1. FIELD MARKETINGFIELD MARKETING THE TRUTHS & MYTHS OF CORPORATE LTCI IN AMERICA Session 11: February 27, 2006 Session Producer: Roch Rodrigue, President & CEO The Todd Benefits Group, Inc.

2. FIELD MARKETINGFIELD MARKETING 2 The Myths Outlined Roch Rodrigue President and CEO The Todd Benefits Group, Inc. The Consultant’s View Steven Farish Vice President Wachovia Work Site The MGA’s View Carol Gardner President and CEO Lifestyle Insurance Services The Broker’s View Kim Natovitz President and CEO The Natovitz Group

3. FIELD MARKETINGFIELD MARKETING 3 The Myths Must Have GI (Guaranteed Issue) Reserve Transfers are Important Group LTCi is A Better Value (Cost) Large Employers Must Use Group – Simplicity Group Plans Easier to Administer – Employer Must Have Payroll Deduction Group Plans Are Portable…but Producer Can Only Leverage Large Case w/Group Carrier Technology – Not Effective with LTCi

4. FIELD MARKETINGFIELD MARKETING 4 Guaranteed Issue Wrong Call To Action –Going after the wrong risk –Presents compromised/adverse risk on reserves long-term Reduced Underwriting –There is a cost to participants –It’s the wrong mindset for insured Higher Group Lapse Rates Add To the Problem If Voluntary EE Pay All – Should have the best value and plan design to meet needs.

5. FIELD MARKETINGFIELD MARKETING 5 Reserve Transfers Now found in most RFPs Carriers may or may not agree to transfers Adverse affect on Employees –There is a cost –Compromises reserves over the long haul

6. FIELD MARKETINGFIELD MARKETING 6 Group LTCi is a Better Value Group rates should be higher than individual: –Adverse selection (Guarantee Issue) –Spouses and family members pay higher rates even though fully underwritten Preferred rates are not available Often Spousal/Partner discounts not available Group Sponsored multi-life discounts not available

7. FIELD MARKETINGFIELD MARKETING 7 The Need For Simplicity Trying to fit a square peg in a round hole –Customized plan design to meet needs –ABC choices don’t often meet the need –Riders and APOs not available –Should have plan design counselors available –Should be a once in a lifetime buying decision if done properly

8. FIELD MARKETINGFIELD MARKETING 8 Group Plans–Easier to Administer and Communicate Communication Plan Should Include Multi-media and Personalization Need for Payroll Deduction –Checking deduction is better –Direct billing is also effective –Must have employer support for plan in writing

9. FIELD MARKETINGFIELD MARKETING 9 Group Plans are Portable…but… How easy is it to port coverage by participant? Does the carrier actively seek/assist the participant? What are chances a participant will lapse when they terminate employment? Handling acquisitions – back to simplicity myth

10. FIELD MARKETINGFIELD MARKETING 10 Managing Large Case Relationships Find a partner with –Infrastructure to support Multi-Life approach –Effective communication and technology –Licensed staff to support Producer’s Role –Manage relationship with client –Assist strategic partner with implementation – don’t take over or get involved unless asked –Understand the process in its entirety – you can use it on future sales opportunities

11. FIELD MARKETINGFIELD MARKETING 11 Technology Not Effective with LTCi Technology (web sites) should be used as a tool to educate and motivate employees Used to simplify the communications process In combination with a live human being that can assist the policyholder with plan design and budget issues