Yesterday I walked out on a presentation I was invited to about changes in technology. This is not the first time I have done this. I have come to the conclusion that I have only so much time and power in my batteries and I won’t waste it on a boring and lack-lustre presentation. So what drove me out the door? The presenter spent most of his time talking to the screen effectively reading the script of the presentation to his audience. There was little interaction between him and his audience. He spoke in a monotone and just rambled on. The problem is that many workshops and seminars I attend look and sound like this. If you are going to spend financial resources on planning these kinds of events to attract new clients why not put the additional effort to captivate them by building a presentation that disseminates information in a way that uses humour, drama and gets the participants involved in the presentation. When you get in front of an audience and just read the deck it says you really didn’t prepare or you really don’t care that much. That’s a terrible message to send out to you audience. When choosing the member of your staff to give a public presentation pick someone who is confident and speaks well in front of people, not someone who is introverted and uncomfortable in public situations. You only get one opportunity to make a great impression and these kinds of interactions can work to attract to new business or send potential customers running in the opposite direction. I am sorry to say that more often that not I underwhelmed at the seminars and workshops I attend. People start putting more time and effort into your presentations.
I have held off writing this blog for quite some time because I simply did not want it to appear self-serving. The truth is there is a lot of fact and fiction out there regarding this simple but powerful product or as I call it contract for money. At the very basic level it can provide your family with money to carry on after you die. The simplest and least expensive form of Life Insurance is term insurance, but for a young couple with a few kids 10 year renewable and convertible term is the cheapest and best way to go. Once a couple has reached its 40’s the next best approach is to re-examine the need and then determine if it might be required for another 20 years. If that is the case I often recommend that 20 year term renewable and convertible might be the way to go. It is a little more expensive than a 10 year term, but over a period of 20 years will cost less than the renewal rate of your existing 10 term when it rolls over. The next question I am asked often is how much do I need? The simple answer is as much as you can afford without compromising other daily expenses you have to put aside. The truth is that if you are earning anywhere between $50-100,000 one million dollars of insurance is not a lot insurance. How can I defend that position simply because if one were to invest the principle at today’s low-interest rates the annual income would probably not be more than $30,000 gross before taxes. If one were to spend the capital amount of $1,000,0000 it would be gone in 10 years to produce a $100,000 living allowance to a family or 20 years if $50,000 was taken out annually. Just to demonstrate that the cost of $1,000,000 is not as expensive as you think I did a survey on some software I use to illustrate to clients competitive premiums from competing Life Insurance companies. A healthy 35-year-old non-smoking male would pay about $45 a month for $1,000,000 and a health 45-year-old would pay about $92 a month for that same coverage. A more complex but scientific way of calculating insurance needs can be calculated by working out a monthly budget that the family needs to live on and then figuring out the capital that it would take to sustain that lifestyle over certain amount of time. Other things to be aware of that you might or not need but that a commissioned insurance agent will show you is a waiver of premium rider which simply means that if you become disabled the insurance company will pay the premium of that policy. My take on this benefit is if you already have disability insurance through work or on your own then this additional rider may not be as valuable to you. There are sometime accidental death and dismemberment riders which I don’t have a lot of use for because the majority of deaths are by natural causes, so you are probably throwing your money away on this one. The other favorite rider you will be a small amount of life insurance on your children. I am kind of neutral on this one as the probability of losing a child at a young age is quite low, but the cost of funerals has been quite inflationary, so you may want to give this one some consideration. That is all for today. In a future article I will talk about the upside and downside of permanent insurance and how to use life insurance for estate planning purposes.
In my role as a leader and member of a non-profit organization I wear many hats, but I have also come to the realization that sometimes I take on too many tasks. I am not superhuman, I have some skill sets and I do some things well and others just okay. There are others on the board that possess knowledge and abilities in areas that I just don’t excel at. In recognition of this I have learned to step back and either asked them to step up and do what they do best for the good of the organization of the people we serve. Sometime they just offer to take on a project or task without me or someone on the executive requesting their expertise. In thinking about the positive effects of this kind of interaction and process it is two-fold. One it reduces the stress on the leaders of the group as it frees up some of their time to spend on other initiatives. Second it creates a feeling of trust and positivity in the group as team members are given the responsibility to take on major tasks and use their talents and skills in the areas where they excel. At a recent event our organization planned and executed that went exceedingly well, I stood at the back of room and just enjoyed the moment knowing that it was total team effort that had created magic that had unfolded before my eyes. I know as owners or executives we crave control, but we must learn to trust in the skill and talent of our team and let them make important contributions to the success of our organizations.