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

Power of NumbersPower of NumbersLTCi Sales Opportunities in the Association and Multi-Life MarketsLTCi Sales Opportunities in the Association and Multi-Life Markets

Presented by:

Brian M. Johnson, CLTC

Director, Business DevelopmentNational Long-Term Care Brokers, Ltd.

www.NLTCB.com

“Approach an ordinary activity in an extraordinary way.”

AgendaAgenda

Trend spottingAssociation/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…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?What is our true challenge?

Finding qualified prospects (planners) who want to hear from us and trust us.

Your Marketing HatYour 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 SpotterBe 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 MarketingAffinity Marketing

Your clientsYour family and friendsBanks/credit unionsPeople you do business withEmployers

Put a (C)ustomer (R)elationship (M)anagement system in place today!

Where else?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 duesPlanners by natureTrust their professional membership

organizations

AssociationsAssociations

In 2004, it was estimated that there were 1.8 million professional associations in our country. -ASAE and the Center for Association Leadership. www.ASAEcenter.org

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 PowerTrue Power

5-10% Discount for Members and FamilyACCESS 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?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 AssociationsBest 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.

ExamplesExamples

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 TodayMulti-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 ProspectsMulti-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: ChiropractorCase 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: ChiropractorCase 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) = $9,955.27◦ 10-Pay premium (45 and 44) = $9,261.12

Had their CPA sign off on the plan. Helps reinforce the planning and sets the stage for referrals.

Case Study: Rehab FacilityCase 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 FacilityCase 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, email 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: RadiologistCase 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 SummaryIn 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.