting health, vitality, strength, and mental sharpness? The message you are sending out to the world may not be the one you would like. Your mind, body and spirit are intricately connected and when well balanced, you are at your best. These days so many productive, hardworking business people are feeling the effects of long term stress: weight gain, lack of motivation, less energy, more irritation, less loving, and less tolerance.
Remember you only have one chance to make a great impression; sometimes perception is everything. You are your best asset, and you may need to take time to focus on the Superhero in you.
Which Superhero are you reflecting?
Super Man- “ The ultimate hero is sharp, clear thinking, loving, energetic, fit and ready to help others. Success seems to come easy to both in his career and home-life. His stress and sex hormones are in balance; he exercises regularly and practices great nutritional habits. Superman sleeps deep and sound, waking up refreshed and ready to save the world. He is able to balance his drive and motivation with kindness and patience to his employees. Those that work with him admire and respect him. He makes sound decisions and facilitates the growth of his company.
The Hulk- “You wouldn't like this hero when he is angry. He experiences rage at the smallest things, flying off the handle at work and at home. He is struggling with weight gain around the middle, due to elevated cortisol because of high stress levels. He tries to make it to the gym consistently to work off some steam, and that weight gain, but nothing seems to help. His stress glands are taking a beating by having to stay in fight or flight mode most of the time, this puts him at risk for decreased immunity and increased recovery time after illness. Sometimes sleeping is a challenge if he is wired and his mind is racing, so often times he will have to rely on caffeine and other stimulants to keep him alert during the day. His employees have learned to read his mood before approaching him with problems during the workday.
Homer Simpson- “ As lovable as Homer can be, he is definitely lacking some Superhero qualities. He is overweight, a heavy drinker, makes poor nutritional choices, is a couch potato, and unmotivated to set the world on fire at work. He has a potbelly, abrasive personality, and is losing his hair! Good thing Marge loves him. At mid-life, Homer's sex hormones are starting to decline, decreasing his libido, contributing to weight gain, making him grumpy, and unmotivated to get off the couch. His stress glands (adrenals) are probably fatigued due to poor nutrition, drinking and lack of exercise. His co-workers are fond of him, but often will circumvent him when trying to finish a product due to his lack of motivation.
Austin Powers- “ He is a shagadelic example of someone who has it going on internally, but his outer appearance is somewhat misleading. He may be overlooked initially for career opportunities because of his unprofessional appearance; but if given enough time, he can usually prove his worth. He is sharp, witty, and brave, has a healthy libido, and for the most part is physically fit. His hormones are balanced and he manages the stress in his life with flair. He makes decent food choices and doesn't over-indulge in alcohol. He sleeps well with whomever he entices into bed with him. The only thing Austin needs is a power smile, haircut and a stylist! Others would perceive him as healthy and successful that much sooner with a few surface improvements.
Balancing your Circle of Health consists of four key components: hormones, nutrition, nervous system, and purification.
- Hormones. As men age, hormones like testosterone and growth hormone start to naturally decline. If these imbalances are corrected, men may have the advantage of an increased libido, maintaining leanness and muscle mass, staying sharp and focused, and maintaining their edge at work.
- Nutrition. Because every cellular activity in your body requires the proper nutrients, it is very important to feed yourself healthy food and quality supplements. You have to have the appropriate fuel, to operate as a superhero. For example, B vitamins are important for energy and the production of hormones; whereas, vitamin D3 is important for immunity and fighting cancer.
- Nervous System. Proper levels of neurotransmitters like serotonin and dopamine will keep moods even, tempers in check, creativity alive, and those around you happy. Proper amounts of amino acids are essential for neurotransmitter production. Supplements such as 5-HTP and amino acids, along with moderate exercise can improve your neurotransmitter levels.
- Purification. A superhero's world is full of toxicities. Preservatives in foods, pollution in air, lead in paint, aluminum in deodorant are examples of toxicities in all areas of life. Alcohol and prescription/non-prescription drugs can also be considered toxins. To perform at the highest level, purification of cleansing organs like the liver and kidneys is very beneficial.
So, how are you being perceived? Are you reflecting your health or the lack thereof? You can control your reflection for a while, until age or poor health take over. It is important to put your best foot forward in this world. Perception can be critical in a job hire, promotion, sale or deal. You can still be the Superhero you were destined to be by taking a few crucial steps toward health. Bring the superhero back; he is inside you, just waiting to burst out. Who knows, someone may mistake you for Clark Kent!!!
About the Authors
Jill Wade, DDS, MAGD and Kelly Martin DC are committed to helping men and women find a natural approach to wellness. Dr. Martin and Dr. Wade explore the synergy between the entire body and the mouth being a window to wellness and alignment. Co-Founding Relevance Health was a combined effort to help men and women lead healthier, better lives. To learn more about a healthy
'Circle of Health' visit www.relevancehealth.com.
Using Facebook as a Business Tool
Numbers show this social-media can be a viable building block
by Heather Lutze
Ms. Lutze is CEO of The Findability Group, a search-engine marketing firm. Visit www.findabilitygroup.com.
Most people know Facebook as a great way to stay in touch with friends and family, and to reconnect with long lost childhood classmates. But there's another side to Facebook - one that can help your business grow.
According to Facebook's own compilation of statistics (found in their Press Room), more than 1.5 million local businesses have active Pages on Facebook, and more than 20 million people become fans of Pages each day. For CEOs and business owners, this means Facebook is definitely a way to spread your company's message, build community and loyalty among customers, and ultimately increase your company's bottom line.
If you've only used Facebook for personal reasons, making the jump to a business application can seem challenging. The following suggestions will help you create a business Facebook presence that generates results.
Distinguish your Facebook person and persona
Ask yourself these two important questions: "Who am I as a person outside of my business?" (This is your person.) "Who am I as a business owner on Facebook?' (This is your persona.) Can you combine the two identities?
Absolutely not! If you already have a personal Facebook page that you use to keep up with your friends and family, then keep it personal. Don't mix your business contacts into that page.
Rather, build a new Facebook profile as the CEO and Founder of Company XYZ. This is your business persona page. You could even name it John W. Smith, CEO and Founder of Acme Corporation. On this page you'd put your corporate bio and other information that pertains to your role in the company - the persona of you as a CEO. Then you can build a Fan Page off of that personal profile that talks specifically about the business.
Mixing your personal and business pages is discrediting and unprofessional. And yes, it's perfectly fine to have two profiles on Facebook. You'd simply have to use your middle initial or some other distinguishing information to differentiate the two accounts.
Name your accounts wisely
While your individual posts on Facebook are not ranked in Google searches (at least not yet), your profile is ranked. Simply go to your settings tab in Facebook and elect to make your profile public. How you name your business persona page and fan page is critical for ranking purposes. While you'd certainly use your name for your individual business account and use your company name for your fan page, you'll want to tag some keywords onto each name. For example, if you as the CEO wanted to be known as a leader in internet marketing, you might name your business profile John W. Smith, Internet Marketing Strategist. Similarly, you could name your fan page in such a way that there's no question what your company does, as in "Acme Corporation, Widget Supplier and Manufacturer."
Think of the keywords you want to be found under and work those keywords into your tagline or title. This strategy gets your profile open to the world and helps you go beyond just building a Facebook community of friends and fans. Now you're opening your company up to a bigger community outside of Facebook.
Post appropriate content
Once your pages are set up, encourage your current clients or customers to join your fan page. Anything that happens with the business, such as any trade shows the company is attending, new products or services you're offering, any new company developments you want people to know about, or anything related to the company as a whole, would appear on the fan page.
People read those posts and monitor what your company is doing or offering and they then invite others to become fans.
As for your business persona page - the page focused on you as the CEO and Founder - here you'd post information about conferences you're attending, your thoughts on the industry or company, and business things related to you personally. For example, maybe you won an award or got an article published. Talk about these types of things on your business persona page. Additionally, on your business persona page, you'd only put out an acceptfriend request from people who directly relate to your business. If one of your personal friends finds the page and offers a friend request, direct that individual to your personal page.
Realize that while you can control whom you befriend, you have no control over who becomes a fan of your company's fan page. People become fans because they are interested in your topic. Also, it's okay to have blatant ads, coupons, and specials for your company on your fan page. In fact, fan pages were designed as a way to give businesses a way to blatantly promote their company without getting people upset. However, don't put ads, coupons, or specials on your business persona page. If you do, people will quickly start un-friending you.
Finally, remember to feed your Twitter posts, blog posts, and YouTube videos directly to your fan page so you can extend your brand. You can do all this
Build Community and Profits
With more than 400 million active users on Facebook, this is one place you definitely want your company to be seen. The key is for clients, prospects, and the Facebook community at large to see your business in the most positive light possible. By keeping your business and personal information separate, building your pages professionally, and posting relevant content your audience will want to read, you can create powerful relationships on Facebook that positively impact your company's bottom line.
While optimistic, African Americans face barriers to realizing financial goals
Financial services companies need to more effectively engage the African American community
NEWARK, N.J.--(BUSINESS WIRE)--African Americans say they are optimistic about achieving their financial goals, many of which reflect a strong focus on the well-being of the family and community, according to The African American Financial Experience, a study released today by Prudential Financial, Inc. (NYSE: PRU). However, the study also found that African Americans tend to hold fewer financial products, invest more conservatively, lack relationships with financial professionals and be more likely to borrow from company retirement plans - all of which are barriers to achieving their financial goals.
"Clearly, companies need to do more if they are going to help African Americans achieve financial security, both as individuals and in the workplace.
The study underscores growing affluence in the African American community and the importance of financial planning to achieve financial security. But while African Americans are looking for assistance and advice, 78 percent feel financial services companies have not effectively engaged the African American community and, as a result, most do not use or have access to financial advisors.
"Understanding the financial needs of the African American community is essential if the financial industry is to build trust and productive relationships," said Charles Lowrey, chief operating officer, Prudential's U.S. Businesses. "We believe this study gives us great insight into ways the financial services industry can address challenges faced by the African American community."
In the African American community, financial goals are not just about increasing personal affluence or planning for a secure retirement. The survey found that African Americans are more likely than the general population to cite charitable donations as an important goal (68 percent vs. 55 percent), or to rate issues like educating children about debt avoidance and providing college tuition as very important to them.
When it comes to retirement readiness, The African American Financial Experience found that only two in 10 African Americans believe that they are on track to meet their planning and savings goals for retirement, and nearly twice as many say they are way behind or haven't even started. In fact, the study found that 60 percent of African Americans surveyed have less than $50,000 in company retirement plans and only 23 percent have more than $100,000.
While most Americans expect company-sponsored retirement plans to be the primary source of retirement income, African Americans are slightly less likely than the general population to put money into these plans on a regular basis. And they are three times more likely to tap into their 401(k) or similar plans to meet immediate financial needs.
"African Americans are looking to their employers for information, advice and tools to help bolster their savings and better plan for their financial goals," said Sharon C. Taylor, senior vice president of human resources at Prudential. "Clearly, companies need to do more if they are going to help African Americans achieve financial security, both as individuals and in the workplace."
The African American Financial Experience also found:
While 82 percent of African Americans believe maintaining their current lifestyle in retirement is critical, only one-third feel confident they will be able to accomplish this. In addition, 83 percent place critical importance on not becoming a financial burden on loved ones, but just one in 10 is confident of being able to achieve that goal.
African Americans say their most important future financial needs include building wealth portfolios and retirement nest eggs as well as transferring wealth to their heirs.
African American decision-makers tend to be more independent learners when it comes to finances, relying on books, financial websites, financial seminars and conferences and their employers for information. They also show a high interest in learning about financial issues through faith-based organizations.
African American women are driving financial decisions in their households. Of the African American women surveyed, 72 percent indicated that they are the primary financial decision-makers in their households and do not share financial decision-making equally. This compares with 69% of African American men, and 54 percent of the general population.
African Americans are nearly twice as likely to have a dream of starting a small business as those in the general population (35 percent vs. 19 percent), and view starting their own small business as a path to financial freedom. However, more than half of those with an interest in starting a small business say a lack of capital has been the primary hurdle to getting started.
The African American Financial Experience survey was conducted in November 2010 as part of a series of research projects focused on multicultural markets. It polled 1,500 African American financial decision-makers between the ages of 25-70 with incomes above $25,000 and 500 general population financial decision-makers as a benchmark. For more information on the survey, visit www.prudential.com/africanamericans.
Phishing e-mail received from Episoln data breach
Better Business Bureau issues a warning to consumers regarding onLine commerce
Just days after millions of customers' email addresses were stolen in one of the largest data breaches in U.S. history, the Better Business Bureau is seeing one of the first Epsilon data breach phishing scams.
Phishing, a popular emailing scam, is a term coined by computer hackers who use email to fish the Internet hoping to hook you into giving them your logins, passwords and/or credit card information. If you are a customer of one of the companies that had email data stolen, BBB is warning you to be on the lookout for phishing emails.
Typical phishing scammers pose as reputable companies to fraudulently obtain your personal information. In this case, the BBB is now seeing emails being sent from a fake 'Chase Bank,' one of the companies whose data was compromised. Following suit, the email warns that 'your account' will be deactivated or deleted if you do not update your profile immediately. The email instructs you to update your account by clicking on the link provided.
"These hackers are looking for you to respond with vital information that can ultimately lead to identity theft," said Paula Fleming, BBB Spokesperson. "Consumers need to know the red flags in order to keep their identity protected."
BBB advises consumers that there could be other phishing emails shooting through cyberspace and to do the following if they suspect they have fallen victim to a phishing scam.
Never reply to the email. If the message includes a link within it, never click it. Many schemers use this as way to spread a viral attack on your computer.
Do not give personal or financial information to anyone who contacts you via email. Even if they claim they are from your bank, the IRS or a law enforcement agency, these businesses will not contact you via email; they will send you a letter.
Spread the word. Discuss phishing scams with all the members of your family who have email addresses. Young people are very computer savvy, but may not be scam savvy, and older adults are specifically targeted by scammers because they are often very trusting.
Transmitted information should be encrypted. When sending personal information like addresses, credit card numbers and Social Security numbers over the Internet, make sure the website is fully encrypted and the network is secure. Look for https (the “s†stands for secure) at the beginning of the URL address to confirm its security.
Know the red flags. Watch out for grammatical mistakes in emails. Poor grammar or misspelled words are red flags that the email is probably a scam. Most importantly, never wire money based on instructions in one of these suspicious emails. Scammers prey on those who think they need to wire money to have a situation resolved.
Protect your computer. Keep your anti-virus software up-to-date and run it regularly.
Contact the Federal Trade Commission. The FTC works to legally prevent fraudulent business practices in the marketplace. File a complaint with the FTC by calling 1-877-HELP.
When Clients Choose Brokers:
Ancillary Plans Can Make All The Difference
by Susan Fowler, CFP
Ms. Fowler is vice-president of sales for UnitedHealthcare's Golden Rule Insurance Company. You can contact her at susanfowler@goldenrule.com
Over the past few years, an increased number of consumers have found themselves in the unfamiliar position of shopping around for their family's health insurance coverage for the first time, often without knowledge of what was available in the individual market. Successful brokers quickly recognized that educating these consumers about a wide range of products and services was often the determining factor in whether or not they became clients.
Consumers new to the individual market might assume, for example, that dental, vision and other types of ancillary plans are only available through employer-sponsored plans, or they figure that individual coverage is too expensive. This is where the broker can make the difference, by letting clients know dental and vision care is integral to a complete health care package and that there are affordable plans that can provide their families with quality coverage in line with their budgets.
In doing so, brokers not only can add to their revenue from existing clients, but also can gain a competitive advantage over other brokers in attracting new clients including those who haven't traditionally purchased in the individual market.
"I speak to a lot of brokers, and I always tell them that ancillary plans can be the differentiator for them," says Frank Loeffler, a broker with Blue Star Benefits based in Overland Park, Kansas. "Dental and vision plans can help round out a package and allow the broker to offer clients more complete coverage to enhance their health care at an affordable cost. Clients will recognize this and they will appreciate what the broker is trying to do for them. As a result, they are more likely to choose to do business with that broker."
Loeffler observes that too many brokers focus solely on medical coverage when they discuss health care options with their clients. "We always offer dental and vision with all of our packages. Then it's up to the client whether to keep the ancillary coverage in or not," he says.
Unquestionably, brokers can tap a large pool of prospects that do not have ancillary coverage, including the estimated 34 percent of Americans who do not make annual visits to a dentist, according to a 2009 survey reported by USA Today. Presumably, many of these people forgo dental visits because they lack coverage.
"Many don't understand the importance of dental and vision coverage," says Kurt Zemba of RMB Insurance, based in Old Lyme, Connecticut. "They don't have dental coverage because they think it's not affordable or not available to them. They might not even know about vision coverage. We advise them that they need to have complete coverage."
Zemba notes that the key is to make clients aware that ancillary coverage is available and affordable. "Tell them briefly what benefits are available, what they cost, and what value they bring. It's an easy sell. You have to be brief and to the point, and you have to be excited about it."
He says when clients discover they can add dental and vision coverage for a small fraction of what they pay for the rest of their health care plan, the decision is a no-brainer. That's because clients know paying for dental work on their own can be an expensive proposition. Top-quality dental plans provide a set amount of financial support for a wide range of dental exams and treatments, even if the client goes out of the network.
Consumers of all ages need affordable dental and vision coverage, and this presents a significant growth opportunity for brokers in the individual health market who enhance their portfolios with ancillary products. Typical prospects for ancillary coverage include:
- Consumers new to the individual market who are accustomed to employer group benefits which often included dental and vision as well as health plan coverage
- Workers who are currently covered by employer health plans but who have lost or aren't offered dental and vision coverage
- Seniors on Medicare, and fixed incomes, who need dental and vision care but often assume it is out of their reach financially
- Children whose parents don't have dental or vision insurance and who need preventive care to avoid problems as they age into adults
- Current clients who prefer to deal with one broker and one health insurer whom they know and trust for all of their coverage needs, including dental and vision
Zemba adds that relatively few well-known insurance providers offer high-quality ancillary coverage for individuals. "Brand, value and awareness, not necessarily in that order, are the most important factors in selling ancillary plans to clients," says Zemba, whose agency serves all of New England and serves several other states through telemarketing. He uses many channels to get the word out to clients and prospects about ancillary coverage, including e-mail, phone calls and in person, and having access to effective marketing materials is crucial. "You would be surprised how many responses I get to e-mails," he says.
Loeffler concludes that ancillary plans as part of a comprehensive health care package help brokers and clients achieve what should be their primary goal, to level the costs of all medical expenses for our clients, and to provide them with more complete and better health care.
Gen Y looks to Twitter, not advisers, for financial info
Advisers need to get with the times, survey results suggest
By Liz Skinner for Investment News - posted March 9, 2011 3:38 pm ET
Financial advisers looking to attract younger clients had better sharpen up their tweeting skills.
A new survey of adults 22 to 34 shows that only 10% of this so-called Generation Y considers professional investment advisers as the most valuable source of financial news and information.
Of this same group, about 21% most trust their friends, colleagues and relatives for financial news. The same percentage rely most on TV and radio talk shows, while 20% depend most on news-related websites. Only 11% rely most on newspapers, according to the survey, in which Maritz Inc. screened 963 adults for TD Ameritrade Holding Corp.
The survey also found that a third of Generation Yers consider social media a valuable source of information about the financial markets and the economy, compared with 27% for Generation X, 21% for baby boomers and 14% of people born in or before 1930.
'The younger generation is truly embracing the saying that nobody cares more about your money than you,' said Stuart Rubinstein, manager director of client engagement at TD Ameritrade, the online brokerage. 'They're not afraid to ask for help or information, in fact, the more, the better.'
TD Ameritrade's Annual Investor Index survey also found that Generation Y is becoming responsible for its finances at an earlier age.
According to the survey, nearly half of adults falling into the Gen Y category learned about money and personal finance at 12 or younger. That figure fell to 35% for baby boomers and 32% for people who are 80 or older. -MORE-
www.ReferralCoach.com
I’m a big believer in asking your clients for referrals. But you can’t ask every client for referrals every time you meet with them. Here are 7 proven ways to promote referrals to your clients. About 70% of the time, these techniques will result in your clients giving you referrals at some time in the future. However, you can expect that about 30% of the time, these techniques will generate referrals right on the spot. These little adjustments you make now act just like compound interest turns small deposits into large savings. You’ll reap the rewards for years to come.
To show you how practical these techniques are, I’ll bring most of them to life with a sample script.
1. Reminder of Confidentiality
2. Who You Serve the Best
3. How I’ll Contact Them