We look forward to the Van Mueller newsletter every month. It's chock-full of sound bites, sales tips, and eye-opening statistics. Here are our favorite parts of the March 2019 edition. We're sharing the full introduction, and 2 of the 7 monthly sales ideas. If you like what you read, we encourage you to click here and become a subscriber.
Reprinted with the author's permission.
No time to read? Watch our video overview:
March, 2019 – 7 Ideas and Views Newsletter by Van Mueller
This is such an amazing time to be an insurance and financial professional. With everything that is happening in our country and our world currently, cash value life insurance has become the most important planning tool that we have to help the American people achieve their financial and retirement goals.
Please don’t ever limit the capabilities of cash value life insurance ever again and allow any people to discuss this product as if it is an investment. That is actually demeaning to cash value life insurance. Remember, Americans have less and less discretionary money to accomplish more and more financial, protection and retirement responsibilities. These responsibilities are increasing, and the purchasing power of the money is decreasing, and Americans’ income purchasing power is essentially staying stagnant. That is what makes cash value life insurance the perfect product for the times we are currently in and the challenges we will face in the future.
Americans have less and less discretionary money to accomplish more and more financial, protection and retirement responsibilities...That is what makes cash value life insurance the perfect product for the times we are currently in and the challenges we will face in the future.
Cash value life insurance can be explained as pennies that buy dollars. For three or four or five cents per year you can buy a dollar that will be payable at your death. Or you can pay thirty or forty or fifty cents in one single premium and buy that same dollar at your death. Why is that important? It allows our customers to use their money while they are alive to offset increased expenses and unforeseen challenges and surprise opportunities and when they die the death benefit reimburses the family, business or charity all the money that was used during life. This is accomplished income tax free. Don’t you see? That allows our customers to offset inflation and deflation and losses while alive, using their principle to do it. The flexibility and versatility of cash value life insurance is ridiculously amazing and appropriate for the economic times we find ourselves in.
Additionally, cash value life insurance is also one dollar that can handle the responsibilities that many dollars would require. A cash value life insurance dollar will take care of your family, business or charity if you die too soon, It will take care of the owner if they live too long with the ability to provide a lifetime guaranteed income that is income tax free. If waiver of premium is included in the cash value life insurance policy the policy is self-completing without the customer having to contribute any additional premiums if they become totally disabled. Cash value life insurance can provide benefits while you are alive if you have a critical illness such as a heart attack, stroke or cancer. Cash value life insurance policies have terminal illness benefits that allow terminally ill customers to withdraw most of the death benefit before they die so they can assist the people they love or the business they built develop a plan to use the money to replace the enormous value they won’t be able to deliver when they are gone.
Cash value life insurance is also one dollar that can handle the responsibilities that many dollars would require.
Finally, and I cannot emphasize this enough, the most important benefit provided by cash value life insurance program in the future will be money for long term care and assisted living. With 140 million Americans turning 65 in the next 25 years, it will be nearly impossible to provide all the money that will be necessary to care for all the Americans who will require care over the next 50 years. Cash value life insurance will provide that fighting chance to provide those benefits without wasting any of the money in premiums being paid for benefits that might not be used. A cash value life insurance policy will provide the opportunity to take advantage of investment opportunities without sacrificing coverage. I ask all my prospects and clients if they can think of any other strategy that can accomplish all of those responsibilities with the same dollars. Many times, they can’t believe what you are sharing with them and you have to ask them if they would like you to review all of the benefits and opportunities again. Don’t be afraid to do that. The mother of all learning is repetition.
I hope you have also noticed I have never once called cash value life insurance permanent insurance. The word permanent is terrifying to prospects and clients in a dramatically fast paced world. I also do not use terms like whole life or universal life or indexed universal life or variable life. A cash value life insurance policy is more understandable to the public. It does not sound as foreboding as permanent insurance. The cash value provided all the flexibility and opportunity that a cash value life insurance policy can provide. Shouldn’t those words be an important part of the description?
I hope you have also noticed I have never once called cash value life insurance permanent insurance. The word permanent is terrifying to prospects and clients in a dramatically fast paced world.
Another reason this is the greatest time ever to be an agent and to sell cash value life insurance is because we have so many things to ask our prospects and clients about.
In spite of that many agents and advisors come to me and explain that they don’t know what to talk about with their prospects and clients. First, and I am not being cute here: I don’t want you to talk with them about anything. Wouldn’t it be more beneficial to ask our prospects and clients about EVERYTHING? I am going to try to make a long list of things that you can ask prospects and clients about that will inspire then to take action. This is important! You do not need a lot of information to have a great conversation with prospects and clients about issues that will affect them. They have their own opinions about those issues. We must ask questions that will inspire our prospects and clients to share their opinions about all these issues. You will find that concerning many of these issues that they have not even thought about them once. The questions you ask them will not even be on their radars. That is why you are so valuable. You put issues they must give consideration to on their radars while there is still time for our customers to control the outcome.
First, and I am not being cute here: I don’t want you to talk with them about anything. Wouldn’t it be more beneficial to ask our prospects and clients about EVERYTHING?
Agents worry all the time that they need to know a lot of information about all sorts of things when really all they need to know are the questions. The prospects and clients will supply all the opinions. If you take good notes and complete a thorough fact finder you can return to your agency or your company and they will use your information to share solutions with you that can share with your prospect or client. THAT IS THE FASTEST WAY TO LEARN HOW WE DO THIS!
Let me give you an example using myself as being unknowing about something. In Wisconsin, where I live, almost everyone fishes. I don’t fish. I can’t even imagine going fishing. The thought of it actually makes me a little queasy. The only thing I do with fish is eat it on Fridays, breaded and deep fried. How can I have a conversation with all the people who fish in my state without coming across as fake or over representing my understanding of fishing? That is easy. First, shouldn’t it be obvious that you should never lie? So, I am upfront with them. I don’t fish. I have never fished, but would it be okay if I asked them a couple of questions about fishing? They always say yes. Why? Because who do they like to talk about more than anyone? Themselves of course. I would ask them questions that I could understand. Here are a few examples.
I would ask them if it was still fun to fish if they didn’t catch anything. Why was it still fun? Was it more fun to fish by themselves or with someone? Do they eat what they catch? Do they fish for food or do they fish for sport? I could ask one hundred questions about something I have never done and the person I was talking with would enjoy the conversation. It is the same with our business. There are common sense things like how do you make sure you have enough money in retirement? Are you working for the Internal Revenue Service or your family and your business? Is it okay to lose money every time one of these downturns happens and would you be better off if you never lost money ever again? I am sure you are getting the idea. Essentially, you are trying to have a great conversation with prospects and clients about subjects they are not thinking about or giving consideration to. Our job is to inspire people to think about those issues. Telling them to do that will probably not work. Asking them to consider things they know they should makes you as advisors vitally important.
Essentially, you are trying to have a great conversation with prospects and clients about subjects they are not thinking about or giving consideration to. Our job is to inspire people to think about those issues.
Let’s talk about a number of issues you can ask prospects and clients to give consideration to.
Let’s begin by asking questions about countries around the world and how they could affect the global and United States’ economy.
1. European Union and Great Britain. Most Americans do not realize that the European Union, while it includes Great Britain, is the largest economy on the planet. There are 28 nations in the European Union until next month when Great Britain leaves the European Union. These 28 nations produce $22 trillion of Gross Domestic Product (GDP). Germany is the hub of the European Union and demographically is the second oldest country on the planet behind Japan. The German people are tired of bailing out and supporting the rest of the countries in the Union. They are requiring more contributions from those countries and they are resisting.
France and Italy are experiencing difficulties at agreeing on a number of issues. There is not a bank in Italy that is not bankrupt. The largest bank in the world, Deutsche Bank, in Germany, has severe financial difficulties and is the largest holder of derivatives on the planet. Many analysts predict that the European Union will not exist in three years. Other countries besides Great Britain will break away. Ask people what they think will happen to our economy and the markets when the world’s largest economy breaks apart? Won’t that cause amazing uncertainty?
2. China. Did you know that China had the world’s third biggest economy behind the European Union and the United States? China is predicted to be the largest economy on earth in as soon as a decade. They have the most people, 1.3 billion, and are becoming a world super power. What many people do not know is that China in its quest to become a powerful nation has created the largest housing and debt bubble that has ever existed on planet earth. While this was happening, their population was growing so fast they cannot provide enough food, housing, healthcare or retirement income for their people. The United States is a $21 trillion economy and we are $22 trillion in debt. China is a $14 trillion economy and they are $40 trillion in debt.
What many people do not know is that China in its quest to become a powerful nation has created the largest housing and debt bubble that has ever existed on planet earth.
In order to keep their economy growing at a high rate and keep people employed, China’s government funds the building of a brand new one million person “Ghost City” every month. These cities have no people living in them and because the Chinese CANNOT invest outside of the United States they force their people to invest in the condos in those cities where it is highly likely no one will ever live. Also, China has 565 million Baby Boomers who will be retiring over the next 10 years. That is almost twice the population of the United States. What will happen when the housing and debt bubble burst? What pain will be inflicted on China’s and the rest of the world’s economies, for that matter? Will China’s economy slow down when more than 40 percent of its population retires and takes from the system rather than contributing to the system? China is notorious for not providing the world with economic numbers that are accurate, especially if they are bad. Could a major slowdown in China’s economy effect our economy and the world’s markets? Many analysts are very concerned about how quickly this could happen. Ask prospects and clients if they are prepared to give back to the markets everything they have made over the last decade or would they be more excited to first be kept safe from that downturn, preserving their gains. Ask them if they know what the best part is. Wouldn’t it be magnificent to be in a position to take advantage of the downturn and its following recovery? Wouldn’t that be a smarter strategy than losing and then getting back to even over and over again?
3. South America. There are some very populated countries in South America. Brazil and Argentina rank among the top 10 in the world. In the last 5 years, Brazil hosted both the Olympics and the World Cup. They built 9 stadiums for the events at a cost of billions of dollars. Seven of those stadiums are no longer in use and are going to seed. People are starving and unemployed and homeless and many do not have clean water or sewage. There is unrest and revolution everywhere you look in Central and South America. Again, I would ask all of my prospects and clients if all that uncertainty would be harmful or beneficial to the investment markets of the world.
4. Japan. I can remember 25 years ago when the American people believed Japan was taking over and buying up America. At that time, Japanese investors bought Pebble Beach for $1 billion dollars. A lot has happened to Japan and its economy over the last 25 years. Japan is demographically the oldest country on the planet. They have way more people over age 65 than people under 18. There are not enough young people to pay into the system to take care of all the people over age 65. That same issue is confronting Europe and the United States. Very shortly there will only be enough people in our country to provide two taxpayers for every recipient of benefits. How long will that work? It hasn’t worked for the Japanese. The Japanese sold Pebble Beach back to American Investors that included Clint Eastwood and Peter Ueberroth for $300 million, a 70 percent loss. The Japanese stock market, the Nikkei rose to 40,000 twenty-five years ago and has struggled to make it back to 21,000 barely half of what it was 25 years ago. Japan currently prints 30 percent of its economy. They are the fourth largest economy behind the European Union, the United States and China. They have a $5 trillion economy and have had and will continue to have very little growth for the foreseeable future. This is what happens when the demographics turn so dramatically negative for a country and it begs the question: How will the European Union and the United States navigate the same demographic challenge that Japan dealt with so poorly?
How will the European Union and the United States navigate the same demographic challenge that Japan dealt with so poorly?
5. United States. The United States is a $21 trillion economy and we are $22 trillion in debt. When Great Britain leaves the European Union next month the United States will become the largest economy on the planet. The GDP of the planet is $72 trillion. The United States is 28 percent of the global GDP. The United States, European Union, China and Japan are 83 percent of the GDP of the world. What happens in these economies should be of concern to all of us and all are struggling. Europe and Japan have negative interest rates. All have more debt than they know what to do with.
The United States is starting to deal with many of these challenges. We have debt. We are running deficits. We are $22 trillion in debt today and it is predicted we will be $40 trillion in debt by 2029. Five percent interest on $40 trillion is one half of the current budget. We have 140 million Americans turning 65 in the next 25 years and we cannot handle the 62 million we now have on Social Security. Out of a $21 trillion economy we spend $3.5 trillion per year on healthcare. That number is expected to increase to $7 trillion by 2029. Our growth is not increasing fast enough to keep up with the increasing fiscal responsibility for healthcare. Forty of the fifty states do not have enough money to pay their bills. 63 of the 75 largest cities in the United States do not have enough money to pay their bills. These cities and states have seriously underfunded retirement pensions and retiree’s healthcare plans. How will they pay these benefits if they don’t have the money?
For cities and states, they will either have to increase taxes, lower benefits, borrow more money or a combination of all of those. None of that will be enough. The most likely outcome will see all these cities and states going to the federal government, hat in hand, to ask for a bailout. Raising taxes will not be enough. They will have to ask the only entity that can print money for assistance: Our federal government. Because the need will be so wide spread the politicians will back each other to make sure their constituents get the benefits. This will cause enormous unforeseen circumstances with the most important one being that our money will lose purchasing power. So, even though Americans get their Social Security and pensions, they will buy less and less goods and services.
Even though Americans get their Social Security and pensions, they will buy less and less goods and services.
There are many other issues that we can use to start conversations with our prospects and clients. Here is a list of some of the additional things we will talk about at the beginning of next month’s newsletter. Here is the list.
1. Social Security
4. Interest on the Debt
5. War and Defense
6. Health Care Reform
8. Healthcare Costs
10. Natural Disasters
11. Fannie Mae, Freddie Mac, FHA
12. State and City Budget Shortfalls
14. Commercial Real Estate
15. Corporate Debt
16. Home Mortgages and Housing
17. Student Loan Crisis
18. Filial Laws
19. Black Swan Events
That is not a complete list, but we will use these issues to develop questions with and for our prospects and clients. The goal is to have a great conversation and elicit their opinions. Let’s get started with idea #1.
We're passing on two of the newsletter's monthly sales ideas - every issue of the newsletter contains 7 ideas, plus one idea for the Canadian market. Subscribe to get them all.
Idea #5: The Coming Pension Nightmare
Here are two very important articles. One article provides information that is contrary to the information provided by the Social Security Trustees. The Society of Actuaries shares that people are living longer than Social Security is using life expectancy to determine its unfunded liabilities. If that is true, Social Security has to take care of Americans longer than it is telling us.
That means we will need trillions more dollars to fund Social Security and Medicare benefits than we are being told.
Also, according to the World Economic Forum, global pension funds are almost $70 Trillion short of the money they need to provide those pensions. Excluding Social Security, state, federal and local pensions in the United States are $7 Trillion short. Boston College just prepared a report that believes 25 percent of private pensions will go broke in the next 10 years.
Pensions also require around 8 percent returns to maintain their ability to pay what is obligated This article provides experts who believe the next decade will provide returns between 3 percent and negative 2 percent: That is a far cry from the eight percent needed. Last week the largest pension fund in the world, Japan's Government Pension Investment Fund lost $136 Billion in just three months. This will be happening to pensions all over the world. Please make sure your prospects and clients are prepared.
Title: Why The Public Pension Timebomb Is Growing Even More Deadly
https://nypost.com (New York Post, February 5, 2019)
Idea #7: Nine Ways to Inspire People to Buy Cash Value Life Insurance
Please print and carry this article with you. Please read it once a week until you have its contents memorized. It provides wonderful information to help you become a better insurance and financial professional. Here are a couple of this article's recommendations.
Please stop trying to impress people. It actually pushes them away. Spend 80 percent of your time on the "WHY" and only 5 percent on the "WHAT" Most agents do this in reverse. Finally, don't just ask questions. ASK THE RIGHT QUESTIONS! This article is a keeper.
Title: 9 Ways To Crack The Prospect Code And Win More Life And Annuity Sales
https://www.thinkadvisor.com/ (Think Advisor, February 4, 2019)
Get more sales tips and insights when you subscribe to Van Mueller's monthly newsletter.
This was just a taste of what he publishes each and every month. If you want to read more, click here to become a subscriber.