catch the genworth linked benefit wave - aaltci · concept producers recommend in blind study 7 out...
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For [Agent/]Producer Use Only. Not to be reproduced or shown to the public.©2011 Genworth Financial, Inc. All rights reserved.
Catch The Genworth Linked Benefit Wave
Producer’s Summit
April 2, 2011
116346B 03/22/11
Linked Benefit Market Growth•$ Millions, Gross Premiums
375
458524
775
2006 2007 2008 2009
Independent Agents
Financial Planners
Career
14%
22%
34%
27% CAGR
B-D’sFinancial
Institutions
12%
18%
The Genworth Financial Companies’ Linked Benefit Submitted Premium Growth In 2010 : 124%
Source: LIMRA & Management Estimates as of August 2010. Sales Includes Universal Life (UL) and Whole Life Insurance Linked Benefit Products. Distribution Splits Include UL, Whole Life and Variable Life.
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 20111
Total Living Coverage® (TLC) – What Is It?
A life insurance product that combines
the full features and benefits of universal life insurance
and long term care insurance (both benefits are tax-free*).
*Life insurance death benefits are generally tax-free.
TLC Is Designed To Be There When NeededCatch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 20112
Total Living Coverage® (TLC) Overview
Typical Value Example Simple StepsDetermine Initial Premium (Minimum Face Amount of $50,000)
Decide On Optional Inflation Protection (0% Thru 5% Compound)
Determine Length Of LTC Coverage (4 Years To Lifetime, Majority of Cases)
1
2
3
$100,000$200,000
$600,000
InitialPremium
Death BenefitApplied For
Long TermCare Pool
15 Year Guaranteed Optional Return of Premium
Plus Residual Death Benefit
Can Grow with Inflation Protection
Note: Average case portrayed
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 20113
Total Living Coverage® HighlightsRobust LTCI Benefits ProtectionFlexibilityBased on Our Industry Leading LTCI product, Privileged Choice ®
• 15-Year Return Of Premium (ROP)
• Ability To Issue To Substandard Lives
• Higher Placement Rates With Full Underwriting
Better Protection For Customer And Their Beneficiaries
• 0-Day EP on Home Care (73%)
• Informal Caregivers (45%)
• Privileged Care® Coordination Services
• Offer Lifetime Benefits, International Coverage, Caregiver Training, Supportive Equipment, Respite Care, and Bed Reservation
• Preferred Health & Couples Discount
Strong Guarantees With More Lives Issued
• 13-23% Greater Guaranteed LTC & Death Benefits To Age 89
• 13-23% Greater Current LTC & Death Benefits for Life
• 10% Residual Death Benefit
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 20114
Total Living Coverage® Process
Submit Application Underwriting Issue
Express Application
• 1 Page Ticket• Required Forms• Genworth calls
consumer to complete application
• Advisor controls process
• Required Forms
• Medical requirements gathered by Genworth
• Decision rendered
Standard Application
• ~30 Days to issue• Advisor delivers
policy
Full Underwriting Process Issues More Policies
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 20115
Total Living Coverage® vs CompetitorHow We Win
Better Leverage– Provide 13-23% more guaranteed
LTC & death benefits through attained age 89*
– After age 89, benefits are generally at parity on guaranteed basis
– Provides 13-23% more LTC and death benefits in all years based on current rates and charges
Better Protection– Allow Medicare expenses to satisfy
90 day facility elimination period– Waive all charges while on LTC
claim– Offer informal caregiver coverage
Stronger Sales Support
Guaranteed Value Example $ Thousands
Death Benefit (DB)
LTC Pool
(Male) Attained
AgeTLC Competi
torTLC Competi
tor
% TLC Greater for LTC & DB
65 $186 $143 $559 $429 30%
85 $186 $143 $559 $429 30%
86+* $149 $143 $446 $429 4%
The chart shown is based on research conducted by the Genworth Financial companies. To the best of our knowledge, the competitive information is current and believed to be accurate as of 2/28/11. The Genworth Financial companies are not affiliated with the other company shown.
Comparisons based on Male, Preferred, Couples discount, $100,000 initial premium, 2-year Accelerated Benefit Rider (ABR) period, 4-year Extension of Benefits Rider (EBR) period, Return of Premium (ROP), no inflation. For both companies, values assume no loans, withdrawals or long term care claims have been made. No premium in addition to the initial premium is required for either company’s guaranteed values.
*95% of our LTCI claims are prior to age 89 as of 12/31/2010.
Total Living Coverage® Provides Greater Value To ConsumersCatch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 20116
Market Research on UL-LTC PreferenceConcept Producers Recommend in Blind Study
7 Out Of 10 Producers Selected Total Living Coverage® In Blind Study
TLC
Leading Competitor
70%
30%
N=223 Producers
Shared :
• Process
• U/W Time
• DB & LTC Leverage
• Commissions
• Other
Note: Survey was done without company or product brand names by a 3rd party firm in Q1 2010
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 20117
What’s New for Total Living Coverage®?
– Simplified Consumer & Advisor Pieces– Competitive Comparison Pieces– More Case Studies– Trade Publication Advertising
Marketing
Improved Advisor Experience
– Streamlined Application– Enhanced Illustration
– Simplified Client Presentation Materials– Enhanced TLC Website– Subjects include: PPA, Sales (tips and
approaches), and Product/Process
Training
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 20118
You Make the CallWhich Long Term Care Planning Strategy Should You Use? The following table describes a variety of scenarios and explains which approach may work
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 20119
CT
ARAZ
CA DE
FL
GA
HI
ID
IN
KY
ME
MD
MI
MT
NCNM
OR
PA
SD
TX
VA
VT
UTNVCO
NE
WA NDMN
IL
MO
TN
MS AL
WV
OH
NY NH
NJRI
MA
AK
IL
DC
SC
KS
OK
WI
WY
Current TLC
Original TLC
Product Approved, But Not Yet Implemented
LA
TLC Approval Map
Note: As of 2/28/2011TLC is underwritten by Genworth Life Insurance Company, Richmond, Virginia.
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 201110
Appendix
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 201111
Important InformationTotal Living Coverage® is underwritten by Genworth Life Insurance Company, Richmond, VA. Total Living Coverage universal life insurance with long term care benefits is subject to Policy Form No. ULPLTCIPGLI (11/05) et al. and Rider Form Nos. ULRABRIPGLI (11/05) et al., ULREBRIPGLI (11/05) et al., ULRROPIPGLI (11/05) et al. and ULRGMBRIPGLI (11/05) et al. or ULRGMBRIPGLI (0709) et al. Policy, benefits and riders may not all be available in all states. Terms and conditions may vary by state.
For Genworth Life of New York, Total Living Coverage universal life insurance with nursing home and home care benefits is subject to the terms, issue limitations and conditions of Policy Form No. ULPLTCIPGLI NY (11/05) and Rider Form Nos. ULRABRIPGLI NY (07/09), ULREBRIPGLI NY (11/05), ULRTIIPGLI NY (11/05), ULRGMBRIPGLI NY (07/09) and ULRROPIPGLI NY (11/05). Available only in New York.
All guarantees are based on the claims-paying ability of the issuing insurance company.
Life insurance underwritten by
Genworth Life Insurance Company Richmond, VA
Genworth Life Insurance Company of New York New York, NYOnly Genworth Life of New York is admitted in and conducts business in New York.
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 201112
Important Information (continued)Long term care insurance underwritten by
Genworth Life Insurance Company
Genworth Life Insurance Company of New York Administrative Office: Richmond, VA
The Genworth Financial companies wrote this to help you understand the ideas discussed. Examples are hypothetical and used only to help you understand the ideas. They may not reflect your client's particular circumstances. For full information about products' features, benefits and limitations read the policy.
Covered long term care expenses may be paid for a longer or shorter period than the Benefit Period. Expenses may be paid for a longer period if the actual expenses paid are less than the Monthly Maximum. Expenses may be paid for a shorter period because some services, such as supportive equipment, caregiver training and bed reservation do not count toward the Monthly Maximum.
Gain accumulates tax-deferred until it is withdrawn. The taxable amount withdrawn from life insurance policies is subject to ordinary income tax.
A TLC policy may be treated as a Modified Endowment Contract (MEC). In that event, partial withdrawals (including loans which are treated as withdrawals) will be taxable to the extent of gain in the policy.
The taxable amount of MEC withdrawals and surrenders taken before age 59 1/2 will be subject to an additional 10% penalty tax, unless another exception applies.
Partial withdrawals from life insurance policies that are not treated as MECs are not taxable until the amount withdrawn exceeds the policy cost basis. A 10% penalty tax does not apply.
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 201113
Important Information (continued)Because TLC rider charges reduce cost basis (not below zero) it is possible for return of premium (ROP) rider benefits to be taxable.
Benefit payments made under a linked benefit policy for covered long term care services are income tax free. Monthly charges to pay for long term care insurance are not included in the gross income of the owner, but reduce the owner’s income tax basis (not below zero). No income tax deduction is available for these monthly charges.
The company has provided this information to help producers understand the ideas discussed. Any examples are hypothetical and are used only to help producers understand the concepts of this policy. What the company says about legal or tax matters is its understanding of current law, but the company is not offering legal or tax advice. Tax laws and IRS administrative positions may change. This material is not intended to be used by any taxpayer to avoid any IRS penalty. Your clients should consult independent tax and legal professionals for advice based on their particular circumstances. The tax information in this material has been written to assist in the marketing of our linked benefit products.This is a product summary, please refer to the policy form for complete information.
Genworth, Genworth Financial and the Genworth logo are registered service marks of Genworth Financial, Inc.
Catch the Genworth Linked Benefit WaveFor Agent/Producer Use Only. Not to be reproduced or shown to the public. April 2, 201114