Heartland HighlightsA u g u s t 2 0 1 3 V o l u m e m m X I I I I s s u e V I I I

Brush up on These Ideas

622013 RepoRt First Heartland University

10email ScamSWhat to Watch Out For

the Value pRopoSitionPerfect Your Elevator Pitch

REPORT:Fhu 2013

PresentationsRaising the Bar - American Capital Realtyhow the allianz life pro+ Stacks up - AllianzDon’t Stand Still: how practice management can help you Grow through Difficult times - Pershinghelping Guide Your clients With confidence - Genworth Wealth ManagementWhat matters most to today’s plan Sponsor - Tom Parker

First Heartland University 2013 was a great success! We had a wonderful time on the golf course and at the gun range and hope that you also walked away with a few ideas that refresh you and increase your sales in the next few months. You also helped us support FOCUS Marines Foundation, and we hope that you got to meet some of the Marines that attended the event. Your contributions mean a lot to this local charity. Thanks for coming to FHU and we can’t wait to see you again next year!

Trap Shooting at Gateway Gun Club

FOCUS Marines Foundation

On the Golf Course at Bogey Hills

Carrier Presentations at FHU

First Place: Scott Lowe, Mark Wiseman, Jim Gibbs & Gary Kinkade

Second Place: Kerry Scanlon, Dennis Hennessy, John Barrios & Dave Sentnor (Not pictured)

FiRSt place WinneRS

tRap ShootinG touRnament

SeconD place WinneRS

1St place: TODD TURCOTTE2nD place: SCOTT WEiR

3RD place: CRAiG HEiEN & TERRY MASCHiNG4th place: BRANDON HALL

GolF touRnament

WinneR’S ciRcle

(CliCk to download)

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Transamerica is committed to you and your clients. As a leader in Long Term Care insurance, Transamerica actively manages our long term care business to ensure that our programs and products align with our core business philosophy and our key objective to "Protect Families and Their Dreams". Family Matters with Transamerica. We've worked with you to create the next-generation of Long Term Care insurance that reflects the current realities of the marketplace and provides you with the flexibility and benefits you told us you need to succeed. We continue to believe that there's tremendous opportunity for long term care solutions that are easy to sell and flexible.

We are pleased to announce that beginning September 10, 2013 you will be able to sell TransCare® III, a new Long Term Care insurance product from Transamerica Life Insurance Company for the individual market. TransCare® III offers innovative long term care solutions for a variety of client needs and budgets, including the need for inflation protection.

What's neW With transCare® iii?Maximum Daily Benefit• increases from $400 to $500Policy Elimination Period • expanded to 365 days*Couples Discount • increased to up to 30% and is available to couples even when they select different benefits**Gender-Based Pricing• that reflects the higher claim rates for females across the industry and allows for positive changes in what we can provide to couples applying together, like the ability to maintain the couples discount when writing policies with differing benefits**Elimination Period Credit Rider• now applies Home Care and Adult Day Care Benefit days toward the Elimination PeriodWaiver of Premium Rider for Home Care and Adult Day Care• now continues to waive premiums after policy holder transfers to a Long Term Care facility and is satisfying the elimination period3-Year Rate Guarantee• Tailored Benefit Increase Option Rider• provides another competitively priced option for inflation protection

Compounds the Maximum Daily Benefit and Policy Maximum by 5 percent on each anniversary prior to •age 61, by 3 percent from age 61 to 75, and goes to zero after age 75

Enhancements to the Deferred Benefit Increase Option•

Step-Rated and Tailored Benefit Increase Options are now included as Benefit Increase Option choices •on the first, third, and fifth anniversary of the policy Benefit Increase Options are priced at age of issue•

What's the same?TransCare® III is built on a product you already know - TransCare® II. We took the best of TransCare® II and enhanced it with benefits you told us you need to succeed. TransCare® II will continue to be available for Multi-life worksite sales, some association sales, and individual sales in states where TransCare® III is not yet approved (see Comparison Chart). Benefits that remain with TransCare® III include:

0-Day Elimination Period for Remain at Home and Cash Benefits•Built-in Cash Benefit•Return of Premium to Age 67•Double Accident Benefit to Age 67•Step-Rated and the built-in Deferred Benefit Increase Options•

What's next?TransCare® III will be available for individual sales on September 10, 2013, in all Interstate Compact states, which include:

AL, AK, CO, GA, ID, IL, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NM, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VT, VA, WA, WV, WI, WY

We will launch additional states as we receive approval from each state's Department of Insurance.

For the above states, individual applications for TransCare® II will continue to be accepted through September 9, 2013. On September 10, 2013 the only product available in the above states for individual and select association sales will be TransCare® III. TransCare® II will continue to be available for Multi-life worksite cases in all states. Click here to see a TransCare® II/TransCare® III comparison chart.

Look for details in the coming weeks about several opportunities to learn more about TransCare® III, including a new TransCare® III website and special webinars. New Family Matters with TransamericaSM marketing materials will be available for download and print on September 3, 2013, including Product Brochures, Applications, Disclosures and consumer kits.

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There are three steps in developing a marketing process: the positioning statement, the value proposition and the elevator speech; each serving as the basis for the next.

The positioning statement is a short (one paragraph) private statement describing how you want your target market to perceive you. It should serve as a guide to your practice, and it forms the basis of value proposition and elevator speech you make to prospects.

It answers the following questions: Who are you? »What do you do/what business are you in? »For whom? »What value do you offer? »With whom do you compete? »What differentiates you from your competition? »

ArticulAting VAlueA powerful and meaningful value proposition is the cornerstone of a financial advisor’s marketing efforts. The value proposition is the core of what your practice is, and involves the promises you make to clients to deliver something of value in return for payment. It is a compelling reason to do business with you.

The elevator speech is how you describe your value proposition to prospects and clients. It should be delivered in a short amount of time (15-30 seconds), and must be committed to memory so it sounds fluid and natural. It communicates your unique and compelling value, articulating who you are, what you do and how it benefits clients. It should grab the listener’s attention with passion, precision and persuasiveness. It is a “sound bite” that succinctly introduces you and helps you connect to new contacts. You must be able to meet people and convey what you do in a succinct, but influential, manner. This will help you develop new leads while you go about your daily tasks. For example:

“I have a great job. I help people retire with peace »of mind.”“I help busy and successful people organize their »finances.”“I teach people how to keep their financial lives »on track.”

An elevator speech should draw the attention of your listener to want to learn more. It can be a personal introduction or an overview explanation, as long as it can be presented in a matter of seconds and draws the attention of the audience.

Your practiced elevator speech when introducing yourself should achieve the following:

State your name. »State your firm. »Describe what you do. »Present your value proposition. »Differentiate yourself from your peer competition. »

Your speech is individual to you and should be practiced until you are able to deliver it comfortably and seamlessly. It is a social interaction and should feel natural and unforced.

Be careful that your value proposition or elevator speech is not a marketing pitch. It should not focus on your products and services, but on the client and what benefits he/she will receive from doing business with you. You are making a promise, and you need to follow through to ensure the client has a remarkable experience that will lead to client retention, repeat sales and referrals. Without following through, your value promise will be a hollow pitch. An experience that has fallen short will leave your client frustrated and upset -- and nothing could be worse for your practice and credibility.

Developing the value proposition involves the following steps:

Identify specific needs and wants your products »can meet.Define groups of customers who have those needs »and wants (target marketing). Identify and define your ideal client type -- those »clients that represent the individuals with whom your business is built to serve,Customize a solution that will meet those needs »and wants effectively (a value proposition). What tangible results will you deliver ?Create and articulate messages that raise »awareness of these needs and wants (an elevator speech).Position in the prospects’ minds your ability to »meet those needs and wants. Consider the following questions to focus your »thinking on these steps:

Why should a prospective client want to »work with you and your firm?What unique attributes distinguish you and »your firm from others?

Identify and contact individual prospects to meet »with (by setting appointments).

if you articulate the purpose of your practice, potential clients are more likely to do business with you.

theVALUEproposition

elevatorpitch

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SMART GRANDPARENT:Providing a solid financial future for your familyUsing Asset Builder Index UL

Through years of hard work and saving, your older clients may be in a position now to financially help their grown children and grandchildren. Many young American families face competing financial priorities, trying to meet today’s financial obligations and still plan for tomorrow. One way your older clients can help is by providing life insurance coverage on their grown children. There is a life insurance coverage gap. 53 million Americans with household incomes between $50,000 and $250,000 do not have life insurance coverage1. 40% of Main Street Americans who have coverage don’t think they have enough2.

Your clients’ grown children may also need to help their own children pay for college and other important life events. Yet only 37% of American families feel they have a sufficient college savings plan in place.3 Meanwhile, your clients’ grown children must save for their own retirement. Most families have a challenge here. Only 32% of Americans in their pre-retirement years think they will have enough assets for retirement.4 Finally, young families need financial flexibility for whatever challenges life brings. That’s where a “Smart Grandparent” can help.

Let’s look at someone who might benefit froma Smart Grandparent approach.

Meet June and her familyJune’s daughter Mia is age 30, in good health, married•Mia and her husband have a 2-year-old daughter, Sam•June wants to make gifts and help protect Mia’s and Sam’s •financial futureJune has $12,000 per year earmarked to help them•Mia is employed and has an income of $75,000 and only one •times her salary in group life insurance

WHAT ARE JUNE’S FAMILY’S CHALLENGES?

Mia needs additional life insurance •coverage on herself to help fund their financial goals in the event of her death

Mia needs to save for Sam’s college •and other needs

Mia and her husband need to save •for their own retirement

They want to take advantage of •upside potential linked to market performance, but are concerned about the downside risk of market performance

They want flexibility to access •money prior to Mia’s age 59½ without federal tax penalties5

An Index Universal Life (Index UL) Insurance policy on Mia’s life could help the family solve many needs. June could use $12,000 per year to pay planned premiums for a Genworth Asset Builder Index UL policy owned by Mia,6 which would provide an income tax-free death benefit,7 allow the policy value to grow income tax-deferred, and have index-linked interest credited to the policy. Finally, Mia would have the ability, in most circumstances, to access her policy value through income tax-free8 withdrawals and/or policy loans for college funding, retirement — or at other important times. That’s why we call this approach “Smart Grandparent.”

How Asset Builder Index UL works for Mia

Mia’s scenario as illustrated:This hypothetical example is based on a 7.37% illustrated rate throughout the lifeof the policy, a cap rate of 12%, a participation rate of 100%, and current chargesas of 4/25/13, for a 30-year-old female with Preferred No Nicotine Use rates.Distributions are illustrated as withdrawals followed by collateral loans at 6% interest.

Mia’s initial death benefit is $685,436.11 Planned premiums of $12,000 per yearare paid for 15 years.

Mia’s death benefit increases with her policy value to $954,727 at age 45.•Over the next 6 years Mia could then take distributions for Sam:$15,000 (x 4 years) for •college, $10,000 for Sam’s wedding, and $15,000 for a down payment on Sam’s first home. The distributions for Sam total $85,000.Then, Mia might not take any distributions until her own retirement at age 65,when she •could take annual distributions of $75,249 for 20 years.

The chart below shows how for $192,000 in premiums, Mia could receive$848,845 in supplemental income when she needs it, and at age 80, still havea $469,083 death benefit for Sam.

It is possible that coverage will expire when either no premiums are paid following the initial premium or subsequent premiums are insufficient to continue coverage. While the insurer may change future cost of insurance charges based on changes to investment earnings, including the cost of investment related to risk of providing index interest credits, mortality expenses, persistency, and taxes, this does not apply to the minimum premium guarantee.

What’s your client’s story?Can you see your client’s family in any part of this story? If so, ask us how Asset Builder Index UL could help your client’s family today and tomorrow. Request an illustration to learn how a policy could be customized to help protect your client’s loved ones and potentially generate tax-free supplemental income.

Click here for the brochure

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A phishing attack is an email that looks like it came from a legitimate entity such as a banking or other financial institution. The email will prompt you to click on a link and it will take you to a site and prompt you for your login and/or credit card information. The site will look legitimate, but it isn’t affiliated with the company. You are on a fake page belonging to the party running the scam. If you enter your login information and/or credit card information, it is captured and your identity is stolen by using your credit card or taking funds from your bank account.

The Nigerian Scam, also known as 419 ScamThe 419 refers to an article in the Nigerian penal code. Most of us have probably seen these at one point or another. You get an email stating someone overseas, associated with royalty for example, has a large sum of money they need to deposit into your bank account and they offer a hefty commission for you to do so. They either want to

steal money from you or use your account to launder money. See the example to the left. Credit Card/Bank ScamIn this scam, you receive an email offering you a credit card with a huge limit. The catch is that you have to pay an up front “processing fee”. The scam is that you pay the money and never hear from them again. Legitimate credit card companies don’t operate this way. You may have to pay a fee, but it is tacked onto the card. Another Credit Card scam is where they will send you an email stating that you need to update your credit card details and provide a link to do so. The link takes you to a fake site where they capture your information. Legitimate financial institutions do not have people click on login

links in emails. Never click on login links in emails supposedly from financial institutions. If you want to login to your bank account, type the bank’s address into the address bar of your browser. Lottery or Contest ScamIn this scam, you receive an email stating you have won a large amount of money in a lottery or contest and they will need you to pay a “processing fee” in order for you to claim your winnings. Take a guess where your money goes and what you wind up winning.

Disaster Relief ScamThis scam preys on people’s generosity by requesting a donation be made to people victimized by a disaster. Either the money you donate goes to con artists or your credit card/bank information is stolen. Do not donate money to a charity from an email solicitation. The best way is to contact the charity by phone or through their web site. Fraud Protection AlertYou receive an email stating that there is suspicious activity on your account and to login via the link in the email. Ways to Detect Email Scams

A lot of times these emails originate overseas from people »who do not use English for their primary language. There will be a lot of spelling and grammar mistakes.In the email you are asked to click a link and login, provide »account numbers and passwords or provide PIN numbers.Sometimes the link you are asked to click on says http:// »and not https:// any electronic communication with a financial institution will be secured by https. Access the email via a web browser and hover your mouse cursor over the link but do not click it. In the lower »left hand corner of the browser the real address of the link will be displayed which will have nothing to do with a financial institution or be an IP address. Example:

Sometimes there will be a slight modification of the address for example: » - real address: https://login.anybank.com - faked address: https://login.anbank.com

Any email attachments should be scanned with up to date anti-virus software. » Avoid Being a Victim of an Email and Phishing Scams

Use an anti-virus application and keep it updated. There are plenty of free offerings out there. »Do not reply to emails requesting personal information from you. »Use strong passwords and include upper case letter and special characters: »

abc123 – not a strong password »1@B4nr7h* - is a strong password If you have trouble coming up with one you can remember, use your »birthplace home town and change letters and words, for example: you were born in Chicago so use something like cH1c@g0 and the year you were born to make cH1c@g01950

Change your passwords often »Do not leave your computer/laptop logged on to your email account all of the time. »Do not log on to your email account from someone else’s or a public computer. »

Some of these scams may seem ridiculous but there are people that fall for these scams everyday. These scammers will send out these email scams to thousands and thousands of email addresses and even if just a few people fall for it, it turns out to be profitable for the scammer.

Email Scams and Phishing Scams

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Windham optics Ready Weaponry centerfire tactical Rifle

Value: $939.99

Windham a-Z Flip Rear Sight tactical Rifle

Value: $999.99

Bushmaster oec optics Ready Firearms aR-15 Rifle

Value: $949.99

Spartan iV 9mm 1911Value: $699.99

Remington® 700 SpS Standard Rifle .300 Rem. ultra mag

Value: $599.99

Remington® 11-87 Sportsman® Semiautomatic Shotgun 12 Ga.

Value: $699.99

Remington® 870 express pump-action Shotgun 12 Ga.

Value: $329.99

Springfield armory® Black XD-S™centerfire pistol .45 acp

Value: $599.99

Springfield armory® Stainless Steel/Black XD-S™centerfire pistol .45 acp

Value: $649.99

&First Heartland Foundation FOCUS Marines Foundation

Gun RaffleT O B E N E F i T T H O S E W H O S E R V E O U R C O U N T R Y

NiNE winners announced December 2nd, 2013 | $100 for entry in all nine drawingsViSiT httpS://WWW.FiRStheaRtlanD.com/touRnamentFoRheRoeS/RaFFle TO ENTER

The prices shown are estimates of suggested retail value. Due to the nature of the firearm marketplace, there is a possibility that a firearm has limited availability which means delays of delivery of specific firearm is possible.

Indexed UL & Return of Premium Term is a Good combination

Call us for

more details:

636.695.2805

The 2008 market down turn could have changed many of your client’s investment objectives and risk tolerance. In the event that you have a younger, conservative client, there are a few options with ROP term and indexed UL that can make sense and offer guarantees.

Here is a sample case:Male, age 35, preferred non tobacco. 1.5 million dollar life insurance need that drops to 500K at retirement (projected to be somewhere between ages 65 to 70). The client also has a secondary objective to have the opportunity to take retirement income from the life policy.

Most case design solutions would be to sell a 500K permanent in combination with a 1 million 30 year term policy. That is probably the most efficient way to fund a UL policy because the 30 year term would be the cheapest. That being said, it might make sense to also look at return of premium term insurance to guarantee that the client has some cash for retirement income in the event that they would like that in 30 years. It also has the option for conversion to another policy, which in turn generates a second commission. Another option for this client would be to take that return of premium and pay it into the permanent policy to fund it more which would generate a greater opportunity for retirement income.

The blue line in the graph below shows funding for 30 years using a premium of 1,000 more than the red line as that is the difference in premium between the traditional term and the return of premium term. You notice that the blue line remains well above the red for 30 years as it is being funded at a higher amount. In the 30th year, the red line nearly catches the blue one because the return of premium from the term policy is being put back into this IUL. At this time, there is less than a 2% difference in cash value even though it had been funded at 1,000 less over 30 years! This case design offers clients like this many options using that 1 million return of premium term policy. Call a member of the First Heartland team for quotes or to talk about one of your cases today!

Sales Idea

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Leaders Conference 2014M o n t a g e B e v e r l y H i l l s | B e v e r l y H i l l s , C A

July Qualification Standings

Production Report

Q u a l i f i e d O n T r a c kJohn BarriosScott BybeeTroy ChristensenRobert CremeriusJamie CrossCarter DavenportDavid EricksonBrad HarrisDennis HennessyMichael KockDavid KoverTerry MaschingDennis Meyer

A.W. AbelPierre BadertscherNorman BrownsherDean CallisonKenneth CoeBill CrouchRichard FalckBrian FrankeJeff HalesRon HansonJohn HillinbrandRobert LegerMike Palmquist

Brad Wa l to nFir st Heartl and Capital, Inc.

Co n f i d ent i a lFir st Heartl and Corporation

Troy Ch r i s ten s enFir st Heartl and Consultants, Inc.

T o p P r o d u c e r s YTD by company

J u l y T o p T e n$259,898$129,658

$99,255$98,292$92,163$90,234$84,624$78,304$71,524$70,921

Brad WaltonTroy ChristensenDavid EricksonJamie CrossKenneth CoeBrad HarrisDave SentnorDavid KoverParker/ApplebaumDennis Sikorski

The best compliment you can give Fir st Heartland is the recommendation of a qualit y agent. Take a minute to email a referral to Matthew Evans.

David SchoenfeldtLaura ScobeeEric SegerBrian SmithBruce SnyderTruman TimmisJohn TurcotteScott WeirTim Wuest

John OwenParker/ApplebaumDanny ParkerDave SentnorDennis SikorskiDave SorensonMark SudderbergTroy ThompsonTom UlmerDoug VerleyBrad WaltonTim Wellman