1. Impact Sales University Nationwide PlanLab Award Winner Copyright © 2002-2007 Impact Technologies Group, Inc. | All Rights Reserved | www.impact-tech.com | Ph: 800.438.6017

2. Current Situation Client is a 67 year old widow, in good health. She has ample income from the survivorship benefits from her deceased husband, as well as her own retirement income from being a retired teacher. Her husband had been saving money for years for an “emergency” and held it in a CD. That emergency money is now worth $286,000. The client had 3 concerns. 1)She planned to use the emergency money for long-term care should she ever need it. 2)If she never needs the emergency money, she did not want to leave the money in a lump sum to her son who has issues with a bad marriage and bad spending habits. 3)Would she have enough money to keep up her current life style if she lived too long? Copyright © 2002-2007 Impact Technologies Group, Inc. | All Rights Reserved | www.impact-tech.com | Ph: 800.438.6017 Advisor is faced with fulfilling multiple concerns.

3. Problem Statements The client wanted to control how the remaining money would be distributed to her son after her death. She also wanted to be sure there was money for long- term care AND for her son to inherit, if possible. She had looked into long-term care policies, but did not like how they worked and did not care to lose the money if she never needed LTC. Lastly, she wanted to address a solution to living too long. Copyright © 2002-2007 Impact Technologies Group, Inc. | All Rights Reserved | www.impact-tech.com | Ph: 800.438.6017 Advisor must overcome client’s LTC dislikes but still address the need…

4. Recommendations Copyright © 2002-2007 Impact Technologies Group, Inc. | All Rights Reserved | www.impact-tech.com | Ph: 800.438.6017 The advisor suggested the following solution: Use $100k of the CD to purchase a life insurance policy with a long term care rider that would allow her to use the death benefit herself if she ever needed LTC, but if she did not, would go to her son as a tax-free death benefit. The $100k would purchase a $281,751 death benefit (including the LTC rider). If she needed LTC she would be able to collect up to $5,635 per month for 50 months. If she did not need LTC (or just some), her son would inherit any remaining death benefit. The advisor also had her fill out the supplemental beneficiary form that would dictate how her son could receive the money. Then he suggested the remaining $186k be used to purchase an annuity, with the beneficiary form on that product instructing that the death benefit must be distributed as a stretch over the son’s life expectancy. Copyright © 2002-2007 Impact Technologies Group, Inc. | All Rights Reserved | www.impact-tech.com | Ph: 800.438.6017 Advisor provides multiple solutions to address the client’s needs and concerns.

5. Results Annuity Strategies software made the case. When the client saw how much her son would get and how he would get it, she was thrilled! The broker also showed her that the $286K invested in the CD at a net after taxes of 4% would only be worth $579,384 if she died at age 85. Copyright © 2002-2007 Impact Technologies Group, Inc. | All Rights Reserved | www.impact-tech.com | Ph: 800.438.6017 Annuity Strategies helped the advisor make the sale!

6. Bonus With the new plan, this is what she purchased: 1.Life Insurance - $281,761 which did double duty as a pool of money for LTC needs (if needed) and a tax free inheritance if she did not need LTC (interest in the distribution would be taxable). 2.Annuity – which could be used for income if she lived too long, but if not needed would give her son a total from the stretch of $1,214,717. 3.Peace of mind knowing the money would be distributed to her son in a manner that would last his lifetime. Commission earned between the 2 sales was almost $16,000. ( over $9k on life sale and $6,700 on annuity) Copyright © 2002-2007 Impact Technologies Group, Inc. | All Rights Reserved | www.impact-tech.com | Ph: 800.438.6017 Nice return on investment to help with that software renewal!