Stephen Howard

It’s officially Life Insurance Awareness Month (LIAM). So now what do we do? Same ol’ same ol’? It is one of my most common battles—to think and plan differently, change an attitude or attitudes, and embrace and act on a new idea. Life Happens (sponsor of LIAM) is a non-profit organization dedicated to helping Americans take personal responsibility through the ownership of life insurance and related products, including disability and long term care insurance. LIAM is an industry-wide campaign aimed at educating Americans about the importance of life insurance and helping them get the coverage they need.

Life Happens provides a wealth of producer resources to be utilized to help inform consumers about the products our industry sells and how important they can be for protecting clients and their loved ones from financial devastation in the event  of death (or disability). Further, they have access to numerous research findings to help agents refine their approach to American consumer segments either without life insurance coverage or admittedly underinsured.

One such report is the 2015 Insurance Barometer Study, available through a partnership between Life Happens and LIMRA. Access to the report can be gained via www.lifehapens.org/industry-resources/agent/barometer2015/ by entering your email address in the space indicated at the bottom of the page. Praise must be lavished on Ashley Durham, assistant research director of LIMRA for this great resource. The study features sections on consumer financial concerns, ownership and consumer outlook, sales barriers, life insurance awareness, research and purchase preferences, and sections on long term care and disability insurance.

Cited as sales barriers are perceived cost (65 percent), other financial priorities (61 percent), perceived need satisfied (55 percent), lack of trust in insurance companies (38 percent), uncertainty about how much or what type to buy (38 percent), procrastination (30 percent), not wishing to contemplate death (29 percent), not having been approached about it (22 percent) and concerns about qualifying for coverage (22 percent).

One of Life Happens’ most apparent initiatives is to combat the perception that life insurance is too expensive, which can certainly impact the first two barriers and may chip away at others. Life insurance companies and life insurance agents must combat the rest. Insufficient service to the middle market is widely believed to be the largest contributing factor to historic lows in life insurance ownership.

In his white paper In Search Of The Industry’s Holy Grail: Penetrating The Middle Market, Walter H. Zultowski, PhD, relates common beliefs regarding our industry’s role in underserving the middle market, citing such factors as the decline in the numbers of agents selling life insurance; that the industry hasn’t been successful in communicating to the middle market both the necessity of and affordability of life insurance; that the industry’s compensation system makes it difficult to earn a living exclusively serving the middle market, driving agents to the affluent and business markets; and that the industry is slow in offering new ways in which the public can access its products. Of great interest is Zultowski’s analysis of past attempts to segment the middle market and his identification and characterization of three distinct segments within the market: Opportunistic buyers (39 percent), planners (35 percent) and protectors (26 percent). His white paper can be accessed via the Society of Actuaries website www.soa.org/research/research-projects/life-insurance/research-better-understanding-middle.aspx and then clicking on the PDF under “Related Links.”

But back to the barriers to the sale and our industry’s need to address them. Widespread eroding trust in life insurance companies (and collaterally, agents) realistically can’t be traced back to an overwhelming number of first or second hand experiences with friends and relatives being screwed by insurance companies. It simply can’t. With billions of dollars in claims paid annually, millions of Americans have experience with families they care about who have been positively impacted by life insurance purchases. Many more have stories of lives tragically altered by a lack of life insurance. My personal resentful, finger-pointing places the blame on the mainstream media and a perceived liberal desire to promote an “us against them” attitude toward large financial institutions—insurance companies in particular—their customers and basically anyone with money who isn’t a leftist Hollywood celebrity. Extremely hard to fight that.

Looking at the other barriers, however, who better to communicate the need than insurance agents to those misguided as to their needs, unsure of how much and which types they need, who procrastinate on the purchase, don’t want to face their mortality, and those who feel they may not qualify for coverage? And, of course, the most glaring statistical group—those who have not been approached to buy (and the certainly much larger group approached, but poorly).

If there is a nobility in the life insurance business, as I fervently believe there is, it is in the industry’s ability to dramatically alter the course of lives affected by tragedy. Further, if life insurance agents feel they serve a divine purpose in the execution of their profession, as I certainly hope the majority do, isn’t there a responsibility to reach out to the other-than-significantly-profitable in some way? The industry is seeing movement by companies to find ways to embrace the middle market, but products suited to this market have been available for generations. I believe agents not only have a right to make a good living, but a responsibility to their own families and thus should not quit pursuing profitable business. But the path to restoring public trust in our industry in the majority of potential consumers by necessity involves approaching those prospects in the majority—the middle market. One less profitable term policy at a time.

So what’s it to be? Same ol’ same ol’? Or perhaps use Life Insurance Awareness Month as an “excuse” to commit to finding a few more middle market families to try to save from financial ruin. Find help at www.lifehappens.org. [SPH]

September’s Life Insurance Awareness Month is nearly upon us. 

Out of habit and respect I go to our industry’s preeminent research organization, LIMRA, for life insurance sales and consumer information to deliver a soliloquy in advance of the formal start of LIAM. In my rose-colored crystal ball I would see every American with a dependent of any kind—including even our beloved pets—in possession of life insurance protection on some minimal level at the least. That is not to say that I believe life insurance should be considered a human or American “right,” and yet it doesn’t take much of a flight of fantasy, feathered by Obamacare sycophant malapropism, to envision such a call. But I digress.

One flaw in an August call-to-arms/primer is the unavailability of LIMRA’s 2015 Facts of Life, annually repurposed as a LIAM Fact Sheet. I encourage you to look on www.limra.com during the weeks ahead to find the 2015 version. In its 2014 information, LIMRA reveals that less than half of middle market consumers ages 25 to 64 have individual life insurance coverage, and 44 percent of those without say they need it. Problem halfway solved!

Oops…maybe not. Almost 70 percent of consumers say required cost-of-living expenses are keeping them from buying some or more life insurance. Expenses cited included internet, cable and cell phone costs.

A large portion of people procrastinate when it comes to shopping for life insurance. Reasons include not knowing what kind of coverage to buy or how much they need. (My therapist, at least, would suggest a much more varied and vibrant Howard tapestry of procrastination causality.) Enabling the procrastinators of purchase above, however, is the LIMRA-gleaned fact that only about one-third of adults have someone they consider their agent or financial advisor whom they feel could help them determine what they need. I find this a bit surprising, considering how many times annually I receive a life insurance solicitation from the career agent from whom I purchase my auto and homeowners coverage. Regardless, it highlights our industry’s penetration problem in the middle market and leaves millions of Americans unprotected—Americans it should be our privilege and duty to serve.

On a slightly more upbeat note, a recent release from LIMRA reports an individual life insurance sales increase of 8 percent in the first quarter of 2015. Total individual new annualized premium increased 8 percent while policy count increased 5 percent, according to LIMRA’s Retail Individual Life Insurance Survey. New annualized premium increases by product line: Total universal life up 7 percent; Indexed UL—11 percent; Lifetime Guarantee UL—1 percent; Variable UL—21 percent; Whole Life—9 percent; Term—2 percent. For more great info visit www.limra.com. [SPH]

It is my delightful duty to announce that W. Harold Petersen, chairman of Petersen International Underwriters, insurance industry sage, historian and champion, and great friend to Broker World, has been inducted into the Iowa Insurance Hall of Fame. He was one of five insurance professionals so honored at the Hall’s 19th annual ceremonial dinner. An Iowa native, Petersen was raised on a humble dairy farm in Council Bluffs, where he witnessed first-hand the financial devastation caused by the sudden disablement of his father. From this bleak starting point evolved Petersen’s lifelong advocacy for disability insurance and mission to help Americans protect their most valuable asset—their ability to earn an income. His insurance career started in 1948 as an underwriter at Mutual of Omaha, and the bulk of his early career was spent in and around Iowa. It was there that Petersen started his own disability carrier called Underwriters National Assurance Company, which he ran until his move to Los Angeles in 1967. In L.A. he formed an insurance marketing and management firm that evolved into Petersen International Underwriters, focusing on the high limit and specialty disability insurance market. After more than 33 years, PIU remains the largest Lloyd’s Coverholder in the American disability market. In his 65 years serving the insurance industry, Petersen has mentored countless agents, lectured at dozens of universities, volunteered thousands of hours to industry associations, developed nationally sanctioned insurance training courses and, perhaps most proudly, co-founded the International DI Society. His accomplishments have been previously recognized by NAHU, NAIFA state and local chapters, and the IDIS—each of which has bestowed upon him its most prestigious award.

Personally, in the 30 years I’ve known Harold I have found him to be a man of unshakable integrity, maintaining and encouraging the highest levels of ethical conduct. He has served as a role model and mentor to me and countless others. I deeply admire him as a man, respect him as an industry expert, laud him as a true industry champion, and am extremely proud to be able to call him friend. [SPH]

Deafening silence. AIG reported sad news earlier this year in the announcement of the passing of former President and CEO Bob Benmosche. He died on February 27, having undergone treatment for lung cancer since 2010. Robert S. Miller, chairman of the AIG board of directors, described Benmosche: “Bob was one of the most inspirational and successful leaders in corporate America by any measure. We will never forget that under Bob’s extraordinary leadership, the people of AIG repaid America in full plus a profit of nearly $23 billion.”

Some few of you may remember a little financial hiccup in 2008, and a firestorm of negative press about a company receiving $182 billion in taxpayer assistance. I remember seemingly countless skewed television reports about the “insurance giant” receiving a “bailout” at the expense of hardworking taxpayers. I remember network press coverage of media-fueled protests outside of the AIG New York office. There were even press expressed concerns about employee safety. Not even at the height of Obamacare flame fanning was the “us against them” manipulation of public opinion against the insurance industry as strident and insidious.

When Bob Benmosche held the first of a series of town hall meetings in Houston with AIG employees, he said, “The fact is, you are AIG, and it’s time we stopped being embarrassed by it. It’s time people stop talking about you as the problem, because you are the solution.” Rod Rishel, head of U.S. Life Insurance, recounts: “I remember the day Bob came to Houston in August of 2009, and to this day I can still say I have never witnessed anything like that. After he spoke at the meeting, I could literally feel the positive energy in the air. It’s hard to fathom that one person could have that kind of impact on so many people. I also knew in that moment that one day AIG would thrive again. And just look where we are now.”

Benmosche developed his drive in life early. Losing his father at an early age (without life insurance), he drove a Coca Cola truck for seven years to put himself through both prep school and college. He served his country as a lieutenant in the United States Army from 1966 to 1968. His bona fides for the AIG responsibility were well established. Serving as executive vice president of Paine Webber, he directed the merger of Kidder Peabody into that company. As chairman, president and CEO of MetLife, he led the transition of that company from a mutual to a public company in 2000. He also served in various capacities with Chase Manhattan Bank.

AIG Executive Vice President and Chief Distribution Officer, life insurance, John Deremo, adds these insights: “Bob was a staunch believer in diversity. He was very committed to promoting diversity, not only throughout our employee ranks, but also throughout our broker and advisor ranks, and was particularly enthusiastic about increasing our presence in underserved multicultural markets.” Deremo adds, “Bob was always adamant that the decline in insurance ownership was in direct proportion to the declining number of agents. He strongly felt that to rebuild insurance sales we had to dramatically increase the number of our brokers. He would point out that agents work to provide essential advice to people for the most meaningful moments in their lives. And there is not a computer or other type of artificial intelligence that could ever replace the value of an empathetic, well-trained broker.”

Through divesting various businesses and other restructuring activities, by the end of 2012,under Benmosche’s leadership, the people of AIG had repaid taxpayer assistance in full—early—plus a positive return of $22.7 billion. True to his nature, Bob gave the credit to AIG employees, saying in a letter, “You did this. Every single man and woman at AIG did this remarkable thing.”

Which brings me to the first two words of this column. I don’t remember effusive praise or even much recognition of this accomplishment in the mainstream media. I don’t recall panels of pundits endlessly extolling the virtues of a man or a company that made good on a promise to repay a debt of this magnitude, did so early, and kicked the government and thereby, in theory, taxpayers a profit of nearly $23 billion. Not to mention any articles or discourse about how the public’s trust in their products should not have wavered and that their policies were still subject to the same guarantees as when originally issued. I remember several disgusting attempts by settlement companies to advertise in this magazine, preying on consumer fears fueled by “incomplete” media reporting—attempts I rebuffed with enthusiasm—and yet there was no media mea culpa and little if any positive comment on AIG or their accomplishment. You could hear the crickets chirping.

The people of AIG should be proud of what they’ve done. We, as an industry, should be grateful for the vision and inspiration of Bob Benmosche, doing more than one man should have been able, to provide a great example to the American public of our industry making good on its commitment to consumers. The mainstream media could have done a great service to the American people by helping them to further trust in the benefits of and need for insurance products. They could have told them all about Bob Benmosche. He was a great man and a blessing for our entire industry, and it’s a damn shame more people don’t know it. [SPH]

Contrary to some of the passionate but either misinformed or—to be generous—misspeaking proponents of Obamacare, I don’t believe health insurance to be a right of the people. I vacillate on health care—chiefly on the use of the word “right.” Perhaps just antics with semantics, but I believe all U.S. citizens should have access to health care. Whether it is the public’s right, in a Bill of Rights sense, or society’s and our government’s responsibility to do the right thing and be sure all citizens in need of health care have a way to obtain it regardless of true ability to pay. My seemingly unquenchable cynicism flourishes in the contemplation of our ­legislature’s ability to actually achieve that in anything resembling a cost efficient manner. And I simply can’t, even in my most sincere Socialist role-playing fantasies, see the Affordable Care Act (ACA), from a taxpayer standpoint, as anything but an oxymoron. But I must confess that, like (I’m convinced) every single member of the Congress who voted for it, I haven’t read it.

But perhaps I digress. Where does the employer-paid health insurance industry stand today? I looked at the recent annual study from the International Foundation of Employee Benefits Plans (IFEBP—www.ifebp.org) titled 2015 Employer-Sponsored Health Care: ACA’s Impact and was somewhat reassured that many of us may still have a job in 2016. That’s something at least.

The survey responses provided an in-depth study of how single employers are being affected by the ACA. Surveyed were single employer plans (including corporations) in the databases of the IFEBP and the International Society of Certified Employee Benefit Specialists (ISCEBS). Responses were received from 598 human resources professionals, benefits professionals and industry experts. Results represent a wide base of U.S. employers, from nearly 20 industries, ranging in size from fewer than 50 employees to more than 10,000.

The study showed that 94 percent of those responding provide health care coverage to all full-time employees (30+ hours per week), and of those, 98.2 percent feel that they will continue to do so in 2016. However, the likelihood that they will continue to offer coverage five years from now is more uncertain: 33 percent said they definitely will; 52 percent said it is very likely; nearly 11 percent said it was somewhat likely.

Philosophical reasons for doing so were predictable—the majority claiming to do so to attract future talent, to retain current employees and to maintain/increase employee satisfaction and loyalty. On the perhaps “less benevolent” list of reasons cited were: to continue to avoid penalties (14.3 percent); to maintain tax advantage (14.1 percent); and to maintain/increase productivity (13.7 percent).

Predictably cited as the most likely cause of discontinuing benefits was cost (65.7 percent). Surprisingly, 17.4 percent cited as a cause of discontinuing that “Exchanges are proving to provide adequate health coverage for individuals.” An amazing 0.0 percent predicted the cause as “Employees voluntarily moving to the exchanges.”

Cost containment is clearly a paramount concern for employers, and the study showed that those costs are continuing to shift to employees. Cost containment measures taken due to ACA—change from 2013 to 2015:

 • Increase out-of-pocket limits—13.8 percent to 40.6 percent.

 • Increase in-network deductibles—14.9 percent to 36.8 percent.

 • Increase participants’ share of premium costs—18 percent to 34.5 percent.

 • Increase copayments or coinsurance for primary care—12.7 percent to 27.6 percent.

 • Increase participants’ share of prescription drug costs—11.7 percent to 27.2 percent.

 • Increase employee portion of dependent coverage cost—10.4 percent to 23.8 percent.

Heartening, I suppose, that although employers are establishing cost containment lines and shifting costs beyond those lines, they continue to see value in continuing health care benefits for full-time employees rather than simply abandoning them to seek coverage individually on the exchange. In the face of a variety of impending nightmares surrounding administrative costs still to be inflicted by the ACA, I find single employers’ willingness to continue to provide health benefits to employees admirable. And it makes me feel less like an idiot myself. [SPH]

Blessings. Nearly every morning I take time to consider the day ahead and formulate a rough plan of action—a prime component of which is shuffling items into a series of mental lists of things that must be accomplished, should be accomplished and would be nice if they were accomplished. I ask for both guidance and the ability to adapt to the unforeseen and then either heroically charge or grudgingly trudge forth to face windmills and inconsiderately discarded chewing gum.

I’m routinely befuddled and/or annoyed by the daily interruptions to and unmet expectations of my plan. But often I’m also pleasantly surprised. Though running late, I saw a fox on the way in to work today and, not raising chickens for fun or profit, it made me smile. While working at home I kept an eye on the Masters over the weekend and the guy who won wasn’t my first (or second or third) choice, yet his was quite an accomplishment nonetheless. But further, there was one brief shot during one of the days when a beautiful heron flew into the scene and settled down on the course. Herons are not particularly rare in Georgia, as at least one friend of Broker World could attest (having lost a significant number of expensive goldfish from his ornamental pond), but the glimpse of this bird in a few unexpected, unrelated seconds during a four-day tournament full of amazements really made me happy.

I can be uplifted, warmed and comforted by many things unforeseen when I allow myself to be. The difficulty for me is maintaining the necessary shift in perspective. I’m more fortunate than most because I make a decent living and overall I love what I do. I’m annoyed by unmet deadlines, unfulfilled ad schedules, administrative snafus, travel costs, meeting conflicts, past due accounts, the inability to find a pen that works, and this damned computer that shut itself down—configuring updates—halfway through the first draft of this column.

On the other hand I am encouraged, grateful and warmed every time someone tells me that they love the magazine, or that Broker World is good for the industry, or thanks me for covering their meeting. I hope the work we do is beneficial and I certainly strive for that. Each issue put to bed brings a sense of accomplishment—sometimes greater, sometimes lesser. These, though, make up the understood framework of responsibility.

These are gifts: that I have a magazine, earn an income, have a home, a loving wife, pets, cars, clothes, food—that these particular things were given to me rather than to someone else. But the real reason I love what I do is the people I have been fortunate enough to grow friendships with over the 32 years I’ve been involved with Broker World. I can truly boast many dozens of people—BGAs, carrier and vendor reps, brokers and association staffers—whom I am genuinely tickled to see each time our paths cross. And I have more than my due whom I consider to be dear, lifelong friends. These many people are the truest blessing—the absolutely irreplaceable part of my love of my occupation and an inestimable part of the richness of my life.

The happiest of these folks I encounter are those who demonstrate this same enthusiasm toward their peers and those with whom they do business—carrier and vendor reps to each other and to BGAs; BGAs to peers, to carrier reps (sometimes even underwriters!) and brokers; brokers to BGAs—and I bet to their clients.

Insurance brokers have clients who depend on them for relief from a series of worries—family financial wellbeing, income replacement or continuation, legacy wishes, health care costs, long term care costs and more. Life itself is an exercise in dealing with the unforeseen, good and bad, and knowing that the people they love will be aided in the times of greatest need eases those clients’ minds and allows them a greater opportunity to enjoy their lives. Helping them plan for their wellbeing, that of their families and gifts to causes that have added enjoyment and purpose to their lives is the framework of a broker’s responsibility. Being of service in this way brings a sense of accomplishment. If my experience can be extrapolated, among a broker’s greatest blessings are getting to know his clients and care about them—hearing about the little things that brought them joy and offer you smiles. Keep your eyes open for the foxes and the herons. [SPH]

It is my sad duty to report the passing of a true Broker World and industry icon. John H. Melchinger, The Marketing Coach, passed away March 12. John graced the pages of Broker World for nearly 25 years, many of those as a monthly columnist. In the early days, his columns were run under the apropos moniker SMART Marketing; subsequently under Private Practice Marketing; and as semi-retirement inflicted itself, John wrote several articles per year appearing in our general interest section, espousing the theme “Do these simple things to get one more hit every ten times at bat.” He was a prolific author, writing several books and many articles for other trade journals and online resource sites.

John was a marketing coach extraordinaire, coaching hundreds of advisors in his 35 years as a “behavior modification specialist.” John often explained that “you have to give it away to keep it,” and nowhere did that ring more true than in his near gluttonously treat-packed marketing columns for this magazine. John held nothing back, confident that those “above average advisors who are trying to be great” would still seek him out. For those who might not, he was passionate that his articles still offered them great benefit.

John was born in 1948 into a life insurance family in northern New Jersey. He served in U.S. Army Intelligence as a “spook” and Chinese Mandarin translator from 1969-1979, eight years active, two years active reserves. He was involved in financial services since 1977. Originally a life insurance agent selling estate planning services, John became a pioneer of target marketing in life insurance and financial planning and a personal marketing consultant to many of the highest performing advisors and planners in financial services today, specializing in personal branding, ethics and relationship building. Another sage “Melchism” was “Change does not always mean progress, but progress always means change.”

A disabled veteran, John’s service to people extended beyond the inestimable ripple effect benefit his financial services coaching brought to insurance consumers. He was a member of Sertoma, a former Big Brother, and performed notary services for shut-ins in need in VA and other area hospitals. He also worked to constructively help the hearing impaired. He believed that “helping those in true need gives back for all those who have helped me throughout my life. The world needs all it can get now.”

John leaves behind his wife, Jayne Alford, and a legion of Broker World fans and successful advisors. Long-time Broker World Editor Sharon Chace said, “I only met John in person twice, but we had so many great conversations I considered him a dear friend.” Less involved, but a great admirer, I was fortunate to have a few of those conversations with John and always took away feelings of optimism, positive challenge, enthusiasm and a mutually held mandate and love of service to others.

I’ll end my tribute by quoting my favorite John Melchinger article  close—November 2013: “I wish you enough sun to keep your attitude bright no matter how gray the day may appear…enough rain to appreciate the sun even more…enough happiness to keep your spirit alive…enough pain so that even the smallest of joys in life may appear bigger…enough gain to satisfy your wanting…enough loss to appreciate all you possess…enough hellos to get you through the final goodbye…I wish you enough…no more, no less.” [SPH]

Melancholy work writing an In Memoriam for a dear friend. I’m saddened to relay the passing of Emmett Godfrey, formerly Underwriting Services of Alabama, Birmingham, AL. I met Emmett and Debby in the early days of the Broker’s Health Insurance Network (BHINI) and enjoyed many happy meetings for the next 15 years, until the State Legislature of Alabama helped put them more or less out of the group health insurance business.

Emmett began his insurance career with Connecticut Mutual Life straight out of the University of Montevallo with a degree in marketing and business. In 1975 he founded Metro Brokerage, specializing in group health insurance sales and brokerage. In 1978 he merged Metro Brokerage with Underwriting Services of Alabama, forming the agency’s health insurance division. Together Emmett and Debby built one of the strongest MET brokerage organizations in the southeast, qualifying for countless company incentive trips and production awards.

In his career Emmett had been named Birmingham Outstanding Young Marketer and had been named to the Million Dollar Round Table. He served the insurance community as a director and officer of the Alabama Association of Health Underwriters, the Birmingham Association of Health Underwriters and the Broker’s Health Insurance Network.

Emmett’s loving wife of 44 years relates, “Emmett always said he loved the life afforded us by the insurance industry, but the lifelong friends he made were the bonus money couldn’t buy.”

I was fortunate enough to see Emmett and Debby several years ago at the BHINI 20th anniversary meeting, and again a year or so later at a special reunion of veterans of the MET business. Special thanks to friend Dan Jumonville for that meeting, as it was the last time I saw Emmett. I learned of his illness only a few months before his passing.

I count myself among many who called him friend, likely because I remember most his broad sincere smile, ready laugh and wonderful, warm, welcoming manner. He was always effortlessly kind and the epitome of a southern gentleman. Emmett is another reminder for me that we take our friendships sometimes for granted in the sense that we always figure that there will be sometime in the near future when we’ll walk into a meeting and have the unexpected pleasure of seeing that big smile across the room. I will truly miss that, as will many. [SPH]

Further sad news, this time from our friends at the National Association of Insurance and Financial Advisors (NAIFA). President Juli McNeely, LUTCF, CFP, CLU, recently announced the unexpected passing of NAIFA CEO Dr. Susan Waters. Dr. Waters served as deputy CEO from 2007, as acting CEO in 2009 and was named chief executive officer in 2010. She had more than 23 years of experience in professional association management as well as experience in the insurance industry.

Prior to joining NAIFA Dr. Waters had been president of Sexton Consulting, had served as the CEO of two other associations, had been a licensed insurance agent and had served as the executive vice president of an insurance agency. In 2013, during her tenure with NAIFA, she was the recipient of the American Society of Association Executives’ Key Award, recognizing the association CEO who demonstrates exceptional qualities of leadership and displays a deep commitment to voluntary membership organizations.

In describing Dr. Waters, McNeely stated, “Susan’s passing is a great loss for the NAIFA family. She was a dedicated leader and a strong advocate for our industry. Those of us who were fortunate to work with Susan would agree that she cared very much about the work NAIFA members do every day in securing the financial futures of our clients. She believed in this industry and was proud to be a part of it. We will miss her very much.” [SPH]

It is my distinct pleasure to congratulate dear Broker World friend Steve Katz, chief optimist of Premier Brokerage Ser­vices, Jenkintown, PA, recipient of the 2014 NAILBA Chairman’s Award. The award was created in 2009 to honor an individual within the NAILBA community who has made a special impact on the association and on the industry over the past year.

Barbara Crowley, 2014 NAILBA chairman, in announcing her selection, praised Katz for his tireless work with the NAILBA Charitable Foundation, not only volunteering his time during the annual meeting, at which he serves as auctioneer extraordinaire, raising many thousands of dollars during the live auction, but for his behind-the-scenes work throughout the year on the auction committee, strong-arming carriers, vendors and members alike to donate items for both the silent and live auctions.

In her address to the membership, Crowley outlined Katz’s extensive charitable endeavors, stating, “This year’s recipient is so dedicated to philanthropy that he and his family operate a family charity trust to support and enhance the formal and informal education of people everywhere, and his agency has a policy allowing staff to take time off twice yearly to do volunteer work in their communities. In addition to his community service, he routinely sponsors the charities he serves for NAILBA Charitable Foundation grants. And to top it off, this year he was instrumental in working with his colleagues in BRAMCO to coordinate their matching donation program for the foundation. He really exemplifies the mission of our foundation, doesn’t he?”

Presenting the award to Katz, Crowley added, “We are so very grateful to have your support and enthusiasm, year after year.” I can only add that he’s a very stylish fellow as well. [SPH]

It is also my privilege to congratulate (belatedly, I regret) Samuel R. Lane, founder of Fairlane Financial Corporation, for his selection as the 2014 recipient of NAFA’s Insurance Marketing Advisory Council’s Bo Johnson Spirit Award for Lifetime Achievement. The award recognizes courage, spirit and determination that challenges the status quo, inspires others to achieve, contributes unselfishly to others, and works ethically and conscientiously to improve the fixed annuity marketplace.

In announcing Lane’s selection, Kim O’Brien, president and CEO of NAFA, explained, “Sam is a true original in the insurance industry. Dating back to 1955, Sam helped pioneer the distribution of fixed annuities through independently licensed brokers. He is responsible for setting the stage for life companies to manufacture insurance products and then delegate their distribution to marketing specialists.” O’Brien continued, “Without Sam, the phrase ‘national marketing company’ and this ‘new’ concept of distribution might never have been born.”

Having founded Fairlane Financial in 1955, Lane remains the CEO and chairman of the company—which will celebrate its 60th anniversary this year. A family business, Ron Lane, Sam’s son, serves the company as president, and the third generation, Ron Lane, Jr., serves as senior vice president. By Sam’s side throughout this ride has been his wonderful wife of 72 years, Lucille.

My first exposure to Sam Lane was in 1985. Working at the magazine originally in several “relatively harmless” roles, it was determined that I should try my hand at sales, come what may, to see if there might be a productive future for me in the family business. Profoundly clueless and yet eager to prove myself, I dialed the provided number, got Sam, and was delicately scolded for calling in on their 800 number when I didn’t have a toll-free line for him to use. Despite the awkward start, Fairlane Financial somehow became my first sale, proving beyond a doubt Sam’s marketing savvy, and forging what would become a strong bond of friendship between the Lane family and me.

Fairlane Financial’s loyalty is on exhibition monthly on page two of this magazine, a commitment uninterrupted for 30 years and counting. And to this day I continue to call their local number, despite having added our own 800 number very shortly after our initial conversation! Congratulations to Sam Lane for this award, but much more for six decades of strong family values and spotless integrity in serving our industry and helping fulfill the needs of independent agents and their clients throughout the country. [SPH]

t is with the utmost delight that I announce that the National Association of Independent Life Brokerage Agencies (NAILBA) has chosen Art Jetter as the recipient of the 2014 Douglas Mooers Award for Excellence, the brokerage industry’s most prestigious accolade. The award is bestowed on an individual who is most committed to furthering independent brokerage as a distribution system and who demonstrates an exemplary record of community service. Jetter was honored at the annual Mooers Award black tie dinner at this year’s NAILBA convention in Hollywood, FL.

Jetter began his insurance career as an agent for Guarantee Mutual Life Insurance Company in 1974. He started Art Jetter & Company in 1979, and the agency has grown to be one of the most recognizable in our industry—and not just because you can’t pick up a trade magazine anytime without his picture being in it. But that highlights one of the reasons he was a unanimous choice for this award—his industry service.

Jetter served on the NAILBA board of directors and as that organization’s chairman in 2000. He was chairman of the NAILBA PAC in 2006. He has served enthusiastically on a number of committees and is NAILBA’s representative on the board of ACORD.

In addition to his service for NAILBA, Jetter served as president of the National Association of Health Underwriters in 1991-1992, traveled extensively speaking to industry groups, lobbyists and legislators, and is certainly one of the people who contributed to the fall of Hillary-care. Where the hell was he a couple of years ago? But I digress. He was the recipient of the Harold R. Gordon Memorial Award, NAHU’s highest honor, in 1995, and received their Spirit of Freedom Award in 2000.

He was named the Mass Marketing Insurance Institute’s Person of the Year in 1993.

An active member of The Marketing Alliance, he received that group’s highest honor, The Billy Vogel Award, in the spring of 2014.

Serving both our industry and his community, he served on Nebraska Governor Nelson’s Blue Ribbon Health Care Commission and Representative Chris­tensen’s Medicare Reform Advisory Committee, and he chaired the Nebraska Small Group Reform Plans Committee and the Nebraska Governor’s State Compact on Health Care Reform.

He also serves on the board of Wounded Warrior Family Support. He served his country as a Captain and Section Commander in the Viet­nam War from 1968 to 1972, flying a Cobra gunship on more than a thousand missions and earning many medals and commendations, including the Distinguished Flying Cross and the Bronze Star. He further served from 1978 to 1982 in the National Guard Medical Service Corps as a helicopter ambulance pilot.

In addition, Jetter donates his time and resources to almost a dozen other charitable causes and institutions. He has more industry designations than congressional members get paid vacations, and yet he’s a devoted husband, father and now grandfather. In wrapping up his speech announcing Jetter as this year’s award recipient, NAILBA Immediate Past Chairman Ray Phillips explained, “While we see an industry pillar and a war hero, they just see Grandpa.” Addressing the vast audience at the award dinner, Phillips concluded, “I am honored, humbled and thankful to be the person to present to you the 2014 Mooers Award winner—Art Jetter.”

On a personal note, one couldn’t ask for a better friend. Well done, Art, and thank you. [SPH]

Estate and legacy planning is the worry and the plaything of the wealthy, right? Certainly the outermost layer of the onion involves trusts to remove assets from the taxable estate, life insurance and annuity funding vehicles for those trusts, trust-owned life insurance to offset estate taxes, and succession planning to compensate those both in and outside of a prosperous family business. The most obvious role of many in this industry is to advise clients on the many uses of life and annuity products in the planning process and provide the best products for those chosen applications.

Further beneath the surface are considerations for today’s ever-more-present mixed families and consideration given to children of previous marriages as well as the current, everlasting one; special needs planning with a host of intricacies and empathies mandatory to understand and embrace; legacy planning involving one time or perpetual gifting to charities or causes dear to your clients; and counsel for those left behind—the beneficiaries of your efforts to protect families from the financial hardship of the loss of a loved one.

Closer still to the core, in my belief, is disability income planning and long term care insurance—helping insure that an illness or injury won’t derail the plan due to loss of income or erosion of assets through the need to provide care.

In case there may be some doubt, I am not of the belief that the majority of our country’s financial ills could be solved by eliminating “tax loopholes” and enabling the government to seize a greater percentage of the assets of the well-to-do. I am further, oddly enough, a fervent supporter of the tax deferred inside buildup in life and annuity products. I’m on record as dismayed by the left’s attempts to demonize both the insurance and financial planning industry, and the wealthy who have fairly employed countless millions and seen the profit from their initiative, intelligence, courage and capital. I’m a big fan of the quote widely attributed in one form or another to Margaret Thatcher: “The trouble with socialism is that you eventually run out of other people’s money.”

I believe the less-than-affluent are in need of estate planning as well. The vast majority of Americans will not reach the maximum federal estate tax exemption amounts with their estates. They won’t need trusts for the purpose of removing assets for tax purposes. But their heirs are arguably even more in need of life insurance proceeds—to retain a home, see college plans to fruition, allow a spouse to raise children and enjoy a perhaps moderate but enjoyable standard of living. A significant percentage of these parents will have special needs individuals who will, in all likelihood, outlive them.

According to the LIMRA Life Insurance Awareness Month 2014 Fact Sheet, fewer than half of middle market consumers have individual life insurance coverage. Only 44 percent of those who don’t have it say they need it. Further, only one-third of adults say they have someone they consider to be their agent or financial advisor.

Forty percent of those surveyed say they are prompted by life events to consider life insurance coverage—marriage, divorce, birth or adoption of a child, or experiencing the death of a relative or close friend. Life Happens (www.lifehappens.org) gives multiple examples in which that last consideration is based on the hardship that befalls those families without life insurance coverage in place.

Approaching the holiday season, I propose a new life event to add to the above list: Time spent with family and friends—or perhaps in service to a cause they embrace—during the holidays presents the opportunity to reflect on how dear these people and organizations are to your clients. Is this not the perfect time to remind them to protect those who mean the most to them by purchasing life insurance coverage? Perhaps not the “sexiest” gift, but a heck of a lot better than a vacuum!

For my part, I wish you a very Merry Christmas. But whichever is your personal time of spiritual celebration, I wish you joy and the humble appreciation of friends and family who gather around you and of the causes dear to your heart—this is the legacy that truly matters. [SPH]