Even after 30 years in the business, Edwin W. Thauer Jr., CLU, ChFC, LIC, remains very "hands-on" when it comes to personally enrolling all of his 401(k) and flex plans each year or at open enrollment. It's one way he is able to "see the people" and cultivate deeper relationships with many of them.
Thauer (pronounced "tower") is the president and CEO of Design Underwriting Inc. in Grand Rapids, Mich. He founded the company back in 1980 with his original agent as his partner.
That was four years after he got his start in the insurance business, obtaining his license after his father-in-law, who was also an agent, thought he had the right personality to be a salesman. "Apparently, he thought I had sold him on marrying his daughter," Thauer recalls.
Design Underwriting Inc. came to be as he and his partner decided to represent their clients as independent agents "with the idea that we would help them design coverage to fit their needs," Thauer says.
That explains the company name.
Design Underwriting is a full-service financial agency offering a wide range of financial products and services to individuals and business owners. Thauer built the business on targeting companies to sell individual life insurance policies and a range of other products to groups of employees, which he's been doing successfully for almost 30 years. He has qualified for MDRT's Top of the Table six times and Court of the Table eight times.
"We targeted businesses in all areas of coverage from retirement plans to all types of group insurance plans -- short- and long-term disability, group life, health and dental, etc. We do all the 401(k) and Flexible Spending account enrollments in one-on-one meetings, so we get to know all the employees, not just the business owners, and we develop long-term relationships with them. This leads to continued business with many individuals," Thauer says.
But that doesn't mean his practice hasn't evolved -- or been significantly affected by the economy, which, as everyone knows, has hit Michigan particularly hard.
"The group market had become much tougher as my practice has evolved and I have chosen not to focus as much of my efforts on developing more group business," he says.
"The current economic environment in Michigan especially has forced some of my clients to change or even stop the employer match in the 401(k). In other unfortunate situations, they have had to lay off employees or even close down their business all together," Thauer says. "My close, long-term relationships have called on me to help them keep much of their savings that they had in their qualified plan by helping them do rollovers into IRAs for them. I've also had to make more phone calls in these down times to generate the activity needed to keep business flowing."
While IRA rollovers have been popular for him of late, he does not expect to see much of a boom in Roth conversions as a result of new tax laws taking effect in 2010. He says he might do a few where it truly makes sense, but it won't have much of an effect on his practice.
And the economy in Grand Rapids has not been hit anywhere near as hard as Detroit, although Michigan in general has been hit harder than perhaps anywhere else in the country. Thauer points to the incredible recent growth of the city's medical community as a case in point, but mentions there is still plenty to be concerned about -- such as the construction industry in the area once all the hospital projects are finished.
LEAP to safety
Many consumers have reacted to the downturn by seeking out safer investment strategies. Thauer says this trend led to his "current passion," which is the LEAP (Lifetime Economic Accelerator Process) System.
LEAP Systems Inc. says the goal of LEAP is "to increase the wealth and protection of each client during their lifetime. LEAP accomplishes this by using an efficient and effective planning process unique to the financial services industry. These planning advantages are based on a dynamic and holistic financial model called the PS&G Model."
Thauer's primary company, American United Life Insurance Company (AUL), a OneAmerica company, has embraced LEAP as a process for its field force.
Thauer says his sales process is to introduce LEAP to clients, friends and referrals, "usually by sending out Bob Castiglione's book first, then meeting to introduce the process by using the software. The client then completes a questionnaire, which can be done on paper or online.
"We meet again to discuss their particular details, pick up supporting documents, and answer the Who, What, Where, When and Why questions, so we can correctly input their data onto their financial model. We have two or three additional meetings for an hour or so each to teach them how to maximize their financial security for themselves and their families, as well as how to maximize the efficiency of their money at work," Thauer says.
"I have many clients from years of working in this industry and many are prospects for the LEAP process, so I am introducing it to as many of those people as fast as I can," he adds.
Thauer just began doing seminars at his employer groups, for example via a brown bag lunch presentation, and he's done an online "Go To Meeting" for another group.
When asked about his typical schedule, Thauer says he still does all his own enrollments of all kinds and schedules as much as he can. "As my hero Bruce Etherington says, 'You dress up and show up and see the people, see the people, see the people! Nothing happens unless you see the people.'"
To see the people, you've got to make the appointment. "I like to at least make an appointment, because appointments, even at night, encourage success," Thauer says. "As the saying goes, 'Successful people do what unsuccessful people aren't willing to do.'"
Next-level thinking
His advice to those seeking to reach the next level is to personally enroll all your 401(k) and flex plans each year or at open enrollment. "Get to know all employees. Ask questions, which leads to greater relationships and business opportunities," Thauer says. "Most business owners have no problems allowing business to be done on company time at the place of business. They see my service as an additional employee benefit that doesn't cost them anything."
Additionally, he is a huge proponent of joining a study group, like the MDRT one he joined 20 years ago -- The Pinnacle Group (www.thepinnaclestudygroup.com) with "17 of the greatest guys in our industry."
The study group is made up primarily of Court of the Table and Top of the Table members "who are very encouraging, uplifting, and who teach and love one another. We all strive to do a better job for our clients. I can honestly say in my career it's been one of the biggest steps I've ever taken."
The Pinnacle Group meets twice a year in February and August, with different host cities. Beyond that, the group sees each other at the MDRT annual meeting in June, and members frequently call or e-mail other members to check in and offer ideas and encouragement.
Additional professional inspiration, Thauer says, comes from reading and listening to Bruce Etherington's books and tapes. He also recommends younger advisors ask a veteran in the business to be a mentor.
Thauer closes our interview with another of his favorite quotes: "'A man can do amazing things if he has amazing things to do.' Providing all the benefits of permanent life insurance provides amazing things for our clients, so go do it!"
Away from the office means away from the office...
Ed Thauer loves to travel, and admits to being very good about scheduling and enjoying his time away from the office. While that often means spending time with his wife, children and grandchildren, he has also been fortunate to be able to combine that interest in travel with some of his other primary interests away from the office.
"I have been on mission trips with 'Mission2Guatemala.org' three times in the last two years -- two in 2009 alone. Their mission is to build prefabricated churches and put roofs on schools and in the process share the love of Jesus to the small villages of indigenous peoples of Guatemala," Thauer says. "It is incredibly rewarding. After my trip [last] January, I thought it would be great to bring some others I know in our industry so I invited other agents. I led a team of friends and agents from across the country in September and introduced them to the ministry."
But his church and community involvement do not end there. Thauer is a member of the Grand Rapids Lions Club and is involved in many of its projects, including the Foundation Board. He is active in the Home and Building Association of Greater Grand Rapids and the Grand Rapids Economics Club.
"I also sit on the board of Community Link, an organization that helps refugees learn about living in the United States, including language skills, job skills, basic laws, etc. I have been a Bible Study leader for many years. This is my fourth year as a Kids' Hope mentor for the same young man, who is currently a fifth grader. We meet weekly during his school day and work to improve his learning skills and just get to know each other through games and such.
While many agents use their community involvement as a networking tool to help build their business, that is not a motivation for Thauer.
"These kinds of activities help us be the whole person we should be," Thauer says. "[They're] not for developing friendships and contacts that may be beneficial to our business."
Brian Anderson is Editor of Life Insurance Selling.
