Pacific PremierCare: Case Studies eLearning Narrative

Version: 6.0

Disclosures ............................................................................................................................... Error! Bookmark not defined. Course Disclosures ............................................................................................................... Error! Bookmark not defined. Form Numbers ..................................................................................................................... Error! Bookmark not defined. Voice Talent ............................................................................................................................. Error! Bookmark not defined. Introduction ............................................................................................................................................................................ 2 Case Study #1: Retirement Mindset ....................................................................................................................................... 2 Instructions ......................................................................................................................................................................... 2 Case Study #1: Life Insurance Producers Office ................................................................................................................. 2 Case Study #1: Product Recommendation (pg 1) ............................................................................................................... 5 Case Study #1: Product Recommendation (pg 2) ............................................................................................................... 6 Case Study #1: Case Submission ......................................................................................................................................... 6 Case Study #1: Client Services............................................................................................................................................. 7

Page 1 of 8 Last Updated: 7/9/2012 (Compliance Approved) For internal use only. Not for use with broker-dealers, life insurance producers, or the public.

Introduction
<Narrator> Welcome to the Pacific PremierCare: Case Studies course. In this course, youll be given the opportunity to apply information and concepts learned during the: Pacific PremierCare Mechanics Series, Pacific PremierCare Marketing eLearning Course, and Pacific PremierCare: Life of a Policy eLearning Course.

To maximize your experience, it is recommended that you complete these case studies after youve completed the courses shown. Click a case study to begin.

Case Study #1: Retirement Mindset

Instructions <Narrator> This case study will be presented as a virtual role play where you will play the role of Anthony Cullen, a life insurance producer from Atlanta, Georgia. Along the way, you will: Meet Simone LeBlanc, a potential client; Interact with Julie, an LTC Specialist at Pacific Life; Make a product recommendation to Simone; Submit a case to Pacific Life; and Assist a policyowner with an inforce request. Lets get started! Click NEXT to begin. Case Study #1: Life Insurance Producers Office <Narrator> This case study begins in your office. Remember, you are playing the role of a life insurance producer and your job is to make a product recommendation to a client based on information available to you. Click the folder for client information; Click the phone to replay your recent phone conversation with Pacific Life; and , when youre fully prepared, click the pen to make a product recommendation to your client.
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Here is your clients information. Click her picture to listen to Simone. When you are done return to the office. Meet Your Client <Client-female> Hello. My name is Simone LeBlanc. I am 64 years old and work full-time as a graphic designer. Next year, I plan to retire and do some traveling with my husband, Jim. Weve always wanted to explore South America. We have $125,000 in a CD that weve saved up over the years and were planning to use part of that for our trip. Aside from that, I have a significant balance in my 401(k) through my employer as well as good health insurance coverage. Im hoping to use my 401(k) and some of my other investments for monthly income during my retirement. I want to make sure that Jim and I are taken care of during retirement. What would you recommend? Phone Conversation with Pacific Life <Julie> Thanks for calling Pacific Life. This is Julie. How may I help you? <Anthony> Hi Julie, this is Anthony Cullen again; we spoke a few days ago. <Julie> Hello again Anthony. What can I help you with today? <Anthony> Well, I saw that Pacific Life came out with a new product, Pacific PremierCare. I have a client that may be a good fit for this particular product, so I was hoping you could provide me with a little information on how that product works? <Julie> Of course. Pacific PremierCare is Pacific Life Insurance Companys first product that combines the functionality of a life insurance product with the benefits of long-term care (LTC) protection. In essence, clients will have flexibility as the policy will: Return their premium if they so desire, or Provide long-term care benefits, or If neither happens, will pay death proceeds to their beneficiaries. Would you mind telling me a little bit about your client so that we can see if he or she is a good fit for Pacific PremierCare? <Anthony> Oh, Not at all. My clients name is Simone. She is currently married and is 64 years old. Shes looking to retire next year and has a significant 401(k) balance. She also has $125,000 in a CD along with some other investments. They both have good health insurance and overall are financially comfortable. Theyre actually looking to do some traveling when she retires. <Julie> Thanks for the information Anthony. Is Simone primarily focused on retirement planning?
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<Anthony> Yes. Weve looked at generating an income stream using the 401(k) and then repositioning some of her other investments. My concern is that she currently doesnt have any protection should she become chronically ill. Ive expressed concern over the likelihood that a chronic illness would substantially eat into their investments and could even impact their retirement income stream. <Julie> It sounds like youre definitely on the right track. Providing protection in the event of a chronic illness would add an additional layer of stability to Simones retirement plan and Pacific PremierCare could provide this additional layer of stability. Now that you have a potential need and solution identified, its important that you have a conversation with Simone about her LTC needs. This is an area that some life insurance producers struggle with, but Id be happy to provide a few suggestions if youre interested. <Anthony> Id love to hear what you recommend. <Julie> Great. Id recommend asking a few questions to help Simone begin thinking about her LTC needs. Consider asking: Do you believe or are you concerned with the risk or cost of future healthcare costs? Have you thought of a plan for this risk? What are your thoughts about LTC insurance? What do you like about self insuring? If I could show you a strategy that would provide all the benefits you like about self insuring and the benefits you like about owning LTC insurance into one program, would that be exciting to you? If you got sick today and needed $100,000, where in your portfolio would you pull it from?

All of these questions are helpful in starting a conversation about LTC with a client. <Anthony> Wow, thats very helpful. I can definitely use some of those with Simone. It sounds like Pacific PremierCare might be a good fit but I had a couple more questions. I read something about a Terminal Illness Benefit. What exactly is that? <Julie> A Terminal Illness Benefit is available if the insured is diagnosed with a terminal illness that is expected to result in death within 12 months (24 months in some states). If eligible, the policyowner may request an acceleration of the death benefit to be received as a living benefit. <Anthony> Very nice. Does this product allow for loans and withdrawals? <Julie> Contractually, loans and withdrawals are allowed. However, they are highly discouraged. The one-time premium at issue is designed to pay monthly expenses through age 95, which is when monthly expenses cease. Taking a loan places the policy in danger of prematurely lapsing prior to age 95. In addition, loans and withdrawals may both have negative tax consequences since most Pacific PremierCare policies are considered Modified Endowment Contracts due to the large one-time premium. <Anthony> Ok, that makes sense. Where can I find a client brochure and other information about this product?

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<Julie> You can find information about Pacific PremierCare on Lifeline. There are many brochures, forms, and other marketing materials available. I would also recommend that you use Navigator to run a few Pacific PremierCare quotes to help determine the best amount of long-term care coverage for Simone. <Anthony> Ill be sure to do that. Thanks Julie. Youve been a lot of help. <Julie> Youre welcome. Was there anything else I can assist you with? <Anthony> No, I have what I need for now. <Julie> Great. Have a nice day Anthony. <Anthony> Thanks, you too. Notes Simone LeBlanc (age 64) Married husbands name is Jim Plans to retire next year Significant 401(k) balance $125,000 in a CD Has good health insurance Does have other investments Wants to do some traveling during retirement

Case Study #1: Product Recommendation (pg 1) <Narrator will read the question only, not the answer options> Based on the information known about Simone, what would you recommend? Select the best option. a) Structure the 401(k) and other investments to provide a monthly retirement income. Then, take the $125,000 from the CD and purchase a Pacific PremierCare policy. This will provide long-term care coverage that will help protect their retirement assets against an unforeseen long-term illness or injury. In addition, Simone can take a loan against the policy to pay for their trip to South America. b) Use part of the CD that matures next year to fund their trip to South America. Structure the 401(k) and other investments to provide a monthly retirement income. Then, take the remaining $100,000 from the CD and purchase a Pacific PremierCare policy. This will provide long-term care coverage that will help protect their retirement assets against an unforeseen long-term illness or injury. c) Structure the 401(k) and other investments to provide a monthly retirement income. Then, take the $125,000 from the CD and purchase a Pacific PremierCare policy. This will provide long-term care coverage that will help protect their retirement assets against an unforeseen long-term illness or injury. In addition, Simone can take a withdrawal from the policy to pay for their trip to South America.
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d) Use part of the CD that matures next year to fund their trip to South America. Structure the 401(k) and other investments to provide a monthly retirement income. Then, take the remaining $100,000 from the CD and purchase a Pacific PremierCare policy. This will provide long-term care coverage, in addition to flexibility, as the client may take loans and withdrawals from the policy at any time. Case Study #1: Product Recommendation (pg 2) <Narrator> Correct. Lets go ahead and make your recommendation to the client. <Anthony> Ive put together a recommendation based on our conversation last week and wanted to share it with you. Based on your current assets and your plans for retirement, I recommend that you: Use part of the CD that matures next year to fund your trip to South America. My initial estimate is that $25,000 should more than cover your trip. You can use your 401(k) and other investments to fund your monthly retirement income. The balance between all of your investments should provide you the monthly income to maintain your current lifestyle. Then, we can take the remaining $100,000 from the CD and purchase a Pacific PremierCare policy from Pacific Life. Here is a quote that shows potential benefits available based on current assumptions. This policy would provide you a lot of flexibility and fill a gap that I see for you and Jim, long-term care coverage. This policy would protect your retirement assets against any unforeseen long-term illness or injury. In essence, youd have a policy that would: o Return your premium if you so desired, or o Provide long-term care benefits, or o If neither happens, will pay death proceeds to your beneficiaries. <Narrator> As you just heard, Pacific PremierCare would be a good fit for Simone since it provides long-term care coverage that currently is missing from her retirement strategy. By filling this gap, Simone will help protect her other investments from the expense of a long-term illness or injury. In addition, Pacific PremierCare provides flexibility as the policy will: Return her premium if she so desires, or Provide long-term care benefits, or If neither happens, will pay death proceeds to her beneficiaries. Click Next to continue. Case Study #1: Case Submission <Narrator will read the question only, not the answers> How should you submit the case to Pacific Life? Select the best answer.
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a) b) c) d)

Complete the ticket in EzApply and submit it using the Quick Hit option as this is the preferred method. Complete the ticket in EzApply and submit it via mail or fax as this is the preferred method. Complete the ticket in EzApply and submit it using the partially electronic option as this is the preferred method. Complete the ticket in EzApply and submit it using the fully electronic option as this is the preferred method.

<Narrator> Yes, thats correct. Life insurance producers are encouraged to complete the ticket in EzApply and submit it using the fully electronic option. Using this option may prevent unnecessary delays since EzApply will not allow a ticket to be submitted unless it is in good order. Click Next to continue.

Case Study #1: Client Services (Screen will blur. After blur a line will appear indicating 10 years later. Sad music will begin playing as the narrator then starts speaking) <Narrator> In speaking with a mutual friend, you just learned that Simone has recently been diagnosed with Stage 4 Lymphoma. The doctors say that it has spread quite a bit and there isnt much they can do for treatment. They are giving her about 6 months to live. You immediately remember that the Pacific PremierCare policy she purchased from Pacific Life has a Terminal Illness Benefit. <Narrator will read question only, not the answers> With regard to the Terminal Illness Benefit, which of the following is applicable? Select all that apply. a) b) c) d) Available if insured is diagnosed with a terminal illness that is expected to result in death within 12 months. The minimum Terminal Illness Benefit payment is 5% of the eligible coverage or $10,000, whichever is less. The maximum Terminal Illness Benefit payment is 75% of the eligible coverage or $500,000, whichever is less. Payment of a Terminal Illness Benefit will reduce policy values and benefits available.

<Narrator> A Terminal Illness Benefit is available if the insured is diagnosed with a terminal illness that is expected to result in death within 12 months (24 months in some states). If eligible, the policyowner may request an acceleration of the death benefit to be received as a living benefit. The minimum Terminal Illness Benefit payment is $500 and a maximum of 75% of the eligible coverage or $500,000 applies, whichever is less. Payment of a Terminal Illness Benefit will reduce policy values and benefits available.
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You have now completed Case Study #1. Click the Home button to return to the Home page and then select another case study to continue.

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