U.S. Update News June 2004

We plan to post the July 2004 Internet monthly update to our six monthly update web sites on June 28th.

The June 2004 disk update will be processed Friday, June 25th and Monday, June 28th.

Disks will be shipped Monday, June 28th. You should have the July Update in your office by Thursday, July 1st. Unless you have made arrangements to purchase your diskettes, please return your May disks ONLY AFTER you have successfully installed this June 2004 Update. May disks are your backup in case you should have problems installing the June edition.

IMPORTANT NOTE: Subscribers who are still receiving disks can save up to $100 per year by switching to updates by Internet. Please read the last part of this bulletin for complete details. Don’t wait for your next invoice to make that change. Compulife will bonus your subscription renewal deadline for switching from disks to internet.

Special Referred Leads OfferHow would you like to add some free months to your Compulife subscription when you renew?

Compulife now offers an opportunity for subscribers to add free months at the point they are paying their next subscription renewal. With this new referred lead program you can double your subscription from one to TWO years while paying just the one year price.

How To Add Free Months To Your SubscriptionAs you know Compulife offers a 30 day free trial to any agent who has not used our software before. We have found it the most effective way to introduce our software to potential new customers. In fact it has proved so effective that we now make a “Get 5 Bucks” offer to any agent who can demonstrate to us that they have tried our software. That’s 5 dollars whether they buy the software or not!

Our constant challenge is how to locate new prospects for that trial offer. We have now developed a program where you can help.

If you refer two agents to take the 30 day free trial (who can then go for the $5 challenge), we will reward you with an additional free month of subscription time. Now that’s “referrals” for a 30 day trial, there is no requirement that they purchase. When Compulife receives your two referrals we will issue you a certificate that can be used when you are paying your next subscription renewal.

For example, let’s assume you have sent in 12 requests for trials, and you have received 6 certificates for 6 free months. When you pay your next one year subscription you simply send Compulife a copy of your certificate(s) and when we send you the next Internet Master Disk it will have your subscription period stretched from 12 to 18 months.

Trial requests must be e-mailed to barneyrl@compulife.com and include:

Subject: Compulife Referral Offer
The names of agents (you are referring)
Each agent’s address, phone number and e-mail address
Your Name

NOTES:

1. This offer is not available to subscribers who are receiving monthly updates by disks; it is only availabe to subscribers who obtain updates by Internet.

2. Trials must be sent and received by e-mail. Trial requests that require shipment of disks do not qualify.

3. If you are an agency subscriber (standard license) it requires 3 referrals to obain a free month certificate.

4. Compulife reserves the right to impose a maximum of 12 certificates per renewal. If it turns out that we have a subscriber who refers more agents than the maximum, we may elect to accept more than 12 certificates if it turns out that a reasonable number of trial users did in fact purchase our software.

5. Compulife reserves the right to terminate this offer to any subscriber who appears to be simply e-mailing us the phone book. While there is no requirement that your referral purchase our software, the purpose of this program is to introduce our software to those who “might” purchase. If it appears that we are being sent “disinterested” leads, and that the subscriber is not exercising any judgement in selecting the leads that they are providing, the program will be terminated to that subscriber.

New Customers Cost MoneyWhether we compensate you by lowering your cost for software, or whether we spend money on advertising, Compulife must continue to invest to acquire new customers. Growth is essential. Natural attrition due to retirement, agents leaving the industry, etc., means that Compulife must constantly add new customers just to maintain our current customer base. The prices that we charge for software are a function of how many systems we have in the market.

Not only will your referrals to Compulife help you by directly lowering your average monthly subscription cost, by adding free months of service to your subscription, this referral program can lead to more overall lower prices by growing our customer base more quickly.

I would personally appreciate your help with this.

Improved CSV quotationsDuring May Compulife added the ability to store and retrieve CSV and PUV values which have “pennies per thousand”. Prior to this Compulife stored CSVs and PUVs without decimal points. A small number of companies use decimals in those values and we wanted to more accurately quote those values.

Approximately three companies have had their CSV and PUVs upgraded. If you believe we have overlooked other companies, please advise.

U/L T100 – Minimum Premium ComparisonCompulife has been unwilling to quote U/L products due to the complexity of these products. The complexity is two fold. First, reproducing the values generated by the life company itself is highly difficult. Second, because U/L products can be illustrated in so many different ways, using various investment scenarios, there is no real uniform way to make an oranges for oranges comparison.

During May a couple of Compulife subscribers suggested that they would like to see Compulife include a “minimum premium” comparison of U/L plans which have, as the basis of their insurance, guaranteed Term to 100 insurance.

Given that Compulife now quotes “no lapse U/L to 100” products in the United States, we thought there was merit to the request.

In order to eiminate the investment consideration, the proposed comparison would be “premium only”, showing the minimum premium for product A versus products B. Given those conditions, both subsribers suggested the comparison would be very useful.

The question now is how do our other subscribers fee about this?

Please e-mail your comments to Bob Barney at barneyrl@compulife.com. We’ll report back to our subscribers in the next month or two.

Disappearing Floppy Disk DrivesThis is a follow-up to last month’s bulletin about disappearing floppy disk drives. As we told you last month, Compulife is now providing both a floppy disk AND a CD to subscribers who are renewing their Internet Update subscription to Compulife. Installing EITHER the floppy or the CD will upgrade your subscription.

During May we shipped both CD and floppy and the number of service calls related to doing that dropped dramatically. It would appear that everyone is reading the CD’s fine and that there are no problems associated with that.

Compulife intends to monitor this situation for the next few months and may elect, at some point later this year, to stop providing the Internet Master Disk on floppy, and provide it on CD only. Needless to say, if you believe that represents a problem for you, please contact me (Bob Barney) at (800) 798-3488.

NO Monthly Updates by CDCompulife will NOT be providing monthly updates by CD. We believe that CD’s are an interim update technology that will eventually be replaced by Internet updating. At some point we will likely have a system for paying for and obtaining subscription renewals by Internet.

Because we are already phasing out disk updates in favor of Internet updates, there is no reason for Compulife to support a monthly update system using CDs instead of floppy disks.

Therefore, if you don’t want to use monthly update floppy disks, we strongly encourage you to switch to Internet Updates. That alone saves you $100 or more per year which can go toward a high speed internet connection. Please read the end of this bulletin to find out how to switch to Internet Updates.

If you don’t want Internet Updates, and you are getting ready to buy a new computer, MAKE SURE YOU ORDER it with a floppy disk drive. As discussed, this should cost you no more than $20.

Compulife QuickerQuoterCompulife has completed work on our new product called “QuickerQuoter”. This is a “single company” quotation software product targeted directly at life insurance companies for distribution to their agents.

QuickerQuoter is a Compulife-like quote system for a single life insurance company and its products. This new product should be attractive to life insurance companies because it is FREE.

That’s FREE as in NO COST!

IMPORTANT: The software is only given to life companies.

Compulife will not distribute this software product to anyone but the life companies. The life company is free to give the program to anyone that they want to give it to.

Compulife only provides this new software to life companies who have been kind enough to assist us with the provision of product, rate and state approval information. If a company is unwilling to help Compulife, QuickerQuoter will not be available to the company.

We hope this will be an added incentive for life companies to help us keep our rates and database up-to-date. That will have obvious benefits for our existing Compulife subscribers.

Companies interested in retaining Compulife for custom software work are welcome to contact Bob Barney at (800) 798-3488. I’ll direct you to the project consultant and programming staff who are in charge of this new service.

Dueling Web SitesFor those who update by Internet, Compulife has gone to great lengths to provide you with redundancy in our web sites. Our main web site is:

www.compulife.comHowever, we keep two completely separate websites, on two completely different servers, at:

www.compulife.us     or     www.compulife.ccWhatever we update to compulife.com, we are also updating to compulife.us and to compulife.cc. If one web site goes down, for whatever reason, either of the other two are ready to serve you. That includes both monthly and mid-month updates.

For those doing monthly updates by Internet, we rely on three other web site to supply monthly updates. These are automatically checked and used by our automatic Internet update software.

Returning Monthly Disk UpdatesFor those not wanting to return disks there are two ways to eliminate the problem.

1. Switch to obtaining monthly updates by Internet.

Not only will you eliminate the expense and hassle of returning disks, you will save $100 per year in subscription fees.

To switch to Internet monthly updates, go to our web page www.compulife.com and select the last menu choice “Forms, applications, instruction tutorials, etc.” Under the section “License Agreements” you will need to select and complete a new License Agreement for the type of license you have. After you have printed the new agreement, please read it, especially the part where you agree that you have successfully downloaded and processed our “mid-month updates”. If you haven’t done that before, call us and we’ll be happy to step you through the procedure. It’s easy.

2. Disk Purchase Program

The other way to avoid returning the disks and the disk box each month is to pre-purchase them for $21 per year ($1.75 per month). Once you do that you can keep them for future reference, throw them away or return them for a credit (once each year) when you are invoiced for the following year. $21 costs you less than mailing back disks each month.