Winning in the Second Half of Life Welcome. Introduce yourself. Note to presenter: This workshop is designed to be used for only educational purposes. Certain disclosures are not included and regulatory approvals have not been obtained that would be necessary for the workshop to be used for purposes of sales solicitation and lead generation. When using this workshop, it is necessary that the educational perspective is maintained and that you avoid solicitation. Winning in the Second Half of Life 157060LTC 08/20/13

“Setting a goal is not the main thing “Setting a goal is not the main thing. It is deciding how you will go about achieving it and staying with that plan.” – TOM LANDRY Dallas Cowboys coach, 1960-1988 Speak to quote (optional)

“Planning is bringing the future into the present so that you can do something about it now.” – ALAN LAKEIN Speak to quote (optional)

What does it take to win in the second half of your life? What's the second half? It's whatever you want it to be. Maybe you'll focus on rest and relaxation. Maybe you won't. These days more and more people take up new pursuits, either professional or just for fun. Maybe you want to see the world or just the rest of the country. The second half is your opportunity to try new things, to not have to worry about the 9 to 5. To really focus on what you want to do. That involves planning. Today you'll hear about how long term care planning is an important cornerstone of a comprehensive retirement strategy.

Your priorities When you think about your financial security during retirement, which of the following is most important to you? Protecting my family against the financial impact of a long term care event Having enough income to sustain my lifestyle in the future Handling unexpected medical expenses The top two things we hear that people focus on when they think about their retirement are medical expenses and outliving savings. They want to be able to handle the rising cost of healthcare and have enough income to sustain their lifestyle. They want to protect their retirement lifestyle from a long term care event. What comes to your mind when you think about your retirement? (Take some answers from the audience.) Ask audience: What do you think is the reason for this? Another consideration is the impact that a long term care event will have on your family. How would an unexpected long term care event affect people you love?

A common challenge Extended care/long term care Do you know anyone who needed long term care? Do you believe it could happen to you? As baby boomers are getting older many of us have experienced a family member or a friend who needed long term care. Do you know anyone? (Ask some members of the audience to share the story.) Here is a question I want you to think about: Do you believe you may need long term care? Winning in the Second Half of Life

People are living longer Average life expectancies continue to increase As you think about this question consider that people are living longer. When you live longer, a couple of things may happen: 1) Your health declines – it’s not something people like to think about, but may be a fact of life 2) You need more money to maintain the lifestyle you want Did you know that in 1900 the average life span was 47? Today, it’s closer to 80. That’s a lot longer to spend enjoying retirement. But that’s also time that you’re not earning income. And paying for an unexpected long term care event can have a big impact to even the best retirement strategy. Today we’re going to focus on why it’s important to talk about and plan for unexpected long term care expenses in retirement. Source: Geobase: The World Life Expectancy (2013) – top 100+. Accessed 08/20/13 http://www.geoba.se/population.php?pc=world&type=015&year=2013&st=rank&asde=&page=1 =

The reality of living longer Living a long life is more of a reality today. Living longer is not always synonymous with living better. Living longer may mean we need long term care. Preparing for a long life is a necessity. The longer we live, the more likely it is that we may need someone to help take care of us. Who will take care of me and where do I want to receive care? How will the care be paid for? What impact will this have on my family and our finances? The good news is that you will probably live a long life. With the medical field making huge advances on diseases and conditions that years ago might have been fatal, life spans are increasing. While living a long life is something to hope for, it is not always synonymous with living better. Actually, the longer we live, the likelier we are to need someone to help take care of us. You should begin to build a strategy to address these questions: “Who, where and how will that care be delivered,” if you need it. While you plan to live a longer life, why be caught without answers to questions that many people face today? “How will I pay for care, if I need it?” “Where will the money come from?” Think about the potential impact to you and your family. What could happen, if you choose not to put a solution in place for a potential long term care event?

Planning for long term care Living a long life is a possibility. Planning for it is a necessity. Part of the plan is including a strategy for long term care.

What is long term care? Defined as the assistance or supervision you may need Because you are not able to do some of the basic Activities of Daily Living (ADL). And/or because of Accidents Chronic illness Aging Strokes A severe cognitive impairment, such as dementia, Alzheimer’s disease or brain injury Other chronic conditions Long term care can be received at home, in the community or in a nursing home or assisted living facility. Long term care covers a wide range of supportive services provided to those who are not able to care for themselves due to a chronic illness, disability or severe cognitive impairment. The services are expected to last at least 90 days. Long term care is not just an issue that affects older Americans. Many people are at risk not only of having a family member in need of long term care, but also of needing some type of assistance themselves. It can also be described as help with some of the activities associated with day-to-day living, better known as Activities of Daily Living. Ask the audience: What are some of the health issues that could trigger the need for long term care? What was the first thing you did when you woke up this morning? While long term care (LTC) can include nursing and some medical care it addresses the help needed with the activities we do every day, like getting out of bed, bathing and dressing. The other acts are eating, toileting and continence. Most of us take those things for granted today, when we are in good health, but think what would happen if you were in an automobile accident, for example, and unable to bathe or dress yourself, or get in and out of bed. Where would you turn for help? Assisted living facilities (referred to as Residential Care Facilities in California)

Long term care is a reality AT LEAST 70% 3.9 4-8 OF PEOPLE YEARS YEARS People over 65 will need long term care services.1 Average length of long term care claim lasting longer than one year.2 Average life expectancy after Alzheimer’s disease diagnosis after age 65.3 Speaker option: read points on slide. Ask: Has anyone here had a caregiving experience – a loved one whose health has declined, and they needed extra help – or know someone who has? (See if an audience member is willing to share their story.) It’s possible that you or a loved one will experience the need for extended care, which can include long term care, in your lifetime. Statistics show that at least 70% of people over 65 will need long term care services at some point. And the average length of that care: almost 4 years is the average length of the majority of our claims, and the average life expectancy after an Alzheimer’s diagnosis after age 65 is 4-8 years. And anyone who has gone through something like this with a loved one knows how draining it can be – financially and emotionally. But whatever the chances of needing care, don’t you want to be protected? We’re going to examine this a little further and talk about how advance planning can help you continue your retirement on your terms even with an extended long term care event. 1 Medicare & You, National Medicare Handbook, Centers for Medicare and Medicaid Services, Revised November 2012 2 Claims data for Genworth Life Insurance Company and affiliates – December 1974 - December 31, 2012 3 Source: 2012 Alzheimer’s Disease Facts and Figures, Alzheimer's Association, March 2012

And it’s getting more expensive Annual median cost of care in the United States for this year and in 20 years.* z (Speaker: You may replace future median national costs with future local costs using the current Genworth Cost of Care Survey results. Or you may add a duplicate slide with local cost if you do not have an Internet connection to view the Cost of Care tool live.) Speak to slide. (44 hours/week, licensed home health aid) (private room) Assisted living facilities (referred to as Residential Care Facilities in California) Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs. *Estimates how much care might cost based on 5% annual growth rate.

Cost of Care Survey Optional slide This is a hyperlinked deck; interactive Cost of Care map available with an Internet connection. Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.

Home Care How much it costs depends on your location Optional slide Home care can be comprised of home maker services or a home health aide. Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.

Assisted Living How much it costs depends on your location Optional slide Private Room Assisted living facilities (referred to as Residential Care Facilities in California) Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.

Nursing Home How much it costs depends on your location Optional slide Private Room Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.

A challenge many of us share At least 70% of people over 65 will need long term care services at some point.1 Many believe it won’t happen to them and say if it does: So, long term care can be very expensive. Now, you have a few different options to help pay for that care. Some avoid building a strategy because of the belief that it would not happen to them. Basically, by avoiding the risk, living a long life and needing care how do you think this person is paying for long term care? – If they get the answer: Yes you are correct – you are essentially self-insuring. – If no answer: This question makes people think – if you were thinking that you are really self-insuring – you are right. 1 Medicare & You, National Medicare Handbook, Centers for Medicare and Medicaid Services, Revised November 2012

How would you pay for long term care? LTC ? Self Funding Care can be expensive and can consume big chunks of money you may have wanted to use for something else or that you may have saved for as retirement income. If your plan is to pay for long term care, you will need to consider the cost for long term care for let’s say a 3 year nursing home stay, as well as inflation and living expenses for you and your family. Then you need to decide which assets you will draw from so you can set aside money to pay for care. It will then become part of your retirement strategy. Your third option is to transfer some or all of the risk. There are products available that may have traditionally been thought of as “nursing home insurance” but really can be thought of as asset protection products because they can cover so much more and provide options when it comes to your care. They can provide a variety of benefits to help you maintain your lifestyle and have choices when it comes to your care – and help protect your assets for you and your family. Winning in the Second Half of Life

Long term care funding options Private/Family Support Public Programs Self Funding Family members or friends may provide care Medicare and Medicaid* programs Set aside money from a retirement strategy Private/Family Support People may look to family members or friends to provide care. Families may help because it’s the right thing to do. When making the decision of who should provide care, there are some important considerations, from where these individuals live, to whether they have the time and ability to provide care. In addition, the physical, financial and emotional effects of providing care are also important factors to keep in mind. Public Programs Remember that public programs have limitations. Medicare generally covers skilled nursing home care after a hospital stay of at least three days, and its coverage for other long term care services is very limited. Medicaid (referred to as Medi-Cal in California) does contribute toward long term care, but requires recipients to use their income to pay for care and spend down most of their assets to qualify. Self Funding Care can be expensive and can consume big chunks of money you may have wanted to use for something else or that you may have saved for as retirement income. If your plan is to pay for long term care, you will need to consider the cost for long term care for let’s say a 3 year nursing home stay, as well as inflation and living expenses for you and your family. Then you need to decide which assets you will draw from so you can set aside money to pay for care. It will then become part of your retirement strategy. Another option is to transfer some or all of the risk. There are products available that may have traditionally been thought of as “nursing home insurance” but really can be thought of as asset protection products because they can cover so much more and provide options when it comes to your care. They can provide a variety of benefits to help you maintain your lifestyle and have choices when it comes to your care – and help protect your assets for you and your family. *Medicaid is referred to as Medi-Cal in California

Long term care funding options Traditional Long Term Care Insurance Accelerated Benefit Rider for Long Term Care Services* Linked Benefits Solution Specifically designed to pay for long term care Can provide tax-free reimbursement for covered long term care services Combine benefits of life insurance and long term care insurance Traditional Long Term Care Insurance (LTCI) Long term care insurance can be a practical and cost-effective way to help pay the high costs of long term care services. It can help you gain control by helping you to: • Maintain independence so that you don't become a burden on your family • Maintain more control over how you spend your savings • Have more choice in who provides your care and where you receive it Linked Benefit Products A Linked Benefits policy provides a convenient way for you to purchase both life and long term care insurance in a single policy. When you purchase a Linked Benefits policy, you immediately create a death benefit for your beneficiaries and a pool of money to reimburse expenses for covered long term care needs. Life Insurance with an Accelerated Benefit Rider for Long Term Care Services This product helps you manage risk and build financial flexibility by helping you provide a death benefit for your beneficiaries. Unlike many life insurance policies, policies that offer an optional Accelerated Death Benefit Rider for long term care services can help you manage unexpected long term care expenses. *An optional rider that can be added to some life insurance policies.

Planning now can help you win in the second half 1 What’s your written strategy? How will the costs of extended care impact your portfolio and your family? 2 So, have the conversation – with your family and with your financial professional. What’s your written strategy for care? How will the costs of care impact your portfolio and your family? Answering these questions and putting them into a written plan will help you and your family take action on the steps you need to take to be prepared for long term care. It will also give you a sense of security knowing that you have a strategy and your family knows your choices. Planning now can help protect you in the future. Winning in the Second Half of Life

Have the conversation So you may ask, what should I do next? Talk with your family and a financial professional about strategies for long term care. There are several great Let’s Talk tools to help you get started with your retirement conversations. Use them to plan the life you want – and to help you think through some of those risks or eventualities you may be worried about. Also, to determine the cost of care go to genworth.com/costofcare (or genworth.com/cocpro). You can look at the current cost of care in your area and can look at what those costs will be in the future. (Note to presenter: Add this if you are omitting the next slide. If you are keeping the next slide, this copy will be addressed in the closing: Thank you for your participation and for attending this workshop.) Invite questions or comments. Let the attendees know you are also available after the workshop to answer questions.

Begin your written plan today Do it for yourself… And do it for your family Help protect your retirement portfolio and assets Help protect your family’s goals Omit for shorter presentation. Speak to slide. Thank you for your participation and for attending this workshop. (Invite questions or comments. Let the attendees know you are also available after the workshop to answer questions.)

Genworth, its affiliates and representatives, do not provide tax advice. You should consult a legal and/or tax professional for information relating to your particular situation. (This is the LTC disclosure slide. Please show at the end of the workshop.) Insurance and annuity products • Are not deposits. • May decrease in value. • Are not insured by the FDIC or any other federal government agency. • Are not guaranteed by a bank or its affiliates. ©2013 Genworth Financial, Inc. All rights reserved. Insurance product is based on the claims-paying ability of the issuing insurance company.