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Offer Letter for Sales of Medical Insurance by dgh14442

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									Long-Term Care Insurance
Multi-Life Discount Program

                                    Metropolitan Life Insurance Company • New York, NY 10166
                     PRODUCER OR BROKER/DEALER TRAINING USE ONLY—NOT TO BE USED WITH GENERAL PUBLIC
                                                    L06087162[exp1209]
                                                     LTC 04730(0608)

         Not a Deposit or Other Obligation of Bank • Not FDIC - Insured • Not Insured by Any Federal Government Agency
            • Not Issued, Guaranteed or Underwritten by Bank or FDIC • Not a Condition to the Provision or Term of Any
                       Banking Service or Activity • Policy is an Obligation of the Issuing Insurance Company
Long-Term Care Insurance is issued and distributed by Metropolitan Life Insurance Company ("MetLife®"), New York, NY and also distributed
                                         by MetLife Investors Distribution Company, Irvine, CA.
 Why LTCI Multi-Life Discount Programs?

Producer
• Multiple policy sales potential
• Door opener for other financial service needs
• Discounted premium rates for employees and eligible
  family members
• Reduced underwriting requirements compared with
  individual policies sold outside the workplace
• Opportunity to substantially increase book of business
• Cross-sell opportunities with the employer for other
  employee benefits broker may offer
PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   2
 Why LTCI Multi-Life Discount Programs?

Employer
• Help maximize recruitment and retention of employees
• Help minimize productivity losses due to caregiver
  distractions
   – i.e. when parent or spouse has coverage and becomes chronically ill,
     the employee is less likely to require time off or be distracted while at
     work

• Achieve potential tax deductions for businesses (if employer
  pays the premium)*
• Help employees protect their retirement savings/assets from
  potentially high costs of LTC events
 * MetLife does not provide tax and legal advice. Clients should consult their attorney and /or tax advisor.

PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                               3
    Why LTCI Multi-Life (continued)?

 Employer Considerations
 • American businesses lose between 17.1 - $33.6 Billion
   in productivity costs per year1
       – Productivity costs include replacing employees, absenteeism,
         workday interruptions, unpaid leave and reducing hours from
         full-time to part-time
       – Based on employees making workplace accommodations as a
         result of caregiving responsibilities

 • Eldercare calculator
       – www.eldercarecalulator.org drills down this figure on an
         individual employer basis
Source: MetLife Mature Market Institute®, ―MetLife Caregiving Cost Study: Productivity Losses to U.S. Business,‖ July 2006
  PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                                           4
 Why LTCI Multi-Life (continued)?

Employee Productivity Concerns:
• More than one-fifth (22%) of the sandwich
  generation furnish aid to their parents, other elderly
  family members, or both.
     – 17% personally provide help, which may include financial as
       well as other forms of assistance, and another 5% bestow
       financial support alone.

• From 1996 to 2001:
     – 43% of older boomers have taken time off from their own jobs
       to care for someone
     – 17% have reduced the amount of time they work
Source: AARP, In the Middle: A Report on Multicultural Boomers Coping with Family and Aging Issues,
July 2001.
PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                      5
     Why LTCI Multi-Life (continued)?

Employee Concerns:
• With the aging workforce, childcare concerns are being replaced
  with eldercare issues
• LTC Insurance for eligible family members can help reduce future
  employee job disruptions
   – With LTC Insurance, the caregiver nearly twice as likely to continue
     working
   – Caregivers can have more ―quality time‖ and leave hands-on
     assistance to care service providers




  Source: MetLife Study of Employed Caregivers: Does Long-Term Care Insurance Make a Difference? 2001.

   PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                      6
Why MetLife?
Multi-Life Competitive Advantages
•   MetLife is a leading carrier in the employer-sponsored LTCI market
•   Simple participation requirements
     – All eligibles count towards participation requirements
     – Minimum requirement of 3 lives to establish a group

•   No reduction in commission for 10+ life segment
•   Reduced underwriting for everyone
•   Spouse can have access to simplified underwriting if Employer-Paid*
•   10% Multi-Life discount available (employer-paid simplified
    underwriting)

* Does not apply in the 3-9 life segment


PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   7
Eligibility* for Multi-Life Discount Program
• Employees/Retirees and their:
                                                                       All participants
      – Spouses/Domestic Partners**
                                                                        must be age
      – Adult Children                                                     18 to 84
      – Parents and Parents-in-law (including step)
      – Grandparents and Grandparents-in-law (including step)


*State variations may apply to eligible participants
**Spouses include, where permitted by law, Domestic Partners and Civil Union Partners




PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC          8
 Multi-Life Discount Programs

Four Program Options:
1. Employer-Paid*; Simplified Underwriting Program - 10% Discount
2. Employer-Paid*; Modified Underwriting Program - 5% Discount
3. Voluntary-Paid; Simplified Underwriting Program - 5% Discount
4. Voluntary-Paid; Modified Underwriting Program - 5% Discount


                        The discount program must be selected
                            during the case review process
                                Discounts may vary by state.

   *Employer may pay full or partial premium, however minimum contribution levels may apply


   PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC           9
Participation Minimums

Two Participation Categories:
•     3 – 9 life segment
•     10+ life segment (No reduction of commission)




    PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   10
    Participation Minimums

Modified Underwriting Programs:               Simplified Underwriting Programs:
•    Voluntary or employer-paid:              •   Voluntary:
     –   At least 3 insured lives (all             –   At least 10 insured lives (all
         eligibles) must be received by                eligibles) must be received by
         MetLife within 12 months of                   MetLife within 90 days of case
         case approval                                 approval (3-9 life segment not
                                                       available)
                                              •   Employer-paid:
                                                   –   At least 3 insured lives
                                                       (employer-paid, employees) must
                                                       be received by MetLife within 90
                                                       days of case approval



     PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   11
    Multi-Life Discount Programs

If the employer chooses a:
• Modified Underwriting Program
   – All eligible applicants must meet the Modified Underwriting
     requirements
   – Preferred Health discount is available to any qualified, approved
     applicant
   – Household discounts available to any qualified, approved applicant
   – All features and options are available with Modified Underwriting




  PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   12
     Multi-Life Discount Programs

If the employer chooses a:
• Simplified Underwriting Program:
   – Employees and employer-paid spouses, age 65 and younger, may
     apply by meeting Simplified Underwriting requirements*
   – All other eligible applicants must meet Modified Underwriting
     requirements
   – Preferred Health discount is NOT available to any applicants within
     the group
   – Household discounts are available to any qualified, approved
     applicant
   – Benefit limitations apply

  * Employee must meet actively at work requirement, and apply during initial enrollment period. Spouses must be
               employer-paid and apply during initial enrollment period. Benefit limitations apply.

  PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                                 13
Multi-Life Discount Programs

Executive Carve-Out Programs:
• LTCI is a discriminatory plan which allows the employer
  to make contributions towards the premium of a select
  class of employees; the remaining employees will have
  access to the discount program on a voluntary basis.
      For example:
      1. The employer agrees to pay the LTCI premium for the 5 executives
          (executive carve-out); and
      2. The remaining 25 employees are offered the same discount on a
          voluntary basis.

 Note: There may be ERISA implications depending on how LTCI policies are
 made available to the employees. Employers should consult their own tax
 and legal advisors for further information on potential ERISA implications.

  PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   14
 Modified Underwriting Requirements

 • Available to:                            Requirement* Ages
    – All eligible participants             Multi-Life Application - All applicants
                                            ―Modified Questions‖
    – Medical questions similar to          completed
      individual sales                      Attending Physician’s    Applicants age 66-84
    – Age ranges for requirements           Statement (APS)

      more lenient than individual          Phone Health             Applicants age 66-69
                                            Interview (PHI)
      sales
                                            Face-to-Face Nurse       Applicants age 70-84
                                            Interview
                                            *All requirements may be deemed necessary
                                            by Underwriter, if applicant’s health warrants it.




PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                 15
   Simplified Underwriting Requirements
• Available to:
  – Employees age 65 and younger actively at
    work (& spouses/domestic partners 65 and
    younger if premium paid by employer)
      •   Must be applying during initial 90-day
                                                         Requirement                Ages
          enrollment period
      •   Must be applying for coverage within benefit   Multi-Life Application -   Employees age 18-65
          limitations (see below)                        5 ―Simplified
  – All other applicants must meet Modified              Questions‖ completed
    Underwriting Requirements
                                                         Multi-Life Application -   Employer-paid spouses
• Simplified Underwriting                                6 ―Simplified              age 18-65
                                                         Questions‖ completed
  Maximum Benefits*:
  – VIP2: 5 year benefit period, $300 DBA
  – LifeStage Advantage:
      •   $6k MBA/$300k TBA (Simple Advantage)
      •   $9k MBA/$500k TBA (Custom Advantage)
  – All other benefits available
  * State variations may apply

  PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                          16
Modified Vs Simplified Underwriting
What to Choose?
     Simplified Underwriting                            Modified Underwriting
Pros:                                               Pros:
+      5 Insurability Questions for eligible        +   Fewer medical questions than standard non-
       employees                                        Multi-Life policy underwriting
+      Ease of enrollment                           +   Preferred Health Discount available
+      Employer-paid spouses eligible if group is
       set-up in the 10+ life segment               +   More benefit options available



Cons:                                               Cons:
-      Preferred Health Discount not available to   -   Additional underwriting may be considered
       anyone in group                                  (phone and face-to-face interviews) for
-      Benefit limitations                              applicants under age 66, if their health
                                                        warrants it
-      Limited to 90-day enrollment period
                                                    -   Longer underwriting process
                                                    -   Potential for more declines




    PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                 17
Available LTCI Discounts
  • Spousal/Domestic Partners
      – 30% when two spouses apply and are approved for coverage

  • Marital
      – 15% when only one spouse applies or both apply but only one
      receives coverage

  • Residential
      – 15% when two or more applicants reside in the same household and
      meet eligibility requirements

  • Preferred Health
      – 10% for applicants who meet specific underwriting criteria and are
      not part of a Simplified Underwriting Multi-Life Program


Note: Spousal/Marital/Residential discounts may vary by state and may not be combined


   PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC     18
Sample Discount Combinations

                               Modified Underwriting:
   Voluntary or ER Paid Multi-Life 5% + 30% Spousal/Domestic
              Partner + 10% Preferred Health = 45%
    Voluntary or ER Paid Multi-Life 5% + 15% Marital/Domestic
              Partner + 10% Preferred Health = 30%
                              Simplified Underwriting:
 ER Paid Multi-Life 10% + 30% Spousal/Domestic Partner = 40%
  ER Paid Multi-Life 10% + 15% Marital/Domestic Partner = 25%
 Voluntary Multi-Life 5% + 30% Spousal/Domestic Partner = 35%
  Voluntary Multi-Life 5% + 15% Marital/Domestic Partner = 20%
  Note Spousal/Marital discounts may vary and be limited by state
PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   19
      Multi-Life Billing
Choice of Billing Options
1)     Direct Billing
       –     Available to: all eligibles
       –     Monthly (Automatic Checking Account Deduction), Quarterly, Semi-Annual or Annual
             basis
       –     Bills are mailed directly to the insured unless it is a Monthly direct bill, which is only
             available as an Automatic Checking Account Deduction
2)     3rd Party Billing
       –     Available to: all eligibles
       –     Bills are mailed to a third-party payor selected on the application on a Quarterly, Semi-
             Annual or Annual basis
3)     Employer List Billing
       –     Available to: employee & their spouse only
       –     Monthly statement sent to Employer or Payroll Vendor
       –     Cash with application not acceptable
4)     [Split Billing]
       –     [Available to: employee & their spouse only]



     PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                     20
 ERISA and Employer-Sponsored Plans

The Employee Retirement Income Security Act (ERISA)
• Enacted in 1974
• Employer must specify to carrier whether the LTCI Plan they
  make available to their employees is considered an ERISA or
  non-ERISA plan
• If employer requests, please provide a copy of the ERISA
  Monograph, which includes a sample Summary Plan
  Description (SPD).
   – Ask your Multi-Life Program Advisor for a copy

      Please refer your client/prospect to consult with
      their tax/legal advisor to determine ERISA status
  PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   21
         LTCI Taxation Summary
                                                                                          C-Corporation                 S-Corporation
Under certain Internal Revenue
Code (IRC) sections, such as                                Business Tax                  100% of total premiums 100% of total premiums
§7702(B), tax qualified (TQ) LTCI                           Deduction                     paid                   paid
policies may receive favorable tax                          Personal Tax                  None                          Owners of more than
treatment. For example, benefits                            Deductions to                                               2% stock can deduct
received from an employer-paid                              Owner(s)*                                                   100% of ―eligible‖
TQ LTCI policy are generally non-                                                                                       premiums paid for
taxable to the employee, and the                                                                                        themselves, their
employer-paid LTCI premiums for                                                                                         spouses and qualified
employees may be tax deductible                                                                                         dependents on their
to the employer.                                                                                                        personal tax returns
                                                            Income Tax to                 Generally None                Generally None
                                                            Employee’s
 * No deduction allowed on coverage                         (premiums paid by
 for the owner, spouse or dependents                        employer)
 if the owner is eligible to participate in
 any other employer-subsidized                              Income Tax to                 Generally None                Must declare premiums
 (wholly or partially-paid) plan                            Owner(s)                                                    paid on behalf of
                                                                                                                        themselves, their
 including that of a spouse’s employer
                                                                                                                        spouses and
                                                                                                                        dependents as income

Employers should consult their own tax and legal advisors. The IRS Tax Codes that reference this summary are as follows: 104(a)(3), 162(l),
213(d), 7702B(a), 7702B(a)(3), 7702B(d)(2), Rev. Proc. 206-53
       PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                                                       22
         LTCI Taxation Summary (Continued)
                                  Partnership                   Sole Proprietor

    Business Tax                  100% of total premiums paid 100% of total premiums
    Deduction                                                 paid

    Personal Tax                  Partners can deduct 100%      The owner can deduct               * No deduction allowed on coverage
                                  of ―eligible‖ premiums paid   100% of ―eligible‖ premiums
    Deductions to                                                                                  for the owner, spouse or dependents
                                  for themselves, their         paid for themselves, their
    Owner(s)*                                                                                      if the owner is eligible to participate in
                                  spouses and qualified         spouses and qualified
                                  dependents on their           dependents on their                any other employer-subsidized
                                  personal tax returns          personal tax returns               (wholly or partially-paid) plan
                                                                                                   including that of a spouse’s employer

    Income Tax to                 Generally None                Generally None
    Employee’s
    (premiums paid by
    employer)
    Income Tax to                 Must declare premiums paid    Must declare premiums paid
    Owner(s)                      on behalf of themselves,      on behalf of themselves,
                                  their spouses and             their spouses and
                                  dependents as income          dependents as income




Employers should consult their own tax and legal advisors. The IRS Tax Codes that reference this summary are as follows: 104(a)(3), 162(l),
213(d), 7702B(a), 7702B(a)(3), 7702B(d)(2), Rev. Proc. 206-53
       PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC                                                       23
Important to know

• Portable: Discount and coverage stays with employee if they leave
  the company

• No linkage required: Employee does not have to apply for family
  members to be eligible

• Employer-Paid: Partial or full payment acceptable & must be paid by
  employer (minimum contribution levels may apply)

• Exclusivity: Producer owns the rights to the discount for the group




   PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   24
The Trend: Sizes of Companies Offering LTCI

                      8%                                     1-100 employees
           4%
   9%                                                        101-500 employees
                                                             501-1,000 employees
                                                             1,000-5,000 employees
                                                             5,001-10,000 employees
                                                             10,000+ employees
                                                53%       Source: HIAA ILTC Survey, 2002.
  12%
                12%
            ―By the end of 2001, more than 4,700 employers
               were offering a Long-Term Care Insurance
               plan to their employees, retirees or both.‖

            – HIAA. Long-Term Care Insurance in 2000-2001, January 2003.
 PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC           25
Preferred LTCI Multi-Life Business Characteristics
            Recommended                              Not Recommended
 • Small, closely held businesses (25 –      • Building & trade contractors
   3,000 employees), including:              • Charitable organizations
    – Law & Accounting Firms                 • Warehouse workers
    – Banks & Financial Institutions
                                             • Unions
    – School Districts
                                             • Seasonal employees
    – Technology Companies
    – Carve-out employee groups              • Foodservice workers
                                             • No or little employer support
 • Employer interest & support
                                             • Unrealistic enrollment timeline
 • Stand alone offering
                                             • Complex plan design/requests
 • Few locations
                                             • Multiple carriers involved
 • Stable Industry                           • Multiple locations for enrollment
 • Employee average age >40 yrs
 • Employee income >$50,000

  PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   26
Recommended Business Types
• Small closely held/family businesses for
  executive carve-out cases
• Medical practices, healthcare
• Educational
• Financial, accounting and insurance
• Law firms
• Technology firms

PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   27
  Keys to Successful LTCI Plan Participation

• Employer support
• Simple plan design – 3 plan variations
• Strong marketing communications strategy that
  includes preliminary needs awareness building
  – Enrollment implementation with 8-11 employee communication
    touch points

• Sufficient lead time for implementation
  – 60 – 90 days




 PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   28
 Importance of Employer Support

• Employers help create multiple employee touch-points and
  can provide you with employee access:
   – Enforce mandatory seminars and one-on-one LTC educational
     meetings either during or after business hours
       • Meetings after business hours will allow eligible family members to
         attend
   – Assist with distribution of materials
       • E-mail and home address lists
   – Provide a designated employer point-of-Contact
   – Ability to facilitate payroll deduction, if list bill



PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   29
When Are LTCI Offerings Not Successful?
 • Lack of producer access to employees during pre-
   awareness campaign, program launch and enrollment
 • Too many voluntary offerings competing for the same
   employee dollar
 • Majority of employee population is under age 40 years
   with an annual salary below $50,000
 • Unrealistic implementation timeframe
 • Unclear need or low interest for LTCI
 • Complex plan design with too many choices


PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   30
 Multi-Life Sales Support

• Multi-Life Program Advisor
     – Responsible for group set-up
     – Communicates with
       Producer/GA

• LTCI Wholesaler Team
     – Training/Education
     – Marketing strategies

• LTCI Resource Line
     – Program Overview/ General
       Assistance
     – Quotes/Proposals


PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   31
Multi-Life Program Advisor

• Actively manage inbound Multi-Life calls
• Owns case from beginning to end
• Responsible for:
    – Agent consultation: process/rules/options
    – Illustration support
    – Group review/approval
    – Implementation meeting*
    – Follow up & feedback
*Implementation meetings are mandatory for cases that are set up on a list bill




  PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   32
 Multi-Life Approval Process
Step #1 MGA/Producer to send qualification form(s) to MetLife
   – We will review group within 1-2 business days
   – Applications should never be taken at this stage

Step #2 MetLife to send offer letter to MGA/Producer
   – Authorized officer from organization to sign offer letter and return to
     producer
   – Producer to provide signed letter to MetLife

Step #3 Formal approval
   – MetLife will assign the Multi-Life Group number
   – MetLife will inform the MGA/Producer of correct applications to use
   – MGA/Producer can begin to market discount and enrollments


  PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   33
     Quotes & Proposals
            Quote/Illustration                                   Proposal
• Available on MetWINS                            • Used for bidding situations or
                                                    when employer wants detail
• Introduction Illustration
                                                    on MetLife and the LTC
     – Side by side of 3 plan designs for
                                                    offering
       ages 18-84
     – Suitable for any group interested          • Must be pre-qualified
       in our pricing
                                                  • Prepared by Multi-Life
• Summary Illustration                              coordinator
     – Detailed quote for each employee
                                                  • Customized for employer
       within group
     – Suitable for employer paid                 • E-mailed to producer
       situations
•    Multi-Life Web-site

    PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   34
 Additional Information Sheets

 • Handout Material
     – Multi-Life Underwriting Program Overview
     – ERISA Monograph
     – Identifying Prospective Companies Sheet




PRODUCER OR BROKER/DEALER TRAINING USE ONLY — NOT TO BE USED WITH GENERAL PUBLIC   35
QUESTIONS?

								
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