Life Insurance Agent’s Career

The Career as a
Life Insurance Agent

In all my relations with my clients,
I pledge to observe the following
Rule of Professional Conduct
“I shall, in the light of all circumstances
surrounding my client, make every effort
to ascertain and understand, give him
that service which, had I been in the
same circumstances, I would
have applied to myself.”
2

You created incomes where none could have existed...
You created solvency where there should have been bankruptcy...
You created education where there would have been ignorance...
You created comfort where there would have been suffering...
You created peace of mind where there would have been despair...
You created independence where there would have been dependence...
You created profit where there would have been loss...
You created smiles where there would have been tears...
Do you know how many masterpieces
you have already created ? With the
power of conviction as your ally, you
can go on creating masterpieces your
whole life through. There is no ending
to creation.
- Paul Speicher
3

This article is the text of a sermon broadcast in Great Britain
by Dr. J.L. Hugson of Glasgow, England- The Review, December, 1974
I am not an insurance agent but there are things I ought to tell you about insurance. Every time a young man comes to me at the
marriage altar, I feel like telling him he ought to give his bride a substantial life insurance policy.
You have no right to take a girl from a position where she may be earning her own living and tie her down to a family that would
make it difficult for her to earn a livelihood again... unless you give her some protection and security... if anything should happen
to you. Before you buy her a car, you will need more insurance- all the more in these days of highway fatalities. Get her a policy
that will protect her before you even buy her a piano. Put first things first and let the other things come along as you can afford
them.
There are two exigencies of life that should be met by every man to the limit of his ability. One is the protection for his old age, if
he should live. Modern life insurance provides for these exigencies with its death claims and its annuity programs. In your
weekly or monthly budget, you can put in a few shillings for insurance as one of the necessities of life; just as you would save for
the coal bill or the winter overcoat. A bit of foresight, a bit of planning will do it; and the money that would have gone for
something else, we can do without, will have been saved for this supreme necessity.
I know why I urge you this. It is my duty as a minister to stand by the flower-decked altar and also the flower-covered coffin; to
play my part in the setting up of the home in the hour when it is broken. In the days that follows, I see the difference between
the widowed mother who was left penniless, and the mother who is helped, through the hardest years, by the proceeds of a life
insurance policy; between the home where the children must be left alone or to the care of others while the mother goes out
and earns a living; between the children who grew up as best as they can and the children that don't... and the juvenile courts
know the difference, too.
The Lord may provide, but it may be a washtub for your wife to sweat over a room in a dingy tenement, or for your children to
live in; or public charity to support your family. God does not put a premium on your thoughtlessness nor neglect. If you could
provide for them not but did your best, you may trust them to the Lord who said: “Leave thy fatherless children and I will
preserve them.” But if you could provide for them but did not, you may slip out but your children will pay the price.
Thus, if I could not be a minister, I would want to be a an insurance agent from the standpoint of the good things I can do.
The minister cannot always save the fatherless and the widow from loneliness and sorrow but the life insurance man can
rescue them from poverty and need... and lift the fear in their lives.
4

A Challenge
Give me work to do, a job that I can call my own, where I can both lose myself
and find myself in the daily job of doing it, where my hands will not be tied nor my
talents cramped, and where I can breathe the pure, sweet air that is my birthright.
Give me a job whose opportunities reach outward and upward to the blue skies
above, where I will never know confining boundaries or limited horizons.
Give me work to do among my fellowmen, where I can feel at the setting of the sun
that I have eased the load on my brother's shoulders, that I have brought peace
and quiet to fearful hearts.
Give me work to do, a job where I can be glad of life because it gives me the chance
to love and to work and to play and to look up at the stars; to be satisfied with
my possessions, but not content with myself until I have
made the most of them; to think seldom of my enemies, often
of my friends, and every day of my opportunity to serve.
And at last, give me the courage to do the job well for
only in doing so can I expect to find my own untarnished
happiness.
- PAUL SPEICHER
5

The Psalm and the Shepherd
On Having the Life Insurance Business Inside You
6
An old, old story comes to mind. It is one I heard long, long ago and then forgot and now remember. The story
concerns a party honoring a great actor.
During the evening at a friend’s house, the actor obligingly recited excerpts from the plays in which he had
appeared. Feeling that a change of pace would be in order, he suddenly began the familiar lines of the Twenty-
Third Psalm, “The Lord is my Shepherd.”
As was to be expected, the recitation was a beautiful piece of elocution, and at the finish, a storm of applause
arose.
Then a devout old man ‘who for decades lived close near the Shepherd,’ asked if he might recite the same psalm.
Now, there was no elocution, but with closed eyes, the old man moved from verse to verse. A deep quiet settled
into the room. When he had finished, there was no applause and good-byes were quietly spoken.
As the actor said goodbye to the old man, he whispered in his ear- “I know the Psalm but you know the
Shepherd. That makes the difference.”
So there are agents who are extremely professional. They know the words of their sales talk, the strategy, the
techniques, and they put on a good show in the interview.
But how much more real would this show we call the interview be if the agent knows Life Insurance as well as the
words of Life Insurance. Then the interview would not just be an act but an “emotional experience,” and men
would buy because an “earnestness” of the agent impels them to do so.
I know one agent, now dead, who knew Life Insurance as well as the words of Life Insurance and who was not
afraid to place directly an issue before the prospect. After an unusually serious interview, a prospect said to him:
“Go away, you make my life miserable.” “Good,” replied the agent, “when you are tired of feeling miserable, call
me up and we’ll take care of the problem.”
When you know the power of Life Insurance as well as you know its provisions, that’s the kind of interviews you
will have. Then not only will be in the Life Insurance business, you will have the Life Insurance
business inside you, and as the actor said to the old man, “That makes the difference.”
- Paul Speicher

You are not a professional man like a doctor, and yet you probably have kept more
souls and bodies together than many and many a doctor;
You are no great musician. No greater symphony of yours holds thousands with its
charms. But you have made old age, a symphony for thousands of men and
women;
You never won the Pulitzer Prize for the best novel of the year. Yet you have given
many happy endings to thousands of real life stories as lived by real men and
women;
You never preached a sermon that saved a soul. But the contracts you have written
have saved thousands of children from the delinquency which so often is associated
with poverty;
You have never accumulated a fortune which you will leave to some great charity,
but you have helped thousands of persons to master their financial problems that
charity is unnecessary;
You work with imperishable materials. The song and the story, the rhythm and
the ebb of life is in your business, and underneath the clauses of the contracts you
write is the singing heart of financial safety, financial contentment,
financial happiness.
-INSURANCE SALES MAGAZINE
What Kind of Work Do You Do,
Mr./Ms. Life Underwriter?
7

I SELL INTANGIBLES
I sell rocking chairs for little old ladies.
I sell dolls and doll clothes for Daddy's little girl.
I sell little red wagons for Daddy's little boy.
I sell an income for widows and orphans.
I sell milk for babies.
I sell homes where flowers bloom in the front yard and children play in the backyard.
I sell roofs, fuel, oil, heat, light and power.
I sell college educations.
I sell golf clubs, fishing, tackle, trips to the garden spots of the world. I sell happiness
and security to the families of my friends and acquaintances.
I sell self-respect to old men, but I sell to them when they are young. It's all right
when a son, age 10, says to Dad, “Give me a dollar, will you, Pop?” They both smile.
But when Dad, aged 70, says to son, age 40, “Son can you lend me $10 to pay my
bills?” ... then, nobody smiles.
A life insurance policy doesn't run on wheels. You can't eat it, or wear it, and you
don't show it off to the neighbors. But it is the most “intangible” form of
economic security yet devised by man.
Many think of life insurance as something intangible. They think
they cannot sell intangibles. Neither can I. I operate under the
greatest notions counter known to the mercantile industry.
8

Policyholder Service may sound like a dull, uninteresting subject to the newer agent struggling to make a start in the business. He’s too busy
prospecting and setting sales interviews to delve too deeply into that thing called “service.” Besides, he is running against time to learn more about
the various policies; their provisions; approaches to prospects; polishing his sales presentations, and trying to organize his time and how to work
more effectively.
All is not dark futility and frustration. Early in his career, he should see a light at the end of the tunnel. The sooner he envisions himself as building
a clientele, the better. Selling on a hit or miss basis can lead to failure. Successful careers are built with clients and here are some of our thoughts
on that.
The Client Builder makes it easy for his policyholders to buy from him. He keeps his name, address and telephone number in front of his
policyholders through the use of calendars, birthday cards, other periodic mailings and on the portfolio that contains his policyholder's life
insurance policies.
The Client Builder recognizes that many people have a limited concept of their true financial value. A man, age 35, who has an income of $30,000 a
year and never makes anything more, will earn $1,050,000 before age of retirement. A $50,000 a year man, age 40, will be receiving at least
$1,250,000 before he reaches age 65. And a $100,00 a year man, age 50, will earn at least $1,500,000 by the time he become age 65. That’s lot of
money and earning power must be protected by life insurance.
The Client Builder will raise his policyholders’ sights to their true values. He will help them visualize their financial future and give them a goal to
shoot for. He will show them how they can be financially sound. From the moment he sells them or a new buyer, he starts his clients looking
forwards the day when they can gain financial stability through life insurance.
The Client Builder works with a pattern to keep his competitors from “cutting-in.” He tries to set for each of these policyholders a schedule for
future purchases. He may suggest that a client plan to use his next raise or an upcoming promotion to start an educational plan for his children or a
year from now, a certain client should buy additional retirement income insurance. With the seeds of future sales already planted, there is a less
chance that a policyholder will buy from an “outside agent.”
The Client Builder also realizes that his own insurance program must be adequate before he recommends that his policyholders purchase more.
When he increases his own insurance, his sales production will also increase. Knowing what his own life insurance will do for his family, he can
readily see what life insurance will and can do for their families. He can sell with conviction.
The Client Builder has no prospecting problems. He virtually works primarily with and through his policyholders and centers-of-influence. He works
on mostly referred leads. His prospects are well qualified. He also realize the importance of keeping his center-of-influence informed as to his
general progress and results.
The Client Builder knows that, assuming 300 working days a year, that if he calls on one policyholder each day, he can call on a minimum of 300
clients a year. Many of the visits will be brief, it need not be time wasted. Some policyowners will from time to time drop hints about themselves
or friends which can lead to other sales. New business from policyholders at many times is there for the taking. It will be missed
by the “hit and run” agent. But the Client Builder conducts his business with such foresight that virtually every time he makes sales,
he paves his way for future sales. POLICYHOLDER SERVICE IS HIS BREAD AND BUTTER.
9

The Life Insurance Agent
If Doctors Save Lives,
You Save Families
10

As nature is studied and subdued, and as society is developed, the element of
chance is slowly eliminated from life. In a progressive society, education, science,
invention, the arts of production, with regular government and civil order, steadily
working together to narrow the realm of chance and to extend that of foresight. But
after they have done their best to conquer the forces of nature and regulate human
passions, so that achievement shall follow purpose with uniformity, there remain
certain events which may disturb all anticipations, and in spite of any man's best
wisdom and effort may deprive him of the fruits of his labor. These are mainly two:
(1) damage to property and (2) premature death.
The direct contribution of insurance to civilization is made, not in visible wealth, but
in the intangible and immeasurable forces of character on which civilization itself is
founded. It has done more than all the gifts of impulsive charity to foster the sense
of brotherhood and of common interests. It is impossible to conceive of civilization
in its full vigor and progressive power without this fundamental law of practical
economy, that he best serves humanity who serves himself, with the golden rule of
religion, “Bear Ye Another One's Burdens.”
- Programming and Related Markets, Research & Review Service of America
In summing up the Service of Life Insurance to Individual and National Well-Being,
we cannot do better than to present the following two paragraphs from the article
on insurance which appears in the Encyclopedia Britannica:
11

Individual & National Well-Being
There is a close relationship between the citizen and the state so far as well-being is concerned.
The two are sides of the same coin. National well-being springs from individual well-being. It can
have no other source. For either a man is a national asset or he is a national liability. At a given
moment, he cannot be both asset and liability. To the extent, therefore, to which life insurance
protects individual well-being, it increases national well-being.
Protecting the Middle Class
Life insurance is the favorite investment of our great middle class and it is well that it should be
so. For it is our middle class, sufficiently wealthy to maintain a comfortable standard of living,
sufficiently poor to require conservatism in Its manner of living, which constitutes the heart of
our nation.
The first objective of every dictator is to destroy the middle class, reducing it to the poverty
level, so that the next step toward abject slavery may be the more easily taken.
When a family drops from the middle-class group to the poverty-stricken group, the chances
are that for at least one generation the family will not be able to climb again to the middle-class
level. Every family which life insurance rescues from this fate, enabling it to remain upon the
middle-class level, strengthens the greatest resource of the nation.
Research & Review Service of America
12

WHY HAVE
LIFE INSURANCE ?
The answer to the question, “Do I Need Life Insurance?” depends on your
answers to two more questions. The first is, “In the event of my death, will
anyone experience an economic loss?” If the answer to that question is yes,
someone will suffer an economic loss, then you are ready for the next
question: “Do You Care?” If you do not, then you have determined that you
do not need life insurance.
However, if you do care, then you do need life insurance.
Life Insurance guarantees that the person who will take an economic loss in
the event of your death will be indemnified for that loss. Replacing human
life value is the primary purpose of life insurance, and that is what is totally
unique about this product. No other contract or property that you can buy
will do what a life insurance contract will do for your beneficiaries.
-Ben G. Baldwin
The Complete Book of Insurance
Probos Publishing Company, 198913

Life Insurance is a means of providing security for one's dependents and one's self.
When a person's application for life insurance is accepted by the life insurance
company, he pays the premium and receives a policy. That policy is a contract
whereby the insurance company promises to pay one's beneficiaries or the insured
himself or herself, according to the agreement and/or conditions as stated in the
policy, a sum of money either upon the occurrence of some specified event or at
some definite date in the future.
In the beginning, life insurance was thought of- only as money for the dependents
at the death of the insured. This, of course, is still its main purpose. However,
there are various other uses for it today that makes the service of life insurance is
much broader.
Life insurance, is now bought not so much because people die but, rather,
because incomes die. Income may stop because people may die too soon, or, on
the other hand, may live too long past the time they are able to work. Life
insurance affords protection in either event. It can be used as a reserve against
emergencies arising in life, as well as emergencies resulting from death. Men and
women now buy life insurance not only because they expect to die, but because
they expect someone to live, themselves included.
Research & Review Service of America
14

WHY DO PEOPLE
BUY LIFE INSURANCE?
People buy
Life Insurance
NOT
because they will die
BUT
because their incomes die.
15

 is the hostage which a man gives to a
selfish world for the security of
himself and his family.
 is the bond a man gives that when he
dies, he will not be a defaulter.
 is the supplement a wise man adds to
his marriage vow- it goes further than
“until death do us part.”
16

 I am a piece of paper, but even more.
 I am an idea.
 I am a promise.
 I helped men see visions, dream dreams, and achieve economic immortality.
 I am education for children.
 I am savings.
 I am also a property that increases in value from year to year.
 I lend money when you need it most with no questions asked.
 I pay off mortgages so that families can remain together in their own homes.
 I assure fathers the daring to live and the moral right to die.
 I create, manage, and distribute property.
 I am the great emancipator from want.
 I guarantee the continuity of business.
 I protect the jobs of employees.
 I conserve the employer's investments.
 I am the intangible evidence that a man is a good husband and father.
 I am a declaration of financial independence, a character of economic freedom.
 I am the difference between an old man and an elderly gentleman.
 I provide cash if illness, injury, old age, or death cuts off the breadwinner's income.
 I am the only thing that fathers can buy on the installment plan that mothers don't have to finish paying for.
 I am a certificate of character and evidence of good citizenship, an unimpeachable title to the right of self-
 government.
 I am protected by laws that prevents creditors from assessing the money I give to your loved ones.
 I bring dignity, peace of mind and security to the later years of life.
 I supply investment capital that makes smoke go up chimneys, the wheels turn, and the motors hum.
 I guarantee that there will always be Christmas, with tinsel, a happy fireside and the laughter of children
 even though father is not there.
 I am the guardian angel of the home.
I AM YOUR LIFE INSURANCE POLICY17

 People buy because of their own reasons
not ours
 People buy our products not because they
understand the product but because they
feel we understand them
Larry Wilson in his book, “Counselor Selling”
18

“The most common purchase of
life insurance is... to cushion a
family financially if the primary
wage earner dies prematurely.
In short, Life Insurance is a
security blanket- something to
replace your pay check and to wrap
around your dependents when you
die.” - Leonard Sloane, The New York Times
Book of Personal Finance, New York: Times Books, 1985, Page 96.
Life Insurance
...is the "hostage"
which a man gives to a selfish world
for security of himself and his family."
19

I Am Your Life Insurance Policy
You and I have similar purposes in this world.
It is your job to provide food, clothing, shelter, schooling, medicine, and other things for
your loved ones. You do this while I lie in your strong box.
I have faith and trust in you. Out of your earnings will come the cost of my upkeep. At
times, I may appear to be worthless to you - but some day (and who knows WHEN), you
and I will change places.
When you are laid to rest, I will come alive and do your job. I will provide the food,
clothing, shelter, schooling, medicine, and other things your family will continue to need
- just as you are doing now.
When your work and toil are done, mine will begin. Through me, your hands will carry
on.
Whenever you feel the price you are paying for my upkeep is burdensome, remember
that I will do more for you and your family than you ever can do for me.
If you do your part, I will do mine.
Sincerely,
Your Life Insurance Policy
21

Each Day We Head to Work
to Earn Money for…
Food
Taxes
Clothing
Recreation
Shelter
Savings
and many other things….
22

Don’t Expect Too Much
from Life Insurance Except…
REGULAR SAVINGS
BY THE CALENDAR
CASH FOR EMERGENCIES
AND/OR OPPORTUNITIES
EXPERT INVESTMENT
OF YOUR SAVINGS
PAID
IN FULL
CANCELLATIONOF
HOME MORTGAGE
IMMEDIATE ESTATE
CREATION AT DEATH
PROTECTION FOR
THE WHOLE FAMILY
INCOME OPTION ARRANGEMENT
LIMITED YEARS OR FOR LIFE
FUNDING SOURCE FOR
BUSINESS CONTINUATION
WHEN BUSINESSOWNER DIES
ASSURANCE OF
CHILDREN'S EDUCATION
GUARANTEED INCOME
DURING RETIREMENT YEARS
ITALY
MADRID
PEACE OF MIND THROUGH
FINANCIAL SECURITY
CONTINUINGINCOME
FOR THE FAMILY
23

Don't Make Them Pay
for Your Life Insurance
It is a funny thing about life insurance. It has to be paid for, whether or not... it
is bought.
If you buy the life insurance your family needs, then you pay for it out of current
income. You spend less here and a little less there. You do a little better job of
budgeting, of watching out for unnecessary expenditure.
But, if you don't pay for the life insurance out of the money in your pocket today,
then your family may have to pay for it someday.
You say: “But how will they pay for it?"
The answer is that “they have to pay for it- out of the things they do without- the
opportunities they do not enjoy; the school they are unable to attend; the
home from which they are forced to leave; the sense of security they do not
possess; a mother's attention which is not theirs because she must work to live
and so that they may live.”
Ask yourself this question: “Who pays the biggest price for life
insurance, I or my children?” Then, act in accordance with your answer.
24

WHAT DOES A LAPSED POLICY MEAN
TO WIDOWS AND ORPHANS
I Am Useless because… I AM A "LAPSED" POLICY
Once I was the abiding place of faith, hope, and security. I throbbed with life and
power. Potentially, I was food, clothing, and shelter. I pulsated with strength and
vitality. I had the power to save homes, to discharge debts, to educate children; to
provide comforts and the luxury of life. I was the instrument which made the
uncertain, certain. I was an asset.... a piece of parchment paper convertible to an
estate in the twinkling of an eye.
Then, he whose life I insured was gone. The time of accounts descended upon the
widow, and I was uncovered from the dust in the drawer. I heard the widow's gasp
of surprise. I heard her heartrending sob of anguish. I heard her cry of
disappointment. Her hope ended in despair. Her security forsook her. Her
protection was gone.
Yes, I am a “lapsed” policy. My life and power are gone. I can save
no homes. I can discharge no debts. I can educate no children. I can
provide no comforts, no luxuries. I am no asset; no estate. I am
tragedy, sorrow, a mockery... I AM A “LAPSED” POLICY.
- Source Unknown
25

26
If every wife knew
what every widow knows,
LIFE INSURANCE...
would never have to be sold.

Why Life Insurance
on the Wife
 To help pay off the mortgage
 To offset the extra estate tax
 To pay the cost of last illness
 To provide a charitable bequest
 To provide a "housekeeper fund“
 To provide a dowry for the daughter
 To pay for her last expenses in old
age
 To help with the children's education
 To supplement her husband's
retirement income
 To help a son or a daughter in the
first, low-income years of marriage
 To supplement Social Security old
age income if her husband dies first
 To supplement Social Security after
her husband retires until payments
begin when she's 62
 To provide cash for a trip she'd like to
take when the children are grown
 To continue retirement income if
husband's funds runs out at his death
 To give a son or a daughter a
memorable wedding
 To offset loss of income tax savings
 To do something for grandchildren
 To help her husband retire earlier
 To give a son or daughter a start in
business
 To provide a safe investment
27

Dignity in Old Age
A Story from Life
Men are usually protected from a total loss of nobleness by the propensity of females to outlive males. Few men are forced to
live with relatives- for their women bury them. But when a man is compelled to move in with a child, it seems more degrading
for him than for a woman. Maintaining dignity in a son's house or a son-in-law's domain is very tough for a man who has been
a breadwinner for a lifetime, but sometimes... it is necessary.
There was once an old man who spent half each year with each of his two children, a son and a daughter. The young people had
their own families. Bathroom space was at a premium, and there was usually a second occupant in Grand Pop's room. He had
enough from Social Security to pay for his food and clothing plus gifts for the grandchildren from time to time, but his level of life
-- overall, was excess baggage at best. Daily, he dressed to the hilt, tie and all, in an effort to reflect past glory and to conjure up
personal nobility in the here and now.
Change over time from one house to the other was never pleasant. Twice a year, one household rejoiced in its new found
freedom from the old man, and the second shuddered at the prospect of having him as an unwanted guest for six months. To
say that love did not exist would be falsehood, for had there not been much love, neither family would have given Grand Pop the
time of day. Love existed alright, but it was being eaten into by the need of the man to live with his lovers. His enthusiasm for
life was eroded by the strained situation which peaked in unpleasantness at change-over time. January 1st and July 1st were
bad days.
Finally, he decided to play his trump card in his fight for status. He owned a $160,000 paid-up life insurance contract which
neither child knew about, and he arranged its provisions to take some frustration out of his life. He wrought a miracle in the
attitudes of the families toward him by setting the beneficiary clause as follows and telling them about it:
Primary Beneficiary: My child whom I am living with when I die
Secondary Beneficiary: My other child
Special Arrangement: If either of my children die before I die, and I am living with his or her spouse at the time of my
death, the spouse of my deceased child is to be considered my primary beneficiary. Furthermore, if both my children
die before me, the spouse of the one I am living with is my primary beneficiary.
The old man's stock shot up like IBM in the old days. Attitudes on change-over day reversed instantly. One family hated with
passion to see him go, and the other could hardly wait to receive him. Money had everything to do with that gentleman's
degree of nobleness, but he had to bargain with his loved ones to preserve his status as a person of worth.
Charles Murray in his book, “Don't Talk To Me About Death,”1977
“The heaviest burden an old person can carry is an empty wallet!”28

Friends
Are Like Life Insurance
They build up valuable reserves for you.
They pay off when you least expect them to.
They help you when you need them most.
Their cost is low.
They're renewable and sometimes have the loan privilege.
They're for the whole of life.
Some are substandard.
The longer you keep them, the more value they have.
You generally get back more than you put into them.
They give you a steady income of smiles.
They're endowed with patience and understanding.
They make wonderful beneficiaries for your family.
Friendships end when you cash in on them.
- Author Unknown29

The Bicycle Analogy
The Company's Training Program with the assistance you should expect to receive from members
of your Management Team plus your own personal efforts will definitely assure you of achieving
and maintaining this balance. All these will make you become the professional life underwriter
you want to be.
Training to become a professional life insurance
underwriter involves intensive human relationship skills
development in addition to the technical training and
skill required. As you will soon see, these two areas
are interrelated.
To provide you with a clearer view, think of your
training in terms of a bicycle.
The “rear wheel” of the bicycle provides the power. It
represents product skills and the technical knowledge
of the life insurance business- the power you need for
your career.
The “front wheel” of the bicycle provides you the
direction. It represents people skills and a real
understanding of human behavior- the directing aspect
of your career.
In order to function properly, the bicycle's wheels
must be balanced... the rear wheel must be in tune
with the front wheel.
32

CONSCIOUS
INCOMPETENT
“He Knows
That He Knows Not”
UNCONSCIOUS INCOMPETENT
“He Knows Not That He Knows Not”
UNCONSCIOUS
COMPETENT
“He Knows Not
That He Knows”
CONSCIOUS COMPETENT
“He Knows That He Knows”
Stages of Skill Learning
35

Stages of Skill Learning
CONSCIOUS COMPETENT
“He who knows and knows that he knows, is wise, follow him.”
UNCONSCIOUS INCOMPETENT
“He who knows not and knows not he knows, is a fool, shun him.”
CONSCIOUS
INCOMPETENT
“He who knows not
and knows he knows not,
is simple, teach him.”
UNCONSCIOUS
COMPETENT
“He who knows
and knows not he knows,
is asleep, wake him.”
36

Give them fish
and they will eat
for a day.
Teach them
“how to fish,”
and they will
always have food
to last a lifetime.
37

Five Qualities
of a Professional
38

Food for Thought
He who ceases to study will soon cease to think;
He who ceases to think will soon cease to grow;
He who ceases to grow will soon begin to retrograde;
He who retrogrades will cease to enthuse;
He who ceases to enthuse about his life work
will cease to love it;
He who ceases to love his work is in an unholy mess
Dr. Solomon Huebner
Professor Emeritus of Insurance
Wharton School of Finance
39

Two men cut wood all day long. One worked straight
through, without stopping to rest. At the end of the day,
he had a sizable pile of logs. The other would chop for 50
minutes and then take a ten-minute break. At the end of
the day, he had a much larger pile.
“How could you chop more?” asked the man who'd
worked continuously.
His friend replied: “When I stop for rest, I also sharpened
my ax.”
Make Time for
Continuing Education
40

“If you’re sitting on your ‘laurel,’
you're wearing it at the wrong end.”
- Frank Bettger
WHEN YOU GETTING BETTER,
YOU BEING GOOD
Remember...
41

42
“THE MOST
UNDER-DEVELOPED TERRITORY
IN THE WORLD
IS UNDER PEOPLE'S HATS.”
ELMER G. LETERMAN

IF YOU THINK
TRAINING IS EXPENSIVE,
TRY
IGNORANCE!
43

How Proper Planning Should Work
44
GATHERING
Facts and Objectives
Your Estate Planning Team
Accountant, Attorney, Life Underwriter, Trust Officer, Financial Consultant
ANALYZING
Information
IMPLEMENTATION
of Your Plan

Financial Planning Process
 Examine where you are now and where you want to be financially
 Gather information and present resources that can be used to meet your goals
 Analyze the information gathered
 Propose appropriate solutions to meet your priorities and objectives
 Ask you to take action to meet your goals
 Continuously evaluate your situation as your needs change
FINANCIAL
INDEPENDENCE
45

D.O.M.E. PLANNING FORMULA
Where Am
I Now?
Where Do I
Want to Go?
How Do I
Get There?
How Am I
Doing?
46

ATTITUDE COMMANDMENTS
 It is attitude, not aptitude, that governs altitude.
 The purpose of existence is not to make a living, but to make a life.
 A negative thought is a down-payment on an obligation to fail.
 You will seldom experience regret for anything you've done. It's what
you don't do that will torment you.
 Complaining is the refuge of those who have no self-reliance.
 The ultimate cost of something is that amount of life that you will
exchange for it.
 Youth is not a time of life, but a state of mind. Wrinkles test the skin,
but never touch the soul.
 People who have not set a worthwhile purpose in life are easy prey
for anxiety.
 The worst bankruptcy is the person who has lost enthusiasm.
 Nobody can make you feel inferior without your consent.
from “Another Pocketful of Lists,” a LIMRA Publication
- Elmer Leterman47

How do you
develop Positive
Attitudes
on the job?
While Talent is
important and
Knowledge is
essential, the most
important Key to
Success is your
State of Mind!
DEPENDABILITY
is a keystone to
Success on the job!
-- Get to work
-- do the job
PRIDE
in your work-
is a basic satisfaction
that can be yours
in any job.
RESPECT
right of others-
and give credit
to others for
what they do.
CONSIDERATION
for others-
to help them do
their job by not
using up their time.
KNOWLEDGE
is important-
the more, the better-
from people, books,
experience. It helps
you grow on the job.
ENTHUSIASM
fuels progress-
The more, the
better… even a
Smile can help.
NEGATIVE POSITIVE
There’s no better place
to practice the
GOLDEN RULE
than on the job!
What
difference
does it make
if it’s not a
perfect job?
I’ll do my
job the best
I can because
others depend
on me!
Here are 6 suggestions…
48

Are You “Average?”
“Average” is what the failures claim to be when their families and friends ask them why they
are not more successful.
“Average” is the top of the bottom, the best of the worst, the bottom of the top, the worst
of the best... which one of these are you?
“Average” means run-of-the-mill, mediocre, an also-ran, insignificant, a non-entity.
Being “Average” is the lazy people's cop-out; it's lacking the guts to take a stand in life; it's
living by default.
Being “Average” is to take space for no purpose; to take the trip through life but never to pay
the fare; to return no interest for God's investment in you.
Being “Average” is to pass one's life away with time rather than to pass one's time away with
life. It's to kill time rather than to work it to death.
To be “Average” is to be forgotten once you pass away from this life.
The successful are remember for their contributions, the failure are
remembered because they have tried; but the “Average,” the silent majority,
is just forgotten.
To be “Average” is to commit the greatest crime one can against
one's self, humanity and one's God. The saddest epitaph is this...
“Here lies the remains of what might have been except for
their belief that they were only “Average.”
- Edmund Gaudet
49

"The only acceptable quality level, says those who have been charting a course back to competitive excellence, is 100 percent. That's the standard of
measurement. The rationale is simple: Set a standard of 95 percent, and people figure they're doing fine if they're at or near it. In the language of the Malcolm
Balridge National Quality Award, however, quality is a 'race with no finish line.' There's no time of day or month on the calendar when it's okay to let up.
The alternative to setting standards at their highest possible level becomes clear when you look at the consequences of "almost but not quite.” If 99.9% is good
enough, then ..."
( Excerpts from A Special Training Report by Natalie Gabel )
Two million documents will be lost by the IRS this year.
811,000 faulty rolls of 35mm film will be loaded this year.
22,000 checks will be deducted from the wrong bank accounts
in the next 60 minutes.
1,314 phone call will be misplaced by telecommunication
services every minute.
12 babies will be given to the wrong parents each day.
268,500 defective tires will be shipped this year.
14,208 defective personal computers will be shipped this year.
2,200 gallons of coffee assumed to be caffeinated will turn out
decaf instead- but consumed nonetheless in just one tax firm
during the 1991 season.
103,260 income tax returns will be processed incorrectly this
year.
2,488,200 books will be shipped in the next twelve months
with the wrong cover.
5,517,200 cases of soft drinks produced in the next twelve
months will be flatter than a bad tire.
Two plane landings daily at O'Hare International Airport in
Chicago will be unsafe.
18,322 pieces of mail will be mishandled in the next hour.
291 pacemaker operations will be performed incorrectly
this year.
880,000 credit cards in circulation will turn out to have an
incorrect cardholder information on their magnetic strips.
$9,690 will be spent today, tomorrow, next Thursday, and
every day in the future on defective, often unsafe, sporting
equipment.
20,000 incorrect drug prescriptions will be written in the
next twelve months.
$761,900 will be spent in the next twelve months on tapes
and CDs that won't play.
107 incorrect medical procedures will be performed by the
end of the day.
315 entries in Webster's Third New International Dictionary
of the English Language (unabridged) will turn out to be
misspelled.
50

“If You Stop Getting Better,
You Stop Being Good!”
Good, Better, Best.
Don’t You Let It Rest.
Until Your Good Becomes Better.
And Your Better Becomes Best!51

Nothing in the world can take the place of persistence.
Talent will not; nothing is more common than
unsuccessful men with talent.
Genius will not; unrewarded genius is almost a proverb.
Education will not; the world is full of educated derelicts.
Persistence and determination alone are omnipotent.
The slogan “Press On” has solved and always will solve the
problems of the human race.
- Calvin Coolidge
52

The Ace Salesperson
And in those days, behold, there came through the gates of the city, from afar off and it came to
pass as the day went by, he sold plenty.
And in that city were they that were order takers and they spent their days in adding to the
alibi sheets. Mightily were they astonished. They said one to the other, “What the hell; how
doth he getteth away with it?”
And it came to pass that many were gathered in the back office and a soothsayer came
among them. And he was one wise guy. And they spoke and questioned him saying, “How is
that this stranger accomplished the impossible?”
Whereupon the soothsayer made answer “He of whom you speak is one hustler. He ariseth
very early in the morning and goeth forth full of pep. He complaineth not, neither doth he
know despair. He is arrayed with purple and fine linen, while ye go forth with pants unpressed.”
“While ye gather here and say one to the other, 'Verily this is a terrible day to work; he is
already broad. And when the eleventh hour cometh, he needeth no alibis. He knoweth his
line and they would stave him off, they give him orders. Men say unto him 'Nay' when he
cometh in, yet when he goeth forth, he hath their names on the line that is dotted.“
“He taketh with him two angels, ‘inspiration‘ and ‘perspiration’ and worketh to beat hell.
Verily I say unto you, go and do likewise.”
- Source Unknown
53

Risk-Taking
“Risk must be taken because the greatest hazard in life is
to risk nothing. The people who risk nothing, do
nothing- have nothing, are nothing.
They may avoid sorrow and suffering. But they cannot
learn, feel, change, grow, love, live.
Chained by attitudes, they are slaves. They have
forfeited their freedom.
Only a person who take risks is free.”
-Tough Times Don’t Last But Tough People Do
54

55
“If you want to have a place
under the sun, you must be
prepared to have blisters.”

The word “Risk” came from an Arabic word
that means “earning one’s daily bread.”
56

THE ROAD TO
SUCCESS
HAS NO
SHORT-CUTS57

- Guideposts
“When I was a boy, my father, a baker, introduced me to the wonders
of song,” tenor superstar Luciano Pavarotti relates. “He urged me to
work very hard to develop my voice. Arrigo Pola, a professional tenor
in my home town of Modena, Italy, took me as a pupil. I also enrolled
in a teachers college. Upon graduating, I asked my father, ‘Shall I be a
teacher or a singer?’”
“Luciano,” my father replied, “if you try to sit on two chairs, you will fall
between them. For life, you must choose one chair.”
“I chose one. It took me seven years of study and frustration before I
made my first professional appearance. It took me another seven
years to reach the Metropolitan Opera. And now I think whether it's
laying bricks, writing a book- whatever we choose- we should give
ourselves to it. Commitment, that's the key. Choose one chair.”
An Anecdote
About Commitment
58

Managerial
Authority
and
Involvement
Personal
Independence
and
Responsibility
Manager
AgentDIRECT
GUIDE
NEGOTIATE
0% 100%
Career Growth Chart
Business Maturity
60

Senior
Partner
Senior
Associate
Associate
Marketing
Associate
Team Leader
Relationship Manager
Tier 1 Focus
Relationship Manager,
Support Senior Partner
Supervises Protégé
Marketing
Phone Support
Production Support
Client Service
Personal Production
Marketing
Phone Support
Production Support
Client Service
Personal Production
Relationship
Manager
Learn the Business
Limited Time Position
Tier 1
Referrals
$
$
$
 Tier 1 production
 Target market & team development
 Advisor to management team
 Expand overall business base
 Develop junior team members
 Tier 1 fact finder
 Build inventory
 Develop junior team member
 Provide specialized support
 Build inventory
 Develop protégés
 Build association relationships
 Team support
 Mentor support
 Day to day marketing
program interface and
implementation
 Ability to close Tier 1 cases
 Ability and commitment to lead team
strategy
 Ability and commitment to develop team
skills
 Ability and commitment to provide major
strategy & tactical input to team
 Ability and commitment to develop team skills
 Ability and commitment to direct
marketing program for team
 Ability to train protégés
 Raw senior associate
potential
 Commitment to training
regimen
 Ability to absorb and
demonstrate the 8 basic
habits
CAREER GROWTH & DEVELOPMENT
$
61

Doing the exact same things over and over
but expecting different results.
62

Follow the Leader
or Follow the Follower?
Following the example of successful people is a good idea.
It avoids the trial— and— error of blazing your own trail.
But most people, Nightingale observed, are so hungry for
acceptance, they try to be like everyone else. Instead of
marching forward, they march in circles, following each
other in mindless lockstep and going nowhere.
That concept is easy enough to understand. But it’s very
hard to do something about it. You can’t overcome a
lifetime of knee—jerk responses after only one hearing.
But, after repeated hearings, you start to make headway.
Another simple concept is that people reflect what
you show them. If they see you as being indifferent,
they will treat you indifferently. If they see you as
expecting the worst, they will behave at their worst.
But if they see you as kind and caring, they will
treat you with care and kindness.
63

Ten Steps to Success
64
EFFECTIVE TIME MANAGEMENT
IS ESSENTIAL TO SUCCESS!
FOCUS
ATTITUDE ACTION
COMMUNICATION CHOICES COMMITMENT
PLANNING PURPOSE PASSION PEOPLE

Steps in the Sales Process
66
THE APPROACH
ESTABLISH THE GENERAL PROBLEM
ESTABLISH THE SPECIFIC PROBLEM
PRESENT THE IDEAL SOLUTION
MOTIVATE THE PROSPECT
CLOSE THE SALE

THOUGH BECOMES
Steps in the Buying Process
67

From
Satisfaction
through
Comparison
to
Dissatisfaction
(Recognition of a Deficiency)
The point is reached at which the urge to satisfy the deficiency
through the contemplated purchase becomes an
Emotional Necessity
68

From
Satisfaction
through
Comparison
to
Dissatisfaction
(Recognition of a Deficiency)
The point is reached at which the urge to satisfy the deficiency
through the contemplated purchase becomes an
Emotional Necessity
But before the purchase is made, the Emotional Desire must be
supported by Logic and Reason. The must be
Factual Motivation
69

Selling Steps
1.
2.
3.
4.
ESTABLISH The General Problem
The Specific Problem
PRESENT The Solution
ANSWER Objections
MOTIVATE Lead the Prospect to
Take Action
70

Self-Preservation/Fear
Love
Vanity/Ego
Profit
An understanding of human motives is important to salespeople
because motives tell them what will move a person to action
71

INBORN NEEDS
1
Recognition
as an
Individual
2
Self-
Expression of
Feelings/
Objectives
3
Benefits:
What’s in It
For Me?
4
Security: Am I
Doing the
Right Thing?
An awareness of inborn needs common to all people
can help you plan your sales strategy
72

BUYING DECISIONS
IN THE CREATIVE SALE
Effective Salesmanship
helps the prospect make the above buying decisions
YES NO
2. Here’s a problem to be solved 
3. Life or health insurance
is an ideal solution

4 & 5. Now is the time to buy
and I can afford it

6 & 7. This is the company and agent
I want to deal with

73
1. To grant an interview 

Dr. Abraham Maslow’s
Hierarchy of Needs
74

Reach Them Through the Heart!
Appealing through the Heart
(Emotions) when compared to
appealing to the Mind (Logic)
will take you a shorter distance
in order to reach your
prospect’s pocketbook!
First appeal to the heart and
follow it up with appeal to the
mind!
34”
17”
Image from Zig Ziglar’s “Secrets of Closing Sakes”
75

The Sales Pipeline*
It’s in “Seeing the People”
There is not a business going that does not
depend on new people to see.
Somehow someone must put names into the
pipeline so that what comes out the other
end are completed missions.
Although there are multiple facets to
operating any business, the entrepreneurial
spirit would mean nothing without new
prospects, and these mean less if no contact
is made.
The success of any business venture can be
measured by the percentage of time spent
face to face, and this time occurs only when
someone asks for the meeting.
78 * from the “Business of Selling,” Allesandra & Cathcart

That’s the job and you’ve got to kiss them
Don’t try to substitute
You can’t mail them a kiss
You can’t stay in the office and wait for them to hop in and kiss you
You can’t let advertising change them into princes
You can’t ask your secretary to kiss them (he or she hasn’t got the
stomach for it)
It doesn’t take a lot of smooching to tell a prince from a frog
You can’t change kissing styles every 30 days or spend all your time in
Kissin’ School
You’ve got to spend time with frogs and you’ll find them out there in
the marshes
Then, when you find one, you got to make contact
Kissing is a contact sport
-Source Unknown
79
Always Remember the Basic Premise of Any Sales Endeavor:
“You’ve Got to Kiss a Lot of Frogs to Meet a Prince.”

One Reason for Sales Slump
The vast majority of salespeople experience sales slumps. The one reason why dry spells occur can be
understood with the aid of this chart.
Let’s say you start a job in January and spent a lot of time in prospecting, in fact, it took 90% of your time
that month. Naturally, there is a time lag between your initial contact with your prospect and the
confirmation of a sale. This is called the Sales Cycle, and generally, the higher the price, the longer is the
sales cycle.
As time goes by, sales increase. Your prospecting activities begin to pay off. You become more and more
impressed with yourself. You’re making customers happy, your sales manager is thrilled and your bank
account looks better all the time.
But as your sales increase, you keep decreasing your sales activities because you think “I don’t need to
prospect, I’m making sales?” Months later, you enter a dry spell but you can’t figure it out. The answer is
simple, you have stopped prospecting. The prospecting groundwork you laid at the beginning of the year
has already paid off, and the well of new business is starting to run dry.
Sales slumps can be avoided by continually prospecting. One simple truth to remember in this
business is that “If you stop planting, you stop reaping.”
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
ProspectingSales
80

WHY DO PEOPLE
BUY LIFE INSURANCE?
81

 People buy because of their own reasons,
not ours.
 People buy our products not because they
understand the product but because they
feel we understand them.
Larry Wilson in his book, “Counselor Selling”
82

A Story from Life
I CAN'T SAVE NOW ! I'm just getting
started in life. I don't make a lot yet,
and I'm entitled to a little fun while I
am still young. Wait until I start to
make more. Then I'll save.
I CAN'T SAVE NOW ! I just got
married and I will have to buy
many things. Wait until I get
settled and then I'll save.
I CAN'T SAVE NOW ! I've got a growing family
on my hands. Maintaining the children and
paying for the house cost a lot of money. It
takes all I have to
keep them going.
As soon as they
get a little older,
it will cost less.
Then, I'll save.
I CAN'T SAVE NOW !
I've got the children in
college. It's all I can
handle right now. Wait
until they are through.
Then, I'll save.
I CAN'T SAVE NOW ! I know I should but things
aren't running the way they should. It's not easy for
a man of my age to step out and get a better job. I
have to ride along where I can. Maybe nothing
will happen yet.
I CAN'T SAVE NOW !
We're living on my
retirement income
alone and it doesn't
go far these days. I
wished I've started
20 years ago. But
now it's too late.
You can't save when
you almost don't
have income.
Out of 100 young men, each expects to be
successful by the time they retire. A recent
study showed, however, that the following
situation, exist at age 65.
25
Will Have Died
22
Will Have Incomes
Less Than $7,000
49
Will Have Incomes
Between $7,000
and $40,000
4
Will Have Incomes
Greater Than $40,000
Source: U.S. Department of Health and
Human Services, April, 1992
84

Four Steps Can Help Assure
Your Financial Success
THE LONGER YOU WAIT, THE STEEPER YOU WILL CLIMB
85
NO
SPECIFIC
PLAN
STEP 1
Set Your
Financial
Goals
STEP 2
Prioritize
Your Goals
STEP 3
Initiate
A Plan
of Action
STEP 4
Review
and Update
Your Plan

Where Will You Be @ Retirement?
25
Will Have Died
22
Will Have Incomes
Less Than $7,000
4
Will Have Incomes
Greater Than $40,000
49
Will Have Incomes Between $7,000 and $40,000
According to a Department of Health and Human Services study of 100
people, age 25, starting their careers and each one expecting to be
successful by the time they retire, the following situations exist at Age 65:
Source: U.S. Department of Health and Human Services, April, 1992
8686

Financial Security
is a Matter of Choice
People in this circle accumulate dollars for
education of their children, retirement and
other worthwhile objectives.
People in the second circle generally
have money when they need it.
People in this circle end up
with little or no
savings or investments.
Most people spend first...
and try to save and invest
whatever is left
Few people set aside a
definite amount first... and
spend the balance.
87

Soon, in the Economic World,
Men and Women will be Divided
into Two Classes:
 Those who have capital
 Those who lend money
 Those who earn interest
 Those who have a profession
or position of authority
These are the
Men and Women
Who Have Set
Financial Goals
 Those who don’t
 Those who borrow
 Those who must pay it
 Those who will take
orders all their lives
These are the
Men and Women
Who Have No Plans
of Getting Ahead.
Source: Research & Review Service of America88

From birth to 16, she needs a good mother,
From 17 to 25, she needs beauty;
From 26 to 35, she needs personality;
After that, all she needs, is Cash!
Women’s Basic Needs are Simple
Source: Research & Review Service of America89

If Your Financial Goals
are to be Attained…
Get the dollars out of
your pocketbook before
you spend them today
Get the dollars out
each and every month
without fail
Keep the dollars from
getting withdrawn and
being spent today
Invest for a lifelong
and generation-long
permanency
Give those dollars the
full profit of compound
interest
Liquidate at a:
(a) given date;
(b) upon a given event
in guaranteed amounts
Be a golden rule investment-
making provision for your
family today and for
yourself tomorrow
90

In Search of Financial Security
92

You have only two kinds of dollars in your pocketbook.
One kind belongs to you and the other belongs to the old
person you will be someday.
93
If you spend the old person's dollars today, then youth is
stealing from old age... today is stealing from tomorrow,
and you are wasting away the security and happiness of
yourself and/or your family.

Four Financial DisastersFOUR FINANCIAL DISASTERS
PREMATURE DEATH
DISABILITY
EMERGENCY
OLD AGE
94

Determining
Life Insurance Requirements
 “Human Life Value” Approach
 “Financial Concerns” Approach
 “Personal Financial Economics” Approach
95

There are Only Two
Main Sources of Income
96
 Salary
 Employer Fringe Benefits
 Personal Services

Mutt & Jeff
“If this is true for a chicken,
how much more it is… for human lives.”
Economic Value
97

What’s the Worth of a Man’s Life?
In the case of the greatest air disaster in
the United States history, it all depends.
At least $100 Million, quite likely $200
Million, and possibly $500 Million ride on
lawsuits swarming about the crash of
American Airlines Flight 191 on takeoff
from Chicago's O'Hare Airport on May 25
of last year. (1979)
Two hundred and seventy-three died that
afternoon, literally in a flash. Now at least
142 plaintiffs have filed suits against
McDonnell-Douglas, manufacturer of the
DC-10 death plane, and American Airlines,
its operator. All of the plaintiffs will get a
bundle. In fact, they only have to ask. But
how much they will get will depend on
such legal niceties as compensatory
damages, the admissibility of punitive
damages, the fine point of pre-judgment
interest and the simplest matter of all:
"...what price do you put on the life of a
human being?"
Take a hypothetical case. On Flight 191
sits a minister, 35, with a wife and three
children at home, his life dedicated to
God, to his family, and fellowmen. He
makes $20,000 a year if he is lucky. Across
the aisle is a man of the same age, with a
wife and three children, who through luck,
brains, ambition and a willingness to walk
over other people has achieved an annual
income of $150,000. Both die in the
O'Hare fireball. Both their wives filed suit
for damages. The rich man's wife, who is
well-heeled already, stands to get $4.5
Million. The minister's widow, who is
having trouble paying the mortgage and
getting the kids to school, can expect
about $600,000. If, back in the cabin,
there is an elderly bachelor with no close
relatives, those relatives he has may get
little more than enough to bury him. After
all, the law reasons, the old gentleman's
future was not worth much anyway.
This scenario is the well-educated guess of
an attorney deeply involved in the
proceedings. It boils down to a legal
standard that... “a man's worth is
determined by how much he makes, how
much he is likely to make, and whom he
has to leave to." His worth as a human
being has little, if anything, to do with it.
A standard legal text says: "...had the
decedent lived, the Court must consider
what he earned, what he was likely to
earn, what he spent on customary
personal expenses, for instruction and
moral training... his sobriety and thrift
and occupation... and services before his
death.“
"Of course, it's very unfair," said John J.
Kennelly, the attorney who handles more
of the Flight 191 cases than any other
lawyer. "Of the complex laws governing
the 34 plaintiffs within this charge... we
are going under the 14th century (English)
Common Law... it's a stage coach law. If
you say the law is an ass, of course it is."
He and Philip Corboy who handles the 26
of the 122 suits now before the US District
Court of Northern Illinois, are more
concerned over the dollars and cents
difference between compensatory and
punitive damages.
Source: United Press International, Bulletin Today, May 30, 1980, Manila, Philippines
98

Life Insurance
Capitalizes Human Life Values
“Only through the miracle of life insurance
was he able to capitalize his life value.”
John R. Torell III
Former Vice Chairman, Manufacturers Hanover Bank
I want to say a few words about how we in the banking industry
look at life insurance.
Few industries have changed as much in the last decade as
banking and insurance. But one thing has not changed, and that
is our mutual desire to serve our customers.
In this regard, my colleagues and I believe that adequate life
insurance is as essential today as it was in 1759, when the first
life insurance company was formed in the United States.
This is because inflation has distorted our value system and
made financial security much harder to achieve. A recent example
comes to mind. A doctor, age 45, died and left a wife, rich by most
standards, with a gross estate of about $1,600,000. One million
of this was life insurance, arranged in a trust.
When all the bills and taxes were paid, the doctor's net estate
came to $1,300,000. Without life insurance, it would have been
$300,000.
Now, $1,300,000 may sound like a princely sum, but this
doctor was earning about $225,000 a year at the time of his
death. Like most of us caught by high taxes and high inflation,
he spent most of what he earned. Only through the miracle
of life insurance was he able to capitalize his life value. He
had a good banker, and he had arranged to keep all these
free of taxes and administrative expenses.
To my mind, life insurance serves one purpose no other
financial instrument can. It helps us buy time- time to build
an estate, time to pay off our mortgages. It creates and
immediate estate where none existed and, with proper
planning, it does it free of all taxes.
There are other aspects of life insurance, but to me it's chief
value is estate creation, guaranteeing to each of us a
meaningful estate, even in these times.
99

You’ll Earn a Fortune
Years
Before
Retirement
AVERAGE MONTHLY INCOME
$3,000 $4,000 $5,000 $6,000 $8,000 $10,000
10 $360,000 $480,000 $600,000 $720,000 $960,000 $1,200,000
15 $540,000 $720,000 $900,000 $1,080,000 $1,440,000 $1,800,000
20 $720,000 $960,000 $1,200,000 $1,440,000 $1,920,000 $2,400,000
25 $900,000 $1,200,000 $1,500,000 $1,800,000 $2,400,000 $3,000,000
30 $1,080,000 $1,440,000 $1,800,000 $2,160,000 $2,880,000 $3,600,000
35 $1,260,000 $1,680,000 $2,100,000 $2,520,000 $3,360,000 $4,200,000
100

Acquired –v s- Potential
101
Your Age Now:
Present Income:
× Years to Age 65:
Potential
Economic Value:
______
$ _____________
______
$ _____________
Home
$ ____________
Car(s)
$ ____________
Savings
$ ____________
401(k)/
Pension Plan
$ ____________
Personal Properties
$ ____________
Stocks & Bonds
$ ____________
Total: $ ____________
PROTECT FIRST THAT WHICH YOU CANNOT AFFORD TO LOSE! 101
101

Human Life Value
“The economic value of a human life arises out
of its relations to other lives.
Whenever continuance of a life is financially
valuable to others, either to family dependents,
business associates, or educational and
philanthropic situations, the necessity for life
insurance is present.”
Solomon S. Huebner (1882-1964)
President, American College of Life Underwriters
Professor of Insurance and Commerce, Wharton School,
University of Pennsylvania
102

103
YOUR EARNING POTENTIAL
CAN BE TREATED AS
“ACCOUNTS RECEIVABLE”
ON YOUR BALANCE SHEET
OR
“BAD DEBTS”
IF YOU FAIL TO PROTECT IT!

How much is your car worth? How much is your house worth? How much do
you earn a year?
The chances are that the value of your car plus the value of your house
wouldn’t equal to one-tenth of the amount of money you are going to earn
from now until you reach age 65.
However, statistics show that most people have 80% to 90% of the value of the
cars and home insured, but have less than 5% of their earning power insured.
Such situation leads me wondering... “Why will a person worry about the loss
of a hunk of metal, a pile of brick and wood, but be unconcerned about his
own flesh and blood ?”
I operate the “guaranteed way” to restore this balance. Give me a call so we
can arrange a mutually convenient time for us to get together. I look forward
to be of service to you and your loved ones.
Human Life Value
Sample Pre-Approach Letter:
104

Family & Personal Financial NeedsFAMILY & PERSONAL FINANCIAL NEEDS
CASH NEEDS
$
Final Expense
Fund
$
Estate Settlement
Fund
I
R
S
$
Mortgage Cancellation
Fund
$
Education/Vocation
Fund
INCOME NEEDS
Years LIFE
$
Levels
of
Monthly
Income
Income Replacement
Fund
$
Retirement/Long-Term Care
Fund
$
Special Needs
Fund
105

DEATH…
is like the Thief in the
night.
can provide guarantees that no matter what
happens, your "Economic Value"
will never be stolen from your family.
106106

If you’re willing to give up
your life for your family,
why don’t you insure it for them?
107

You wouldn’t hesitate
to reach for this…
… if someone threatened
the lives of your loved ones.
Then why hesitate
to reach for this…
APPLICATION
FOR
LIFE INSURANCE
… when their future lives are threaten
every day you gamble living another day
without it?108

How to Find Out If You Have
Enough Life Insurance?
Will This Be Enough for Your Family to Maintain Their Present Lifestyle?
Present Coverage:
Cut in Half:
Drop One Zero:
Result:
Assumed Tax Bracket:
Net Annual Income:
$500,000
$250,000
$25,000
20%
$20,000
$500,000 at 5%
will generate this
“Pre-Tax” Annual
Income
Will provide
$1,667 of Monthly
Income
109

Here’s a Simple Way to Determine If It Is or Not
110
110

111
111

Minimum
Annual Income
Requirement
Maximum
Annual Income
Requirement
$60,000 $72,000
50,000 50,000
($10,000) ($22,000)
* Assuming 5%
Based on 5% rate of return, the present life insurance coverage of $1,000,000, can only
provide $50,000 per year “before taxes,” spending only the interest with the capital
remaining intact.
* NOTE: IMPACT OF INFLATION NOT TAKEN INTO ACCOUNT.
ADDITIONAL CAPITAL REQUIRED*
$200,000 $440,000
112
112

INTEREST RATE FACTOR
3% 400.00
4% 300.00
5% 240.00
6% 200.00
7% 171.43
CAPITAL SUM REQUIRED
for Replacement of “Monthly” Income
113
INTEREST RATE FACTOR
8% 150.00
9% 133.33
10% 120.00
11% 109.09
12% 100.00
EXAMPLE
Monthly Income Required: $5,000
Assumed Interest Rate: 5%
Factor: 240
Capital Required: $1,200,000*
* Taxes and Impact of Inflation not considered.

What are the Chances
You’ll Accumulate Required Capital?
Compounding Factor
for Series of
Equal Deposits
at Beginning of Year
@ 8% Interest
The Chances of Dying
Within
Given Periods
Year Factor
1
2
3
4
5
6
7
8
9
10
1.080 000
2.246 400
3.506 112
4.866 601
6.335 929
7.922 803
9.636 628
11.487 558
13.486 562
15.645 487
Year Factor
11
12
13
14
15
16
17
18
19
20
17.977 126
20.495 297
23.214 920
26.152 114
29.324 283
32.750 226
36.450 244
40.446 263
44.761 964
49.422 921
Year Factor
21
22
23
24
25
26
27
28
29
30
54.456 755
59.893 296
65.764 759
72.105 940
78.954 415
86.350 768
94.338 830
102.965 936
112.283 211
122.345 868
MALES FEMALES
1980 CSO Mortality Table
115

116
“There should be a law that
one can’t sue for more than
the amount of life insurance
one owns.”

Human Life Value
& Standards of Living
Luxury
Comfort
Necessities
Poverty
Charity
Earned Income
117

Human Life Value
This chart shows the various standards of living, from Charity and Poverty
at the very bottom... to the Comfort and Luxury levels at the very top.
Adjacent to the top two standards of living is a circle representing a family
and indicating that they are enjoying a comfortable lifestyle and some luxuries
in life. What holds the Family Circle up that level?
118

Human Life Value
Income, of course. It's the most valuable asset of a man and his/her family. The
money one earns in exchange for the time and effort spent working constitute
the thing that keeps his/her family's standard of living at a high level. The law
of gravity, however, holds that if nothing supports the circle at that level, it
should roll down to the bottom.
119

Human Life Value
It is evident, therefore, that only a person's earning power maintains his/her
family circle at a high plane, and when that block of income is taken away,
his/her family circle will simply have to roll down the hill. It will roll to the
very bottom unless it is stopped at some point along the way by another new
source of income to replace the value that was lost.
120

When a Breadwinner Dies,
a Family Suffers 3 Deaths:
The wife loses her husband
The children loses their father
The entire family loses his income…
the income he should have earned if
just lived.
Life Insurance cannot replace the father nor the husband
but it certainly can replace his income to make tomorrow,
the kind tomorrow he intended it to be.
121

Why Life Insurance
on the Wife
 To help pay off the mortgage
 To offset the extra estate tax
 To pay the cost of last illness
 To provide a charitable bequest
 To provide a “housekeeper fund”
 To provide a dowry for the daughter
 To pay for her last expenses in old
age
 To help with the children's
education
 To supplement her husband's
retirement income
 To help a son or a daughter in the
first, low-income years of marriage
 To supplement Social Security old
age income if her husband dies first
 To supplement Social Security after her
husband retires until payments begin
when she's 62
 To provide cash for a trip she'd like to
take when the children are grown
 To continue retirement income if
husband's funds runs out at his death
 To give a son or a daughter a
memorable wedding
 To offset loss of income tax savings
 To do something for grandchildren
 To help her husband retire earlier
 To give a son or daughter a start in
business
 To provide a safe investment
122

“The problem
about getting
born into this
world is that
we’ll never get
out of it alive.”
About the
Death
Penalty
123

THE DESIRE TO BE A BEING
WORTH REMEMBERING
One of the things that stands out in the minds
of family heads and in the hearts of those who truly loves
is the desire to be a being worth remembering.
“One thing is absolutely certain. We will be remembered.
Will it be for what we did or for what we failed to do?”
Charles Murray in his book, “Don't Talk To Me About Death”
124

A person can reach this objective
provided that he or she:
 Had saved regularly and
consistently over time
 Investments were successful
 Had sufficient time to
complete the plan
Disability
Death
INVESTING & LIFE INSURANCE
(The Stairs & Elevator Analogy)
$1,000,000
$800,000
$600,000
$200,000
$100,000
Objective:
$1,000,000
CAPITAL
10th Floor
$400,000
Elevator
$900,000
$700,000
$500,000
$300,000
10th Floor
Stairs125
Investments
“ACCUMULATION” “CREATION”
Stairs125

SAVING/INVESTING & LIFE INSURANCE
(The Elevator Analogy)
Let's suppose a man realizes that he needs $1,000,000 to provide adequate
income for his family in the event of his early demise or for himself if he
should live too long.
Being a loving, responsible father and husband, he is currently saving a part of
his income with the hope of ultimately creating this capital for such
eventualities. Furthermore, he hopes to have sufficient time in order to
complete his plans.
Translating the scenario visually, let's compare his goal of saving $1,000,000 to
that of reaching the 10th Floor of a building. Each floor representing $100,000.
He can reach the 10th Floor in two ways. He can either take the Stairs or
use the Elevator.
Using the “Stairs” to reach the 10th Floor can be compared to the goal of
saving systematically until the desired amount is reached. There is no
doubt that the goal can be reached provided he can save successfully,
will be able to invest successfully whatever had been saved and he has
sufficient time to complete his plans.
Under this method, however, if he should die prematurely or should get
disabled, his family will only receive whatever had been saved plus
interest earnings... never that amount as he had originally intended
to accumulate.
His other option is to use the “Elevator.” He only needs to press the 10th Floor button and no matter what happens
along the way, that elevator will always bring him up to the desired floor. He will not be a “defaulter.”
In the business of living, loving and maintaining accustomed lifestyle, one such kind of a vehicle is….
LIFE INSURANCE.126

Investments vs. Life Insurance
LIFE INSURANCEINVESTMENTS
You provide
the Capital
to earn Interest
You pay
the Interest
to create Capital
127

The Four Basic Rules
That Influence Financial Institutions’ Advice
Description
Examine the Financial Strategies You are Currently Using and
Compare Them with These Four Basic Rules
They want us to
give them our
money
They want us to give
them our money on a
regular basis and keep it
for as long as possible
and give us back as
little as possible
them our money on a
regular basis
them our money on a
regular basis and keep
it for as long as
possible
LEAP by Robert Castiglione
129

Where Will You Place Your Money?
Year
1
2
3
4
5
Rate
18%
32%
11%
(17%)
10%
Earnings
?
?
?
?
?
Value
?
?
?
?
?
Rate
10%
10%
10%
10%
10%
Earnings
?
?
?
?
?
Value
?
?
?
?
?
Scenario:
 You have an X amount of money and
have two kinds of instruments you
could put it into, and
 You have a crystal ball and have the
ability to know what the rate of
return would be for five years...
130

Where Will You Place Your Money?
How a $1,000 Deposit Grows at Compound Interest
Year
1
2
3
4
5
Rate
18%
32%
11%
(17%)
10%
Earnings
180
378
171
(294)
144
Value
1,180
1,558
1,729
1,435
1,579
Rate
10%
10%
10%
10%
10%
Earnings
100
110
121
133
146
Value
1,100
1,210
1,331
1,464
1,611
LESSON TO BE LEARNED:
In a volatile environment, one
bad year can offset many years
of exceptional gains and may
place the investor’s financial
plan in jeopardy.
131

Paying Too Much, Paying Too Little
“IT IS UNWISE
TO PAY TOO MUCH...
BUT IT IS WORSE
TO PAY TOO LITTLE.”
“When you pay too much, you lose some money... that is all.
When you pay too little, you sometimes lose everything,
because the thing you bought was incapable of doing the thing
it was supposed to do.
The common law of business balance prohibits paying a little
and getting a lot. It can't be done. If you deal with the lowest
bidders, it is well to add something for the risk you run. And if
you do that, you will have enough to pay for something better.”
- John Ruskin 1819-1900
A wise person once said…
“When you buy the very best, you only wince once?”
132

One Indisputable Fact
Your Money Pays Premiums
for Your Insurance
But Only Your Health Enables You
to Obtain It!
133

Remember
If People Don’t Buy the Concept,
All the Details are Meaningless!
If You Don’t Understand the Details,
You are Meaningless!
134

Waiters
135
The bride, white of hair, is stooped
over her cane, her footsteps
uncertain, need guiding.
While down the opposite church
aisle with a wan, toothless smile,
the bridegroom in a wheelchair
comes riding.
Now who is this elderly couple, thus wed. Well, you’ll find
out when you’ve closely explored it that there is that rare,
most conservative pair who waited “until they can afford it.”
Art Today

Synergia
Business Presentations
Joaquin “Duke” G. Wilwayco
Phone: (512) 799-2999
Email: dgwilwayco@aol.com
136

Life Insurance Agent’s Career

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