Professional Development Workshops Industry Trends

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Professional Development Workshops

Industry Trends Topic: After-Tax COLI Is About to Explode in Prevalence, What You Need to Know About It Right Now Speaker: David Hauptman

Topic: The Future of the Life Insurance Industry: Turning Change into Opportunity Speakers: Andy Bucklee, Michael Ferik & Greg Mack

Life insurance provides employers and executives with a vehicle that can deliver, fund and secure a financially attractive Executive Benefit Program as a result of its unique tax and accounting advantages. COLI funded nonqualified plans continue to be a highly prevalent executive retirement benefit program but sometimes are not optimal for companies because of the unsecured nature of the benefit promise or the regulatory and administrative requirements the plans carry. Executive Bonus Plans funded with after-tax COLI continue to grow in prevalence and are appropriate in situations where there is a desire to provide a combination of a tax-advantaged retirement income benefit along with a life insurance protection element both without employer solvency risk.

The life insurance industry is undergoing a period of profound change that will shape the way insurance is distributed and the products that are sold for years to come. During this session, a distinguished panel of senior executives from leading insurance carriers will share their perspectives and explore the drivers of change for the insurance industry in the coming decades. They will discuss the social, technological, economic and political perspectives that will have sweeping implications for your insurance business in the coming years.

Takeaways: 1. You will be educated on why companies use after-tax COLI to fund an Executive Bonus Program and what situations to look for as indicators that after-COLI is a fit? Small, mid or large market? 2. You will be able to explain to clients the pros/cons to the employer and executive of the Executive Bonus Program and after-tax COLI. 3. What role you will play as advisor and broker in educating company and executive during the sales process and in providing ongoing oversight for the program and what is the expected commission paid? Topic: Emerging Trends and Opportunities in the Life Insurance Industry Speaker: James Kerley LIMRA Chief Membership Officer Jim Kerley will discuss how evolving trends in demographics, social media/digital relationships, regulation, product complexity and technology are impacting our industry and changing the paradigm of our business. Jim will share how these factors are influencing consumers’ attitudes and behavior and what it will take to help Americans attain financial security in the future. Takeaways: 1. Better understanding of consumer and technology trends based on LIMRA research. 2. LIMRA analysis on how product development and regulatory changes will impact the business. 3. Best practices to communicate with today’s consumer.

Takeaways: 1. To gain insight into three carriers’ view of future products and markets. 2. How carriers are addressing the pressure of low interest rates. 3. How technology will change the interaction between agents and insurance companies. Topic: Leveraging Opportunities in Automated Underwriting Speakers: Tony Laudato & Larry Resnick Presented by

An exciting panel discussion sharing various perspectives on Automated Underwriting. We will review the challenges, opportunities and potential solutions from the perspectives of the carrier, distributor, reinsurer and the technologist. Topics such as real-time underwriting interviews, decision making and automated application submission will all be examined. This is the future and the future is here! Takeaways: 1. Better understanding of the challenges of implementing for the Distributors, Carriers, Reinsurers and Technologists. 2. A solid grasp on the opportunity for the 4 disciplines in utilizing automated underwriting. 3. Enhanced awareness of the inevitable need to bring this process online for all parties.

Workshop topics and speakers are subject to change. Copyright 2015 AALU - All Rights Reserved.

Professional Development Workshops

Practice Management Topic: 10 Things Top-Performing Advisors Do That Others Don’t Speaker: George Hartman There was a time when financial advisors could build a successful practice simply by being a good salesperson or a great marketer, but no longer. Modern-day advisors have to think and act like business owners, managing a dynamic enterprise in an ever-changing marketplace. Regardless of where you are in the evolution of your business from start-up to succession, the decisions made today will determine the likelihood of realizing the tremendous economic potential that lies within your practice. Regrettably, few financial advisors enter the industry with the intention of becoming business managers. Yet, as their practices grow in both size and complexity, many find themselves spending more time managing the enterprise than advising clients. Financial advisors must also accept the “irony of success,” what got you where you are won’t keep you where you are. If you don’t periodically re-examine and re-invent your business, you run the risk of having a world of possibility pass you by. Even more important, you need the foresight and courage to make changes even when it is not yet obvious that change is necessary. From strategy to tactics, Hartman will identify, highlight examples and show you how to implement the Top 10 activities that separate the best from the rest. Takeaways: 1. Recognize that a successful “practice” is not necessarily a successful “business.” 2. Have a clear picture of what your business will look like when it is as successful as you want it to be. 3. Develop a specific plan to take you from where you are today to where you want to be at some point down the road. Topic: A Matter of Choice
 Speaker: Lawrence Rybka Most producers represent a number of insurance carriers. But, if really pressed on how they make the selection of companies and products they recommend to clients, the process can most honestly be described as more “ad hoc” vs. strategic and deliberate. As a result, every experienced producer has made some past recommendations of products and companies that have disappointed our clients. These disappointments can come from companies that have had a change in ownership, lost financial ratings and abandoned product lines; carriers that failed to provide fair value on nonguaranteed elements of the contract or companies that simply will not deliver in force information. For these reasons and half dozen others it has resulted in the client not getting what they expected or were promised. This session will introduce the distinct methodology of taking those

negative experiences and transforming them into a customized vetting process for more purposefully choosing the carriers your firm represents going forward. The result of implementing this tool in your practice is a customized select list of companies and products for improving long term client satisfaction, and minimizing risks to your clients. Rybka will share a turnkey decision process that allows your firm to make and articulate the important decision of what companies and products you recommend to clients. Takeaways: 1. A process to create a select list of insurance carriers with whom your firm does business. 2. Being able to clearly articulate to clients and Center of Influence why you do business with certain carriers. 3. To be in a much better position to explain and service insurance products sold by your firm. Topic: How to Find the Next Generation of Producers: Building a Farm Speaker: Caleb Callahan, David Byers & Rick Van Benschoten Moderator: Sharon Theall Readiness as a community and an industry to develop the next generation of high performing producers is vital to our collective futures. In this session, we’ll explore how to find and develop future leaders that position your firm for long-term stability and growth. A panel of insurance professionals experienced in taking on this initiative will examine the current trends and real world challenges they have faced, including where to look for candidates, the expectations of the journey in developing a mature strategy and the emerging best practices that have worked for them in actively recruiting, mentoring, compensating, engaging and retaining new talent. Takeaways: 1. Awareness of what’s driving today’s recruiting strategies and influencing results. 2. Insight into the emerging best practices for sourcing, screening, onboarding and developing new producers. 3. Building revenue and profitability through a mature strategy to institutionalize your growing business.

Workshop topics and speakers are subject to change. Copyright 2015 AALU - All Rights Reserved.

Professional Development Workshops

Product Insights Topic: Index UL Model Regulations: Speakers: James Joyce, Joe Kordovi & Bobby Samuelson Presented by

Topic: Managing Risk with an Insurance Portfolio Speaker: Richard D. Forcht Presented by

You are either selling Index UL, or selling against it. There are major changes to Index UL illustrations that you need to intimately understand to stay ahead of the curve with clients and advisors. This session will take you inside all of the specifics around the new Index UL illustrated rate formulas and the carriers most impacted, how variable loans will be limited, and the additional disclosures now required.

Insurance policies are being combined into synergistic portfolio to manage multiple risks for affluent clients. Learn how clients can pay exactly the right amount for mortality and longevity. Hear how advisors are using new techniques to manage market risk, interest risk and inflation risk with one asset class. Finally, help clients realize their distribution goals with tax free cash flow.

Takeaways: 1. Ensure you are presenting an IUL illustration that is conforming and won’t be impacted. 2. Be able to communicate to clients and advisors how IUL illustrations are being regulated

Topic: IUL Illustrations - Much Ado About Nothing? Speakers: Kimberly Anderson & Benjamin Roth Presented by

The regulations surrounding IUL Illustrations are changing... are you ready, and how much will it really impact your business? This session will discuss the rapidly evolving regulatory environment, what’s next for IUL illustrations and product design, and strengthening your sales practice around the value proposition of life insurance, not just the numbers displayed in an illustration. Takeaways: 1. An update and clear understanding into what has changed around IUL Illustration Regulation. 2. How changes will impact the product illustration and design. 3. Leveraging the value proposition of life insurance, rather than relying on an illustration.

Takeaways: 1. Properly constructing an insurance portfolio. 2. Paying the real minimum cost of insurance and no more. 3. How to use the insurance portfolio to manage multiple risks, including mortality, longevity, market volatility and correlation, interest rates, inflation and taxes. Topic: The Math Behind the Products We Sell Speaker: Ken Master Session will provide insights into using diagnostic tools to clearly communicate differences in product types/designs and differentiate the producer from the competition. As insurance products become more complex and consumers become more sophisticated, knowledge will be a key differentiator. More educated clients are looking for advisors who can provide clearly articulated insights into the products we sell. Takeaways: 1. Impact of sequencing returns on IUL policy performance and place of VUL within this framework. 2. Actual COLI case study where comparison of policy charge structure influenced product ultimately purchased. 3. Policy income distribution planning comparison.

Workshop topics and speakers are subject to change. Copyright 2015 AALU - All Rights Reserved.

Professional Development Workshops

Prospecting & Sales Topic: Effective Planning for Pass Through Business Entities Speakers: James Allen, Jr. & Patrick Crowley Presented by

This workshop focuses on five targeted sales strategies for the growing pass-through business entity market. Techniques that are unique in the insurance marketplace are explained and applied in case scenarios. Sales ideas include the “retirement buy/sell”, split funded defined benefit plans, the business owner “pension plan” and the “buy/sell LLC”. Takeaways: 1. An understanding of the growing pass through entity market. 2. Business succession strategies for pass through entities. 3. Retirement strategies for pass through entity owners.

Topic: Life Insurance: International Clients and the Solution to their Rubik’s Cube of Issues Speaker: Leigh-Alexandra Basha This session will explore key uses of life insurance to solve the throwback tax problem of foreign nongrantor trusts, lowering inheritance tax rates in some jurisdictions, creating tax-free or taxreduced growth to be tapped into later, equalizing estate values, and providing liquidity. In some jurisdictions, life insurance can act as an efficient substitute to trusts, providing inheritance planning and protecting wealth from creditors.

Topic: The Headwind Effect Speaker: John Brown Today’s business owners face three headwinds that increase the difficulty of generating and accumulating the capital necessary to exit their businesses with financial security and leave their families financially secure should they die before their exits. Your first job as a planning expert is to understand both the owner’s Exit Planning and estate planning challenges. Your job as a trusted advisor is to understand the headwinds, and more importantly, to effectively illustrate that the challenges owners face in achieving financial security via an exit during their lifetimes are the same challenges their families will face should the owners die before they exit. Takeaways: 1. To understand the three strongest headwinds that owners face and how each affects the owners’ ability to exit their businesses successfully during lifetime and at death. 2. To understand the Exit Planning challenges owners face, how to address them, how to identify opportunities for the sale of life insurance and how to motivate owners to take action. 3. To build on there current understanding of estate planning issues for business owners and how to effectively coordinate exit and estate planning solutions.

Takeaways: 1. How to identify the international client. 2. How to identify clients’ problems in the international arena 3. How to solve the international clients’ problems using life insurance

Workshop topics and speakers are subject to change. Copyright 2015 AALU - All Rights Reserved.

Professional Development Workshops

Retirement Planning Topic: Managing Compliance Risk in Nonqualified Deferred Compensation Plans Speaker: Samuel Brkich

Topic: The Key Strategies Decisions that You Must Make in 2015 to Drive Revenue from Qualified Plans Speaker: Larry Raymond

When it comes to 409A, an ounce of prevention is worth several pounds of cure. Violations of Code Section 409A may result in immediate income taxation, a 20% penalty tax and premium interest penalties back to the year the compensation was earned. California imposes an additional 5% tax. Risk management begins with plan designs that are easily understood and administered by the client, continues through the adoption and implementation of procedures to ensure compliance with plan and 409A and ends with a regular internal audits to detect and correct inadvertent operational violations. The goal of this workshop is to show AALU members the importance of becoming 409A experts or aligning themselves with other experts as a value-added service to their clients who sponsor nonqualified deferred compensation plans.

Learn what advisors are doing to create revenue streams from qualified plans. The sources have changed, but there is still lucrative income to be earned and some of these new “sources” significantly enhance the advisor/client relationship. Takeaways: 1. Receive ideas for opportunities to create income from retirement plans. 2. See what the competition is doing to attack your qualified plan business relationships. 3. Learn the questions to ask to determine if these new markets are available to you in your business model.

Takeaways: 1. Why 409A compliance is important to a client and its key employees. 2. Understand the key areas of risk in administering nonqualified plans 3. Develop a smell test to identify clients who may need assistance with their nonqualified plans.

Topic: Optimizing Income Allocations: The Role of Asset Allocation, Managed Volatility and Annuities in Retirement Speakers: Caleb Callahan & Chris Finefrock Creating sustainable income streams is the end goal of any sound retirement plan. Given the wide range of options of low cost investment portfolios, volatility managed solution’s, variable annuities with lifetime income riders and longevity insurance guarantees, many planners are left to wonder what strategies are best? This session will cover research and modeling to help you determine when and where each of these strategies makes sense. Takeaways: 1. Do volatility and longevity solutions add value to an investment portfolio? 2. When should different combinations of these products be used? 3. What are the main tradeoffs of each strategy?

Workshop topics and speakers are subject to change. Copyright 2015 AALU - All Rights Reserved.

Professional Development Workshops

Wealth Transfer Topic: A Fresh Perspective on Two Old Friends: Planning with Defective Grantor Trusts and Split Dollar Speakers: Robert Finnegan & Keith Miller Presented by

All non-insurance planning strategies take time to succeed. Insurance is self-completing. Learn how Defective Grantor Trusts and Split Dollar can be combined to optimally transfer wealth regardless of when death occurs, scalable to any size transaction with no or minimal gift, estate and/or GST taxes. Takeaways: 1. How these two strategies “dovetail” together to transfer tremendous wealth. 2. What are the options for sizing the transactions. 3. How can this combination be applied to any size transaction with no or minimal gift, estate and/or GST taxes. Topic: Communicating Charitable Giving Techniques in an Understandable Manner Speakers: Jerome Hesch & Mike Amoia Using simple illustrative examples to communicate the income tax advantages and the estate planning benefits from using charitable remainder trusts and charitable lead trusts. Using life insurance and commercial annuities to increase the income and estate tax benefits of charitable remainder trusts. How to financially structure charitable remainder trusts and charitable lead trusts to further increase the overall tax benefits.

Topic: The Hybrid Domestic Asset Protection Trust: A ThirdParty Trust that can turn into a Self-Settled Trust Speaker: Steven Oshins Asset protection planning has become a necessary part of any estate plan. This presentation recommends a hybrid version of the traditional asset protection trust that can be used purely for asset protection or also for estate tax planning, but with a significantly lesser degree of risk than that of a traditional domestic asset protection trust. This concept can be used as an irrevocable life insurance trust that gives the insured the ability to access the cash value from the insurance policy. Takeaways: 1. They will understand the three strongest headwinds that owners face and how each affects the owners’ ability to exit their businesses successfully during lifetime and at death. 2. They will understand the Exit Planning challenges owners face, how to address them, how to identify opportunities for the sale of life insurance and how to motivate owners to take action. 3. Building on their current understanding of estate planning issues for business owners, insurance professionals will understand how to effectively coordinate exit and estate planning solutions.

Takeaways: 1. Exposure to new variations of established planning techniques one can use to create new business. 2. Additional uses of life insurance other than providing the funds needed to pay the estate tax. 3. Avoiding the obstacles that frequently prevent the use of charitable split interest trusts.

Workshop topics and speakers are subject to change. Copyright 2015 AALU - All Rights Reserved.