Long Term Care Business Planning Webinar

1. Long Term Care Business Planning Webinar • LTC Business Planning Webinar • January 30, 2013 • D. Corey Rieck, MBA, CLTC • On Behalf of CLTC

2. LTC Business Planning Webinar 2013

3. Introduction of Corey Rieck • CLTC Instructor since 2003 • Has taught 3,500 advisors and insurance professionals from San Francisco to Wall Street how to properly position LTC to their clients through the CLTC organization.

4. “We are what we repeatedly do. Excellence then, is not an act, but a habit.” • ---Aristotle

5. What is your 2013 Business Plan?

6. Business Plan Key Metrics: • (How you did in the prior year on these issues will be helpful for future forecasting/targeting) • Revenue targets • Top Line • Bottom Line • Activity targets • Number of Paid Cases • How are you improving, every day? • Keeping informed on industry matters • Who you do business with • Key Budgeting Matters • Compartmentalizing your day • Solution by Instrument • 1. Asset Based LTC • 2. Traditional Health Based LTC

7. What we will achieve today in this webinar: • 2012 Reflection….How did you do? • Did you write down your goals? • What were Your key measurables? • 2013….what do you want? • 2014?, 2015? • Assess and harness your activity • Create potential sources of LTC business • Identify the key LTCI Metrics • Learning how to best leverage your CLTC education and support • Generate and evaluate referrals • Evaluate Wholesale vs. Retail Business • Address Business Planning Issues and Relevant Expenditures • Ideas for written 2013 Business Plan

8. 2012 LTC Reflection: • Did you achieve your goals? • Did you write them down? • What were they? • If there was deviation, what did you attribute it to? • What did you measure? • What time frames did you measure? • How much business by carrier did you place? • What kind of business did you place? • Where did the business come from? • Did you make any adjustments during the year? • If so, what were the outcome(s)? • What will you do differently in 2013?

9. “Do not confuse activity with achievement.” • -John Wooden

10. Activity does affect achievement.

11. Isn’t most everyone a prospect for Long Term Care Education?

12. Kids have parents • Parents have parents • You know people • Your personal inventory • Individuals • Businesses • LTC Application Nuggets

13. Because of this, command of the LTC market is key.

14. ACTIVITY SCHEDULE: • Do you do the same things at the same time every day?: • Reading Relevant Materials 6:45 a.m.---7:30 a.m. • Breakfast Meeting from 7:30 a.m.—8:30 a.m. • Call clients/prospects from 9:00 a.m.—11:00 a.m. • Lunch Appointment from 11:30 a.m.—1:00 p.m. • Other Appointment Time from 2:00 p.m.---3:00 p.m. • Recap from 3:30 p.m.---4:00 p.m. • Client follow-up from 4:00 p.m.—5:00 p.m. • Client Meeting from 6:00 p.m.—8:00 p.m. • You may wish to consider compartmentalizing your day in a similar fashion

15. Doing the same things at the same time every day is important for you to consider, as there is no worthwhile success without discipline and structure.

16. Assess and Harness your Individual LTC Activity: • How many individual appointments did you have in 2012? • Do you know the number of phone calls you made in 2012 for individual appointments? • Did you call at a specific time during the day? • How many individual cases did you close? • How many declines? • Why? • How many RNT’s? • Why? • How many individual cases are in the pipeline? • What stage? • What will you close in 2013 from this? • Can you re-visit with these folks in 2013?

17. Assess and Harness your Activity: • Closing Ratio? • Did you generate Individual appointments in other ways? • Public PR talks • Referrals from clients • Lead ideas • Referrals from non-clients • Referrals from yourself if you sell other products • Referrals from referral sources • Newsletters • Writing articles • Seminars • Direct Mail • Lead System • Other

18. Assess and Harness your Activity: • Of these sources of individual appointments, which were the most productive? • What was your individual cost of each appointment? • What kind of numbers were generated from each source? • How often did you review your activities?

19. Assess and Harness your Activity: • Key Activity Metrics: • Number LTC Phone Calls • Time of Day • Number of LTC Appointments • Number of Cases Closed, Placed, RNT’d • Reflection on other sources of business and how they performed

20. Speak for yourself • Ignore the noise • Don’t believe the hype • Be attentive • ----Bill Belichick. • “The Patriot Way.”

21. Show up (i.e. Prepare) • Pay Attention (Listen to the prospect) • Tell the Truth • Play Hard • Be unattached to any one result • ---Unknown

22. II. Creating Potential Sources for LTC Business: • How is your referral base? • Who sent you cases in 2012? • How did you perform with what they sent you? • What did or did not happen? • What did you learn? • Who do you like working with? • Types of professionals you are working with? • Types of professionals you would like to work with? • Your personal inventory and how to access it… • What have you done to create opportunities for yourself to be seen as the LTC expert? • What do you do to generate credibility on your behalf? • Don’t have a referral base? • Ideas

23. II. Creating Potential Sources for LTC Business: • Potential Sources for Individual Referrals: • CPA’s • Estate Planning Attorneys • Financial Professionals that do not have your expertise but have a client base • Disability Income Specialists • Life Insurance Specialists • Investment Specialists • Financial Planners

24. II. Creating Potential Sources for LTC Business: • Public Talks • Writing articles for local newspapers/etc • 3rd party • Delivering education in/to ACLF facilities • Delivering “at large’ public talks where appropriate • Re-connecting

25. III. Identify YOUR Key LTCI Metrics for 2012: • Top Line Revenue by Carrier • 1099 Info for 2012 • Deviation from 2011 • Number of Paid LTCI Cases for 2012 • Number of Asset Based LTCI Cases • Average Premium per case • Number of Traditional Health LTCI Cased • Average Premium per case • Total Paid Premium for each Carrier

26. III. Identify YOUR Key LTCI Metrics for 2012: • Revenue Metrics • First Year Commission • Years 2-10 • Years 11+ • Other • What will be your 2013 revenue based on your 2012 production? • How Many Clients paid: • Annually • Semi-Annually • Quarterly • Monthly • Unpaid FYC for 2013 generated in 2012 • What was your growth over 2011 for these metrics?

27. III. Identify YOUR Key LTCI Metrics for 2012: • What kind of Percentage Growth did you have from 2011 to 2012 in: • Number of Appointments • Closing Ratio • 1099 Revenue by Carrier • Number of Cases Paid by: • Asset Based LTC Carriers • Traditional Health LTC Carriers • Average Premium per case for above • Knowing these will help you develop a forecast for 2013

28. IV. LTC Case and Revenue Forecasting for 2013: • Number of Appointments for 2012 • Closing Ratio • Projected Number of Appointments for 2013 • Appointment growth of 2011 to 2012 considered • Apply 2012 Closing Ratio • Placed Case Growth • Apply Premium Averages by instrument and carrier from 2012 • Annual Projections for • Low Hanging fruit • Cases in underwriting that were not finished in 2012 • When does your year end? • Consideration of 4-6 weeks it takes to complete underwriting • November 1?

29. V. Leverage your CLTC Education and Support: • Time is money; renew your designation • Do you know all of the CLTC grad resources that you have access to? • Ask The Experts • One Page CLTC Tax guide • Monthly Newsletter • E-Alerts • Client Interview Road Map • The CLTC Workbook • PowerPoint Presentations: • Tax Qualified LTC • Advisor Generated Business • Why Extended Care disrupts… • Power Phrases.. • Consumer Seminar • CLTC Course

30. V. Leverage your CLTC Education and Support: • Translation: You only have so much time…… • Don’t: • Re-invent the wheel. (Its already round and works) • Try to build these tools on your own • Do---discuss said tools with your compliance department/managers. • Do…hone your craft. Practice honing your presentation skills with the above mentioned tools. • Do..consider re-taking the class from a different instructor; great gains can be had

31. Generate and Evaluate Referrals: • Who sent you business in 2012? • What are the measurables? • Is there a way to market to their database? • What did you do for them? • How many referral sources sent you cases? • How are you cultivating them? • If you did cultivate them, what are the measurables?

32. VII. Evaluate Wholesale vs. Retail Business: • How many cases did you split revenue on in 2012? • Wholesale • Did this resonate with you? • Country Club Analogy • Percentage of your overall Business? • Key Learnings? • How many cases did you receive 100% of the revenue on in 2012? • Retail • Did this resonate with you? • Key Learnings?

33. VIII. Relevant Business Expenditures: • E and O Insurance • Office Rental • Administrative Support • Computer Related Expenses • Insurance Licensing Expenses • CE Related Expenses • Software/CRM Fees • Travel Expenses • Auto Expenses • Entertainment Expenses: • Breakfast (how many) • Lunch (how many) • Dinner (how many) • Other (how many)

34. VIII. Relevant Business Expenditures: • Phone Fees • Printing Fees • Other • What did you spend on each in: • 2011? • 2012? • What will you spend on each in 2013?

35. A word about E and O: • Do you have it? • When was the last time it was reviewed? • Do you understand it? • Any rocks in the river? • Do you have an advisor for this?

36. 2013 Business Plan Considerations: • Targets: • Number of Individual LTC Appointments for 2013 • Where will you get them from? • Referral sources • Self Generated • Your inventory • Review of Individual 2013 LTC Case Pipeline: • Unpaid cases from 2012 • Pipeline/prospects from 2012 • How many cases can you close • CRM • Jump start ideas • Number of LTC Cases Paid • Traditional Health LTC • Asset Based

37. “Failure is not fatal. Failure to change might be.” • -John Wooden

38. “To give anything less than your best is to sacrifice the gift.” • -Steve Prefontaine • (He once held the American record for 7 distances in track events between 2,000 meters and 10,000 meters prior to his death on May 24, 1975 at the age of 24)

39. 2013 Business Plan Considerations: • How productive was your relationship with your existing clients? • Honing your presentation for existing clients • Do you have personal experience that you can convey to your clients?

40. Other 2013 Business Plan Considerations: • What LTC carriers will you do business with? • Relevant Factors? • How do you personally ignore the noise? • What is your purpose, what draws you to Long Term Care Education and Planning? • How are you keeping up with industry related changes? • How are you getting better as a business person?

41. LTC Carrier Relevant Factors for your consideration: • Experience in LTC • Financial Ratings • How they have performed relative to their assumptions • Rate increase history • What kind of risks they take • Other

42. Personally Ignoring the Noise: • What do you do when you are not doing this? • Work out? • Give back to your community, neighborhood, church, etc? • Volunteer • Spend time with friends, etc • Read (non-industry related material) • Rest • Cook • Sports • Watching them • Playing them, etc. • Said differently, what activities help you hit the “reset” button?

43. What draws you to Long Term Care: • Have you had personal experience? • If so, is this reason you are drawn to LTC? • How have you continually honed the delivery of your experience so it can help others? • Purpose: the reason for which something is done • Convey your purpose to clients

44. Keeping up with Industry-related changes: • Block out time each month to keep up • Webinars conducted by CLTC • Webinars conducted by Carriers • Set aside time to read the carrier newsletters • Network with other people in your business that are your peers • Reading other relevant industry related materials

45. Helpful Business Planning Related Books: • The E Myth Mastery • By Michael Gerber • Good To Great • By James C. Collins