Transcript Document

Why you should Sell Prudential
LTC3
IFS-A148588 Ed. 06/2008
For Financial Professional Use Only – Not for distribution to the general public.
Key Features and Benefits that
make Prudential’s LTC3 the
Product you Want to Sell
For Financial Professional Use Only – Not for distribution to the general public.
2
LTC3SM: Philosophy & Purpose
 Offer our consumers a product with
• STRENGTH of Company
• FLEXIBILITY: Choice on how they want to be
paid at time of claim
• FOCUS: on the problem
• VALUE: Key Features that are Built-In
For Financial Professional Use Only – Not for distribution to the general public.
3
LTC3:
Product Features
Issue Ages: 18-79
Daily Benefit: $50-$500
Benefit Periods: 2,3,4,5,6,10 & lifetime
Calendar Elimination Period:
30, 60, 90, 120, 180, 365
120, 180 & 365 N/A in some states
Home Health Care: 50%, 75%, 100%, 150% of
facility daily benefit
For Financial Professional Use Only – Not for distribution to the general public.
4
LTC3: Calendar Day Elimination Period
 Built-In
 Begins from date chronic illness or disability is
certified by licensed health care practitioner
 Services not required to “trigger” and/or satisfy
elimination period
 Can receive care from family member during EP
 Elimination period days are:
• Cumulative
• Need to be met only once per lifetime
For Financial Professional Use Only – Not for distribution to the general public.
5
How Does the Competition Measure Up?
PRUDENTIAL
LTC3SM
Calendar Day
Elimination
Period
Included in
base policy.
Waiver of Home
Care Elimination
Period Rider is
available – cost
ranges from 4% 12% more.
Available with 30,
60, and 90 day
Elimination
Periods.
JOHN HANCOCK
CUSTOM CARE II
ENHANCED
GENWORTH
PRIVILEGED
CHOICE 2007
“1=7” Service Day
Elimination Period
model is included in
base policy.
Waiver of Home
Care Elimination
Period Rider is
available – cost is 9%
more. Only available
with 30, 60, and 90
day Elimination
Periods.
Calendar Day
Elimination Period is
not available.
“1=1” Service Day
Elimination Period
model for Facility
Care is included in
base policy.
Waiver of Home
Care Elimination
Period is included in
base policy.
Calendar Day
Elimination Period is
not available.
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
6
METLIFE
VIP2 IDEAL
“1=7” Service Day
Elimination Period
model is included in
base policy.
Calendar Day EP is
available as a rider –
cost is 7% more.
Waiver of Home Care
Elimination Period
Rider is also available
– cost is 17% more.
LTC3: Cash Solutions
Three “Cash” Solutions to offer your clients based on their
personal & financial needs:
1. Cash Alternative Feature (built-in)
2. Cash Benefit Optional Rider (“CBO”)
3. Flex Cash Benefit Optional Rider (“50/50”)
Prudential does NOT sell an LTC policy
that doesn’t have a Cash Benefit in it!
For Financial Professional Use Only – Not for distribution to the general public.
7
LTC3: Cash Alternative
Client becomes eligible for benefits
 At claim time choose Reimbursement for eligible
charges up to 100% of Home Care Daily Benefit
OR
 Receive 40%* of Home Care Daily Benefit in
Cash (remaining 60% of benefit stays in
“pool of benefits” to be used later)
*In CA, 50% of HHC DBA
Choice of reimbursement or cash can be made at end of each
month
Choice of
For Financial Professional Use Only – Not for distribution to the general public.
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Cash Alternative Example
$ 4,500 monthly benefit= $4,500 reimbursement
Or
$1,800 cash
You decide at the end of each month
For Financial Professional Use Only – Not for distribution to the general public.
9
How Does the Competition Measure Up?
Cash
Alternative
Benefit
PRUDENTIAL LTC3SM
JOHN HANCOCK
CUSTOM CARE 2
EENAHNCED
GENWORTH
PRIVILEGED
CHOICE 2007
METLIFE
IDEAL 2
Included in Base Policy
No Equivalent
No Equivalent
No Equivalent
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
10
LTC3:
50-50 Flexible Cash Benefit Option
 Cash Benefit = 50% of client’s Home Care Daily
Benefit x number of days in month
• Amount paid whether or not charges are
incurred
• No proof of charges or submission of bills is
necessary – just a claim form to fill out
 Remaining 50% is paid for reimbursement of
eligible charges in the same calendar month
your client receives cash portion
For Financial Professional Use Only – Not for distribution to the general public.
11
9
LTC3: 100% Cash Benefit Option
 100% of monthly benefit is paid in cash
 Provides greatest level of flexibility
 No receipts, no bills, no proof of services
 Adds about 70% to the Premium
Example: $150 DBM with 100% HHC
$150 x 30 days = $4,500 monthly benefit
$4,500 paid in cash each month
For Financial Professional Use Only – Not for distribution to the general public.
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14
How Does the Competition Measure Up?
PRUDENTIAL LTC3SM
50% Flex Cash
Benefit
Available as a Rider.
Clients will receive 50% of the
Monthly Home Care Benefit in
cash and the remaining 50%
can be used toward
reimbursable expenses.
Total of both benefits cannot
exceed 100% of the Home Care
Daily Benefit times the number
of days in the month.
100% Cash
Benefit
Available as a Rider.
100% of Monthly Home Care
Benefit is paid in cash
regardless of type or amount of
expenses incurred.
JOHN HANCOCK
CUSTOM CARE
II ENHANCED
GENWORTH
PRIVILEGED
CHOICE 2007
METLIFE
VIP2 IDEAL
Additional Cash
Benefit Rider.
Adds an extra
15% in cash to
policyholder's
benefit. Does not
reduce Lifetime
Maximum. Cost is
10% more.
No Equivalent
No Equivalent
No Equivalent
No Equivalent, but
the MetLife Value 2
plan has a rider that
converts it into a
100% indemnity
plan.
No Equivalent
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
13
Cash: Sales Ideas
 Help “professional” clients overcome the gap of their
catastrophic disability coverage
• i.e. physicians & attorneys, Sales Execs
 Coverage for someone who does not earn an income,
such as stay-at-home parents
 Assist paying for services on an “uninsured” spouse at
time the “insured” spouse goes on claim
 Provides coverage outside the U.S.
 Offer cash-enhanced policy to clients with
reimbursement policy
For Financial Professional Use Only – Not for distribution to the general public.
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16
LTC3:
Home Care Daily Benefit (HCB)
Percent Of Facility Care Daily Benefit
50%, 75%, 100%, *150%
Services Covered
- Adult Day Care
- Homemaker Services
- Personal Care
- Home Health Care
*Not available with Cash Benefit Rider, Flexible Cash Rider or Unlimited Lifetime Maximum.
The 150% Home Care Daily Benefit Option can only be selected with a Facility Daily Benefit of
$350 or less.
For Financial Professional Use Only – Not for distribution to the general public.
15
Prudential’s 150% Home Care w/Lower
Nursing Home Facility Daily Benefit (FDB)
 Most Companies - $210/Day w/100% Home Care
• Policy with $210/Day and 100% Home Care provides
up to $210 for Confined Care and $210 for Home
Care
 With Prudential LTC3 you can also choose $210/Day
w/100% Home Care; OR
 LOWER THE PREMIUM by selecting $140/Day w/150%
Home Care
• LTC3 Policy $140/Day and 150% HHC provides up to
$140 for Confined Care and $210 for Home Care
For Financial Professional Use Only – Not for distribution to the general public.
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Cash Alternative Benefit and 150% HHC
Get even more out of the Cash Alternative Benefit
by utilizing the 150%* Home Care Daily Benefit
option
Facility Daily
Benefit = $200
With 150% Home
Care = $300
X 30 days in a
month = $9,000
Monthly cash amount when electing
Cash Alternative Benefit (40%**) = $3,600
*The 150% Home Care Daily Benefit Option can only be selected with a Facility Daily Benefit of $350 or less.
** In CA, 50% of HHC DBA
For Financial Professional Use Only – Not for distribution to the general public.
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How Does the Competition Measure Up?
PRUDENTIAL
LTC3SM
150% Home Care
Daily Benefit
Rider
Available as a
Rider
JOHN HANCOCK
CUSTOM CARE II
ENHANCED
GENWORTH
PRIVILEGED
CHOICE 2007
METLIFE
VIP2 IDEAL
No Equivalent
No Equivalent
No Equivalent
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
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Direct Payments to All Independent
Home Care Professionals
 Home health aides, registered nurses,
licensed practical nurses, etc. qualify for
Direct Payment without agency
involvement.
 All licensed family members also qualify
for Direct Payment.
For Financial Professional Use Only – Not for distribution to the general public.
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Family as Caregivers
 Licensed family members (including
live-in spouses) are not excluded from
being paid for their services in any LTC
care setting.
 Unlicensed family members may be
paid under the built-in Cash Alternative
Benefit or either of the two Cash Benefit
options.
For Financial Professional Use Only – Not for distribution to the general public.
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How Does the Competition Measure Up?
Family as
Caregivers
PRUDENTIAL
LTC3SM
JOHN HANCOCK
CUSTOM CARE II
ENHANCED
GENWORTH
PRIVILEGED
CHOICE 2007
Live-in spouses are
not excluded. All
licensed family
members may be
paid directly by
Prudential where
allowed by law.
Live-in spouses are
excluded. Other
family members must
be licensed, work for
another entity, and
cannot be paid
directly by the carrier.
Live-in spouses are
excluded. Other family
members must be
licensed, work for
another entity, and
cannot be paid directly
by the carrier.
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
21
METLIFE
VIP2 IDEAL
Excluded, except to
supply Supportive
Services benefit at 1 X
Home Care Daily
Benefit per month.
LTC3SM: Waiver of Elimination Period
for Home Care Option



What is it?
• Waives Calendar Day Elimination Period (EP) for reimbursable Home Care
services
How does it work?
• Policyholder receives policy benefits that reimburse covered Home Care
expenses without having to satisfy the Elimination Period – paid from day one
• Days that are waived (Home Care services are received and benefits are
paid) count toward satisfying EP for Cash Alternative benefits (and other
policy benefits)
• Where is it available: CO, NV, GA, KS, OR, WI, AK, DC, IL, IA, MN, MS, NE,
ND, RI, SC, AL, AR, CT, ID, ME, MI, MO, NH, OH, SD, WV, WY
Considerations
• Cannot be used with 120, 180, and 365 Day EPs
• EP must still be satisfied to access Cash Alternative and Facility benefits and
for premiums to be waived under the Waiver of Premium feature
For Financial Professional Use Only – Not for distribution to the general public.
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Prudential LTC3
Restoration of Benefits
 Included in Policy – not an option
 If a previously eligible client is assessed and
found to no longer have chronic illness or
disability, and status is maintained for six
consecutive months, restoration of benefits can
restore to full lifetime maximum
 Consideration
• Can be 1 ADL deficient and still restore benefits
• Benefits can only be restored once in a lifetime
For Financial Professional Use Only – Not for distribution to the general public.
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Prudential LTC3
Restoration of Benefits
 Companies are now charging significantly
higher premiums for Unlimited Benefit
Period policies
 More LTC policies being sold with BPs
that are shorter than unlimited
 Clients concerned about using up benefits
with an early claim (accident, stroke, etc.)
 Advances in Medicine & Technology
For Financial Professional Use Only – Not for distribution to the general public.
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How Does the Competition Measure Up?
PRUDENTIAL
LTC3SM
Restoration
of Benefits
Included in
base policy. Limited
to
one-time use.
JOHN HANCOCK
CUSTOM CARE II
ENHANCED
GENWORTH
PRIVILEGED
CHOICE 2007
METLIFE
VIP2 IDEAL
Available as a rider –
cost is 4% more.
Some benefit
restrictions apply.
Limited to one-time
use.
Available as a rider –
cost ranges from 6%
to 10% more.
No limits as to
number of times.
Available as a rider –
cost ranges from 2% to
8% more.
No limits as to number
of times.
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
25
Home Support Services
 This essential built-in component (50 X Facility
Daily Benefit) now covers durable medical
equipment, home modifications, assistive
devices, caregiver training, emergency
response systems, and transportation services
for medically necessary health care included in
the Plan of Care.
 Unlike some of our competitors, these expenses
can be incurred in addition to qualified LTC
expenses without regard to daily or monthly
maximums.
For Financial Professional Use Only – Not for distribution to the general public.
26
How Does the Competition Measure Up?
PRUDENTIAL
LTC3SM
Home
Support
Services
Home Support Services
- 50 X Facility Daily
Benefit – Reduces
Lifetime Maximum –
Includes funds for
durable medical
equipment, home
modifications, assistive
devices, caregiver
training, emergency
response systems, and
transportation services
for medically necessary
health care included in
the Plan of Care. Can
be paid in addition to
qualified long term
care expenses.
JOHN HANCOCK
CUSTOM CARE
II ENHANCED
Stay at Home
Benefit - 30 X
Home Care Daily
Benefit - Does not
reduce Lifetime
Maximum Includes funds for
home
modifications,
durable medical
equipment, home
safety checks,
caregiver training,
provider care
checks, and
medical alert
systems.
GENWORTH
PRIVILEGED
CHOICE 2007
2 X Monthly
Maximum For
equipment.
Caregiver
training = 20%
of monthly
maximum.
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
27
METLIFE
VIP2 IDEAL
Transition Expense Benefit - 15
X Daily Benefit - Reduces
Lifetime Maximum - Covers
prescription drugs, durable
medical equipment, home
modifications, and emergency
response systems. Cannot be
paid in addition to qualified
LTC reimbursements on any
given day. With Calendar Day
E.P. Rider or Waiver of Home
Care E.P. Rider, amount is
increased to 50 X Daily Benefit.
Caregiver Training is 5 X Daily
Benefit.
Private Care Consultant (built-in)
 Independent Care Management: Advises client
and family
 No Elimination Period
 Additional Annual Pool: 20X Facility Benefit
 No Reduction in Lifetime Maximum Benefit
For Financial Professional Use Only – Not for distribution to the general public.
28
How Does the Competition
Measure Up?
PRUDENTIAL
LTC3SM
Private Care
Consultant
Included. Acts as an
advocate for the
insured. Licensed
Practitioner, not
associated with
Prudential, develops
Plan of Care,
arranges for delivery
of services, provides
counseling and
education, and
monitors services.
Paid up to 20 X FDB
annually. Does not
reduce Lifetime
Maximum.
JOHN HANCOCK
CUSTOM CARE II
ENHANCED
GENWORTH
PRIVILEGED CHOICE
2007
Included. Care
Advisory Services
will assist in
determining care
and treatment plan.
Paid up to
10 X DB or 1/3 MB
annually. Does not
reduce Lifetime
Maximum.
Included. Optional
Privileged Care
Coordinator assesses need,
develops plan of care, helps
choose and monitor care.
If recommended PCC is
used, EP for facilities is
reduced by number of days
home care is received, and
premiums are waived while
receiving home care. If
recommended PCC is not
used, client loses HHC
waiver of premium and
facility EP is not reduced
by number of days client
receives home care. Does
not reduce Lifetime
Maximum.
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
29
METLIFE
VIP2 IDEAL
Needs
Assessment
Benefit - Paid to
a Lifetime
Maximum of
$275. Ongoing
Care Advisory
Services is Paid
as Home Care
and Reduces the
Lifetime
Maximum.
LTC3SM: Inflation Protection Options




NONE
Guaranteed Purchase Option
Automatic 5% Simple Inflation Benefit
Automatic 5% Compound Inflation Benefit –
2x Maximum
 Automatic 5% Compound Inflation Benefit –
No Maximum
 Automatic 3% Compound Inflation Benefit –
No Maximum
For Financial Professional Use Only – Not for distribution to the general public.
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LTC3SM: Guaranteed Purchase Option
(GPO)
 What is it?
• Increases will occur automatically every 3 years unless the offer
is refused in writing (negative election)
• Benefits will increase by 5% of the current policy benefit amount,
compounded annually over the 3 year period only; “catch-up” no
longer offered
• No evidence of insurability is required
• Increased coverage is rated at insured’s attained age
• Increases made even if insured is benefit eligible or on claim
• Offers continue as long as policy in-force even if premium waived
 Considerations
• Cannot be purchased with 10 Pay or Paid Up At Age 65, Premium
Reduction at Age 65, Joint or Survivor Waiver of Premiums, or
Shared Care
For Financial Professional Use Only – Not for distribution to the general public.
31
LTC3SM Inflation Options
Premium & Benefit Comparison
Prudential
LTC3 Inflation
Option
Annual
Premium
Policy Daily
Benefit Amt at
Age 85
Policy Total
Max. Benefit
Age 85
3% Compound
$1,346
$364
$664,463
5% Compound
No max
$1,816
$648
$1,183,132
5% Simple
$1,381
$375
$684,375
5% Compound
2X Max
$1,290
$300
$547,500
NW Rates (ME) – Age 55 Annual Premiums, $150/Day, 100% HHC, 90 EP, 5 yr. Benefit Period
($273,750 TLB at issue), Standard 1 rates, 2-Spouse Discount - For illustrative purposes only
For Financial Professional Use Only – Not for distribution to the general public.
32
How Does the Competition Measure Up?
PRUDENTIAL
LTC3SM
Guaranteed
Purchase
Option
(GPO)
Can be selected as an
inflation option. Negative
Election – Benefits increase
at the end of every third
policy year unless prior
notice of rejection has been
received. No limit to the
number of rejections. Future
increases will continue as
scheduled. At the end of
every third policy year,
increases in the remaining
FDB, HCDB, and Lifetime
Maximum Benefit will be
made at a rate of 5%
compounded annually.
Amounts are
rounded. Increases continue
even if the insured is on
claim while the Waiver of
Premium feature has been
activated.
JOHN HANCOCK
CUSTOM CARE II
ENHANCED
Can be selected as an inflation
option. At the end of every
third policy year, insured has a
choice of increasing FDB,
HCDB, and Lifetime Maximum
Benefit by either 5%, 10%, or
15% of the original benefit
amounts. Benefit increases will
be rounded to the nearest dollar.
No underwriting is necessary,
and premium increases will be
at attained age. No offer will be
extended if the insured has had
any benefits paid under his/her
policy during the two year
period prior to the option date,
or if the option date occurs on
or after the insured’s 91st
birthday. Taking the above
into consideration, out-ofpocket expenses for care
could be significantly higher
than Prudential’s.
GENWORTH
PRIVILEGED
CHOICE 2007
Not available.
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
33
METLIFE
VIP2 IDEAL
Can be selected as an inflation
option. Referred to as Future
Purchase Option. Negative
Election - Benefits increase each
year unless prior notice of
rejection has been received.
Increase will be at least 5% of
remaining FDB, HCDB, and
Lifetime Maximum Benefit. No
underwriting is necessary, and
premium increases will be at
attained age. No increase if
insured is benefit eligible on the
day the increase is scheduled to
take effect. No further automatic
increases (unless resumption of
same is requested in writing by the
insured) if the insured rejects two
consecutive increases. Taking the
above into consideration, out-ofpocket expenses for care could
be significantly higher than
Prudential’s.
Partner Discounts*
30% for 2 insured & 15% for 1 insured
 One-year relationship window is one of
the shortest in the industry.
 Where allowed by law, no partner
combination (i.e., same-sex, motherdaughter, brother-sister, etc.) is excluded
from receiving this discount.
* Discounts may vary by state.
For Financial Professional Use Only – Not for distribution to the general public.
34
How Does the Competition Measure Up?
PRUDENTIAL
LTC3SM
JOHN HANCOCK
CUSTOM CARE II
ENHANCED
GENWORTH
PRIVILEGED
CHOICE 2007
METLIFE
VIP2 IDEAL
Married Partner Discounts*
2 Apply - 2 Insured,
2 Apply - 1 Insured,
1 Apply - 1 Insured
30 / 15 / 15
30 / 15 / 15
40 / 25 / 0
30 / 15 / 15
Unmarried Partner
Discounts*
2 Apply - 2 Insured,
2 Apply - 1 Insured,
1 Apply - 1 Insured
30 / 15 / 15
30 / 15 / 15
40 / 25 / 0
15 / 0 / 0
Unmarried Relationship
Time Restrictions*
1 Year
Committed
Relationship
3 Years
3 Year Committed
Relationship
No required
relationship
window
None
Must be unmarried.
Cannot be different
generations of the same
family.
Cannot be different
generations of the
same family.
Unmarried Relationship
Restrictions*
* Discounts and restrictions may vary by state.
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
35
LTC3SM: Premium Payment Options
 Lifetime
• Premiums are paid until waived or policy ends or lapses
 Premium Reduction at Age 65
• Premiums reduced by 50% at age 65
• Available to ages 60 or younger
 10 Year Paid Up
• Premiums paid for 10 years
• Available to ages 40 - 75
 Paid Up at Age 65
• Premiums paid until age 65
• Available to ages 54 and under
For Financial Professional Use Only – Not for distribution to the general public.
36
Premium Sweet Spots
 Monthly Payment Mode premiums can be less
expensive than those of our major competitors
(only 2% more than Annual when electronic
funds transfer is chosen).
 6-year benefit period is approximately 5% more
than 5-year benefit period.
 150% Home Health Care Rider is only 12%
more than 100% Home Health Care.
 Shared Care is approximately 7-10% for 4-10
benefit years.
For Financial Professional Use Only – Not for distribution to the general public.
37
Premium Sweet Spots (continued)
 With John Hancock’s and Genworth’s refreshed
pricing* (i.e., price increase on new business),
premiums are now comparable to those of
Prudential.
 The built-in benefits of the Prudential policy
should be able to overcome most any price
differential.
 When we incorporate monthly payment mode,
often times Prudential’s premium is lower than
that of our competitors.
*Refreshed pricing pertains to John Hancock Custom Care II Enhanced and Genworth Privileged Choice 2007 plans, among others.
For Financial Professional Use Only – Not for distribution to the general public.
38
How Does the Competition Measure Up?
Monthly Payment Mode
Percentage Over Annual
PRUDENTIAL
LTC3SM
JOHN HANCOCK
CUSTOM CARE II
ENHANCED
GENWORTH
PRIVILEGED
CHOICE 2007
METLIFE
VIP2 IDEAL
2% more when
EFT is chosen.
8% more when
EFT is chosen.
8% more when
EFT is chosen.
8% more when
EFT is chosen.
8% more if List
Bill for Multi-Life
is chosen.
Source: LTC Advisor (StrateCision Benefit Comparison Software), current as of September 2008
For Financial Professional Use Only – Not for distribution to the general public.
39
NEW IN 2009! Employer Sponsored Program
(ESP) Highlights
 NEW: Age Requirements for simplified Underwriting 18-65
 NEW: Minimum participation requirement for Simplified Issue
• 7 to 200 employees (7 employees must be issued)
• 201 size groups and more (4% of eligible employees must be
issued)
 NEW: Participation requirement parameters
• “100% of class” no longer required
• Spouses/partner will not count toward participation requirement
 NEW: Discounts
• 5% discount to employees and spouse/partner
• 5% discount to family members*
• aunts,
Nouncles,
maximum
on discounts
* Parents, in-laws,
siblings, grandparents,
grandparents in-law, and children ages 18 and older.
For Financial Professional Use Only – Not for distribution to the general public.
40
NEW IN 2009! Employer Sponsored Program (ESP)
Highlights
 NEW: Employer Sponsored Groups of 2-6
Employees
• Full Underwriting – Simplified issue not available to
Employees or Spouses/Partners
• 5% ESP Discount
• If applicant qualifies for Preferred Rates, Preferred
Rates will be in addition to (NOT in lieu of) 5% ESP
Discount
• No minimum participation requirements
• Requirements for case approval: Similar to Affiliation
Discount Program
For Financial Professional Use Only – Not for distribution to the general public.
41
Affiliation/Association Program
Highlights
 Qualification
• Association formed for common purpose*
• Businesses may also qualify for discount**
 Participation requirement
• NONE
 Program Features
• 5% discount for members & extended family
• Full underwriting
• Unlimited benefits and riders available
*Other than to buy insurance. Other restrictions may apply. **May not be used in combination with ESP.
For Financial Professional Use Only – Not for distribution to the general public.
42
23
Finding the Right
Associations
•
•
•
•
•
•
•
•
•
•
Religious Organizations
Medical/Health Associations
Alumni Associations
Universities & Colleges
Target Market Associations (Women’s Business
Group)
Bank Customers
Homeowners Association
Local Chambers of Commerce
Credit Unions
Condominium Associations
For Financial Professional Use Only – Not for distribution to the general public.
43
Loyalty Discount Program
 Program Features
• 5% discount
• Full underwriting
• All benefits, riders, and marital/partner discounts
are available
• Discount will not be removed if policyholder
lapses/terminates current Life or Annuity
contracts
• Compensation Reduction applies
 Available in ALL States except:
• CA, OR, NV, UT, MN, KY, WV, NY and NJ
For Financial Professional Use Only – Not for distribution to the general public.
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How to Request the Discount
 Complete the Plan Design page on the
application
 Under the Affiliation section, write in
discount code “00618”
 Next to Affiliation name, write in
“Loyalty” and the client’s Life Policy # or
Annuity Contract #
For Financial Professional Use Only – Not for distribution to the general public.
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LTC3SM: Exclusions*
1.
Illness, treatment or medical conditions arising out of:
a)
b)
2.
3.
4.
5.
6.
7.
War or an act of war
Participation in a Felony, riot or insurrection, or
Alcoholism and drug addiction
Treatment provided in a government facility
Charges for services or supplies normally provided without charge.
Charges for care or treatment provided outside the United States except
as described in the International Coverage benefit
Charges for expenses reimbursable under Medicare or for expenses that
would be reimbursable under Medicare but for the application of a
deductible or coinsurance amount
Benefits under your policy may be reduced if Prudential also pays
benefits for Eligible Charges under any other Prudential Individual LongTerm Care Insurance Policy
*Summary is for descriptive purposes only. All provisions are subject to the language of the actual policy, including the
definitions, terms, conditions and exclusions set forth in the policy and may vary by state.
For Financial Professional Use Only – Not for distribution to the general public.
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