If you attended one of our Spring Sales Caravan meetings we alerted you to the fact that a product designed by yours truly and Ron Hagelman, Jr. would soon be released for sale inCalifornia. ‘Soon’ is relative when trying to get a long-term care insurance product approved in the Golden State but I am pleased to announce that our new Loyal American Life Insurance Co. Employees Foundation Plan’ Multi-Life and Security Advantage’ Individuallong-term care insurance programs are now available for sale in California. While we will give you the low-down on these great new sales opportunites at our upcoming Multiple Streams of Income continuing education and sales training meetings on September 25th & 26th, allow me to devote today’s post to some of the items that make this product so attractive to consumers and agents.
Loyal American Life Insurance Co. (A Rated by Best’s) and its parent Great American Financial Resources of Cincinnati, Ohio, have been in the long-term care insurance business for over ten years. Our products through the Loyal American distribution channel have been designed to take advantage of the two most recurrent themes in the industry today; multi-life and product simplification.
Let me start with one of the reasons why The Employees Foundation Plan’ and Security Advantage’ long-term care insurance should attract your attention. The underlying product isINDIVIDUAL, which means that you receive fully vested first year and renewal commissions as well as service fees years 11+. This is particularly valuable in the multi-life setting because when you use an individual product no other agent can take your case away from you with a broker of record letter. Also, unlike some individual LTCi products, renewal commissions and service fees are paid on the base and rider premiums (there is a 10-pay exception that you can discuss with your BJFIM/Paradigm marketing representative). This difference can add up to thousands of dollars over the life of the policy.
The Employees Foundation Plan’ provides you with the opportunity to crack the 25 to 500 group market segment with a guaranteed issue core benefit long-term care insurance plan that employers can afford to buy for their employees. We’re not talking big premiums here; most of the groups that we have illustrated so far average less than $15 per month per employee for a significant base plan. For the first time you can present an employer-paid core benefit LTCi program that is less expensive than dental insurance!
There are three keys to success in any multi-life long-term care insurance sale:
- Get the employer to purchase a core benefit on all eligible employees. At $15 per month how hard can this be’ This way you get a core benefit in place on the vast majority of employees without a whole lot of underwriting hassles. Plus, you get paid for your work. Voluntary plans are very difficult from an enrollment standpoint, so get the employer paid portion in place to start with.
- Work the buy-ups and the spousal sales. If you do this right, you can double or triple the premium generated from a group in the first year. If you don’t want to do this yourself, talk to us and we’ll help.
- Once you have the employees and their spouses enrolled the family members eligible for the employer group discount present you with a perpetual referred lead machine. I can’t tell you how many times agents call us asking about lead generation. Several multi-life long-term care insurance plans in place will solve all of your future lead generation problems.
Does this take some work’ Yes, you are going to have to get a census and ask for a quote;yes, you are going to have to ask the employer for an appointment to make a presentation;yes, you are going to have to ask for the sale; and yes, you will probably have to get out of your comfort zone and learn a new skill set. Will it be worth it’ YES! Can we help you YES! All you need to do is ask for it.
The Loyal American LTCi product can also be sold on an individual basis. It has a number of different underwriting niches and product benefits that makes it very competitive and a good choice for many consumers. The Security Advantage’ plan design allows you to mix and match a number of different benefits which allows you to custom tailor the right plan for any client. And coming soon to California will be our patents pending Maximum Lifetime Acceleration and ‘Money-Back’ ROP Riders.
BJFIM/Paradigm is here to help you create multiple streams of income simply by showing individuals and employers how they can protect retirement income and assets from the ravages of an unexpected early onset disability or cognitive impairment as well as the all too inevitable long-term care event.
We look forward to seeing you next week at our Multiple Streams of Income meetings. We still have some space available so REGISTER TODAY if you haven’t already done so.