ICB Presents: Win at the LTCi Game in Hosted by: Your ICB Marketing Team

Transcription

1 ICB Presents: Win at the LTCi Game in 2015 Hosted by: Your ICB Marketing Team

2 Average LTCi Policy in NJ 55 year old couple $4,500 monthly benefit 3-year benefit period 3% compound inflation $ monthly premium $ per applicant

3 70% of people over age 65 will need some form of long-term care

4 Height and Weight

5 ICB Prequalification Form

6 Genworth In the LTC industry since 1974 (almost 40 years!) More than 1,000,000 policyholders Over $10 billion paid in claims Offers four class ratings

7 Genworth: Now Services Caregiver Support Services Provided by CareScout, these services can help policyholders identify care resources that may be needed for aging parents or other family members Live+Well In collaboration with the Mayo Clinic, a wellness program available to policyholders and their spouses/partners Provides online access to health-related tools, services and information. Also offers Consumers healthy living options

8 Genworth: Shared Coverage Allows the client and their spouse/partner to combine their individual benefits to create a shared pool of money If Person A used all of their shared pool of money, Person B is guaranteed to have access to at least 50% of his/her original pool of money The rider includes joint waiver If one person passes away, all unused benefits will be given to the survivor

9 Genworth: Shared Case Study Policyholders John and Sheila have the Shared Benefit with their policies They each have a pool of $300,000 in coverage. Their shared Benefit Value would then be $600,000. In the scenario that 1- John uses all of his coverage and some of Sheila s: John uses $550,000 for covered LTC expenses. Sheila would have $50,000 left in her pool. With the Shared Benefit, Sheila would have access to $150,000 for an LTC event

10 Genworth : Case Study Cont d Scenario #2: 2- John uses all of his benefits and all of Sheila s benefits: If John used the entire shared pool of $600,000, Sheila is still guaranteed access to $150,000. In this scenario the couple could potentially receive $750,000 for covered LTC expenses!

11 Mutual of Omaha Selling LTC since 1987 Mutual Company Answers to policyholders, not shareholders AM Best rated A+

12 Secure Solutions Product Simplistic, easy to understand LTC benefits Better option for agents who are interested in selling a policy with simple design and traditional benefits Policy limits based on benefit multiplier 30% Cash Alternative benefit built in (up to $2,400)

13 Custom Solutions Product More choices Stronger ability to customize policies Better option for agents who are trying to fit benefits into a specific premium goal Policy limits based on a total pool of money 40% Cash Alternative benefit built in (up to $2,400)

14 Custom Solutions (cont.) Having more customizable benefits allow for agents and clients to control premium costs Inflation options make up considerable premium costs 1% - 5% Compound Inflation (every.25% increments) Limited Inflation Durations available Lifetime, 20-year, 15-year, 10-year

15 Case Study #1 Adam (age 52) and Mary (age 49) are interested in Long Term Care. They are paying for a child to attend college, so they have limited funds to pay for a policy right now. Clients can purchase a lower level inflation which automatically comes with a buy-up for after their child graduates college.

16 Case Study #2 Adam and Mary are now 56 and 53 They originally balked on coverage, but now want to look again They are looking for a favorable premium, but also good coverage

17 Transamerica Why Consider this carrier? Over 25 years of Experience Excellent financial ratings* Over $3 Billion in claims paid thus far Competitive product *A+ AM Best, AA- Fitch, A1Moody s, AA- S&P and 93 Comdex Score

18 Transamerica: Product Highlights Built-in Cash Alternative Built-in 0-day EP for HHC Built-in double coverage for accidents to age 67 Built-in Return of Premium to age 67 Built-In Rate Guarantee for 3 years

19 Transamerica: Case Study Scott and Becky want to obtain LTCI coverage while they re still healthy because they have both had first-hand experience with extended care for family members. They are concerned with premium costs though because they have a son starting college and need to focus on tuition right now. What should they do? Consider Transamerica s Benefit Increase Options (BIOs)

20 Transamerica: Option 1 They can apply with Trans today, while they know they can get through underwriting and can choose the Deferred BIO. This allows them to lock in coverage, but wait to add the inflation of their choice onto the policy in policy anniversary years 1, 3 or 5. In year 5, their son will be out of college and they will be able to add the 3% Compound inflation they want onto their policy, with no additional underwriting AND the premium will be based on their original age.

21 Transamerica: Option 2 They can apply with Trans today, while they know they can get through underwriting and can choose the Step-Rated BIO. This allows them to lock in coverage at a lower-starting premium and each year their premium and inflation can step-up at their anniversary. Since Scott expects his income to increase each year, he believes it will allow them to purchase inflation in the future, but this year they need to focus on that tuition, so they choose the Step-Rated option.

22 Transamerica: Option 3 They can apply with Trans today, while they know they can get through underwriting and can choose the Tailored BIO. Scott and Becky want to purchase inflation today that will help keep their premiums lower than traditional inflation and this one will age with the clients. Since they are both under age 61, they will begin by receiving 5% Compound BIO on their benefits. When each turns age 61 the inflation will then adjust to a 3% Compound BIO. Finally, as each of them reach age 75, the inflation will then end. Scott begins with $3,000 monthly benefit at age 52, so age 61 he will have $4,653, and then by age 75 it will be valued at $7,038. Compared to a level 3% Compound BIO which would offer $5,920 at age 75 and would take until almost age 81 to reach that $7,038.

23 ICB LTC Alternatives Give the unsure the options to insure! Defeat the use it or lose it objection Defeat the Increasing premium objection Provide benefits to your clients and their families no matter the outcome of a LTC event and always have something to sell!

24 Alternative Diagram

25 ICB Menu Traditional LTC Best insurance leverage for the dollar Single premium Hybrids- best liquidity options combined with LTC leverage beyond just the death benefit Annual Pay hybrid- Best cost effective combination of LIFE with LTC to compare with traditional LTC plans Hybrid Annuity- Most lenient Underwriting with LTC benefits and liquidity options Life with Chronic illness riders- best for those who do not qualify for LTC but can still qualify for a life insurance policy Index Annuity- For those who cannot qualify for insurance

26 Sales Examples You are sitting at the kitchen table for the third straight year with your client showing LTC and the client again mentions their concerns about the use it or lose it or premium increase objections, what do you do this time?

27 First Scenario You go into your bag of alternatives options ICB has provided you with and show them a guaranteed premium, guaranteed benefit life/ltc combination product and end their objections.

28 Second Scenario Clients family member has an LTC event and now client wants to apply. After beginning the application you learn she/he is now uninsurable for LTC. What do you do? Go into your bag and pull out your alternative plan process that ICB gave you and still be able to provide them with protection via one of the alternative plans that do not underwrite for LTC.

29 Conclusion With our Alternative planning process you should always be able to make a recommendation to your clients and be able to customize it to their preferences.

30 Questions?