death & dying what an agent can do to help with the “process” presented by jeffrey f....

Death & DyingDeath & DyingWhat an Agent Can Do to Help with the “Process”What an Agent Can Do to Help with the “Process”

Presented by

Jeffrey F. Bigler, CLU, ChFC

Jeffrey F. BiglerJeffrey F. Bigler 1986 - Started in financial services industry-obtained insurance license. 1988 - Obtained Series 7 and 63 securities licenses. 1989 - Luther College graduate with Economics & Management majors. 1989 - Life Investors Home Office in Marketing Department. 1993 – Moved to Rochester, MN as a field manager. 1997 – Appointed Executive General Agent with Life Investors managing

representatives in MN, WI, AZ & IA. Business focus on comprehensive individual financial planning & business

succession planning. Over $150 million assets under management. MDRT Qualifier since 1997 – Court of the Table since 2004, TOT 2007 Achieved CLU qualification in 2002 ChFC qualification in 2005

Jeffrey F. BiglerJeffrey F. Bigler Married 25 years 2 boys 2 girls 3 dogs, 1 cat 1 chainsaw & a baseball bat

WHY NAIFA?WHY NAIFA?Why are you here? • Camaraderie? • Association? • Education? • Part of something Good? • Give Back?

Death ClaimsDeath ClaimsHow many of you have had training on this topic?

How about education?

Training does not get you to the

top of your plateau, education does.

Training teaches you how, Education teaches you why.

A Death Claim Properly Handled…A Death Claim Properly Handled…

Does not sell product.

Creates a desire or want Creates a need or demand Proves the need, fills the demand

In short, done right, a death claim creates a demand for your “SERVICE” that converts your process

FROM YOU SELLING, TO THE CLIENT BUYING.

Understanding the Role of an AgentUnderstanding the Role of an Agent

Few truly understand the difficulties and challenges faced by a life insurance agent.

Understanding the Role of an AgentUnderstanding the Role of an Agent

Actual wording on life application:

“Patient has chest pains if she lies on her left side for over a year.”

Understanding the Role of an AgentUnderstanding the Role of an Agent

Actual wording on life application:

“On the second day, the knee was better and on the third day, it had completely disappeared.”

Understanding the Role of an AgentUnderstanding the Role of an Agent

Actual wording on life application:

“His past medical history has been remarkably insignificant with only a 40 pound weight gain

in the past three days.”

Understanding the Role of an AgentUnderstanding the Role of an Agent

Actual wording on life application:

“She had some problems but had her armpits removed and looks much better.”

Actual wording on APS:

“Patient left his white blood cells at another hospital.”

Understanding the Role of an AgentUnderstanding the Role of an Agent

Actual wording on APS:

“The patient is tearful, cries constantly, and appears depressed. She has no past history of suicide.”

Understanding the Role of an AgentUnderstanding the Role of an Agent

Actual wording on life application:

“…herni; hernea; herrneea; herneo; herrnneia, hurneyia, whatever it was – you know what I mean and it’s okay now.”

Understanding the Role of an AgentUnderstanding the Role of an Agent

Understanding the Role of an AgentUnderstanding the Role of an AgentIt’s All About The

Experiences…

Why is Death & Dying such a key topic?Why is Death & Dying such a key topic?

At some point in your career,

it will happen.

Very few agents have ever been educated in handling these situations.

Are you prepared?

Today’s AgendaToday’s AgendaOffering Support (Moral, Relational & Organizational)

Filing a ClaimGetting OrganizedAsset Transfer DetailsService, Service, ServiceCase StudiesQuestions

STEP ONESTEP ONEOFFERING MORAL SUPPORT –

Listen with your heart Be compassionate Avoid clichés Make contact – attend the funeral Don’t disappear – contact them after a few

days just to offer support. Write a personal note Be aware of holidays and anniversaries

STEP TWOSTEP TWO

OFFERING A RELATIONSHIP –

Give value first. Be known as a resource. Dig in. Be committed or it won’t work. Be consistent. Once you get involved, seek

a leadership role. Get to know people on a friendly basis. Go slow. Relationships are not built in a

day. They’re built, with value, day-by-day.

STEP THREESTEP THREEOFFERING ORGANIZATION SUPPORT

Social Security– Provide them with the phone number & contact name– Call with them to set appointment– Offer to go with them to appointment

Workman’s Comp– Provide them with the phone number & contact name– Call with them to set appointment– Offer to go with them to appointment

Employer Benefits– Offer to call employer’s office– Research steps and paperwork needed– Understand benefits available to survivors

STEP FOURSTEP FOUROFFERING “EXTRA” SERVICES

- Notary services- Claim paperwork processing- File clean up & organization- Tax or attorney referrals- Cost basis research

This leads to “TESTIMONIAL WORD”(i.e. referrals, recommendations)

STEP FIVESTEP FIVE

- Listen without distractions.- Focus eye contact on the communicator.- Write the communication down.- Repeat it back or ask about it.- Deliver what you promised.

LISTEN

Which one are you?Which one are you?

“If you walk in with information about you, they consider you a salesman.

If you walk in with ideas and answers, they consider you a resource.

Which one are you?”

- Jeffrey Gitomer

FILING A CLAIMFILING A CLAIM

- Gather as many pertinent facts before you meet. - Review all notes.- Double check ownership and beneficiary designations.- Have lists made for surviving family.

Filing a ClaimFiling a ClaimPreparing to meet with the surviving

spouse/family

Forms needed

Filing a ClaimFiling a ClaimFo

rms

Needed

TYPICAL REQUIRED FORMS INCLUDE:

Claim Paperwork from each company Policies Copies of statements Certified Death Certificate Copy of Will Certified Copy of Letters of Testamentary

– Court document stating official appointment of executor Affidavit of Domicile

– Verification of the state where client lived prior to death Obituary from newspaper

Filing a ClaimFiling a ClaimPreparing to meet with the surviving

spouse/familyForms needed

Meeting with the client– Allow time to build trust and confidence.– Follow their lead.

Filing a ClaimFiling a ClaimPreparing to meet with the surviving

spouse/familyForms neededMeeting with the client

Other advisor involvement– Attorney, accountant, HR dept., Union, other

investment or insurance advisors.

Filing a ClaimFiling a ClaimPreparing to meet with the surviving

spouse/familyForms neededMeeting with the clientOther advisor involvement

Deliver the proceeds

Delivering the proceedsDelivering the proceeds

Deliver in person if at all possible!

1. Rapport – put yourself in their seat, find something in common2. Need – determine factors that influence motivation to listen3. Importance – find weight they assign to benefits, time frame, etc.4. Confidence – ability to gain credibility, remove doubt, comfort5. Value Transferred – ability to communicate value6. Enthusiasm – your belief, your attitude, your passion contagious

Getting OrganizedGetting Organized

Helping survivors cope with new responsibilities– Was survivor the decision-maker? Organizer?

Passive participant?– What will their role be now?

Getting OrganizedGetting Organized

Helping survivors cope with new responsibilitiesOffering Personal Financial Inventory

Getting OrganizedGetting OrganizedHelping survivors cope with new responsibilitiesOffering Personal Financial Inventory bindersHelping family determine what they

want to do with the estate.

Financial StepsFinancial StepsWhat financial steps would you take if you had

7 days before your client died?

1.) Check Ownership2.) Check Beneficiaries3.) Update Will4.) Check titles on assets5.) Check on charitable bequests6.) Others…

3 Ways Assets Pass to Heirs3 Ways Assets Pass to Heirs

C o n tra ct T it le W il l

A sse ts

Assets – Taxable or Not?Assets – Taxable or Not?

TAXABLE ASSETS: _________________ _________________ _________________ _________________ _________________

TAX-FREE ASSETS: ________________ ________________ ________________ ________________ ________________

House Child’s 529 CD at bankIRA Boat Life InsuranceJoint Account 2nd Residence AD & D

What’s the Cost Basis?What’s the Cost Basis?STEPPED UP BASIS: STEPPED DOWN BASIS:

OWNERSHIP ISSUES:OWNERSHIP ISSUES:

FEE SIMPLE TOD(Transfer On Death)

JOINT TENANTS WITH RIGHTS OF SURVIVORSHIP

JOINT TENANTS IN COMMON

WHAT’S STRETCHING?WHAT’S STRETCHING?

“The term ‘stretch’ refers to a method for extending the duration of traditional and Roth IRA beneficiary distributions to certain successor beneficiaries, beyond the death of an original designated beneficiary—a method especially valuable to a nonspouse beneficiary.”

Bankers Systems Retirement Plan ServicesJanuary 2004

Common Family Goals Common Family Goals for Proceedsfor Proceeds

Creating an Income Stream

Leaving a Legacy

SERVICE, SERVICE, SERVICESERVICE, SERVICE, SERVICE

Remember the state of mind the survivors were in during the process.

Reviewing the process and goals may be needed frequently to continue to keep everyone on same page.

Continue to provide extraordinary service until family is comfortable with new responsibilities.

Don’t forget to make sure client updates wills, trusts, titles, beneficiaries, etc.

SALES OPPORTUNITIESSALES OPPORTUNITIES

Advanced Financial Consultants

AFC’s TOP CLIENTS:

Top 10 clients, 4 are from death claims.

Top 20 clients, 6 are from death claims.

Just 8 years ago:

Top 10 clients, 6 are from death claims.

Top 20 clients, 9 are from death claims.

CASE STUDYCASE STUDY

Pete & Patty– Referred friends (apprx 45yrs old)– Husband cancer with < 1 month to live– 3 Joint accounts– 2 Retirement accounts– 2 529 accounts– 2 UTMA accounts– 2 Work retirement accounts– Work life insurance plan

The Facts

CASE STUDYCASE STUDY

- Gather as many pertinent facts as possible- Check ownership

- Joint accounts to Individual TOD accounts- Check beneficiaries- Start lists

STEPS

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CASE STUDYCASE STUDY

Patty - Individual TOD Accounts:

Stepped up basis on 2 Joint Accounts = $ 18,601.23 or $2,790 tax savings

- Change Title on House

Benefits to Client

CASE STUDIESCASE STUDIES

Patty- Individual Account- IRA Rollover Account- Life Insurance on Survivor- 529 Accounts

Opportunities

$ 1,499,000 Assets Gathered, 1 life app

The more you believe, the more you will sell.

The more value you provide to others,

the more people will come to know and respect you.

Most people are looking for some secret formula for success – you already have the secret within you.

Being a person of principle means

that you are self guided.

And in that self guiding way

you will come to inspire yourself

and achieve by your own inspiration.

QuestionsQuestionsPersonal case studies, experiences, etc.

Thank you!Thank you!

Please call if you have any questions.Please call if you have any questions.

Jeff Bigler, CLU, ChFCJeff Bigler, CLU, ChFCAdvanced Financial ConsultantsAdvanced Financial Consultants

507-288-4248507-288-4248