Barry Fisher & Susan BlaisBarry J. Fisher/Paradigm Insurance Marketing

5425 Farralone Avenue Suite 101 – Woodland Hills, California(818) 883-8700www.bjfim.com

What’s new at Paradigm Insurance Marketing◦ Who and what is Paradigm Insurance Marketing 2012◦ How does this helps you?

Report on NAHU Cap Conference and where PPACA stands today◦ How does long-term care insurance fit into the picture?

California long-term care insurance market◦ Current reality and future

Genworth + BJFIM/Paradigm @www.bjfim.com =◦ Life insurance made easy Genworth Colony Term/UL sales take-off with Life Jacket & LQR

Principal disability income, simplified issue, and tele-app makes selling non-can DI easier than ever

Comments, quotes, quips & queries

And it should be the law:

If you use the word

"paradigm" without

knowing what the

dictionary says it means,

you go to jail. No

exceptions.David JonesRealtime Worlds

Creator “Grand Theft Auto”Creator “Crackdown” Xbox 360

Scottish Video Game Entrepreneur

par'a-digm or par"a-dig-mat'ic◦ a pattern, example, or model◦ exemplary

Webster's Deluxe Unabridged Dictionary 2nd Ed.

Related words◦ archetype, beau ideal, chart,

criterion, exemplar, ideal,

mirror, model, original, pattern,

prototype, sample, standard

Established in 1996◦ Barry J. Fisher Insurance Marketing, Inc.

Offices in Woodland Hills & Paso Robles◦ Barry J. Fisher, LTCP – Life, health and LTCi since 1976◦ Susan M. Blais, LTCP joins BJFIM/Paradigm 2006 Health insurance industry sales/marketing/operations executive 1982 -2005

◦ American Capital Security Corp -- Encino Paul Kaplan, CLU – Life and disability income since 1964

J.H. Tackett/Paradigm Insurance Marketing – 2010 – Hanford, CA◦ Jeffrey Tackett

IPS/Paradigm Insurance Marketing – 2011 – Simi Valley, CA◦ Michael Sandfrey, CLU, LUTCF – Disability

Republic Marketing Group, Inc. (2003) – New Braunfels, TX◦ America’s Long-Term Care Insurance Experts Barry Fisher – stockholder & principal

Big enough to access to all individual life, LTCi and DI markets at top levels with highly specialized expertise in vital product areas

Paradigm offices work with a broad range of brokers & advisors◦ Traditional life, health, property casualty and financial advisors

Excel at the integration of “non-core” products to any agent’s insurance offering

Paradigm agencies work independently and jointly to provide brokers valuable information and actionable sales ideas that work◦ Product, marketing, sales, continuing education

Behind the scenes and direct sales support◦ Product information, proposal prep, web-based and in-person presentations

Impaired risk underwriting expertise

Backroom support, ongoing case status updates

Family owned & locally operated businesses◦ Generally our working relationship with agents is principal to principal

Agents always have top level access to agency principals Highly trained and motivated marketing and support staff

My first time attendance in a number of years◦ Currently serve on Legislative Council Chairman of the LTC Advisory Committee

NAHU is primary agent association advocating on importance of our role in the health insurance process◦ Developed significant access in Congress Bi-Partisan support and sponsorship in House & Senate for

legislation to remove agent compensation from MLR◦ Ongoing meetings with Health & Human Services on issues

ranging from Exchanges to overall implementation

CLASS expected to be voted out of existence by House this week◦ Big concern is where do we go from here? LTCi is A & H product that structurally behaves like life insurance

We need to insulate LTCi from the vagaries of PPACA regulation

Political atmosphere in D.C. is toxic◦ Expect more gridlock – which may be a good thing◦ A “PPACA” by any other name! Dems call it ACA GOP calls it PPACA

Never call it Obamacare!

Debates as to what SCOTUS decision will mean

Members of NAHU (CAHU) – feel good about decision◦ If you’re not a member join and sell medical insurance you

need to consider membership PPACA impacts us all!

Contribute to CAHU-PAC & HUPAC◦ Access to legislators of all stripes is essential

I’ve been saying for more than a year that there’s no time like the present to discuss long-term care planning with your clients◦ The products are not getting cheaper◦ Your clients are not getting any younger or healthier

I’ve been telegraphing for almost a year that a significant “rate refresh” and potential product changes was on the way from Prudential

2011 was a great year for us (and many of you!) but it isn’t clear that you aggressively took this message out to your clients

THE PARTY IS NOW ALMOST OVER!

Prudential’s temporary suspension of LTC3 sales, IN CALIFORNIA ONLY, does not indicate a problem with long-term care insurance in the big picture◦ Nor does it necessarily point to a lack of resolve on the part of

Prudential to be in this market

This decision by Prudential illustrates a DOI that does not value a variety of properly designed and priced LTCi products for consumers to choose from◦ Every other state has approved Prudential’s rate/product

refresh requests in timely fashion

This is a good business decision by Prudential on behalf of policyholders in the current California block of business◦ Time remains for smart agents and consumers to consider

Prudential LTC3 as their risk management planning tool

Competitively priced in the 50-65 year-old market◦ Couples discount if only one applies

50% cash alternative benefit is attractive to some particularly if international coverage is an issue

150% home care benefit

Calendar day elimination period

Simplified-issue (multi-life) for groups of 10+◦ Spouses eligible with proof of employment

Don’t wait for a “new & improved” LTC3◦ Base rate increase of 18%◦ Compound inflation benefit rate increase of 40% or more◦ No cash alternative benefit

Individual Applications◦ Must be in the BJFIM Woodland Hills office by February 24 Apps must be scrubbed and in the home office by February 29

Multi-life Applications◦ Employer applications must be in the BJFIM Woodland Hills

office by February 24 Must be transmitted to home office by February 29 60-days from the date of the group approval for applications to

be received at the home office

Find Prudential’s official announcement and submission rules at www.bjfim.com Important Announcement tab Or contact your BJFIM/Paradigm marketing representative

Genworth◦ Low-cost leader for the time being◦ Great benefits and reputation◦ New product has been filed in California with significantly higher premiums

American General◦ Simplified product design and competitive at 3% CIP◦ 40% Cash alternative benefit◦ “Drop-ticket” application process

United of Omaha◦ Competitive at the older ages◦ Underwriting flexibility

John Hancock◦ New product release end of February – stay tuned

Transamerica◦ Multi-life (simplified underwriting) at 15 lives

LifeSecure◦ Still waiting on CA DOI for premium OK◦ Simplified product design◦ Multi-life (simplified underwriting) at 3 lives

Fastest growing segment of “LTC” world according to LIMRA◦ $775 million to $2 billion + -- 2010 to 2011◦ Mostly single premium life products GNW TLC and LNF MoneyGuard

◦ New variations on linked theme are developing

TLC or MG are for older affluent consumer who’s said “no” to traditional LTCi◦ What if I never need long-term care?◦ Reposition “rainy-day” money

Annual premium UL and term life, DI and CI products are designed for consumers who want their premium dollars to “multi-task”

Genworth TLC Webcast with Ken Herlihy February 22nd

◦ Mark your calendars!

Mass Middle

Market

Ages 35+

Premium $ Must

Multi-Task

What Can We Do ToAppeal To More

Consumers?WHY?

• There’s lots of ‘emout there

• They need help the most

• The social safety net is collapsing

50-year low in life insurance ownership

Consumer interest is at a 50-year HIGH

Mid-market profile – 42% of population◦ $50,000 to $250,000 annual income◦ Less than $1,000,000 assets

40% of these people recognize that they are underinsured◦ #1 Underserved market segment for life insurance

Average age of life insurance agents = 58◦ Market belongs to non-traditional life insurance

producers Financial advisors, property/casualty/health agents,

community banks

40% of married households are uninsured

69% of single adults with children are uninsured

33% of those who own life insurance purchased their policy over 10 years ago

60% who own life insurance said they wanted to meet with their advisor at least once per year

77% indicated that they would like to spend an hour or less in their annual review

88% of consumer indicated that an online needs analysis calculator would be helpful in the purchase process◦ 77% say they’ve never used one to determine LI need

73% who performed a LI needs analysis went on to purchase a policy◦ Verses 49% who did not do a needs analysis

Good News! We have these tools for agents TODAY!

BJFIM/Paradigm has top-level access to ALL life insurance products in the independent distribution channel◦ Check-out our multi-company Term Life Quote Engine

Genworth has a complete mid-market package with:◦ Competitive & flexible Colony Term /UL life product series◦ “LifeJacket” SM training, marketing and sales tools Online life insurance training modules “Let’s-Talk” online needs analysis tool Marketing letters, brochures, postcards

Turn-key life insurance sales success

◦ Life Quick Request (online drop-ticket) application & fulfillment process The fastest, easiest and most profitable way to sell term life with NO commission

reduction

Accessed at www.bjfim.com, Life Insurance Made Easy tab

GNW is Fortune 500 publically traded with heritage dating back to 1871◦ NOT OWNED BY GE Capital◦ Formerly First Colony Life, Life of Virginia, AMEX Life (LTC)◦ $100 billion + in assets◦ 6,500 employees worldwide◦ 15 million customers

Genworth is an industry leader in competitively priced term life◦ Outstanding products◦ Outstanding training and support◦ Life Quick Request (drop-ticket) technology will make you more profitable

Ratings◦ A -- A.M. Best◦ A – Standard & Poors◦ A2 – Moody’s◦ A- -- Fitch◦ 380 Risk Based Capital (2011 2Q Est.)

ColonySM Term UL Advantage Guaranteed Death Benefit of Secondary UL Insurance

Guaranteed premiums for 10, 15, 20 or 30 yearsVery competitive with term

New Life Long UL

Flexible premium payments,including single-pay, short-pay, 1035 Exchange

Premium to extend coverage can be known and guaranteedwhen the policy is issued

Affordability and Flexibility

Flexibility of Universal Life Insurance

Affordability of Term Life Insurance

BJIFM/Paradigm SurveyMales & Females Ages 35, 45, 55 (Nearest)

$500,000 Death Benefit PNS Rates10, 15, 20 & 30 YT

Lowest Cost – 3 times

Second Lowest Cost – 12 times

Third Lowest Cost – 6 times

Fourth Lowest Cost – 3 timesPremium differential between ranking often as little as $1Premium differential will vary by actual age or nearest age

Rate class due to underwriting considerationsSurvey includes more than 15 companies -- Independent Distribution

This is a BJFIM/Paradigm ComparisonFor Agent Use Only

Allows you or an assistant to start the life insurance application process with Genworth Financial

Fastest, easiest most profitable way to sell high quality term life insurance in any agency

Generally takes less than 15 minutes to:◦ Calculate the client’s appropriate

premium◦ Provide GNW with basic client info

GNW & BJFIM do the rest!

What Is Life Quick Request?

Agent or assistantinputs basic client informationon our website

Genworth FulfillmentCenter &Completes application

A Streamlined Application ProcessSo You Can Sell More!

Agentreceivesfull commissions

Agent delivers the policy

to clients

Life Quick Request is not a new product. It’s a faster, easier more profitable way to process Colony Term UL & LifeLong UL applications

•Contacts customer within 24 hours •Completes application through a reflexive interview

(Parts I & II and signature)•Voice-signed HIPAA

• Orders APS, as needed•Flexible scheduling options for Paramedical exam

Scott (A Real Agent)Northern California

Health & Property Casualty Agent

After Dropping His First LQR Ticket Scott wrote:

“That was as easy as pie! Kurt just submitted his first and will be doing a second shortly. I have another one ready to go. Now my other 4 personal lines CSR's are all signed up for their life license course and jumping at the chance to write some life insurance. Funny how that works with a good tool.

January 20, 2012

Sell high quality, competitive life insurance from the comfort of your office

Go from quote to “drop-ticket” seamlessly◦ From BJFIM website to Genworth

Quicker processing◦ Most cases processed 12-days faster

Quicker commissions◦ Faster processing means faster $$$$

Better placement◦ Ratios improved by 8%

Full case control◦ BJFIM/Paradigm office provides full case management

Fewer requirements◦ Reflexive scripting results in fewer APSs

2011 average LQR Ticket = $804/annual premium◦ LQR has increased the average term life premium!

First year commission to your agency◦ 10 YT = 75%◦ 15 YT = 85%◦ 20 YT = 95%◦ 30 YT = 95%◦ LL-UL = 80%

End of 2012 your “run-rate” @ 85% average= ◦ 5 paid lives per month = $41,000◦ 7 paid lives per month = $57,400◦ 12 paid lives per month = $98,400

You’ve helped your client and opened new possibilities

Processing costs are minimal with LQR

You don’t have to touch a piece of paper until the policy arrives from BJFIM/Paradigm

Michael SandfreyIndividual Disability Income

818-444-7738mike@paradigmins.com

Existing Clients◦ According to LIMRA 4 out of 5 Insurance BUYERS have never been

asked to buy disability income protection

People who need to leverage insurance dollars ◦ With products incorporating LTC benefits as well as DI their money

multi-tasks

Highly compensated employees with group plans◦ Typically those who are highly compensated and with incentive income

are discriminated against in most group plans

Companion sale with group LTD◦ Executive carve-out

Owners of small business not covered under their workman’s compensation policies

Ease◦ Principal Financial Group has developed the most producer friendly process in the industry◦ Healthy clients under the age of 50 and earning less than $150k per year can qualify for

$3,000 in monthly benefit ($5,000 for 3 or more lives)

Tele-App◦ Most DI applications can range between 30 and 50 pages◦ PFG’s tele-app is 4 pages and a few signatures◦ You gather some basic information and the home office does the rest

No APS◦ No waiting 60 days for Kaiser to send medical records

No Financials◦ What they state on the app is what is used

No Labs◦ No needles, no filling vials and no filling cups

Most decisions made in less than a week◦ Which means you get paid faster

Chronic Illness Benefit◦ Leverage dollars into double duty providing both DI and LTCi needs

1. Don’t stop what’s working for you now!

2. But ask “who is my customer and what else do they need?”

3. What new technologies will speed your success and make you more profitable?

4. Who do you need on your “survival team”?

Paradigm Insurance Marketing

Experience

Knowledge

Products

Technology That Works

Training

Support