the 3 P’s of voluntary GSICase Studies

For Producer use only. Not for use with clients.DI 1397 5-14

disclosures

• In approved states, Disability Income insurance (forms 4501NC, 4502GR and 4503BOE) is issued by Ameritas Life Insurance Corp. located at 5900 O Street, Lincoln, NE 68510. In New York, Disability Income insurance (forms 5501-NC, 5502-GR and 5503-BOE) is issued by Ameritas Life Insurance Corp. of New York located at 1350 Broadway, Suite 2201, New York, NY 10018. Policy and riders may vary and may not be available in all states.

• This information is provided by Ameritas®, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas®, visit ameritas.com.

• When implementing a GSI program, you should always advise your clients to speak with an attorney to determine if there are ERISA issues.

Ameritas® and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life® is a registered service mark of affiliate Ameritas Holding Company. © 2014 Ameritas Mutual Holding Company

For Producer use only. Not for use with clients.

what is Guaranteed Standard Issue (GSI) DI?

• Individual DI policies sold in worksite setting

• Premium and underwriting advantages

• Better disability policy compared to group LTD• Stronger provisions

• No offsets

• Individually owned

• Fully portable

• Higher income protection with GSI• LTD maximum benefit for highly compensated often not enough – reverse

discrimination

• GSI covers total compensation vs. base salary only (most LTD plans)

• LTD typically employer paid – benefits taxable

• Entrée to tremendous cross-sell opportunities

For Producer use only. Not for use with clients.

the 3 “p’s”

• Preparation

• Persistence

• Participation

For Producer use only. Not for use with clients.

prepare

• Success happens when preparation meets opportunity…be prepared

• Do your homework – learn everything possible about client

• Ask to receive…successful producers ask for all the information needed to develop multi-life case opportunities

For Producer use only. Not for use with clients.

persistence

• “Money grows on the tree of persistence” - Japanese Proverb

• A National Sales Executive Association survey* shows relation of sales to number of times prospect contacted:

• Two percent of sales made on 1st contact

• Three percent of sales made on 2nd contact

• Five percent of sales made on 3rd contact

• Ten percent of sales made on 4th contact

• Eighty percent of sales made on 5th – 12th contact

For Producer use only. Not for use with clients.

*Source: AA-ISP website. Retrieved 5/28/14 from http://www.aa-isp.org/inside-sales-answer.php?id=246

participation

• Set the stage early on:

• Plan design

• Income carve outs

• Minimum benefit amounts

• Cost

• Employee access

• HR support

For Producer use only. Not for use with clients.

participation

• Enrollment:

• Implementation check list

• When should you enroll?

• Communication plan

• Post-enrollment:

• Gathering statistics

• Setting the stage for next year (such as plans for additional employees to be added on, benefit increases, etc.)

For Producer use only. Not for use with clients.

maintenance

• Keep communication open with HR contact

• Soliciting new hires/newly eligible employees

• Renewal process – proactive and easy

• Increases to employees

• Plan changes

For Producer use only. Not for use with clients.

case study one

• Producer positioning

• In force group LTD broker

• Had written some life insurance policies for a few executives within the company

• Minimal Individual DI experience

• Distracted by competing priorities (such as medical insurance in-force and impending changes)

For Producer use only. Not for use with clients.

case study one

• Case overview• Privately held mortgage banking firm - 532 eligible

employees in 12 states

• Employer discontinued group LTD

• Offered core/buy up multi-life GSI plan• ER-pay core - $500 GSI / voluntary buy up - $5,000 GSI

• 73% - earned less than $100K

• 18% - earned between $100K - $200K

• 9% - earned $200K+

For Producer use only. Not for use with clients.

case study one

• Other Issues to Consider:

• Beginning of economic/housing market downturn

• Employees concerned about job security/cost of DI

• Limited producer involvement • Results:

• 365 employees enrolled for employer-pay core policy – (69% participation)

• $58,300 annual premium – employer-pay base

• Voluntary buy up offer withdrawn due to lack of interest/coordination

• Lay offs occurred as housing market worsened

• 75% of polices lapsed within next couple of years

• Multi-life GSI offer discontinued

For Producer use only. Not for use with clients.

name that case study

• Winner from the start

• Expectations not met

• Turnaround

For Producer use only. Not for use with clients.

case study two

• Producer positioning

• Sold “need” based on $5,000 LTD (base salary only)

• In force producer for all other employee benefits

• Secured strong HR support

For Producer use only. Not for use with clients.

case study two

• Case overview

• Pharmaceutical company - 97 eligible employees ($100K+)

• Located in 9 states

• Employer-paid group LTD - 60% to $5K (Base Salary only)

• 35 employees with < $50K base salary and significant commission and bonus income

• Supplemental offer of $6,000

For Producer use only. Not for use with clients.

case study two

• Two weeks into enrollment - results sluggish

• New course of action taken• Call with HR - sales reps/executives on the road

• Follow up phone calls made to every employee

• More robust e-mail campaign for those in the office

• Enrollment extension granted to allow for application collection

• Results• 34 employees enrolled

• 35% participation - $80K+ annual premium

• Lessons learned• Know your customer

• Persistence and follow up is key to success

For Producer use only. Not for use with clients.

name that case study

• Winner from the start

• Expectations not met

• Turnaround

For Producer use only. Not for use with clients.

case study three

• Producer positioning

• Experienced multi-life disability specialist

• Very influential in agency

• Persistency and follow up

For Producer use only. Not for use with clients.

case study three

• Case overview• Insurance Agency with 77 producers and eligible staff

• Voluntary LTD – 60% to $5,000 (Base salary only)

• Only 23% participated in LTD

• Supplemental offer of $5,000

• 50% of eligible earned > $100K

• Advantages for producers

• Commissions

• Life/conference credit

• DI/GSI credibility and first-hand experience

For Producer use only. Not for use with clients.

case study three

• Results• 71 employees applied for coverage

• 92% participation achieved

• $90,000+ supplemental GSI premium

• Renewal• GSI offer increased to $7,500 due to outstanding

participation

• 33 eligible for increase above $5,000

• $24,000 total renewal increase premium

For Producer use only. Not for use with clients.

name that case study

• Winner from the start

• Expectations not met

• Turnaround

For Producer use only. Not for use with clients.

quick recap

• Be prepared (for success) – know client

• Ask to receive – most favorable outcomes achieved with complete data/info

• Set the stage for success – winner from the start

• Persistency pays – be persistent and follow-up to create a turnaround!

• Beware of red flags to avoid “expectations not met” experience

For Producer use only. Not for use with clients.

questions?

For Producer use only. Not for use with clients.

upcoming DI teleuniversities

For Producer use only. Not for use with clients.

key contacts

• Your agency or brokerage manager

• Your Ameritas® sales development team

• Your GSI regional director

• The DI product management team

For Producer use only. Not for use with clients.