Stephen Howard

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]

The first life insurance policy sold as such is widely believed to be one on the life of one William Gybbons for a one year term, a face amount of 400 pounds, and a premium of 32 pounds. Unfortunately (my assumption, not necessarily reflective of the emotions of his widow, heirs or associates, but strong presumptive evidence suggests it to be the feeling of the insurers) Mr. Gybbons expired shortly before the policy did, prompting not only the first death claim, but also the first instance of life insurance litigation. It seems the gentlemen jointly insuring his life attempted to assert that the 12 month term was intended to be measured in lunar months rather than calendar months—an argument not upheld by the court presiding.

I’ll make the giant leap that the case of Mr. Gybbons had at least some butterfly effect on the focus of this month’s issue—the impaired risk. I would fancifully suggest that had the insurers been able to take a closer look at a variety of factors surrounding Mr. Gybbons’ life—his health, occupation, lifestyle, family history, etc.—they might have been better able to assess his mortality and decide either to charge a higher premium, exclude certain circumstances or decline to accept the risk. Perhaps not—maybe he was perfectly healthy and just stepped in front of a runaway carriage.

It’s not nearly so wide a leap to trace the origins of brokerage to the impaired risk—substandard business. Years ago most career companies wanted mainly “healthy” business, and those with health impairments were declined. A few intrepid wholesalers and carriers made their living finding and providing coverage—typically more expensive—for these declined individuals and their families. Agents with declined clients went to substandard agencies that would in turn shop the cases through their lineup of carriers to find the most favorable rating for the proposed insured.

Today  brokerage encompasses much more than finding coverage for those with health impairments, but the underlying premise remains—finding the best possible coverage for the client, his family, his business and his employees. Most BGAs count their prowess at aiding the impaired risk as a strong contributing factor to the relationships they are able to form with independent agents and financial planners, leading them to establish new levels of service to consumers via case management, internal underwriting and assessment, and business continuation, estate and legacy planning expertise.

Central to all is that service to the consumer is paramount. Helping the person with a health impairment find coverage that will benefit his family at a price he can afford where others either could not, or would not, truly sets the independent agent and the BGA apart. [SPH]

A significant fact central to the success of the agent and the potential benefit to those he would come in contact with is that he simply has the motivation to set out each day to help someone—breadwinner, family, business owner or group of employees. Pursuant to that, Broker World friend and editorial contributor Ken Smith, Assurity Life, has published a book entitled Sales Lessons from the Masters in which he explores the sales techniques, principles and philosophies of four insurance industry icons: Frank Bettger, W. Clement Stone, Ben Feldman and Joe Gandolfo. Smith devotes a chapter to each of these sales giants and then outlines the common denominators that made each of these men successful. In his forward to the book, John F. Nichols, president of Disability Resource Group, states that “The most important person today is you…because of your application of these sales principles, you will be positively serving others with your products and services.” He goes on to add, “Let these universal principles positively impact you and those who come into your life.” To obtain the book or communicate with Ken Smith, email him at [email protected]. [SPH]

Sad news for many in the BGA and carrier community, as Linda Zuckerman, wife of Gordon Zuckerman, Murray and Zuckerman, Inc., Schenectady, NY, passed away on September 23. Although not active in the industry, Linda frequently shared her great smile with me and many others at various industry events, most frequently for me at the NAILBA conferences. In my experience she was a warm, caring person who never failed to greet me with enthusiasm and a friendly hug. She will be missed by many. [SPH]

Also lost was Marilyn Lampert, wife of Arnold and mother of Tony, Professional Planners Marketing Group, Palm Beach, FL. Although they sold the agency a few years ago, many still remember Arnold, Marilyn and Tony, fixtures at NAILBA meetings and qualifying guests at more company trips than one could count. Our condolences go out to the Lampert family and all others who held Marilyn dear. [SPH]

Our industry does a great deal of good for the people of this country. In the midst of an abundance of negative leaning press and an undercurrent of “us against them” regarding insurance companies, I believe the good you do is being undermined. The fact is that the diligence of the insurance agent and the products offered by insurers are all that stand between millions of American families and financial devastation and the crumbling of their dreams. You, your BGA partners, and the carriers you represent do protect and care for the widows and orphans. It’s that simple.

Beyond that too often underpublicized good, however, our industry is rife with examples of organizations that reach out to further the opportunities of those less fortunate. Two I would like to focus on are the National Association of Independent Life Brokerage Agencies (NAILBA) and Life Happens (formerly the LIFE Foundation).

I have the honor and privilege of serving on the NAILBA Charitable Foundation board and I’ve seen firsthand the generosity of literally hundreds of BGAs and carrier representatives at the annual NAILBA conference. Further, the list of regular contributors to the foundation takes fully two pages in their program (and this magazine) to recognize. This year through the generosity of these donors the NAILBA Charitable Foundation was able to award $265,000 in grants to deserving organizations in NAILBA member communities that serve to enhance the quality of life for those less fortunate, with an emphasis on children. Included in that total is $30,000 to the Life Happens organization for their Life Lessons Scholarship Program.

Following are the other grant award recipients for 2014:

Caruso Family Charities: $27,500, recipient of the Col. J. William Felton III Grant, Lakeland, CO (sponsored by NAILBA member agency Colorado Brokerage); Lone Survivor Foundation: $25,000, Houston, TX (sponsored by NAILBA member agency Four Seasons Financial Group); Wounded Warriors Family Support: $20,000, Omaha, NE (sponsored by NAILBA member agency Art Jetter & Co.); GlassRoots, Inc.: $15,000, Newark, NJ (sponsored by NAILBA corporate supporter Prudential); The Quest for Grace Foundation: $15,000, Rexford, NY (sponsored by NAILBA member agency National Long Term Care Brokers); We Care I.N.C.: $15,000, South Haven, MI (sponsored by NAILBA member agency LTCI Partners); Fresno Survivors of Suicide Loss: $12,380, Fresno, CA (sponsored by NAILBA member agency CPS Impact); Lighthouse Family Retreat, Inc.: $12,000, Norcross, GA (sponsored by NAILBA member agency The Brokerage Resource); Angel On My Shoulder: $10,000, St. Germain, WI (sponsored by NAILBA member agency CPS Horizon); Delta Gamma Center for Children with Visual Impairments: $10,000, Richmond Heights, Mo (sponsored by NAILBA member agency The Marketing Alliance); Down Syndrome Connection of the Bay Area: $10,000, Danville, CA (sponsored by NAILBA member agency H.D. Mooers & Co.); El Viento Foundation: $10,000, Huntington Beach, CA (sponsored by NAILBA member agency CPS Insurance Services); NourishNC: $10,000, Wilmington, NC (sponsored by NAILBA member agency Financial Security Associates); Songs of Love Foundation: $10,000, Forest Hills, NY (sponsored by NAILBA member agency CPS Horizon); Casa Valentina, Inc.: $7,500, Miami, FL (sponsored by NAILBA member agency Landers–Stein & Associates); Ivy Hill Therapeutic Equestrian Center: $7,500, Perkasie, PA (sponsored by William J. Shelow, NAILBA member agency LifeMark Partners); More Than Sport: $5,000, Kailua Kona, HI (sponsored by NAILBA member agency Trumark); Reach-a-Child, Inc.: $5,000, Middleton, WI (sponsored by NAILBA member agency MVP Financial Services); Give Them Wings: $5,000, Hood River, OR (sponsored by NAILBA member agency CPS Impact); One Bright Star: $3,500, Mankato, MN (sponsored by NAILBA member agency Weilage Advisory Group).

The NAILBA Charitable Foundation is a public charity that receives gifts mainly, but not exclusively, from the membership of NAILBA and its corporate supporters. The mission of the NAILBA Charitable Foundation is to encourage volunteerism among the NAILBA membership and provide grant funds to worthy charitable organizations with limited operating budgets in local communities served by member agencies, with a special emphasis on those that enhance the quality of life for children. To make a contribution or receive more information about the NAILBA Charitable Foundation, please contact Kathy Allison, NAILBA’s director of membership and the foundation at [email protected] or 703-383-3072, or visit www.nailbacharitablefoundation.org.

In addition to all the great resources the Life Happens organization makes available to educate consumers and to help agents spread the word about the need for life insurance and disability income insurance via May’s DIAM and September’s LIAM campaigns, Life Happens also helps aspiring college students through their Life Lessons Scholarship Program. The organization recently announced the 2014 scholarship winners, awarding an unprecedented $180,000 divided among 47 deserving students to put toward their dream of a college education. This marks the greatest number of recipients and the highest level of funding Life Happens has provided through the program since its inception in 2005. Further, this is the fifth consecutive year that Life Happens has awarded more than $100,000 in Life Lessons scholarships, which was made possible by the generous financial support of the NAILBA Charitable Foundation, the MDRT Foundation, LIDMA and NAHU Foundation.

“The Life Lessons Scholarship Program is a powerful reminder of the unintended consequences that can occur when a parent dies without adequate life insurance. Those left behind are faced with difficult choices, and far too often, aspirational life plans such as college have to be put on hold in order to address more immediate financial priorities,” said Marvin H. Feldman, CLU, ChFC, president and CEO of Life Happens. “The program reminds us all of how important life insurance is to ensuring our loved ones have a financial lifeline to fall back on.”

To be considered for the Life Lessons Scholarship, students submitted an online application accompanied by either a three-minute video or 500-word written essay describing the emotional and financial adversity they faced after losing a parent who did not have adequate life insurance or no coverage at all, and how that affected their college funding plans. This year, Life Happens let the public play a role in providing two scholarship recipients from the video category with an additional scholarship. Each received an additional $4,000 as a result of people viewing, liking and sharing their videos through Life Happens’ Facebook page. The remaining scholarship winners were selected by a panel of judges consisting of members of the Life Happens board of directors, as well as executives from a number of leading insurance companies. The stories of this year’s top recipients can be viewed at www.lifehappens.org/scholarship-recipients.

Life Happens will accept submissions for the 2015 Life Lessons Scholarship Program starting February 2, 2015, through March 2, 2015. To make an individual, tax-deductible donation to help fund the Life Lessons Scholarship Program, visit www.lifehappens.org/donate. [SPH]

It’s perhaps hard to believe, but the National Association of Insurance and Financial Advisors (NAIFA) is turning 125 next year. The association is marking this incredible milestone with a yearlong celebration starting with this September’s NAIFA 2014 Career Conference and Annual Meeting in San Diego.

Seventy insurance agents gathered in Boston in 1890 to form the National Association of Life Underwriters (NALU), NAIFA’s previous incarnation, creating the foundation for what would become the nation’s largest group of insurance and financial advisors, with significant influence in Congress and all 50 statehouses. NAIFA uses this influence to provide a favorable business environment for its members and their clients, working to make sure their interests are protected and advanced. NAIFA has helped thousands of agents and advisors succeed, providing them with sales techniques, business best practices, product knowledge and other resources, as well as the opportunity to take advantage of the informal mentoring process of interacting with veteran agents who’ve enjoyed great success.

During the conference, attendees will have the opportunity to celebrate important NAIFA victories and participate in a variety of anniversary events. The association has created a 125th anniversary website which includes a digital timeline of NAIFA’s government relations victories and other major milestones.

To further their commitment to their members and the insurance industry as a whole, NAIFA has teamed with GAMA International to publish Advisor 2020, which uses extensive research to plot a blueprint of how NAIFA members can thrive in changing market conditions in the coming years. NAIFA has also worked with the College for Financial Planning to revitalize and modernize the Life Underwriters Training Council Fellow program, launching the LUTCF designation’s updated curriculum during this September’s NAIFA conference.

NAIFA’s President-Elect Juli McNeely, CFP, CLU, LUTCF, states, “The real message I hope everyone takes away from our 125th anniversary is that because of our strong history, NAIFA is perfectly positioned to help our members take on the challenges of the future.”

NAIFA state and local associations can celebrate along with NAIFA–National and share photos, video and other media on the anniversary website. To take part in the anniversary celebration, visit www.naifa125.org.

I came into the (trade press) business in 1983 and had the privilege of competing in what I would call the greatest era of the insurance trade press. Many were the friendly conversations with truly admirable competitors like Chuck Hirsch and Larry Albright of Life Insurance Selling, and Jack Bobo, Dave Carson and Joe Razza of NALU’s publication Life Association News. During his acceptance speech for NAILBA’s most prestigious award, the Douglass H. Mooers Award of Excellence, Bill Howard took special care to thank these men for helping build and strengthen the industry’s positive attitude toward the trade press, which he believed allowed him to join their ranks with Broker World.

I paid lip service to those sentiments for a number of years, but viewed LAN and NALU as the bastion of the career agent and thus just a less deserving competitor for the advertising dollar targeted to the independent agent. In my case, years and experience have, thankfully, eroded my ignorant bias and have developed in me a true appreciation of the great value of industry associations—in this particular case NALU/NAIFA.

Many are the benefits our industry as a whole receives from the efforts of NAIFA and its members, some of which are alluded to above. But the one I really want to hammer on now is the tremendous advantage I believe newer agents receive simply by interacting with those who’ve been successful for a long time in the insurance business—interactions that take place at local NAIFA meetings throughout the country. I think the career companies were right in virtually mandating NALU membership for their agents, particularly new ones. I believe new agents increase their chances of success by placing themselves in proximity to successful agents at NAIFA meetings. I further believe that the brokerage community is chiefly to blame if there is the perception that NAIFA membership is skewed toward and to the benefit of career agents. Independent agents are actively sought for NAIFA membership—including advertising in the pages of this magazine.

There is much buzz in our industry regarding the “new agent crisis”and the aging of the insurance agent field force. I happen to belong to an unrelated group that strongly suggests that those with many years of experience diligently stay involved to pass along their experience to those new to the group.

I believe the gift of your time and experience shared at your local, state and national NAIFA functions should be viewed as a grateful obligation to the honorable career that has given you so much. Mentoring new agents either casually, during interactions at local NAIFA functions, or formally, as exit strategy partners to insure the well-being of your loyal clients and their dependents, surely must be a firm step in the right direction to at least solving the new agent failure component of the graying of our industry. You can become a part of NAIFA by joining today at www.naifa.org. [SPH]

A  recognized industry sage and curmudgeon (founder and father) often reminded me that a distinction exists between “need to have” and “nice to have,” typically when solicited for largesse for either my personal material gain or desire to be heralded by way of the transitive property of benevolent credit assumption (if a gives to c through b, then b is really responsible and deserves all the credit). Once pidgin algebra and left-leaning economics are cast aside, Dad’s theorem rings true and I’m struck by the relevance to our industry and the communication between advisor and prospect. Even as immersed as I am in the belief of the true benefits insurance products bring to the purchasers, I can still waver between “need” and “nice” regarding both business and personal insurance protection decisions.

I would project that this debate between “need” and “nice” occurs daily in homes, board rooms and cafeterias throughout America when faced with insurance buying decisions, and has for decades, not just post 2008. Owners and benefits managers weighing employee retention issues; employees contemplating salary redirections; families weighing lifestyle risks. What is the extent of the ethical role of the advisor? And where is the balance point between prudence and responsibility, suggestion and insistence, resignation and persistence?

LIMRA reported in their Facts About Life 2013 that 30 percent of American families have no life insurance at all; only 44 percent have individual life insurance; and the average amount of coverage for adults has declined to $167,000, down $30,000 from the average coverage in 2004. The disability income insurance and long term care insurance pictures are even more serious. In Facts From LIMRA 2014 Disability Awareness Month, it is reported that less than one-third of working Americans have disability insurance. The American Association for Long Term Care Insurance estimated in 2009 that just over 8 million people owned long term care insurance either on an individual basis or through employer-offered protection. With the average purchase age estimated at 59, this isn’t quite as alarming as it may look on the surface, but is still dire.

The first question to mull is: How can we as an industry shift consumer attitudes regarding insurance products further toward “need to have”? Great resources are available from the Life Happens folks at www.lifehappens.org, as well as the Council for Disability Awareness, www.disabilitycanhappen.org. Many industry associations have materials available, including our friends at NAIFA, www.naifa.org, NAILBA, www.nailba.org, and IDIS, www.internationaldisociety.com. Many carriers have a wealth of materials available both publicly and for agents licensed with them. But you will have to commit to a diligent and well thought out plan of action. I welcome any comments or suggestions.

As an aside, it is my opinion that anyone enjoying the benefits of a career in insurance has a two-fold obligation to join the industry associations that serve their field—first, to yourself, to stay informed and continue to refine your ability to serve your clients; and second, a moral obligation to give back to the profession and the industry that has given to you.

Similarly, the second and more personal question is: How will you shift your attitude about products you’ve found to be more difficult to sell, or less profitable, from “nice to be able to” to “need to be able to”? [SPH]

It is my privilege to announce the (long overdue, I am reminded) promotion of Hope Howard to the position of vice president and business manager of Insurance Publications, Inc., publishers of Broker World. Hope officially joined the company in August of 2008 and started full time on April 1, 2010, a date that no doubt spurs piquant reflection on her part from time to time. Previously she served as marketing coordinator, a title sufficiently vague to allow an ever-increasing load of the less desirable tasks to accumulate on her capable shoulders. As many of the carrier and BGA friends we see on the road will attest, she is a great relationship builder and asset to the company.

Prior to joining Broker World, Hope was operations manager for the National Association of Insurance Marketers (NAIM), a marketing group for life and health insurance brokerage general agencies. [SPH]