NationwideFixed Universal Life

with Long Term Care RiderBy Pat Hodous

Regional Vice President

Victor’s personal notes, not verified by Pat

Background

• Access death benefit earlier• As long as it is licensed long term care• Indemnity only. No receipts needed• 2 out of 6 activities of daily living• 90 days• $8400/month HIPPA limit (current). Keep up pace with

inflation• Can go to Reno• Cared by family members• As easy as possible• Nationwide has the rider over 10 years

Benefits

• Pay benefits outside of US

• China: licensed doctor, US embassy. One time deal.

• Any case? Don’t know.

• Recertification: short term position, need recertification. Very old, not going to get better, no recertification. Can we? Yes. Are we? No.

Rider vs. Standalone

• Different from standalone policy: they try to eliminate payouts. That’s how they stay in business

• We just pay you your guaranteed benefit a few years earlier

Drawbacks

• You have fixed amount. You could out live your pool of money

• No cost of living adjustment

• You can “forecast” your needs and buy sufficient protection

• Cost of living adjustment is expensive

Underwriting

• Turned in not good policy• The more up front you tell the better chance you get it• Call underwriter in advance• Ex: procedure a couple years ago. What’s the follow up.

If they never do follow up, you won’t get it• If you say a year ago, you forgot the follow up.

Underwrite will suggest not turning in the policy. Do follow up first

• Tell underwriter, the LTC is the key. Without it, you won’t get it. The Underwriter will tell you about the possibility of getting it

Underwriter

• Underwriter’s job is not to there to decline the case. They are there to find ways to issue the case

• Explain special situation on cover letter. Ex. Ironman training

Sales Ideas

• Standalone LTC is like auto insurance• People hate to pay something they hope

they don’t use it• People need to see the value before they

pull out the money• This product: one way or the other,

somebody is going to use it: either my son gets it, or I use it, or we both get benefit from it

LTC increase

• Standalone LTC policy (PERS), they raise the price, up 30% from 95 to 2005?

• Standalone LTC can raise the price, just like medical

• This can’t because it is a life insurance contract

• The age of people buying LTC is continuously going down

Insurance

• Anything about life insurance is simply leverage• Free long term care benefit for your client• Question: when’s the last time you looked at

your life insurance policy? Do you have old cash value life insurance policy

• There is one company spending millions $$ asking people reviewing their insurance policies: GEICO

• Get their policy. Let Pat do the job

True Story

• 67 walked into the Wachovia office• 3 old policy: 480K• No need for cash value. Wants to maximize death policy• $274K cash value• Introduce LTC• $700K coverage + $700K LTC till age 120• The adviser: commission from Wachovia : $35K• Client is so happy (in Sacramento). Give 1M for

management• There is no sale. The sale is done 15 years ago

Research

• LIMRA

• 1997 research for rich people: when comes to life insurance, what gets you?

• 2:1 life insurance combined with LTC

• Rich people love to spend somebody else’s money

Wealth Transfer

• Wealth transfer

• Mom have money in account

• Mom needs money for emergency

• Put that money in LTC

Find more assets

• 65 years old woman• $200K in CD, safe, secured• Split it ½ / ½ to Nationwide• $100K turns into $306K death benefit + $306K

for LTC• Now you get her $200K into $306K• The other $100K is for her to use• $306 for the family will turn into another sales for

you. The family may have never seen such amount of money

Find more assets

• 71 old woman

• 100K in annuity. Not going to use it. Leave for kids

• NY Life agent: Increase it: 100K -> 170K

• Ask other: I can do better. 270K. Indemnity vs. reimbursement