twice as simple to sell s2-6046 for agent use only introducing

Twice as Simple to Sell

S2-6046 For Agent Use Only

Introducing

Target: Baby Boomers

• The New LTC Market

• 79 Million, Educated, Planning for Retirement

• Desire to be Independent

• Cash for Lifestyle Assurance should “Life Change on a Dime”

The Simplicity Concept

Why Cash?

• Provides Maximum Flexibility for Funding Care

• “Care Choice” not “Managed Care”

• Best Option for the Future

• Pre-Paid Monthly Cash Benefit

• No Proof of Service or Receipts!

• Simply Ask For a Check!

The Simplicity Concept

Why Cash?

• “All Wheel Drive” for the changing terrain of LTC – Guaranteed Benefits

• Covers New Treatments, Technology for Prolonging Independence

The Simplicity Concept

Highest Rated Product 91

• Prudential Cash 78

• Allianz Generation Protector 65

• MetLife Ideal 2 73

• John Hancock Leading Edge 59

• Custom Care Two 66

Simplicity Stands Tall among the Competition

INTRODUCING

The Improved Simplicity

Why Simplicityii

• True Consumer Value

• Enables a Simpler Sales Process

• Bring back “Lost” Producers

• Attract “New” Producers/Entities

Quality & Value

Why Simplicityii

True Consumer Value

• Cash = Maximum Flexibility

• 100% Benefits Paid – Guaranteed!!

• CareDirections Family Advice & Advocacy Programsm

Sell Value

Here Comes Simplicityii

• When: First Introduction Date : April 2, 2007

• AK, AL, CO, CT, IA, ID, MI, ND, OK, SC, SD, WY and DC/DC TRUST NJ

• Second Introduction Date: May 1, 2007

• AZ, GA, IN, KY, LA, ME, NE, NH, NM, NY,OH, PA

• Third Introduction Date: June 1, 2007

• AR, DE, IL, KS, NV, VA, WI, WV

• Simplicity cease sale 60 days after Simplicityii roll-out

Cash Benefit Account

• Cash Benefit Account (face amount).$100,000, $200,000, $300,000,

$500,000 & $1 million.

• Easy to Explain

• Builds with Inflation Option

• No Durations, No Complicated Formula!

The New Simplicity

Monthly Cash Benefit

• The amount that will be paid in a single month.• Pre-Paid, no proof required• Specific Monthly Cash Benefit options for each

Cash Benefit Account chosen at the time of application.

• Use for HHC or FC• “Rightsized” based on industry experience

What the Customer Wants

The Simplicity Monthly CASH Benefit Options

“Buying LTC insurance isn’t as complicated and mind-boggling as I thought! It’s so easy to make a decision and know what coverage I’ll have! My premium represents

good value.”

Duration

Payment Lifetime10 Pay

Pd up @ 65Reduced @ 65Reduced @ 70

Lifetime10 Pay

Pd up @ 65

HHC Options 60%, 80%, 100% Home Health Care Benefit plus optional enhanced Facility Care

Inflation None5% Simple

5% Compound - 2X Max5% Compound - No Max

None5% Simple

5% Compound - 2X Max5% Compound - No Max3% Compound - No Max

MMB $12K Community or Facility

$12K Monthly Cash Benefit (HC/FC) $16K Enhanced Facility Benefit

2, 3, 4, 5, 7, LCash Benefit Account

$100K, 200K, 300K, 500K, 1M

Simplicity Simplicityii

The Simplicity Improvements

Value Added Programs~ Care Scout~ Script Save

Not Included

Simplicity Simplicityii

Exclusions

Subrogation Clause

Simplified Application

APS & FTF RequiredDiscounts

Rate Classes

Employer Program

Included

None Act of war

Not Included Included

Not Available Available to age 71 for $100K and

$200K plans

> age 75 > age 72

Cap No Cap

3 2

Spouses are fully underwritten

Actively at work Spouses have “Simplified Underwriting”

The Simplicity Improvements

Enhanced Facility Benefit

• Option increases Monthly Cash Benefit for Facility Care

• 33% increase in benefit for 10% premium increase

• Available on all Cash Benefit Accounts

Turn The Sale Around

New Rate Classes

• Preferred – 10% Discount

• Standard

• Previous Class Three Conditions are Now Considered Under Standard Class

NEW Underwriting Enhancement

Discounts*Care Partner Discount:

• 20% Savings if One Purchases

• 40% Savings if Both Purchase and are Accepted

PLUS

• 10% Preferred Health Discount

PLUS

• 10% Affiliation or Employer Program Discount

The Simplicity Improvements (NO CAP)

* Varies by State

Inflation Options

• None

• 5% Simple

• 5% Compound 2X Max

• 5% Compound No Max

• 3% Compound No Max (Partnership Ready)

The Simplicity Improvements (New Option)

NEW!MedAmerica’s National Cost

Survey on Home Care

Provides The Agent with the Basis for “Right-Sized” Benefit Design

NEW SOFTWARE TOOL

MedAmerica’s National HHC Cost Data

• Conducted by CareScout exclusively for MedAmerica

• A Major Software Enhancement

• Turn the Sale Around and approach clients with what they desire –REMAIN at HOME

Sell to the Buyer’s Desire

Cost of Care Study

• 1,800 home health care providers were surveyed across 79 geographic regions of the U.S.

• Data collected on:– Hourly, private pay rates charged by licensed agencies

for home health aide. Data on homemaker services was also collected (only private pay rates were used, no Medicare or Medicaid rates were used.)

• Minimum, maximum and average hourly rates studied

Providing the Agent with New Tools

“Cost of Care” Key Findings

• Findings consistent with other studies including LifePlans analysis of formal and informal care giving in the community.

• National average for a Home Health Aide was $19.07 (50% above or below)

• “People using non-medical home care services use between 22 & 44 hours of home care per week” ($22-$44K annual)

Providing the Agent with New Tools

• Guaranteed Cash - “All Wheel Drive” for the changing terrain of LTC service delivery.

• Pay for Emerging Technology

• Any Service Covered even if provided by by Spouse or Non-Licensed Provider

• 100% Worldwide Benefits

• Agent is not put in the Position to Explain Why Expenses are not Covered

The Simplicity Advantage

Individualized Care Services and Support

• “Care choice,” not “managed care”• CareDirections Family Advice & Advocacy

ProgramSM – CareScout, ScriptSave• Personal Care Advisors - Independent care plan

and support

The Simplicity Advantage

How to Design Simplicity ii

The Simplicity Advantage

For Maximum Value

Simplicity ii Value Design # 1Client Type Married Couple age 60, good health, concerned about care they

may need in the future, however cost is a factor. May retire outsidethe US.

Typical AgentRequest

$100 per day, 7 yr. duration, Compound Inflation Protection, 90day elimination, Standard rate class, life pay, Monthly Indemnityand calendar day riders added

NewSimplicity iiTranslation

$300,000 Initial Cash Benefit Amount (CBA)$3000 Monthly Benefit Amount (MBA), Compound 5% 2X maxinflation, Shared Care Rider

Simplicity ii Design Traditional Reimbursement

Value of Benefitat age 60

$300,000 $255,000

At Age 75 $600,000 $531,440

Premium $1921.00 each $2174.00 each

(Value)

Simplicity ii Value Design # 2

Client Type Age 50 Couple interested in ways they can protect 401k savingsshould one get sick before their retirement plan is complete.

Typical AgentRequest

$150 per day, 100% Home Care, 5 yr duration, 5% CompoundInflation Protection, 90 day elimination, Standard rate class, lifepay

NewSimplicity iiTranslation

$500,000 Initial Cash Benefit Amount (CBA)$4500 Monthly Benefit Amount (MBA), 5% Inflation 2x Max,100% Home Care

Simplicity ii Design Traditional Reimbursement

Value of Benefitat age 50

$500,000 $270,000

At Age 65 $1,000,000 $561,120

At Age 77 $1,000,000 1,007,760

Premium $1316.00 $1597.00

CC2

* Note: With 3% Inflation No Max premium = $1636.00

Simplicity ii Value Design # 3

Client Type Mr. Williams and his wife both age 55 have personal experienceswith parents needing long term care.Family has a history ofAlzheimers. They both worry about getting sick and would want tobe in their own home as long as possible.

Typical AgentRequest

$200 per day/ $6000/month, lifetime duration,100% Home Care,5% compound inflation, Monthly Option and Calendar day riders,90 day elimination, Standard rate class, life pay

NewSimplicity iiTranslation

$1,000,000 Initial Cash Benefit Amount (CBA)$6000 Monthly Benefit Amount (MBA) Compound 5% 2x MaxInflation, Shared Care Rider

Simplicity ii Design Traditional Reimbursement

Value of Benefitat age 55

1 Million Lifetime

W/ Shared Care RiderPremium $2835 $3906

CC2

Simplicity ii Value Design # 4Client Type Bob and Sue are young working adults age 45. They just

discovered a gap in their medical coverage offered at work.Realizing that their health can change on a dime, they have askedtheir agent for affordable solution to their concerns.

Typical AgentRequest

$100 per day,5 years, Compound 5% & 3% Inflation Protection,90 day elimination, Standard rate class, life pay

NewSimplicity iiTranslation

$200,000 Initial Cash Benefit Amount (CBA)$3000 Monthly Benefit Amount (MBA) = (66 Months) Compound3% Inflation, Speed Application

Simplicity ii Design Traditional Reimbursement

Value of Benefitat age 45

$200,000 $182,500

At Age 79 $546,381 $500,000Premium withoutshared care

$734.00 each $756.00 each

Premium withshared care rider

$876.00 each $832.00 each

CC2

Simplicity ii VALUE

Home Care Only Vs. Comprehensive Age 55 = 17% Savings

Age 65 = 18% Savings

Enhanced Facility Option

10 % Increase in premium

Shared Care Rider$200,000 $300,000 $500,000 1million

+21 % +17 % +7 % +4 %

Good Things to Know

Simplicity ii VALUE Good Things to Know

Inflation ProtectionAges 5% Compound

No Max5% 2 X Max 3% No Max 5% Simple

50 1.00 .44 .54 .63

55 1.00 .52 .58 .63

60 1.00 .62 .62 .70

65 1.00 .73 .67 .76

70 1.00 .83 .72 .82

Employer Program

• Simplified Underwriting: During open enrollment

• Actively-at-work employees• Actively-at-work spouses (30+hours/week)• Age 71 or younger• Website enrollment – a MedAmerica 1st

Join the National Growth in EP Sales

Employer Program

• Special Care Partner rates, plus 10% discount• Minimum participation: 10 EE’s pass

4 questions• Best World-wide Coverage (100%)

Join the National Growth in EP Sales

Twice as Simple to Sell

• Everybody Understands & Needs CASH!• New Face Amount Concept• Targeted to Baby Boomers - Relevant Today• MedAmerica’s National HHC Cost Data – NEW!• Speed App – 4 Questions! NEW!• Partnership Ready NEW!• Robust Multi-Life Program - Enchanced Employer

Program

Why Sell #1 LTC Product

Simplicity ii Launch Kit

Tools to Sell #1 LTC Product

Twice as Simple to Sell