JOSHUA DELGADO EXTERNAL ADVISOR CONSULTANT COMPEDGE ONEAMERICA ASSET CARE JOSHUA DELGADO EXTERNAL ADVISOR CONSULTANT COMPEDGE

One America Asset Care Why Long Term Care? THE 2Q11 SUNAMERICA RETIREMENT RE-SET SM STUDY CONDUCTED BY HARRIS INT-ERACTIVE SURVEYED A NATIONAL SAMPLE OF ADULTS AGE 55+.

One America Asset Care Why Long Term Care? How Much Does LTC Cost? How Likely Will One Need LTC1? The Expense for One Year of Long Term Care How Long Will LTC Be Needed1? 1U.S. Department of Health and Human Services National Clearinghouse for Long Term Care information website.

One America Asset Care But LTC sales are down… Industry annual Long Term Care Insurance sales are down 69% since 2012 Source: LIMRA

One America Asset Care Unfavorable health history Prohibitive Premiums Factors Impacting LTC Insurance Sales: Unfavorable health history Prohibitive Premiums Today Tomorrow Use it or Lose it

One America Asset Care Life Insurance with Chronic Illness Rider Options outside of Traditional LTC Insurance: Life Insurance with Chronic Illness Rider Pros: Underwriting Primarily Based on Mortality not Morbidity If you don’t use it you don’t lose it Cons: Not true LTC as benefits typically only paid for permanent 2 of 6 ADLs Benefit Period Flexibility & Inflationary Protection N/A No shared care, partnership program, bed reservations, care coordinator, etc.

One America Asset Care Annuity with Confinement Doubler Options outside of Traditional LTC Insurance: Annuity with Confinement Doubler Pros: No Underwriting Option for older/uninsurable clients Cons: Only covers confinement (no in-home care) Double only last for specified time or until Account Value Hits $0 No benefits of Traditional LTC (see Chronic Illness Rider) Requires Lump Sum

One America Asset Care One America Asset Care IV Options outside of Traditional LTC Insurance: One America Asset Care IV Pros: Lifetime or Short-Pay Premiums can never increase If you don’t use it you don’t lose it (Life Insurance Death Benefit) Ability to cover either single or joint lives Bed Reservations, Care Coordination, Caregiver Training, Supportive Equipment, Home Health Care, Homemaker Services, Hospice Care, Adult Day Care, Respite Care & International Care (state specific) are all included. COB Rider available to extend base benefit period via a doubled or lifetime benefit COLA is available

One America Asset Care One America Asset Care I Options outside of Traditional LTC Insurance: One America Asset Care I Pros: One-time lump sum premium Return of Premium (discounted benefit depending on acceleration of benefits) If you don’t use it you don’t lose it (Life Insurance Death Benefit) Ability to cover either single or joint lives Bed Reservations, Care Coordination, Caregiver Training, Supportive Equipment, Home Health Care, Homemaker Services, Hospice Care, Adult Day Care & Respite Care all included. COB Rider available to extend base benefit period via a doubled or lifetime benefit COLA is available

One America Asset Care One America Asset Care I & IV Options outside of Traditional LTC Insurance: One America Asset Care I & IV Cons: Not part of Partnership Program Initial Premium on an average case will be 5-10% higher than Traditional LTC COLA Options for Base Policies are less flexible than Traditional LTC

One America Asset Care Indexed Annuity Care A 3rd Option with One America… Indexed Annuity Care One-time lump sum premium No fees (i.e. M/E/A) If you don’t use it you don’t lose it (Underlying FIA) Ability to cover either single or joint lives Bed Reservations, Care Coordination, Caregiver Training, Supportive Equipment, Home Health Care, Homemaker Services, Hospice Care, Adult Day Care & Respite Care all included. COB Rider available to extend base benefit period via a doubled, tripled or lifetime benefit COLA is available on COB Rider (Base receives 1% COLA + Credited Growth) PPA Compliant Simplified Underwriting

Asset Care IV Case study The Clients: Male – Age 55 & Female – Age 55 Wish to fully retire @ 62 Income & Life Insurance Needs met $635k in qualified sources Looking at covering LTC need BUT hesitant due to no immediate need, potential costs and lack of flexibility if not used for LTC. Here we have both a husband and wife, age 55 who which to retire at 62. For the purposes of our case study today we are going to assume their income and survivor needs are taken care of and that they see value in LTC BUT are hesitant to make such a move for many of the same reasons Robin already mentioned: High Potential Costs Use it or Lose It as well as a 3rd thing which is They do not see an immediate need. Now Robin, covered the first two issues, along with insurability, in her presentation but let me speak for a second to the 3rd issue listed. This is a big deal because clients typically don’t see value in making a LTC Insurance decision in their 50s but often times wait until it is too late to put a plan in place before costs & health issues making purchasing such a plan prohibitive. The reason we love this idea for the peak accumulation stage vs later stages is that clients in their 50s not only tend to have less budgetary issues but they are younger and therefore healthier and that is the bread and butter age for Asset Care! The key here is showing them that while they may not have an immediate need for LTC coverage how such a decision can set them up to best protect their assets long term.

Asset Care I & IV summary Hybrid, Life-Based Long Term Care Insurance Premiums are guaranteed to never go up Lump Sum, Short-Pay (10-20) or Lifetime Pay available Death Benefit if not used for LTC (cash surrender value also available) COB Rider allows for double of benefit period OR lifetime benefits So in summary, here are the benefits of the Asset Care products for those clients of yours in the 50-60 age range (60+ is available) looking to tackle their long term care needs: Premiums are guaranteed to never go up Lump Sum, Short-Pay (10-20) or Lifetime Pay available Death Benefit if not used for LTC (cash surrender value also available) COB Rider allows for double of benefit period OR lifetime benefits Now instead of an advisor panel we thought we would pause and take on questions so please feel free to ask away!

THANKS That is all! Thank you for your time today and let me know if you have any questions I can answer. Thanks! Phone: 800-431-4245 email: sales@compedgeusa.com