Power of Numbers
LTCi Sales Opportunities in the Association and Multi-Life Markets
Presented by:
Brian M. Johnson, CLTC
Director, Business Development
National Long-Term Care Brokers, Ltd.
www.NLTCB.com
“Approach an ordinary activity in an
extraordinary way.”


Trend spotting
Association/Affinity Marketing
◦
◦
◦
◦

Where to find them
Gaining an endorsement
Marketing to members
Web meeting
Multi-Life Opportunities
◦ How to spot them
◦ Sales angles

Case studies
Agenda

… You engage, ask, listen and educate.

Demographics and personal experiences
are helping immensely with the “new
thinking” needed to effectively sell LTCi:
“Living a long life is a near-certainty.”
LTCi Sells Itself if…
Finding qualified prospects (planners) who
want to hear from us and trust us.
What is our true challenge?
“Unless your campaign has a big idea, it
will pass like a ship in the night.”
-David Ogilvy in Confessions of an Advertising Man.

Parallel with Phil Knight of Nike.
◦ Traditionally we market LTCi. Now we need to
use LTCi as our best marketing tool.
Your Marketing Hat






Demographics – Baby Boomer, Gen X and
Millennial.
Where do we get information?
Green initiative.
Cultural.
Health care reform.
Outside the financial services “bubble.”
◦ Other industries
◦ New markets
Be a Trend Spotter





Your clients
Your family and friends
Banks/credit unions
People you do business with
Employers
Put a (C)ustomer (R)elationship
(M)anagement system in place today!
Affinity Marketing

ASSOCIATIONS, UNIONS & SOCITIES
+
+
+
=
Pay dues
Have by-laws
In existence for 2+ years
Association Discount (LTCi and DI)
Members see value in paying dues
 Planners by nature
 Trust their professional membership
organizations

Where else?

In 2004, it was estimated that there were
1.8 million professional associations in our
country.
Community coordination is at the heart of
all associations.
Associations are competing for members.
They need to attract and retain members.
“Non-dues revenue” is music to their ears.
-ASAE and the Center for Association Leadership. www.ASAEcenter.org




Associations
5-10% Discount for Members and Family
ACCESS to the membership.
You’re pre-screened; a resource for them,
not a sales person.
 Be where the members are:



◦
◦
◦
◦

E-newsletter, web-meetings, pod-casts, blogs
Speaking engagements
Conferences
Direct mail, sponsorships
Co-brand yourself with the Association.
True Power

Ask your current clients.
◦ Mutual client method.





Ask your friends and family.
Ask the people you do business with.
What leisure activities do you enjoy?
Internet and yellow pages.
Walk on in!

Talk to the executive director or member
benefits. Retention and non-dues revenue.
Where to find them?
The need for Long-Term Care doesn’t
discriminate by age, race, income or
profession.
 Your interests? Have fun while you work!


Preference would be for associations
where members are business owners or
shareholders in corporations.
Best Associations
Every discipline in medicine, law and
accounting have separate associations.
 Restaurant, Library, Music,
Entertainment/Sports, Drivers, Dry
Cleaning, Plumbers, Finance…


All of these people need advice and have
questions. One of the first places they
turn to is their membership organizations.
Examples


Utilize health care reform and CLASS. Be a
resource and educate.
Get your client’s employer’s information and
contact person whenever possible.
◦ Go back to current clients. Explain the possibility of
a discount. Mutual client.

Every prospect or client you speak to may be
the key to a multi-life case.
◦ Employer paid and voluntary, family plans
◦ Underwriting concessions and discounts

Your client’s CPA. Mutual client.
Multi-Life: Start Today
Leverage Association endorsements with
new prospects, especially if he/she is a
business owner or shareholder in a
company.
 Only after the need for LTCi is established
should we talk about a multi-life discount
and tax benefits.

◦ Reference the CLTC Tax Guide

You’re bringing true value to the client by
going a step further. Simple suggestion.
Multi-Life: New Prospects
Chiropractor inquired through the state
association about individual LTCi for
himself and spouse (ages 61 and 57).
 Shareholder in P.C.


First agent proposed:
◦ NYS Partnership Total Asset 50, $250/day, 3Year BP, 5% Compound, 90-Day EP
◦ Joint annual Life premium = $4,352.91
Case Study: Chiropractor


An extra step. We proposed:
Paying premiums through the P.C.
◦

100% of the actual premium is deductible as an ordinary business expense for all employee shareholders,
regardless of percentage of ownership. IRC 162(a). The company can also deduct 100% of premiums paid for an
employee’s spouse and the couple’s tax dependents, whether or not they are considered employees. IRC162(1),
162(1)(2)(C), 213(d)
Shareholder and spouse also purchased (ages 45
and 44).
◦ NYS Partnership Total Asset 50, $250/day, 3-Year BP, 5%
Compound, 90-Day EP
◦ 10-Pay premium (61 and 57) = $9,955.27
◦ 10-Pay premium (45 and 44) = $9,261.12

Had their CPA sign off on the plan. Helps
reinforce the planning and sets the stage for
referrals.
Case Study: Chiropractor
Broker gained endorsement of statewide
rehabilitation association.
 Membership consists of 300+
rehabilitation facilities. Average facility
employs 250 people.
 Broker marketed to the membership using
the association’s e-newsletter and doing
an insert in their hard copy newsletter.
 First wave of marketing yielded 3 inquiries
from HR managers.

Case Study: Rehab Facility






Enrolled 1 out of 3 in the first 4 months of
receiving the inquiry.
1,000 employee facility. Not for profit. Wanted
100% voluntary.
They received a 5% premium allowance and
simplified underwriting.
Broker conducted series of workshops, email
education and one mailing to the homes.
Yielded 88 lives for a total premium of ~
$82,000.
Broker is now in discussion with the group about
taking over the 403b; currently has $16,000,000
in assets in the plan.
Case Study: Rehab Facility




Radiologist inquired about individual LTCi
through her county medical society for
herself and spouse.
Broker established need for LTCi and then
discussed tax advantages of paying the
premium through a company.
Radiologist was one of 7 shareholders in a
P.C. Broker presented to all shareholders at
their monthly business meeting.
Case yielded 13 lives, all 10-Pays, for a total
of ~ $92,000 in premium.
Case Study: Radiologist

Keep your eye out for trends and get creative
with marketing.
◦ Co-branding, web-meeting, podcasts, blogs


Focus on associations where members are
business owners or shareholders in
corporations.
Leverage association endorsements to open
the door to multi-life cases.
◦ Leverage your clients’ relationships with their CPA’s.

Explore new markets.
In Summary