How to Increase Your Average Case and Separate Yourself From The Competition

How to Increase Your Average Case and Separate

Yourself From The Competition

Using Limited Pay and Return of Premium Policies.

Resource Brokerage LTC, LLC

The greater value you bring to the market place:

• The larger your income will be.• The more referable you will become.

• The more referable you become the more successful you will be.

Limited Pay and Return of Premium

• Offer your customers unique value to help you stand out in the marketplace.

• Leads to greater refer ability and more money in your pocket.


… are methods of purchasing coverage not reasons for buying coverage.


• If you and your customer have not already come to a fundamental agreement as to the reasons to buy coverage the following material is not relevant.

These concepts are most explicable when:

A high level of discretionary income exists from:

1. Personal Cash flow2. Business Cash flow3. Cash flow from Asset Base


C-Corp or self-employed due to tax deducibility.

The greater the net worth the better. “Mr. and Mrs. $25 million couple, I have a unique LTC program created specifically for the very wealthy the higher your net worth the more you will want to embrace this program.


The income is significantly higher now than in the future, i.e.: high paid executives and professionals.

Due to high income taxes (because of high income and net worth) additional income is of less value than tax deductible and tax free benefits.

(For Return of Premium) a strong desire exists to pass wealth on.

The Client Conversation

• “Mr. and Mrs. Client, I want to take a moment to put things in the proper prospective.”


“There are only 2 types of people in the world when it come to understanding money.”


“Those who understand it and those who don’t.”


“There are 2 facts about these groups. 1. The group that does not understand

money and never gets financially ahead.”


2. “The group that understands money and has money gets to take advantage of opportunities that the first group does not.”


“The second group is often self employed and realizing that ownership in a business is the ticket to certain benefits provided on a tax deductible and tax free basis.”

Characteristics of Owning vs. Leasing

• Historically people who consider themselves financially astute have believed it is better to own something than to lease it.


1. Higher net cost for the short term but lower net cost for the long term.


2. At a predetermined point and time in the future owning no longer consumes current cash flow leasing almost always requires current cash flow.


3. Owning insulates you from future volatility in the marketplace. Leasing does not.


4. At a given point of time in the future owning often means a return on your money. Leasing does not.

Case Study

Resource Brokerage LTC, LLC • C-Corp• Married• Aged 50• Preferred (obviously)


• 90-day elimination period• $150 per day• 5% compound inflation rider• Lifetime benefits


Lifetime pay (Difference) 10-Pay

Annual Premiums

$2126 ($3997) $6123

10 yrTotal

$21,260 ($39,970) $61,230

Net after tax cost $12, 756 ($23,982) $36,738


Would it be worth $200/month for the next 10 years to be done paying for your coverage at 60 years of age?

Lifetime pay (Difference) 10-Pay

Annual Premiums $2126 ($3997) $6123

10 yrTotal

$21,260 ($39,970) $61,230

Net after tax cost $12, 756 ($23,982) $36,738

Why paid up coverage is the better idea.

• Policy is paid up in your working years when your income is greater.

• Because the C-Corp paid the premiums 100% of the cost was tax-deductible.

• Once we reach the tenth year we are insulated from future rate increases.

NO CASH FLOW= NO SALE

Let’s get analytical

• What if we invest $3673 per year (net after tax premium) for 10 years-assuming 6% net earnings?

Value of investment

Annual LTC benefit @ 5% compound

Approximate length of claim to recapture value of investment

10 years $53, 737 $89,182 8 months

20 years $94,438 $148,636 8 months

30 years $169,124 $243,764 8 months

More Analytics

• 10 year cost assuming 6% net after tax earnings = $53,737.

• At year 10, one claim of approximately 8 months returns all your premium plus 6% net earnings.

• At year 20, one claim of approximately 8 months returns all your premium plus 6% net earnings.

• At year 30, claim of approximately 8 months returns all your premium plus 6% net earnings.


• Do you realize at age 80 if you each require 4 months of assistance not only have I paid for your care but above and beyond that you have earned 6% on the premiums you gave me. Do you think it is possible by the time you are 80 you might need 4 months of assistance?

That’s not good enough let me improve my offer.

Instead of just paying your claim I would like to return all of the premiums you paid to your heirs at your death.

Return of Premium

10-Pay (Difference) 10-Pay with refund

Before tax $6123 ($3767) $9890

10 year total $61,230 ($37,670) $98,900

After tax cost $36,738 ($22,602) $59,340

10-Pay (Difference) 10-Pay with refund

Before tax $6123 ($3767) $9890

10 year total $61,230 ($37,670) $98,900

After tax cost $36,738 ($22,602) $59,340

•Net cost of $36,738 at death no refund

•Net cost of $59,340 at death refund of $98,900 regardless of claims

•Is it worth $22,602 to pass on $98,900?

Let’s find out.

Future Value of $22,602 (@6%net)

Year 10 *$40,476 **$98,900

Year 20 *$72,487 **$98,900

Year 30 *$137,603 **$98,900

*projected

** Guaranteed

You are going to save and invest regardless of a refund on Long-Term Care coverage however, this is an additional financial tool that will guarantee the passing of wealth regardless of market volatility, personal money mismanagement, or other conditions beyond our control.

Approximately $6000 per year for 10 years will guarantee this couple’s Long-Term Care coverage for the rest of their life and return almost $100,000.00 at their death to their loved ones or some other cause they believe in such as a charity, alumni organization, or other worthy cause.

Documents

How to Increase Your Average Case and Separate Yourself From The Competition