Recent survey findings from the First Command Financial Behaviors Index reveal that 83 percent of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household annual incomes of at least $50,000) who work with a financial planner say they trust their planner. This level of trust is roughly unchanged from a year ago, underscoring the value of the personalized service that financial planners are delivering in a challenging economic environment.

“The high degree of trust revealed in our survey results highlights the important service that financial planners are providing to service members and their families as they seek to get their finances squared away in this time of uncertainty,” says Scott Spiker, CEO of First Command. “The professional advice, knowledge and service delivered by financial planners are helping to generate feelings of confidence and security among military professionals as they deal with the issues of sequestration, a changing benefits picture and long-term career uncertainty.”

Notably, these feelings of confidence and security are growing over time. The Index reveals that 57 percent of service members who’ve worked with a financial advisor for at least three years feel confident in their ability to retire comfortably. This compares to 47 percent who’ve worked with an advisor less than three years and 30 percent who have no advisor.

Service members who trust their own personal financial planner attribute that feeling to a variety of issues. The top five factors cited by survey respondents are:

1. Length of service
2. Integrity
3. Good communication
4. Personal relationship
5. Good service

The Index reveals that 42 percent of middle-class military families have a financial planner, and more service members expect to join them. Among those without a financial planner, roughly one in five says that they are likely to engage one in 2013.

Compiled by Sentient Decision Science, Inc., the First Command Financial Behaviors Index assesses trends in the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 530 U.S. consumers ages 25 to 70, with annual household incomes of at least $50,000. Results are reported quarterly. . (www.firstcommand.com/research).

Sentient Decision Science is a behavioral science and consumer psychology consulting firm with special vertical expertise in the financial-services industry. It specializes in advanced research methods and statistical analysis of behavioral and attitudinal data.

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By Ayo Mseka
Editor-In-Chief
Advisor Today

Cancer claims were nearly 16 percent of the company’s LTC claims, while back disorders made up 15.1 percent of claims. The leading reasons for Unum’s STD claims last year were maternity (18.9 percent of claims) and non-back injuries (10.5 percent).

Since this is Disability Insurance Awareness Month, now is a good opportunity to highlight the value of DI coverage, not only for the financial benefit it provides, but also for the support that employees receive as they recover and return to work, Unum notes. Recovery and return to work play a particularly significant role for cancer patients.

“Most people who have been diagnosed with cancer are very motivated to get back to work,” says Kristin Tugman, senior director of Health and Productivity at Unum. “It helps create a sense of normalcy and control at a time when people often feel understandably overwhelmed.”

Advances in cancer treatment have led to much higher rates of survival from diagnosis. The American Cancer Society estimates that the number of cancer survivors in the U.S. will grow to nearly 18 million by 2022. The Cancer Society also observes that the transition from cancer patient to cancer survivor is the next critical area of attention for families, care givers and employers.

“We work closely with employers whose employees are out on disability because of cancer,” Tugman adds. “When a cancer patient is ready to resume some work responsibilities, we can help the employer offer the necessary support and accommodations their employee needs to return to work in a productive and safe manner.”

Through research and education, Unum offers employers guidance on how they can support workers through cancer diagnosis and treatment, and help those employees return successfully to the workplace.

Other leading causes of LTD claims for Unum in 2012 were:

• Back disorders (excluding injury) (15.1%)
• Injuries (9.8%)
• Behavioral health issues (9.8%)
• Circulatory system disorders (9.0%)
• Joint disorders (8.3%)

Leading causes of STD claims were:

• Normal pregnancy (18.9%)
• Injuries (10.5%)
• Complications from pregnancy (8.4%)
• Digestive disorders (8%)
• Back disorders (7.1%)
• Cancer (6.8%)

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By Ayo Mseka
Editor-In-Chief
Advisor Today

Thomas J. Von Riesen, CLU, ChFC, of Omaha, NE will serve as AALU President for the coming year. Serving with Von Riesen as AALU officers will be:

• President Elect – Anthony J. Domino, CLU, ChFC, MSFS of Rye Brook, NY
• Immediate Past President – David A. Culley, CLU, ChFC, of Atlanta, GA
• Vice President & Treasurer – Mark B. Murphy, CLU, ChFC of Roseland, NJ
• Secretary – Chris Foster, CLU, ChFC, CFBS, AEP of Greensboro, NC

Joining the AALU Board of Directors for a three-year term are:

• Steven W. Broadbent, of Johns Creek, GA
• Terence L. Horan, CLU, ChFC of Cincinnati, OH
• John C. Watson, III, CLU, ChFC, AEP, RFC of Greensboro, NC

The AALU membership also recognized Past President Gib Surles, CLU, ChFC, CFP, AEP, MSFS, and departing board members Tim Malarkey and William Damora for their service to the AALU and the life insurance industry.

More than 1,200 AALU members and guests attended the four-day AALU Annual Meeting in Washington, DC, (April 28 – May 1, 2013) including more than 500 who visited Capitol Hill to meet their senators and representatives. Visit www.AALU.org for more information.

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By Ayo Mseka
Editor-In-Chief
Advisor Today

John Nichols

Want to sell more DI insurance? Then listen carefully to this podcast, which offers some best practices for selling this valuable product from NAIFA President-Elect John Nichols.

Click here to download the podcast, “Expand Your DI Practice.”

Information from Colonial Life’s customer database reveals that workers in these three industries have a significant gap in the amount of disability income insurance they purchase, compared to the amount typically recommended to help protect their income. In general, DI insurance replaces up to 60 percent of an employee’s income. The following are the industries, according to the Colonial Life study:

Manufacturing

Manufacturing workers who purchase Colonial Life disability policies buy roughly half the amount of disability coverage they actually need. These employees buy only enough coverage to protect 33 percent of their income instead of the recommended 60 percent.

Education

Employees who work in the education industry buy DI insurance to protect just 37 percent of their income.

Health care

Health care workers buy only enough DI insurance to protect 36 percent of their income.

“These three industries alone represent more than 37 million working Americans who may be underinsured in the event of a disability,” says Steven Johnson, assistant vice president for product development, Colonial Life. “This kind of coverage gap puts them at tremendous risk, especially considering that more than half of all households say they couldn’t raise $2,000 a month, if needed.”

Two-thirds of private-sector American workers are not covered by employer-sponsored disability insurance against loss of income due to illness or injury, according to the Bureau of Labor Statistics. And while most people think accidents are the leading cause of disability, illnesses are actually the most important reason for lost work.

“The likelihood of experiencing a disability–whether short-term or long-term– is much more common than you might think,” says Johnson. “Although many businesses provide some form of group long-term disability coverage, there may be a coverage gap between the end of sick leave and the beginning of long-term disability coverage. Products such as voluntary short-term disability insurance can help employees fill the gap.”

Leveraging Disability Insurance Awareness Month

As you sell your DI products to your prospects, you can take advantage of DIAM, the national marketing campaign coordinated by the LIFE Foundation to encourage consumers to buy the DI protection they need.

LIFE has created the online DIAM Producer Toolkit, a whole suite of free tools and resources that you can download and use in your outreach. These include:

• DI insurance realLIFEstories flyers to print or send via email
• Prewritten social-media posts for Facebook and Twitter
• Infographic and “infostats” to use online
• Videos you can embed on your website or link to
• A marketing guide to help you pull a campaign together, and much more

Access the online toolkit at www.lifehappens.org/diamkit. In addition, as a NAIFA member, you can access all of LIFE’s educational resources at www.lifecatalog.org.

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By Ayo Mseka
Editor-In-Chief
Advisor Today

On Monday, April 29, they received a “state of the association” update from AALU President David Culley, CLU, ChFC. He shared with them some of the successes the association has scored and the obstacles and challenges that lie ahead.

The job that AALU members are doing is very important to the U.S. economy and to the financial security of millions of Americans, he said.

The death claims he has delivered over the past few years have provided millions of dollars to beneficiaries—dollars that have kept families in their own homes when the breadwinners have passed on, dollars that have helped them achieve their financial goals and dreams. “This is what interests me and is part of the great legacy of our profession,” he said.

The association has been at the forefront of many important initiatives, including COLI best practices and the estate-tax debate. He pointed out an issue that is worthy of note: the association’s decade-long effort to establish certainty in estate planning finally paid off when Congress approved a permanent Estate & Gift Tax. This is a key victory for AALU because it brought certainty to estate planning for AALU members and the clients they serve. The association, he pointed out, was an early supporter of estate-tax reform and is very proud of this achievement.

The association has also recently held 60 successful fund-raisers. This task was accomplished, he pointed out, with fewer than one-third of the members taking part. “We need all of you to participate as we face many obstacles,” he urged.

Challenges and obstacles

Among these challenges and obstacles is the threat of misguided legislation from lawmakers. Congress will look for extra money as it tries to cover the government’s budget shortfall, and there have been calls to tax some financial products. “We know this is bad policy,” he said. ”Our job is to let our lawmakers know that it is bad policy.”

AALU members can achieve this goal, he said, by building personal relationships with their lawmakers. Without this effort, he said, the products that they sell will eventually be at risk.

The second challenge is recruiting the next generation of producers to replace the current workforce, which is rapidly aging. The industry workforce is getting old, he said. The average age of the association’s members is now 58, which is a problem for everyone involved. If trends continue, he said, 700 members will retire in the next five years.

To win this battle, the association must add to the ranks of the industry’s workforce and once it recruits new producers, “must show them how to succeed. We must serve as mentors to the younger producers,” he said.

In conclusion, he thanked the members and the AALU staff for their hard work and dedication to the association and the profession. “You are the best in the industry,” he told them.

What AALU members do to achieve success is not always easy, he pointed out, but it is the right thing to do. Each member dedicates his life to helping others, and they do it by choice. “Thanks for your dedication and for putting “service above self,” he said.

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By Ayo Mseka
Editor-In-Chief
Advisor Today

Susan Cooper, CLU, ChFC, CFP, CDFA, CAP

The Penn Mutual Life Insurance Company recently presented NAIFA member Susan Cooper, CLU, ChFC, CFP, CDFA, CAP, with a 2012 National Chairman’s Award. Cooper is managing director of Penn Mutual’s career agency in New York City.

This is Cooper’s second National Chairman’s Award, which recognizes Penn Mutual Career Agency System managing partners and managing directors who have demonstrated exceptional all-around performance and leadership.

“Under Susan’s direction, Empire Wealth Strategies has expanded its reach and surpassed many of their annual goals, while giving clients and policyholders the personal care and attention they each deserve,” says Rebecca Dunne, vice president of Penn Mutual’s career agency system. “We are proud to recognize Susan and Empire Wealth Strategies for all that they have accomplished.”

“I’m honored to receive this award, and I credit the outstanding performance and professionalism of the producers and staff at Empire Wealth Strategies for the success we have been able to enjoy together as a firm,” says Cooper, upon receiving the recognition.

Previously, Cooper received the 2009 HTK Sales Leader Award and the Life Sales Leader Award in 2009 and 2010. Her agency was honored with the 2010 National President’s Award for the Career Agency System and a 2010 Life and Annuity Premium Growth Award.

Before joining Penn Mutual, Cooper served as executive vice president of AXA Advisors’ Northeast Division and as the manager of its New York Metro Branch. During that time, she was recognized with AXA Advisor’s Gold President’s Trophy for ranking as the top agency in the entire country five times. She also received the #1 Platinum Chairman’s Trophy in 2000 as President of the Northeast Region.

A 29-year industry veteran, Cooper has been a Qualifying and Life Member of the MDRT since 1985, and a member of the American College Board of Trustees since 2008. She is actively involved in a number of women’s organizations.

As the owner of the Greg Leonard Agency in Sioux Falls, S.D., Leonard has worked in the business for nearly 40 years. Life has not been easy, according to the article by freelance writer Nancy Christie. When he was just 16, Leonard lost his only sibling due to an asthma attack, and just a few years later he would lose both his parents.  It was then that Leonard became a true believer in the value of life insurance for himself and his clients.

As an adult, more challenges surfaced when Leonard’s wife died of cancer in her 50s, leaving behind their eight-year-old daughter.  Leonard tells Broker World: “We can’t control what life brings but, to a large extent, we can control how prepared we are to handle the outcome. … Life insurance is an essential part of preparing for those events that could otherwise be financially devastating.”

Some people claim that happiness is all in your DNA or bank account. The truth is that happiness is largely a matter of everyday choices and actions. There are straightforward, well-researched and effective things every one of us can do to create greater happiness in our lives and in the lives of those we care about.

The essential elements of a happy life are not mysterious. Research shows that the happiest people do four basic things that make the difference: They focus on what is good and positive in their lives; they cope effectively with life’s inevitable challenges; they develop strong relationships; and they pursue meaningful goals. We can all become happier by putting our efforts into these areas.

Misconceptions about happiness

One of the first steps we can take on our way to becoming happy is to get past some of the common misperceptions about happiness, which can stand in our way. Here are four examples.

Misconception #1: Happiness is about getting the big things right.

It’s natural to think that if we were suddenly rich, beautiful and living on the beach somewhere, we’d be happy. But that type of good fortune turns out to have a surprisingly small impact on happiness. The happiest people are most often not those in the most enviable circumstances, but those who cultivate positive emotional outlooks and actions.

So how can we do it? Take concrete steps to practice optimism, gratitude, kindness and self-compassion in your everyday life. The cumulative effect of those everyday choices can have a tremendous impact on how you experience your life.

Misconception #2: Happy people suppress negative emotions.

Happy people actually experience sadness, grief, worry and other so-called negative emotions nearly as frequently as unhappy people do. The difference is what happens when those feelings occur. Happier people are generally able to experience negative feelings without losing hope for the future. They give themselves permission to feel sad, angry, or lonely, but they remain confident that things will get better. As a result, their sadness progresses into hope and action rather than regressing into anxiety and despair.

Misconception #3: Pursuing happiness is self-centered.

The strongest of all conclusions drawn by researchers into emotional well-being is that our happiness is determined more by our relationships with other people than by any other single factor. The happiest people build their lives around good, trusting relationships. If other priorities are getting in the way of your relationships, take steps to shift the balance back to where it will really make a difference.

Misconception #4: I’ll be happy when I achieve my goals.

Have you ever noticed that when someone wins the Super Bowl or an Academy Award, or when you achieve a long-sought ambition, that wonderful sense of accomplishment and happiness seems to fade more quickly than you’d expect? That’s just the way our brains work. Committed goal pursuit is one of the keys to a happy life, but most of the happiness we get from striving for goals comes while we’re making progress toward them, not after we achieve them. That’s why it’s so important that we choose goals that are in synch with what we love and value, and that we make a conscious effort to enjoy them along the way.

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By Lynda Wallace

After 20 years as a highly successful executive with Johnson & Johnson, where she was responsible for a $1 billion portfolio of businesses, Lynda Wallace, MBA, changed careers to pursue her passion. She now helps individuals and groups apply proven insights and techniques to achieve greater happiness and success in their lives, families, careers, and businesses. Wallace is a certified positive psychology coach and sought-after speaker. She is also the author of the #1 Amazon Self-Help Best Seller, “A Short Course in Happiness: Practical Steps to a Happier Life.” More information is available at www.lyndawallace.com.

Nomination process

All NAIFA members are welcome to nominate a rising star for Four Under Forty. Nominees must be NAIFA members in good standing and 40 years of age or younger. Click here to download the nomination form (PDF) or find it in the January/February issue of Advisor Today.

All submissions are due by May 1, 2013. For more information, contact Ayo Mseka at 703-770-8471 or amseka@naifa.org.

Don’t hesitate. Send in your nomination form today–your candidate might be just the one who has what it takes to join the ranks of the Four Under Forty!

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