1. Retirement Protection Insurance Four part case study that uses alternatives to using traditional long term care FP 1019

2. Information about Case Studies Case studies and benefit values represented as part of this presentation are based on hypothetical client age, gender, underwriting classification and interest rate assumptions and are solely intended to introduce four separate LTC concepts using fixed life insurance contracts or fixed annuities. Life insurance death benefits, annuity cash values, and long term care benefits will always vary based on a variety of factors including age, gender, health, and other underwriting factors. Consumers should consult specific information regarding the products they are considering. Important Tax Information This presentation contains statements regarding our current understanding of the law in general regarding tax treatment of certain financial assets and transactions and is not to be considered legal or tax advice. Purchasers should consult with their legal or tax adviser regarding their individual situations before making any tax-related decisions. 2

3. Take a look at 4 different people Single Female- Has liquid assets but doesn’t want to burden children with medical issues. Married Couple - Has liquid assets. They have no LTC coverage and aren’t convinced that buying a LTC policy is necessary. Single Female- Has income needs met and owns nonqualified annuities and may just be looking for the best interest rates. Single Female- Has sufficient income for retirement, and is taking RMDs that she doesn’t need out of her IRA. 3

4. Person Number One Her Name is Rachel, she is 65, and just started taking social security Her income needs are met She has assets such as CDs, IRAs, Bonds, and she is very independent Rachel has no LTC coverage. There is a solution that gives her coverage that she needs while also possibly increasing her children’s inheritance. 4

5. Rachel – A Case Study MoneyMarket- Interest Rates are low let’s reposition into something more cost effective. 5 Take 50K out ROP $100K CD Earning 2% Tax Free 250K LTC = Tax Free 83K Inheritance or

6. Reaction- So what you are really saying is….. At 2% I would never get to 250k to help pay for part of my health cost if I ever need it. My children will get part of the growth if I don’t use it. If CD rates go up then I can cash this plan out and buy something new. 6

7. Person Number Two Married Couple (Rachel and George), she is 65 and he is 70, and they are both on social security. Their income needs are met and they have savings They have a moneymarket account, CDs, real estate, and mutual funds. Neither George or Rachel have any LTC coverage. George is not interested in buying coverage but Rachel is concerned that their children might have to intervene at some point. 7

8. CD rates are low and real estate is hard to liquidate if a health issue happens 8 George and Rachel 100K Tax Free 207K LTC 207K Tax Free Inheritance ROP plus Cash Value Growth = or

9. Reaction-So what you are really saying is….. Our cash is still growing but I have 207k we are counting on if we need it for LTC expenses. If we never use the money for our care, our kids will inherit the 207k tax free. If rates go up or we need this cash for emergencies, there are opportunities to get our 100k back. 9

10. Person Number Three Her name is Gail, she is 65, and just started taking social security. Her income needs are met through her 401k and pension. She has assets in IRAs, fixed annuities, and Reits. She doesn’t have a lot of liquid assets. Gail has no LTC policy. Some of her annuities are earning very low interest rates and she is interested in how the PPA tax law changes can benefit her. 10

11. Gail A Case Study Since rates are so low, let’s focus on benefits. You can now take tax free money out of certain nonqualified annuities. 11 50K Annuity 279K LTC Tax Free

12. Reaction- So what you are really saying is…. This has a rate that is growing like any other fixed annuity. If I pass away or need money out of this product, it works just like other fixed annuities. The advantage is that if I use it for LTC the money comes out Tax Free and the pool of money is greater than the other fixed annuities that you offer. 12

13. Person Number Four Her name is Kita, she is 72, she is on social security, and she has just started taking RMDs. Her income needs are met She has IRAs, CDs, and mutual funds Kita has no LTC. Kita is taking RMDs out of IRA and she is not using the RMDs for income. 13

14. Kita A Case Study Kita has to take RMDs, so since rates are low let’s reposition some of her IRA money into a plan that will put some of her money to work for her. 100K IRA Taxable 149 LTC Partially Tax Free 149K Tax Free

15. Reaction- So what you are really saying is…. I have to take my RMD there is no way out of it. I can do a once and done so that every year as my money starts to spend down, I’m buying tax free LTC. If I die tomorrow my kids get what’s left of the IRA plus the paid up life insurance. Also, I now understand that IRA’s pass to my children at a possible higher tax rate than what I’m currently paying, so life insurance is a better wealth transfer option. 15

16. LTC Alternative Planning what is right for me? Step one: Talk about how long term care cost could impact your retirement income and possibly wipe out your legacy. Step two: Make sure that you can answer no to the knock out health questions Step three: Decide what is most important to you: Cash Growth, tax free inheritance for your children, liquidity options, or jt. Options Step four: Decide which asset you would liquidate first if an LTC event happened to you. Step five: Work with your representative to help you self- insure a better way! 16