please stand by our meeting will begin shortly american fidelity life presents a recession resistant...
TRANSCRIPT
PLEASE STAND BY
OUR MEETING WILL BEGIN SHORTLY
American Fidelity Life
Presents
A Recession Resistant Market
Telephone Audio Dial 773/945 011
Access Code: 563 556 146
American Fidelity
A Recession Resistant Market
Hosted By: Gerard Capra
National Sales Director
The Federal Market
Marketplace
• 2.7 Million Employees• More than 80% located outside of Washington, D.C.• Over 3 Million Additional Spouse/Dependents• Over 2.5 Million Retired• With New Administration, Job Numbers are on the
Rise
Expected growth 5 -10%
The Federal Market
Marketplace
• GAO estimates 50% of Federal Employees will retire within 5 -10 year
• Up to 125,000 per year
• Need for 125,000 to 200,000 new employee per year over next 10 years
• Need to replace expensive FEGLI plans
The Federal Market
Marketplace
• Financially Pre-qualified
• Average Medium Income $61,500
• Stable Employment
• Excellent Medical Coverage - Above average health
• High Persistency
• Few Competitors
The Federal Market
Sales OpportunitiesAlternative to:
• FEGLI Non-Basic Benefits Alternative/Supplement
• Pension – Survivor Annuity Benefit Alternative/Supplement - Current Options available to Employees through Government
Inflexible and Expensive
The Focus of Today’s Webinar will be FEGLI Non-Basic
Replacement/Supplement Opportunity
Background Info…
Federal Employee Group Life Insurance (FEGLI)
• Established in 1954• Largest Group Life Insurance Program• Over 4 Million Participants• $571 Billion Life in Force• $3.5 Billion in Annual Premiums
Background info…
FEGLI: How it works…
• Basic Coverage 1-2x Annual Salary + $2,000
• Option A $10,000 if age 45 or over
• Option B 1 – 5X Annual Salary
• Option C Spouse Max $25,000
Dependent Child $12,500
Background Info…
FEGLI
Inflexible
• Employee, Spouse & Dependent Limits
• Coverage Period Limitations
Background Info…
FEGLIExpensive
• Group Coverage Rates
• Price Increases every 5 years
• Coverage Could Decline at Retirement
Background Info…FEGLI
Sample Rate Option B Female Age 55 $200,000 Age Premium Age Premium 55-59 $56.00 70-74 $246.00 60-64 120.00 75-79 366.00 65-69 144.00 80 + 480.00
Premiums per pay period!!
Background Info…
FEGLI
For those employees who elect not to pay the higher premiums, they may
have Death Benefits decrease at retirement by 2% per month for 50
months
The Opportunity
How to Market in the Federal Employee
Market
Meeting Federal Employees…
• Seminars
• Evening Seminars
• Lunch and Learn Events
• Existing Clients
• Asking for Referrals
• Blitzing Campaigns
The Sales process…
• Usually on Job Site or In Home
• FEGLI Explanation: Most Do Not Understand the Pitfalls
• Offer Alternative and a Way to Save Money During Their Career
• Closing the Sale
• Setting Up Payment Via Allotment
How American Fidelity is giving you the tools to have success in this Market
• A+ Rating…Now More Than Ever!!
• Federal Allotment Capability
• Flexible, Easy to Understand Products
• Competitive Pricing
• Training to Begin in this Market and Succeed
Federal Allotment Capability…
• Alliance with Professional Benefits Administrators (PBA)
• PBA: 20 + Years Experience in the Federal Market
• Turn Key Administration to Help You be Successful
A to Z Training that…
• Open Doors at Government Facilities• Leverage Union and Association
Endorsements• Generate Leads• Get Calls Within 24 Hours• The Sales Process• Obtaining Referrals• Add Credibility with Each Site Visit• Proper Market Conduct• Becoming the Onsite Life Insurance
Specialist• FEGLI Calculator
American Fidelity
Product Portfolio
• Alternative 95
• AF Easy Term
• Sentinel
How FEGLI Sales Work…
A Sample Case
Sample CaseMarge (age 55) is a Postal Federal Employee (California)Current Income $40,000 ($3,333 per month)Standard RiskRetirement Goal is age 65 Married to George age 58 Current FEGLI plan: $52,000 Basic & Option A $200,000 Option BCurrent premium: $58.70 per pay period
At age 60, this will increase to $128.70 per pay period.
She now has two options:
1. Continue paying the premiums and have her coverage begin decreasing 2% per month for 50 months, at which time
coverage will have decreased to $12,500 and premiums would then remain level at $13.00 per month.
Sample Case
2. Maintain full (Option B) coverage at the following cost:
• Age 55-59 $ 56.00 per pay period• Age 60-64 $120.00• Age 65-69 $144.00• Age 70-74 $240.00• Age 75-79 $360.00• Age 80+ $480.00
AF Easy Term 30 year plan $80.58 per pay periodAlternative 95 $79.00 per pay period
Sample CaseCOST ANALYSIS
FEGLI EASY TERM ALTERNATIVE 95
End
Year
5 7,280 10,473 10,270
10 22,880 20,946 20,540
15 41,600 31,418 30,810
20 72,800 41,891 41,080
25 119,600 52,364 57,350
30 182,000 62,837 61,620
35 224,400 n/a 71,890
40 286,800 n/a 82,160
Sample Case
• Keep FEGLI Basic $42,000 decrease to $10,500 over 38 months
• Purchase $100,000 Easy Term (California) $34.02 • Purchase $3,333 of monthly Income benefits Sentinel 67 $26.92 ---------- Total Premium per pay period $60.94
Current FEGLI $58.70
Coverage premiums increases at retirement or Coverage decreases over 50 months to $12,500
S-2033For Agent Use Only. Not for Consumer Distribution.
Retirement Option Marge retires at age 65 (spouse 68) 30 yrs service ($46,000 salary) Basic Formulae $2,156 per month Survivor annuity benefit $1,963 per month Survivor benefit $1,185 per month Cost to Marge $193 per month _____________________________________ Sentinel Permanent: Benefit: $1,185
Standard Preferred S-Preferred Base Cost: 101.72 77.55 66.41 COLA: 116.62 88.60 75.76 COLA & PPR 276.35 202.16 170.22
Premium Refund ( over 120 months)
Death Age 78 $33,162 $24,259 $20,426
Getting Started
What’s Your Next Move?
Getting Started Field Relations Managers
Kellee Sloan Patricia Bowersox
[email protected] [email protected]
Contact Your Field Relations Manager:
866-416-8880, ext.2845
Future Webinars will Include;– Survivor Benefit Alternative/Supplement
Questions?
THANK YOU.