Changing the way we view Long-Term Care Insurance

What image is in your mind? 835 days

National LTC Average Cost Skilled Nursing Homes - Daily Averages Semi-Private Room $238 $7,140/Month                                   Private Room $273  $8,190/Month     Home Health Care – Hourly Averages* Homemaker Services $21.45 44 hr/week Care = $3,861/Month Home Health Aide $22.24 44 hr/week Care = $4,004/Month       Assisted Living Facilities – Monthly Averages Studio Apt $3,878 1 Bedroom Apt $4,383 2 Bedroom Apt $4,672 Source: www.whatcarecosts.com/lincoln *Genworth 2016 Cost of Care Survey, conducted by CareScout®, April 2016¹ Based on 44 hours per week

Downside to Traditional LTC Insurance Expensive Increasing premiums

Downside to Traditional LTC Insurance Use it or lose it No cash value No death benefit

Alternative LTC Options Guaranteed premiums Cash value available Death benefit if LTC not needed

Choosing the “BEST” LTC Option Things to Consider Source of funds Age Frequency of payments What is important? Cash value Benefit for Beneficiaries Long-term care coverage

Choosing an LTC Option Life-Based LTC Policy Source of Funds: Savings, CD, Liquid investment with minimal taxes Age: 50’s ad 60’s Frequency of payments: Single premium or 10 pay What is important Long-Term Care Protection Access to premium Benefit for Beneficiaries

Life-Based LTC Option or or *65 year old male $100,000 NQ premium Benefits if you need long-term care A benefit if you don’t Return of premium options 3% Compound Inflation or or Total LTC Benefits Initial Specified Amount ROP Benefit Total LTC Benefit Year 1: $334,685 Age 80: $521,429 Max. Monthly Benefit Year 1: $4,312 Age 80: $6,718 $148,000 Year 1, $123,000 @ 85 $103,483 @ 100 $100,000 Providing at least 6 years of coverage Death Benefit paid income tax-free to beneficiary Policy Vested Policy Vested Year ROP% Year ROP% 1 80.0% 2 84.0% 3 88.0% 4 92.0% 5 96.0% 6+ 100.0% *65 year old male $100,000 NQ premium

Choosing an LTC Option Annuity-Based LTC Source of Funds: NQ Annuity, Savings, CD, Liquid investment with minimal taxes Age: Upper 60’s through 80 Frequency of payments: Single premium What is important Long-Term Care Protection Access to premium Asset Protection to Beneficiaries

Pension Protection Act of 2006 (“PPA”) Provides tax advantages to PPA compliant annuity holders who take distributions for the purpose of Long-Term Care expenses.

Annuity Based LTC Insurance Global Atlantic ForeCare Product details Single Premium (Non-qualified funds) Minimum deposit: $35,000* Rider Charge is guaranteed to remain unchanged through the life of the contract and cannot invade the contract value from the previous month 9 year surrender schedule Issue Ages 50-80 *May vary by state **Market Value Adjustment applies during withdrawal charge period

When used for qualified Long-Term Care Benefits Case Study 1 Total Coverage $300,000 Lillian | 77 Year Old Female $100,000 NQ Fixed Annuity earning 2.5% Cost Basis: $70,000 Additional Coverage $200,000 ForeCare Multiplier 3X When used for qualified Long-Term Care Benefits $100,000 $100,000 Taxable Growth $30,000 Taxable Growth $30,000 Taxable Growth $30,000 TRANSFER Existing annuity into PPA-compliant ForeCare annuity Cost Basis $70,000 Cost Basis $70,000 Cost Basis $70,000 Traditional Annuity Traditional Annuity ForeCare Annuity

Simple New Business Process Fill out Medical Questionnaire and HIPPA form with your client Fax it to Global Atlantic Global Atlantic will call within 15 minutes (you can call interview team) Approval process is 30-45 minutes If approved, complete application Send to PCN (using PCN UPS slip)

Choosing an LTC Option Life Insurance with Rider Source of Funds: Child Age: 30’s through 70’s Frequency of payments: Annual What is important Benefit for Beneficiaries Long-Term Care Protection Access to premium

Traditional Life with LTC Rider Case Study Claudia: 70, good health Investable assets committed to income Michelle: 45, married both work Saving for retirement – Good income Concern of care for mom and impact on family

Choosing an LTC Option Life Insurance Source of Funds: Qualified Asset Age: Knowledge of income surplus Frequency of payments: Annual What is important Asset Protection for Beneficiaries Long-Term Care Protection Access to premium

Traditional Life Case Study John and Sue – age 70 $300,000 in IRA Don’t need RMD income to supplement retirement Concern of care and family burden

PCN: Your Source for LTC Planning We have the tools and the expertise to help Education Marketing and Communication Service And a dedicated team to help you every step along the way…

Education Our Internal Marketing Consultants can provide you education so that you can speak to your clients with confidence. In depth product education Sales ideas Competitive product analysis

Marketing Assistance Producers Choice has a Creative Design Team here to assist: Promotional materials Client-friendly marketing materials Event invitations And much more…

Client Communication We have client friendly marketing pieces available for your use Surveys Handouts Marketing pieces

Client Educational Event Planning Step by step process Assistance in picking a venue Personalized event invitations Guest speaker

At Your Service Underwriting assistance Dedicated case managers UPS service