Form #S502-305 For Agent Use Only
Simplicity Agent Training
Form #S502-305 For Agent Use Only
Question: Are you selling the new kind of LTCi or the old
kind?
Form #S502-305 For Agent Use Only
•Count on MedAmerica.•Highest rated coverage (91 by SellingLTC.com)•Rightsizing coverage to fit client needs.•Get a Lock on Affiliations and small businesses!
Here are 4 powerful points to use:
Introducing…
from MedAmericaYou’ll be a STAR with your customers when you deliverthe Highest Quality Coverage at Affordable Premium Ratesfrom a company committed exclusively to LTC since 1987
Form #S502-305 For Agent Use Only
Count on MedAmerica
• Strong ratings – rated A- by Standard & Poor’s since 1997 & A.M. Best since 1994.
• 18 years dedicated exclusively to LTC.• Owned by $4.5B not-for-profit health care
company putting policyholders ahead of shareholders.
• No rate increases – EVER!• Over $100M in claims paid.
Form #S502-305 For Agent Use Only
In-force Policies
8,77811,560
30,057
37,46841,250 42,586
53,235
61,038
85,36090,476
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 1/1/2005
Th
ousa
nds
Form #S502-305 For Agent Use Only
Earned Premium
$10,527$14,920
$26,847
$33,761
$44,028$47,840
$53,715
$65,635
$86,455
$99,639
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000$70,000
$80,000
$90,000
$100,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Th
ousa
nds
Form #S502-305 For Agent Use Only
Profit(before FAS 133)
$342 $535
$2,031$2,406
$3,103
$3,725
$4,538
$5,336
$7,032
$8,046
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Th
ousa
nds
Form #S502-305 For Agent Use Only
$15 $20$42
$56
$107
$145$174
$214
$286
$358
$511
$595
$0
$100
$200
$300
$400
$500
$600
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Growth in Assets (000’s)
Th
ousa
nds
Form #S502-305 For Agent Use Only
10%14%
20%26%
32%40%
47%55%
5% 7%11%
19%23%
30% 34%43%
0%
10%
20%
30%
40%
50%
60%
0 1 2 3 4 5 6 7 8+
Actual
Actual vs. Expected Claims
% o
f P
rem
ium
Expected
Duration by Year
Form #S502-305 For Agent Use Only
Key Product Features
Highest Rated Coverage
Form #S502-305 For Agent Use Only
Key Features
• Simplicity is designed to be tax qualified. 2 out of 6 ADL’s and cognitive benefit triggers apply.
• Cash Benefit pre-paid each month.– No submission of third-party bills for
reimbursement required. No restrictions or limits apply.
• One policy with riders to enhance or simplify coverage (facility or community only)
• No limitations or exclusions.
Form #S502-305 For Agent Use Only
What if There Was a Policy…?
• Without – defined lists of providers• Without – defined lists of types of
service• Without – restrictions OR limitation on
what, when, where or who uses or provides the service
And what if it was paid in CA$H – in advance?
Form #S502-305 For Agent Use Only
Coverage Made Easy
OTHER PRODUCTS “talk about confusing…”
• Providers as listed Any Service in the contract and approved
by the insurer. Anywhere• Type of services listed in the contract and approved by the From Anyone insurer
Form #S502-305 For Agent Use Only
Product Overview
Form #S502-305 For Agent Use Only
Core Benefits
For illustrative purposes only, availability of benefits, options, riders and discounts may vary by state.
Age Limitations: 18-85 (lifetime benefits not available under age 50)
Monthly Benefits: $2,100 and up in $300 increments. $12,000 cap for 7 year duration and under. $9,000 cap for unlimited duration.
Calendar Day EP: 30, 60, 90 or 180
Lifetime Max: 24, 36, 48, 60, 84 or Unlimited Months
Worldwide Coverage: No limitations or benefit reductions.
Form #S502-305 For Agent Use Only
Riders
Nonforfeiture Riders:Shortened Benefit PeriodReturn of PremiumFull Return of Premium
Restoration of Benefits:Joint BenefitsShared Care RiderShared WaiverSurvivor Benefit
Flexible Payment Options:Paid in Full at Age 65Reduced Premium (Age 65 or Age 70)10 Years Paid in Full
Inflation Protection:5% Simple No Max5% Compound 2X Max5% Compound No MaxNone
Form #S502-305 For Agent Use Only
Shared Care Rider -
•Allows spouse with identical benefits to tap into benefits of other spouse
•Upon death, remaining benefits are passed to surviving spouse with no additional premium cost.
•Complements “rightsizing” strategy with shorter benefit durations, i.e. 5/5 = 8/2
Form #S502-305 For Agent Use Only
Rightsizing Coverage
Rightsized coverage. It’s the RIGHT THING TO DO.
Form #S502-305 For Agent Use Only
How much HHC coverage is enough?
Industry Facts: 85% of LTCi policyholders received
reimbursement of $75 or less Average Monthly Claim: $1,527-
$1,661 HHC claimants receive on average
36 hours of formal HHC per week. Family members provide 23 hours of care (unpaid per week).
Form #S502-305 For Agent Use Only
Turning the Sale Around
Consider asking your client to base their monthly cash benefit on how much they will need to live in the community in their own home.
That’s called the “community benefit”.
If at some point, they need care in a facility, their monthly cash payment will increase to a “facility benefit”.
Form #S502-305 For Agent Use Only
Turning the Sale Around
Facility Care
Last Care Option
Usage flat over last 13 years
First Choice of ClientUsage increased by 400% over
last 13 years
Home Care
Form #S502-305 For Agent Use Only
Turning the Sale Around
Home Care
First Choice of ClientCover Based on Need
Cash paid regardless of Services
Last Care Option Choice for Client
Cash paid at 120% of Home Care
Facility Care
Form #S502-305 For Agent Use Only
What’s the Right Size for Duration?
Industry Facts: Only 15% of claims exceed 24 months.
Of those, only 7% exceed 36 months. 97% of claims are less than 60 months
in duration
Form #S502-305 For Agent Use Only
RIGHT SIZE with Simplicity
• Rightsized Durations: 3, 4, or 5 years.• Statistics say that your customer is better off with
a higher monthly benefit for a shorter duration than a lower monthly benefit for a lifetime duration.
• Compared to lifetime benefits:5 year = 38% lower premium4 year = 46% lower premium3 year = 55% lower premium
Form #S502-305 For Agent Use Only
RIGHT SIZE with Simplicity
Inflation OptionsYour customer needs inflation protection, and we offer 5% simple and 5% compound (2x max) as affordable options to the traditional 5% compound.
Compared to 5% Compound
5% simple = 41% lower premium
5% compound (2 x max) = 54% lower premium
Form #S502-305 For Agent Use Only
Rate ComparisonAge 50 Couple
(Old) Traditional Reimbursement
• Unlimited
• Compound/no max
• Home Care (monthly reimbursement max $4,800)
Annual Premium
($2,722 x 2 = $5,444)
(Facility benefit $4,800)
(New) Simplicity Cash
• 5 year (60 months)
• Compound 2x
• Home Care (monthly pre-paid benefit) $4,800
• Shared Care
Annual Premium
($1,043 x 2 = $2,086)
Premium Savings = -$3,358
(Facility benefit $6,000)
Form #S502-305 For Agent Use Only
Get a lock on Affiliations & Small Businesses
Multi-life Programs:• Affiliation: 10% discount• Employer: 10% discount and
simplified underwriting for employees when 10 or more qualify for coverage.
Form #S502-305 For Agent Use Only
Simplicity is Unique
• Simple, flexible, tax qualified plan with competitive premiums
• Prepaid Cash Benefits
• Worldwide Coverage
• No limitations or exclusions
• Multi-life programs
• Pay by credit card
Form #S502-305 For Agent Use Only
Simplicity Target Markets
• Ages 40-65• Healthy couples (married or care partners)
40% discount• Affiliations – up to 53% discount• Employer Programs – 4 question
Simplified Underwriting• Executive Carve Outs• 10 pay plans – C Corporations
Form #S502-305 For Agent Use Only
Closing
• Great Company
• Great Product
• Why wouldn’t you sell Simplicity from MedAmerica?