2005
Agent Training
Presentation
PART 1:
General Market Explanation
PART 2:
UA Coverage Solutions
Part 1 and Part 2 may be
presented separately.
Form UASM-1 R05
Part 1: General Market Explanation

Medicare Review

Medicare Supplement

Long Term Care

Life Insurance

Insurer Selection
Medicare Overview

“When Medicare began in 1966
it had 19 million beneficiaries
and a budget of $12 million.
By 2010, the program is projected
to serve 45 million Seniors, or
one out of seven Americans,
with a $300 million budget.”
- Dr. Robert Field
“What Should Medicare Look Like in 2010?”
Medicare Symposium
University of the Sciences, Philadelphia, PA
May 14, 2003
Medicare Today
Medicare consists of two parts — A & B:
Medicare Part A



Hospital Room & Board.
Other Costs Associated with
Confinement.
Skilled Care in a Nursing
Facility.
Medicare Part B

Medical insurance.
Medicare Today
MEDICARE PART A — HOSPITAL
MEDICARE PAYS:
YOU PAY:
2005 Deductible:
Most confinement
costs after deductible
$912 per
confinement
Days 61-90:
All eligible
remaining expenses
$228 Daily
Days 91-150:
All eligible
remaining expenses
$456 Daily
Days 151 on:
Nothing
All hospital
costs
Medicare Today
MEDICARE PART A — Skilled Nursing Facility
Days 1-20:
Days 21-100:
remaining expenses
Days 101 on:
MEDICARE PAYS:
YOU PAY:
All eligible
expenses after
leaving the hospital —
specific limitations
Nothing
All eligible
$114 Daily
Nothing
All costs
Medicare Today
MEDICARE PART B — MEDICAL
Part B covers: Doctor & surgeon fees, most lab
tests & X-rays performed outside the hospital and
outpatient treatment.
MEDICARE PAYS
YOU PAY
--
$110 annual deductible
generally pays 80% of
“approved”charges
--
20% of “approved”
charges
100% of charges above
Medicare “approved”
amounts
PART A — HOSPITAL INSURANCE
YEAR BENEFIT
PERIOD BEGAN
1966
1970
1980
1990
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
1st DAY
INPATIENT HOSPITAL
DEDUCTIBLE
$ 40.00
52.00
180.00
592.00
716.00
736.00
760.00
764.00
768.00
776.00
792.00
$812.00
$840.00
$876.00
$912.00
per benefit period
61st-90th DAY
INPATIENT HOSPITAL
COINSURANCE
$ 10.00
13.00
45.00
148.00
179.00
184.00
190.00
191.00
192.00
194.00
198.00
$203.00
$210.00
$219.00
$228.00
per day
60 DAY
21st-100th DAY
LIFETIME RESERVE
SKILLED NURSING
COINSURANCE
FACILITY COINSURANCE
$ 20.00
26.00
90.00
296.00
358.00
368.00
380.00
382.00
384.00
388.00
396.00
$406.00
$420.00
$438.00
$456.00
per day
$ 5.00
6.50
22.50
74.00
89.50
92.00
95.00
95.50
96.00
97.00
99.00
$101.50
$105.00
$109.50
$114.00
per day
PART B — MEDICAL INSURANCE
1966-1972
1973-1981
1982-1990
1991-2004
NOW
ANNUAL DEDUCTIBLE
COVERED SERVICES
COINSURANCE
COVERED SERVICES
$50.00
$60.00
$75.00
$100.00
$110.00
20% of Approved Amount
20% of Approved Amount
20% of Approved Amount
20% of Approved Amount
20% of Approved Amount
Standardized Med-Supp Plans
Plans
A B C D E F* G H I J*
Core Benefits
Skilled Nursing Home
Part A Hospital Deductible
Part B Deductible
  

 

Excess Doctor Charges
Foreign Travel
At-Home Recovery
Prescription Drugs
Preventive Care
*Plans F & J also have high deductible plans.



 
 
 

100%
 

 
 
 
 
80%
100% 100%
 

$1250

 
 
 

 
 
$1250 $3000

Need for Medicare Supplement
Hypothetical Example: Patient Liability after Medicare
PATIENT
LIABILITY
PART A: Hospital
Part A Deductible
30 Days @ $228
60 Days @ $456
Additional Hospitalization
3 units of blood @ $60
SUBTOTAL:
SNF: 80 Days @ $114
At-Home Recovery:
14 visits @ $40
PART A TOTAL:
PART B: Outpatient Hospital
Services & Medical
PART B TOTAL:
TOTAL:
$
PLAN C
PAYS
PLAN F
PAYS
PLAN G
PAYS
912
6,840
27,360
20,000
180
$55,292
9,120
$
912
6,840
27,360
20,000
180
$55,292
9,120
$
912
6,840
27,360
20,000
180
$55,292
9,120
$
912
6,840
27,360
20,000
180
$55,292
9,120
560
$64,972
—
$64,412
—
$64,412
560
$64,972
$12,599
$8,333
$12,599
$11,636
$77,571
UNPAID
$72,745
$77,011
$76,608
Plans F and G are not available in PA or VT; excess charges are prohibited in OH.
Managed Care ‘Freedom’?
Questions Seniors should research
in the case of HMOs:
1. Can patients pick their primary-care physician?
2. What gets covered? Pre-existing conditions?
Emergency-room visits?
3. How much will it really cost? Are there
co-payments on prescriptions, routine doctor
appointments and visits to specialists?
4. What if a patient wants to see someone not
included in the plan?
Managed Care ‘Freedom’?
Questions Seniors should research
in the case of HMOs: (continued)
5.
How good are the HMO doctors? How many
are board-certified?
6.
Does the patient have access to any doctor in
the HMO plan?
7.
How convenient are the locations of HMO
facilities and physicians?
8.
What do current patients think of the HMO?
“First Year” Choices
Initial Medicare Supplement policy
selection is more critical than
customers may realize.
Only policies are standardized,
companies are not.

Choose a safe, strong, proven company —
once.

Research, understand and choose the best
coverage for you — once.

Qualify for coverage — once. Health status can
change and qualifying for a different policy (an
upgrade) may not be possible later.
Long Term Care Need

On average, one year in a nursing
home costs about $57,700.
- Evans Research, May 2003

The average cost of a nursing
home ranges from $98 – $457 per
day, depending on location.
- GE Financial, August 2003
Life Coverage
When a loved one dies many bills may
remain and the family will need to find
the money to pay them. Life insurance
coverage bought now can help to cover
these costs.

Life insurance for final expense needs is
generally for ages 50-80.

Provides quick access to pay final expense
costs.

Protects loved ones from financial burden
during a difficult time.

Options can include varying face amounts,
cash and loan values and living benefits.
Life Coverage

Life insurance is purchased
mainly to buy additional
financial protection for
families.

Individual life policies offer 2 basic types of
protection: covering a specified term or
permanently covering one’s whole life.

Ordinary life is the most widely used form of
life insurance protection and it is broken into
two types . . . whole life (permanent) and
term insurance.
Annuities

Most annuities are available
for ages 0-80.

Annuities are purchased for
the purpose of producing
periodic income at regular
intervals for a specific time
frame, such as 10, 20, 30
years or even life.

Annuities help assure protection against the
possibility of outliving one’s financial resources.

Typically, annuities are intended to provide
additional retirement income.
Life/Health Insurer Selection
Choose the right company.
Examine the company behind the product . . .
financial stability, leadership experience,
industry ratings and rankings.

Match coverage needs to budget.

The bottom line . . . what good is an insurer if
you can’t depend on them when you need
protection?
Part 2: UA Coverage Solutions

Medicare Supplement

Long Term Care

Critical Illness

Cancer

Life Coverages

United American Review
Growth in the Medicare
Supplement Market
Projected Number of People Age 65
120
102.2
90.9
Millions
100
76.9
80
60.5
60
40
35.2
20
0
2000
2025
2050
2075
2100
Source: AAIM, Oracle #1, January 2003, Alliance for Academic Internal Medicine
Growth in the Medicare
Supplement Market

In 2003, the number of Medicare beneficiaries
was over 40 million. It is estimated the
number of Medicare beneficiaries will be
over 66 million by 2050.
- AAIM, Oracle #1, January 2003
Alliance for Academic Internal Medicine
UA’s ProCare Med-Supp Portfolio
Policy Forms
MSA
MSB*
MSC
MSD
MSF
MSG
Core Benefits














Skilled Nursing Home
Part A Hospital Deductible
Part B Deductible



Excess Doctor Charges
Foreign Travel
At-Home Recovery



100%
80%



There are ten standardized Medicare Supplement insurance plans; of these, United American offers six.
*Plan B provides both senior and underage disability protection. Benefits are identical (separate app/brochures); senior rates
are age-banded and Underage Disability rates remain one rate all ages. (Some states require designated Medicare
Supplement plans be available to persons eligible for Medicare due to disability.) Excess charges are not applicable in PA and
Ohio. Plans F and G not available in PA and VT. Plans and benefits may vary by state. United American Insurance Company
is not associated with or endorsed by Medicare, Social Security or any other governmental agency.
UA Group Medicare Supplements

Groups of 50 or more retired employees are
eligible — including eligible spouses.

100% participation is required.

Coverage is guaranteed issue.

Lower, community rates will be offered.

The full UA ProCare portfolio is available.
UA Policyholder Services
United American delivers . . .

Personal one-on-one Agent attention.

Fast policy issue for fast protection.

Automatic Payment Plan (Bank Draft) for premium
payment, thereby eliminating unintentional lapse
and providing non-stop protection.

Easy-to-understand product brochures with clearly
defined benefit descriptions.

Optional Customer Conveniences.
•
UA Partners® discount health services which
includes “Automatic” Claims Filing® for our
Medicare Supplement customers
(not available in KS).
UA Partners®
Nationwide discount health services program
with savings for:
Chiropractic
Up to 40%
Dental
Up to 50%
Eye Care
Up to 50%
Hearing
Up to 20%
Prescriptions Up to 30%
Mail Order
Pharmacy
Save More $$
0%
10%
20%
30%
40%
50%
UA Partners®
Our UA Partners program also includes our
“Automatic” Claims Filing® service for Medicare
Supplement policyholders.

Virtually eliminates claims filing

Direct provider payment

Speeds claims processing

Consolidated monthly claim statements
Note: Federal law requires Medicare to file a small
number of claims directly with insurers.
“Automatic” Claims Filing ®

Insurance companies receive eligible Medicare Part B
claims automatically from Medicare Part B
administrators.

Automatic filing virtually eliminates the need for
customer claims filing.

Not all Medicare Supplement insurers offer automatic
filing.

Companies offering automatic filing sometimes
provide it only in limited areas.

Federal law requires Medicare to file a small number
of claims directly with insurers.
Policyholder Praise
Dear Sirs,
Thank you so much for the Partners membership
card for the discount benefit program. I have used
the card several times, and it is hard to believe how
much I have saved on prescriptions. It is well
worth the fee. I recommend the company (United
American) to friends and relatives as often as I
have the opportunity.
Sincerely,
E. Clark, Georgia
Policyholder Praise
Dear Sir,
I value very highly my insurance with you. You are
indeed responsible for taking my worries about
health care cost and giving me a sense of peace.
Sincerely,
J. Miller, MD
Policyholder Praise
Mr. Mark McAndrew,
I am thankful we had our insurance with your
company. Your company can be proud of the way
they handled all of our claims. Thank you! I can
assure you that I will recommend your company to
my friends or anyone for any type of insurance
your company handles.
Yours truly,
L. Joehnek, MO
Long Term Care *

LTC Classic — Indemnity

LTC Gold Series —
Expense-Incurred

Individual or Married
Protection

Issue Ages 40-84
*Plans and benefits may vary by state.
Not available in CA, CO, FL, ME,
MD, MN, PA, RI, TX, VT or WI.
LTC Features
The Classic and Gold Series Plans offer
these additional features:






Benefits for Alzheimer’s Disease — covers as
any other sickness*
Cognitive Impairment Lapse Protection
Third Party Notification
Guaranteed Renewable Protection
Automatic Payment Plan
Married couple rate
*In most states, Alzheimer’s must be first diagnosed or treated
after the policy is in force.
Good Sense Plan
Features:

Issue ages 0-63

Miscellaneous Hospital Benefit amounts of
$15,000 or $25,000 (less $500 deductible)

Surgical Expense Benefit

Radiotherapy Benefit

Choice of Daily Hospital Room Benefit

Daily Intensive Care Benefit – up to two times
the daily room benefit
Plans & benefits may vary by state.
Policy Form GSP1
HealthGuard Critical Illness
Why do people need Critical
Illness insurance?

Every 26 Seconds an American suffers a
coronary event.

On average, someone in the U.S. suffers a
stroke every 45 seconds.

Heart disease is the leading cause of
premature, permanent disability in the U.S.
labor force.
Source: Heart Disease and Stroke Statistics – 2004 Update, American Heart Association
Policy Form CILS
HealthGuard Critical Illness
Policy Features:

Available for ages 18 through 64.

Select a lump sum benefit of $10,000, $20,000,
$30,000, $40,000 or $50,000.

A one-time, lump sum payment is made directly
to the policyholder.

As long as premiums are paid, the policy is
guaranteed renewable to age 80.

Pays in addition to any other coverages
Individual and spouse coverage is available.

Policy terminates upon payment of lump
sum benefit.

Benefit amounts are reduced by 50% at age 65.
HealthGuard Critical Illness
What does HealthGuard Cover?

Major Organ Transplant (heart, lung, liver,
kidney, pancreas or bone marrow)

Heart Attack

Stroke

Total & Permanent Loss of Eyesight
in Both Eyes

Total & Permanent Loss of Hearing
in Both Ears

End Stage Renal (Kidney) Failure
HealthGuard Critical Illness
What is the value of
Critical Illness insurance?

Suffering a critical illness can incur additional
costs for things like lost income, out-of-network
fees or travel expenses.

Benefits paid by a critical illness policy can
relieve worry and anxiety concerning the daily
routine of living.

When someone is critically ill, they don’t feel in
control of their lives.

Critical Illness insurance was conceived and
developed by a physician.
UA Cash Benefit Cancer Plan
Reasons To Buy UA’s Supplemental
Cancer Coverage:
Reason #1
Freedom To Choose How Money Is Spent
No restrictions on the way the policyholder
spends the benefit amount received . . .
reconstructive surgery, choice of treatment plan
or doctor, mortgage payments, travel expenses,
income while not working, etc. It’s up to the
policyholder to decide how best to spend the
money.
This is a supplemental cancer only insurance policy.
Policy Form CANB
UA Cash Benefit Cancer Plan
Reasons To Buy UA’s Supplemental
Cancer Coverage:
Reason #2
Existing Coverage Doesn’t Matter
Fact: The lump sum cash benefit amount is
designed as a total cash payment. This frees the
customer from having to forfeit any existing
coverage. With UA’s Cash Benefit Cancer Plan
there is no duplication of coverage.
This is a supplemental cancer only insurance policy.
Policy Form CANB
UA Cash Benefit Cancer Plan
Reasons To Buy UA’s Supplemental
Cancer Coverage:
Reason #3
Liberal Qualification
No physical exam is required to qualify — a few
health questions will determine if you qualify for
coverage.
This is a supplemental cancer only insurance policy.
Policy Form CANB
UA Cash Benefit Cancer Plan






First diagnosis, cash benefit supplemental
cancer policy.
Pays one-time cash payment of up to $10,000,
$20,000, $30,000, $40,000, $50,000.
Benefit paid upon written satisfactory proof
according to the policy of diagnosed internal
cancer or malignant melanoma.
Coverage for Individual, Single Parent and
Family — issue ages 0-69.
Policy pays in addition to any other existing
coverage.
No hospitalization or treatment required to collect
the full benefit amount due.
This is a supplemental cancer only insurance policy.
Plan and benefits may vary by state.
Policy Form CANB
UA Life Plans*

Whole Life — Level or Increasing

RT85 Renewable Term Life

21-Pay
*Plans and benefits may vary by state
Whole Life 400 Series Life Plan

Ages 45-80

Level Benefit with 4 Payment Options
- 10 Year Pay
- 20 Year Pay
- 15 Year Pay
- Ordinary Life

Graded Benefit— Offered where approved.*
- Available on level and increasing benefit
choices

Increasing Benefit — Grows 5% each policy year
for 20 years until it doubles.
- Ordinary Life payment option only

Living Benefit— Offered where approved.
Policy Forms SWL & SWLGD
*Plan and benefits may vary by state
RT85 Renewable Term Life Insurance Policy*
Ideal protection for families just starting out
and for those who need additional
insurance coverage.

Available ages 18-85

Immediate coverage with policy issue

Graded Benefit - offered where approved

Cash Benefit paid directly to beneficiary

Living Benefit (where approved)

Deposit Fund Rider
* Plan and benefits may vary by state. Policy Form RT10/GT10GD
UA Deposit Fund Rider
The Deposit Fund Rider (DFR) is an interest
bearing account and can be attached to new
RT-85 Renewable Term Life insurance policies.

3% guaranteed minimum interest rate
on deposits

No charge or interest penalties
for withdrawals

Minimum deposit amount is $5.00.
Additional funds may be deposited
by check with a completed
transaction form.
21-Pay Life Insurance Policy
Life insurance for the “child rearing” years

Available ages 0-79

Coverage for individuals, families and seniors

Face amount increases 5% per year

Optional child and Accidental Death Benefit
Riders (Additional premium applies.)
Plan and benefits may vary by state.
Policy Form URL-CBP
Memorial Guide

United American will provide a complimentary
Memorial Guide to each current or prospective
policyholder.

The Memorial Guide documents important
information that aids families in making final
preparations: vital statistics, military record,
immediate family and special requests.

This Guide allows clients to assess their final
expense needs and their level of preparation.
UA Lifestyle Annuity

Issue ages 0-80

Single Premium

Tax-deferred growth

Guaranteed interest rate at all times

Optional maturity date

5 income options include monthly checks
Plan may vary by state.
Policy Form USPDA02
United American Review
10 GREAT REASONS TO BUY UA COVERAGES
1. Over 50 years of Life/Health insurance experience
2. Full range of Life and Health products —Medicare
Supplement, Long Term Care, Cancer, Life (whole
life, term, annuities)
3. One of the largest writers of individual Medicare
Supplements (NAIC Final Med-Supp Experience Report 11/6/03)
4. Personal Agent service
5. Fast policy issue for fast protection
6. UA average Medicare turnaround times: claims
processing — 3.56 days.
7. Timely policyholder communications
8. Freedom to choose physicians & facilities on all
health coverage
9. Simple “Yes/No” applications
10. Optional customer conveniences including
UA Partners® discount health services
United American Insurance Company is not connected with
or endorsed by the U.S. government or the federal
Medicare program.
Unless specified, these Medicare Supplement policies will
not duplicate Medicare payments or pay expenses not
Medicare eligible.
These policies described herein have exclusions and
limitations. This is a solicitation for insurance, and an agent
representing United American Insurance Company may call
you to provide costs and complete details.
Pre-existing condition means an injury sustained or
sickness manifesting itself prior to the policy effective date.
2005
Form UASM-1 R05
UNITED AMERICAN
SECURITY FOR TODAY AND TOMORROW
United American Insurance Company Headquarters
McKinney, Texas