MutualCare Solutions LTCi Product Launch September 16, 2013 For producer use only. Not for use with the general public.

Product Overview For producer use only. Not for use with the general public.

WHAT: New Product to replace LTC09 portfolio  Control risk / cost sharing  Sex – Distinct Rates  Consistency among states (Interstate Compact-37 state approval- (39 is a possibility)  Clarification of benefits  Consolidated Portfolio (Mutual only) For producer use only. Not for use with the general public.

Benefits are tailored to fit the target market…. Ages Low or no inflation Shorter BP’s Flexibility to dial in premiums For producer use only. Not for use with the general public.

Mutual Care Custom Solution – Provides extensive premium solve capabilities – Pool of Dollars (Policy Limit) – $50,000-$500,000 ($500 increments) – MMB- $1,500-$10,000 ($50 increments) – EP’s – 0,30,60,90,180,365 calendar days – 40% Cash- capped at max $2,400 – Inflation Options No inflation Compound only 1%-5% lifetime in.25% increments with buy-up 10,15,20 year on all options with buy- up – Riders 3x MMB ROP <claims ROP under 65 < claims ROP < claims NF –Shortened benefit period Security Benefit Shared Care 0 Day HHC Reduce HHC 50% or 75% Reduce ALF 50% or 75% Professional HHC Joint Waiver of Premium Survivorship Mutual Care Solutions Overview Mutual Care Secure Solution –Traditional selling approach –Benefit Multipliers 2,3,4,5 yrs –MMB- $1,500-$10,000 ($1 increments) –EP’s – 90,180, 365 calendar days –30% Cash – capped at max $2,400 –Inflation Options No inflation Compound only 3%,4%,5% lifetime 3%,5% 20 year –Riders 3x MMB ROP <claims NF –Shortened benefit period Security Benefit Shared Care 0 Day HHC Reduce HHC 50% or 75% Reduce ALF 50% or 75% For producer use only. Not for use with the general public.

Product Details- The Nuts and Bolts Issue Age – Tax Qualified Partnership Qualified –Based on: State approval Applicants issue age Inflation option For producer use only. Not for use with the general public.

Eligibility to Receive Benefits Must be chronically ill –Chronically ill means: (a)unable to perform at least two activities of daily living without substantial assistance from another person who is physically present with you, for a period that is expected to last at least 90 consecutive days due to a loss of functional capacity; or (b) require substantial supervision to protect yourself from threats to health and safety due to a severe cognitive impairment. Requires that a licensed health care practitioner in past 12 months certifies requirements are met –Activities of Daily Living include: Bathing, Dressing, Eating, Transferring, Toileting, Continence For producer use only. Not for use with the general public.

Maximum Monthly Benefit (MMB) Options: $1,500 -$10,000 per month $1 increments Policy Limit –Benefit multiplier determines policy limit Options: 24,36,48,60 months (Benefit multiplier X Monthly benefit = Policy limit) Ex: 36 (months) X $5,000 (MMB) = $180,000 (Policy limit) Mutual Care Secure Solutions Built-In Benefits For producer use only. Not for use with the general public.

Calendar day Elimination Period –Options: 90,180, 365 days –Begins on 1 st day covered service is received Cash Benefit –No elimination period to satisfy –30% of Home Health Care benefit –Initial maximum of $2,400 Can increase if inflation protection is added Cannot be used with International Benefit Cannot be used at same time as reimbursement benefits For producer use only. Not for use with the general public.

Home Health Care Options: 50%,75%,100% of MMB Personal Care Services Homemaker Services Professional Services –RN, Home Health Aide, Therapist Adult Day Care Services Facility Care Nursing Home 100% of the MMB Assisted Living Facility Options: 50%,75%,100% of MMB For producer use only. Not for use with the general public.

Respite Care –No elim period to satisfy Hospice Care –No elim period to satisfy Waiver of Premium –When receiving NH,ALF,HHC services at least 8 days a month International Benefit –Travel outside U.S., Canada or UK –MMB up to 12 months –Cannot use Cash Benefit Alternate Care –May pay for benefits not specifically listed in the policy –Must be recommended by Care Coordinator (i.e. Christian Scientists) For producer use only. Not for use with the general public.

Optional Benefits Inflation Options –3%,4%,5% Compound Lifetime –3%, 5% Compound 20 year –No inflation Shared Care –Must have identical policy/benefits –Access to partner’s benefit Leave 1 year of benefits available in partner’s policy For producer use only. Not for use with the general public.

Security Benefit –Provides 60% of the reimbursement benefit received each month –Does not reduce policy limit Waiver of Elimination Period for HHC –No elimination period to satisfy when receiving Home Health Care –Days in which the elimination period is waived for HHC or Adult Day Care will be used to satisfy the elimination period for other benefits under the policy For producer use only. Not for use with the general public.

Return of Premium 3X Monthly Benefit –Returns premium paid, but no more than 3 times the max monthly benefit minus claims paid –Excludes claims and inflation increases –Must be in force 10 years –If coverage decreased after issue, return is based on decreased amount Non-Forfeiture/Shortened Benefit Period –Policy must be inforce for 3 years –Stop paying premium –Continue coverage on reduced basis For producer use only. Not for use with the general public.

Policy Limit –$50,000-$500,000 –$500 increments Maximum Monthly Benefit (MMB) Options: $1,500 -$10,000 per month $50 increments Valid combination is generally based on value between 1%-4% of policy limit –Valid: $100,000 x 1.5% = $1,500 MMB (5.5 yrs) –Not valid: $ 5,000 MMB with a $100,000 policy limit = 5% (1.6 yrs) »In this example you can choose to decrease MMB or increase policy limit Mutual Care Custom Solutions Built-In Benefits For producer use only. Not for use with the general public.

Calendar day Elimination Period –Options: 0,30, 60, 90,180, 365 days –Begins on 1 st day covered service is received Cash Benefit –No elimination period to satisfy –40% of Home Health Care benefit –Initial maximum of $2,400 Can increase if inflation protection is added Cannot be used with International Benefit Cannot be used at same time as reimbursement benefits For producer use only. Not for use with the general public.

Home Health Care Includes: –Personal Care Services –Homemaker Services –Professional Services »RN, Home Health Aide, Therapist Adult Day Care Services Options: 50%,75%,100% of MMB Facility Care Nursing Home 100% of the MMB Assisted Living Facility Options: 50%,75%,100% of MMB For producer use only. Not for use with the general public.

Respite Care –No elim period to satisfy Hospice Care –No elim period to satisfy Waiver of Premium –When receiving NH,ALF,HHC services at least 8 days a month International Benefit –Travel outside U.S., Canada or UK –MMB up to 12 months –Cannot use Cash Benefit Alternate Care –May pay for benefits not specifically listed in the policy –Must be recommended by Care Coordinator (i.e. Christian Scientists) For producer use only. Not for use with the general public.

Optional Benefits Inflation Options –1%-5% Compound Lifetime with buy –up –1%- 5% Compound 10, 15, or 20 year with buy- up – All options offered in.25% increments –No Inflation Buy-up: –Increase allowed 1X per year –Total level of inflation maximum 5% –Available to lesser of 20 yrs or until age 75 –Not eligible if in the last 2 years, insured: Has had premium waived Has had policy paid-up Was chronically ill For producer use only. Not for use with the general public.

Shared Care –Must have identical policy/benefits –Access to partner’s benefit Leave 1 year of benefits available in partner’s policy Security Benefit –Provides 60% of the reimbursement benefit received each month –Does not reduce policy limit Waiver of Elimination Period for HHC –No elimination period to satisfy when receiving Home Health Care –Days in which the elimination period is waived for HHC or Adult Day Care will be used to satisfy the elimination period for other benefits under the policy For producer use only. Not for use with the general public.

Professional Home Health Care –Pays up to an additional 100% of HHC MMB for Professional Services Professional Services –RN*, Home Health Aide, Therapist Note: RN is limited to 365 days over life of the policy - Deducted from Policy Limit Non-Forfeiture/Shortened Benefit Period –Policy must be inforce for 3 years –Stop paying premium –Continue coverage on reduced basis For producer use only. Not for use with the general public.

Return of Premium 3X Monthly Benefit Returns premium paid, but no more than 3 times the max monthly benefit minus claims paid Excludes claims and inflation increases Must be in force 10 years If coverage decreased after issue, return is based on decreased amount Return of Premium < age 65 less claims Returns premium paid less any benefits if insured dies before age 65 Not available for applicants 64+ Return of Premium less claims Returns premium paid less any benefits upon insured’s death Not available for applicants 64+ For producer use only. Not for use with the general public.

Premium Savings Partner (both issued) –30% Partner (one issued) –15 % Preferred –15% Association/Sponsored Group/Producer –5% with comp offset For producer use only. Not for use with the general public.

Association/Sponsored Group Guidelines For producer use only. Not for use with the general public.

Membership requirements: –Must be an affinity group –100 or more members –Exist for 2 or more years –By-laws/officers/membership records –Have members who pay dues or fees on a regular basis and vote on officers or matters of policy For producer use only. Not for use with the general public.

Simplified membership levels –Reduced from 3 levels of Local/State/National to 1 level of 100 members Eliminated 3 month waiting period Eliminated form that was required with app –Required info incorporated on the app Changed production requirement Was 5 apps every 6 months Now 10 apps annually For producer use only. Not for use with the general public.

Examples of groups that qualify Affinity relationship by: profession, trade, business –Ex: Realtors, Accountants, Chambers of Commerce Other Sponsored Groups for consideration include: –Labor Unions, Alumni Associations, Credit Unions, Home Owner Associations For producer use only. Not for use with the general public.

Examples of Groups that won’t qualify Primarily consisting of members with hazardous occupations –Ex: Active Military, Police & Firefighters, Athletes Charitable/Philanthropic Organizations –Ex: American Heart Association, American Cancer Society Political and Religious Groups Commercial ventures – (employer/employee groups) Customers –Ex: Bank customers, credit card holders, gym members Formed for the purpose of obtaining insurance For producer use only. Not for use with the general public.

Common Employer Marketing Program For producer use only. Not for use with the general public.

5 or more people who share a common employer are eligible for a 5% premium allowance Once 5 person minimum is met- other employees of the same company are eligible to receive the 5% allowance No Group Approval necessary –Submit Common Employer Cover Sheet (M28404) with initial 5 applications –Indicate Common Employer allowance on application No Employer Sponsorship –Payroll Deduction* (PRD) not available *Title VII of the Civil Rights Act of 1964 is a federal law that prohibits employers to discriminate against workers because of race, color, national origin, religion, and sex. Therefore gender neutral premium rates must by offered with employer voluntary or sponsored plans through which employees purchase coverage. MutualCare Solutions does not have gender neutral premium rates. For producer use only. Not for use with the general public.

Transition Rules For producer use only. Not for use with the general public.

LTC09 applications dated on or after 9/16/13 or received in H.O. after 9/23/13will not be accepted Pending business will be processed as applied for –To obtain new product – a new application, forms etc… will be required along with a written statement advising the intent to withdraw current application Inforce PH’s must reapply for new product –Treated as Internal replacement –Client’s current attained age will be used For producer use only. Not for use with the general public.

Competitive Comparison For producer use only. Not for use with the general public.

Competitive Comparison MutualCare Solutions Genworth Privileged Choice Flex 2 John Hancock Custom Care III Transamerica TransCare III Benefit PeriodMonthlyDaily Benefit (Monthly cost rider) Daily Benefit Elimination Period0, 30, 60, 90, 180, 365 Calendar Days 30, 60, 90, 180, 365 Service Days Calendar Days rider 30, 60, 90, 180, 365 Service Days 0, 30, 60, 90, 180, 365 Service Days Cash BenefitBuilt-in, 30% or 40% of HHC (max $2400) noneCash rider with reimbursement (15% of monthly or 4.5% Daily benefit) Built-in, 10x Daily Benefit Return of Premium3 options: ROP 3x Initial MMB ROP at Death ROP at Death before age 65 2 options: Graded ROP after 10 years ROP to age 65 included ROP to age 67 included For producer use only. Not for use with the general public.

Competitive Comparison (continued) MutualCare Solutions Genworth Privileged Choice Flex 2 John Hancock Custom Care III Transamerica TransCare III Inflation1% - 5% in.25% increments Durations: Lifetime, 10/15/20 year FPO, 5%Simple, 3%/4%/5% Compound Benefit Builder, CPI, CPI to 75, 5% Compound 3%/5% Compound or Step-Rated BIO, Tailored BIO, Deferred BIO Rate GuaranteeNone 3 Years Discounts 30% Partner 15% Partner – one applying 15% Preferred Health 5% Producer, Association/Sponsore d Group/Common Employer Couples discount built into pricing 30% Partner 10% Preferred Health 5% Family 5%/10 Group/Association 5% Loyalty/Valued Client 30% Couples 15% Spouse/Partner applying alone 10% Preferred Health 5% Association Group For producer use only. Not for use with the general public.

Illustration Software For producer use only. Not for use with the general public.

Winflex –Available Day 1 –All distributions –Download on SPA MutualCare Solutions Software –Available –TBD –All distributions –Download on SPA For producer use only. Not for use with the general public.

Underwriting For producer use only. Not for use with the general public.

Consistency in Underwriting Risk selection will be consistent for all products upon 2013 product release. 100% APS for all products –Has become industry standard For producer use only. Not for use with the general public.

We have decreased the following waiting periods: For producer use only. Not for use with the general public.

In addition, the following updates and changes are included: For producer use only. Not for use with the general public.

In addition, the following updates and changes are included, continued: For producer use only. Not for use with the general public.

The following conditions have been added as uninsurable conditions: For producer use only. Not for use with the general public.

The following conditions are now eligible for a preferred rate: For producer use only. Not for use with the general public.