Risk of Needing Care   40% of Americans receiving long-term care are working-age adults. (Where does the Population Live and Who Cares for Them? LTC: Diverse, Growing Population Includes Millions of Americans of All Ages,” U.S. General Accounting Office 1/01)   One-third of people having strokes are under age 65. (The News Tribune, 9/2001)   People of age 65 face at least a 40% lifetime risk of entering a nursing home - 10% will stay 5 years or longer. (HIAA, “Guide to LTCI,” 2002) Cost of Care and Average Length of Stay Nursing home costs are averaging over $58,000 per year 1 and with the average length of stay in a nursing home at 2.4 years 2, total costs can exceed $124, Mature Market Institute, "MetLife Market Survey on Nursing Home and Home Care Costs”, "The National Nursing Home Survey," National Center for Health Statistics, U.S. Department of Health and Human Services, June, Funding Long-Term Care   Money accumulated in pension, 401(k), and profit sharing plans - as well as stocks - is in jeopardy of being lost to long-term care expenses.   24.6% of long-term care expenses are paid for out-of-pocket. (Department of Health and Human Services, HCFA, Office of the Actuary, National Health Statistics Group, Personal Health Care Expenditures, 2001) Future Cost of Care (Calculated at a 5% compound factor) Do you plan on spending your hard-earned investments for long- term care expenses during your retirement years? Comparison of Risk The risk is more common than you think. Compare the odds with other types of personal insurance. Why would you handle the risk of long-term care any differently? Nursing Home Facility providing all levels of care Including medical assistance. Home Care Care provided in the home by Nurses, Home Health Aids, Occupational Or Physical Therapists, and/or family members. Assisted Living Precludes Independent Living Insured does not need level of care provided in a Nursing Home Long-term care is custodial care that can be provided in: Seattle Pacific University will offer a second opportunity to enroll in long-term care insurance with guaranteed issue* (no health questions) from March 22, 2004 to April 30, 2004.YearAge Annual Rate Paid to Age 84* $348.00$15, $636.48$24, $963.48$37, $1,612.80$49,997 The Cost of Waiting to Purchase LTC Insurance Based on 3 Year Plan, $3000 Monthly Benefit, 5% Compound Inflation Protection House Fire 1 in 1200 Auto Accident 1 in 240 Long-Term Care 1 in 2 Disability 1 in 8 *Guarantee Issue offered to benefit eligible employees not previously declined for coverage. *The average age of needing care is age 84.

Planning for the Unpredictable. Important Features of SPU’s Benefit for Long-Term Care   Assisted Living Facility – 100% of benefits will be paid if care is received in an assisted living facility licensed by an appropriate agency (if required) to provide ongoing care and services.   Nursing Home Facility – 100% of benefits will be paid if care is received in a long-term care facility or nursing home. This is an institution or a separate part of the hospital that provides skilled, intermediate or custodial care under state licensing and certification laws.   Professional Home Care – 100% if benefits will be paid if care is received in the home, including visits by a licensed home health care provider during which skilled nursing care, physical, respiratory, occupational, dietary or speech therapy or homemaker services are provided.   Portability at group rates – When an employee retires or leaves the company, the insurance company will bill directly to the designated home address. Premiums and benefits will remain the same as purchased.   Pre-existing conditions – Any health condition the active employee had prior to the effective date of the policy will not be excluded from the policy.   Guaranteed Renewable – The policy cannot be canceled or terminated because you get older or your health deteriorates, as long as your premiums are paid.   Tax Qualified Plan – No taxes are paid on benefits received up to $220 a day. In certain states, the law allows employers to take advantage of the tax credit or tax deduction.   Waiver of premium – Insurance provision that allows the insured to stop paying premiums during the time that benefits is received. What’s The Cost? When considering a plan that’s best for you, ask yourself these questions:   How long do I want the care to last? (Benefit Duration)   How much money do I want for care? (Monthly Benefit)   Do I want my benefits to keep pace with inflation? (Compound Inflation Protection) Your individual cost for insurance will depend on your age on the effective date and on the plan and options you choose. The chart below provides an example plan design and rates for selected ages. Seattle Pacific University will offer a second opportunity to enroll in long-term care insurance with guaranteed issue* (no health questions) from March 22, 2004 to April 30, Sample Age Monthly Rates based on 3 year duration, $3000 per month, 90 Day Elimination Period, No Inflation 25$ $ $ $ $51.90 SPU Sample Rates “Long-term care is generally referred to as “custodial care,” a supportive type of care for people who are cognitively impaired or who are unable to perform activities of daily living, such as bathing and dressing, due to an accident, an illness or just advancing age.” Plan Design Features Voluntary Base Plan Your Buy Up Options Nursing Home Facility Monthly Benefit Amount: $1,000 $2,000 to $8,000 Assisted Living Facility Benefit Percent: 100%100% Professional Home Care Benefit Percent: 100%100% Facility Benefit Duration: 3 Years 6 Years and Unlimited Elimination Period: 90 Days 5% Compound Inflation: None 5% Compound Inflation SPU Plan Design