Mission: Serve, not sell. That we would impact everyone we meet...

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Mission: Serve, not sell. That we would impact everyone we meet positively by what we say and do, whether they are a group member, policyholder, fellow agent or staff. To be the best we could be, thought, word, or action.

Table of Contents Section I: AIL Concepts & Philosophy The Miracle of Hour Power for Union Labor 1 The Culture of Life Insurance 2 Enthusiasm…The Important Ingredient In Success 3 Group Marketing – Some Helpful Information 4 How to be a Professional 5

Section II: Training Training and Office Procedures 1 Classroom Training Outline 2 Success Checklist 3

Section III: Activity & Scheduling Sample Successful Schedule 1 The ABCs of Scheduling 2 Scheduling Tips 3 Clipboard Checklist 4 Door Knock Policy & No-Show Call Back Presentation 5 Creating More Appointments 6 Rebuttals 7 Telephone Presentation – Union 8 Telephone Presentation for Sponsors|Referrals & Globe Life Presentation 9

Section IV: Presentations Single-Family-Senior Benefits & Differences 1 Family Presentation 2-8 POS Presentation 9-11

Section V: Closing Concepts Closing Philosophy: Control, Common Sense & Desire 1-2 Closing Philosophy of ‘Affordability’ & ‘Thinking About It’ 3 Closing Philosophy – Feel, Felt, Found 4 Closes 5-8 Power Phrases 9

Section VI: Miscellaneous Modes of Payment 1 Rated Risk Presentation 2 Tips on Selling & Placing Rated Risks 3-5 FAQ and Passwords 6 Dos and Don’ts (Procedures) 7

Section VII: Quality Business & Profit Profit & Renewals; Quality Business 1 Lapsed Policy Presentation 2 Pre-paid Commission and Reductions 3

Section VIII: Schedules, Promotions & Bonuses AIL Compensation Plan 1 Arias Agency Promotions 2 Bonuses 3 Convention Qualifications 4 Successful schedules of agents, in and out of boot camp 5-6

Hierarchy and Contact Information State General Agent

Simon Arias [email protected]

Your Team

Your Name:

RGA:

MGA:

GA:

SA:

Staff Natalie Price Executive Assistant

[email protected]

Christine VanSuch Office Manager

[email protected]

Courtney Hemphill Administration

[email protected]

Maureen Risdon Administration

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Josh Lageman Director Of Quality Business & Lead Distribution

[email protected]

Main Office: Pittsburgh 12330 Perry Highway Suite 100 Wexford, PA 15090 Local: 412-235-2385 Fax: 724-719-2092

Office Address Telephone Fax E-‐mail Arias Agencies -‐ Pittsburgh 12330 Perry Highway

Suite100 Pittsburgh, PA 15237

412-‐235-‐2385 724-‐719-‐2092

Arias Agencies -‐ Erie 2820 West 23rd Street Suite 320 Erie, PA 16506

814-‐806-‐1540 814-‐528-‐5494

Arias Agencies -‐ State College 110 Regent Court Suite 101 State College, PA 16801

814-‐753-‐4465 814-‐867-‐3245

Arias Agencies – Wilkes-‐Barre CROSS CREEK POINT 1065 HIGHWAY 315 SUITE 203 WILKES BARRE, PA 18702-‐6941

570-‐208-‐9611 570-‐208-‐9613

Arias Agencies -‐ West Virginia Morgantown

2603 Cranberry Square Morgantown, WV 26508

304-‐931-‐4264 304-‐566-‐7131

Arias Agencies -‐ West Virginia Hurricane

3554 Teays Valley Road Suite 116 Hurricane, WV 25526

304-‐562-‐0660 304-‐562-‐0027

Arias Agencies – Maryland – Columbia 7125 Thomas Edison Drive Columbia, MD 21046

410-‐312-‐4732 410-‐312-‐4818

Arias Agencies -‐ FL -‐ Jacksonville

Corporate 1200 Wooded Acres Drive Waco, TX 76710

254-‐741-‐5701 800-‐433-‐3405 254-‐761-‐6400

[email protected]

Corporate -‐ Oral Specimen Clinical Reference Laboratory 8433 Quiuira Road Lenexa, KS 66100

Account #131900994

Exam One 866-‐491-‐5300 (Pittsburgh Area) 877-‐933-‐9261 (Outside Pittsburgh)

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I. The Miracle of Hour Power for Union Labor For almost six decades, American Income has demonstrated a total commitment to the American labor movement. As an AIL representative, you are privileged to work with union members throughout North America. It’s a privilege that must be re-earned every day -- our commitment is strict honesty in our dealings with the union community. It’s very important that we never lead anyone to believe we have any relationship to a union member’s local. We must never imply the union has any interest about whether or not the member buys insurance. State the facts as they are -- you are a member of Local 277 of the Office & Professional Employees International Union, AFL-CIO. It should go without saying, of course, that we must refrain at all times from any conduct or sales tactics that might bring criticism on you, your agency, or American Income Life Insurance Company. Always keep in mind that if the union member doesn’t have a need for an Hour Power Program, AIL does not want them to buy! Over the years, though, we have found that, in nearly every instance, the union member needs an Hour Power Program more than you need to sell it. We can promise riches to those who commit to the American Income philosophy -- not quickly, but surely. Face up to what can be if you will it to be. You can be consistently paid for many years for each original effort you put forth. Yes, there is a big bonus in your association with American Income because there are vested renewals. The selling profession has many blind alleys -- it always looks easier than it is and it appears; often that you can achieve success with little effort. This is not true. Success in selling requires a commitment to professionalism and an unrelenting pursuit for excellence. So many, who come into the selling business, have the attitude of “What’s the deal”? Give me the pitch”. At American Income, there is no deal and there is no pitch. We are talking about a profession -- one that begins with an understanding that you worry about servicing your client first and through that service, create for yourself an opportunity. First and foremost is that commitment to service. I would hope every American Incomer who is in the field would always have full knowledge of the Program Benefits and their Training Manual before you talk with the Members. In conclusion, now that you have made the decision to be an American Incomer, you should know what is expected. Therefore, there is a joining between you and the company. It can be a wonderful partnership. The company must do what it promises and it will. You must do what you promise and by virtue of signing a contract with American Income, you have indicated an acceptance of what we have outlined as requisites for being an American Income representative. All of this is accomplished in the spirit of good faith. We look forward to an association with you for many, many years. Our promise is to provide you with the training, products and marketing that will ensure success for you. It will surely come to all who promise themselves that they will be totally committed to accepting the discipline that success requires.

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I. The Culture of Life Insurance Your job is to teach all your prospects about life insurance because when they love their families and understand life insurance, they will buy. What you need to know are 2 things; our clients and insurance All people believe they are protecting their families at the present time. They believe they have enough insurance. They believe the insurance they have today will always be there. They are WRONG! The reason people believe something that is wrong is because they are not experts in this area; they have never been educated properly. They may have been sold insurance from another company at sometime. What they bought was a feeling of being covered and protected at that moment. But their needs have changed since then and the cost of what to protect has certainly gone up and will continue to go up with inflation as they continue to live.

When you teach people about life insurance, you could be the first person who ever spent time to teach them. They want to learn and they will appreciate it. No one has had a formal education in this area because they don’t ever think about this subject unless there is a tragedy.

People will only give serious enough thought about this subject (serious enough to do what they need to do) on 3 occasions in their lifetime! 1. When someone very close to them has a tragedy (or near tragedy)

2. When they personally have a serious change in their health, i.e. heart attack, cancer, diabetic, etc. The problem with this is if your health goes bad, you’ve lost the ability to get further coverage.

3. When someone like you comes out to see them.

Only in these times is the subject clear, vivid, and important enough to act on. They will not put it aside and act on it later; they will do everything but revisit this subject. They weren’t thinking about it before you came and they won’t think about it after you leave.

Now how often does personal tragedy or serious illness happen to anyone in his or her lifetime? Maybe 3 times at most. So you are performing an enormously important service by talking to them about something that their closest loved ones would never talk to them about.

About Life Insurance

Job life insurance is given to practically all workers. However, you don’t own your job insurance any more then you own your job. It will not pay;

1. After you retire

2. If you are between jobs

3. After a long illness leading to death Therefore, we all need to get outside insurance that we own. There are 2 kinds of life insurance that every company offers, term life and whole life. All others or that seems like others, are variations and investments. Term life is for what if you die earlier than expected; whole life is for when you die. The Value Truth is there is no nobler product to sell than Life Insurance. It protects your past (the sum of all your efforts to accumulate what you currently have) and your future (your ability to work and earn money and provide for your family in the future). There is nothing else that provides this security to your loved ones. So basically Life Insurance protects everything you are and everything you will ever be (economically) to your family.

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I. Enthusiasm...The important ingredient in success

A lot of great men have said enthusiasm was the single most important ingredient of their success. Certainly, enthusiasm is at the very center of selling success. Persistence, ability, brains and other attributes are ingredients to your selling success, but without enthusiasm even the greatest ideas or prospects become bogged down. You’ve witnessed the power of enthusiasm on the playing field. You’ve marveled at the impact an enthusiastic leader has on his people. Others will pay you the same heed, if you bring enthusiasm to your selling. To appreciate the benefits of being enthusiastic, pay attention to the top producers in your office. They are motivated and inspired. They are excited to the point of bursting about the products they sell. The thought of anyone not wanting their products is unbelievable and they simply can’t wait to see their prospects. Hugh Bell, a training authority and sales writer, presents a five-point formula for developing the kind of enthusiasm you need to become the kind of sales person you’ve dreamed of being. This is the formula: 1. Expose yourself to enthusiasts. Mr. Bell tells us we tend to emulate and imitate the

mannerisms, attitudes and habits of those with whom we associate. Therefore, if we associate with people who are successful, we up our potential of being successful.

2. Let yourself go. Author Bell tells us the only place a poker face is an asset is in a poker game. Anywhere else, our display of approval, admiration and enthusiasm are much better allies. When we are impressed with someone or something, the author suggests letting ourselves go and getting excited about it.

3. Be an actor. Our imagination could be our best friend or our worst enemy. Remember how as children we used to pretend to the point of thinking we were really doctors, princesses, etc., to the point where it became real in our minds? Why did we lose this, as we grew older? By going into role-playing...by acting out the part of an extremely successful sales person, the same as if we were center stage, we become so in real life.

4. Speak with emphasis and conviction. Hugh Bell writes ‘Practice speaking so that what you have to say sounds important and exciting.” He asks us to envision what our attitude and reaction would be if we suddenly learned about a million dollar inheritance. He suggests putting this same kind of excitement and enthusiasm into selling.

5. Be sincere. Without sincerity enthusiasm lacks foundation or real meaning. Insincere enthusiasm is a facade, which people see through easily. Really believing in what we do is something else...it sells. The author points out that without sincerity, real selling success will not be ours. One of the best ways to cultivate sincerity is to disassociate ourselves from criticism and faultfinding. There is a silver lining, as Hugh Bell tells us, in every situation. Finding it creates happiness and enthusiasm.

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I. Group Marketing – Some Helpful Information Labor Unions AIL’s programs are approved by a Labor Union’s Executive Board decision (officers voted in every three years by rank and file membership) AIL has a Labor Advisory Board that consists of over 40 International Presidents and National Leaders AIL is 100% Union (OPEIU Local 277) AIL works through over 20,000 Local Unions AIL donates millions of dollars each year to support America’s working people AIL enhances membership value by the provision of No Cost Benefits and much needed Benefit Supplements Associations Groups that are formed by people who are brought together by a common cause like Eagles, Elks, Veterans Organizations, and Cosmetologists. Members need to join and they pay dues like union members, but these ARE NOT unions. Associations are formed to take advantage of large numbers… for political clout on like-minded issues, to forward common causes and philanthropy, as well as gaining advantage for purchasing power, discounts etc. The fact that we are union may be of little interest to an association member. Although our major involvement with and support of the unions may also be of little interest, it may carry great weight in the fact that the unions work with us and no one else in these benefit matters. Remember that each union’s charge is only to do what is in the best interests of the membership and so choosing to do business with AIL is in alignment with that responsibility. Also each union has a benefits representative and a financial officer and AIL is the company of choice for over 20,000 unions. Understanding that one of the main jobs of the union is in negotiation of benefits, it speaks powerfully to anyone, union or not, supporter of unions or not, that AIL has been chosen by the unions to handle supplemental benefits. It should be pointed out that 20,000 unions couldn’t have all gotten it wrong. It should always be mentioned in the opening of any conversation with an association member that they, “should be very happy that their Association negotiated these benefits for them as typically we work with unions, over 20,000, and so now they can get in on the same benefits union members have had almost exclusively for over 50 years with AIL”. Also most Associations have pet charitable projects they support and promote. It would be helpful to be knowledgeable of these as it will give you a basis of knowledge and conversation with other members. Credit Unions Credit Unions are also NOT unions. They are ‘not for profit’ financial cooperatives. Our union involvement or the fact that we are union is not pertinent and should not really even be mentioned. The Credit Union is working with us as they believe our benefits will enhance member value, not because we are union. When one becomes a member of a Credit Union they become a share owner…they own part of the credit union. All profits of a credit union are passed back to the members in way of higher interest rates on savings, lower interest rates on loans and more and better services. So when AIL puts a credit union marketing program into a credit union it benefits everyone as it enhances member value, increases member awareness and increases interest in the Credit Union. The DAF Savings should not be used in a credit union as it competes with the Credit Union’s Saving Plans. We should always be promotive of the current Credit union’s Savings, Loans & Benefits. If the Credit Union is ACHable, and the member wishes to deduct their insurance premiums from their Credit Union Account, this is just like payroll deduction as typically the Credit Union has an arrangement with the employer where there is payroll deduction into their Credit Union Savings Account from their paycheck. In General An Agent should always strive to know as much as they can about every group they work with. Internet searches will provide much information that could put you in an expert status. Always ask the first members you see in a new group about their group. This will get the member to communicate and be more comfortable with you and give you much needed inside information that will be good conversation starters as well as ingratiate you with other members of the same group.

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I. How to be a Professional PREPARATION: In order to be a professional, you have to observe and be committed to the following: 1. Practice your Presentation everyday (20 minutes). 2. Increase your knowledge every day. Read or listen to something sales oriented,

attitudinal, spiritual every day. Read Proverbs (Bible) 3. Understand that a minimum of 8 Appointments a day is required for a full day’s work. 4. Make sure you follow the Quality section of this Manual. If you do not, you could cost

yourself retention percentage points which may cost you thousands of dollars in bonuses and lost commissions.

PERSONAL APPEARANCE Your appearance is everything. Little items such as using deodorant and mouthwash will make sure that you are always going to be welcome in any home. Never, of course, wear blue jeans or attire such as that. You are a professional and you must dress like one. Remember, your appearance is the first chance your prospect has to assess you. First impressions are lasting ones. Proper appearance and a friendly manner at the door ensures that you are an odds on favorite to have a receptive audience when you are making your presentation. BEFORE YOU ARRIVE AT HOME: • Make sure you presentation book doesn’t have any loose pages hanging out of it and

put all your materials in the order you will be using them. • Make sure you have a bold black ink pen (that works). • Do not bring extraneous materials into the home (i.e. policies, misc. insurance

documents, etc.) • Please always have all pertinent information to the groups you are working with (i.e.

the proper Pre-Approach Letter and group information sheet). BE ON TIME: This point cannot be emphasized enough. You are representing American Income Life and over 3,000 Sales Associates across the US. If you are running late for any reason, call the member before your scheduled arrival time, not after you are already late. People are usually willing to work with you if you communicate with them. By scheduling an appointment with them, remember you have asked them to give up some of their valuable time to meet with you. LISTEN TO EVERYTHING THE MEMBER SAYS: • Whenever a member interjects, make sure you listen to them and understand what

they are saying. • Answer all questions a client asks. Always be honest with your answers. If you don’t

know the answer to a question, say so, but offer to find out and get back to them.

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II. Arias Agency Training and Office Procedures Your Expected Activity in Training You must know entire presentation before entering classroom training. Please make sure you have the Presentation & Closing CD. First month of scheduling must be supervised by a manager. When you receive your first Lead Issue, you must review each lead with your manager. A/V tape must be completed and scored at a 7 (out of 10 points) or better and reviewed with your manager, before final release with the SGA or RGA. FIELD: You must be a part of 15 presentations and 5 sales and witness $2,000 ALP written. This must include at least 2 sponsor presentations and 2 sponsor sales. First day just watching, followed by a progression of days where your involvement will be increased till you are able to present on your own successfully. Before final release you must be seen making 5 full presentations and 2 sales. You must experience 4 in-office Critique Sessions (with your MGA) within your 1st 2 weeks in the field by yourself. Your Expected Activity after Training 30 Appointments a Week 15 Presentations a Week $2,000 ALP (minimum) submitted every week Minimum $100 of ALP average produced per Group Lead used You must average gaining 2 Referral Leads for every Group Lead used weekly. Minimum 30% of presentations each week are Referral Presentations from very first week 5 to 7 Door Knocks a Day (see door knock page procedures) Must put your presentation on film every month to be reviewed and approved by your manager Office Procedures Paperwork must be turned in on Thursdays by 10:30 AM. Leads coded daily. Monday meetings are from 8:00 AM - 2:00 PM. Anyone that doesn’t have 2,000 turned in by Thursday meets Friday morning from 8:00 AM – 9:00 AM for a workshop. Anyone that Blanks on Tuesday will attend a workshop on Wednesday at 8:00 AM or anyone that Blanks on Wednesday will attend a workshop on Thursday at 8:00 AM. Business attire must be worn in the office during business hours unless otherwise stipulated by management. No Non-business Sites (Especially Adult Only) permitted on any Computer. No Negativity, lewd activities or language. There will never be any offensive conversation or joking permitted on the premises.

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CLASS ROOM TRAINING OUTLINE Always be in office ½ hour prior to training. Check and make sure you have all materials needed, for example; pens, pencils, paper, calculator, policy owner service file as well as your Training Book. Turn cell phones off while in class. Week 1 MONDAY (9:00 AM – 4:00 PM) Orientation, Overview, Control, Presentation

THURSDAY (10:00 AM – 4:00 PM) eApp/Laptop Training & PR Training

FRIDAY (9:00 AM – 3:00 PM) Needs analysis, Assuming the Sale, Addendums & Paperwork Week 2 MONDAY (9:00 AM – 4:00 PM) Referrals, Union –vs- Association, Scheduling, Role Play|Phones THURSDAY (9:00 AM – 4:00 PM) Retention, Staying Above Bonus & Solidification FRIDAY (9:00 AM – 12:00 PM) Training Checklist, Q & R, Solidification, Singles|Seniors, Importance Of Bootcamp, Objections & Activity

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II. Success Checklist Check each item on the checklist as you complete it each day. If you complete each every day, you will write a minimum of $2,000 ALP! Success in this business only requires following our proven workable system. € I got plenty of rest (6-8 hours per night) each night € I read or listen to something uplifting and positive every day

€ I set 30 solid appointments for the week

€ I sat down with 15 people this week

€ I sat down with at least 30% referrals (of the fifteen)

€ I studied my presentation and closes at least 1 hour per day this week

€ I prayed each day

€ Prior to each appointment I have a positive mental attitude and see myself

succeeding

€ While I am working (phone/field/studying) I block out all other distractions

€ When I’m in a house I care about and serve the people If you check off every item on the checklist, success is yours. However, if you cannot say that you have accomplished all of these, then you have no one to blame but yourself. If you have completed all of these items and are still not writing over $2,000 per week, then you need to get with your manager and problem solve. More than likely it is one of these: € Your in-home or phone presentation is off-script € You are displaying a negative attitude (you may not even know it) € You are selling and not serving in a house and the people can sense this

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III. Sample Successful Schedule

Monday: Turn in used leads, AM Meetings, Set

appointments for Tuesday & Wednesday Tuesday: 8 Appointments Wednesday: 8 Appointments (Paper Business due at 9:00 AM) Thursday: Turn in all business by 9:00 AM Set appointments for Friday & Saturday Friday: 8 Appointments Saturday: 8 Appointments Activity: 32 Appointments 16 Presentations Results: 5 Sales $2500 ALP Income: Pre-paid Commission Check: $1000 15% Bonus Check: $375

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III. The ABC’S of Scheduling

A = Appointments Schedule a minimum of 8 per day with a one hour leeway. IE: 1:00-2:00, 2:00-3:00

B = Bridges Tentative appointments set over 2 other appointments IE: between 1:00-3:00, 3:00-5:00

C = Cancel, Lapses, or Rated Polices Busy work that must be scheduled to guarantee good quality business

D = Door knocks Leads that are either hard to get a hold of, don’t have good phone numbers, or that are close by. When you’re in the field you should attempt to make a presentation before scheduling an appointment.

E = Eat Right & Exercise You need to keep your energy high, so pack good healthy foods, and avoid fast food. Do not plan a lunch or dinner as you will find time to do this between appointments, always keep mouthwash or gum for cleanliness. Take Vitamins and extra ‘B’ everyday. Have an exercise program that allows for 30-45 minutes weights & cardio at least 3 times per week.

F = Floater Setting a doorknock for another evening but telling them that if you have time you will drop by tonight to get them in

G = Go Back You should always go back to the people that stood you up earlier in the day and attempt to make a presentation or reschedule for another day. Do not go to sleep until you connect with every stand up.

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III. Scheduling Tips 1. Schedule 5 or 7 door knocks on a map before you leave home every day. 2. Keep going back to your stand-ups until they are home…at least make sure that you

reschedule a preset appointment on the door hanger. 3. On your sales, tell the people that one of your jobs is to drop off all the sponsor benefits while

you are in the area. They could help you by calling a couple of the people they sponsored and set an appointment for you. They could even set the appointment that evening if you have time and they (the sponsored) are in the area. Have the people call right then while you are in their home. This is a great way to get an extra couple of deals for the same night!!

4. Every Saturday, bolster your appointments by waking up early and start calling your leads at 8:00 AM. At 8:00 AM on Saturday, everyone is home. If you make calls for about ½ hour, you will be able to set an extra 5 to 7 appointments; they should all stick, as they were just set. Use a shortened phone presentation…“Mary, I am calling to see if I could drop off your benefits through the union at about 10 to 10:30…I’ll need you and your spouse to be home as I need to have you both sign and of course I’ll spend a few minutes to explain how they work.” >>hang up>> next call >>hang up>> next call…before you know it you’ll have as many appointments as you want.

5. You should always have a planned schedule written up for yourself on a clipboard and union letters underneath. Your schedule should not only include your set appointments but planned door knocks, phone calls and service calls needed to be done that day.

6. Set your appointments with an Hour leadway...6:00 PM to 7:00 PM or 8:00 PM to 9:00 PM, etc.

7. Do not set retirees or people who are not working in prime time hours (5:00 PM to 9:00 PM). These people should be set in times that are hard to get such as l:00 PM to 4:00 PM. Ask if the member has a day off that week so again, we could set up in non-prime time hours. Make sure, of course, the spouse will also be there.

8. Attempt to set the appointment on the first call. Avoid Callbacks. They are killers of time and the member’s interest declines in exact proportion to the number of times he is called on the phone. If they can’t set for the day you want, then try the next day or the next day. Set them sometime! Take control and help them move their schedule around if need be. What we are doing is IMPORTANT BUSINESS for them!!

9. If the member was called on before and not seen yet (maybe even had an appointment), they are still a good lead (as they have not been seen yet). They were probably returned by the last agent in the area because he was unable to make or missed connections with them for a presentation. Treat these leads just the same; with the exception of understanding that they have already been through the phone presentation before with another agent, and you should, therefore, shortcut your phone presentation and just get to the point of the appointment time ASAP.

10.BRIDGE APPOINTMENTS – A MUST: After every 2 or 3 fixed time appointments, you must set a BRIDGE. A bridge is an appointment that is set over a 2 hour time period that bridges over your fixed time appointments. An example is, “folks, I will be in your area dropping off these benefits between 5 to 7 PM…will you be home during these times so that I could meet with you and get this done? OK I will see you sometime between 5 to 7 PM”. Several BRIDGES will be needed for every workday to ensure that you always have a place to go.

11.You should have your appointments bunched up. You should not have an appointment at 11,1,3,5,6,8. By keeping your appointments bunched you will cut your field time down and you will stay busy. Almost any top producer will tell you that this is one of the keys to success. You want to take the momentum from one house right into another. You don’t want to find yourself having down time in prime time and getting fatigued.

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III. Clipboard Checklist

Daily Schedule • 8 – 10 Appointments (Name, Address, Tele #, Group #) • 5 – 7 Door Knocks (Name, Address, Tele #, Group #) • All other calls and activities listed to accomplish that day

Maps or GPS • Map quest all appointments, door knocks and other planned activity • Or pre-program them in your GPS device

Door Knock Letters • Copies of door knock group letters with AD&D certificate stapled to

take to the door

Weekly Schedule • You should keep your schedule on your clipboard so if a door knock

wants to schedule, or an existing appointment want to reschedule you will always know your availability

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III. Door Knock Policy 1) Park in driveway or on street in a spot visible to homeowner. 2) In a gated community call or buzz in only. Do not follow other residents. 3) Use doorbell if available. If door knocking, do not pound. 4) Stand back to be viewed by occupants. Do not crowd doorway. 5) Have the card or card copy, along with certificate, in plain view. Have your

business card available and in view also. 6) If field training, do not have more than one person walk to the door. “Hi Mary, I’m John Smith with American Income Life Insurance Company (extend business card) and I am following up with you on this (show copy of reply card if available or show certificate) that you sent in with the other members of (Name of Group). We have not been able to reach you or your spouse by phone, so we thought it best to stop by to see when it would be convenient for you and your husband to sit down and review the benefit materials? Or if this is a good time, we could go over the program right now?” No-Show Call Back Presentation When an agent has a “no show” and has completed his/her calls well before 8:30 PM, ask the client you are with for permission to make a phone call. Most will say that it is fine. Call the “no show” and use the following script to gain additional presentations: “Hello is this John Smith?” (Yes, it is.) “John, this is _______ with American Income. We had an appointment between 5:00 and 5:30 PM this evening. I am sure something important must have come up on your part, and that’s not a problem…Is Mary home?” (Yes, she is) “Good, I am finishing up with another union member. I will see you folks in about 10 minutes.

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III. Creating More Appointments You should be able to generate an additional 20 or more appointments a week plus an extra 3 or 4 more sales by doing the following. This keeps your phone time to a minimum and ensures you always have PLENTY OF SALES EACH WEEK! PR – Response to people over the phone that express a desire not to be seen. “OK, that’s fine…I’ll just drop off the package when I am in the area.” If they agree, simply drop by when you are in the area. They are usually much nicer in person and a sale! No Shows – Whenever anyone No-shows you, keep going back till you get the presentation in that day. If they are not home after multiple attempts, simply rewrite a future appointment on a door-hanger and leave with your telephone # in case this time is not good for them. Most people will not bother to call and will be there for the next time. Sales = For every sale made for the week, ask if they would call the people they referred in order to help you set a time to drop off their benefits. They could do this while you finish your paperwork…plus… Give each sale 5 Return Cards to give to people they work with. Say the following… “You know we are having a problem. A lot of people from your group did not get cards…you know changed addresses etc. Also some did not know what it was and threw their card away…but now want to be seen. We have no idea who these people are. The way we are correcting this is to have each person we see give us 5 people they work with and I’ll put their name on these cards and if you would give them to these people, it would sure help. This way if they are one of the people that were missed, they could return their card.” Please make sure you highlight your name on these cards so the staff gives them to you. No Sales – Do the ‘Columbo’ Routine: Say to the people as you are getting up to leave…“Oh, by the way, they are coming out with a Mortgage Protection Plan (Retiree Life Insurance, Head Start, Accident, Cancer Plan, whatever). Do you want me to send you the information when I get it? OK…well…In fact they have me out here next Tuesday, I’ll drop it off on my way to work (on my way home from work)”. OK? Chances are when you stop by with this information, they may have thought about the other plan and are ready to enroll. This is a good way to generate another 3 or 4 appointments for the next week and a few more sales for sure!

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III. Union/Association/Credit Union Lead

Hello, is (Member name on card) there? This is (Agent Name) with American Income Life Insurance Company. We prov ide the $X,000 Acc identa l Death and D ismemberment benef i t fo r the members o f (Union Local/ Association/ Credit Union). They sent you a letter a while ago about this and you returned a little card. (Remember from time to time there may not be an actual reply card, but an online response.) Well anyway, your benefit package is in and I need to verify what you put on that card, so we can get your benefit package out to you. I'll get you off the phone real quick.

First thing you put down is your address (Recite the address). Is that correct? Secondly, you put down your date of birth as (Recite the date of birth) .Then you put down (Insert beneficiary), as your beneficiary, is that correct?

Well, just as that letter stated my job is to drop off your benefit package and explain all the benefits to you as well as get a signature on the officer report form that goes back to your (union local/association/credit union). Now, I will be out in your area (day) and (day) delivering these benefits.

What shift are you on? What shift is Mary on? So what time do you get home usually? What time does Mary usually get home? (Then offer 2 dates and 2 times) Which time is going to work better for you (and your spouse)?

Great! Can you please grab a pen and paper? Please write down my name and number. This is (Agent Name) and ______ is my phone number and I’m with American Income. I also need to give you a confi rmation number. (Read confirmation number and then tell them of the date and time of your appointment.)

Perfect! I will see you on (Tell them the date again and make sure the wife or husband will be there as well). Now (Member Name), I am driving from (City), is there ANY reason why (insert date/time) would not work for you or your spouse? Ok great! Do me a favor and put the confirmation number as well as t h e appointment information on y o u r fridge as a reminder that I am coming. Now my GPS will usually get me in the general area, but is there anything that will make your house stand out from the others? What color is your house? What color is your car? Ok perfect, thanks! I look forward to seeing you and your husband/wife on (insert date/time again)! I want to let you know it’s possible I may be running a few minutes late because of others I’ll be seeing (day), but if it looks like more than a half hour or so, I’ll call you…ok? Again, my name is ______ and I am with American Income. Take care and I look forward to meeting you guys! Note: When you get a recording, you are expected to leave this message on the 1st night you attempt a call: Hi, my name is _____ from American Income Life Insurance Company, and I’m calling you to let you know we have received your reply card and will be in the neighborhood the next few days delivering the benefit package you requested that includes a (X,000) Accidental Death and Dismemberment benefit. The number I can be reached on is my personal cell (#) or by contacting my office at (# Agency office). I look forward to talking to you and will continue to try and reach you.

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III. POS

Hi (Name), this is (Agent Name) from American Income Life Insurance Company, your life insurance company. How are you today? The reason I am calling today is I have been assigned as your servicing Agent and I’ve been asked to call you to…well, first introduce myself, but also to verify a couple of things. I have your address as _________. Is that still correct? Also, is there a second telephone number we could list for you in your file……just in case? Ok great….as a service to our policyholders we would like to schedule a time to review your policy with you and answer any questions you may have. It doesn’t take long and I would like to meet with you and your spouse to review your existing coverage and what it provides for you., do a no cost computerized Needs Analysis to make sure your coverage is still current and also provide you with some benefits to thank you for being a policy owner with American Income Life. Ok, well I'm actually going to be out in your area (day) and (day). What time do you usually get home from work? Ok, I have (day) from (time) to (time) or (date) from (time) to (time), which one works best for you? (Confirm if they have a spouse or significant other.)

Ok, go ahead and grab a pen and paper, I need to give you my information real quick. First, please write down my name and number. My name is (Agent Name) and my phone number is ________ and I am with American Income. Also, write down that I will be there on (day) from (time) to (time). Go ahead and stick that up on your fridge so you don't forget about me coming.

Now my GPS gets will usually get me in the general area, but is there anything that makes your house stand out from the others? What color is your house? What color is your car? Also, if you could have your AIL folder and policies sitting out so I can go th rough them with you and if your spouse can be there as well.

Ok (Name) I look forward to meeting with you (and spouse) on (day) from (time) to (time).

I want to let you know it’s possible I may be running a few minutes late because of others I’ll be seeing (day), but if it looks like more than a half hour or so, I’ll call you…ok? Again, my name is ______ and I am with American Income.

Take care and I look forward to meeting you guys!

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III. Child Safe Referral

Hi (Name of Referral)! This is (Agent Name) with American Income Life Insurance Company and I’m calling because your (sponsor’s relationship – brother, sister, friend, etc.) wanted me to give you a call. Did (sponsor’s name) let you know that I'd be giving you a call by chance?

NO - Aw, ok I apologize for having some random person calling you. I must have gotten a hold of you before they had the chance to.

YES or Continue.... Okay, let me explain the importance of my call. (Sponsor’s name) sponsored you to receive a Child Safe Kit for each one of your children/grandchildren. Are you familiar with how the Child Safe Kits work through American Income Life? Well as you know the worst day in a parent’s life is the day something happens to their child, wouldn’t you agree? (WAIT FOR RESPONSE) Well in the event your child becomes missing, the information in this kit can be helpful to the authorities. (Sponsor’s name) knew this would be beneficial for your children/grandchildren. The main reason for my call is because it is IMPORTANT I get these Child Safe Kits to you.

What shift are you on? What shift is (spouse) on? So what time do you get home usually? What time does Mary usually get home? (Then offer 2 dates and 2 times) Which time is going to work better for you (and your spouse)?

Ok awesome, go ahead and grab a pen and paper for me real quick so I can give you a confirmation number for your kits. Your confirmation number is ______. Underneath that go ahead and put down that my name is (Agent Name) and my phone number is ______ and I’m with American Income. I'll be meeting you on (date) between and _______ a.m. /p.m. I do need to make sure I have your current address. It’s ________. Is that correct? Now (Referral Name), I am driving from (city), is there ANY reason why (insert date/time) would not work for you or your spouse? Ok great! Do me a favor and put the confirmation number as well as t h e appointment information on the fridge as a reminder that I am coming. Perfect! I will see you on (Tell them the date again and make sure the wife or husband will be there as well) .

Now my GPS will usually get me in the general area, but is there anything that will make your house stand out from the others? What color is your house? What color is your car? Ok perfect, thanks! I want to let you know it’s possible I may be running a few minutes late because of others I’ll be seeing (day), but if it looks like more than a half hour or so, I’ll call you…ok? Again, my name is ______ and I am with American Income. I look forward to seeing you and your husband /wife on (insert date/time again)! Take care and I look forward to meeting you guys!

[19]

III. Child Safe Lead

Hi (Name)!

This is (Agent Name) with American Income Life Insurance Company a n d I ’m calling because you (or your spouse) recently requested a no cost Child Safe Kit at (Event or Location). Great news, your Child Safe Kit(s) came in and I just need to verify the information you wrote down on the card so I can get your kits out to you and I'll get you off the phone real quick... The Child Safe Kits are at no cost to you and it is my job to drop them off and explain how they work and go over other available benefits. We weren’t sure though if you ordered them for your children or grandchildren. (pause)

Now you listed your address as (Recite address). And you requested ( # ) of kits? And you just listed yourself on the card; do you have a spouse or significant other living with you?

Now, I'm going to be out in your area over the next couple of days delivering Child Safe Kits to others who h a v e requested them. What shift are you on? What shift is (spouse/s ign i f ican t o ther ) on? So what time do you get home usually? What time does (spouse/s igni f icant other) usually get home? (Then offer 2 dates and 2 times) Which time is going to work better for you (and your spouse/significant other)?

Ok awesome, go ahead and grab a pen and paper for me real quick so I can give you a confirmation number for your kits. Your confirmation number is _____. Underneath that go ahead and put down that my name is (Agent Name) and my phone number is ______ and I’m with American Income. I'll be meeting you on (date) between_____and ____a.m./p.m.

Perfect! Now Joe, I am driving from (city), is there ANY reason why (insert date/time) would not work for you or your spouse? Ok great! Do me a favor and put the confirmation number as well as the appointment information on y o u r fridge as a reminder that I am coming.

Now my GPS will usually get me in the general area, but is there anything that will make your house stand out from the others? What color is your house? What color is your car? Ok perfect, thanks! I want to let you know it’s possible I may be running a few minutes late because of others I’ll be seeing (day), but if it looks like more than a half hour or so, I’ll call you…ok?

Again, my name is ______ and I am with American Income.

I look forward to seeing you and your husband/wife/significant other on (insert date/time again)! Take care and I look forward to meeting you guys!

Note: When you get a recording, you are expected to leave this message on the 1st night you attempt a call: Hi, my name is _____ from American Income Life Insurance Company, and I’m calling you to let you know we have received your reply card and will be in the neighborhood the next few days delivering the child safe kits you requested. The number I can be reached on is my personal cell (#) or by contacting my office at (# Agency office). I look forward to talking to you and will continue to try and reach you.

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III. Co-Worker Referral

Hi (Name of Union Referral)!

Hi, this is (Agent Name) calling with American Income L i fe Insurance Company. We prov ide the $X,000 Acc identa l Death and Dismemberment benef i t fo r the members o f (Union). We recently sat down with your coworker _________. Did they let you know that I would be calling?

NO - Oh ok, well let me fill you in on why I am calling. We recently sat down with (Coworkers Name) in his/her home and got him/her all set up with his/her American Income benefits and he/she wanted me to make sure that you had also received your $X,000 Accidental Death and Dismemberment Certificate of Coverage as well. Do you know if anyone has ever come out to see you to deliver your certificate of coverage and designate your beneficiary?

YES - Ok great! Do you know if anyone has ever come out to see you to deliver your certificate of coverage and designate your beneficiary?

(Depending on the above response)

NO - That's exactly why I am calling. Your co-worker thought you may not have had the opportunity.

YES - Ok great! Do you know how long ago that was? Were you able to take advantage of any of the insurance benefits available? (If they did and it was over 6 months ago, schedule them as a POS.)

I'm going to be in your area over the next couple of seeing other members. What shift are you on? What shift is Mary on? So what time do you get home usually? What time does Mary usually get home? (Then offer 2 dates and 2 times) Which time is going to work better for you (and your spouse)?

Great! Can you please grab a pen and paper? I need to give you some information. Please write down my name and number. This is (Agent Name) and _____ is my phone number and I’m with American Income. (Tell them of the date and time of your appointment and spell out your name.) Perfect! I will see you on (Tell them the date again and make sure the wife or husband will be there as well). Now (Member Name), I am driving from (city), is there ANY reason why (insert date/time) would not work for you or your spouse? Ok great! Do me a favor and put the appointment information on y o u r fridge as a reminder that I am coming. Now my GPS will usually get me in the general area, but is there anything that will make your house stand out from the others? What color is your house? What color is your car? Ok perfect, thanks! I look forward to seeing you and your husband/wife on (insert date/time again)! I want to let you know it’s possible I may be running a few minutes late because of others I’ll be seeing (day), but if it looks like more than a half hour or so, I’ll call you…ok? Again, my name is _______ and I am with American Income.

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Take care and I look forward to meeting you guys!

III. Lapsed Policy

Hi (POS Name)! This is (Agent Name) with American Income Life Insurance Company, your life insurance company. How are you doing this evening (or today)?

Awesome Now (POS Name), the reason I'm giving you a call today is because I'm with customer service and your policy has come across my desk as a lapsed policy. The reason I am calling is because sometimes people don't realize their policies have lapsed. I can help you apply for reinstatement. I'm actually going to be out in your area over the next two days servicing other policyholders.

What shift are you on? What shift is Mary on? So what time do you get home usually? What time does Mary usually get home? (Then offer 2 dates and 2 times) Which time is going to work better for you (and your spouse)?

Great! Can you please grab a pen and paper? I need to give you some information. Please write down my name and number. This is (Agent Name) and _____ is my phone number and I’m with American Income. (Tell them the date and time of your appointment and spell out your name.)

Perfect! I will see you on (Tell them the date again and make sure the wife or husband will be there as well). Now Joe, I am driving from (city), is there ANY reason why (insert date/time) would not work for you or your spouse? Ok great! Do me a favor and put the appointment information on your fridge as a reminder that I am coming.

Now do you still live at (Recite address)? Now my GPS will usually get me in the general area, but is there anything that will make your house stand out from the others? What color is your house? What color is your car? Ok perfect, thanks!

I look forward to seeing you and your husband/wife on (insert date/time again)! I want to let you know it’s possible I may be running a few minutes late because of others I’ll be seeing (day), but if it looks like more than a half hour or so, I’ll call you…ok? Again, my name is ______ and I am with American Income. Take care and I look forward to meeting you guys!

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III. Discount Card Renewal

Hello is this (Name on Card)? Hi this is (Agent Name) with American Income Life Insurance Company. The reason I am calling is you have a Partners health services discount card with us. It's the card that provides discounts on p r e s c r i p t i o n s , v is ion , hearing and chiropractic care. Now the purpose of my call is to advise you that your one-year enrollment period has expired and I’d like to book a brief appointment to come out and re-enroll you in the program at no cost. Are you working or retired? Do you still live at (Recite the address)?

We're going to be in your neighborhood over the next few days seeing others. What shift are you on? What shift is Mary on? So what time do you get home usually? What time does Mary usually get home? (Then offer 2 dates and 2 times) Which time is going to work better for you (and your spouse)?

Great! Can you please grab a pen and paper? I need to give you some information. Please write down my name and number. This is (Agent Name) and _______ is my phone number and I’m with American Income. (Tell them of the date and time of your appointment and spell out your name.)

Perfect! I will see you on (Tell them the date again and make sure the wife or husband will be there as well). Now (person’s name), I am driving from (city), is there ANY reason why (insert date/time) would not work for you or your spouse? Ok great! Do me a favor and put the appointment information on your fridge as a reminder that I am coming.

Now my GPS will usually get me in the general area, but is there anything that will make your house stand out from the others? What color is your house? What color is your car? Ok perfect, thanks!

I look forward to seeing you and your husband/wife on (insert date/time again)! I want to let you know it’s possible I may be running a few minutes late because of others I’ll be seeing (day), but if it looks like more than a half hour or so, I’ll call you…ok? Again, my name is ______ and I am with American Income. Take care and I look forward to meeting you guys! Rebuttals:

"I don't use the card." "I don’t remember receiving a card." "I don’t see any value and don’t want it."

Well that is why I am calling; the program is continually being updated. We also have Child Safe Kits, for your children or grandchildren and Identity Theft information. (If has children/grandchildren) How many Child Safe Kits should I bring?

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III. Referral

Hello (Sponsored Person)? This is (Agent Name) and I am with American Income Life Insurance Company. I recently sat down with your (Relation and Name of Sponsor) about some o f the benefits provided to members of ________ through American Income. (Name of Sponsor) part of these benefits was the ability to sponsor their close, personal friends and family with some of the benefits. So you must be pretty close with (Name of Sponsor)? Did they contact you about this?

YES - Awesome! What did they tell you?

NO – Ok, I apologize for having some random person calling you. I must have gotten a hold of you before they had the chance to.

I promised (Name of Sponsor) that the next time I was in the area I would call you to deliver these benefits as soon as possible. I'm going to be in your area on (day) and (day) seeing others.

What shift are you on? What shift is Mary on? So what time do you get home usually? What time does Mary usually get home? (Then offer 2 dates and 2 times) Which time is going to work better for you (and you r spouse)? Ok when I spoke to (Name of Sponsor) he said you lived in (city) but I will need your physical address so I can make it out there. What is your address?

Great! Can you please grab a pen and paper? I need to give you some information. Please write down my name and number. This is (Agent Name) and ______ is my phone number and I’m with American Income. (Tell them the date and time of your appointment and spell out your name.)

Perfect! I will see you on (Tell them the date again and make sure the wife or husband will be there as well). Now Joe, I am driving from (city), is there ANY reason why (insert date/time) would not work for you or your spouse? Ok great! Do me a favor and put the appointment information on your fridge as a reminder that I am coming.

Now my GPS will usually get me in the general area, but is there anything that will make your house stand out from the others? What color is your house? What color is your car? Ok perfect, thanks!

I look forward to seeing you and your husband/wife on (insert date/time again)! I want to let you know it’s possible I may be running a few minutes late because of others I’ll be seeing (day), but if it looks like more than a half hour or so, I’ll call you…ok? Again, my name is ______ and I am with American Income. Take care and I look forward to meeting you guys!

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III. Rebuttals

Q: How long is this going to take? A: It usually takes 15 to 30 minutes, but it depends on the number of questions you have.

Q: Why can't you mail it to me?

A: (If AD&D Benefit) This is what we did originally; we mailed you a letter of explanation. Now my job is to deliver your benefits, explain them to you, and get your signature on the beneficiary portion of the certificate of coverage. The signature helps us ensure the benefits are paid to your beneficiary and not your estate, which may be taxable. B: (If no AD&D Benefit)…Now my job is to deliver your no cost benefits, explain them and be sure you have no questions. It’s a service we provide and while there we can review other benefits available to you.

Q: Why does my spouse need to be there?

A: When something happens to you, your spouse is the one we will be dealing with. They need to understand how the benefit works and how to make a claim.

Q: Are you trying to sell me insurance?

A: My job is to deliver and explain your benefits. As the letter you received said, there are other insurance programs that are available and we offer a no cost computerized needs analysis which provides great information, but the option is of course yours.

Q: How much will this cost?

A: The benefits you requested are provided at no cost. My job is to deliver your benefits and explain them to you.

Q: I'm not interested.

A: Not a problem, but I'll be happy to deliver the no-cost benefits and explain them to you, so you have them for your records. This way you'll be able to designate (Name) as your beneficiary and start using the Health Services Discount Card right away! (Use this reference only if AD&D/Discount Card provided).

Q: I don't remember any card.

A: That's exactly why I'm calling. There are so many who sent back their card, it has taken us awhile to get to them all. However, I will be sure to bring a copy of the card with me, which will help refresh your memory.

**Remember, after you respond to a rebuttal, go right back to the script wherever you left off!

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III. Rebuttals for Child Safe Kits I already have a Child Safe kit:

When was it last updated? ..........They recommend updating them every 6 months! Especially for young kids.

Mail it to me: We have mai led them out in the past , but we have found that not everyone was filling them out correctly or at all. My job is to deliver your Child Safe Kit(s), explain how to complete them and be sure you have no questions. It’s a service we provide and while there we can review other benefits available to you.

How much does this cost?

The Child Safe Kits are provided at No Cost. My job is to deliver your Child Safe Kits, explain them and be sure you have no questions. It’s a service we provide and while there we can review other benefits available to you (Back to script)

Call me back:

Oh ok, I'll get you off the phone very quickly here. I have time between ____ and ____ on (day), which one would work best for you so I can drop these off and review other benefits available to you?

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III. Globe Life Presentation Globe Leads are great because these are people who have initiated a contact or a policy with our sister company, Globe, in order to procure more insurance. Either they did not fully follow through the process which is typical or they did and then lapsed their policy. Either way they are interested in more insurance but do not yet have. Hello is _________ there? Hi, this is ___________ with American Income Life. We are the Service Division of Globe Life Insurance Company. Use appropriate paragraph INQUIRY Anyway you must have responded to a TV advertisement or returned a card from the mail for information. The Company responded to you but received no reply. So they wanted me to drop off the benefits and information to you personally. You have some no-cost insurance as well as a no-cost family discount package coming to you. I need to drop this off to you, have you sign for it and answer all your questions. LAPSE Anyway you had an insurance policy with Globe Life and apparently it lapsed. The Company wanted me to contact you and explain the options you have and didn’t know about. First you have an insurance policy extension for a year at no cost and then you could continue it for $1 a year. You also have a no cost family discount plan that you never took advantage of. It is my job to drop these off to you, explain it and have you sign for it and answer all your questions Now I can get those benefits out to you on (day/time) or how about (day/time)? OK I will see you then and I will need your spouse there as well, so could you be sure to tell her/him.

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IV. Single/Family/Senior Differences and Changes Single (no children or financial responsibilities)

Family (married or single with children)

Senior (anyone Age 55 - 80)

Whole Life explained as Permanent Cash Value Life Insurance

Whole Life explained as FOC (Freedom of Choice Funeral Benefit)

Whole Life explained as FOC unless person already has Pre-Paid Funeral Plan then is explained as Life Insurance (Use SR 10 if health Issue)

10 RC Rider (Term explained as Life insurance ‘Kicker’ – protects future options and insurability for marriage and children)

10 RC Rider (Term explained as Paycheck Protection)

Term to 100 (SS Supplement) Explained as additional monthly income to Social Security (Can’t use if SR 10)

A71000 (Accident Policy – Double Benefit)

ADB Rider ($50,000 Accidental Death) Explained as Lump Sum addition to Pension Fund

Cancer Policy (10,000) A71000 Family (Accident Policy - Single Benefit)

Cancer Policy 35-45 (10,000)

Mortgage Protection 34 and under

i S e n i o r D i f f e r e n c e s i i SINGLE DIFFERENCES i

If lives at home make sure parent is there for presentation and for sure fiancé if there is one. Transition after concern sheet: “so it was thought that there should be some help in getting more benefit options to the younger members while it is such a great value. Just ask your parents if they wish they would have gotten more when they were your age. So they listened and here you go…” Now you are presently making $__ per day, this new situation would be $2 per day less. Recuperation Rider Stress 6 month disability income. Life Insurance Explanation “Joe your program is a combination of the best types of insurance…they wanted to make sure that you had the best of both.” Whole Life – “Joe, this is permanent insurance with cash value. Locks in young age, non-cancelable, rates can never be raised, builds cash value and loan values. It’s like owning a home versus renting. Talk to any older member or your parents and they will tell you that they wish they would have bought more when they were younger; as now it costs so much more for so much less. So the idea is get as much as you can while you can” 10RC Explanation; “Joe they added an inexpensive term that will create a large estate, and will also protect your future options for marriage and children. It also protects your insurability. This part of your plan was designed to be reviewed and renewed every 10 years as your situation changes.”

Warm up: Insert: “I have to tell you that I really appreciate that your group approved including retirees in on these benefits. It is because of you that the younger people today have what they have, yet too often this is forgotten.” Labor Advisory Board “as a matter of fact George Korpious, President of Alliance of Retirees, sits on our advisory board making sure all retirees are getting the best benefits.” AD&D Cert: if retired since they are not getting a paycheck. Replace the word paycheck with pension check, social security FIG “…Now your Funeral Information goes here…let me ask you first, do you have a Pre-paid Funeral Plan? If they say yes: Do you realize that most pre-paid plans do not cover everything! Then continue with normal FIG verbiage. If they say no: Continue with normal FIG verbiage. Transition after Concern Sheet: Use The Retiree Addendum

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American Income Life Insurance Company – Laptop Presentation Script

Presentation Tips Remember 40% of the presentation is Rapport Building!

Ø When you walk into the home, don’t start closing right away! Go slow, build rapport first. Ø The clients buy you first, then the company, and then the products, make sure you build rapport in

the beginning! Ø The FORM method of rapport building is a great way to begin the rapport building process. These

are the topics of conversation as you are beginning to build rapport: v Family: So are you from this area? Does your family live nearby? v Occupation: How long have you been at your job? What exactly do you do there? v Recreation: You’ve got a great boat in the driveway out front, how often do you get to go? v Me: Tie yourself into these conversations so they are getting to know you at the same time

Once the Client is comfortable with you, he or she will let you know by asking a question such as “what’s this all about anyway?” When you hear that, proceed into the introduction.

Introduction Walk to the door with their certificate, copy of the letter, and their benefits folder in hand. Agent: Hi, I’m (Agent Name) from American Income Life Insurance Company. (Offer your business card.) I spoke to you about your benefits through (group name)…Is your (spouse’s name) Here? Okay, Great I have your benefit package here…Could we use your table, it’ll make things a lot easier for me. And we’ll need (Spouse name) to join us…I need to make sure you both understand how this all works with what you have. Joe, how long have you been with (group name)? Were you at any of the meetings when they talked about this program? Well that’s why I am here. Sorry it has taken so long to get here…we work with a lot of the unions and groups in the area, and it seems we are always behind. (Build rapport) (SHOULD LAST ABOUT 5-15 MINUTES) Do you remember sending in the yellow card (show them the cert and the copy of their card)? Do you also remember this letter from your union (show the letter)? My job is basically to go over 4 no-cost benefits that have already been set up for you and some additional benefits you have to qualify for; you do what you want with those, I just need to get you the information and answer any of your questions.

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Client: What’s this all about it anyway? Agent: It’s about your (group) mail out to the members and the benefits you are entitled to.

Is this the first time you’ve mailed back the card? Client: Yes, it’s the first time Agent: Then let me start from the beginning and tell you what this is all about.

Client: no, I’ve mailed it before. Agent: anyone from the company ever been here before to review the benefits with you? Client: no. Agent: then let me start from the beginning and tell you what this is all about….. Client: no, I’ve mailed it before. Agent: anyone from the company ever been here before to review the benefits with you? Client: yes Agent: did you apply for any of the programs available at that time? Client: no Agent: then let me start from the beginning and tell you what this is all about….. Client: no, I’ve mailed it before. Agent: anyone from the company ever been here before to review the benefits with you? Client: yes Agent: did you apply for any of the programs available at that time? Client: yes, I have a policy with you Agent: do you have a folder that looks like this? (Show service file). Great, go get it for me please, so I can review your existing benefits while here and update your coverage. (It becomes a POS call)

Intro to the lead type video • As you are bringing the Laptop out:

Agent: Well, the company decided to go green in 2010 and developed a Laptop Presentation. I’m sure that before I came out here you had never heard of American Income before. This first video will tell you a little about us and let you know who handles your benefits. • Open Laptop and start Presentation

§ Begin Introduction by selecting the appropriate category, example “Union” <Play Lead Type Introduction Video>

Agent: I’m sure you can see why your group was so excited to work with our company.

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No Cost Benefits and Referral Collection AD&D Certificate (Do not play video, present in person) Agent: The first benefit that your group set up for you is your no cost Accidental Death & Dismemberment benefit. This benefit has been provided to you by your (Group) as a way of thanking you for being a member in good standing. Your benefit will cover you for $3,000 if you were to die of an accident and will pay half that amount for any dismemberment listed on your certificate. It looks like you listed Mary as your beneficiary, is this still correct? Perfect, I need your signature here at the bottom to designate Mary as your beneficiary. Okay, I am going to leave this certificate here with you for your records. Make sure you put it in a safe place. (Sign the agent’s signature, tear the stub off the bottom of AD&D certificate and set the certificate aside for when you leave. Flip over AD&D stub and collect contingent beneficiaries.) Right now we are the only ones who know about this, who would you like to list as your two emergency contacts? They recommend them to someone younger in age and local in the area…

Health Services Discount Card (Do not play video, present in person) Agent: The next benefit that they set up for you is your Health Services Discount Card. Now this is not an Insurance Plan. This is a point of service discount. Which means, anytime you that have to pay out of pocket expenses, this can save you up to a 60% discount on (point out all discounts on brochure) vision care, prescription drugs, hearing aids, and chiropractic services. This is over and above any benefits that you may have through work and is at no cost to you and your family. It does require renewal from year to year, but right now, those renewals are at no cost. It also comes with an optional gold program that covers everything that the basic program covers but it also gives members discounts on a dental plan, travel assist and other benefits. The Gold Program is only $24.95 for the year, so do some research and see if it makes sense to enroll into the Gold Program. If you can save your family hundreds of dollars, it might make sense to enroll. This brochure has all the information you’ll need; the application and the toll free numbers. (Go through brochure with them briefly) Please note, the discounts DO NOT take the place of any union benefits you have…they are a point of service discount. I will set this aside and you can fill this out when I take off. (Next, Collect Referrals…)

Now on the open market, this card goes for as much as $300 to $500 per year. But right now it’s being provided to all the members at no-cost and they want to keep it at no-cost. They also want to get the discounts up over 60% and add a lot more local providers to the network as well. And the way it works, is like union buying power, the more people that use the card, the more local providers will be involved, the bigger the discounts for the members AND they will be able to keep it at no-cost for the future… So, to help encourage that, what they are doing right now, is they are actually allowing you to sponsor up to 5 family members or friends to take advantage of this same Health Service Discount Card, without being in a union or paying any union dues… Now most people get started with their contingent beneficiary, and it looks like you listed your brother John Smith.. We’ll get you started with John, you have 4 more left, who’s next? (Enter the Referrals into the Laptop)

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Child Safe Kit Agent: I’m sure you guys know people with kids’ right? Great, you are going to love this next benefit! They are really on us about getting these out right now… <Play Child Safe Video>

Agent: Okay, so they set you up with two child safe kits for each one of your two children. I need to make sure that you fill these out for each of your kids and put them in a safe and easily accessible place when I take off today.

COLLECETING REFERRALS ESTABLISHING A CONTACT: After the benefit is explained: “ I need you to please grab your cell phone so that we can make a contact for you under “C” for Child Safe ID Kits. That way if you were loose the kits, damage them, or as your children grow, you will be guaranteed to be able to get a hold of us so that we can replace the kits at no cost again.” (Have the client put the agency office phone number 412-235-2385 and agent cell under the contacts). GETTING THE REFERRALS: This is where we need your help. As you can see these kits and information I just reviewed with you is critical in protecting children. As I told you we are dedicated to the Police Union to get these kits out to every single family that has children. This is could be an opportunity for you to save a life. I need the names of every single family you know in the area so we can get their children protected as well. Please go through your contacts by starting with the “A’s” go all the way through the “Z’s” in your cell contacts that way don’t miss anyone. Who is the first person (family) that you want to guarantee that has their children protected first? SETTING THE REFERRALS: (Name), you have my commitment that I will deliver the benefits to all of the people you sponsored. I need you to understand that I have anywhere between 8-10 appointments every day, so I will have to squeeze them in. Let me ask you, of the 7 people you sponsored, who would like to guarantee receives the (specific benefit) first? Great, Please give (person they chose) a call, let them know who I am, so the second I get a chance, I will get them the benefits first. ***After they get the person they are sponsored on the phone and explain yourself and the benefits, grab the phone from them and set the appointment. Make sure you get them to write down your name, appointment day, time, and CONFIRMATION NUMBER. Text the Rest: “I appreciate you calling (1st sponsor) and I promise you I will make an appointment with the rest of the people you sponsored. I need you to forward them all a text while your list is out, that way the second I get a chance, I will be able to give them a call and all of the families you sponsored will be expecting a call from me.” Send the person who is sponsoring a text and have them forward it immediately to everyone they sponsored. For Example: “Hello, I just met with this great guy Andres Sylva who provided me with some Child Safe ID Kits at no cost, usually $24.95 each. I was able to sponsor you for the same kits at no cost as well. He will be calling you soon, so please make an appointment with him. His number is 8137315135. Talk soon!”

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Save it in your phone and forward to all of your presentations!!!

Mandatory Read Off Letter

Agent: This is your mandatory read off letter: (Read the letter off) (If you have the mandatory read off letter from their group, please use that one) Paragraph after Mandatory Read Off Letter Agent: So basically, Joe and Mary, here’s the way it works…if, as I go through these benefits, you’re nodding your head (visibly nod your head) thinking “I can see why they have this setup and why all the members are excited and pretty much everyone is doing this,” then they ask you to try to qualify today while I’m out here. On the flip side, if once I go through these benefits you’re saying, “Wow, they really are great benefits but they don’t fill a need for me and my family right now,” then they actually ask you not to try to qualify. Either way, yes or no, that decision does have to made today during your service period in fairness to all the other members waiting to enroll. Does that make sense? The good thing about the benefits is that they are pretty much a no-brainer; you’ll know at the end whether it’s something that will fill a need for you or not. Does that make sense Joe and Mary? Are we on the same page? (Visibly nod your head and make sure to get agreement; do not move on until you have gotten an agreement from both). (To Avoid I want to think about it, THIS MUST BE MEMORIZED) Either way your group still values your opinion on the officer report form, fair enough?

Basically, it’s like my report card that goes back to your group to make sure I did a good job for you. All we need you to do is listen, ask questions and let me know one way or the other. So, as I go through the benefits, Joe would you stop me if you have any questions? Mary, you too? (Wait for responses)

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Transition to Life Insurance Video Agent: Now it’s 2011 and most people have Life Insurance. However, they found out that most people don’t know what they have or how it works. This video will detail the different types of insurance and also when you should have the different types as well. <Play Life Insurance Video by clicking “continue” button >

Agent: Do you see how important it is to have permanent protection for you and your family? Do you understand the difference between Whole Life and Term Insurance?

The fourth no cost benefit is your need’s analysis, what I like about this is that it takes into consideration your current situation and determines if you have any gaps in your coverage. If you have no gaps it will not recommend anything. However, if there are a few gaps it will recommend a few things. Now, Joe your date of birth is …. (just start filling out the needs analysis survey) Proceed to survey

After Completing the Needs Analysis Survey: Agent: They always make me ask … If you were to set aside just $3 for every $100 you take home each week to protect your family, would that take food off the table or drastically change your lifestyle? Okay great! What they are going to show you, most people like, and they didn’t want to show you something that you liked, but just couldn’t afford.

• If they say “Yes”: No problem, in fact they actually have some plans for $1 or .50 cents. But let’s see if it even came up with anything.

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Final Expense Protection Agent: Let’s examine your need for Final Expense Protection.

<Play Final Expense Video>

Preview review: (Review the recommended coverage, the existing coverage, the need and the proposed amount.) Agent: Joe, The expert Simulator recommends that you have $30,000 in whole life protection to cover your final expenses. You currently have $0.00 in permanent coverage for your family. So it is showing a need of $30,000 and therefore it recommends covering that need of $30,000. Does this make sense?

Mary, The expert Simulator recommends that you have $30,000 in whole life protection to cover your final expenses. You currently have $0.00 in permanent coverage for your family. So it is showing a need of $30,000 and therefore it recommends covering that need of $30,000. Does this make sense? Tie Down: Joe and Mary, I’m sure you can see how important this benefit is when something happens to you?

Income Protection Agent: Joe, important is it for you to earn a paycheck next week? How are they going to make it without your income? As a matter of fact, if your family went a couple of weeks without your paycheck, it would probably put your family into a financial bind, correct? Okay let examine your need for Monthly Income Protection. <Play Income Video>

Agent: Mary, do you see how important it is to have Joe’s income protected? (click continue) Preview review: (Review the recommended coverage, the existing coverage, the need and the proposed amount.) Agent: The Expert Simulator recommends having 5 years of Joe’s income protected. If Joe were to pass away during his working years, it recommends that his paycheck continue to come into the home. Especially during the years when your income so vital to the family. 5 years of your income is $250,000. You currently have $0.00 of group term coverage through work. So it is showing a need of $250,000 and therefore recommends covering your need of $250,000. Does that make sense so far? Tie Down: I’m sure you can see how vitally important this is to make sure your family will continue the same lifestyle in the event the breadwinner is taken out of the picture prematurely.

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Mortgage Protection Agent: Remember that there will be an adjustment period after the death of a breadwinner. But the most expensive bill, the mortgage, will still need to be paid. Jim, if you were to die tomorrow, wouldn’t you want to make sure your family’s home is secure? Let’s examine your need for Mortgage Protection. <Play Mortgage Video> Agent: Mary, if Jim were to die tomorrow, wouldn’t it give you peace of mind to know that you and the kids don’t have to worry about losing your home?

Preview review: (Review the recommended coverage, the existing coverage, the need and the proposed amount) Agent: The Expert Simulator recommends $100,000 in mortgage protection for your family’s home. Currently you have $0.00 of existing coverage for your home. Therefore, it is showing a need of $100,000 and recommends covering that need of $100,000 so that your family’s home is secure. Does that make sense? Tie Down: Once again, I’m sure you can see how important this protection is for your family?

College Education Agent: The Need for our kids to get a college education seems to be almost indispensable, if we want to allow them to have a solid and prosperous financial future. <Play College Education Video> Tie Down: It probably goes without saying how important that is right? Preview review: (Review the recommended coverage, the existing coverage, the need and the proposed amount) Agent: The Expert Simulator recommends $100,000 in protection for your children’s education. Currently you have $0.00 of existing coverage for your children. Therefore, it is showing a need of $100,000 and recommends covering that need of $100,000 so that your children’s education is secure. Does that make sense?

Agent: Makes sense so far?

Final Review (Before you click continue and bring the price) Agent: So to recap everything we have your Final Expenses taken care of, your income is protected for your family so their lifestyle won’t have to change, your mortgage is taken care of, and your children’s college education is assured as well. Now Joe, out of all these great benefits, if you could only choose one, which one do you feel would benefit your family the most? Why did you choose this one over all the others? Why is that important to you? Now Mary, out of all these

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great benefits, if you could only choose one, which one do you feel would benefit your family the most? Why did you choose this one over all the others? Why is that important to you? Okay perfect. (Click continue in bottom right and then quickly click ‘View Recommended Monthly Premium’)

Remember when I asked you the question regarding $3 out of every $100 and if that would take food off the table? Well, they figured they would 3% of your income to protect the other 97% because if we didn’t, then we would die 100% of the time 2 things are going to happen, we are going to die and pay taxes. I’ve see people get around paying taxes, but never get around dying. That 3% for you represents $300 (Reccomended Monthly Premium), however they only used $250 (Premium Used), so you got a $50 discount. Let me ask you, how many bills do you have that are around $250? Are any of those bills more important than your family? Okay, let me show you how this breaks down (go through each benefit again one by on detailing the prices individually and commenting on which ones they like the best. Always be their advisor and assume the sale) Agent: What I need to do now is complete the application to see if you qualify and I’ll be on my way. (proceed to assume the sale and fill out Eapp medical questions first) Prepping Customers for A Call To the Referrals Agent: Now Joe, if you would like these people to have access to this exclusive program, I cannot vary from this process. I need to make sure that you contact these individuals and let them know that I will be contacting them shortly. The worst part about my job is giving someone a call and them thinking I was a telemarketer or something and they hang up on me. But, as you know, I have a pretty booked up schedule but I promise I will do my best to get them caught up as soon as possible. Can you promise me you will give them a call over the next day or so? Great! OBJECTIONS

� If the price objection comes up, move to reduce the plan, one item at a time.

AGENT: “Mr. Prospect, I appreciate your concern. We don’t want this plan to be the cause of financial hardship for your family and yet, we don’t want the lack of it to be the cause of financial disaster for them, either. So let’s make some adjustments to ensure neither one of those things occur.” � Start with the whole life; reduce and recalculate; then ask: would this make you feel

better?

� Keep decreasing the items that have the highest price: WL, change the Re-adj. income from 5 yrs to 3 yrs etc…until the logic comes up with an amount that it is comfortable for the prospect.

� The Key Point is to leave the full needs picture and reduce the cost. Do not take any of the needs away.

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� If you feel there’s no breakthrough on re-adjusting the proposal, ask one final question:

� “Mr. prospect, if something were to happen unexpectedly, which one of these obligations would you rather have taken care of to protect your family at best?”

� Depending on the answer, you want to proceed by adjusting the proposal to the product that is going to fulfill the obligation chosen by the prospect, exclude all other products and close: “This is exactly what you want. Does it make final sense?

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CLOSES “I WANT TO THINK ABOUT IT”

(Relax first … show visibly that you are relaxed …i.e. sit back in your chair and say :”that’s fine”.)

“No problem. I understand where you’re at. The only thing is though, like I said before; they wanted us to do this on an enrollment basis… like your letter said. They figured they could do it this way because they already checked everything out and approved it for the members. You know the Company is A+ rated, 100% union and over 20,000 other unions have approved as well. The insurance benefits have been checked and rechecked and these are the ones you’re entitled to and eligible for. I mean you do what you want, but the main thing though is getting in on the benefits… BUT KEEPING IT COMFORTABLE! Most members are enrolling at this level, is that comfortable or would you want to adjust it a bit? (Then quickly say) Remember it is member owned. So if it becomes uncomfortable for you down the road, you could always change it later… make sense”? “I CAN’T AFFORD IT” “I can understand that. It’s difficult nowadays to make ends meet. Every time it seems we’re just about to get caught up another bill comes up to put us back in the hole. But when you think about it, over the years, when anything ever did come up you’ve been able to make whatever adjustments were necessary to keep food on the table and heat in the winter time for your family. A lot of times families take you for granted. But you’re the man that gets up every day, goes to work, and brings the money home to take care of things and make ends meet. The only thing that could ever prevent this from happening is if all of a sudden you aren’t here anymore. All of a sudden that income that we all took for granted is cut off forever. And that is the adjustment that you won’t be here to make and your family couldn’t possibly make. Sure the $___/wk is another adjustment to make, but just treat it as if Uncle Sam just increased your taxes. You’re here and you make it as you always do to prevent your wife and family from being faced with an adjustment they couldn’t possibly make.

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IV. Policy Owner Service (P.O.S.) Advantages ü Show Ratio is higher ü High Closing ratio ü Higher ALP per home sold ü No need to establish credibility; already there ü High persistency ü They are paying customers…already have bank accounts or if they are paying direct bill you

can bill new premium that way and still get advanced ü They are most likely insurable ü Referrals you get from policyholders are GOLD ü Able to work Lapses when you are in the area; extra sales & reinstatements ü Whatever Riders you add to a policy will be commissioned at the Whole Life rate ü A fun diversified presentation…you won’t get bored Phone Presentation Hello is this Joe Smith? Hi this Jim with American Income Life Insurance…you currently have a policy with us. I have been assigned as your new servicing agent and the Company asked that I call you to… well first introduce myself, but also to verify a couple of things. I have your address as ______. Is that still correct? Also is there a second telephone number we could list for you in your file…just in case? OK great…anyway the Company has a new policy for ‘dedication to service’ and asked that we come out once every 12 months, if possible, to review your policy and give you a well deserved update. It doesn’t take long, but I need to meet with you and your spouse to drop off your new service file, verify your beneficiary requests, give you some no-cost additions that have been made to your coverage and quickly review what you have and how it works…just to make sure you know where your money is going. As I said it does not take long…but I will be out in your area _______, can I put you down for (TIME) or would (TIME) be better? OK great and it sure would be helpful to me if you could have your policy(s) out for me when I get there. Thanks. Lapsed Policy Phone Presentation Hello is _______ there? Hi Joe, this is Jim with America Income Life Insurance. You had a policy with us and for some reason it lapsed back in _____. Do you know why that happened? Well the reason I am calling is I am with the Customer Service Department and the Company asked that I drop by when I am in the area and briefly explain some important options you still have and may not be aware of relative to your policy. (Also we are the police union endorsed company to provide child safe kits to the neighborhood children and at least we will get those to you as well) I am going to be in the area this week, would _______ be OK say about (TIME) or would (TIME) be better. Alright you’ll want to have your spouse there in case we need her to sign anything and if you still have your policy it would be helpful if you had that out when I come.

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Warm Up Service § Order New Policies if they are lost or missing § Add any new children to their child rider. Put names and info on the POS Sheet. § Change billing to ACH if they are on direct. This will get them an 8% discount. § Check Beneficiary correctness (1st and contingent) Changes would be made on the

Policyholder Service Form § Check their POS File to make sure it has all the correct papers i.e. Family Information guide,

FOC Form, Claim Forms, Strike, Layoff etc § Add the TIR (Terminal Illness Rider) § Review Health Discount Plan § Hand out Child ID Kits § Identity Theft Referrals (as per presentation) Review This is what you have (explain as per original presentation). Encourage them by being very positive about what they have. Explain as if you were first presenting the benefits for sale yourself. Suggestions o Add additional Whole Life on Policyholder. Remember you could always add Term to 100 to

adjust Whole Life to higher level. o Add Lump Sum ADB o Add Paycheck Protection or if they have already you could increase to allow full Income

Replacement for a full 36 months o Add Freedom of Choice on Spouse o Add Income Protection on Spouse or if spouse has already you could increase o Convert 10RC to a permanent plan o Convert Spouse Rider (if they have) o Add or increase Child Rider (to $10,000) o Add separate Policies on children (Headstart) o Add Cancer Protection o Complete Need Analysis (Mortgage + Debt + 36 Months Income + Future Needs + Children

Needs [college etc]) This is what you got; this is what you need (100%/75%/50%) Pension Maximization Generally according to current law…unless you and your spouse notify your employer otherwise, your pension plan will automatically provide you with a ‘joint and ½ survivor benefit i.e. you would receive 80%-85% of your pension and should you die your spouse would receive 50% of that reduced pension for as long as she lives. But if you notify your employer then at retirement, you’ll probably be able to choose from several other options similar to these: Life Income Option: Full pension with no survivorship income when they die Joint & Equal Survivor: Receive 75% of your pension benefit. If you die first payments in this amount will be continued to your spouse.

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As these options are considered, remember many pension plans provide a retirement income equal to ½ of their last regular working paycheck. So an example would be if your last month’s regular gross income was $3,000, your pension would amount to $1500. If you chose the Joint & Equal Survivorship Option, you would receive $1125 for your lifetime and should you die your spouse would receive this as well for her lifetime. So you would be spending $375 per month to provide an income of $1125 to your spouse should you die. The Issues: NO GUARANTEE If your spouse dies first you cannot go back to your full pension…this is a choice of ‘no return’. So you are spending thousands of dollars with no guarantee your spouse benefit would ever be used. She may die before you. And if this happens there are no additional retirement or cash options available to you. NO ESTATE OR LEGACY All payments stop when you and your spouse die. There is nothing that will be passed on to your children or loved ones. NO TAX ADVANTAGES Pension Survivor Benefits are currently taxed as ordinary income. A Better Way? Make better use of your dollars – purchase a life insurance policy $____ per month will provide a policy in the amount of $__________. Should you die this amount of insurance will provide the income of $_______ to your spouse Should your spouse die first, you would have cash values and you could go back to your original full pension by canceling your policy When you and your spouse die there would be a sizeable amount there for your children (or future grand children) Start Early? There are distinct advantages to starting this now before it may be too late. Health Issues may prevent choices later in life Incomplete Pension if you die too early Life Insurance gets more expensive every year

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V. Closing - Control, Common Sense, Desire Before we get into some closes that you should use, it is important to point out three elements without which closing becomes very difficult, if not impossible. These three elements are: Control, Common sense, and Desire. From the very beginning of the presentation, from the time you walk in the door, control plays a very necessary part in our programs. You must, at all times, be pleasant and conversational, but always be direct and authoritative as to the events that are about to follow. You must be able to effectively direct the client and spouse to a table, with the understanding that you will need a “place of business.” You can easily do this by asking them, “Can we please sit at a table together? It’s a little easier for me.” Or, “Mary, can we borrow you over here for a few minutes? I’ll need to explain a few things that are important for the both of you to understand.” Or, a little lighter, “Can we sit together over here for a few minutes? I promise I’ll try to make this as exciting as possible for you!” Any way you do it, you must have the control to get the husband and wife together. This will set the stage for the control that you will need to exert throughout the presentation. Common sense is equally important to closing, as it will give you the ability to analyze the situation and guide you in handling it. You must use the presentation word for word. However, in some situations, you must have the common sense to know when to be flexible and adjust to the situation. For example, you find yourself starting the presentation and suddenly you learn the spouse has a bowling match that starts in twenty minutes. Obviously, you must have the common sense not to continue the presentation word for word. You must quicken it, compress parts, or skip parts that are not needed and get to the benefits explanation as soon as possible. Common sense also dictates that if the client shows interest in a particular part of the presentation, use it for all it’s worth! Whether it’s our union heritage, affordability, or whatever—once you notice that interest, continue it all the way through the presentation. Also, have the common sense to spend your time appropriately, rather than spending most of your time on no-cost benefits. You should have the common sense to know that if you’re with a young family they will be more interested in the income protection than the whole life for the “someday when…” Obviously, stick to the presentation and include both products, but really emphasize income protection, the “hot button,” for the young, under-protected family. When talking to someone over 50, have the common sense to talk about those specific needs that hit home, such as: Social Security or lack of, pension, retirement, drop-off of work benefits, the fact that medical expenses loom ever larger at that age, etc. Use phrases like, “Most of the members in their fifties, nearing retirement, are particularly excited about this part of the program because…” Know the Hour Power, but please know when and how to adjust yourself according to the pay scale of the member you are seeing. For example, retirees get a monthly check and typically budget the same. Rather than a program for $10 a week, show the figure as $43 a month. Notice if they smoke cigarettes because you can then make a

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statement like, “This program is $8 a week, which is less than ½ pack of cigarettes a day!” Or, if you happen to see a package of Oreo cookies on the shelf say, “Well, for the cost of about 1 ½ packages of those a week, you can put this program into place for you and your family.” You must also have the common sense to understand that if someone thinks you are going to try and sell insurance, he/she is going to try and stop you from the beginning. For example, “If this is about insurance, please don’t bother” or “I just want my AD&D certificate, I don’t need any insurance.” Please understand that everyone reacts this way if they feel they are going to be sold insurance, so don’t let it deter you. IF they say things like this before you present the benefits, never argue the need of insurance at this point without having the benefit of our presentation behind you. Never bump up against the client at this point or you will lose. You must go around them, not against them. For example, “That’s fine. It’s just my job to give you your certificate and also explain to you some benefits you may be eligible for. It’s your right to do what you will with these programs after that. Now if we can use that table to do some writing, I’ll be as quick as possible for you both; fair enough?” The last pre-requisite is desirability. Once you have established control and used your common sense to tailor your presentation to the client’s situation, you are halfway towards creating the desirability you will need to close the deal. In order to create a sense of desire, you must turn the program into a tangible asset that the client can visualize themselves or their family actually using. You do this by explaining the benefits, understandably and thoroughly, and putting them personally into the scenario. We call this “painting a picture.” It’s not enough to just recite the presentation verbatim. You must enthusiastically and sincerely show the benefits. If they can perceive the benefits, they will desire them. Effectively creating the need will also effectively create the desire. For example, if you were offered a car for $60,000, just by statement alone, it would not create much desire. But, if you were to sit in that $60,000 car and feel the horsepower, smell the new leather, listen to the amazing stereo, and have the salesperson tell you how great you looked in it, now that would create desirability! If the dealership pointed out that in buying this car you would probably save money, since you would not have to put any more money into repairs on your old car, this would also create desirability. If insurance was explained the same way; how insurance works, the advantages, the savings, the various applications of the benefits, and a “picture was painted,” the same desirous results would be obtained. In summary, if you are able to achieve control, common sense, and desirability, you’ll now be able to close with results.

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V. The Philosophy of Closing Can I afford it? This is a tough question to answer because affordability is a current financial state and changes on a week-to-week basis. We may be able to show comfort ability this week, but what about the next week or the next month and so on. This is definitely something that causes people to hesitate. But when you think about it, why must we have to prove affordability at all in the future. What we are selling is not a lease where if he misses one payment he could be in trouble. This program is member owned. Should it ever become uncomfortable in the future, he could lower the payments to meet his current financial situation, as he is not locked into anything. Even if things got real bad and it became a matter of this program or food on the table, he could still perhaps use his DAF Account, Cash Values OR Visa/MC to pay it. Last resort, but still his option, he could cancel it. You see it is all up to him...his benefits...he could do what he wants. So what it comes down to is this question...since he needs the benefits and he knows it is the best deal, is $____per week going to change his lifestyle at this moment? I want to think about it. Most sales persons address the prospect’s response of ‘I want to think about it’ incorrectly. The following discussion may assist you in proper analysis of this situation. NEED? First of all, the ‘I want to think about it’ response is a ‘smoke screen’. The member does not really wish to think about this program. Do you believe he wishes to think about whether he wants his family to have an extra $1500 per month for 12 months when he dies? No! In fact if you were offering this package of benefits to him at no cost as part of his union benefits, do you think he would tell you, “Well I don’t know? Maybe I should think about it.” Of course not! He would jump at it. So really what the union member is saying when he responds that he wishes to think about it is either he does not understand the benefits fully and review is in order...or he needs the next two questions answered: AM I GETTING THE BEST DEAL? How many times has a car buyer gone to a car dealership, found the right car, been told by the sales person that he is getting the best deal, then turns around and says he wishes to think about it? Generally, we tend not to believe sales people when they tell us we’ve gotten the best deal because, well, they’re sales people. We always think that that same car may be $1000 cheaper down the road at another place...the better deal! Nobody, especially in America, likes to get less than a good deal. Everyone wants that extra time to think about it to make sure they are getting what they feel to be a good deal. So how do we answer this question in the buyer’s mind without just saying so? We, fortunately, could show it to him by the facts. FACT: Would over 20,000 unions approve a program over every other one if it wasn’t what they thought to be a good deal over all for the member...especially when it is the union’s job to protect the member’s interests?

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V. Feel, Felt, Found Method of Closing Let’s say a member says something like, “You know Sam, if you’re here about insurance, you can just forget about it I don’t want to hear about it. This is how I would use this response: “Well you know, Joe, I understand how you feel. A lot of members have felt that way, but when they found out about the benefits that have already been implemented for them and the other benefits that they can possibly be eligible for, they are actually pretty excited about the visit and the time that we spend. This won’t take long. My job is just to give you some information and to go over everything that you may be eligible for. You listen to it and you can do exactly what you want. All I need you to do is listen. Does that make sense?” The Feel-Felt-Found method can be used in almost every response to a member objection. The important thing is just explaining that, hey…agreeing with them…not coming up against them, but just saying, “hey, I understand how you feel” and then kind of relating it to other members as well so we don’t feel isolated, you know “A lot of members have felt that way”, but then going to the next level is where the transition is. Explain to the them, “But once they found out” and say whatever it is that you’re trying to explain to them, and then explaining how excited that they were, or appreciative they were, of what’s been done for them. It works wonderful, it’s just an amazing transition of statements that will get you from where you’re at, which is nowhere, to actually along the road together, with the member, hand in hand.

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V. Closing in Home – Responses to Objections What do you think honey? (Say to the one being asked the question) Well, you must be the one who handles the budget.... remember the main thing is getting in on the insurance benefits but keep it comfortable. Most members are enrolling at this level, is that comfortable or would you rather start with less?" An Elongated Hesitation… Just because you are hesitating so long, I do not think it a good idea you do it at this level. Again the important thing is getting in on the benefits but keeping it comfortable. So let’s do this…we will keep most of the benefits in tact as you really need them, we’ll just adjust the amounts a bit and that will bring it down to $___ per week…does that make better sense right now? -or- “Folks, I need to grab something out of my car. Why don’t you take a minute and talk about what you want to do and I’ll be back in a minute. This will give you a chance to talk.” This should work almost every time in your favor. You see, many times the people feel pressure because you are there and they feel uncomfortable talking in front of you. Leaving the home to get something or to get your next appointment so you could call them, will take the pressure off and allow the people to relax and talk. This should help them to make a decision that will fit their needs. I want to think about it. (Relax first...show visibly that you are relaxed...i.e. sit back in your chair and say "that's fine".) "No problem. I understand where you’re at. The only thing is though, like I said before; they wanted us to do this on an enrollment basis…like your letter said. They figured they could do it this way because they already checked everything out and approved it for the members. You know the Company is A+ rated, 100% union and over 20,000 other unions have approved as well. The insurance benefits have been checked and rechecked and these are the ones you’re entitled to and eligible for. I mean you do what you want, but the main thing though is getting in on the benefits.... BUT KEEPING IT COMFORTABLE! Most members are enrolling at this level, is that comfortable or would you want to adjust it a bit?" (then quickly say) Remember it is member owned. So if it becomes uncomfortable for you down the road, you could always change it later...make sense? If they still want to think about it…. "Just for the records, do you feel that if something did happen that this program would be helpful for the family?"

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“Well, you know they have me running like crazy, like I told you...and people are already calling from other cities wanting to get involved and we can't seem to get out to them. And you know, as I said, the program is member owned, so once you’re enrolled this is yours...you can do what you want with it. So if $___ per week is comfortable for you right now...go with it...it's yours, you could always change it later. Make sense?” I want to think about it. I can understand that… a lot of union members feel that way. But we try to explain, as I mentioned before, that we are only supposed to see each union member once each enrollment; and our enrollments run about three or four years. Now, I know how much you like this program and how much your family needs it so I wouldn’t want to take anything away from you. I’m sure you didn’t mind the fact that if anything happens to you, Mary and the kids will get an extra $25,000 or $50,000. If this was offered to you free, I’m sure you would jump at it. So really, it’s a matter of whether $_____ a week is actually comfortable for you. Do you feel $____ per week would take food off the table? I can’t afford it. I can understand that. It’s difficult nowadays to make ends meet. Every time it seems we’re just about to get caught up another bill comes up to put us back in the hole. But when you think about it, over the years, when anything ever did come up you’ve been able to make whatever adjustments were necessary to keep food on the table and heat in the winter time for your family. A lot of times families take you for granted. But you’re the man that gets up every day, goes to work, and brings the money home to take care of things and make ends meet. The only thing that could ever prevent this from happening is if all of a sudden you aren’t here anymore. All of a sudden that income that we all took for granted is cut off forever. And that is the adjustment that you won’t be here to make and your family couldn’t possibly make. Sure this $____/wk is another adjustment to make, but just treat it as if Uncle Sam just increased your taxes. You’re here and you can make it as you always do to prevent your wife and family from being faced with an adjustment they couldn’t possibly make. I’m insurance poor. Boy, aren’t we all. Health insurance, car insurance, home insurance… we all have plenty of these. In fact, we wouldn’t be without our car insurance or home insurance because we can perceive something happening to our car or to our home…and that would be devastating. But when you think about it, the most important thing is our income, because that is what enabled us to get all these things in the first place. You can always replace a car or a home as you are still working and paying the bills. But if something happens to you, your income is gone forever and can never be replaced. Now, frankly, I don’t like paying insurance premiums either, but let me tell you something, it’s the only way that I know where I can guarantee that if something happens to me, my family is still going to be taken care of. And I’m sure, when we think about it, we all want extra money for our families if we’re not here to take care of them. So it’s pretty much a matter of comfort ability, does $5 a week sound comfortable to you? The insurance company is just betting I won’t die, it’s all a gamble. I know what you mean, but when you think about it, the real gamble is if you think this way and do not have a program. Because the gamble is that if you don’t have insurance, you’re putting your family on the roulette table. If something happens to you, they are the loser. The only sure bet is insurance, because this way you can be assured that if anything does happen to you, you are guaranteeing that they are all going to have this to help them carry on. Consider it a

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gamble, or whatever you want, but insurance is the only way that I can have money here for my family if I’m not able to be here… that’s the important thing. So, really, it’s just a matter of whether $____ a week is comfortable or not. I would just like the DAF Account or I would rather just put the money into savings. I can understand that. Most of the union members like this account (like to save). And the reason you want this account is because it’s the perfect account for a union member to be able to save for the future so one day he and his family will be able to do those things that American families are supposed to do. And the only thing that can prevent that is if something happens to you. So why shouldn’t your family have those things anyways…those good intentions of yours? That’s why the protection part of the program is being offered, so that it becomes an either or situation. If you complete your saving plans you’ll have the money you want. If something happens to you, your family will have this money. That’s the way you would want it, right? I have a lot of bills right now but when I’m ready I’ll be sure and give you a call. You know I just bought a new car and a new house and I just can’t afford it right now. Yea, it’s probably going to be pretty tough for a while. But, you know, you are going to continue working as you always have in the past and eventually you’re going to get that paid off. In the past I’m certain that you’ve had other major bills that came up. But as long as you kept working, you got those bills paid. But there’s one thing that can prevent you from paying this bill or any other bills and that is if something happened to you. That is not just going to be tough, but it will be impossible. Why don’t you take this program just to guarantee whether you’re here or not that your family will be able to pay these bills? We have plenty of insurance and my wife doesn’t need any extra money. Well, that could be true, Joe. Fact is that she may not need it. But, you know, if she doesn’t need it she can always use the money to take a trip or send the kids to a better college or something like that. I’m sure you wouldn’t mind that. But you know, extra bills and the uncertainty in life, there’s a chance, just a chance, that she may need it… and I will guarantee you that the $30,000 she would get if she does need it will mean a heck of a lot more to her at that time than the $5 means to you guys right now. So, really, it’s just a matter of comfortability. It’s just $5 a week, is that going to take food off the table or change your lifestyle any? I can’t afford it You know, Joe, I agree with you that times are tough right now and a lot of the guys feel that it’s very difficult to afford anything. But, when you think about it for a minute, just suppose that you went to work tomorrow and your boss comes over to you and has a big smile on his face and says, ‘Joe, things have been pretty good here at the factory and we’ve been getting a lot of orders in, and in fact we’re doing so well that I’m going to be able to give you an extra hour of work each week. Instead of working 40 hours you’re going to be working 41 hours’. Now, you’re probably going to be pretty happy about that and go home and tell your wife about it. But as you know, an hour a week is not going to cause you to take that trip to Mexico that you always wanted or to buy the second car or that boat. It’s nice, but it doesn’t really make that much difference. On the other hand, if you go to work tomorrow and the boss comes over and says, ‘you know, Joe, things are pretty tough we’ve had a cut back in orders and what I’m going to have to do is cut you back one hour, so instead of 40 hours you’re going to be working 39 hours a week’. Now you’re going to be upset about this and go home and tell your wife about it. But one hour a week is not going to force you to sell your house or take one meal off

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the table or cancel the dentist appointments for the kids. You’re going to be able to adjust and make it as you always have. Because as long as you’re working everyday, whether it’s 39 or 40 hours a week, you’ll be able to make the adjustment as you always have in the past and will in the future. In fact, the only adjustment you and you’re family couldn’t make is if something would happen to you. Then it’s not a loss of one hour’s income it is a loss of all your income forever. And that is an adjustment that your family couldn’t make. The Hour Power program, in that way, is within the hour’s wages adjustment, but you can make it because, as I mentioned, you always have. So isn’t it important to make an adjustment that you know you’ll be able to handle today to prevent your wife and family from facing the adjustment that they couldn’t possibly ever handle. Believe me, what that hour of wages per week means to you right now is no comparison to what this extra $20,000 - $25,000 will mean to your wife and family if anything should happen to you. I have enough insurance I can understand that; if you had $75,000 or $100,000 of insurance that would seem like a lot of money. In fact, if we were to stack that much money on this table I don’t know how high that would be. But when you talk about your income, something we just take for granted, being gone forever, all of a sudden it doesn’t seem like that much. For example, your income right now is about $20,000 a year and you’ve been earning that for about the last 5 years. Now that’s about $100,000. How much of that do you have left? You see if something happened to you 5 years ago, your family right now would be faced with - what do we sell first or what government line do we stand in? You see it’s very difficult to have enough insurance. Your family always needs more but you can only do what you can do. So it’s a matter of comfortability. Would $5 a week be comfortable for you? I want to talk to my Financial Advisor (or Insurance Person) first I could understand that…we all need advice in this complicated world. And your financial advisor is probably a great guy and knows his stuff. But when you think about it, he is in business to make money. And the way he makes money is through commission… by selling financial products and insurance. So I guarantee you, if you call him, no matter what this deal is for you, he will have other suggestions…his suggestions…again he makes a commission. So please remember his opinion will be a bit biased. When they set this up, over 20,000 local unions looked at and chose this program over any other. And each union has their own financial adviser and/or insurance representative. And the unions only job is to protect the members’ interests…there is no ulterior motive other than that. So again, your financial guy may be a great guy, but wouldn’t it be better to take the advice of over 20, 000 ‘unbiased financial advisors’ over ‘one biased’? What I would do, since this seems to be of great need and value to you right now and if something happened today, your family would be so happy you got it…is to enroll in this…this as far as you know is the best deal right now…the only one on the table…that way you have it in place for your family. Then, if you ever find something else you think is better…run it by us first to make sure, and if it is, more power to you…go for it. This is a member owned program so you always have the choice of what to do with it and when…that’s up to you. Does that make sense? I don’t think we need this right now Well actually you don’t…who does…everything is good now. The problem is when something happens is when your family will desperately need it…and who knows when that will be. It’s like why buy a fire extinguisher when your house is not on fire. Well when the fire starts it’s too

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late to think about buying one. This is the kind of thing you could only buy when you don’t need it. Believe me what $____ per week means to you right now is no comparison to what these benefits would mean to your family when the fire starts. Does that make sense? (after getting an affirmative answer) Yea that is what most of the members are saying as well...the only thing though is you still have to qualify for it so I need to ask you some questions.

V. Power Phrases • Bill and Mary, I’ve walked into your home as a stranger. Whether

you participate in additional plans or not, I’m walking out a friend. • If you give me 1% of your confidence, I’ll earn the other 99%. • What we really have here is the Union Plan for the union man...and

his family. • Only two really bad things happen to us in life that we can’t control.

Either we die too soon or we live too long. • Now, Bill, if you were taken out prematurely, I know you would not

object to having some extra money for Mary and the children, would you?

• As I said before, if I can’t help you, I’m sure not going to hurt you. • The only regret you’ll have about this in years ahead is simply that

you don’t have more. • The future belongs to those who prepare for today. • INCOME...most union members feel they’re not going to miss $1 a

day, but if they die their family will sure miss their income. • FUNERAL BENEFIT...most members feel it is a lot easier coming

up with a few dollars a week now versus having to come up with thousands of dollars later

• "You can choose to be concerned about this today OR be forced to

be concerned in the future."

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VI. Modes of Payment We do not accept monthly, quarterly or Semi-annual direct billing. All premiums must be paid through an automatic draft (ACH) through their checking account, savings account or credit union. The only exception to this is if they are an existing policyholder. If this is the case, the billing will be accepted however they are currently being billed, even if direct monthly. CHECKING ACCOUNT (MBD) Monthly Bank Draft • Cannot be set up to draft on the 29th, 30th or 31st of the month • Need a check for one month premium from the drafting account • Need voided check or copy cut to size of original check • Every month drafts are automatic transferred from their bank account to their insurance

account. • Check-less checking - client does not use checks: is written on the application, when

premiums come out of their Checking Account, but the client does not use checks, only their Debit Card for this account

SAVING ACCOUNTS (MBD) Monthly Bank draft though (ACH) Automatic Clearing House • Only accepted if POS and have been with the company for a year or more • Need first months deposit (cash, check or money order) • Need name of Bank or Credit Union along with telephone number and address • Need account number • Not all savings accounts are able to be ACH’d. Look at your union questionnaires to see if

the credit union could be ACH’d • Small number of Credit Unions belong to the ACH network ANNUAL • Once a year a bill will be sent to the house. Collect the full first year’s premium in the form

of a check. SOME RESPONSES TO DIFFICULTY IN CHECKING ACCOUNT BILLING: ADVANTAGES: This method saves stamps, service charges, writing a check each month and the worry that accompanies the possibility of a missed payment, which could lapse the insurance when it could be most needed. ANSWERING OBJECTIONS: If the member is worried about the company dealing with his account...i.e., possible mistakes being made, you could say, “being a union company, and the only one that is approved to work with union memberships, we don’t make too many mistakes when it comes to billing and if we did, we not only would correct the problem but will also reimburse any service charges it may have caused…YOU’LL PROBABLY GET SOME DINNER TICKETS OUT OF IT AS WELL.” THE BEST WAY TO EXPLAIN: Deposit your pay check each week but record your deposit less weekly premium amount. That way you’ll have that extra amount in your account each month… kind of your own payroll deduction.

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VI. Rated Risk Presentation Q-R CHECKLIST Verbiage: "At some point in everyone's life, they become uninsurable. This happens either because of age or health issues or habits (draw line). Once this happens, they are put on the NO side of the line and can never get insurance again. Now with a lot Companies, when someone has any health problems they are put on the uninsurable part of this line. Now this was such a needed plan and because American Income serves unions, they didn’t want anyone to lose out on... health problems or not. So what American Income set up is a category called Special Risk. If you have risks, it would then be a little more than if you didn’t. Those in this category would pay whatever the rate is for someone who has what they have…does that make sense? Now, the more severe the health problem, the closer you would be to the uninsurable line. And the closer you are to that line, obviously, the higher the program would be; but all the more valuable because one more thing happens wrong or things get a bit worse and then you’re on the NO side of the line for good. Does this make sense? Would this be a problem for you if they added a few more dollars?

WHEN DELIVERING RATED POLICY: Don't mention change over phone: just set appointment and go. Be enthusiastic and excited that the plan was issued and not declined. Remind them what you said before and don't be apologetic (defensive). Do not mention the RT-99 Form (reduction of benefits) unless you are unable to place the extra premium. Make an additional sale by placing a Rated Case Deliver the original Rated Policy - a Second identical policy could be issued "if acceptable". No new application is required unless the original application is over three months old. Send Home Office two checks: one for the additional rating and one for the increase (new policy) Send in the Notice of Policy Modification Form (u-213) and A memo explaining that you want a second identical policy to be considered. (If you don't tell us that you want a second policy, we may easily confuse the second check as the next month's premium.) In most cases, the second identical policy can be issued; however, it is not automatic.

Age Health Habits

Uninsurable No Insurance

$ $ $ $ $ $

No Health Problems

Special Risk

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VI. Some Tips On Selling and Placing Rated Cases Speaking as one who has devoted much of his career to working with substandard life insurance, my attitude is: Thank God for the rated policy. Having said that, let me go on to say that I realize there are comparatively few other agents who would echo the sentiment. Yet there are many clients who would agree with it and even more beneficiaries. Each year we pay more death claims from my office than most people write life insurance. Last year it was about $2 million. Unhappily, many of these were early claims--people who died at an age which those who are blessed with better health would consider the prime of life. Some had been uninsurable, on a standard basis, practically from birth. Others, for one reason or another, became less than standard risks before purchasing adequate life insurance coverage. But all, at the time of their deaths, had a need for the money that I was able to provide their families as a result of the practice of substandard underwriting. It is on their behalf that I thank God for rated policies. A somewhat disturbing statistic form the Life Insurance Fact Book hints at why so few agents consider the rated policy blessing. As an industry average, agents fail to place about 8 percent of standard policies. For substandard cases, this figure goes to 17 percent, or slightly more than twice as much. Believe me, it is not the impairment or the rating that causes this. It is the mental attitude of the agent who is attempting to deliver the policy. While this is unfortunate, it is at least remediable. We cannot cure our clients, but we can cure our own attitudes and we should. More important than the commissions, however, is the fact that rated cases should be placed. They represent individuals whose need for insurance is at least as great as if they were standard risks. Moreover, the persistency on the properly rated substandard case is much better than any other business you can find, including pension and profit sharing. Each substandard client you gain automatically becomes a center of influence for you. In his eyes, you are a hero. You got him insurance in spite of his disability. He will be more than happy to refer you any friend of his who has a health problem. When it comes to selling the impaired risk policy, the one thing to keep in mind is that you are selling life insurance, not a rating. If the man needed insurance before you discovered the rating, he needs it just as much afterwards. Some would argue that he needs it more. But the important thing to remember is that all of the basic rules for selling life insurance still apply. The insurance industry has known for many years that you should give a man five chances to say “yes”. We also call it five closing presentations. That is true in the standard case. It is just as true in substandard. Interestingly, a recent survey conducted by the Ralston Purina Company found that 46 percent of all salesmen quit trying after the first closing attempt and 95 percent have quit by the fourth attempt. Although only 5 percent of all salesmen persist beyond four closing attempts, 60 percent of all sales are made after five or more opportunities. Following are five closing arguments that you can present to your applicant if he objects to a rated policy:

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The first, of course, is the most basic one. If there was a need for life insurance before the rating, it is still there now. This may be his last chance to cover that need, and you ought to remind him of it. Ralph Englesman was a very successful insurance man, and whenever he got a rated case he always ordered out another policy of the same size. Then he would take both to the man, assume that he was going to accept the first, and impress upon him that here was an opportunity to complete his program, an opportunity that he could not be sure of ever getting again. Almost always Englesman would up placing both policies. Here is another close. Remind your applicant that what you are selling is a unilateral contract. There is no way the life insurance company can come back and change its mind. There is nothing it can do except leave that policy in force or reduce the premium. He has the privilege of trying to improve the rating with that company or another company, but the company has only two options: to reduce the premium or to pay the claim. You might also remind him that while this premium isn’t the same as standard, it is standard for his condition. It may be a cliché, but it is a fact in many cases the rating may be less than standard for his condition and that should be pointed out to him. Industry wide, the statistics for rated cases are these: Within 10 years of the time the policy is written, 40 percent of all rated cases remain the same or their health deteriorates. but the industry can’t change the rating. Another 40 percent improve and the industry reduces or removes the rating. The final 20 percent becomes claims. This is something you can well point out to your applicant. “You think that 10 years is a short length of time. It may be. But it becomes a lifetime to 20 percent of all people who buy rated life insurance policies.” Another good closing presentation is to take the life expectancy in years for a standard applicant and multiply that by the standard premium. You show that to your applicant and tell him, “This is what would happen if you didn’t have diabetes. But since you do, you obviously will admit that the average of all people with diabetes is going to be somewhat less than standard. Now, if you will take your Table 4 rate and multiply it by the expectation of life, in years, for people in this health category, you will find that the total is very close to the same. The slight difference is attributable to the fact that the companies have a little bit less time to earn interest on the premiums.” Another close that we’ve found to be fairly successful is to compare the premium to the current interest rate on loans. Suppose you are talking to an applicant about an $80 per $1,000 life insurance premium, which is a pretty substantial premium in anybody’s book. You can remind him that bank interest rates today run anywhere from 7 percent, if you’re extremely fortunate, to 10 or 12 percent. Obviously the bank, in addition to its interest, wants the principal repaid. So if you’re talking to a man about rated life insurance, you can say, “Wait a minute. All you’re paying us is 8 percent. But your business, if it borrows money, would probably have to pay more than 8 percent, and still repay the principal.” Here’s another close that works pretty well. Remind your applicant, as he sits behind his desk in whatever business he may have, that, despite his health hazard, you are offering him a policy right now. If he had applied for fire insurance on his building and the underwriters discovered even a little fire hazard back in his shop, the company would, of necessity, tell him that he had to get it fixed up before they would issue the policy.

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You, in turn, are offering the policy right now and telling him that as soon as his health improves, you’ll reduce the rating. And, as we have already pointed out, this happens in 40 percent of the cases. Here are a few of the things to avoid in selling rated cases: • Don’t ever use the word “substandard” with a prospect. Use special risk, qualified risk, select risk, anything but substandard. No one likes to think of himself as substandard. • Don’t apologize for the rating. You can’t help his health. That is a problem he’ll have to take up with the Almighty, with his parents, or with his own living habits, not with you or the insurance company. • Don’t let him dominate you. Keep control of the interview. If he’s going to tell you that he’ll buy only standard or he’ll pay only a certain premium, you are better off looking for a new prospect. But normally, you can handle this exactly the same way you would handle it with a standard risk. • Don’t try to sell the investment aspect of life insurance. Net cost is something that the substandard case simply cannot support. A man does not buy rated life insurance as investment anyway. He buys a death benefit. So show him the cost versus death benefit or the cost versus paid-up, not net cost or cost versus cash build up. Recently, I was working with a young agent trying to place a large Table 8 policy. The applicant said, “If you live 10 years, I’ll pay as much premium as I get the death benefit.” We pointed out, “That’s correct. And I hope you do. I hope you pay us a whole lot more, but let’s stop right there. If you pay us a million dollars and we pay you back a million, then you’re even. We’ve had the use of your money for a few years, but basically, you’re exactly where you were when you started. If, instead, you keep that million dollars and put it through probate in your estate tax bracket, Uncle Sam is only going to give you back half a million. So you’d better have $2 million around here to pay your taxes with in order to get back $1 million if you’re not willing for us to sell this policy and have it owned by your wife or trust.” He bought it. I might add that the premium ran about $8,000 a month. There is always a temptation to rationalize away a difficult case. Rather than buckle down to the reality that the breadwinner needs in the life insurance, it is easy to think in terms of a little more insurance on the wife or the children, a key man or whatever. In other words, switch the insurance from the rated case to somebody else who can be written standard. But this is unfair. When the breadwinner dies, these other people don’t need insurance premiums, they need money. The only way they are going to get it is if their insurance man faces up to the realities of substandard cases, knows how to handle them, and puts the insurance where it belongs. The hard way is many times the easiest way.

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VI. Commonly Asked Questions and Login Names and Passwords Advance Questions – If the answer is not in your mailbox Friday morning you can Email [email protected]. ALT Cancel Request – Write down name and address on Policy Service Request form and give to Chrissy. Change Draft Date – Email [email protected] with applicant’s name & policy number and new draft date. Remember draft date can’t be more than 14 days from application date. Premium Draft Approvals – Go to www.ailife.com/agency choose company forms, POS, request to redraft. Fill out form and hit send. How to re-open policy – Get a good health statement form and all back premiums. If the application is over 6 months old you must write a new application and write Re-Open and the Old Application Number across the top of the new application. In both instances a policy being re-opened needs to be sent to Policy Issue. Do NOT include on your transmittal. Lay off /Strike waiver criteria and process – (Strike) Policy must be in force 90 days prior to strike start date, Maximum benefit is 12 months (Lay-Off) Policy must be in force 60 days prior to lay-off start date, Maximum benefit is 3 months. In both situations, we need verification from a union official or employer. The striking union member or laid-off employee must be insured with us for the benefit to be provided. When the premium is waived on our insured, the waiver will also apply to policies insuring the insured's spouse. Once the waiver of premium benefit is approved, continuance forms are required for continuation of the benefit. The continuance form requires verification from the union official or employer and is needed every 30 days. In other words, we need a new form completed by the union official or employer, each month. Reinstatement questions – Log on to www.ailife.com/agency go to Agent Resource Center and choose POS. There are reinstatement questions and answers along with examples. Voice mail set up – Catherine will create a voice mail box & you will be given directions on how to set up. Website or Application Username Password www.ariasagencies.com This is the local agency website. All letters and forms are obtainable on our website.

N/A N/A

www.ailife.com/agency This is the home office website with a vast array of information pertinent to agents, managers, and agency.

eApp log in eApp password

CAS (Consolidated Agency Service) This is used to find out information on active and past policyholders, information pertinent to policy owner service, etc.

agents agents

AIRecords https://prodwebapps.ailife.com/apsweb/login.aspx This is used to check the status of underwriting of an application. This is helpful for Wednesday bulletin items or if a policyholder has a question regarding the status of approval.

airecords agents1

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VI. Dos and Don’ts - Important Reminders and Procedures

• Always smile and be enthusiastic with the union member. They want to be led and motivated.

• NEVER MAKE A PRESENTATION WHEN…Only one spouse is home, they are eating dinner, they are in a bad mood or friends are over

• If the member is single, living at home and under 25, a parent or Fiancé must be present.

• On last app’t of the day, you must call all no-shows that day and attempt to present or reset (if you did not leave a preset hanger card).

• NEVER stand up a union member without calling within a ½ hour of app’t time.

• You cannot go back to a union member’s house to enroll unless you have a signed application, a deposit and an app’t to go back at a specific time.

• If you can’t find people at home, ask neighbors when they are home (They will know).

• If you have problems with answering machines you could set the appointment with the machine and leave a telephone number.

• Female Union Member - Show the main BENEFITS on her, or you could show them on her husband if he makes the majority of the income.

• Uninsurable - Put the Plan on the healthy spouse

• When to Make a One Spouse Home Presentation - NEVER…except only when it is impossible to present to both at anytime and person makes it clear that they are able to make decision without spouse. Make sure it is clear that you cannot come back to home/they can make decision without spouse and that decision will stand in the face of spousal adversity.

• Spouse has to Leave during Presentation - First it is important to set your appointments with a leeway of a ½ hr so that this situation could be avoided. If spouse must leave prior to presentation being completed, get a commitment from both that the remaining spouse could make the decision on the benefits and that decision will stand. Assume the sale having spouse sign appropriate application before they leave. If not, reschedule the rest of the presentation.

• Never indicate to the Union, Credit Union or Association Member they need to see us in order to be covered by the AD & D Benefit. This is not true!

• Never by statement or by omission give a member an idea that you are from their group. With unions, never indicate that you are a benefits representative…this gives them an idea that you might be from their union; typically unions have a position labeled ‘Benefits Rep’.

• Never overstay your welcome in a home. Never be pushy. It’s OK to have passion and conviction for what you do, but always leave the union member feeling better that they have had the experience of your visit than if they didn’t.

Never let the member feel that the union or group endorses the purchasing of insurance from American Income Life. All unions, of course, support the ‘Be Union - Buy Union’ philosophy which points out to the member that American Income Life is the only 100% (top to bottom) Union Company and this being so, if a member buys insurance, they should buy from us…but this is not the right to say that the group is saying to buy insurance. This is of course up to each individual member. He/she must be the judge of that.

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VII. Profit and Your Renewals The measure of your profitability will be dependent on following all of the below advice WHEN A POLICY IS NOT ISSUED THE WAY IT WAS SOLD:

Special Risk Policies - Contact policyholder as soon as possible to deliver the policy. Do not tell the policyholder over the phone that the policy is special risk. Handle this in person. Use same ‘Special Risk Handling’ presentation you used at point of sale.

Policyholder has two choices: Keep the policy as issued and pay a higher premium or keep the original premium the same and reduce the benefits. If he elects to pay the higher premium, all you need do is to collect this extra money and turn it in. If he prefers to do the latter, you’ll need to have a RT-99 form signed and return the policy for revision of benefits.

If you fail to place the policy in 2 weeks or notify the office or your manager of legitimate reason for delay, the policy will be recoded and your original advance will be taken away.

Incomplete - Check with the office immediately to find out what was missing and then attempt to help procure this information. Contact Applicant and let know what has happened and that we are working on it and tell them not to cash the check they received back as when we get everything we need we will pick up the check.

Decline - Contact the member immediately to console and encourage. Attempt to place other benefits on the family instead. Remember, they agreed to spend a certain amount of money each month, so it should be easy to write some other insurance on the spouse and children in this amount. Plus if the spouse was declined, the insurance on the other is even more important…for if they die, the uninsurable one may have serious health issues and loss of work…will need more money.

Withdraw, Cancel or Lapse First of all, cancellations are caused when the policyholder feels there is not sufficient need, value or desirability to warrant the premium he is paying for the policy or the policyholder feels he was misinformed of the benefits or procedures or he does not understand them. SO WHEN YOU RECEIVE A CANCEL, call and find out why. Correct the problem...i.e. change the billing method, reduce or do whatever is necessary to save all or part of the business. If possible, go directly to the home without calling. If you are able to talk personally, it is almost a sure save.

10 Tips to prevent Cancels:

1. Know the presentation and represent the benefits properly and understandably.

2. The Remember information sheet (Summary Sheet) is explained well.

3. The possibility of an exam and subsequent phone calls are explained from the Checklist.

4. The Specimen policy is shown to the member.

5. The agent does not over sell...i.e. over 3 children or poor neighborhood, limit premium to $10 per week or less

6. Leave them with the impression that they have a real value.

7. Returns all phone calls within a day and always check your voicemail twice a day

8. Never make promises that you do not or cannot keep.

9. Mail ‘appreciation’ postcard same night as sale, before you go home.

10. Leave Service File with Exclusives Brochure.

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VII. Lapse Presentation "It's not how much you write it's how much you keep" Hello, is _________ there? This is ______ and I'm calling about that benefit program you have through American Income Life Ins. Co.. You probably enrolled in it through your local union (or Association or credit Union) about (how long ago)…do you remember!? Good, I just received a note that your program had dropped...and I was concerned as it's not too often members lose these benefits once they get them. So I called to find out if there was a problem. If the client said there was a change in their checking account or change of address, then resolve the problem over the phone and reinstate the policy. If they are on lay-off or strike then pursue by having the proper claim forms filled out if they qualify. If the client wishes to cancel… OK, that’s fine…if you would like to cancel, that is up to you. I do need some information though to close the file. First there are a couple of options I need to explain to you. First, as I mentioned to you, most members sign up to the benefits, and once they have them very few cancel. So when someone cancels they always want me to call and review the benefits real quick so you know what you had ... . REVIEW: • First you have the Freedom of Choice Benefit in the amount of $_________. This benefit is funded by

Cash Value Life Insurance. That way it builds up some cash options in the future. • And you have a Paycheck Protection fund in the amount of $________ which is usually paid out over a

12 month period. • Also there are Accidental Income and Death Benefits that pays…(review A71000) • You also have your Spouse/Children covered in this plan for $__________. • And finally you have the Deposit Account Feature which is a high interest savings account that averages

4% Interest. “You know you probably forgot about a lot of these benefits that you had. The important thing is to try and keep the benefits intact but keep it comfortable. Now, if you want, you could keep most of these benefits intact and we could reduce your premium (if money was the problem), or we could start it going again for you just as you had it. What do you think would be best for you? SAVED......Send out: 1. Lapse letter requesting one or two month(s) premium $. 2. Reinstatement Form 3. Bank Form (if needed) 4. Strike/Layoff Form (if needed) 5. Postage Paid Envelope with your name on it. REDUCED.....Additionally send: 1. Policy change form acknowledging the reduced benefits to be signed. 2. Request for policy or if they do not have one send a lost policy form to be signed. Tell them while you are on the phone they should receive the papers by mail in the next 2 to 3 days. Call them on the 3rd day and explain exactly what to sign, how much the check should be and to send everything back in the postage paid envelope. Then say "if you mail it today and I don't receive it by ______, I will give you a call."

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VII. Pre-Paid Commissions and Advance Rate Reductions Effective January 1, 2008 the pre-paid commission advances will automatically be reduced based on 4-month retention rates. We will continue to use the net to gross ratio for the first 8 months. Beginning with the 9th month, we will use the following 4-month retention rates for reduction. Evaluation will be based on the highest level retention for anyone with a management contract.

The schedule of reductions is listed below: 4-Month Retention Rates 70.00% and above - full advance 69.99- 69.00% - 20% reduction in the pre-paid commission advance rate 68.99% - 68.00% - 40% reduction in the pre-paid commission advance rate 67% and Below - no pre-paid commission advance will be issued. Net to Gross Requirements 1st – 3rd Month: 86% and above 4th – 6th Month: 84% and above 7th – 8th Month: 82% and above

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VIII. AIL Compensation Plan The Insurance Business has long been the avenue for many to become wealthy. This is possible because of the nature of the business. Insurance generally is not a singular purchase; it is rented…paid for on a regular, customarily monthly basis. As long as you keep up your payments, you have coverage; stop paying and your coverage ceases. So commission is generally structured to the sales agent on an ‘earned as they pay’ basis. This creates a situation of regular monthly commission stream rather than a one time larger amount at the point of sale. Companies will typically pay these commissions for a period of years. This is why the insurance industry produces so many wealthy individuals…the longer one is in the business, the more the monthly earned commissions stack up. A couple of areas that cause many to fall short of this insurance wealth dream are: one, not being able to stay in the business long enough in the lean ‘building your business’ years to get to an income stream that could pay one’s bills… let alone the fruition of the excitement of residual income; Two, running out of friends, family (clients) to sell the insurance to. At American Income Life, we have created the optimum system for those we consider right for our Company. It combines a No Prospecting/No Cold Calls Marketing System with Pre-Paid Commission & Bonus Package that provides a high income immediately with a Lifetime Renewal Contract for ensuring future wealth.

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2015 Guaranteed Advance In addition to the weekly bonus – new agents in their first 90 days would also be eligible for a guaranteed advance based on submitting at least $1,200 of gross ALP for a week.

The $1,200 of gross ALP will be based on submit as it appears on the weekly advance report.

Net to Gross will not be considered in their first 2 months, month 3, agent will have to have 70% or higher to receive a guaranteed advance. If the agent’s net to gross is too low to qualify for a PPD advance (regular advance), the extra guaranteed advance would be stopped. If the agent submits the $1,200 of gross ALP, they would receive an additional advance (AAR advance – charged to their ledger account). A $200 extra advance would be available through the first 90 days. Business with the following notify trailers will be excluded from guaranteed advance qualification: NOPRD, IPACL, IPSTP, IPNAT, IPINV, IPAFZ, CTLBS, & VERPH. Please note that business with IPNSF will still be allowed to qualify towards guaranteed advance. The extra advance, if earned, will display on the agent’s weekly advance report, and will be paid by paper check or ACH depending on how the agent is set-up for their regular advance.

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2015 Agent Tenure Bonus The Agent Tenure Bonus rewards Agents who write $5,000 Net ALP monthly in months 4-6 of their tenure (based on month end AP&P report).

Here’s how it works: Agent writes a minimum of $5,000 Net ALP

Month of Tenure Agent Bonus

4th $ 500 5th $ 750 6th $1,000

That means an agent who remains with the company for 6 months can earn a bonus of $2,250!

• Eligibility must occur in the 4th, 5th, or 6th month of tenure. Tenure month is determined by agent’s contract date (first

application date) with the Company. Contract month is Month One and based on their contract date in the system. Contract month counts as a full month of tenure regardless of whether they code on the first day of the month or last day of the month.

• If an Agent fails to write $5,000 Net ALP in a given month, but does so in the next month, the agent collects the bonus amount applicable to their tenure month. Example: Agent writes $4,900 in 4th month (no bonus), but writes $5,000 in 5th month ($750 bonus), etc. to 6th month.

• Bonus paid monthly after achievement. • Agent must have minimum 84% net-to-gross at the end of their 4th-6th months of tenure. • This bonus will be effective after January 2015 AP&P Reports have been run. First payment with new guidelines

will be in February 2015.

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2015 World’s Greatest Bonus The Weekly Bonus is a three-tier bonus based on gross ALP. All eligibility is based on gross ALP in the week as shown on their weekly advance report. The bonus calculation is based on the Net ALP for the week. Agents 0-9 Mos.*

∗ Agents in their first 9 months must also meet the required net to gross ratio listed below: o 1st - 3rd months – 86% net to gross is required** o 4th - 6th months – 84% net to gross is required o 7th - 9th months – 80% net to gross is required

§ Note: Net to gross comparison uses the prior month end AP&P data **New agents will not have a net-to-gross requirement in their first full month.

Agents 10+ Mos.*

∗ Requires 70% retention* All tiers are eligible for an increase of the bonus percentage which varies based on consecutive qualifications:

Min. Submit 1st Bonus Qual. 2nd Consecutive Qual. 3rd Consecutive Qual. o $1,200 (Supplemental) 2.5% 7.5% 12.5% o $1,500 (Bonus Earner) 5.0% 10.0% 15.0% o $1,800 (Bonus Earner) 7.5% 12.5% 17.5%

An agent that fails to qualify in a week drops back one bonus level. Agents 10+ months with a minimum of $1,500 gross ALP can receive a bonus increase based on their retention rate:

§ 70 - 75.99% - Regular bonus § 76 - 79.99% - 10% of bonus extra § 80 - 83.99% - 20% of bonus extra § 84+% - 30% of bonus extra

*Agents 10+ months with retention between 69.9% and 68% will be paid a reduced bonus at a 20% decrease for each point below 70 (no bonus 67% or lower retention):

§ 69% - 80% of bonus § 68% - 60% of bonus § 67% or lower - no bonus

*Contract month used in evaluation of tenure category.

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AGENT → SUPERVISING AGENT

*Must collect 60 referrals weekly*

Must conduct 1st interviews

6 months minimum tenure

Last 90 days prior to promotion must have 24k net business Example: 4th Month 8k net, 5th Month 8k net, 6th Month 8k net

SA → GENERAL AGENT

Must have 25,000 in first 6 month production total back to back months

Promote an agent to an SA

GA → MASTER GENERAL AGENT

Must be in Spotlight Magazine top 5 GA 3 months in a row 100k total Net business 3 months in a row 10 hires minimum – 3 months in a row Must have consistent good retention Must interview for MGA position

MGA → REGIONAL GENERAL AGENT

PROMOTE A MGA

** ANY PERSONAL RECRUITS GO WITH THE MANAGER BEING PROMOTED

** WHEN PROMOTED YOU MUST REPLACE YOURSELF ** NON-PERSONAL RECRUITS IS AT THE DESCRETION OF THE MGA

Mission: Serve, not sell. That we would impact everyone we meet...

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