New LTC II with Shareability Option Competitive Advantages: How to best position LifeSecure's Individual LTCi Product

Transcription

1 New LTC II with Shareability Option Competitive Advantages: How to best position LifeSecure's Individual LTCi Product Robert S. Warchol Product and Competitive Intelligence Senior Analyst January 29, 2014 LifeSecure is a trademark of LifeSecure Insurance Company, Citation Drive, Suite 300, Brighton, MI Our long term care insurance product is individually underwritten by LifeSecure Insurance Company. Availability of benefits, amounts, options and discounts may vary by state. Only the insurance policy can give actual coverage amounts, terms, conditions, limitations and exclusions. Refer also to the Outline of Coverage. This is an LifeSecure Insurance Company - Brighton, MI For Agent Use Only. Not for Solicitation Purposes. LS-LTC W ST 01/14

2 About LifeSecure Founded in 2006 A wholly-owned subsidiary of a $13 billion health insurance corporation that serves over 5 million members A financially secure company offering long term care and other supplemental health insurance products A fast growing company focused on technology and innovative health-related solutions 2

3 Current A.M. Best Ratings As of January 1, 2014 LifeSecure* A- Genworth A John Hancock A+ MedAmerica B++ Mutual of Omaha A+ Transamerica A+ 3 *Currently, A.M. Best has not rated LifeSecure separately from its parent company, because A.M. Best requires additional years in operation to evaluate a company s performance. Our parent company is rated A- (excellent) by A.M. Best.

4 Announcing LifeSecure s LTC II with Shareability Option - 02/03/14!!! 4

5 5 At-a-Glance:

6 6 Riders/ Options:

7 Other Information: New Gender Pricing: 7 LTC II with Shareability

8 Competitive Individual LTCi Premium Landscape 8 How LTC II with Shareability Option fits

9 Competitive Individual LTCi Premium Landscape LifeSecure: LTC II with Shareability Option Genworth (GNW): Privileged Choice Flex 2 John Hancock (JH): Custom Care III with Benefit Builder MedAmerica (MedAm): FlexCare MedAmerica (MedAm): FlexCare w/cash Rider Mutual of Omaha (MOO): Custom Solution Transamerica (Trans): TransCare III 9 LifeSecure vs. The Top Carriers in the Industry!!!

10 5% Compound Very Competitive 140% 120% 100% 80% 60% 40% 20% 0% Percentage (%) to LifeSecure II Standard Premiums + GNW MedAm MedAm2 MOO JH Trans * * w/cash Rider Age 45 Age 50 Age 55 Age 60 Age 65 4-Year/ 2% Mo. Benefit Plan Comparison: 90 Calendar day Elimination Period (JH & Trans - service day. Trans includes 0-day HCEP) $4,500 Monthly Maximum Married Standard 5% Compound Total combined premiums (M&F) Generic state *MedAmerica s rates are unisex +Genworth s gender rates are for single applicants only 10 GNW & JH have recently filed a new product with higher pricing

11 3% Compound Very Competitive 140% 120% 100% 80% 60% 40% 20% 0% Percentage (%) to LifeSecure II Standard Premiums + GNW MedAm MedAm2 MOO JH Trans * * ** w/cash Rider Age 45 Age 50 Age 55 Age 60 Age 65 4-Year/ 2% Mo. Benefit Plan Comparison: 90 Calendar day Elimination Period (JH & Trans - service day. Trans includes 0-day HCEP) $4,500 Monthly Maximum 3% Compound Married Standard Total combined premiums (M&F) Generic state *MedAmerica s rates are unisex John Hancock s inflation is CPI +Genworth s gender rates are for single applicants only 11 GNW & JH have recently filed a new product with higher pricing

12 GFPO Very Competitive and we beat Genworth premiums, too 140% 120% 100% 80% 60% 40% 20% 0% Percentage (%) to LifeSecure II Standard Premiums + GNW MedAm MedAm2 MOO JH Trans * * w/cash Rider Age 45 Age 50 Age 55 Age 60 Age 65 4-Year/ 2% Mo. Benefit Plan Comparison: 90 Calendar day Elimination Period (JH & Trans - service day. Trans includes 0-day HCEP) $4,500 Monthly Maximum Married Standard GFPO Total combined premiums (M&F) Generic state *MedAmerica s rates are unisex +Genworth s gender rates are for single applicants only 12 GNW & JH have recently filed a new product with higher pricing

13 13 Key Benefits

14 Hi-Level Home Care Benefit Overview vs. the Top Carriers Carrier Allows Family Members as informal Home Care Providers (standard benefit) LifeSecure Yes (up to 50%) Genworth John Hancock MedAmerica MedAmerica w/cash rider No No No Yes (up to 100%) Mutual of Omaha Yes (up to 40%) Transamerica Yes (up to 33.3%) LifeSecure s Flexible Benefit: -Pays up to 50% of unused Monthly Benefits to cover care provided by immediate family members or other informal caregivers; training of informal caregivers; home modifications; home medical technology, or other care-related supplies or services 14 Family Members as Informal HC providers, even spouses

15 Flexible Benefit 15 LifeSecure Allows Informal and Licensed HHC Simultaneously in the Same Month!!!

16 Flexible Benefit vs. Cash Alternative Model Mutual of Omaha - $5,000 monthly benefit 100% formal home care benefit:$5,000 OR Cash benefit of $2,000/mo. (40%) NOT BOTH! Transamerica - $5,000 monthly benefit 100% formal home care benefit:$5,000 OR Cash benefit of $1,665/mo. (33.3%) NOT BOTH! 16 LifeSecure s Flexible Benefit Wins!!!

17 Shared Care Overview vs. The Top Carriers If one dies, surviving spouse/partner continues to pay the rider cost Unique feature Shared Care: 4-Yr. rider cost LifeSecure No Guaranteed Min Benefit (1-yr) Genworth No Guaranteed Min Benefit (50%) 13% 15% John Hancock No Add two year offer 11% MedAmerica Yes Additional benefit pool model 16% MedAmerica w/cash rider Yes Additional benefit pool model 16% Mutual of Omaha Yes Guaranteed Min Benefit (1-yr) 16% 17 Transamerica No Add two year offer 12%

18 Shared Care Very Competitive % 120% 100% 80% 60% 40% 20% 0% Percentage (%) to LifeSecure II Standard Premiums + GNW MedAm MedAm2 MOO JH Trans * * ** w/cash Rider Age 45 Age 50 Age 55 Age 60 Age 65 4-Year/ 2% Mo. Benefit Plan Comparison w/shared Care: 90 Calendar day Elimination Period (JH & Trans - service day. Trans includes 0-day HCEP) $4,500 Monthly Maximum 3% Compound Married Standard Total combined premiums (M&F) Generic state *MedAmerica s rates are unisex and Shared Care is an additional pool. John Hancock s inflation is CPI +Genworth s gender rates are for single applicants only GNW & JH have recently filed a new product with higher pricing

19 19 Sales Quotes

20 Are You Selling Drills or Holes?? People don't want to buy a ¼ inch drill, they want a ¼ hole Theodore Levitt, American economist and professor at Harvard Business School 20

21 Don t Sell Life Insurance Sell What Life Insurance Does!!! (Ben Feldman, one of the most prolific salespeople in world history) 21

22 22 Questions?