Sponsored Group Program*

Marketing Long Term Care Insurance to Small Business and Associations

*Marketing Distribution Discount Program in New York and Texas

Sponsored Group Program*

Marketing Long Term Care Insurance to Small Business and Associations

*Marketing Distribution Discount Program in New York and Texas

Long Term Care is Underwritten byJohn Hancock Life Insurance Company

Boston, MA 02117LTC-2455 06/04

For professional use only. Not for use with consumers.

OverviewOverview

• LTC Trends

• Caregiver Crisis

• Workplace Attitudes

• Sponsored Group Program

• Small Business Opportunities

• LTC Trends

• Caregiver Crisis

• Workplace Attitudes

• Sponsored Group Program

• Small Business Opportunities

Heightened AwarenessHeightened Awareness

The Current LTC MarketThe Current LTC Market

• LTC Trends

• Caregiver Crisis

• Workplace Attitudes

• Sponsored Group Program

• Small Business Opportunities

• LTC Trends

• Caregiver Crisis

• Workplace Attitudes

• Sponsored Group Program

• Small Business Opportunities

The Need for LTC assistanceThe Need for LTC assistance

60% of people who reach age 65 may need long-term care at some point in their lives¹.

40% of those receiving long-term care services are adults between ages 18 and 64¹.

60% of people who reach age 65 may need long-term care at some point in their lives¹.

40% of those receiving long-term care services are adults between ages 18 and 64¹.

1. “Where does the Population Live and Who Cares for Them? LTC: Diverse, Growing, Population Includes Millions oaf Americans of all Ages,” January 2001.

Caregiver CrisisCaregiver Crisis

• Most people – nearly 79% - who need LTC live at home or in community settings, not in institutions¹.

• 27% report they are considering a job change as a result of their care giving/work experiences¹.

• According to the 2001 study by AARP, nearly 20% of sandwich generation caregivers-those between 45 and 55-have cut back their work hours, even though they’re in their prime earning years. And 27% help pay expenses for older family members².

• Most people – nearly 79% - who need LTC live at home or in community settings, not in institutions¹.

• 27% report they are considering a job change as a result of their care giving/work experiences¹.

• According to the 2001 study by AARP, nearly 20% of sandwich generation caregivers-those between 45 and 55-have cut back their work hours, even though they’re in their prime earning years. And 27% help pay expenses for older family members².

1. Long-Term Care Users Range in Age and most Do Not Live in Nursing Homes: Research Alert Agency for Healthcare Research and Quality, November, 2000

2. And Thou Shalt Honor, The Caregiver’s Companion, Edited by McLeod, B, 2002.

Caregiving CostsCaregiving Costs

• Extensive 24-hour-a-day home care can cost as much or more than a nursing home.¹

• Almost half of men (48%) and women (42%) reported that they were contributing financial support- an average of $273 per month in out-of-pocket expenses.²

• 40% of caregivers stated that they had to take time off without pay for an average of 17 days of work missed per year due to caring for disabled elder, and those lost workdays translated to lost earnings of $5,393 per year.³

• Extensive 24-hour-a-day home care can cost as much or more than a nursing home.¹

• Almost half of men (48%) and women (42%) reported that they were contributing financial support- an average of $273 per month in out-of-pocket expenses.²

• 40% of caregivers stated that they had to take time off without pay for an average of 17 days of work missed per year due to caring for disabled elder, and those lost workdays translated to lost earnings of $5,393 per year.³

1. Long-Term Care Planning guide, United Seniors Health Council, 2001.

2. Findings from a National Study by the National Alliance for Caregiving and The Center for Productive Ageing at Towson University, June 2003

3. U.S. Department of Health and Human Services, Office of Disability , Aging, and Long-Term Care Policy (DALTCP) and Lifeplans, Inc. January 2000

Future TrendsFuture Trends

• By 2030, when the last of the Baby Boomers will be retiring , the number of people over age 65 will have doubled to 70 million.¹

• The U.S. Department of Health and Human Services reports that the total number of Americans needing long-term care is expected to rise from 15 million in 2000 to 27 million in 2050, an increase of nearly 100 percent.²

• By 2030, when the last of the Baby Boomers will be retiring , the number of people over age 65 will have doubled to 70 million.¹

• The U.S. Department of Health and Human Services reports that the total number of Americans needing long-term care is expected to rise from 15 million in 2000 to 27 million in 2050, an increase of nearly 100 percent.²

1. American Council of Life Insurers, 2000.

2. “The Future Study of Long-Term Care Workers in Relation to the Aging Baby Boom generation: Report to Congress.” Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation. May 14, 2003, p.v.

Sponsored Group ProgramSponsored Group Program

• Defining the Sponsored Group Program

• Voluntary enrollment

• Carve outs

• Individual benefits

• Tax advantages

• Defining the Sponsored Group Program

• Voluntary enrollment

• Carve outs

• Individual benefits

• Tax advantages

On the Job with LTCIOn the Job with LTCI

• Enriches benefit packages

• Reduces absenteeism

• Minimum administration, if any

• Little to no cost

• Enriches benefit packages

• Reduces absenteeism

• Minimum administration, if any

• Little to no cost

Employee AdvantagesEmployee Advantages

• 5% discount

• Additional 15%/30% if married/partner

• Available ages 18-84

• Maximum policy flexibility

• Portable

• 5% discount

• Additional 15%/30% if married/partner

• Available ages 18-84

• Maximum policy flexibility

• Portable

Eligible IndividualsEligible Individuals

• Employees

• Retirees

• Spouses/Partners

• Parents and Parent in laws

• Grandparents

• Children and step children

• Employees

• Retirees

• Spouses/Partners

• Parents and Parent in laws

• Grandparents

• Children and step children

Eligible GroupsEligible Groups

• Employer– 5 or more actively at work employees– Receipt of 5 or more applications in 60 days

• Association– 10 or more members– Receipt of 5 or more applications in 60 days– In existence for 2+ years, have constitution, by-

laws or charter– Formed for purposed other than insurance or

social– Primary focus is limited to trade or professional

• Employer– 5 or more actively at work employees– Receipt of 5 or more applications in 60 days

• Association– 10 or more members– Receipt of 5 or more applications in 60 days– In existence for 2+ years, have constitution, by-

laws or charter– Formed for purposed other than insurance or

social– Primary focus is limited to trade or professional

Employer Target ProfileEmployer Target Profile

• Existing clients

• Family owned businesses

• < 200 employees

• Strong group life and health insurance benefits

• Enrollment rate 5%-10%

• Existing clients

• Family owned businesses

• < 200 employees

• Strong group life and health insurance benefits

• Enrollment rate 5%-10%

Good GroupsGood Groups

• Accounting and law firms

• Bar associations

• Hospital and medical practices

• Computer/Hi-tech firms

• Women’s Organizations

• Teachers/Education Associations

• Accounting and law firms

• Bar associations

• Hospital and medical practices

• Computer/Hi-tech firms

• Women’s Organizations

• Teachers/Education Associations

Marketing TipsMarketing Tips

• Marketing plan

• Employer commitment

• Capitalize on employer experience

• Maintain momentum

• Marketing plan

• Employer commitment

• Capitalize on employer experience

• Maintain momentum

Cross Selling OpportunitiesCross Selling Opportunities

• Key employee/Disability insurance

• Succession planning

• Tax/Estate planning

• Retirement income planning

• Key employee/Disability insurance

• Succession planning

• Tax/Estate planning

• Retirement income planning

Thank youThank you

• Name

• Address

• Phone Number

• Name

• Address

• Phone Number