1. EXPLORING THE OPTIONS OF ASSET-BASED LTC
INSURANCE

2. A Couple stories A Few Facts Several Options

3. Monthly Costs: Michigan – State Median (2016)
Home Healthcare
2016
Homemaker Services¹
$3,861
Home Health Aide¹
$4,004
Adult Day Healthcare¹
Total LTC Benefit Period¹
$1,733
Assisted Living Facility²
$3,563
Nursing Home Care
Semi-Private Room¹
$7,604
Private Room¹
$8,182
Genworth 2016 Cost of Care Survey, conducted by CareScout®, April 2016
¹ Based on annual rate divided by 12 months
² As reported, private, one bedroom

4. Statistic
68% of nursing home residents and 72% of assisted living residents are women*
*Long-Term Care Services in the United States: 2013 Overview. National Center for Health Statistics
**Centers for Disease Control and Prevention. Nursing Home Care FastStats

5. Statistic The average nursing home stay is 835 days**
**Centers for Disease Control and Prevention. Nursing Home Care FastStats

6. Exploring the Options

7. Traditional LTC
Non-guaranteed premiums
No cash value
No death benefit

8. Asset Based LTC Guaranteed premiums Cash value Death benefit T
Tax-free leverage for long-term care
Income tax-free reimbursements for qualified long-term care expenses
Guaranteed premiums
Cash value
Death benefit or
Legacy
An income tax-free death benefit for her beneficiaries, which would be reduced by any loans, withdrawals or benefits paid or
Return of premium
Provides cash value options

9. Available Asset-Based Products
ForeCare
MoneyGuard II
CareMatters
Life insurance: Asset Care I, II, III, IV
Fixed annuity: Annuity Care I, II
Indexed annuity: Indexed Annuity Care

10. All work the same Reposition asset Spend own money first
Spend carriers money last
Return of Premium
Death Benefit/
Account Value
Long-Term Care

11. What matters most? Funding:
Forethought – ForeCare: annuity 1035 exchange
Lincoln Financial Group – MoneyGuard II: cash
OneAmerica – Asset Care III: qualified funds

12. ForeCare Fixed Annuity
Funding:
Cash
Annuity 1035 exchange
Chassis:
9 year fixed annuity
Features:
3 x leveraging for Premier class
2.65% fixed interest rate
Simplified underwriting
Individual or Joint

13. Pension Protection Act
Total Coverage
$300,000
Before the Pension
Protection Act*
After the Pension
Protection Act*
Additional
Coverage
$200,000
ForeCare
Multiplier 3X
When used for qualified Long-Term Care Benefits
$100,000
Taxable Growth
$50,000
Taxable Growth
$50,000
Tax-Free Growth
$50,000
TRANSFER
Existing annuity into PPA-compliant
ForeCare annuity
For Use
After-Tax
$87,500
Cost Basis
$50,000
Cost Basis
$50,000
Cost Basis
$50,000
Traditional Annuity
Traditional Annuity
ForeCare Annuity

14. Opportunity cost? Taxable Investment Tax-Deferred Investment
Value on 6/19/2016: $100,000
Assumed Annual Interest Rate: 5%
Years before the value of Taxable Investment is equal to or greater than the long-term care coverage provided by the ForeCare Fixed Annuity: 29 years
Taxable
Investment
Value on 6/19/2016: $100,000
Assumed Annual Interest Rate: 3%
Years before the value of Tax-Deferred Investment is equal to or greater than the long-term care coverage provided by the ForeCare Fixed Annuity: 37 years
Tax-Deferred
Investment
Single Annuity Deposit on 6/19/2016: $100,000
Long-Term Care coverage $300,000 available as of 6/19/2016
Assumed Rating: Premier
Maximum Monthly Benefit: $4,167
Federal Taxable Amount if use exclusively for long-term care expenses $0
ForeCareSM
Fixed Annuity

15. Growth of principal Non-Guaranteed Assumptions – END OF YEAR
Contact Value
Contract Withdrawal Value
Accelerated Benefit
Maximum Extended Benefit
Total Benefit
Maximum Monthly Benefit
$101,121
$93,031
$202,242
$303,362
$4,213
$102,254
$94,074
$204,508 $
$4,261
$103,400
$96,162
$206,800
$310,201
$4,308
$104,559
$98,286
$209,118
$313,677
$4,357
$105,916
$100,444
$105,731
$211,462
$317,193
$4,405
$108,114
$102,639
$106,916
$213,832
$320,748
$4,455
$106,9326
$104,871
$216,229
$324,343
$4,505
$109,326
$107,140
$218,652
$327,978
$4,555
$110,551
$109,446
$221,103
$331,654
$4,606
$111,790
$223,581
$335,371
$4,658
$113,043
$226,087
$339,130
$4,710
$114,310
$228, 621
$342,931
$4,763
$115,592
$231,183
$346,775
$4,816
$116,887
$233,774
$350,661
$4,870
$118,197
$236,394
$354,591
$4,925
$119,522
$239,044
$358,566
$4,980
$120,861
$241,723
$362,584
$5,036
$122,216
$244,432
$366,648
$5,092
$123,586
$247,172
$370,758
$5,149
$124,971
$249,942
$374,913
$5,207
$126,372
$252,743
$379,115
$5,265
$127,788
$255,576
$383,364
$5,325
$129,220
$258,441
$387,661
$5,384
$130,669
$261,337
$392,006
$5,445
$132,133
$264,266
$396,399
$5,506
$133,614
$267,228
$400,842
$5,567
$135,112
$270,223
$405,335
$5,630
$136,626
$273,252
$409,878
$5,693
$138,157
$276,314
$414,471
$5,757
$139,706
$279,411
$419,117
$5,821
$141,271
$282,543
$423,814
$5,886
$142,855
$285,710
$428,564
$5,952
$144,456
$288,912
$433,368
$6,019
$146,075
$292,150
$438,225
$6,086
$147,712
$295,424
$443,136
$6,155
Primary Insured’s Name: Valued Client
Current Age: 65
Gender: Male
State: MI
LTC Coverage: Single Life - Premier
Joint Insured’s Name: N/A
Current Age: N/A
Gender: N/A
117 bps 60
94 bps
123 bps 61
98 bps
129 bps 62
103 bps
135 bps 63
108 bps
142 bps 64
114 bps
150 bps 65
120 bps
158 bps 66
126 bps
166 bps 67
133 bps
175 bps 68
140 bps
187 bps
200 bps
160 bps
214 bps
171 bps
229 bps
183 bps
245 bps
196 bps
262 bps
210 bps
280 bps
224 bps
300 bps
240 bps

16. Underwriting 69 and younger: Medical questionnaire Prescription check
70 and older:
15 minute phone interview
Premier class:
88% approval

17. Lincoln MoneyGuard® II
Funding:
Cash or life 1035 exchange
Up to 10 payments
Chassis:
Guaranteed universal life
Features:
Death benefit
Return of premium
0 day elimination period
Best leveraging for most clients
Inflation protection
Simplified underwriting

18. Someone always benefits
Benefits if you need long-term care
A benefit if you don’t
Return of premium options
3% Compound Inflation or or
Total LTC Benefits
Initial Specified Amount
ROP Benefit
Total LTC Benefit
Year 1: $334,685
Age 80: $521,429
Max. Monthly Benefit
Year 1: $4,312
Age 80: $6,718
$148,000 Year 1, 85
100
$100,000
Providing at least 6 years of coverage
Death Benefit paid income tax-free
to beneficiary
Policy Vested Policy Vested
Year ROP% Year ROP%
1 80.0% %
3 88.0% %
5 96.0% %

19. Summary of benefits
Single Premium Amount $100,000 This projection of values assumes premiums are paid as shown. The premium amount is received on the policy effective date.
Long-Term Care Benefit Limits:
Initial Monthly $4,312 These are the initial amounts available for expense reimbursement for Qualified Long-Term Care Services, subject to rider terms and conditions.
Initial Annual $51,742
Initial Total $334,685
Inflation Option 3% Compound The inflation option will automatically increase the monthly rider(s) amounts by 3% annually. Increased benefit amounts are shown in the LTC Benefit column on page 4 herein.
Minimum Long-Term Care
Benefit Duration 6 years Reimbursement for Qualified Long-Term Care Services are available based on the selected rider(s):
Long-Term Care Acceleration of Benefits Rider (LABR): 2 years
Long-Term Care Extension of Benefits Rider (LEBR): 4 years
Deductible Period None There is no deductible period. Benefits are payable on the first day of care for eligible claims.
Initial Specified Amount $103,483 The Specified Amount is set at issue. Long-Term Care reimbursements reduce the Specified Amount on a dollar-for-dollar basis.
Initial Residual Death Benefit $5,174 The minimum death benefit if Long-Term Care reimbursements reduced the Specified Amount.
Return of Premium $100,000 If the policy is surrendered prior to the total planned premiums being paid, the surrender value to be paid is the cash value minus any applicable surrender charge. Once total planned premiums are paid, the Return of Premium Benefit is available. If surrendered within the first 5 policy years and all planned premiums are paid, the Return of Premium amount is multiplied by the percentage in the table shown below:
Policy Year Vested ROP% Policy Year Vested ROP% Policy Year Vested ROP%
1 80.0% % %
4 92.0% % %
LTC Acceleration of Benefits
Rider Charge* $148.50/month LABR Base charge is $31,56 per month for 10 years. LABR Inflation charge is $116 per month for 10 years.
LTC Extension of Benefits
Rider Charge* $118.80/month LEBR Base charge is $57.23 per month for 10 years. LEBR Inflation charge is $61.57 per month for years.
* These are not additional premiums; the LTC Rider Charges are deducted from the Gross Cash value.

20. Long-Term Care Reimbursement Benefit Limits
Guaranteed Values
Long-Term Care Reimbursement Benefit Limits
3% Compound Interest
Policy Year
Age
Planned Premium
Surrender Value
Death Benefit
Amount
IRR
Total
Annual
Monthly 1 65
$100,000
$80,000
$148,000
48.0%
$334,685
$51,742
$4,312
49.1% 2 66
$0.00
$84,000
$151,200
23.0%
$344,726
$53,294
$4,441
34.7% 3 67
$88,000
$154,880
15.7%
$355,068
$54,893
$4,574
27.4% 4 68
$92,000
$157,320
12.0%
$365,720
$56,539
$4,712
22.9% 5 69
$96,000
$160,320
9.9%
$376,691
$58,236
$4,853
19.9% 6 70
$163,000
8.5%
$387,992
$59,983
$4,999
17.6% 7 71
$160,000
6.9%
$399,632
$61,782
$5,149
15.9% 8 72
$156,000
5.7%
$411,621
$63,636
$5,303
14.6% 9 73
$153,000
4.8%
$423,969
$65,545
$5,462
13.5% 10 74
$149,000
4.1%
$436,688
$67,511
$5,626
12.6% 11 75
$146,000
3.5%
$449,789
$69,536
$5,795
11.9% 12 76
$143,000
3.0%
$463,283
$71,622
$5,969
11.2% 13 77
$140,000
2.6%
$477,181
$73,771
$6,148
10.7% 14 78
$138,000
2.3%
$491,497
$75,984
$6,332
10.2% 15 79
$135,000
2.0%
$506,242
$78,264
$6,522
9.7% 16 80
$133,000
1.8%
$521,429
$80,612
$6,718
9.4% 17 81
$131,000
1.6%
$537,071
$83,030
$6,919
9.0% 18 82
$128,000
1.4%
$553,184
$85,521
$7,127
8.7% 19 83
$126,000
1.2%
$569,779
$88,086
$7,341
8.4% 20 84
$125,000
1.1%
$586,873
$90,729
$7,561
8.2% 21 85
$123,000
1.0%
$604,479
$93,451
$7,788
8.0% 22 86
$121,000
0.9%
$622,613
$96,254
$8,021
7.8% 23 87
$119,000
0.8%
$641,291
$99,142
$8,262
7.6% 24 88
$118,000
0.7%
$660,530
$102,116
$8,510
7.4% 25 89
$116,000
0.6%
$680,346
$105,180
$8,765
7.2%

21. Underwriting Simplified: 45 minute Personal History Interview
MIB/Rx Check
Pass/fail

22. OneAmerica – Asset Care III
Funding:
Qualified transfer
Chassis:
Fixed annuity
Whole life insurance
Features:
Return of premium
Benefits for Life
Individual or Joint
Satisfies RMDs

23. Funds whole life policy with LTC Distributions for 20 years
Qualified funding?
Funds whole life policy with LTC
Transfer
to annuity
Distributions for 20 years

24. Reposition asset End of Policy Year Insured’s Age Contract Premium
Life Insurance Premium and RMD
Total Accumulated Value
Total Cash Surrender Value
Total Death Benefit/LTC Benefit Balance 1 66
$100,000
$6,525.82
$100,777
$152,802 2 67
$0.00
$101,564
$99,932
$152,255 3 68
$102,364
$99,795
$151,692 4 69
$103,177
$99,589
$151,112 5 70
$104,004
$99,316
$150,516 6 71
$104,834
$100,683
$149,901 7 72
$105,655
$102,504
$149,266 8 73
$106,456
$104,330
$148,614 9 74
$107,242
$106,170
$147,942 10 75
$108,009
$147,249 11 76
$108,760
$146,536 12 77
$109,484
$145,802 13 78
$110,171
$145,045 14 79
$110,804
$144,265 15 80
$111,372
$143,463 16 81
$111,864
$142,637 17 82
$112,274
$141,784 18 83
$112,602
$140,908 19 84
$112,838
$140,004 20 85
$112,963
$139,074 21 86
$114,387 22 87
$115,723 23 88
$116,970 24 89 $
$118,123 25 90
$119,182 26 91
$120,167 27 92
$121,092 28 93
$121,962 29 94
$122,773 30 95
$123,521 31 96
$124,220 32 97
$124,886 33 98
$125,514 34 99
$126,097 35
100 $
$126,623 36
101
$127,104 37
102
$127,574

25. Continuation of Benefits Rider
Base Policy
Initial Total Death Benefit
$149,998
Total LTC Benefits
Total LTC Benefit Period
25 months
Initial Monthly Benefit
Home Healthcare, LTC Facility, Assisted Living Facility, Adult Day Care (additional services covered – see Basic Illustration)
$6,000
Inflation Option
0% Simple
Waiting Period
Home Healthcare
Other LTC services
30 days
60 days
Base Policy + COB Continuous Pay Rider
$149,998
Lifetime/Unlimited
$6,000
Base 0% Simple
Rider 0% Compound
30 days
60 days
Base Policy + COB Single Pay Rider
$149,998
Lifetime/Unlimited
$6,000
Base 0% Simple
Rider 0% Compound
30 days
60 days or or
First Year Premium
$100,000
Subsequent COB Premium
$0.00
$101,959.72
$1, (annually)
$129,723.88
$0.00
Base policy + LTC Benefits Continuation Rider
Base policy
Optional COB Rider Lifetime / Unlimited
Initial Total DB / LTC Benefits $149,998 +
Non-cancelable premium guaranteed to never increase

26. Underwriting Simplified issue if: NAR < $250,000
No history of medical concerns
Client has seen doctor in past 12 months
Plan on full underwriting

27. Thank you for joining us today.