1 LTC Planning Options… -Three ways you can fund your LTC plan 1. Use your own personal or family’s savings & investments - Self Insure - Self Insure 2. Medicaid - Impoverishment - Impoverishment 3. Insurance - Transfer the Risk & Spend the Ins. Company’s Money - Transfer the Risk & Spend the Ins. Company’s Money

2 Funding Your LTC Plan With Insurance Premium Based LTCI Traditional Long Term Care Insurance Pay a monthly or annual premium until you use it More robust coverage, benefits and options with increasing benefits to keep up with inflation Asset Based LTCI Annuity/Life Insurance with LTC Benefits with LTC Benefits (Hybrid/Combo Policies) (Hybrid/Combo Policies) Leverage money by repositioning an investment or “rainy day” account If care is never needed, cash value, annuity value or death benefit will be paid to a beneficiary

3 “Hybrid/Combo/Linked Benefit LTC Policies” -One Simple Solution for Long Term Care- Protection for individuals that are “Self Insured” Protection for individuals that are “Self Insured”  Two types: Life Insurance Based & Annuity Based  Helps those who can’t or won’t buy standard LTCI by creating a “STOP LOSS” on the spend down of their person savings.  Tax Free* withdrawals from personal savings fund or death benefit to pay LTC needs. (Regardless of the original cost basis)  Provides a suitable answer to the difficulty of getting consumers to respond to stand-alone LTC policies (*Pension Protection Act of 2006, effective Jan. 1, 2010)

4 Annuity/LTC Hybrid Annuity’s Accumulated Value (cash value) can be paid out as a tax free LTC benefit Annuity’s Accumulated Value (cash value) can be paid out as a tax free LTC benefit Can provide additional Tax Free LTC benefits (beyond the Annuity’s Accumulated Value) through options or riders Can provide additional Tax Free LTC benefits (beyond the Annuity’s Accumulated Value) through options or riders Provides leverage and protection for individuals that can not qualify to purchase stand-alone LTC policies Provides leverage and protection for individuals that can not qualify to purchase stand-alone LTC policies Any existing life ins. policy with a cash value or non- qualified annuity can be fully or partially exchanged for this product (Regardless of the original cost basis or gain) Any existing life ins. policy with a cash value or non- qualified annuity can be fully or partially exchanged for this product (Regardless of the original cost basis or gain)

5 Life/LTC Hybrid Death Benefit can be paid out as a true living benefit for LTC expenses (tax free) Death Benefit can be paid out as a true living benefit for LTC expenses (tax free) If not used for LTC expenses, the life insurance death benefit is still available and paid out when insured passes away If not used for LTC expenses, the life insurance death benefit is still available and paid out when insured passes away Can provide additional Tax Free LTC benefits (beyond the Death Benefit’s Value) through options or riders Can provide additional Tax Free LTC benefits (beyond the Death Benefit’s Value) through options or riders Provides an simple attractive alternative for consumers that don’t respond to stand-alone LTC policies Provides an simple attractive alternative for consumers that don’t respond to stand-alone LTC policies Any existing life ins. policy with a cash value can be fully or partially exchanged for this product (Regardless of the original cost basis or gain) Any existing life ins. policy with a cash value can be fully or partially exchanged for this product (Regardless of the original cost basis or gain)

6 Money-back guarantee Paid “income tax-free* to Providing at least 6 years of coverage (Return of Premium) your named beneficiary of $3,988 in income tax-free monthly benefits for Long- Term Care Example of Life Insurance Based: “Linked Benefits LTC Policy” One simple approach for long term care Sample: Male age 55