MARCH 21, 2006 DISABILITY FORUM PRODUCER PANEL

Mark J. Lerner CLTC

I.Key Selling Points In My Sales Presentation Simple Focus: Needs based sale IDI – starting point for a sound financial plan Stress the importance with prospects on protecting the investment they have made in their craft – education, training, etc.

II. Competition Few quality carriers remaining Keep it simple Differentiating yourself in the market with IDI

III. IDI As My Lead In… Seeing clients on a favorable basis Easier starting point in my approach with prospects based on market Cross-sell opportunities

IV. Common Pitfalls With IDI Underwriting Unadmitted history Lack of communication to underwriter Lack of communication to prospect

V. Handling Underwriting Challenges Managing expectations Understanding that underwriting challenges are a part of the business Goal – having enough business to overcome the challenges

VI.IDI Market In The Next 3-5 Years Employers continue to place more responsibility on the employees Simplified products – with carriers that are committed to the market Connection with Long Term Care

David Asbury, CEO Northwestern Benefit Group

NBCG’s 3 Keys to Success: A sound business strategy Fanaticism about culture, values, & principles Rigorous attention to detail & execution

What Role Does LTD/STD Play In The Benefit Planning Aspect Of Your Practice? It’s the right thing to do! Help our clients and their employees achieve financial success and security Help worker/disabled employee pay COBRA premiums Try to help businesses find the $ to pay for disability Contract language vs. rate (buying decisions)

How Do we Differentiate LTD/STD Carriers In A Highly Competitive Marketplace? “The words on paper” The “intent” of wording “Between the lines” provisions Claims payment history Service/ownership of carrier Quality, well trained, responsive reps Carrier ratings, financial strength, & reputation

The Evolving Role Of LTD/STD In AN Ever-Changing Marketplace Good future market Cost increases (baby boomer impact) Increase in participation limits Increase in LTC LTD/STD as a voluntary benefit

Bob Shulman, Principal Pritchard & Jerden

Success Drivers For Combined Sales Neither group nor individual coverage can do the "total job" alone. Group sets base coverage which is often taxable - excess individual policies usually provides tax-free benefits which get an individual to very near take-home pay levels. Question 1 - "Should your benefit plan design discriminate against owners and higher paid executives? They usually do!" Question 2 - "If one of you executives becomes disabled, how will he make further contributions to his retirement plan?"

Multi-Life Individual Disability Sales Guaranteed/Simplified Issue Substantially discounted pricing Higher limits - 75% of compensation Fully portable Can set up classes - Corporate pay executives, voluntary for all other Quality Coverage - stable rate with better definitions

Other Questions to Generate Interest "If you owned the goose that laid the golden eggs, would you insure the goose or the eggs?" "Does your corporation have a written plan documenting its policy in the event of an owner's long term disability? It better have!" "What would happen to your business if one of the owners were to become permanently disabled?" "Can I reduce my overall cost of Workers' Compensation by implementing a voluntary benefits program?” We can show you how!!