Slide 1:© Legal & General Assurance Society Q18772 June 2008 This presentation is in a ‘read-only’ format and should not be changed in any way. This is not a consumer advertisement. It is intended for use by professional advisers and should not be relied upon by private investors. Legal & General Assurance Society Limited Registered in England No. 00166055 Registered Office: One Coleman Street London EC2R 5AA A member of the Association of British Insurers www.legalandgeneral.com


Closing the Protection Gap :Closing the Protection Gap 2008


Making the most of 2008 :3 Making the most of 2008 Sales Tips Our journey: Selling Protection


Slide 4:Sales tips


Handling objections :5 Handling objections Why objections occur Other sales solutions Incomplete fact-finding Client confusion, genuine reasons Client doesn’t understandwhat’s in it for them Up-sell where it’s appropriate Identify client buying patterns Regularly review your client bank


Sales tips to use with your client :6 Sales tips to use with your client For example – no cover at all in placeYour client’s responsibility Mortgage £600 Council tax £100 Utilities £ 90 Childcare £530 Telephone £ 30 Mobile £ 60 Car expense £ 80 Food £350 Day to day £300 Insurances £ 60 Total £2,200 Legal & General’s responsibility NIL Or it could be... “If your partner died, what would your responsibilities be?”


Sales tips to use with your client :7 Sales tips to use with your client For example - only have mortgageprotection cover in place Your client’s responsibility Mortgage £600 Council tax £100 Utilities £ 90 Childcare £530 Telephone £ 30 Mobile £ 60 Car expense £ 80 Food £350 Day to day £300 Insurances £ 60 Total £1,600 Legal & General’s responsibility NIL Or it could be ..


Sales tips to use with your client :8 Sales tips to use with your client Your client’s responsibility £18.73 a month* for the chosen term Legal & General’s responsibility To provide a monthly benefit to cover your monthly expenses of £2200 *£18.73 a month is based on a healthy female 35 years next birthday, non smoker with £2,200 per month, Family and Personal Income Plan (FPIP) for 25 years with optional waiver of premium benefit (Quote date: 16/03/2008)


Sales tips to use with your client :9 Sales tips to use with your client “YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE”


Sales tips to use with your client :10 Sales tips to use with your client The vicious circle


Sales tips to use with your client :11 Sales tips to use with your client The vicious circle… or is it?


Sales tips to use with your client :12 Sales tips to use with your client £1,000 £10,000 £100,000 £1,000,000


Sales tips to use with your client :13 Sales tips to use with your client Comparing to subscription television. As an example: * Based on a healthy male, 35 years next birthday, non smoker, Family and Personal Income Plan (FPIP) for 25 years with optional waiver of premium benefit (Quote date: 17/03/2008).


Sales tips to use with your client :14 Sales tips to use with your client Comparing to subscription television: As an example: * Based on a healthy male, 35 years next birthday, non smoker, Family and Personal Income Plan (FPIP) for 25 years with optional waiver of premium benefit (Quote date: 17/03/2008).


Slide 15:Selling protection


Selling protection :16 Selling protection A loan arranger or a salesman…? People want to buy houses People need mortgages Mortgages are sourced and arranged People need protection People rarely want to buy protection Protection needs to be sold


Selling protection :17 Selling protection “I can research the market to secure you the cheapest premium….” x advise…don’t ‘arrange’ The client needs to appreciate what role you perform in this and the benefits of your professional advice and relationship. The bigger belief they have in you, the stronger belief they will have in your recommendation. Supermarkets and websites will sacrifice commission based on their low overheads to ensure the best rates in the marketplace. They can ‘arrange’ life productscheaper than you can. How do you approach ‘The Sale’? Qualified professional As an adviser: that will carry out a fact find to identify fully the clients needs that will advise andrecommend how to address these needs that is here for the long term Sell yourself first as a…


Aerobics for Advisers :18 Aerobics for Advisers A member of your family has suffered a critical illness? You have a close friend who has suffered a critical illness? You have a work colleague who has suffered a critical illness? You have a ‘friend of a friend’ who has suffered a critical illness? Hands up if: Critical Illness Recovery Approximately two in three patients will eventually leave hospital, yet survival does not necessarily mean a return to full health Source: British Journal of Hospital Medicine, 2008


Claims :19 Claims 43 47 39 43 Average age of a Legal & General claimant = 45 Source: Legal & General Claims Department, 2008


Claims :20 Claims Legal & General paid out £110,100,00 million in critical illness claims in 2007 The total number of claims paid was 1805 The average claim payout was £60,000 The largest claim payout was £500,000 Source: Legal & General Claims Department, 2008 The top five reasons, accounting for 86% of all claims paid, in 2007 were: Cancer (50.2%) Terminal illness (17.5%) Heart Attack (8.9%) Stroke (5.3%) MS (4.4%)


Claims :21 Claims Death claims Critical illness claims Source: Legal & General Claims Department, 2008


Awards :22 Awards ‘Life Insurer of the year’ by British Insurance Awards ‘Best Term Assurance Provider’ by Financial Adviser Life & Pensions Awards ‘Best Life Assurance Provider’ by Financial Adviser Life & Pensions Awards ‘Best Protection Provider’ by Financial Adviser Life & Pensions Awards ‘Best Protection Provider’ by Mortgage Solutions Online Technology Awards Awarded ‘Best Service Provider’ by the LifeSearch Awards Just some of the awards we have won over the last 12 months Awarded ‘Best Life Provider’ by the Money Marketing Awards ‘Best Life Assurance Provider’ by Professional Adviser Awards ‘Best Critical Illness Provider’ by Moneyfacts Awards Awarded ‘Most Competitive Term Assurance IFA Provider’ by Moneyfacts Awards Awarded ‘Best Critical Illness Provider’ by Moneyfacts Awards Awarded ‘Best Protection Service’ by Moneyfacts Awards


The earnings potential :23 The earnings potential It is essential you focus on treating customers fairly –implementing the FSA’s initiative into your core business processes The earnings potential There is an excellent opportunity to increase your number of life (plus critical illness cover) sales increasing your commission whilst benefiting the client and their protection needs. This is a huge opportunity for you to grow your business and expand the market.


Remember… :24 Remember… A client is never going to come in and ask for as much cover as possible. It is down to you, the adviser, to sell this proposition and the benefits to the client so they understand what they have and the importance of it.


Slide 25:Thank you