by Dock Houk
My goodness, the things I learn from you. This is exciting – perhaps one of the most exciting new markets we have come up with: Life Insurance
Background:
Most of you are aware that the National Heritage Family is a BIG booster of the product LIFE INSURANCE. “Pennies buy dollars for future delivery” is a great sales line. We love it for many reasons, not the least of which being my dad’s influence on me. Dad served on the Board of Directors of a major insurance company for 25 years.
1. An individual donor purchases $1 million or more in a life insurance policy owned by the Donor’s Charitable Foundation at National Heritage Foundation, Inc.
2. From donations made to the NHF foundation the premiums are paid until the payment program is completed. Other deferred and current gifts may be made.
3. When the policy matures, the face amount (plus any additional current or deferred gifts) will be transferred to an INDEPENDENT PUBLIC CHARITABLE CORPORATION set up and administered by Charity Admin Inc (CAI) directed by his nominees – the kids, grandkids or whoever!
The legacy can now begin and last forever!
1. A Large Gift – When your client purchases the policy, in his or her mind THEY FEEL THEY HAVE MADE THE LARGE GIFT OF THE FACE AMOUNT. That’s powerful – pennies indeed buy DOLLARS.
2. Immortality – He or she can see the Foundation lasting forever. No one wants to “die as though they never lived.”
3. Influencing Tomorrow’s World – He or she can imagine that their ideas will make a difference in the future. And their reputation will be remembered.
4. The Kids and Grandkids – The impact on the family will be indelible – they of course can participate in the implementation of the charitable ideas, at a reasonable salary, when the new charity is established.
5. The Impact on Taxes. We often say “it’s not too late to cut one relative out of your will – Uncle Sam.” Charities which do things that the government might otherwise do are “sharing the burdens of government.”
6. Creating an Independent Public Charity. Our ability to create and administer an independent PUBLIC (NOT PRIVATE) CHARITY really makes this project sing. There are significant tax advantages and other blessings.
It will take a large gift to justify an Independent Public Charity.
The first thing you are going to ask is, “Why the MILLION MINIMUM?” And the answer is, “The Insurance Policy could be less, but the total of the assets in the foundation at NHF, at the end of the donor’s life, (including the addition of charitable trusts, gift annuities, land, other will bequests) should add up to at least $1 million.”
And the MILLION MINIMUM presumes that CAI will run the charity FOR THEM under their leadership.
Why the MILLION MINIMUM? It just does not make economic sense to begin an Independent Public Corporation for less than a MILLION. And that is presuming CAI administers the foundation. A MILLION will kick out about $60,000 a year which can be theoretically spent on the conduct of a charitable program. Our CAI contract would be about $3,000, and with an audit and perhaps a salary to one of the kids as president, it might total $25,000, which would leave $35,000 for the charitable program designed for the foundation.
I am so excited that I am going to beg for your help. Here is a letter that I have sent to all 500 INSURANCE COMPANIES DOING BUSINESS IN THE UNITED STATES. I want to work for your favorite life insurance company, and I won’t charge them a thing for my time. And they will sell much more insurance.
Dear Insurance Company:
I WANT TO WORK FOR FREE FOR YOU AND YOUR COMPANY.
My time will cost you zero. That’s right - not a penny. I want to train all the life insurance agents within your scope HOW TO SELL LIFE INSURANCE FOR THE DEVELOPMENT OF CHARITABLE FOUNDATIONS and get them energized.
Why am I doing this? Because I want to see philanthropy powered by life insurance. The possibilities for “doing well by doing good” are boundless.
This is a huge marketing opportunity that is overlooked — and it is only going to get “huger” as the Boomers hit their sixties. They are just beginning to do so. The time is right. The time is now.
There are lots of powerful motives that encourage people to set up Charitable Foundations funded with life insurance policies.
a. Ego – Pennies buy dollars of insurance. Insurance proceeds can endow a foundation and make them SOMEBODY in the community. Ego is a powerful charitable motive.
b. Immortality – A charitable foundation is not a “footprint in the sand.” It can keep on doing good for many generations, telling the donor’s life story with each gift. This is a living memorial.
c. Tax Planning – A gift of life insurance is a “Tax Wise Gift” that can reduce or even eliminate income and estate taxes.
d. Purely Charitable – There are many people who are deeply committed to charitable causes both here and abroad. Life insurance can be the perfect expression of their commitment.
e. Kids and Grandkids – If the gift is large enough we can set up a PUBLIC INDEPENDENT CHARITY that can provide bona fide employment for the kids and grandkids to carry out the foundation’s charitable purpose.
Ten Excellent Reasons Why You Should Call Me
- It will not cost you a penny.
- I am an excellent teacher and motivator. It is a $15 Trillion Dollar market over the next generation.
- Sales will be “large ticket” and persistent.
- You will sell more life insurance.
- Your agents are leaving money on the table by ignoring the charitable market.Tremendous networking opportunities that will generate great PR value for your firm — the kind of image building that money cannot buy.
- We love life insurance.
- We have been doing this for 40 years. PLEASE SEE THE NHF 2007 ANNUAL REPORT, attached. We received a 1.4 million dollar death benefit and now we have a Heart Focused Hospital in Western Kentucky!
- Insurance agents love what we do. PLEASE SEE THE LAST FEW PAGES OF THE FINANCIAL SERVICES ADVISOR COVER STORY, where 23 Life Underwriters give you their candid opinions of us. (p.s., we get an A+ report card)
- Nearly half of our 10,000 current foundations have a deferred gift attached (life insurance, will bequests and charitable trusts), totaling an estimated $2 Billion dollars.
- We can help you begin YOUR OWN Donor Advised Fund. Our management company can provide the experienced administration support you will need. No need to reinvent the wheel. Hit the ground running. (Or rolling, I should say).
Life insurance is the best way for ordinary folks to create a legacy that will keep on giving, making this old Earth a better planet.
Call my private line 561-301-3891 anytime to set an appointment for talking on the phone or meeting in person.
I am at your service.
