The close is the simplest part of the whole process if you have done one thing. Completed a Fact Finder and understood the feelings of the prospect. The sale is expected once a Fact Finder is completed and the need is understood.
Listed next is a copy of my presentation explaining the close and how I transcend to the sales.
This is the presentation explained in the previous lesson.
Summary of Estate Plan
Mr. and Mrs. Jim Jones
Thank you for the opportunity to work on your plan. I have looked at your personal situation, enclosed current reports and made suggestions I think may benefit your goals.
Your current retirement monthly income from social security and Boeing pensions is $ 3,400. You are currently removing $ 600 from your IRAs.
Your current income of $ 4,000 is the needed and desired goal.
You have a LTC policy with Bankers Unlimited Assurance Company with premiums of $ 230 a month. I have enclosed current ratings for you from AM Best and Company
Your IRAs are invested in the Delaware Family of Mutual Funds (now owned by Lincoln Financial Group). I have enclosed current reports for you.
Since your IRA accounts are important to you for retirement security, I suggest you transfer them to a guarantee Equity Linked Indexed Annuity.
I have enclosed the benefits you can enjoy with this change. It can be accomplished without any tax liability. (list of benefits)
Once I get to the “list of benefits” I say this. “Mrs. Jones, I have a list of benefits you could enjoy by making this change.” I then review the benefits with her and associate them with her personal situation.
Simple. I would then get the paperwork and ask her who she would like t name as her beneficiary.
Here is the list of advantages and disadvantages I use. Some remarks in red.
Advantage of Tax Deferred Annuities
1. Tax Deferred Growth. The interest earned is not taxed until it is touched. Your funds grow tax deferred. (no tax until touched, tax liability controlled by owner)
2. Safety. Annuities are among the most guaranteed and safe investments available. (safe and secure, if they already own an annuity, I explain about State Guarantee Association, here I tell them that annuities are the most boring product on the planet … good line, they always respond))
3. Avoid Probate. Annuities transfer to a beneficiary without the need for probate. (no fees direct to beneficiary)
4. Income. At any time, annuities can change from a savings or accumulation vehicle to an income vehicle. Annuities can provide an income that can not be outlived. (safe secure reoccurring income)
5. Estate Planning. Annuities are used in estate planning to help protect assets in the event of a long-term care situation.
6. Interest Income. Interest is available for income any time after the first 30 days of the deposit. The interest can be withdrawn monthly, annually or quarterly.
7. Death Benefit. Your beneficial always receives the full account value from the annuity immediately. (immediately and without need for probate)
8. Fees. No contract fee or sales contracts.
9. Comparison. Interest rate on annuities is usually higher than bank CD's or other fully guaranteed products. (historically for 90 plus years)
10. Access. Unlike bank CD's, you have access to your funds during the interest earning time period.
Disadvantages of Tax Deferred Annuities
1. Penalty for early withdrawal. During the guaranteed period, if you withdrew more than the contract allows, a penalty is imposed. This penalty can be voided by using the contract as an income (pension payout) or death. You can always withdraw 10% of the account value annually without penalty. (if you do not allow the insurance company to hold your money, you can not enjoy these benefits)
2. Early Access: Any access to funds in a tax deferred annuity before age 59 can can be subject to a tax penalty of 10%. (not for under 59 1/2 … they will say that is nt me, ends on upbeat note)