To view this email as a web page, click here.                                                                                                     November 6, 2007

We want to thank all the attendees, speakers and carriers that attended our fantastic Annual Meeting in sunny Scottsdale, Arizona last week! The meeting was a huge success. All of us in attendance learned lots of new sales concepts, reconnected with our peers, and had the opportunity to meet with our carrier partners and premium financing business partners. 

We look forward to seeing everyone again at our 2008 Annual meeting next year. Details on our next location will be coming soon!

Teague Wright, SVP Sales, The Potomac Group
 

AXA Equitable
- Year-End Processing Deadlines

Genworth Financial
- Prepared to Assist Policyholders and Producers Affected by the California Fires

John Hancock
- Guidelines for Timely Year-End Processing

ING
- Visibly Lower Term Rates
- Important Transition Rules for ING TermSmart

Prudential Financial
- Repriced SUL Protector
 

Case of the Week: Why You Shouldn't Use Term Insurance to Fund Buy-Sell Agreements

Since level-premium term insurance is initially inexpensive, it is often the knee-jerk response to funding buy-sell agreements.  But quite often there are long-term considerations that may well outweigh any initial cost savings.

The Least Expensive Becomes the Most Expensive
The first premium after the initial level-premium period increases astronomically, and increases annually each year thereafter.  Typically any cost advantages from the initial level-premium period completely disappear within a couple of years beyond the initial period.

Future Health Roulette
The only alternative to the above price increase is to medically re-qualify for new insurance.  How many people actually know what their health will be 21 or 31 years from now?

Future Conversion Privileges May Not Provide Salvation 
Carriers with the least expensive term products may not have particularly competitive permanent products.  Additionally, a carrier’s most competitive permanent products may not be available for term conversions.

Obligation Is Permanent, Even If the Insurance Is Temporary
Shareholder Agreements are not written to expire at the end of a term policy’s level-premium period.  The surviving parties are still obligated to buy, and the deceased party’s heirs are still obligated to sell.

Successful Businesses Increase in Value
Whatever the business is worth today, chances are that it will be worth more (perhaps much more) tomorrow.  Permanent insurance allows policy owners (1) the ability to manage long-term costs, and (2) to have a policy whose death benefit increases over time.

Most Business Owners Remain at the Helm
While many rank-and-file employees may dream of hopping into their Winnebago one day and driving off into the sunset, many successful business owners are more likely to be carried out of the office on a gurney.

The need is permanent – and so is the (best) solution!
 

 

Premium Financing Resources

American General
- Case Study #1
- Case Study #2
- Case Study #3

 

Upcoming Calls and Events

Teleconference: Principal: Increase Your Bottom Line
Date: 11.15.07 - 3:00 pm EST
Register Online Now or call 888.241.1254

Teleconference: AXA Presents Trust Funding Strategies
Date: 11.28.07 - 3:00 pm EST
Register Online Now or call 888.241.1254

Teleconference: How Driving Records Affect the Underwriting Process
Date: 11.29.07 - 3:00 pm EST
Register Online Now or call 888.241.1254

Teleconference: Ask the Retirement Doctor: Part 3
Date: 12.04.07 - 3:00 pm EST
Register Online Now or call 888.241.1254

 

carrier incentives

American National
- ANICO’s 2008 Marketing Conference in Hawaii

 

questions?

Call The Potomac Group at
800.722.1600, ext. 6446 for more information.
 

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The Potomac Group, 6550 Rockspring Drive, Suite 320, Bethesda, MD 20817