1. Leveraging SharedCare and FamilyCare
LTC Insurance Sales Concept of the Month John Hancock Long-Term Care Insurance A New Age in LTC
Leveraging SharedCare and FamilyCare
For Agent Training Only. Not for Use With the Public.
Long-Term Care Insurance is Underwritten by
John Hancock Life Insurance Company
Boston, MA 02117
LTC-VC3 03/04

2. SharedCare Introduced in 1994
SharedCare has been a hit with married/partnered couples
20% of John Hancock’s Custom Care sales for 2003 and 14.8% of Essential Care sales for 2003 include the rider
Cost is 5%-26% of the base premium, a good value
Expanded to 10 year BP with Custom Care II

3. SharedCare SharedCare
60 Day offer of a 2-year benefit plan for policyholder whose benefits are exhausted by partner
Not subject to underwriting, at attained age, prior to age 91
Available to policyholders with no claims in prior two years

4. SharedCare
Allows partners to access the benefits under the other’s policy once their own is exhausted
If either partner dies, survivors policy is automatically increased by remainder of deceased policy limit
Both partners must have rider and identical benefit options

5. Market for SharedCare Younger Partners Competing financial demands
Unable to afford individual plans that provide adequate coverage
Have looked in t LTCI and determined they can not afford it

6. SharedCare By joining policies, a couple can pool resources
Enhance their families overall level of protection
Removes “stress” from the sales process by providing more affordable, but adequate options

7. SharedCare – Case Study*
The Roberts - Couple age 55 and 53
Want a comprehensive plan of coverage
The average cost in their area is $140/day
Also concerned with continuing to save for retirement and pay college expenses for children
Have already looked into LTCI and feel they can not afford it.
* Hypothetical Example. Rates, options and availability vary by state.

8. Traditional Option A 2 individual policies
$140/day, Lifetime, 90-day EP with 5/5% Compounding
Total Premium = $5002
* Hypothetical Example. Rates, options and availability vary by state.

9. Questions you should ask
Is $140 adequate, or should I recommend more?
Are premium dollars being allocated correctly?
Would they be better of with a different plan…higher daily benefits, lower benefit period?
What about SharedCare?
* Hypothetical Example. Rates, options and availability vary by state.

10. SharedCare – New Thinking Option B
2 individual policies with SharedCare rider
$200/day, 10-Year, 90-day EP with 5/3% Compounding
Total Premium = $4,477
(annual savings of $525 over the Traditional Option A)
* Hypothetical Example. Rates, options and availability vary by state.

11. Annual Premium Savings = $525
What the client gains
Day 1 Coverage
$200/day vs $140
Combined pool of $1,460,000
Double coverage (up to $400/day) if care needed immediately due to accident
Year 20 Coverage
$507/day
Combined pool of $2,560,000
Annual Premium Savings = $525
* Hypothetical Example. Rates, options and availability vary by state.

12. SharedCare – New Thinking Option C
2 individual policies with SharedCare rider
$220/day, 5-Year, 90-day EP with 5/3% Compounding
Total Premium = $4,013
(annual savings of $990 over the Traditional Option A)
* Hypothetical Example. Rates, options and availability vary by state.

13. Annual Premium Savings = $990
What the client gains
Day 1 Coverage
$220/day vs $140
Combined pool of $803,000
Double coverage (up to $440/day) if care needed immediately due to accident
Year 20 Coverage
$558/day
Combined pool of $1.4M
Annual Premium Savings = $990
* Hypothetical Example. Rates, options and availability vary by state.

14. Option B vs. Option C Option B $200/day 10 year Benefit Period
90 day Elimination Period
5/3% Compounding
Total combined pool of $1.46M
Premium=$4,477
Option C
$220/day
5 year Benefit Period
90 day Elimination Period
5/3% Compounding
Total combined pool of $803,000
Premium=$4,013
* Hypothetical Example. Rates, options and availability vary by state.

15. Ask Yourself Which option is best for my clients?
Which plan helps them meet their overall financial goals while providing their family with an adequate level of protection?

16. Factors Determining Recomendation
Personal experience with a long term claim
Personal experience with extensive out of pocket due to fluctuations in the cost of care
Premium Savings

17. FamilyCare Benefit
Up to four family members can be covered under one LTC insurance policy. This multi-generational policy is available with the Custom Care Policy
This benefit gives the insured affordable coverage for themselves, their immediate family and extended family at the same time
The FamilyCare Benefit is not available in all states

18. FamilyCare Benefit Market
Partners
Highly price sensitive
Boomers concerned with Impact o their parents care
Mature prospects with concern for the “use it or loose it” aspect
Business owners

19. FamilyCare Benefit
Affordable way to pool coverage and protect multiple family members
Benefit bequethment feature
Helps younger partners get started on LTCI coverage

20. The Clarks
Ages 53 and 50
Getting started on LTC planning and understand the value of LTCI
Have heard about the SharedCare option and like the idea of sharing coverage to save money
Would rather put their money towards additional retirement savings, so are looking to spend as little as possible, but still have a degree coverage
Costs in their area average $120/day
* Hypothetical Example. Rates, options and availability vary by state.

21. Individual Policy, SharedCare & FamilyCare Rate Comparisons
One couple: Ages 53 and 50
90 Day Elimination Period, 5% Simple Inflation, $4,500 LTC Monthly Benefit, Standard Rates, Applicable Discounts
Individual Policies
2X: Six year individual policies
$1,260, $1,102
Total for all policies with discounts: $2,362
* Hypothetical Example. Rates, options and availability vary by state.

22. Individual Policy, SharedCare & FamilyCare Rate Comparisons
One couple: Ages 53 and 50
90 Day Elimination Period, 5% Simple Inflation, $4,500 LTC Monthly Benefit, Standard Rates, Applicable Discounts
SharedCare on both
Two 3 year individual policies with SharedCare Riders
$1,060, $950
Total for all policies with discounts: $2,010
Premiums reduced and unused benefits transferred to surviving partner upon death
* Hypothetical Example. Rates, options and availability vary by state.

23. Individual Policy, SharedCare & FamilyCare Rate Comparisons
One couple: Ages 53 and 50
90 Day Elimination Period, 5% Simple Inflation, $6,000 LTC Monthly Benefit, Standard Rates, Applicable Discounts
FamilyCare Benefit
One policyholder with one additional applicant w/ 5 year benefit
Premium: $1,890
Premiums reduced and unused benefits transferred to surviving insured upon death
* Hypothetical Example. Rates, options and availability vary by state.

24. Leveraging SharedCare and FamilyCare
LTC Insurance Sales Concept of the Month John Hancock Long-Term Care Insurance A New Age in LTC
Leveraging SharedCare and FamilyCare
For Agent Training Only. Not for Use With the Public.
Long-Term Care Insurance is Underwritten by
John Hancock Life Insurance Company
Boston, MA 02117