Title: Capitas Training Call 111506.
1John Hancock Multi-Life Programs Presented to
Capitas Financial November 15, 2006
Courtney Turner Sponsored Group Manager Laurie
Picardi LTC Sales Consultant CorporateChoice
Implementation Manager Kristen Marie
Martin Corporate Solutions Manager LTC Sales
Consultant
For agent educational and training purposes only.
Not intended for the general public. Program
specifics may vary by state. Presentation is
designed to be a general overview of several
programs. Please refer to the specific program
guide for details.
Capitas Training Call 111506.
2Agenda
- John Hancock Multi-Life Programs/Products
- Continuum of LTC Products
- Sponsored Group Discount Program
- Corporate Solutions
- Corporate Choice
- - Review of Implementation Process
3Multi Life LTC Can Help Grow Your Business
- Secure your client base
- Expand relationships with current clients
- Create an entré to new customers
- Leverage the affinity of the group to generate
leads and increase sales
4John Hancock Has A Product for All Markets
- Sponsored Group (Individual products with group
discount, targeting employers of 5 and trade and
professional associations of 10) - Corporate Solutions (15-500 Eligible Employees)
- CorporateChoice (50-1000 Eligible Employees)
- CareChoice Large Employer (1000 Eligible
Employees)
5Best Target Employer Groups
- High potential Groups
- Age 60 over age 40
- Salary High for geographical area (1.5 times the
state average individual income is the true
target) - Voluntary Benefit Participation
- Medical/Flexible Spending Accounts gt20
participation - 401(k) Plan gt80 participation
- Supplemental Term Life gt40 participation
- Physicians, Law Firms, Accounting, Engineering
- Low potential
- Retail, Hospitals employees, manufacturing
6Sponsored Group Discount ProgramMarketing Long
Term Care Insurance to Small Business and
AssociationsMarketing Discount Program in
New York and Texas
- 2,800 approved Sponsored Groups as of April 2006
- Employer Groups 1,717
- Associations 1,083
Long Term Care is Underwritten by John Hancock
Life Insurance Company, Boston, MA 02117. For
professional use only. Not for use with
consumers.
LTC-3174 10/2005
7Sponsored Group (SG) Eligible 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
- Alumni associations
8SG Employee Advantages
- 5 discount
- 10 for NY RWJ
- Additional 15/30 if married/partner
- 10 or 20 in FL NY
- Available ages 18-84
- Maximum policy flexibility
- Portable
- Ongoing, open ended enrollment period
- Best for protracted marketing efforts
9SG Eligible Individuals
- Employees
- Retirees
- Spouses/Partners
- Parents and Parent in laws
- Grandparents
- Children and step children
10SG Employer Target Profile
- Existing clients
- Family owned businesses
- lt 200 employees
- Strong group life, health 401 K insurance
benefits - Enrollment rate 5-10
11SG Association Target Market
- Accounting and law firms
- Bar associations
- Medical/dental practices
- Computer/Hi-tech firms
- Professional Womens Organizations
- Teachers/Education Associations
12SG Marketing Tips
- Marketing plan
- Employer commitment
- Capitalize on employer experience
- Maintain momentum
13When to use which program?Sponsored Group (SG)
- PROS of SG
- Best suited for continuous marketing programs
- All rate classes and all benefit options
available - Open ended enrollment period Not limited to 60
days - Minimal requirements to qualify an employer
- CONS of SG
- Full application and underwriting programs
- No minimum offer
14Sponsored Group Discount Program
2005 Individual Multi-life LTCI Inforce
Business as reported to LIMRA
15JH Sponsored Group
- 2005 Inforce Business for Individual LTCI
Sponsored Group11.8 M
Individual LTCI
65.3 M
16Sponsored Group Discount Program
- 1-888-321-4LTC
- Required Paperwork
- Sponsored Group Worksheet (LTC-3190)
- Letter of Acknowledgement (LTC-3191)
- Proof of Membership (LTC-3192)
- Marketing Template Form (LTC-3193)
17Corporate Solutions
- John Hancock LTC Insurance solution for the small
business market - Allows customization of individual product in a
group setting - Simplified underwriting
- Simplified enrollment
- Includes marketing support for the sales process
- Announcement
- Education and motivation
- Enrollment
18Two Program Options
- Corporate Solutions
- MGSI or Modified Guaranteed Standard Issue
- Best for employer pay cases
- MGTI or Modified Guaranteed to Issue
- Best for voluntary pay cases
19MGSI Modified Guaranteed Standard Issue
- Most simplified application and process
- 15 Eligible Employees (or 3 for 500 lives)
- 60 Day enrollment window
- Five knockout questions No further underwriting
- Ability to buy-up without additional underwriting
if within maximum limit - No preferred or substandard rates (just one rate
class) but all other discounts applicable - Limited plan options
- Best for employer pay all cases
20MGTI Modified Guaranteed to Issue
- Simplified application and process
- Slightly expanded underwriting
- Access to preferred rates
- All benefit options except lifetime
- Offers minimum guaranteed coverage for declines
if meet minimum participation requirements - Best for voluntary enrollments
21Corporate Solutions Program Comparison
22Corporate Solutions Program Comparison
GPO is available only if Employer agrees to
administer Not available for CCI states
23When to use which program?Modified Guaranteed
Standard Issue (MGSI)
- PROS of MGSI
- Best for employer paid
- Most simplified application and process
- Knock-out questions only
- Employer paid buy-ups declined for coverage
receive original employer paid benefit - CONS of MGSI
- No preferred rates limited plan options
- Voluntary offering Opt Outs for additional
coverage and subsequent U/W declines receive no
minimum offer - If group fails to meet minimum participation, all
cases closed
24When to use which program?Modified Guaranteed To
Issue (MGTI)
- PROS of MGTI
- Best for Voluntary Enrollments
- All rates includes preferred rates
- All benefit choices except Lifetime Benefits
and Family Care benefit - Simplified App Process
- Buy-ups declined for coverage receive minimum
offer - If the group fails to meet minimum participation,
issued cases remain in effect - Spouses of eligible employees can apply w/MGTI
app - CONS of MGTI
- Six additional questions vs. MGSI
- Telephone Interview and possible full APS
25Getting Started is Easy
- Step 1 Understand and familiarize yourself with
the Corporate Solutions Program. - Step 2 For questions contact the Corporate
Solutions Resource Line at 1-888-321-4LTC - Step 3 Identify and contact your high potential
business clients. - Step 4 Obtain a case quote and complete required
forms. - Step 5 Case approval and program
26CorporateChoice Mid-Market Business Product
- Hybrid product blending group and retail features
- True group based administration/service model
- Retail based compensation - heaped
- Full sales support services available
- Customized producer web site
- Producer ability to run illustrative rates, plan
design summary, and proposals - Worksite tools/materials provided included in
rate structure - Customized employer enrollment web sites
27Group LTC - The Missing Link
28GLTCI - The Interest Is Already There
8,000
Number of Employer Groups Installing a GLTCI Plan
by Year
7,288
6,577
7,000
5,801
6,000
5,015
5,000
4,410
604 Total Increase Over 10 Years
3,759
4,000
3,079
3,000
2,390
1,802
2,000
1,294
1,035
1,000
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Limra Reports, U.S. Group Long Term Care
Insurance Sales and In-Force. 1995 through 2005.
29Why Group Long-Term Care Insurance (LTCI)
- Market is large and ready
- Creates paternalistic environment to attract and
retain the best employees - The lines between Group and Retail LTC are
blurring - Producer Group LTC phobias are fading
- Some employers demand guarantee issue
- Enrollment activity supported by home office
- Comprehensive enrollment campaign at no cost to
the producer with online enrollment driving
participation
30CorporateChoice Case Qualification
- Provide minimal information to qualify your
clients - Situs state
- Number of eligible employees
- Average age and salary of employees
- Industry classification
- Number of employer funded cases
- Underwriting
- Guaranteed Issue1
- Simplified underwriting - five questions
- Standard underwriting full statement of health
- Producer/employer may opt for more underwriting
for lower rates - 1 GI offering includes a pre-existing condition
clause to mitigate anti selection in relatively
small groups
31CorporateChoice Sales Support
- Sales Support Desk
- Staffed with professionals dedicated to
supporting the sales of CorporateChoice - Train on CorporateChoice product and positioning
- Provide implementation support and worksite
direction - Producer Web Site Capabilities
- Qualify cases with minimal data
- Run illustrative rates for qualified cases
- Run detailed plan design summary to present to
employer - Download sample policies and certificates
- Customize presentation for employer meetings
- Save all client driven documentation on
individual producer Workspace
32Introducing CorporateChoice Plan Benefits
CorporateChoice JHFN Cabinet Club 9/05
33Daily Benefits/Benefit Periods
- Daily Benefits (DB)
- 50 - 300 a day for employer paid programs
- 100 Minimum in NY State
- 100 - 300 a day for voluntary programs
- 50 increments
- No NY State Employer Pay Cap
- No Individual ER cap at 50
- Benefit Periods (BP)
- 2, 3, 4, 5, or 6 years
34One-Time Elimination Period (EP)
- 30 days or 90 days
- 1 day of service 1 day towards the EP
- Only need to meet the EP once during lifetime
35Inflation Options
- Compound Inflation Coverage (CIC)
- DB automatically increases by 5 compound
annually - Increases regardless of age or claim eligibility
- Guaranteed Purchase Option (GPO)
- Offer to increase DB by no less than 5
compounded annually over the 3 year period - Every three years from employers policy
effective date - No age limit
- If insured declines one offer and goes on claim
no more offers will be received - No offers will be received if in reduced paid up
status due to nonforfeiture status
36Built-In Benefits
- Return of Premium at Death Benefit
- Returns 100 of premiums paid less any benefits
received if death occurs prior to age 70 to the
insureds estate - Does not apply to policies in reduced paid up
status - Guaranteed Renewable
- Coverage can not be cancelled as long as premiums
are paid on time - Company reserves the right to increase premiums
by class subject to state insurance department
approval
37Benefit Reimbursement
- Community Based Professional Care (CBPC)
- Home Health Care
- Homemaker Services
- Adult Day Care
- Informal Care
- Benefits paid at 25 of the DB with calendar year
maximum of 30 days - Custodial Care and Homemaker Services provided in
home - Informal Caregiver
- Can be a family member
- At least 18 years of age or certified or employed
by a qualified Home Health Agency - Can be paid in addition to CBPC Benefits - total
benefits can not exceed DB - Decreases the CL
- Hospice Care
38Benefit Reimbursement
- Stay at Home Benefit
- Services
- Care planning visits
- Home modification
- Emergency medical response systems
- Durable medical equipment
- Caregiver training (up to 5 X the DB)
- Home safety check
- Provider care check
- Maximum 30 X the DB
- Separate pool of money - does not reduce the CL
- Can be paid during the EP, but does not count
towards the EP
39Payment Options
- Active employees and spouses/partners can be
payroll deducted - Retirees and spouses/partners may be deducted
from pension - All others are automatic bank withdrawal or
direct bill - Premium payment grace period
40Spouse/Partner Discounts
- Employer option
- Some employers may see this as favoring married
employees - Available to spouses and domestic partners where
approved - Spouse/Partner Discount
- A premium discount if you are married or part of
a defined partnership - Blended Discount
- Based on general employer population
- Must be used for all employer paid cases
41Introducing CorporateChoice Implementation and
Enrollment
CorporateChoice JHFN Cabinet Club 9/05
42Enrollment
- Prior to enrollment, employees receive from John
Hancock - An announcement letter (enrollment dates, contact
info, employer-dedicated Web site info with
online enrollment) - A needs piece explaining why you should consider
LTCI - Rate quote with personalized age-based rates
- Plan highlights brochure that explains plan
benefits
43Elements to an Enrollment Campaign
- Awareness
- Announcement letters
- Web site
- Education
- Employee presentation
- Web site
- Implementation
- Online via the Web site for Guaranteed Issue
- Simplified and Full application on Web or in
enrollment kit
44State Approvals
- Alabama
- Alaska
- Arkansas
- Arizona
- Colorado
- Connecticut
- D.C.
- Delaware
- Georgia
- Hawaii
- Iowa
- Idaho
- Illinois
- Kansas
- Kentucky
- Louisiana
- Maine
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Mississippi
45State Approvals continued
- Montana
- Nebraska
- New Mexico
- Nevada
- New Hampshire
- North Dakota
- New York
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Utah
- Virginia
- West Virginia
- Wisconsin
- Wyoming
46Extraterritorial States
States that require policy approval for residence
regardless of approval status in the employer
situs state
- Alaska
- Arkansas
- Connecticut
- Delaware
- Indiana
- Kansas
- Mississippi
- Montana
- North Carolina
- Oklahoma
- Utah
- Washington
47John Hancock Multi-Life Programs Presented to
Capitas Financial November 15, 2006
Courtney Turner Sponsored Group Manager Laurie
Picardi LTC Sales Consultant Kristen Marie
Martin LTC Sales Consultant
For agent educational and training purposes only.
Not intended for the general public. Program
specifics may vary by state. Presentation is
designed to be a general overview of several
programs. Please refer to the specific program
guide for details.
Capitas Training Call 111506.