JUNE In-Force Rate Action Training Addendum LONG TERM CARE INSURANCE. Policy Series: LTC97, VIP1, VIP2 & LifeStage Advantage (LSA)

Transcription

1 In-Force Rate Action Training Addendum JUNE 2014 LONG TERM CARE INSURANCE Policy Series: LTC97, VIP1, VIP2 & LifeStage Advantage (LSA) Metropolitan Life Insurance Company (MetLife)

2 Table of Contents Proactively Connect with Your Individual Clients 3 Step 1: Prepare for the Initial Call Key Message Points Step 2: Contact Your Clients Sample Telephone Conversations Step 3: Meet with Your Clients Strategies: Reinforce the Original Buying Decision Address Affordability with Benefit Reduction Options Sample Letter to Policyholders from Producers 9 Proactively Connect with Your Multi-Life Program Sponsors 10 Step 1: Prepare for the Initial Call Step 2: Contact Your Multi-Life Program Sponsors Sample Telephone Conversations Step 3: Meet with Your Multi-Life Program Sponsors If the Program is Employer-Paid If the Program is Voluntary Key Message Points During the Meeting Sample Letter to Multi-Life Program Sponsors from Producers 15 TRAINING ADDENDUM 2

3 Proactively Connect with Your Individual Clients This In-Force Rate Action Training Addendum supplements MetLife s Long Term Care Insurance In-Force Rate Action Producer Guide & Multi-Life Addendum. This first section of the Training Addendum will provide you with information to help prepare, contact and meet with your individual clients. We have developed a series of tools to assist you in discussing the rate increase with your individual clients. TOOLS PROVIDED Key Message Points List of your impacted Clients Sample Conversations Sample Letters Strategies for Client Situations Hypothetical Scenarios and Premium Illustrations Supporting Information Cost of Care Studies Customer Service Team Contact Numbers Refer to the In-Force Rate Action Producer Guide & Multi-Life Addendum for detailed information about the rate increase, such as a launch timeline, the amount of the requested increase, sample communications and the support available for both you and your clients. TRAINING ADDENDUM 3

4 Proactively Connect with Your Individual Clients Step 1: PREPARE for the Initial Call Here are suggestions for preparing to contact your clients: 1) Review the list of impacted policyholders provided to you with the Producer State Notification Letter. 2) Review how the rate increase will impact each of your clients, and the suggested options available to each of them. We know that talking with clients about an increase in premium might be a difficult conversation. However, knowing that you are there to assist them may alleviate some of their concerns. Key Message Points We understand that each of your clients may react differently to an increase in policy premiums. Some may accept the rate increase as is. Others may look to you because they are uncertain as to how to proceed, are upset, or may question the value of their long term care insurance (LTCI) policy. Throughout this process, it is important to reinforce the following messages with your clients: The original decision to purchase LTCI was not made lightly. Remind your clients of the reasons they decided to initially purchase long term care insurance. Most likely, those reasons are still valid and their coverage will continue to help them to accomplish those goals. The current economic environment makes it abundantly clear that many people will be unable to self-insure in the event they need long term care. The value of many retirement portfolios and homes have declined. Financially, the purchase of LTCI made sense when they purchased it and it makes sense to maintain it now. The LTCI industry has faced challenges related to the pricing of LTCI policies. This is not unique to MetLife. MetLife is financially strong, as indicated by our ratings. MetLife is committed to meeting our policyholders needs. TRAINING ADDENDUM 4

5 Proactively Connect with Your Individual Clients Step 2: CONTACT Your Clients The purpose of your call is to schedule a time to meet with your client. This meeting presents an opportunity to reinforce your relationship as their advisor, explain the different options available to them, and help them with other planning needs. The following sample conversation can serve as a reference for your first call: Hello, this is [rep name] [with/representing MetLife/Agency Name]. Recently, you received a letter from MetLife about your long term care insurance policy. Do you recall receiving this letter? If client says yes : When you call, some of your clients may be upset about the premium increase. First, listen to your client s concerns and determine the specific reasons they are upset. Once your client has had an opportunity to express their concerns, you will be able to reinforce their original reasons for purchasing LTCI and then help them develop a plan that best meets their needs. Great, I m glad I called. I m sure you have a few questions about your policy and this communication. I would like to set up a time to review all of the options available to you. I can schedule some time on [Tuesday or Thursday], which is better for you? If client says no : I m glad I called. You ll be receiving a letter detailing some important changes to your long term care insurance policy. I d like to schedule some time to review these changes with you. I can schedule some time on [Tuesday or Thursday], which is better for you? If a client does not respond to phone calls, send a letter indicating that you have tried to reach them and ask them to contact you if they have any questions. A sample letter is included in this addendum on page 9. TRAINING ADDENDUM 5

6 Proactively Connect with Your Individual Clients Step 3: MEET With Your Clients Here are suggestions regarding meeting with your clients: 1) For each of your clients, review the information provided in the policyholder list and have it available at the meeting. 2) Research the cost of care in your client s area (or where they plan to retire). Helpful resources include: The MetLife Mature Market Institute s Cost of Care Studies, which are updated each year with the costs for home care, assisted living care, nursing home care, and adult day care in each region. A sample list of geographic areas is included on page 15 of the In-Force Rate Action Producer Guide. You can find additional information at the MetLife Mature Market Institute website: 3) Some letters will have options for your clients to decrease their coverage. In addition to these options, you may want to have additional information available regarding different premium scenarios: Customer service teams are available to provide you with premium rates for different coverage changes (they can provide premium rates over the phone, but printed illustrations are not available). We have customer service teams available to assist producers, program sponsors and policyholders with any questions they may have throughout the implementation of the in-force rate increase. These teams can be reached between the hours of 8:30 a.m. and 6:30 p.m., Eastern Time, Monday through Friday. The appropriate number is listed on the letter your client receives, however it is a good idea for you to have it available if you need to call during your client meeting. LTC97 policies: (800) All other policies: (888) TRAINING ADDENDUM 6

7 Proactively Connect with Your Individual Clients Strategies to consider when helping clients understand the best course of action for their situation: 1. Reinforce the Original Buying Decision If your client questions whether their policy is worth keeping with the increased premium, it is important to work through their concerns and reinforce the value of their LTCI policy and the stability of MetLife. Revisit the reasons why the policy was initially purchased. Was there a prior long term care event that motivated them? What was it? How would needing care impact their children or other family members? Share the Summary of Long Term Care Costs on page 15 of the Producer Guide to help your clients understand the cost of care in their area. You can find additional cost of care information at the MetLife Mature Market Institute website: If a client cancels their policy now, they would only be eligible for limited paid-up benefits under the Limited Coverage Upon Lapse Endorsement (LCUL) or another nonforfeiture option,if applicable. In addition, if your client has a limited pay option, you should address the length of time they have paid premium and the time period remaining. Example 1 A couple is thinking about canceling their policies. They know the importance of needing coverage, but money is tight and they have other financial demands. Their policies: Policy Type: Value Daily Benefit Amount: $150 Benefit Duration: 3 years Elimination Period: 45 days Inflation Feature: 5% Simple Riders: Shared Care Current Premium* for Husband: $1,473.22/year Increased Premium* for Husband: $2,327.69/year Current Premium* for Wife: $1,320.24/year Increased Premium* for Wife: $2,085.98/year Current Average Cost of Care in NV: $6,205.00/month Potential Cost of Care in Area in 20 Years: $10,880.51/month (based on 3% annual inflation) * Includes spousal discount of 20% After reviewing their area s cost of care and the option of self-insuring, they decide to keep their policies. Example above assumes an 58% rate increase. TRAINING ADDENDUM 7

8 Proactively Connect with Your Individual Clients 2. Address Affordability with Benefit Reduction Options Some clients may have concerns about affording the increase in premium. Policyholders may be presented with options to reduce their benefit levels and thus lower the premium. Reducing either the Daily/Monthly Benefit Amount or the Benefit Duration are two options that would allow a policyholder to minimize the impact of the rate increase. However, there are several things to consider: What is the cost of care in your client s area, and has it changed? Often the original Daily/Monthly Benefit Amount and Benefit Duration were chosen to meet those specific needs. Ask your client if their situation has changed, such as: Are there adult children or other informal caregivers in close proximity? Has your client s financial situation changed drastically? Would paying the increased premium cause a financial strain on your client or their family? Has your client provided care to a family member? What about other coverage change options? The policyholder list you will receive and the letter that will be sent to your client may illustrate the new premium if they choose to reduce either their Daily/ Monthly Benefit Amount or Benefit Duration, if these options are available. However, if you or your client feel that another option best suits their needs, our Customer Service Teams can assist with additional scenarios such as reducing Benefit Increase Options, cancelling a rider, or increasing the Elimination Period, if applicable. Customer Service Teams: LTC97 policies: (800) All other policies: (888) Example 2 A client with a current Daily Benefit Amount of $300 may consider dropping it to $190, thus reducing the new premium level. Current Daily Benefit Amount: $300 Current Premium: $2,694.29/ year Increased Premium: $4,256.98/year New Daily Benefit Amount: $190 New Premium: $2,696.09/year Example above assumes an 58% rate increase. TRAINING ADDENDUM 8

9 Sample Letter to Policyholders from Producers [Date] [Mr./Ms.] [First Name] [Last Name] [Address] [Address2] [City, State Zip] Re: Letter Sent From MetLife Regarding Your Long Term Care Insurance Policy Dear [Mr./Ms.] [First Name] [Last Name]: Recently, you received a letter from MetLife regarding a change in your long term care insurance policy. I tried to contact you by phone, but have not been successful. I would like to set up a time to meet with you to discuss the information in the letter and answer any questions you may have. [Please call me at (xxx) xxx-xxxx / Please contact me at address] to arrange a time to discuss this important issue. I look forward to speaking with you soon. Sincerely, [Sales Representative s/insurance Agent s Name] [Company-Approved Title] TRAINING ADDENDUM 9

10 Proactively Connect with Your Multi-Life Program Sponsors This section of the Training Addendum will provide you with information to help prepare, contact and meet with your multi-life program sponsors. We have developed a series of tools to assist you in discussing the rate increase with multi-life program sponsors. TOOLS PROVIDED List of your impacted Policyholders Sample Conversations Sample Letters Hypothetical Scenarios and Premium Illustrations Key Message Points During the Meeting Customer Service Team Contact Numbers Refer to the In-Force Rate Action Producer Guide & Multi-Life Addendum for detailed information about the rate increase, such as a launch timeline, the amount of the increase, sample communications and the support available for both you and your program sponsors. TRAINING ADDENDUM 10

11 Proactively Connect with Your Multi-Life Program Sponsors Follow these three steps when communicating with your multi-life program sponsors and policyholders: If you have sold impacted policies through MetLife s Multi-Life LTCI Program, it is important that you contact the program sponsor in addition to the individual policyholders. Program sponsors will be receiving letters explaining the premium increase, prior to the policyholder mailing, and they will most likely have questions. Reaching out to them will also help reinforce your relationship as their advisor and may open the door to other business planning opportunities. Please review the In-Force Rate Action Producer Guide & Multi-Life Addendum for a timeline and sample letters that will be provided to your program sponsors and policyholders. Step 1: PREPARE for the Initial Call You should review how the rate increase will impact each of your multi-life cases, based on whether each is an employer-paid or voluntary program, and in which states policyholders were issued coverage. TRAINING ADDENDUM 11

12 Proactively Connect with Your Multi-Life Program Sponsors Step 2: CONTACT Your Multi-Life Program Sponsors The following sample conversation can serve as a reference during your first call: Hello, this is [rep name] [with/representing MetLife/Agency Name]. Recently, you received a letter from MetLife about coverage purchased through your multi-life long term care insurance program. Do you recall receiving this letter? If the program sponsor says yes : Great, I m glad I called. I m sure you have questions about the information in the letter and how it impacts your company. [If the program sponsor is paying premium: Because you are paying [all / a portion] of the premium for the coverage, there will be some decisions you will need to make.] I d like to set up time to go over the options available to you. I can schedule time on [Tuesday or Thursday], which is better for you? If the program sponsor says no : I m glad I called. You ll be receiving a letter detailing some important changes to coverage purchased through your multi-life long term care insurance program. [If the program sponsor is paying premium: Because you are paying [all / a portion] of the premium for the coverage, there will be some decisions you will need to make.] I d like to schedule time to go over those changes with you. I can schedule time on [Tuesday or Thursday], which is better for you? If a program sponsor does not respond to phone calls, send a letter indicating that you tried to reach them and ask them to contact you if they have any questions. A sample letter is included at the end of this Addendum on page 15. TRAINING ADDENDUM 12

13 Proactively Connect with Your Multi-Life Program Sponsors Step 3: MEET With a Program Sponsor If the program is employer-paid: The program sponsor will have decisions to make: Pay the increase in premium. If this is their choice, then the policyholders within the group will not need to do anything. Turn the responsibility of the additional premium over to the policyholders. If this is their choice, then the program sponsor will be responsible for obtaining the additional premium from the policyholder and making the payment to MetLife. The Multi-Life Addendum section of the Producer Guide provides you with more information. If the program is voluntary: The rate increase does not directly impact the program sponsor. However, you should still inform the program sponsor of your plans to communicate with the policyholders. It is also important to discuss how they wish to communicate their decision to the policyholders. Program sponsors will be provided with sample letters that can be used for this purpose. Copies of these letters are also included on pages 26 and 27 of the Producer Guide for your reference. Example XYZ Company currently pays 50% of the LTCI premium for its 5 employees. The company has decided to pay the VIP1 58% increase in premium, which will impact all 5 employees. Employee # Current Annual Premium 58% Increase New Annual Premium Employee Pays XYZ Company Pays 1 $ $ $1, $ $ $1, $ $1, $ $1, $ $ $1, $ $1, $ $ $1, $ $ $ $ $1, $ $ Total $4, $2, $7, $2, $4, Example above is illustrative only. Not to be used for actual rate comparisons. TRAINING ADDENDUM 13

14 Proactively Connect with Your Multi-Life Program Sponsors Key Message Points During the Meeting: When meeting with program sponsors, focus on the key message points suggested for an individual policyholder, as well as these additional points: MetLife is committed to meeting policyholder needs. MetLife is committed to high levels of customer service. Our customer service teams are dedicated to answering calls about the premium increase. Policyholders who purchased a policy through the Multi-Life LTCI Program will be contacted directly by MetLife. It is important that you and your program sponsor agree upon the way you will be contacting policyholders within the multi-life case. While you can follow the steps previously outlined to contact individual clients, in some instances, it may be appropriate to suggest meeting with policyholders at the work site, to help illustrate the program sponsor s continued support of the program. We have customer service teams available to assist producers, program sponsors and policyholders with any questions they may have throughout the implementation of the in-force rate increase. These teams can be reached between the hours of 8:30 a.m. and 6:30 p.m., Eastern Time, Monday through Friday. LTC97 policies: (800) All other policies: (888) TRAINING ADDENDUM 14

15 Sample Letter to Multi-Life Program Sponsors from Producers [Date] [Mr./Ms.] [First Name] [Last Name] [Address] [Address2] [City, State Zip] Re: Letter Sent From MetLife Regarding Your Long Term Care Insurance Program Dear [Mr./Ms.] [First Name] [Last Name]: Recently, you received a letter from MetLife regarding a change in coverage purchased through your long term care insurance program. I have tried to contact you by phone, but have not been successful. I would like to set up a time to meet with you to discuss the information in the letter and answer any questions you may have. [Please call me at (xxx) xxx-xxxx / Please contact me at address] to arrange a time to discuss this important issue. I look forward to speaking with you soon. Sincerely, [Sales Representative s/insurance Agent s Name] [Company-Approved Title] TRAINING ADDENDUM 15

16 Not A Deposit or Other Obligation Of Bank Not FDIC Insured Not Insured By Any Federal Government Agency Not Issued, Guaranteed or Underwritten By Bank or FDIC Not A Condition to the Provision or Term of Any Banking Service or Activity Policy is an Obligation of the Issuing Insurance Company Metropolitan Life Insurance Company New York, NY L (0515)[All States][DC,PR,VI] 2014 METLIFE, INC. PEANUTS 2014 Peanuts Worldwide