Consult. Create. Close.

Transcription

1 DISCUSSION TOOLBOX LONG-TERM CARE SOLUTIONS Cosult. Create. Close. Makig a differece. I busiess. I lives.

2 PRACTICE SUPPORT Professioal Log-Term Care Support for Your Practice Ash Brokerage s elite log-term care team works to make care plaig as easy as possible for you. We will assist you i may ways throughout the process: Helpig You With Cosultatios Oce a cliet opportuity has bee idetified ad a appoitmet set, Ash Brokerage becomes your cosultative support team, attedig coferece calls with you ad your cliet to provide iformatio or aswer questios. Desigig Solutios to Fit Your Cliet s Needs Our LTC experiece is leveraged to give your cliet exactly what they eed; we cosult with you to create a presetable solutio for your cliet. Providig O-Staff Uderwriters Gettig your cliet approved with the right carrier, the FIRST TIME, is our goal. With years of uderwritig experiece, our o-staff uderwriter kows which carriers are favorable for certai coditios. Assistig With Your Applicatio We assist with the tedious paperwork ad save you valuable time. Oe of our LTC team professioals will call your cliet at a scheduled time ad ask all the applicatio questios over the phoe; the completed applicatio will be set to you for sigatures. Addig Value to Your Practice You wat more time to sped with your cliets, doig what you love. We will uleash our creative support to help you grow your reveue, improve your cliet retetio, improve your image with your cliets, get more referrals or raise the bar for your competitio or, all of the above. You have oe missio; seek cliet opportuities We ll do the rest!

3 ADVISORS CAN EXPECT EXCELLENCE Cosult. Create. Close. Cosultig, Creatig ad Closig are the corerstoes to Log Term Care plaig at Ash Brokerage. Every advisor who egages with our team of 20 professioals ca expect to receive a high level of support ad expertise. Our uique offerig of products ad cocepts provides our cliets flexibility i choice; we realize o sigle LTC solutio is a paacea for all. From iitial cosult to policy delivery, we parter with you to provide a positive experiece. CONSULT: Your Ash experiece begis with a cosultatio: Advisors lear about Ash s value offerig, ad we seek to lear about the advisor s practice Together, we cosult to develop a partership that works for you Oce the advisor idetifies a cliet who has a care plaig eed, the Ash team asks key questios so suitable solutios may be provided from the begiig CREATE: Solutios that provide the best opportuity for success are created: Persoalized proposals with specific beefits, tailored to the eeds of your cliet, are created Uderwritig prescreeig is a large part of the process; kowig the cliet s health backgroud ehaces our ability to select a appropriate solutio Oce the product solutio has bee selected, we review the proposal with the advisor to prepare for the cliet discussio CLOSE: Ash helps our advisors close: Cliets are helped to make a iformed decisio Advisors are ecouraged to egage us i the cliet discussio, i order to be o the same side of the table as the cliet, ad ask us the tough questios We serve as your cliet s advocate throughout the uderwritig process Oce the cliet is ready to take the ext steps toward applicatio, the Ash team assists with the paperwork Oce the policy is delivered, the Ash LTC team esures the advisor ad cliet are cofidet ad satisfied i their product solutio

4 MANAGING THE FINANCIAL RISK OF LONG-TERM CARE Real Wealth Is Peace Of Mid I Retiremet Risk of Self Isurig There are two costs to log-term care: fiacial ad emotioal. Persoal fuds are put at risk Give how rarely people self-isure agaist the risk of medical, auto or property loss, it s curious how may seem willig to accept the logterm care risk Self-isurig is also the way may people sped their life savigs oly to ed up o welfare (Medicaid) whe they ru out of moey Risks of Waitig Sice premiums are based o age ad beefits, each year your cliet waits costs them more moey As they age, their risk of eedig log-term care becomes greater Health chages may preclude qualifyig for isurace Liked-Beefit Isurace These are products desiged for your cliets who fid themselves i this situatio they offer the same beefits of log-term care isurace but are differet for several reasos: If they ever eed care services the moey s value is multiplied to reimburse care expeses Moey remais uder their cotrol ad they ca get it back if they chage their mid If they ever eed care services the moey still icreases i value, ad is distributed to beeficiaries i a sigle, icome tax-free sum Accelerated Beefit Riders o Life Isurace Policies With accelerated beefit isurace, emergecy moey is available for life s twi risks: dyig too soo ad ever eedig care or livig log eough to require care services. Leverage o these riders is o the life isurace; the log-term care is see as a added feature. Next Steps 1. Plaig begis by cotactig the Ash LTC team. Call (800) Expect to have a discussio about your cliet with a illustratio to follow. 3. Tell us whe you pla to meet with your cliet, ad we ll assist you with your presetatio. We kow the questios they are likely to ask ad we have the aswers. 4. Oce your cliets are ready to apply, we ll help them prepare for the iterview. RESOURCES Top Reasos for Needig Log- Term Care 1 Alzheimer s (Demetia) Arthritis Cacer Nervous System Stroke Circulatory Problems Ijury Respiratory Issues 1 America Associatio for Log Term Care Isurace:

5 DISCUSSION GUIDE Commuicate Cocers. Ope the discussio by remidig your cliets: You wat to help them maage the fiacial risks impactig retiremet The first step to estate plaig is plaig to preserve the estate Provide Iformatio. Discuss today s life expectacies ad the higher probability of eedig care services: Average aual cost of a private room i a ursig home today is about $85,000; costs are much higher i may metro areas 1 Home health aides cost, o average, $21 per hour 10 hours of daily home care ca cost as much as a ursig home 1 Household ad livig expeses for the healthy spouse usually remai the same Also, discuss the importace of havig a pla to replace the after-tax icome lost for care services. Outlie Optios. 1. Rely o the govermet? a. Medicare oly covers skilled care after hospitalizatio; Medicaid requires impoverishmet. 2. Rely o family members? a. Will your spouse be physically able to assist you with daily livig activities, such as movig from bed to chair, bathig ad dressig? Are your childre able to take time off to provide the daily support you may eed? 3. Shift the probable risk to log-term care isurace? a. This strategy leverages the beefit value of your premiums ad create a greater pool of moey to cover the cost of care. 4. Self-isure with liked-beefit isurace? a. Multiply the beefit value of a emergecy cash beefit, whether you eed it or ot. b. Remai i cotrol of their moey (cosult sales illustratios for details). We just reviewed four optios. Which oe seems best to you? 1 America Associatio for LTC Isurig, 2012 LTCi Sourcebook DYK DID YOU KNOW... ONLY 8 MILLION PEOPLE CURRENTLY OWN LTC INSURANCE AMERICAN ASSOCIATION FOR LONG TERM CARE INSURANCE, 2008 DATA: AALTCI.ORG

6 ARE YOU OFFERING ALL AVAILABLE LONG TERM-CARE SOLUTIONS TO YOUR CLIENTS? Have you asked your cliets which asset they would use first if they ever eeded to pay for log term care? Chaces are, these assets are ot beig maaged by you. Talk to them about how asset-based isurace ca be the solutio to fudig log term care services, while still providig liquidity ad a death beefit to beeficiaries. Are your cliets part of the 95 percet of Americas over the age of 18 who curretly self-isure their log term care risk?1 Ash Brokerage has strategies that allow your cliets to leverage a existig asset for LTC while still maitaiig cotrol of their fuds. EXAMPLE: 65-year-old female, healthy o-smoker, $100,000 sigle premium LONG TERM CARE BENEFIT DEATH BENEFIT PREMIUM $140,760 $422,280 $5,865/moth for LTC $100,000 Lifetime Retur of Premium Icome Tax-Free Death Beefit Icome Tax-Free Log Term Care Coverage $85,000 $286,000 THE NATIONAL COST FOR ONE YEAR OF NURSING HOME CARE TODAY3 THE PROJECTED ANNUAL COST OF LONG-TERM CARE IN 30 YEARS4 70% PEOPLE OVER AGE 65 REQUIRING SOME LONGTERM CARE SERVICES DURING THEIR LIVES2 79% PEOPLE NEEDING LONG-TERM CARE LIVE AT HOME OR COMMUNITY SETTINGS, NOT INSTITUTIONS5 NAIC LTCI Experiece Reports ad idustry stats through 6/30/2010 ad Cesus Bureau. Natioal Clearighouse for LTC iformatio, U.S. Departmet of Health ad Huma Services: Plaig for LTC, Jauary 18, 2012 Based o Joh Hacock s Cost of Care Survey, coducted by LifePlas, Ic., Based o the Joh Hacock s Cost of Care Survey ad projected at the rate of iflatio of 4.1% as measured by the Cosumer Price Idex for the 50-year period edig December 31, Agecy for Healthcare Research ad Quality,

7 SUCCESS SOLUTIONS Icreased Coverage With a Liked-Beefit Product THE CHALLENGE: A 63-year-old female is curretly payig $1, (aually) for a available fudig pool of $186,150 for log-term care coverage. She would like to receive greater coverage for a lower premium. THE ASH SOLUTION: BETTER COVERAGE A Ash Brokerage log-term care specialist proposed a liked-beefit pla through MoeyGuard to fill the cliet s eeds. By movig $100,000 ito a MoeyGuard product, she was able to more tha double her available pool of moey: $462,831. That amout ow provides $6,428 a moth plus $154,277 i life isurace beefits. LESS COST If the cliet had left the $100,000 i a coservative accout, it would have oly eared 1 percet or less, which equals approximately $1,000, or $650 after taxes. By givig up access to the taxable iterest o the $650 ad the burde of a aual premium, she also saved the amout of the premium, a additioal $1, KEY FACTS Elimiated the eed for a aual premium resultig i immediate savigs Icreased the pool of available log-term care fuds Added a sigificat amout of life isurace for heirs if she ever eeds log-term care Remaied i cotrol of her moey THE RESULT: The advisor was able to provide the cliet with a log-term care policy that will ot oly save the aual premium but has created more beefits, icludig the life isurace, which goes back to her estate i the evet she ever eeds the beefits. Most importatly, she remais i cotrol of the moey with a lifetime retur of premium optio. Ash Brokerage s expertise ad kowledge of log-term care isurace eabled the advisor to provide additioal protectio for the cliet, resultig i cosiderable savigs. Ash Brokerage is your resource for practice ehacemet solutios, eablig you to focus o your true stregth; maitaiig the relatioship with your cliets. DYK DID YOU KNOW... OVER 75% OF PURCHASERS OF LTC INSURANCE ARE BETWEEN THE AGES OF 45 AND 64, WITH THE AVERAGE AGE BEING LONG TERM CARE PRICE INDEX REPORT

8 SUCCESS SOLUTIONS Policy Approval with Medical Coditio KEY FACTS Goals: Youg, active female athlete desired LTC coverage Declied due to a existig medical coditio of rheumatoid arthritis Results: Policy approved due to egagemet with a experieced parter Secured LTC coverage with a highly rated isurace carrier THE CHALLENGE: The cliet a youg, active female triathlo ad Iro Ma participat was ultimately declied for log-term care due to rheumatoid arthritis with odule removal, had stiffess ad hip pai. Based o the facts the LTC specialist was able to get from the aget o the cliet s medical history we kew it would be a challegig case to get uderwritte; uderwritig LTC prospects with symptomatic rheumatoid arthritis is t easy. THE ASH SOLUTION: Upo otificatio of the declie, the Advisor elisted the help of the LTC case maager, LTC specialist ad LTC uderwritig cosultat. Takig a full-circle approach, the team partered with the Advisor to lear more about the cliet that was t foud i her medical records. From a medical uderwritig stadpoit, there was a cocer, but her lifestyle seemed to outweigh that challege. Her history was summarized to iclude the persoal iformatio we felt would help our case. I the ed, the appeal was usuccessful; however, we had a backup pla ad were able to fid aother carrier that would cosider reviewig a formal applicatio. The LTC specialist discussed pla desig ad premium with the Advisor while the carrier uderwriter was brought ito the loop, prior to applicatio submissio, to get her thoughts; she was able to tell us what would help our case shie. THE RESULT: We were fortuate to fid a alterate solutio for our cliet, but this is ot always the case. Log-term care uderwritig is uique ad the ed result is t always a positive oe. Parterig with Ash provides you a opportuity to take advatage of our team of experieced cliet advocates. Ad it provides us the opportuity to show you how passioate we are about what we do! Case approved! THE SUMMARY: Ash Brokerage s expertise ad kowledge of Log Term Care cocepts eabled the Advisor to provide a solutio to the cliet whe it was iitially believed that coverage was uattaiable. Ash Brokerage is your resource for practice ehacemet solutios, eablig you to focus o your true stregth: the relatioship with your cliets.

9 SUCCESS SOLUTIONS Addig Value With Log Term Care Ash Brokerage is a premier resource for advisors who are lookig for carig professioals who uderstad the impact of the products we represet. I a ecoomic eviromet that is costatly chagig, advisors must stay curret with chages. Our case studies are desiged to provide you with a advatage that will beefit you where it couts ad help you take your busiess to the ext level! THE CHALLENGE: Cliet: 60-year-old male physicia of high affluece with o medical coditios or o ay medicatios. He is presetly isured through multiple whole life policies with a total death beefit of $750,000, which is more death beefit tha he believes he eeds. However, he s aware 70 percet of the populatio over the age of 65 will eed assistace with log-term care eeds. With a liquid et worth i excess of $5 millio, he asked his advisor what his optios are: Potetial 1035 Exchage of $192,000 Death beefits of $350k, $250k ad $150k KEY FACTS Goals: Cliet wated protectio agaist a potetial LTC evet Result: Cliet did a 1035 exchage that effectively paid for his LTC Cliet reduced his death beefit THE ASH SOLUTION: Workig with the LTC team at Ash, his advisor was able to tur this dilemma ito a solutio that would protect him agaist ay potetial log-term care evet. The cliet chose to use part of his cash value to fud his LTC ad created a potetial wealth trasfer vehicle usig a life isurace policy with a LTC rider. Potetial DB: $500,000 LTC Beefit: $500,000 $10,000 idemity 50 moths Potetial Premium: $97,000 (1035 Exchage) $3,565 (aually util 110) $6,087 (ext 10 years) THE SUMMARY: I light of the curret ecoomic coditios ad kowig what ecoomic coditios lay ahead of us, ow is the ideal time to talk to your cliets about LTC isurace. If LTC isurace details seem time cosumig ad complicated, do t worry. We ll hadle all the techical details for you! We recommed suitable coverage, assist with the cliet preparatios ad respod to questios. We eve complete the applicatio paperwork ad serve as your cliet s advocate with carrier uderwriters.

10 SUCCESS SOLUTIONS The Value of Customizatio Vs. Price-Focused Solutios KEY FACTS The iitial goal was to determie which compay offered the best pla for a set price Oce eeds ad expectatios were determied, the goal became fidig the best pla to meet them Results: Cliet paid $1,000 a year more, over ad above the group price, for a customized pla that met his eeds ad expectatios Cliet purchased a shared pla with more flexible coverage, a joit waiver of premium, better iflatio optio ad icreased at-home coverage THE CHALLENGE: The cliet, a 60-year old male, was offered log-term care isurace (for him ad his wife, age 59) through his place of employmet. Tryig to determie if it was a good buy, he asked his advisor to shop the same coverage ad compare prices. Comparig apples to apples, it was decided the group offerig had the best price for the beefits offered. However, focusig o price aloe was ot the best way to determie if this was the right product for him ad his wife. THE ASH SOLUTION: The advisor cotacted a Ash Brokerage LTC specialist who egaged the cliet i a discussio about his eeds ad expectatios; the cliet quickly realized that, basig the purchase o price aloe was ot i his best iterests. Istead of tryig to promote the value of the compay ad the built-i beefits, Ash completely redesiged the pla; eve though it was $1,000 more expesive, it was ultimately a better fit. The ew pla icluded a joit waiver of premium, more flexible coverage, a better iflatio optio ad icreased his at-home coverage from 50 percet to 100 percet, a feature that was very importat to him ad his wife. The cliet was origially focused o ot payig more, but eded up payig a lot more oce he uderstood the value of gettig better coverage for his moey. THE RESULT: Educatig the cliet to look beyod price as the drivig factor, Ash Brokerage was able to desig a customized pla that ot oly met his ad his wife s eeds, but also their expectatios for log-term care, rather tha settlig for iadequate coverage purchased o price aloe. THE SUMMARY: Ash Brokerage s expertise ad kowledge of Log Term Care desig eabled the Advisor to provide a solutio to the cliet that resulted i what he really wated, i terms of care, ad was willig to pay for. Ash Brokerage is your resource for practice ehacemet solutios, eablig you to focus o your true stregth: the relatioship with your cliets.

11 THE LONG-TERM CARE CONTACTS WA OR NV CA ID UT MT WY CO ND SD NE KS MN IA MO WI IL MI IN KY OH WV NY PA MD VA ME VT NH MA CT RI NJ DE AZ NM OK AR TN NC SC MS AL GA TX LA FL Midwest Britti Reichhart Marketig Cosultat ext Tracey Suddarth Case Maager ext Northeast Chad Eyrich Marketig Cosultat, Team Lead ext Brittay Jorda Marketig Cosultat ext Agela Mooberry Case Maager ext Southeast Adam Bassett Marketig Cosultat ext Teresa Curreri Marketig Cosultat ext Mega Diehm Case Maager ext West Derek Combs Marketig Cosultat ext Nicole Keslo Marketig Cosultat ext Marie Neer New Busiess Admiistrator ext Maria Sarci Vice Presidet, LTC ext Brya Lagdo Marketig Cosultat ext Priscilla Wilso Marketig Associate ext Norvetta Cao Marketig Associate ext Collee Maloey New Busiess Director ext Holly Harter Cotractig ext Michelle Fairhurst LTC Uderwriter ext

12 Makig a differece. I busiess. I lives. (800) For Advisor Use Oly. Not for Public Dissemiatio. LTC-2036 Rev. 06/14