MedAmerica Simplicity ii Presentation REV 4-13.ppt · The Simplicity Improvements Simplicity...
Transcript of MedAmerica Simplicity ii Presentation REV 4-13.ppt · The Simplicity Improvements Simplicity...
Introducing
T i Si l S llTwice as Simple to Sell
S2-6046 For Agent Use Only
AgendaMedAmerica Company Review
Product ConceptProduct Detailsoduc e a s
The Simplicity AdvantageMulti Life
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 +50 Years Combined Actuarial Experience
• Millimam & Robertson Consulting from Inception
Company Review
Consistent Ratings
• 10 consecutive years MedAmerica yhas an A.M. Best’s rating of A-“Excellent” and an A- “Strong” grating by S&P
Company Review
I ti I d t L d
1996 i S C
Innovative Industry Leader
• 1996 First to Introduce Shared Care
• 2004 First to Respond to the NEWCConsumer:– True Cash
– Simplified Contract Language
– Pre-paid Benefits
R l t P d t N d i th F t– Relevant Product Now and in the Future
– 100% WorldWide Coverage
“We’re in this business to take care of people, not to hide behind the
fine print.”p
Chris Perna, president
Company Summary
Leading the EvolutionLeading the Evolution
• Commitment to LTC Market• Commitment to LTC Market
• Time-Tested Fiscal Strength
• 65 Yrs Experience & Strength of Parent Corporation
• Actuarial Management Continuity
• Global Reinsurer PartnerGlobal Reinsurer Partner
The Simplicity Concept
T t B b BTarget: Baby Boomers
h C k• The New LTC Market• 79 Million, Educated, Planning for Retirement, , g• 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”
B t O ti f th F t• Best Option for the Future• Pre-Paid Monthly Cash Benefit • No Proof of Service or Receipts!
Si l A k F Ch k!• Simply Ask For a Check!
The Simplicity Concept
Why Cash?Why Cash?
• “All Wheel Drive” for the changing terrain of LTC – Guaranteed Benefits
• Covers New Treatments, Technology for Prolonging IndependenceProlonging Independence
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• Custom Care Two 66
The Improved Simplicity
INTRODUCING
Quality & Value
Why Simplicityii
• True Consumer Value• Enables a Simpler Sales Process• Bring back “Lost” Producers• Bring back Lost Producers• Attract “New” Producers/Entities
Sell Value
Why Simplicityii
True Consumer Value• Cash = Maximum Flexibility• 100% Benefits Paid – Guaranteed!!100% Benefits Paid Guaranteed!!• CareDirections Family Advice & Advocacy
PProgramsm
Here Comes Simplicityii
• 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• Where:AZ, KY, LA, ME, NE, NH, NM, NY,OH, PA• Simplicityi cease sale 60 days after state rolls out
Si li i iiSimplicityii
The New Simplicity
Cash Benefit Account
• Cash Benefit Account (face amount).$100,000, $200,000, $300,000,
$500 000 & $1 million$500,000 & $1 million.
• Easy to Explain
• Builds with Inflation Option
• No Durations, No Complicated Formula!
What the Customer Wants
Monthly Cash BenefitTh h ill b id i i l• The amount that will be paid in a single month.
• Pre-Paid no proof required• Pre-Paid, no proof required
• Specific Monthly Cash Benefit options for each Cash Benefit Account chosen at the each Cash Benefit Account chosen at thetime of application.
• Use for HHC or FC• “Rightsized” based on industry experience
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 whateasy to make a decision and know what coverage I’ll have! My premium
represents d l ”good value.”
The Simplicity Improvements
Simplicity Simplicityii
Duration
Lif ti2, 3, 4, 5, 7, L
Cash Benefit Account$100K, 200K, 300K, 500K, 1M
Simplicity Simplicity
Payment Lifetime10 Pay
Pd up @ 65Reduced @ 65
Lifetime10 Pay
Pd up @ 65Reduced @ 65Reduced @ 70
Pd up @ 65
HHC Options 60%, 80%, 100% Home Health Care Benefit plus optional enhanced Facility Care
Inflation None5% Si l
None5% Simple
MMB $12K Community or Facility
$12K Monthly Cash Benefit (HC/FC)$16K Enhanced Facility Benefit
5% Simple5% Compound - 2X Max5% Compound - No Max
5% Simple5% Compound - 2X Max5% Compound - No Max3% Compound - No Max
The Simplicity Improvements
Simplicity Simplicityii
Value Added Programs~ Care Scout~ Script Save
Not Included Included Script Save
Exclusions
Subrogation Clause
None Act of war
Not Included Included
Simplified Application
Not Available Available to age
71 for $100K and $200K plans
APS & FTF RequiredDiscounts
R t Cl
> age 75 > age 72Cap No Cap
3 2Rate Classes
Employer Program
3 2
Spouses are fully underwritten
Actively at work Spouses have “Simplified Underwriting”
Turn The Sale Around
Enhanced Facility Benefit
• Option increases Monthly Cash Benefit f F ilit Cfor Facility Care
• 33% increase in benefit for 10% i ipremium increase
• Available on all Cash Benefit Accounts
NEW Underwriting Enhancement
New Rate Classes
• Preferred – 10% Discount
• Standard
• Previous Class Three Conditions• Previous Class Three Conditions are Now Considered Under Standard ClassStandard Class
The Simplicity Improvements (NO CAP)
DiscountsCare Partner Discount:
• 20% Savings if One Purchases20% Savings if One Purchases
• 40% Savings if Both Purchase and are AcceptedAccepted
PLUS
• 10% Preferred Health Discount
PLUS
• 10% Affiliation or Employer Program Discount
The Simplicity Improvements (New Option)
Inflation OptionsInflation Options
• None• None
• 5% Simple
• 5% Compound 2X Max
• 5% Compound No Max
• 3% Compound No Max(Partnership Ready)( p y)
NEW SOFTWARE TOOL
NEW!MedAmerica’s National CostMedAmerica s National Cost
Survey on Home Care
Provides The Agent with the Basis for “Right-Sized” Benefit
Design
Sell to the Buyer’s Desire
M dA i ’MedAmerica’s National HHC Cost Data
• Conducted by CareScout exclusively y yfor MedAmerica
• A Major Software EnhancementA Major Software Enhancement
• Turn the Sale Around and approach clients with what they desireclients with what they desire –REMAIN at HOME
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 Sacross 79 geographic regions of the U.S.• Data collected on:
– Hourly, private pay rates charged by licensed agencies y, p p y g y gfor home health aide. Data on homemaker services was also collected (only private pay rates were used, no Medicare or Medicaid rates were used.)ed ca e o ed ca d ates we e used.)
• Minimum, maximum and average hourly rates studied
Providing the Agent with New Tools
“Cost of Care” Key FindingsCost 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 h k” ($22 $44K l)home care per week” ($22-$44K annual)
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
• Agent is not put in the Position to Explain• Agent is not put in the Position to Explain
Why Expenses are not Covered
The Simplicity Advantage
Individualized Care S i d S tServices and Support
“Care choice ” not “managed care”• Care choice, not managed care
• CareDirections Family Advice &
Advocacy ProgramSM – CareScout,
ScriptSave
• Personal Care Advisors -
Independent care plan and supportIndependent care plan and support
The Simplicity Advantage
How to Design Simplicity ii
For Maximum Value
Simplicity ii Value Design # 1Client Type Married Couple age 60, good health, concerned about care theyyp p g g y
may need in the future, however cost is a factor. May retire outsidethe US.
Typical Agent $100 per day, 7 yr. duration, Compound Inflation Protection, 90yp gRequest
$ p y, y , p ,day elimination, Standard rate class, life pay, Monthly Indemnityand calendar day riders added
New $300 000 Initial Cash Benefit Amount (CBA)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 ReimbursementValue of Benefitat age 60
$300,000 $255,000at age 60At Age 75 $600,000 $531,440
Premium $1921.00 each $2174.00 eachPremium $1921.00 each $2174.00 each(Value)
Simplicity ii Value Design # 2
C i A 0 C l i d i h 401k iClient Type Age 50 Couple interested in ways they can protect 401k savingsshould one get sick before their retirement plan is complete.
Typical Agent $150 per day 100% Home Care 5 yr duration 5% CompoundTypical AgentRequest
$150 per day, 100% Home Care, 5 yr duration, 5% CompoundInflation Protection, 90 day elimination, Standard rate class, lifepay
New $500,000 Initial Cash Benefit Amount (CBA)Simplicity iiTranslation
$4500 Monthly Benefit Amount (MBA), 5% Inflation 2x Max,100% Home Care
Simplicity ii Design Traditional ReimbursementSimplicity ii Design Traditional ReimbursementValue of Benefitat age 50
$500,000 $270,000
At Age 65 $1 000 000 $561 120At Age 65 $1,000,000 $561,120
At Age 77 $1,000,000 1,007,760
Premium $1316.00 $1597.00Premium $1316.00 $1597.00CC2
Simplicity ii Value Design # 3
C i M Willi d hi if b h 55 h l iClient 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 possiblebe 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 d li i i S d d l lif90 day elimination, Standard rate class, life pay
NewSimplicity ii
$1,000,000 Initial Cash Benefit Amount (CBA)$6000 Monthly Benefit Amount (MBA) Compound 5% 2x Max
Translation Inflation, Shared Care Rider
Simplicity ii Design Traditional ReimbursementValue 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 justyp y g g g y j
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
New $200 000 Initial Cash Benefit Amount (CBA)NewSimplicity iiTranslation
$200,000 Initial Cash Benefit Amount (CBA)$3000 Monthly Benefit Amount (MBA) = (66 Months) Compound3% Inflation, Speed Application
Simplicity ii Design Traditional ReimbursementValue of Benefit
t 45$200,000 $182,500
at age 45At Age 79 $546,381 $500,000Premium withoutshared care
$734.00 each $756.00 eachshared carePremium withshared care rider
$876.00 each $832.00 each
CC2
Simplicity ii VALUE Good Things to Know
Home Care Only Vs. Comprehensive Age 55 = 17% Savingsg g Age 65 = 18% Savings
Enhanced Facility OptionEnhanced Facility Option
10 % Increase in premium
Shared Care Rider$200,000 $300,000 $500,000 1million, , ,
+21 % +17 % +7 % +4 %
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 6355 1.00 .52 .58 .63
60 1.00 .62 .62 .70
65 1 00 73 67 7665 1.00 .73 .67 .76
70 1.00 .83 .72 .82
Join the National Growth in EP Sales
Employer Program
• Simplified Underwriting: During open enrollment
• Actively-at-work employeesActively at work employees• Actively-at-work spouses (30+hours/week)• Age 71 or younger• Age 71 or younger• Website enrollment – a MedAmerica 1st
Join the National Growth in EP Sales
Employer ProgramEmployer Program
• Special Care Partner rates, plus 10% discountMi i ti i ti 10 EE’• Minimum participation: 10 EE’s pass 4 questions
• Best World-wide Coverage (100%)
Why Sell #1 LTC Product
Twice as Simple to Sell• Everybody Understands & Needs CASH!
• New Face Amount ConceptNew 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
Tools to Sell #1 LTC Product
Simplicity ii Launch Kit
T i Si l S llTwice as Simple to Sell