Hines KT scripted
INTRO for training KT: Thank you so much for allowing us to be here. This will help (Trainee) a lot with his training. He is very excited about working with us. Ask as many questions you need, so Trainee can learn how to answer them when he’s out on his own.
Or
Intro for Referral KT: Thank you so much for allowing us to be here. John and Mary saw a lot of value in the financial Education. They thought you could benefit, so they referred me to you. They said a lot of great things about you guys.
Then say after both intros:
Now before we get started, I’d like us to get to know each other just a little bit. Tell me John, what are your financial goals and dreams, and your family’s goals as well.
Alright, let’s get started
1 of 3 things generally happens during the course of educating families financially.
1st, we work off of referral basis. I know you need to see it first, but at the end if you fell in love with the financial education and you thought all your friends and family would benefit, is there any reason you wouldn’t feel comfortable referring them to me?
Great!
Second, if you thought that the financial education would help and put you on a better course financially, is there any reason you wouldn’t take advantage of our services?
Excellent!
And 3rd, our company’s going through a major expansion phase. We’re looking for some people full and part-time. This may or may not be a good fit for you, but if you thought of some people, would you be open to pointing me in their direction?
1st Slide: CREDIBILITY PAGE
The name of our company is Primerica Financial Services. Have you ever heard of our company? We were founded in 1977 with 85 teachers and coaches in the Georgia Area. They’ve managed to grow our company to approximately 100,000 licensed representatives.
We have more than 4.3 million life insurance clients and more than 2 million investment clients.
We’re the largest financial services marketing company in North America. In layman’s term, we have the largest financial sales force. Our 3 closest competitors are Afflac with approximately 70,000, Allstate with approximately 32,000, and State Farm with approximately 18,000. We’re the largest with approximately 100,000.
We’re a publicly traded company on the New York Stock Exchange. So if you go to their website NYSE.COM, you type in our ticker symbol PRI, you can read all about our company.
Also, we’ve been featured in a lot of different Newspapers and magazine companies like success from home, Premier Business, USA Today, and many more. We believe the research has been done. We’re an accredited member of the Better Business Bureau; we’ve maintained an A+ rating with them since 1980, so we’re extremely proud of that.
Also, have you heard of the company called A.M. Best? They’re one of the oldest, widely most respected company within the financial industry that rates Banks and Insurance companies. They only assigned an A+ superior rating to companies in their opinions can actually meet their clients’ needs financially.
Also the website findthebest.com rates Primerica Life the best in the industry with 100% smart buy.
We’ve accomplished all of that without any TV or Radio Advertising. Now as a consumer, do you care about how funny and entertaining the commercials are? Or how well the products actually work? How well the products actually work!! Which is why, while most companies spend millions of dollars on advertisements, we spend millions of dollars on our products, so we compete product for product.
Slide 2
So at Primerica, we’re a one-stop Financial Supermarket that makes a house call. Are you familiar with any of these companies on this page? MetLife, Lincoln, ING, Pioneer, Genworth, Equifax. Has any of these companies contacted you and offered to sit down and provide you with a step by step game plan to help you reach financial independence? No! So what we do is bring the best companies in the world to working class Middle America. We bring Wall Street to Main Street.
Slide 3
Our mission at Primerica is to help Families earn more income, become properly protected, debt free, and financially independent. Does everyone want to achieve Financial Independence? Are people having challenges in this area?
These are some of the statistics out there from 3rd party sources:
CNN reported that the average household has a credit card balance of over $15,000. Now some people have more than that, some people have less than that; but that’s the average. When you’re in debt, is it easier to save or harder to save? Harder!!
Which is why Time Magazine reported that more than half of all Americans have no emergency savings? Now, do emergencies come up whether you have a savings or not? How do most people solve their emergency if they don’t have a savings? They go further into credit card debt. And if that continues to spiral out of control and they can’t pay it down, what do they have to file to get out of the credit card debt? BANKRUPTCY!!!
CNN reported in the beginning of 2011 that 1.5 million households filed for Bankruptcy in 2010. Would you agree that their lives are probably depressed for the next 7 to 10 years? Absolutely!!
LIMRA reported that 95 million U.S. adults have no life insurance. But, they have children, spouses or both who depend on their income and if they die without life insurance, what would those families loose other than their sense of pride and dignity? Everything, right?
And more than half of all Americans have less than $25,000 set aside for retirement. If you retire at 65 and die at 85, how long is $25,000 is going to last you? Not that long. So you’re headed back to work.
How real and serious are these problems and who’s solving them? No body, the government can’t even balance their own budget, they are $16 trillion in debt. Now, there are companies that work in some of these areas. But, do you know of a company that helps people in most or all of these areas? No! That’s what we do at Primerica. We help people in all these areas.
Now, what are the problems? Well, the 1st problem is that in our school system there’s no financial education. As you went throughout your schooling, have you ever taken a class not on business finance, but on personal finance? No! Ok! And if you think about it, there’s no requirement on any level of school to take a class in the area of personal finance to graduate. That’s the 1st problem. Ok! Do you think your friends and family would benefit from a financial education? Do you think they have one? Ok!
The 2nd problem is most people don’t have a financial game plan. Do you have a documented word for word game plan that you can follow to become financially independent? Do you think most of your friends and family have that plan? But if one could be provided for free, do you think people would benefit from one? Ok!
And the 3rd problem is most people don’t have a Financial Coach. Have you ever hired a financial coach or work with a financial coach? Do you think most of your friends and family work with a financial coach? Do you think they would benefit from working with a financial coach?
So we offer a financial plan for free. It’s like a Financial GPS. Most companies charge anywhere from $200 to $2,000 for a financial plan. This plan looks at where you are financially today, it asks you where you want to be financially tomorrow and then it’ll map out the actions, steps and directions you need to follow step by step to become financially independent.
Now, the problem is none of us actually plan to fail, we just fail to plan. See no one has a goal to wake up 65 years old, flat broke, divorced twice, working at Wal-Mart, Target, or Lowes. But as a by-product of not planning, that happens.
Let me ask you a question, you just agreed that most of your friends and family don’t have a financial education, don’t have a financial plan, don’t have a financial coach, and they would benefit from all those things. At the end if you fell in love with our financial education, is there any reason you wouldn’t refer me to your friends and family?
Slide 4: Financial Independence Number
One of the most important features that our plan helps with is something called a Financial Independence Number; which is the amount of money you need to accumulate so that, when you quit working, you don’t run out of money and have to go back to work.
Do you know your Financial Independence Number? No!
When would you like to retire? Besides today, yesterday, or tomorrow. Age 65? Do you see how you associate retirement with an age? Those are old rules. So what has changed? Well! Social security is in the process of going bankrupt, so they more than likely won’t send you a check every single month until the day you die once you retire. Pensions are becoming a thing of the past. Companies can’t afford to send you a check every single month until the day you die. And our country has a negative 1% savings rate.
Because of that retirement has shifted from an age to a money amount called your Financial Independence Number. Let me give you an example of how one works:
Picture you’re having no young children, all your kids are grown, you have no debt, you have no mortgage, and you have $2,500 coming in each and every month, ok! Would you be ok? Yes. Actually, you wouldn’t because you’re not retiring today; you’re retiring 30 years from now. And 30 years from now, what happens to the cost of everything? They go up. So the cost of everything is going up 3% a year: INFLATION. And 30 years from now you’ll need $6,083 per month to buy what $2,500 buys today.
See today, that’s $30,000 a year; 30 years from now that’s $73,000 a year. And if you needed $73,000 a year for at least 20 years, from 65 to 85, then your Financial Independence Number is $1,080,000. Do you know your Financial Independence Number? if you want to retire and never run out of money, have to go back to work, how important is it to know your Financial Independence Number? do most of your family and friends know their Financial Independence Number? And do you believe you’re on track to hitting your Financial Independence Number? Now, if you don’t refer me to most of your friends and family, how would they ever learn that they have a Financial Independence Number? and how to identify it? They wouldn’t. Doesn’t it make sense to refer me to them?
Slide 5: Rule of 72
The next concept we teach is called the Rule of 72, also known as the Bankers Rule. This rule teaches you how long it takes money to double at any given interest rate. Let me ask you a question, where do most of us save our money? At the banks and credit unions. What do banks and credit unions pay on CD’s, savings accounts, money market accounts, and U.S. savings bonds? Less than 1%.
Now, to keep the math simple, let’s just say they pay 1% even though we know they don’t; and, we deposited $2,000 in any of those accounts. If you take 1 and divide it into 72, with 1 divide into 72, seventy-two times, and that 1% is going to take $2,000 72 years to become $4,000, which is why after 54 years you only have $3,500. Isn’t that crazy?
Now when we put that $2,000 in the bank, do they take it, stick it in a safe, sit it there, and have a guard walk around protecting it? No! They use it to make more money. How do they use it? They loan it out to the next person in line at a higher rate of return in the form of credit cards and loans. I know that people pay 36% on credit cards, 21% on auto loans.
Now if 12 divides into 72 six times, then they’re doubling the money every 6 years. So they’re going to take $2,000 in six years it’s 4, another six years it’s 8, another six years 16, 32. Fast forward 54 years later, they can take $2,000 and turn it into $1,024,000. Out of that $1,024,000 how much are they giving you back? $3,500! Did they just make more money off your original $2,000 that you lent them?! They make more money?
So my question to you is: do the banks and insurance companies have any incentives to teach you this rule? If nobody teaches you this rule, how do you win the money game if you don’t know the rules? You don’t. Shouldn’t we have learned this rule in school? Do you think most of your friends and family would benefit from learning the rule of 72? But if you don’t introduce me to them, how will they learn the rule of 72?
Slide 6: The Theory of Decreasing Responsibility
The next concept we teach is something called the Theory of decreasing responsibility. We believe this is how life works. Do you believe you need life insurance for your entire life?...... Yeah, Ok!
The theory says in early years in life you need a lot of insurance coverage. Why?...... You have young children, debt and a mortgage, and loss of income would be devastating. For example, if you die today with these responsibilities, how long is your savings going to last your family?...... Not very long! Which is why you need a lot of insurance. Now over time what happens to these responsibilities? They begin to go down. Cause if you’re paying your debt, it goes down. If you’re paying your mortgage, it goes down. Your children naturally become grown; so that responsibility goes down.
So if you’re in your later years like 65, and you have no kids, no mortgage, and no debt, and you’re broke, do you need life insurance?...... Just a little! But you don’t need a whole lot; cause you don’t have these responsibilities. Now, do you want to be broke when you’re 65? So what must you do in your early years each and every month? Save!! So as your responsibilities are going down in life, your savings are supposed to be going up in life. So if you’re 65 years old with a $½ million to $2 million, no kids, no debt, and no mortgage, now do you actually need like insurance? NO!! cause you’re self Insured.