Introducing. S For Agent Use Only

Transcription

1 Introducing Twice as Simple to Sell S For Agent Use Only

2 Agenda MedAmerica Company Review Product Concept Product Details The Simplicity Advantage Multi Life

3 Company Review 20 Years Insurer of LTC Not a Financial Services Supermarket Integral business of The Lifetime Healthcare Company - $5 billion health insurer w/ over 65 Years Experience No History of Rate Increases 50 Years Combined Actuarial Experience + Millimam & Robertson Consulting from Inception

4 Company Review Consistent Ratings 10 consecutive years MedAmerica has an A.M. Best s rating of A- Excellent and an A- Strong rating by S&P

5 Company Review Innovative Industry Leader 1996 First to Introduce Shared Care 2004 First to Respond to the NEW Consumer: True Cash Simplified Contract Language Pre-paid Benefits Relevant Product Now and in the Future 100% WorldWide Coverage

6 We re in this business to take care of people, not to hide behind the fine print. Chris Perna, president

7 Company Summary Leading the Evolution Commitment to LTC Market Time-Tested Fiscal Strength 65 Yrs Experience & Strength of Parent Corporation Actuarial Management Continuity Global Reinsurer Partner

8 The Simplicity Concept Target: Baby Boomers The New LTC Market 79 Million, Educated, Planning for Retirement Desire to be Independent Cash for Lifestyle Assurance should Life Change on a Dime

9 The Simplicity Concept Why Cash? Provides Maximum Flexibility for Funding Care Care Choice not Managed Care Best Option for the Future Pre-Paid Monthly Cash Benefit No Proof of Service or Receipts! Simply Ask For a Check!

10 The Simplicity Concept Why Cash? All Wheel Drive for the changing terrain of LTC Guaranteed Benefits Covers New Treatments, Technology for Prolonging Independence

11 Simplicity Stands Tall among the Competition Highest Rated Product 91 Prudential Cash 78 Allianz Generation Protector 65 MetLife Ideal 2 73 John Hancock Leading Edge 59 Custom Care Two 66

12 The Improved Simplicity INTRODUCING

13 Quality & Value Why Simplicity ii True Consumer Value Enables a Simpler Sales Process Bring back Lost Producers Attract New Producers/Entities

14 Sell Value Why Simplicity ii True Consumer Value Cash = Maximum Flexibility 100% Benefits Paid Guaranteed!! CareDirections Family Advice & Advocacy Program sm

15 Here Comes Simplicity ii When: First Introduction Date : April 2, 2007 Where: AK, AL, CO, CT, IA, ID, MI, ND, OK, SC, SD, WY and DC/DC TRUST NJ Second Introduction Date: May 1, 2007 Where:AZ, KY, LA, ME, NE, NH, NM, NY,OH, PA Simplicity i cease sale 60 days after state rolls out Simplicity i ii

16 The New Simplicity Cash Benefit Account Cash Benefit Account (face amount). $100,000, $200,000, $300,000, $500, & $1 million. Easy to Explain Builds with Inflation Option No Durations, No Complicated Formula!

17 What the Customer Wants Monthly Cash Benefit The amount that will be paid in a single month. Pre-Paid, no proof required Specific Monthly Cash Benefit options for each Cash Benefit Account chosen at the time of application. Use for HHC or FC Rightsized based on industry experience

18 The Simplicity Monthly CASH Benefit Options

19 Buying LTC insurance isn t as complicated and mind-boggling as I thought! It s so easy to make a decision and know what coverage I ll have! My premium represents good value.

20 The Simplicity Improvements Duration Payment Simplicity 2, 3, 4, 5, 7, L Lifetime 10 Pay Pd HHC Options 60%, 80%, 100% MMB $12K Community or Facility None Inflation 5% Simple 5% Compound - 2X Max 5% Compound - No Max Simplicity ii Cash Benefit Account $100K, 200K, 300K, 500K, 1M Lifetime 10 Pay Pd 65 Home Health Care Benefit plus optional enhanced Facility Care $12K Monthly Cash Benefit (HC/FC) $16K Enhanced Facility Benefit None 5% Simple 5% Compound - 2X Max 5% Compound - No Max 3% Compound - No Max

21 The Simplicity Improvements Value Added Programs ~ Care Scout ~ Script Save Exclusions Subrogation Clause Simplified Application Simplicity Not Included None Not Included Not Available Simplicity ii Included Act of war Included Available to age 71 for $100K and $200K plans APS & FTF Required Discounts Rate Classes Employer Program > age 75 > age 72 Cap No Cap 3 2 Spouses are fully underwritten Actively at work Spouses have Simplified Underwriting

22 Turn The Sale Around Enhanced Facility Benefit Option increases Monthly Cash Benefit for Facility Care 33% increase in benefit for 10% premium increase Available on all Cash Benefit Accounts

23 NEW Underwriting Enhancement New Rate Classes Preferred 10% Discount Standard Previous Class Three Conditions are Now Considered Under Standard Class

24 The Simplicity Improvements (NO CAP) Discounts Care Partner Discount: 20% Savings if One Purchases 40% Savings if Both Purchase and are Accepted PLUS 10% Preferred Health Discount PLUS 10% Affiliation or Employer Program Discount

25 The Simplicity Improvements (New Option) Inflation Options None 5% Simple 5% Compound 2X Max 5% Compound No Max 3% Compound No Max (Partnership Ready)

26 NEW SOFTWARE TOOL NEW! MedAmerica s National Cost Survey on Home Care Provides The Agent with the Basis for Right-Sized Benefit Design

27 Sell to the Buyer s Desire MedAmerica s National HHC Cost Data Conducted by CareScout exclusively for MedAmerica A Major Software Enhancement Turn the Sale Around and approach clients with what they desire REMAIN at HOME

28 Providing the Agent with New Tools Cost of Care Study 1,800 home health care providers were surveyed across 79 geographic regions of the U.S. Data collected on: Hourly, private pay rates charged by licensed agencies for home health aide. Data on homemaker services was also collected (only private pay rates were used, no Medicare e or Medicaid d rates were e used.) Minimum, maximum and average hourly rates studied

29 Providing the Agent with New Tools Cost of Care Key Findings Findings consistent with other studies including LifePlans analysis of formal and informal care giving in the community. National average for a Home Health Aide was $19.07 (50% above or below) People using non-medical home care services use between 22 & 44 hours of home care per week ($22-$44K $44K annual)

30 The Simplicity Advantage Guaranteed Cash - All Wheel Drive for the changing terrain of LTC service delivery. Pay for Emerging Technology Any Service Covered even if provided by by Spouse or Non-Licensed Provider 100% Worldwide Benefits AgentisnotputinthePositiontoExplain Agent is not put in the Position to Explain Why Expenses are not Covered

31 The Simplicity Advantage Individualized Care Services and Support Care choice, not managed care CareDirections Family Advice & Advocacy Program SM CareScout, ScriptSave Personal Care Advisors - Independent care plan and support

32 The Simplicity Advantage How to Design Simplicity ii For Maximum Value

33 Simplicity ii Value Design # 1 Client Type Married Couple age 60, good health, concerned about care they may need in the future, however cost is a factor. May retire outside the US. Typical Agent $100 per day, 7 yr. duration, Compound Inflation Protection, 90 Request day elimination, Standard rate class, life pay, Monthly Indemnity and calendar day riders added New Simplicity ii Translation $300, Initial Cash Benefit Amount (CBA) $3000 Monthly Benefit Amount (MBA), Compound 5% 2X max inflation, Shared Care Rider Simplicity ii Design Traditional Reimbursement Value of Benefit $300,000 $255,000 at age 60 At Age 75 $600,000 $531,440 Premium $ each $ each (Value)

34 Simplicity ii Value Design # 2 Ci Client Type Age 50 Couple interested din ways they can protect 401k savings should one get sick before their retirement plan is complete. Typical Agent $150 per day, 100% Home Care, 5 yr duration, 5% Compound Request Inflation Protection, 90 day elimination, Standard rate class, life pay New $500,000 Initial Cash Benefit Amount (CBA) Simplicity ii $4500 Monthly Benefit Amount (MBA), 5% Inflation 2x Max, Translation 100% Home Care Simplicity ii Design Traditional Reimbursement Value of Benefit $500,000 $270,000 at age 50 At Age 65 $1,000,000 $561, At Age 77 $1,000,000 1,007,760 Premium $ $ CC2

35 Simplicity ii Value Design # 3 Ci Client Type Mr. Williams and his wife both age 55 have personal experiences with parents needing long term care.family has a history of Alzheimers. They both worry about getting sick and would want to be in their own home as long as possible. Typical Agent Request New Simplicity ii Translation $200 per day/ $6000/month, lifetime duration,100% Home Care, 5% compound inflation, Monthly Option and Calendar day riders, 90 day elimination, i i Standard d rate class, life pay $1,000,000 Initial Cash Benefit Amount (CBA) $6000 Monthly Benefit Amount (MBA) Compound 5% 2x Max Inflation, Shared Care Rider Value of Benefit at age 55 Simplicity ii Design Traditional Reimbursement 1 Million Lifetime W/ Shared Care Rider Premium $2835 $3906 CC2

36 Simplicity ii Value Design # 4 Client Type Bob and Sue are young working adults age 45. They just discovered a gap in their medical coverage offered at work. Realizing that their health can change on a dime, they have asked their agent for affordable solution to their concerns. Typical Agent Request New Simplicity ii Translation $100 per day,5 years, Compound 5% & 3% Inflation Protection, 90 day elimination, Standard rate class, life pay $200, Initial Cash Benefit Amount (CBA) $3000 Monthly Benefit Amount (MBA) = (66 Months) Compound 3% Inflation, Speed Application Simplicity ii Design Traditional Reimbursement Value of Benefit $200,000 $182,500 at age 45 At Age 79 $546,381 $500,000 Premium without $ each $ each shared care Premium with shared care rider $ each $ each CC2

37 Simplicity ii VALUE Good Things to Know Home Care Only Vs. Comprehensive Age 55 Age 65 = 17% Savings = 18% Savings Enhanced Facility Option 10 % Increase in premium Shared Care Rider $200,000 $300,000 $500,000 1million +21 % +17 % +7 % +4 %

38 Simplicity ii VALUE Good Things to Know Ages 5% Compound No Max Inflation Protection 5% 2 X Max 3% No Max 5% Simple

39 Join the National Growth in EP Sales Employer Program Simplified Underwriting: During open enrollment Actively-at-work employees Actively-at-work spouses (30+hours/week) Age 71 or younger Website enrollment a MedAmerica 1st

40 Join the National Growth in EP Sales Employer Program Special Care Partner rates, plus 10% discount Minimum i participation: i 10 EE s pass 4 questions Best World-wide Coverage (100%)

41 Why Sell #1 LTC Product Twice as Simple to Sell Everybody Understands & Needs CASH! New Face Amount Concept Targeted to Baby Boomers - Relevant Today MedAmerica s National HHC Cost Data NEW! Speed App 4 Questions! NEW! Partnership Ready NEW! Robust Multi-Life Program - Enchanced Employer Program

42 Tools to Sell #1 LTC Product Simplicity ii Launch Kit

43 Twice as Simple to Sell