Power of Numbers LTCi Sales Opportunities in the Association and Multi-Life Markets Presented by: Brian M. Johnson, CLTC Director, Business Development National Long-Term Care Brokers, Ltd.

“Approach an ordinary activity in an extraordinary way.”

Agenda Trend spotting Association/Affinity Marketing ◦Where to find them ◦Gaining an endorsement ◦Marketing to members ◦Web meeting Multi-Life Opportunities ◦How to spot them ◦Sales angles Case studies

LTCi Sells Itself if… … You engage, ask, listen and educate. Demographics and personal experiences are helping immensely with the “new thinking” needed to effectively sell LTCi: “Living a long life is a near-certainty.”

What is our true challenge? Finding qualified prospects (planners) who want to hear from us and trust us.

Your Marketing Hat “Unless your campaign has a big idea, it will pass like a ship in the night.” -David Ogilvy in Confessions of an Advertising Man. Parallel with Phil Knight of Nike. ◦Traditionally we market LTCi. Now we need to use LTCi as our best marketing tool.

Be a Trend Spotter Demographics – Baby Boomer, Gen X and Millennial. Where do we get information? Green initiative. Cultural. Health care reform. Outside the financial services “bubble.” ◦Other industries ◦New markets

Affinity Marketing Your clients Your family and friends Banks/credit unions People you do business with Employers Put a (C)ustomer (R)elationship (M)anagement system in place today!

Where else? ASSOCIATIONS, UNIONS & SOCITIES + Pay dues + Have by-laws + In existence for 2+ years = Association Discount (LTCi and DI) Members see value in paying dues Planners by nature Trust their professional membership organizations

Associations In 2004, it was estimated that there were 1.8 million professional associations in our country. - ASAE and the Center for Association Leadership. Community coordination is at the heart of all associations. Associations are competing for members. They need to attract and retain members. “Non-dues revenue” is music to their ears.

True Power 5-10% Discount for Members and Family ACCESS to the membership. You’re pre-screened; a resource for them, not a sales person. Be where the members are: ◦E-newsletter, web-meetings, pod-casts, blogs ◦Speaking engagements ◦Conferences ◦Direct mail, sponsorships Co-brand yourself with the Association.

Where to find them? Ask your current clients. ◦Mutual client method. Ask your friends and family. Ask the people you do business with. What leisure activities do you enjoy? Internet and yellow pages. Walk on in! Talk to the executive director or member benefits. Retention and non-dues revenue.

Best Associations The need for Long-Term Care doesn’t discriminate by age, race, income or profession. Your interests? Have fun while you work! Preference would be for associations where members are business owners or shareholders in corporations.

Examples Every discipline in medicine, law and accounting have separate associations. Restaurant, Library, Music, Entertainment/Sports, Drivers, Dry Cleaning, Plumbers, Finance… All of these people need advice and have questions. One of the first places they turn to is their membership organizations.

Multi-Life: Start Today Utilize health care reform and CLASS. Be a resource and educate. Get your client’s employer’s information and contact person whenever possible. ◦Go back to current clients. Explain the possibility of a discount. Mutual client. Every prospect or client you speak to may be the key to a multi-life case. ◦Employer paid and voluntary, family plans ◦Underwriting concessions and discounts Your client’s CPA. Mutual client.

Multi-Life: New Prospects Leverage Association endorsements with new prospects, especially if he/she is a business owner or shareholder in a company. Only after the need for LTCi is established should we talk about a multi-life discount and tax benefits. ◦Reference the CLTC Tax Guide You’re bringing true value to the client by going a step further. Simple suggestion.

Case Study: Chiropractor Chiropractor inquired through the state association about individual LTCi for himself and spouse (ages 61 and 57). Shareholder in P.C. First agent proposed: ◦NYS Partnership Total Asset 50, $250/day, 3- Year BP, 5% Compound, 90-Day EP ◦Joint annual Life premium = $4,352.91

Case Study: Chiropractor An extra step. We proposed: Paying premiums through the P.C. ◦100% of the actual premium is deductible as an ordinary business expense for all employee shareholders, regardless of percentage of ownership. IRC 162(a). The company can also deduct 100% of premiums paid for an employee’s spouse and the couple’s tax dependents, whether or not they are considered employees. IRC162(1), 162(1)(2)(C), 213(d) Shareholder and spouse also purchased (ages 45 and 44). ◦NYS Partnership Total Asset 50, $250/day, 3-Year BP, 5% Compound, 90-Day EP ◦10-Pay premium (61 and 57) = $9, ◦10-Pay premium (45 and 44) = $9, Had their CPA sign off on the plan. Helps reinforce the planning and sets the stage for referrals.

Case Study: Rehab Facility Broker gained endorsement of statewide rehabilitation association. Membership consists of 300+ rehabilitation facilities. Average facility employs 250 people. Broker marketed to the membership using the association’s e-newsletter and doing an insert in their hard copy newsletter. First wave of marketing yielded 3 inquiries from HR managers.

Case Study: Rehab Facility Enrolled 1 out of 3 in the first 4 months of receiving the inquiry. 1,000 employee facility. Not for profit. Wanted 100% voluntary. They received a 5% premium allowance and simplified underwriting. Broker conducted series of workshops, education and one mailing to the homes. Yielded 88 lives for a total premium of ~ $82,000. Broker is now in discussion with the group about taking over the 403b; currently has $16,000,000 in assets in the plan.

Case Study: Radiologist Radiologist inquired about individual LTCi through her county medical society for herself and spouse. Broker established need for LTCi and then discussed tax advantages of paying the premium through a company. Radiologist was one of 7 shareholders in a P.C. Broker presented to all shareholders at their monthly business meeting. Case yielded 13 lives, all 10-Pays, for a total of ~ $92,000 in premium.

In Summary Keep your eye out for trends and get creative with marketing. ◦Co-branding, web-meeting, podcasts, blogs Focus on associations where members are business owners or shareholders in corporations. Leverage association endorsements to open the door to multi-life cases. ◦Leverage your clients’ relationships with their CPA’s. Explore new markets.