- 1 - IFS A /05 For Financial Professional Use Only – Not for distribution to the general public. Prudential Long-Term Care Insurance Selling to the Business

- 2 - IFS A /05 * As of 6/30/2006. **As of February A.M. Best ratings range from A++ (Superior) to F (In Liquidation); Standard & Poor’s ratings range from AAA (Superior) to CCC (Extremely Vulnerable); Moody’s ratings range from Aaa (Exceptional) to C (Lowest Rated); Fitch ratings range from AAA (Negligible Risk Factors) to DD (Company under Order of Liquidation). Prudential Financial Strength and Stability From a name you know and trust –130 years in Financial Services Industry –$568 billion in assets under management* –15 million customers worldwide* –Prudential name and distinctive “Rock” logo are among the most widely recognized brands in the US A.M. Best A+ Standard & Poor’s AA- Moody’s Aa3 Fitch AA Solid Financial Strength Ratings* *

- 3 - IFS A /05 Prudential Long-Term Care Insurance Total LTC Solutions –20 years in LTCi business with no rate increases –Innovative and comprehensive products –Markets we service: Individual Multi-life True Group

- 4 - IFS A /05 Multi-life Opportunity The “multi-life” LTC market is one of the fastest growing components of LTCi sales –Executive Carve Outs –Employee Benefits Opens door for cross-selling approach Prudential offers LTCi products to: –Individuals (small employer groups) –Associations –Large corporations

- 5 - IFS A /05 1 1Caregiving in the U.S. National Alliance for Caregiving (NAC) and AARP. May, Impact of Caregiving on Employers The National Alliance for Caregiving and AARP Survey 1 found: –1 out of 4 U.S. households are involved in caregiving –2 out of 3 caregivers are employed fulltime –1 out of 3 caregivers lose up to 16 hours of work per month due to caregiver responsibilities

- 6 - IFS A /05 Impact on Employer & Employee Result of care-giving: –Businesses lose up to $33 billion annually 1 Absenteeism Decline in productivity Interruptions (emergencies and calls) Decreased morale and motivation Unwillingness to travel & inability to relocate –Employees are physically, emotionally, & financially drained 30% of employees with parent age 65+ miss work 2 31% quit work 3 67% adjust work schedules 4 Impacts retirement & educational saving Can place career limits during “key wage earning” years 1 2/3 The State of Aging and Health in America National Alliance for Caregiving

- 7 - IFS A /05 The Financial Costs of “Informal” Caregiving 1 out of 2 caregivers provide more than 8 hours of caregiving per week. 1 –17% provide more than 40 hours per week. 1 Estimated loss to “informal” caregiver: –$25,494 in social security benefits –$67,202 in pension benefits –$566,433 in wages Total lifetime loss = $659, Source: The State of Aging and Health in America

- 8 - IFS A /05 Why LTC Insurance? One of the newest employee benefits being used to attract and retain top-talent Awareness and interest in LTC is increasing: –Media attention –LTC Awareness programs –Baby boomers seeing parents needing help –Facing their own futures Employers can have a positive effect on employees in planning for their future needs Help diminish the negative effects of caregiving LTC market is untapped with only 3% of small businesses offering LTCi

- 9 - IFS A /05 LTC Advantages for Businesses Group discounts Tax advantages –Deductible premiums –No income / tax-free benefits Executive benefit perk (carve outs) –Employers pay premiums for select employee groups –Benefits received by employee are not taxable –Employee owns policy and it’s portable –Method of providing a “raise” to key employees Multiple “employee” classes with no nondiscrimination requirements * Ease of administration (list billing) *Source:

IFS A / Eligible Premiums Age 40 or below$290 Age 41 to 50$550 Age 51 to 60$1,110 Age 61 to 70$2,950 Age 71 and above$3,680 Maximum Tax-Deductible Premiums (2007)

IFS A /05 Tax Advantages for C-Corporations Premiums are 100% deductible as business expense –Fully deductible to firm, not taxable to employee –Spouse premiums are fully deductible to the firm, not taxable to the employee

IFS A /05 Tax Advantages: S-Corporations –Premiums are deductible for owners, limited to an age-based amount Fully deductible to firm, not taxable to employee Greater than 2% of owners, eligible premium is deductible above the line*; all other fully deductible to firm, not taxable to employee Payments by the firm for the spouse of the owner although deductible by the firm, will flow to the owner employee as income and will be subject to the 213 limit deductions Spouse premiums are fully deductible to firm, not taxable to employee * Above the line – treated as an adjustment to gross income on the Individual Income Tax Return Form 1040 (I.e., before itemized deductions) for sole proprietor, partner, LLC shareholder, >2% S Corp shareholder. * Above the line – treated as an adjustment to gross income on the Individual Income Tax Return Form 1040 (I.e., before itemized deductions) for sole proprietor, partner, LLC shareholder, >2% S Corp shareholder.

IFS A /05 * Above the line – treated as an adjustment to gross income on the Individual Income Tax Return Form 1040 (I.e., before itemized deductions) for sole proprietor, partner, LLC shareholder, >2% S Corp shareholder. Tax Advantages: Partnerships –Fully deductible to firm, not taxable to employee –Eligible premium is deductible above the line* –Spouse premiums are fully deductible to firm, not taxable to employee –Firm payments for the spouse of the owner employee although deductible to the firm flows to the owner employee as income and subject to the 213 limit deductions –Premiums reported as guaranteed income on Schedule K-1 LLCs –Fully deductible to firm, not taxable to employee –Eligible premium is deductible above the line* –Spouse premiums are fully deductible to firm, not taxable to employee –Income reporting depends on Corp or Partnership status –Firm payments for the spouse of the owner employee although deductible to the firm flows to the owner employee as income and subject to the 213 limit deductions

IFS A /05 The Solution: Prudential Multi-Life Programs True Group Employer-Sponsored Affiliations

IFS A /05 Employer Sponsored Program (ESP) Highlights Employer group size requirement –10 to 500 lives (must work minimum of 30+ hours per week) Minimum participation requirement greater of 10 lives or 5% of lives required employees with 100% of the class –10 lives (including spouses) Discounts –10% discount to employees & spouse/partner (5% spouse discount for LTC by Design) –5% discount to family members* –No maximum on discounts –Preferred health rate class not available to employees under ESP Modified underwriting (employees ages *) Customized plan design for every client Buy-ups available * Parents, in-laws, aunts, uncles, siblings, grandparents, grandparents in-law, and children ages 18 and older.

IFS A /05 ESP Plan Design Options with modified underwriting –$50 - $300 Facility: daily, monthly, or cash benefit –50%, 75% or 100% home care –Benefit periods: 2, 3, 4, 5, or 6 years –Elimination period: 60, 90, 120, 180, or 365 days –All Inflation options available –Share Care, ROP, Survivor Waiver, Shortened Benefit Option, Flexible Cash, CBO –Accelerated premium options available 10 pay Paid-up at 65 –Buy-ups available joint waiver, 150% HHC, beyond modified limits Note: LTC by Design:6YR BP, 120 and 365 EP, share care, ROP,150%HHC, not available

IFS A /05 Benefits: Part of Every LTC3 SM Policy Restoration of benefits Calendar day elimination period Waiver of premiums Cash alternative Home support services benefit Alternate plan of care benefit International coverage benefit Care management (including a Private Care Consultant benefit)

IFS A /05 ESP Modified Underwriting Questions 1.Do you use: walker, oxygen, respirator, or kidney dialysis? 2.Within past 12 months have you: used adult day care, needed home health care, or been medically advised to enter or been confined to nursing home, assisted living facility, or other LTC facility? 3.Do you currently need assistance or supervision by another person in performing any of the following activities: bathing, eating, toileting, bowel or bladder control, moving in and out of bed or chair, dressing, or taking your medication? 4.Have you had, do you currently have, or have you ever been diagnosed as having any of the following medical conditions: a)Organic Brain Syndrome, Dementia, Senility, Confusion, Memory Loss, or Alzheimer’s Disease? b)Metastatic Cancer (cancer that has spread from original site or location?) c)Multiple Sclerosis (MS), Muscular Dystrophy, Multiple Transient Ischemic Attacks (TIA), Parkinson’s Disease, Amyotrophic Lateral Sclerosis, Stroke, or Cerebrovascular Accident (CVA)?

IFS A /05 ESP Billing Options List bill –Monthly payment sent to Prudential by mail or electronic transfer. 10 case minimum –All participants premium is sub-totaled on one bill Direct bill –Employees deducted monthly with or without EFT –Quarterly, semi-annual, or annual available

IFS A /05 Finding the Right Businesses Who to partner with? –Property/Casualty Agents –Accounting Firms –Trade Associations –Employee Benefit Consultants –Chambers of Commerce –Corporate Attorneys What industry to target? –Favorable: Higher Education Physicians Law Firms Accounting Engineering –Challenging: Retail Hospitals Manufacturing

IFS A /05 Why Prudential? Effortlessly Handling All of Your Long-Term Care Insurance Needs Long-term care insurance is underwritten by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ ( ). Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ, USA and its affiliates. For Broker/Producer Use Only. Not to be distributed to the public.