Hybrid LTC Strategies Copyright © C.O.R.E. GROUP USA, INC. and C.O.R.E. Marketing, Inc. All rights reserved. Marvin Johnson Relationship Manager CORE GROUP USA Broker Use Only – Not for use with public.

Lincoln MoneyGuard ® Competitive Pricing OneAmerica Asset-Care ® & Annuity Care ® Joint contracts and IRA assets Nationwide CareMatters All Cash Benefits Carriers and Products

Success Story #1 Cash Benefits Profile - age 50 to 65, high income Solution – NW CareMatters, 5% growth, 10 pay

Success Story #1 Cash Benefits Profile - age 50 to 65, high income Solution – NW CareMatters, 5% growth, 10 pay Value – at age 80, a guaranteed $970k benefit pool, almost $15k/mo CASH benefits paid regardless of expense incurred, can be used for any purpose. The Details: Female physician, age 55, planning for retirement funds CareMatters at $20,000 a year for 10 years. Full ROP when fully funded, initial death benefit over $400k. With a 5% compounding benefit and 5 year benefit period, at age 80, she has a benefit pool of $970,000 and a monthly cash benefit of $14,600. The client liked that all benefits are guaranteed and would be paid to her directly, regardless of the level of service she received. BTW, she opted for the 10 pay, even though she could afford a single pay and the benefits at age 80 would be $17k a month and a pool over $1.147 million.

Success Story #2 Lifetime Benefits Profile - age 65 to 75, minimum of $400-$500k assets Solution – OneAmerica Asset-Care ® III using his IRA asset

Success Story #2 Lifetime Benefits Profile - age 65 to 75, minimum of $400-$500k assets Solution – OneAmerica Asset-Care ® III using his IRA asset Value – Convert $100k IRA not needed for income. Provides LIFETIME $2,763 monthly benefit covering BOTH spouses. Initial ROP of $85k. The Details: Clients, both 68,had ample retirement income so this IRA was not needed for income; designated as an emergency asset, currently invested in CD. Repositioning the $100k CD to Asset Care III and adding a lifetime benefit rider provides coverage for both spouses with a monthly maximum benefit of $2,763. Clients realized this is only partial coverage, but an unlimited lifetime benefit that covered both of them was very appealing. Having 85% of the IRA asset available immediately if they changed their mind was also comforting. There is a tax free death benefit of $136,000 in the LTC benefits are never used. In 10 years the asset grows so that 95% of the allocation was available for surrender.

Success Story #3 Tax Free Annuity Benefits Profile - age 60 to 75, NQ annuity not needed for income Solution – Annuity Care ® II with enhanced LTC rider

Success Story #3 Tax Free Annuity Benefits Profile - age 60 to 75, NQ annuity not needed for income Solution – Annuity Care ® II with enhanced LTC rider Value – Repositions a NQ $100k annuity (basis of $65k) to a fixed annuity with a LTC benefit pool of $230k, providing a monthly TAX FREE benefit of $3,600 covering BOTH spouses. The Details: Couple, both 68 owned multiple Q and NQ annuities, several were older with significant gain. None of these were needed for income. Via a 1035 to Annuity Care II, they immediately more than doubled the pool available for tax qualified long term care benefits with coverage for 66 months. They liked the idea of avoiding taxes on the gain in the annuity, and that both of them were covered. Full ROP after surrender charge period, and in 20 year, monthly benefit of $4,431 and pool of $292k.

Single pay 2 years to 10 years 20 years Flexible funding solutions

Variety of funding sources Single pay 2 years to 10 years 20 years Annuities, Q and NQ IRAs Cash Value Life Insurance Flexible funding solutions

11 How would you pay for an extended care care event? What assets would you use first? If you required extended care services, what would be your biggest concern? What would be the impact to your family finances if you or your spouse needed extended care of 3, 4, or 5 years? How to start the conversation

Client Perceptions 12 I can afford to pay for long- term care expenses myself! Handling Objections I don’t want nursing home insurance! What if my premiums increase? What if I never need this coverage?

Handling Objections Nursing home insurance – All LTC plans provide benefits for home care, assisted living as well as for nursing home. Over 50% of new claims are for home health care, where clients are most comfortable and would like to remain as long as possible. Only 30% of new claims are for clients entering a nursing home. I can self-insure – These are self-insure products. The first benefits paid is the client’s money, but these solutions cap or limit the insured exposure, and are funded with no out of pocket expense. Combined with guaranteed death benefit and ROP, these solutions off a great package of leveraging and no risk. Increasing premiums – I can understand that concern if this were traditional LTC coverage, but one of the very nice features of all hybrid solutions is that they are fully guaranteed, premiums cannot increase and benefits can not decrease. What if I never use the coverage – With the hybrid solutions, some form of benefit will be paid, even if you never utilize the LTC benefits. Client has the option of changing their mind and getting all or part of their premiums returned, and of course the death benefit or annuity account value would be paid on death if the no LTC benefits paid.

How do you ‘Make it Happen’? Product knowledge

How do you ‘Make it Happen’? Product knowledge Must be proactive

How do you ‘Make it Happen’? Product knowledge Must be proactive Call your RM Rob Johnson, LTC Design Alan Bradley, Annuity Design

Your Next Steps Make a list of 5 clients. Discuss with your Relationship Manager CORE Group USA