Bob Ritter's Blog #17: CheckMate® Selling | Bob Ritter's Blog, ideas for financial service professionals

(Presentations were created using the InsMark Illustration System.)

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Blog #17 Checkmate® Selling with Various Financial Alternatives Indexed Universal Life using the InsMark Illustration System image

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If you anticipate a prospect’s objections as part of your presentation, you can create easy closes. We named this strategy CheckMate® Selling, and here is an example using the Various Financial Alternatives module in the InsMark Illustration System:

George Baker, age 45, is considering a proposal for $500,000 of Indexed Universal Life illustrated at 7.50%. Premiums are $20,000 a year for 20 years. Starting at age 65, after tax policy cash flow of $60,000 a year is illustrated continuing to age 95 (withdrawals to basis; loans thereafter).

Like so many prospects, “compared to what” may loom large in George’s mind. Let’s confront this directly and compare the life policy to some alternatives using a CheckMate® Selling strategy:

Taxable Account at 5.00%;
Tax Exempt Account at 4:00%;
Tax Deferred Account at 7.50%.

George is in a 40% tax bracket, and below is a summary of the comparative results:

Various Financial Alternatives
Account Values

Bob Ritter's Blog #17 various financial alternatives summary image

¹ Taxable account accruing values are shown after tax. Tax deferred account accruing values are also shown after tax since, unlike the life insurance, there is no way to access them without paying income tax.

Various Financial Alternatives
After Tax Retirement Cash Flow
($60,000 a year starting in year 21)

Bob Ritter's Blog #17 various financial alternatives after tax retirement cash flow image

Column 1: Taxable account assets are depleted in year 31.
Column 2: Tax exempt account assets are depleted in year 33.
Column 3: Tax deferred account assets are depleted in year 38.
Column 4: Indexed UL values are not depleted.

Click here to review the illustration in detail.

Suppose George tells another adviser (maybe his CPA) that he is in the process of purchasing $500,000 of life insurance with a premium of $20,000 a year for the next 20 years. Suppose the CPA asks, “Why would you spend $20,000 for something you could get for $600?”

If you haven’t armed George with the information as to why, he may well be stumped for an answer – and there goes your credibility. It’s far better to teach him “why” as part of your presentation. So Checkmate® Selling has a second component, a comparison to “buy term and invest the difference”. If you go to my Blog #4, you’ll see that when the cash flow exists to buy what you want, the purchase of term insurance can be a dreadful mistake.

If you don’t use the financial firepower of these two CheckMate® Selling concepts (there are others that I’ll cover in later Blogs), George may decide not to buy — and you may never know why. They are also formidable motivators when used in conjunction with illustrations of executive benefits.

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created Referral Resources to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice. You can utilize your choice of insurance company, there is no commission split, and you don’t have to change any current relationships. They are very familiar with running InsMark software.

Please mention my name when you talk to a Referral Resource as they have promised to take special care of my readers. My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration. Contact:

Ben Nevejans, President of LifePro Financial Services in San Diego, CA.

Note: If you are an Independent Marketing Organization that is interested in becoming an InsMark Referral Partner, please contact Julie Nayeri or David Grant at the number or email address indicated in the following paragraph.

For a license to use the InsMark Illustration System, go to InsMark or contact Julie Nayeri at InsMark at julien@insmark.com or (888) InsMark (467-6275). Institutional inquiries should be made to David A. Grant, Senior Vice President – Sales at (925) 543-0513 ordag@insmark.com.

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

Digital Workbook Files For This Blog

Blog17.zip

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Note: If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System. Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.