HBW – Making A Difference! – 2006

The following stories illustrate how our products and programs make a difference helping our agents help their clients.

I have a family as a client where he is 84 and she is 85. Seventeen years ago they purchased a really bad last to die policy with a $200,000 face and a $500,000 target. They have $317,000 tied up in the policy and are paying nearly $12,000 in premium annually.

The client gave me written permission to talk to the old insurance company. My intention was to try to use the cash value to pay the premium and relieve them of this cash flow drain. After six months of wrangling the old company declared that if any of the cash value was touched the death benefit would immediately go from $500,000 to $200,000. This was obviously unacceptable.

We are writing an American General last to die policy on these folks with a 1035 transfer of the cash from the old policy to the new policy. The face amount increases to $595,000 and the client is guaranteed to never pay another premium. They save almost $12,000 a year in premium and increase their coverage by almost 20%!!

My commission for helping these people is nearly $32,000.

The only reason I was able to see the opportunity here is that I was introduced to these concepts at the August 2006 FasTrack.

I hope this information is helpful to others trying to help their customers, expand their business, or trying to decide if they should attend the next FasTrack.

Ron Dortch
National Director of Agencies
Richmond, VA

HBW – Making A Difference! - 2004

I have a client and his wife that had $150,000 in coverage each, and $10,000 child rider. They were spending $159.00 monthly with my former company - they were issued standard non tobacco.

His health has deteriorated, so with American General we had to rate his policy up to Table 6. With us, he has a $250,000 policy (spending $52.28 monthly) and his wife a $250,000 policy with a $10,000 child rider (spending $18.38 monthly). Combined they are spending $70.66 per month for $200,000 more in coverage - FOR $88.34 PER MONTH LESS OR $1,060.08 PER YEAR LESS. I THINK THAT IS ABSOLUTELY AWESOME!!!

One of my very first cases with American General was a young family that was covered with my former company for $1,380,000. He had $750,000 on him, $620,000 on his wife, and $10,000 child rider; they were spending $163.00 monthly. For the same coverage with American General, they're spending $80.89 monthly; that's $82.00 less monthly or $985.32 less per year - ALSO VERY AWESOME!

Mac McDade
Dallas, TX

I just wanted to share a couple of recent client examples and my experience with HBW after my first month.

The first example is on my wife, Denise. We applied for a 20 year level term $500,000 with a $10,000 child rider at the Preferred Non Tobacco rate. The premium was going to be $37.62/mo. The premium for the same plan at our former company at the Preferred rate would have been $57.48/mo. We were excited about a $20/mo savings, but it gets better. American General actually issued her policy at the best possible rate Preferred Plus for $29.75/mo. and issued us a refund check for $7.87! That's a $332.76 annual savings!!

We didn't even ask for or apply for the best rate, they just determined that she qualified for the better rate and issued it that way! WOW, now that shows real integrity! My former company always issued the policy at whatever rate the agent applied for...even if the client was Preferred they still issued it at NTU if that is how the application was submitted!

Next, I just helped a client last night who had an old 20 year policy bought in 1995. They had $250,000 each and were paying $54.41/mo. Even though they are 9 years older, we were able to give them a brand new 20 year level term for $500,000 each plus a $10,000 child rider for $9 more per month! They were so excited! They now want me to take over their investments and provide a purchase money mortgage for them in a couple of months when they buy another home.

I'm back in the fun business again. It feels so good to truly help people and to know that you are giving them the BEST in the industry.

By the way, in closing...I just got my first check deposited into my checking account last night. $14,618.76!! Total earnings accumulated so far my first month with the company is right about $26,700!!!

THANK YOU so much for providing us with the opportunity to change companies and be a REAL financial consultant to our clients, to actually shop for some of the best possible products that fit their individual needs.

My only regret is that I took a long time to decide to leave my old company. But then again, God has his own time table and I'm just grateful now that we are here.

Looking forward to a long and prosperous future together!

Jeff Crawford
Chico, CA

I have two great stories to tell about the benefits of the training provided by HBW.

ONE

During the March 2004 FasTrack training in Las Vegas I attended a session on giving a business overview meeting. I was able to observe how that meeting was conducted and hear the presentation from people that have outstanding skill in delivering the HBW message. Using these techniques I did my first business overview meeting on May 11, 2004. We had 18 people in attendance and will have two recruits, so far. We have meetings scheduled in Richmond through August.

TWO

At the same training I was introduced to Bill Bachrach's Values Based Selling Process. After doing the training provided, I purchased Bill's Mastery System for learning his techniques. I have been using the materials to learn Values Based Selling.

About two weeks ago I received a referral to someone that was leaving their job of 15 years. I contacted them and found that the wife in this couple DID NOT want me to visit with them. She wanted to use his 401(k) to pay off debt. She was completely against the idea of sharing their business with a "stranger". The husband and the referral source prevailed on her to at least see me. In the initial interview I used the Values-Based SellingTM techniques that I had been learning from Bill's mastery system. It worked. The hostile spouse really got into the "What is Important to You" activity. They made full disclosure of their goals and financial condition. Today I made my presentation of their financial plan. I showed them how to fix their cash flow problem, deal with their debt issues, sold them $500,000 and $400,000 life insurance policies (His and Hers respectively), and rolled over $87,000 from his 401(k). My recommendations saved them $29,145 in potential taxes. I showed them how to take their cash flow from positive to negative, and now they are properly insured.

My work on this case generated about $4,136.25 in first year commissions.

As of this date I am, according to Lisa, the leader in GDC for 2004. So, why would I want to spend money and time to learn the Bachrach systems? I am doing it because great achievers train constantly. It doesn't matter if your area of expertise is sports, medicine, administration, or financial services. An appropriate mental attitude and constant training lead to consistent outstanding performance. I want to be a great achiever, therefore, I must emulate those that are. With your help, I will continue to make progress towards this goal.

Ron Dortch
Richmond, VA

We have a client who received over $400,000 as a death benefit from another insurance carrier for the death of her husband. She is in her mid-30's and has a young daughter living at home. When she received the proceeds, she received no guidance from the insurance company on what to do with the money. So she put it in her checking account and began spending. She bought a new truck, a new car, new recreational vehicles, clothes. a trip, and put the down payment on a new house. Before I was connected to her through a referral from one of our clients, she had spent nearly $150,000--in less than six months.

We determined from a financial analysis of her situation that she would need approximately $500 net income each month to supplement her income and the Social Security income that her daughter was receiving from her father's account. This meant pulling approximately $800 a month from what remained of her husband's estate--$260,000.

We decided to put the money into a variable annuity and set up a 72T distribution for her--which meant she would have to take substantially equal periodic payments from her account until she was 59 1/2 in order to avoid the 10% early distribution penalty. This way, her account would grow tax sheltered, it would be locked away from temptation--at least until she was 59 1/2--and there would be the guarantee of principal should something happen to her before her daughter was grown. Because of the LIFO rules for withdrawals, she must pay taxes on the money coming out, as it is determined to be earnings that are above her cost basis (what she originally put in). This also works in her favor, though, as the principal in her account--since it is from death proceeds--is non-taxable, and since she is paying the tax on much of what she is earning, when she does retire, most of her withdrawals then may be tax-free. We have given her a pretty diverse portfolio, a significant portion in secure/guaranteed investments, another large portion in large cap funds, some in growth and income, and some in aggressive growth. This can be adjusted over time as her needs change.

After a year of $800/month withdrawals, her $260,000 account has grown to nearly $306,000. That was $9600 of withdrawals and $46,000 of additional growth. A total of $56,000. And she only had to pay taxes on the $9600. If we had put her into regular mutual funds with the same investments, she would have had to pay over $18,000 in taxes (on top of that, $56,000 additional income would have raised her tax bracket and she would have had to pay more taxes on what she earned from her job, as well). And if we had used more tax conservative funds, her return would have been significantly less (remember, she is young, working, and debt free--except for the mortgage--so her risk tolerance should lean toward a growth posture).

There are no guarantees that the market will continue to grow, especially like it did this last year. And since she is in variable investments, she could even lose money on the variable portions of her investments, including the principal. Her management fees are higher in this product than in normal mutual funds, but the trade-off is the availability of guaranteed investment choices (with substantially lower return potential) and the death benefit provision if she were to die while the account is still accumulating.

Because one of our clients had the knowledge base to see the need this young woman had for our services, and cared enough to put us in touch with her, we have prevented the probability that her husband's estate would have been gone in three or four years. In addition, if her new account with us realizes an average growth of just 6% for the next 36 years (which gives us room to account for withdrawals), using the Rule of 72 (that her money will double every 12 years at 6%), she could have over $2,400,000 in her account when she officially retires. Again, we do what's right.

Ron Dodge
Dallas, OR

HBW – Making A Difference! - 2002-2003

I have a client, Lisa H., who is 29 years old. Her previous face amount with a leading term company was $100,000 for a 20-year term at $24.09 a month. I was able to replace that policy through Old Line Life with a $200,000 30-year term with a premium of $22.31 a month.
Lisa's mother, Mary S.(age 52), also had a policy with the same company with a face amount of $64,000. Her monthly premium was $63.56 a month. I was able to replace that policy through Old Line Life with a face amount of $150,000 20-year term with a monthly premium of $34.13.

Sally Hite
La Pine, OR

This is for those agents out there that think we just use the Select Class I to get the clients and then give them less favorable rating, (i.e. bait-and-switch).

I have a client that is six months pregnant and is being treated for a thyroid condition. She was just approved for Select I for $500,000 20-year level term.

Jeff Smith
Galloway Township, NJ

I just met with a securities client I have. When I was with another carrier I could not beat his insurance rates (he had a 5 year term). When we sat down I asked him the name of his company. He got kind of embarrassed and said he now had another leading term carrier. He had $250,000 each on him and his wife and an $8,000 child rider. Both are preferred paying $70.73 per month for a twenty year level term.

I gave them $300,000 each, and an $8,000 child rider for $44.99 a month for an Old Line Life 20 year term (for $250,000 and $8,000 it would of been $39.07). Now the kicker. They had just received the other carrier's policy last month, issue date 4/15/02. We saved them $25 a month, the savings are going into their Roth IRA and they still received more insurance.

Mark Hansen
Milwaukee, OR