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Barry Fisher & Susan BlaisBarry J. Fisher/Paradigm Insurance Marketing
5425 Farralone Avenue Suite 101 – Woodland Hills, California(818) 883-8700www.bjfim.com
What’s new at Paradigm Insurance Marketing◦ Who and what is Paradigm Insurance Marketing 2012◦ How does this helps you?
Report on NAHU Cap Conference and where PPACA stands today◦ How does long-term care insurance fit into the picture?
California long-term care insurance market◦ Current reality and future
Genworth + BJFIM/Paradigm @www.bjfim.com =◦ Life insurance made easy Genworth Colony Term/UL sales take-off with Life Jacket & LQR
Principal disability income, simplified issue, and tele-app makes selling non-can DI easier than ever
Comments, quotes, quips & queries
And it should be the law:
If you use the word
"paradigm" without
knowing what the
dictionary says it means,
you go to jail. No
exceptions.David JonesRealtime Worlds
Creator “Grand Theft Auto”Creator “Crackdown” Xbox 360
Scottish Video Game Entrepreneur
par'a-digm or par"a-dig-mat'ic◦ a pattern, example, or model◦ exemplary
Webster's Deluxe Unabridged Dictionary 2nd Ed.
Related words◦ archetype, beau ideal, chart,
criterion, exemplar, ideal,
mirror, model, original, pattern,
prototype, sample, standard
Established in 1996◦ Barry J. Fisher Insurance Marketing, Inc.
Offices in Woodland Hills & Paso Robles◦ Barry J. Fisher, LTCP – Life, health and LTCi since 1976◦ Susan M. Blais, LTCP joins BJFIM/Paradigm 2006 Health insurance industry sales/marketing/operations executive 1982 -2005
◦ American Capital Security Corp -- Encino Paul Kaplan, CLU – Life and disability income since 1964
J.H. Tackett/Paradigm Insurance Marketing – 2010 – Hanford, CA◦ Jeffrey Tackett
IPS/Paradigm Insurance Marketing – 2011 – Simi Valley, CA◦ Michael Sandfrey, CLU, LUTCF – Disability
Republic Marketing Group, Inc. (2003) – New Braunfels, TX◦ America’s Long-Term Care Insurance Experts Barry Fisher – stockholder & principal
Big enough to access to all individual life, LTCi and DI markets at top levels with highly specialized expertise in vital product areas
Paradigm offices work with a broad range of brokers & advisors◦ Traditional life, health, property casualty and financial advisors
Excel at the integration of “non-core” products to any agent’s insurance offering
Paradigm agencies work independently and jointly to provide brokers valuable information and actionable sales ideas that work◦ Product, marketing, sales, continuing education
Behind the scenes and direct sales support◦ Product information, proposal prep, web-based and in-person presentations
Impaired risk underwriting expertise
Backroom support, ongoing case status updates
Family owned & locally operated businesses◦ Generally our working relationship with agents is principal to principal
Agents always have top level access to agency principals Highly trained and motivated marketing and support staff
My first time attendance in a number of years◦ Currently serve on Legislative Council Chairman of the LTC Advisory Committee
NAHU is primary agent association advocating on importance of our role in the health insurance process◦ Developed significant access in Congress Bi-Partisan support and sponsorship in House & Senate for
legislation to remove agent compensation from MLR◦ Ongoing meetings with Health & Human Services on issues
ranging from Exchanges to overall implementation
CLASS expected to be voted out of existence by House this week◦ Big concern is where do we go from here? LTCi is A & H product that structurally behaves like life insurance
We need to insulate LTCi from the vagaries of PPACA regulation
Political atmosphere in D.C. is toxic◦ Expect more gridlock – which may be a good thing◦ A “PPACA” by any other name! Dems call it ACA GOP calls it PPACA
Never call it Obamacare!
Debates as to what SCOTUS decision will mean
Members of NAHU (CAHU) – feel good about decision◦ If you’re not a member join and sell medical insurance you
need to consider membership PPACA impacts us all!
Contribute to CAHU-PAC & HUPAC◦ Access to legislators of all stripes is essential
I’ve been saying for more than a year that there’s no time like the present to discuss long-term care planning with your clients◦ The products are not getting cheaper◦ Your clients are not getting any younger or healthier
I’ve been telegraphing for almost a year that a significant “rate refresh” and potential product changes was on the way from Prudential
2011 was a great year for us (and many of you!) but it isn’t clear that you aggressively took this message out to your clients
THE PARTY IS NOW ALMOST OVER!
Prudential’s temporary suspension of LTC3 sales, IN CALIFORNIA ONLY, does not indicate a problem with long-term care insurance in the big picture◦ Nor does it necessarily point to a lack of resolve on the part of
Prudential to be in this market
This decision by Prudential illustrates a DOI that does not value a variety of properly designed and priced LTCi products for consumers to choose from◦ Every other state has approved Prudential’s rate/product
refresh requests in timely fashion
This is a good business decision by Prudential on behalf of policyholders in the current California block of business◦ Time remains for smart agents and consumers to consider
Prudential LTC3 as their risk management planning tool
Competitively priced in the 50-65 year-old market◦ Couples discount if only one applies
50% cash alternative benefit is attractive to some particularly if international coverage is an issue
150% home care benefit
Calendar day elimination period
Simplified-issue (multi-life) for groups of 10+◦ Spouses eligible with proof of employment
Don’t wait for a “new & improved” LTC3◦ Base rate increase of 18%◦ Compound inflation benefit rate increase of 40% or more◦ No cash alternative benefit
Individual Applications◦ Must be in the BJFIM Woodland Hills office by February 24 Apps must be scrubbed and in the home office by February 29
Multi-life Applications◦ Employer applications must be in the BJFIM Woodland Hills
office by February 24 Must be transmitted to home office by February 29 60-days from the date of the group approval for applications to
be received at the home office
Find Prudential’s official announcement and submission rules at www.bjfim.com Important Announcement tab Or contact your BJFIM/Paradigm marketing representative
Genworth◦ Low-cost leader for the time being◦ Great benefits and reputation◦ New product has been filed in California with significantly higher premiums
American General◦ Simplified product design and competitive at 3% CIP◦ 40% Cash alternative benefit◦ “Drop-ticket” application process
United of Omaha◦ Competitive at the older ages◦ Underwriting flexibility
John Hancock◦ New product release end of February – stay tuned
Transamerica◦ Multi-life (simplified underwriting) at 15 lives
LifeSecure◦ Still waiting on CA DOI for premium OK◦ Simplified product design◦ Multi-life (simplified underwriting) at 3 lives
Fastest growing segment of “LTC” world according to LIMRA◦ $775 million to $2 billion + -- 2010 to 2011◦ Mostly single premium life products GNW TLC and LNF MoneyGuard
◦ New variations on linked theme are developing
TLC or MG are for older affluent consumer who’s said “no” to traditional LTCi◦ What if I never need long-term care?◦ Reposition “rainy-day” money
Annual premium UL and term life, DI and CI products are designed for consumers who want their premium dollars to “multi-task”
Genworth TLC Webcast with Ken Herlihy February 22nd
◦ Mark your calendars!
Mass Middle
Market
Ages 35+
Premium $ Must
Multi-Task
What Can We Do ToAppeal To More
Consumers?WHY?
• There’s lots of ‘emout there
• They need help the most
• The social safety net is collapsing
50-year low in life insurance ownership
Consumer interest is at a 50-year HIGH
Mid-market profile – 42% of population◦ $50,000 to $250,000 annual income◦ Less than $1,000,000 assets
40% of these people recognize that they are underinsured◦ #1 Underserved market segment for life insurance
Average age of life insurance agents = 58◦ Market belongs to non-traditional life insurance
producers Financial advisors, property/casualty/health agents,
community banks
40% of married households are uninsured
69% of single adults with children are uninsured
33% of those who own life insurance purchased their policy over 10 years ago
60% who own life insurance said they wanted to meet with their advisor at least once per year
77% indicated that they would like to spend an hour or less in their annual review
88% of consumer indicated that an online needs analysis calculator would be helpful in the purchase process◦ 77% say they’ve never used one to determine LI need
73% who performed a LI needs analysis went on to purchase a policy◦ Verses 49% who did not do a needs analysis
Good News! We have these tools for agents TODAY!
BJFIM/Paradigm has top-level access to ALL life insurance products in the independent distribution channel◦ Check-out our multi-company Term Life Quote Engine
Genworth has a complete mid-market package with:◦ Competitive & flexible Colony Term /UL life product series◦ “LifeJacket” SM training, marketing and sales tools Online life insurance training modules “Let’s-Talk” online needs analysis tool Marketing letters, brochures, postcards
Turn-key life insurance sales success
◦ Life Quick Request (online drop-ticket) application & fulfillment process The fastest, easiest and most profitable way to sell term life with NO commission
reduction
Accessed at www.bjfim.com, Life Insurance Made Easy tab
GNW is Fortune 500 publically traded with heritage dating back to 1871◦ NOT OWNED BY GE Capital◦ Formerly First Colony Life, Life of Virginia, AMEX Life (LTC)◦ $100 billion + in assets◦ 6,500 employees worldwide◦ 15 million customers
Genworth is an industry leader in competitively priced term life◦ Outstanding products◦ Outstanding training and support◦ Life Quick Request (drop-ticket) technology will make you more profitable
Ratings◦ A -- A.M. Best◦ A – Standard & Poors◦ A2 – Moody’s◦ A- -- Fitch◦ 380 Risk Based Capital (2011 2Q Est.)
ColonySM Term UL Advantage Guaranteed Death Benefit of Secondary UL Insurance
Guaranteed premiums for 10, 15, 20 or 30 yearsVery competitive with term
New Life Long UL
Flexible premium payments,including single-pay, short-pay, 1035 Exchange
Premium to extend coverage can be known and guaranteedwhen the policy is issued
Affordability and Flexibility
Flexibility of Universal Life Insurance
Affordability of Term Life Insurance
BJIFM/Paradigm SurveyMales & Females Ages 35, 45, 55 (Nearest)
$500,000 Death Benefit PNS Rates10, 15, 20 & 30 YT
Lowest Cost – 3 times
Second Lowest Cost – 12 times
Third Lowest Cost – 6 times
Fourth Lowest Cost – 3 timesPremium differential between ranking often as little as $1Premium differential will vary by actual age or nearest age
Rate class due to underwriting considerationsSurvey includes more than 15 companies -- Independent Distribution
This is a BJFIM/Paradigm ComparisonFor Agent Use Only
Allows you or an assistant to start the life insurance application process with Genworth Financial
Fastest, easiest most profitable way to sell high quality term life insurance in any agency
Generally takes less than 15 minutes to:◦ Calculate the client’s appropriate
premium◦ Provide GNW with basic client info
GNW & BJFIM do the rest!
What Is Life Quick Request?
Agent or assistantinputs basic client informationon our website
Genworth FulfillmentCenter &Completes application
A Streamlined Application ProcessSo You Can Sell More!
Agentreceivesfull commissions
Agent delivers the policy
to clients
Life Quick Request is not a new product. It’s a faster, easier more profitable way to process Colony Term UL & LifeLong UL applications
•Contacts customer within 24 hours •Completes application through a reflexive interview
(Parts I & II and signature)•Voice-signed HIPAA
• Orders APS, as needed•Flexible scheduling options for Paramedical exam
Scott (A Real Agent)Northern California
Health & Property Casualty Agent
After Dropping His First LQR Ticket Scott wrote:
“That was as easy as pie! Kurt just submitted his first and will be doing a second shortly. I have another one ready to go. Now my other 4 personal lines CSR's are all signed up for their life license course and jumping at the chance to write some life insurance. Funny how that works with a good tool.
January 20, 2012
Sell high quality, competitive life insurance from the comfort of your office
Go from quote to “drop-ticket” seamlessly◦ From BJFIM website to Genworth
Quicker processing◦ Most cases processed 12-days faster
Quicker commissions◦ Faster processing means faster $$$$
Better placement◦ Ratios improved by 8%
Full case control◦ BJFIM/Paradigm office provides full case management
Fewer requirements◦ Reflexive scripting results in fewer APSs
2011 average LQR Ticket = $804/annual premium◦ LQR has increased the average term life premium!
First year commission to your agency◦ 10 YT = 75%◦ 15 YT = 85%◦ 20 YT = 95%◦ 30 YT = 95%◦ LL-UL = 80%
End of 2012 your “run-rate” @ 85% average= ◦ 5 paid lives per month = $41,000◦ 7 paid lives per month = $57,400◦ 12 paid lives per month = $98,400
You’ve helped your client and opened new possibilities
Processing costs are minimal with LQR
You don’t have to touch a piece of paper until the policy arrives from BJFIM/Paradigm
Michael SandfreyIndividual Disability Income
Existing Clients◦ According to LIMRA 4 out of 5 Insurance BUYERS have never been
asked to buy disability income protection
People who need to leverage insurance dollars ◦ With products incorporating LTC benefits as well as DI their money
multi-tasks
Highly compensated employees with group plans◦ Typically those who are highly compensated and with incentive income
are discriminated against in most group plans
Companion sale with group LTD◦ Executive carve-out
Owners of small business not covered under their workman’s compensation policies
Ease◦ Principal Financial Group has developed the most producer friendly process in the industry◦ Healthy clients under the age of 50 and earning less than $150k per year can qualify for
$3,000 in monthly benefit ($5,000 for 3 or more lives)
Tele-App◦ Most DI applications can range between 30 and 50 pages◦ PFG’s tele-app is 4 pages and a few signatures◦ You gather some basic information and the home office does the rest
No APS◦ No waiting 60 days for Kaiser to send medical records
No Financials◦ What they state on the app is what is used
No Labs◦ No needles, no filling vials and no filling cups
Most decisions made in less than a week◦ Which means you get paid faster
Chronic Illness Benefit◦ Leverage dollars into double duty providing both DI and LTCi needs
1. Don’t stop what’s working for you now!
2. But ask “who is my customer and what else do they need?”
3. What new technologies will speed your success and make you more profitable?
4. Who do you need on your “survival team”?
Paradigm Insurance Marketing
Experience
Knowledge
Products
Technology That Works
Training
Support