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Twice as Simple to Sell
S2-6046 For Agent Use Only
Introducing
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”
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!
The Simplicity Concept
Why Cash?
• “All Wheel Drive” for the changing terrain of LTC – Guaranteed Benefits
• Covers New Treatments, Technology for Prolonging Independence
The Simplicity Concept
Highest Rated Product 91
• Prudential Cash 78
• Allianz Generation Protector 65
• MetLife Ideal 2 73
• John Hancock Leading Edge 59
• Custom Care Two 66
Simplicity Stands Tall among the Competition
INTRODUCING
The Improved Simplicity
Why Simplicityii
• True Consumer Value
• Enables a Simpler Sales Process
• Bring back “Lost” Producers
• Attract “New” Producers/Entities
Quality & Value
Why Simplicityii
True Consumer Value
• Cash = Maximum Flexibility
• 100% Benefits Paid – Guaranteed!!
• CareDirections Family Advice & Advocacy Programsm
Sell Value
Here Comes Simplicityii
• When: First Introduction Date : April 2, 2007
• AK, AL, CO, CT, IA, ID, MI, ND, OK, SC, SD, WY and DC/DC TRUST NJ
• Second Introduction Date: May 1, 2007
• AZ, GA, IN, KY, LA, ME, NE, NH, NM, NY,OH, PA
• Third Introduction Date: June 1, 2007
• AR, DE, IL, KS, NV, VA, WI, WV
• Simplicity cease sale 60 days after Simplicityii roll-out
Cash Benefit Account
• Cash Benefit Account (face amount).$100,000, $200,000, $300,000,
$500,000 & $1 million.
• Easy to Explain
• Builds with Inflation Option
• No Durations, No Complicated Formula!
The New Simplicity
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
What the Customer Wants
The Simplicity Monthly CASH Benefit Options
“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.”
Duration
Payment Lifetime10 Pay
Pd up @ 65Reduced @ 65Reduced @ 70
Lifetime10 Pay
Pd up @ 65
HHC Options 60%, 80%, 100% Home Health Care Benefit plus optional enhanced Facility Care
Inflation None5% Simple
5% Compound - 2X Max5% Compound - No Max
None5% Simple
5% Compound - 2X Max5% Compound - No Max3% Compound - No Max
MMB $12K Community or Facility
$12K Monthly Cash Benefit (HC/FC) $16K Enhanced Facility Benefit
2, 3, 4, 5, 7, LCash Benefit Account
$100K, 200K, 300K, 500K, 1M
Simplicity Simplicityii
The Simplicity Improvements
Value Added Programs~ Care Scout~ Script Save
Not Included
Simplicity Simplicityii
Exclusions
Subrogation Clause
Simplified Application
APS & FTF RequiredDiscounts
Rate Classes
Employer Program
Included
None Act of war
Not Included Included
Not Available Available to age 71 for $100K and
$200K plans
> age 75 > age 72
Cap No Cap
3 2
Spouses are fully underwritten
Actively at work Spouses have “Simplified Underwriting”
The Simplicity Improvements
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
Turn The Sale Around
New Rate Classes
• Preferred – 10% Discount
• Standard
• Previous Class Three Conditions are Now Considered Under Standard Class
NEW Underwriting Enhancement
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
The Simplicity Improvements (NO CAP)
* Varies by State
Inflation Options
• None
• 5% Simple
• 5% Compound 2X Max
• 5% Compound No Max
• 3% Compound No Max (Partnership Ready)
The Simplicity Improvements (New Option)
NEW!MedAmerica’s National Cost
Survey on Home Care
Provides The Agent with the Basis for “Right-Sized” Benefit Design
NEW SOFTWARE TOOL
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
Sell to the Buyer’s Desire
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 or Medicaid rates were used.)
• Minimum, maximum and average hourly rates studied
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 annual)
Providing the Agent with New Tools
• 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
• Agent is not put in the Position to Explain Why Expenses are not Covered
The Simplicity Advantage
Individualized Care Services and Support
• “Care choice,” not “managed care”• CareDirections Family Advice & Advocacy
ProgramSM – CareScout, ScriptSave• Personal Care Advisors - Independent care plan
and support
The Simplicity Advantage
How to Design Simplicity ii
The Simplicity Advantage
For Maximum Value
Simplicity ii Value Design # 1Client Type Married Couple age 60, good health, concerned about care they
may need in the future, however cost is a factor. May retire outsidethe US.
Typical AgentRequest
$100 per day, 7 yr. duration, Compound Inflation Protection, 90day elimination, Standard rate class, life pay, Monthly Indemnityand calendar day riders added
NewSimplicity iiTranslation
$300,000 Initial Cash Benefit Amount (CBA)$3000 Monthly Benefit Amount (MBA), Compound 5% 2X maxinflation, Shared Care Rider
Simplicity ii Design Traditional Reimbursement
Value of Benefitat age 60
$300,000 $255,000
At Age 75 $600,000 $531,440
Premium $1921.00 each $2174.00 each
(Value)
Simplicity ii Value Design # 2
Client Type Age 50 Couple interested in ways they can protect 401k savingsshould one get sick before their retirement plan is complete.
Typical AgentRequest
$150 per day, 100% Home Care, 5 yr duration, 5% CompoundInflation Protection, 90 day elimination, Standard rate class, lifepay
NewSimplicity iiTranslation
$500,000 Initial Cash Benefit Amount (CBA)$4500 Monthly Benefit Amount (MBA), 5% Inflation 2x Max,100% Home Care
Simplicity ii Design Traditional Reimbursement
Value of Benefitat age 50
$500,000 $270,000
At Age 65 $1,000,000 $561,120
At Age 77 $1,000,000 1,007,760
Premium $1316.00 $1597.00
CC2
* Note: With 3% Inflation No Max premium = $1636.00
Simplicity ii Value Design # 3
Client Type Mr. Williams and his wife both age 55 have personal experienceswith parents needing long term care.Family has a history ofAlzheimers. They both worry about getting sick and would want tobe in their own home as long as possible.
Typical AgentRequest
$200 per day/ $6000/month, lifetime duration,100% Home Care,5% compound inflation, Monthly Option and Calendar day riders,90 day elimination, Standard rate class, life pay
NewSimplicity iiTranslation
$1,000,000 Initial Cash Benefit Amount (CBA)$6000 Monthly Benefit Amount (MBA) Compound 5% 2x MaxInflation, Shared Care Rider
Simplicity ii Design Traditional Reimbursement
Value of Benefitat age 55
1 Million Lifetime
W/ Shared Care RiderPremium $2835 $3906
CC2
Simplicity ii Value Design # 4Client 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 askedtheir agent for affordable solution to their concerns.
Typical AgentRequest
$100 per day,5 years, Compound 5% & 3% Inflation Protection,90 day elimination, Standard rate class, life pay
NewSimplicity iiTranslation
$200,000 Initial Cash Benefit Amount (CBA)$3000 Monthly Benefit Amount (MBA) = (66 Months) Compound3% Inflation, Speed Application
Simplicity ii Design Traditional Reimbursement
Value of Benefitat age 45
$200,000 $182,500
At Age 79 $546,381 $500,000Premium withoutshared care
$734.00 each $756.00 each
Premium withshared care rider
$876.00 each $832.00 each
CC2
Simplicity ii VALUE
Home Care Only Vs. Comprehensive Age 55 = 17% Savings
Age 65 = 18% Savings
Enhanced Facility Option
10 % Increase in premium
Shared Care Rider$200,000 $300,000 $500,000 1million
+21 % +17 % +7 % +4 %
Good Things to Know
Simplicity ii VALUE Good Things to Know
Inflation ProtectionAges 5% Compound
No Max5% 2 X Max 3% No Max 5% Simple
50 1.00 .44 .54 .63
55 1.00 .52 .58 .63
60 1.00 .62 .62 .70
65 1.00 .73 .67 .76
70 1.00 .83 .72 .82
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
Join the National Growth in EP Sales
Employer Program
• Special Care Partner rates, plus 10% discount• Minimum participation: 10 EE’s pass
4 questions• Best World-wide Coverage (100%)
Join the National Growth in EP Sales
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
Why Sell #1 LTC Product
Simplicity ii Launch Kit
Tools to Sell #1 LTC Product
Twice as Simple to Sell