Transcript Slide 1
Primerica Delivers in Time of Need $965,094,171 Total Claims Paid in 2010 That’s $2.6 Million Every Day $110,000 Every Hour 95% of our Claims Paid Out Within 14 Days $659 Billion In Force at Primerica Life BOB & RED BUISSON MIKE & STEPHANIE TUTTLE MASS MUTUAL FINANCIAL GROUP BOB & BARBARA SAFFORD FARMERS MIKE & SHIRLEY UTZ DOUG & BERTI HARTMAN TERRY TURLEY & LYNN WEBB BILL & SARAH STEWART MICHAEL & MARNA SHARPE HARTFORD LIFE GROUP GUARDIAN LIFE RONNIE BARNES HECTOR & JANN LA MARQUE GREG & SHARON FITZPATRICK PATRICIA SCHECHTER RUSTY & ANN CROSSLAND LARRY WEIDEL 272,536,378,409 166,006,767,355 157,525,928,000 156,687,236,372 153,116,899,000 146,980,393,875 127,320,003,039 115,514,262,703 112,075,439,995 104,999,956,983 86,622,451,000 85,593,432,000 78,349,582,947 68,068,388,867 65,665,216,200 61,090,160,937 60,487,116,951 52,073,822,549 KIP & CAROLE RIDLEY KEITH & DANIELLE OTTO MARY WALKER PRINCIPAL LIFE GROUP RANDY & MARCY GODFREY GINNY CARTER RICK & MICHELLE SUSIE JIM & TAMMY MEYER DICK & BETH WALKER PENN MUTUAL GROUP JIM & TRISH BEAULNE CHRIS & ELIZABETH KOOB MARK & SUE YOUNGER BILL & CAROL ORENDER FRANCES AVRETT ANDY YOUNG FIDELITY LIFE 50,027,631,469 45,164,266,435 41,677,434,552 39,603,536,000 35,893,304,877 34,649,205,087 29,759,817,453 28,686,782,283 27,100,748,474 26,194,307,000 24,654,092,619 24,009,192,437 23,833,004,230 23,733,972,044 21,764,692,519 21,605,200,357 21,605,200,357 Life Insurance Facts as of 2010 • 4,300,000 lives are insured by Primerica • 30 Death Claims paid EVERYDAY, BUT….. • 7,295 people die EVERYDAY in North America – Equals more than 2 WORLD TRADE CENTER TRAGEDIES EVERYDAY! Households with life insurance hits lowest level in 50 years By Sandra Block, USA TODAY By LM Otero, AP The economic downturn has contributed to the decrease in households with Iiff! insurance as many consumers have had troubleskeepinglip payingtheir premiums. The percentage of U.S. households with life insurance coverage is at its lowest in 50 years, leaving millions of families without a safety net, industry experts say. Only 44% of households have an individual life insurance policy, and 30% have no individual or employer-provided life insurance, according to a recent survey by LlMRA, an industry-sponsored group. Some 11 million households with children younger than 18 - viewed as families with the greatest need for coverage - have no life insurance. The drop in insurance coverage comes at a time when premiums for term life insurance are s ignificantly lower than they were a decade ago. For example, a 35-year-old healthy man can purchase a $500,000, 20-year term policy for about $25 a month, according to lNG, a financial institution that sells life insurance. Behind the decline: DO YOU NEED IT? How much life insurance do you really need? CALCULATOR: Run the numbers on life insurance -The economic downturn. More than 40% of families said they haven't purchased life insurance because they have other financial priorities. At the same time, 40% of families with children under age 18 said they would have immediate trouble paying expenses if the primary breadwinner died. -Procrastination. Unlike auto and mortgage insurance - which are typically mandatory for home and car owners - life insurance is a voluntary purchase, says Butch Britton, chief executive of lNG's US life insurance division. That causes people to put off buying it, he says. Procrastination can backfire, because young, healthy people can usually get the least expensive premiums, says Amy Danise, managing editor for Insure.com. "A lot of people really overlook the whole need (for insurance) until they have a health condition, and then life insurance prices are out of reach for them," she says. -Fewer insurance agents. Nearly 80% of families don't have a personal life insurance agent or broker, according to L1MRA. The decline in premiums for term life insurance has made it more difficult for agents who sell the policies to make enough money to cover their expense, Britton says. Policies in Force …Continue to spiral downward …As the population increases Year Individual Policies U.S. Population 1965 196,000,000 194,302,963 1975 204,000,000 215,973,199 1985 186,000,000 237,923,795 1995 169,000,000 262,803,276 2003 176,000,000 290,796,023 2004 167,741,000 293,638,158 2005 166,119,000 296,507,061 2006 161,000,000 298,362,973 2007 158,000,000 301,290,332 2008 156,000,000 304,059,724 2009 153,410,000 307,006,550 Sources: ACLI Annual Fact Book Life Insurance Facts as of 2010 • 77,000,000 people in North America with NO LIFE INSURANCE – What happens to their families when their untimely death occurs? – They need our HELP NOW!!! • 68,000,000 people in North America are GROSSLY UNDERINSURED – They need our HELP NOW!!! New Purchases Decreasing Number of individual Life Policies Purchased by year Year Individual Life Population Ratio 1960 1970 1980 1990 2000 2010 21,021,000 18,550,000 17,628,000 14,199,000 13,345,000 10,000,301 180,671,000 205,052,000 227,726,000 250,132,000 282,403,000 308,745,538 1: 8.5 1: 30 Sources: ACLI Fact Book 2009 – ACLI Tabulations of NAIC Data US Census Bureau, Statistical Abstract of the U.S.: 2007, Population 1960to 2008, 2009 – Quick Facts Individual life insurance sales increased 4% in 2010, according to LIMRA’s U.S. Individual Life Insurance Sales Survey, which was released on Monday. • • • • • • • “Throughout the year, Whole Life and Universal Life were strong performers, spurring an increase of overall individual life insurance sales,” said Ashley Durham, senior analyst, LIMRA Product Research, in a statement. “While we have not gotten back to the peak level reached in 2007, we are encouraged by the positive results this year.” Whole Life’s annualized premium jumped 14% in the fourth quarter and 15% in 2010. Policy sales soared 6% in the quarter and 2% for the year. This is the sixth consecutive quarter of growth for WL sales. The Universal Life annualized premium rose 13% in the fourth quarter of 2010. Sales of UL policies soared 20% in the fourth quarter and 21% in 2010 primarily because of the introduction of Term UL products. Products featuring long-term secondary guarantees fell 5% compared with 2009, while annualized premium sales for products that do not feature these guarantees shot up 27%. Meanwhile, indexed UL sales jumped 47% in 2010, almost 20% of 2010 UL annualized premium sales. “Many factors contributed to indexed UL growth, including increased marketing, training and product introductions,” said Durham. “Indexed UL sales are also benefiting from the current economic environment. Like other indexed products, indexed UL products’ cash value can grow with market but are also protected against severe market declines.” At the same time, term life insurance premiums tumbled 16% for the quarter and 12% for the year, as did term policy sales, the largest annual decline for term life insurance premiums on record. Variable sales dropped 25% in the fourth quarter and 7% in 2010. Industries Latest Fads… “UL Term” • All the Evils of UL… No such thing as UL Term… – Expenses – Loans – Hard to comprehend policy guarantees • Violates XXX Reserving Requirements – Government moving to ban practice • Predatory Renewal Options and Rates Industries Latest Fads… Whole Life Comeback 2010 Replacement Scoreboard Company Primerica Wins Primerica Losses State Farm Life Ins. 3,367 685 New York Life Ins. Co 1,994 307 Metropolitan Life 1,361 858 American Income Life 1330 90 Farmers New World Life 1298 165 Northwestern Mutual 1,247 616 Western Reserve Life 875 275 Allstate Life Ins. Co 739 0 Liberty National 477 30 Lincoln Life 494 86 Gerber Life Ins. Co. 452 0 TOTAL WIN/LOSS RECORD: 63% WINNING PERCENTAGE 44,932 Replaced Policies of 362 Companies 16,655 Primerica Life Rules! It’s Time to Finish the Drill! Company Founded 1977 7 RVPs 85 Reps Company Founded 1977 3000 Insurance Companies Primerica Re-Founding? 4000+ RVPs 100,000+ Reps Primerica Re-Founding? Only 991 Insurance Companies We Only Have 2% of the Market Custom Advantage: Equipped, Not Stripped (Insert Poster) Income Protection Quadrant No Control — Uneducated Choices Improved Control — Term Insurance No Insurance Stripped Term Insurance • 77 million North Americans • Financial devastation • No family discounts • Limited contract features • Limited renewal options • Multiple policy fees Equipped • Expensive renewal Term Insurance rates • Family discounts • Flexible renewal options • Affordable renewal rates • Valuable contract features • One policy fee Under Insured • Only 20% of North Americans have adequate life insurance • Average life insurance policy face only $106,553 Limited Control — Industry Schemes Total Control — Educated Choices Cash Value Insurance Buy Term & Invest the Difference • Bundled concept • Cash it in and lose insurance • At death no cash value • Borrow your money • No control over Group Insurance investments • Company controls • Historically • Not enough coverage low rate of • Not portable return • Insurability risk • No coverage for family • Unbundled • Own the insurance • Own the investment • Right coverage at the right time Self Insured The Theory of Decreasing Responsibility January Impact Announcements • Every Day Is Payday at Primerica Life – Began January 10, 2011 – Life Insurance Advance cycles will run every business day • US/NBL/Canada – Reps will receive an e-mail whenever they are paid an Advance commission • An e-mail will be sent to the Rep’s “primerica.com” address • E-mails will indicate the amount of the payment and if it was paid by check, direct deposit or deposited into the Rep’s MAP account • New Business Production Credit Improvement – New Business now will able to process current month apps before closing out last month-end – Eliminates need to hold next month’s New Business Apps while processing prior month-end Apps – Daily Blast, Production Detail, Personal Production, Rep Profile and Custom Ranking all support looking at next month’s new business production credit – Allows RVPs to ensure production credit is processed in the right month before Bonuses are calculated and paid Convention Impact Announcements • New “Term Now” – Innovative “Rapid Issue” Product Valuable New Product Features •Automatic IBR •Improved Waiver of Premium •Freedom Accumulation Benefit (APDA) • Improved Custom Advantage • Exploring Options to Capture New Market Technology Advancements 1. Web Based Turbo Apps, Quick Quote & FNA – – – Compatible W/All Platforms & Devices Real Time Info Sharing Lower Monthly Expenses 2. MyPrimerica.com – – E-Delivery Of Policies Real Client Service Destination 3. Primerica RING – – – Leverage Your Leadership More Efficient Supervision Huge Potential For Sales & Service NOW We are Positioned to: Build Dominate Control Financial Services Our Competitors are Dinosaurs! We are the Meteor.