1. One America Asset Care Bryan Mueller VP, Field Training & Sales Support CompEdge Financial
INTERNAL USE ONLY

2. One America Asset Care Why Long Term Care?
THE 2Q11 SUNAMERICA RETIREMENT RE-SET SM STUDY CONDUCTED BY HARRIS INT-ERACTIVE SURVEYED A NATIONAL SAMPLE OF ADULTS AGE 55+.

3. One America Asset Care Why Long Term Care? How Much Does LTC Cost?
How Likely Will One Need LTC1?
The Expense for One Year of Long Term Care
How Long Will LTC Be Needed1?
1U.S. Department of Health and Human Services National Clearinghouse for Long Term Care information website.

4. One America Asset Care BUT Long Term Care Sales are down…
Industry annual Long Term
Care Insurance sales are down 69% since 2012
Source: LIMRA

5. One America Asset Care Unfavorable health history Prohibitive Premiums
Factors Impacting LTC Insurance Sales:
Unfavorable health history
Prohibitive Premiums
Today
Tomorrow
Use it or Lose it

6. One America Asset Care Options outside of Traditional LTC Insurance:
Life Insurance with Chronic Illness Rider
Pros:
Underwriting Primarily Based on Mortality not Morbidity
If you don’t use it you don’t lose it
Cons:
Not true LTC as benefits typically only paid for permanent 2 of 6 ADLs
Benefit Period Flexibility & Inflationary Protection N/A
No shared care, partnership program, bed reservations, care coordinator, etc.

7. One America Asset Care Options outside of Traditional LTC Insurance:
Annuity with Confinement Doubler
Pros:
No Underwriting
Option for older/uninsurable clients
Cons:
Only covers confinement (no in-home care)
Double only last for specified time or until Account Value Hits $0
No benefits of Traditional LTC (see Chronic Illness Rider)
Requires Lump Sum

8. One America Asset Care Options outside of Traditional LTC Insurance:
One America Asset Care IV
Pros:
Lifetime or Short-Pay Premiums can never increase
If you don’t use it you don’t lose it (Life Insurance Death Benefit)
Ability to cover either single or joint lives
Bed Reservations, Care Coordination, Caregiver Training, Supportive Equipment, Home Health Care, Homemaker Services, Hospice Care, Adult Day Care, Respite Care & International Care (state specific) are all included.
COB Rider available to extend base benefit period via a doubled or lifetime benefit
COLA is available

9. One America Asset Care Options outside of Traditional LTC Insurance:
One America Asset Care I
Pros:
One-time lump sum premium
Return of Premium (discounted benefit depending on acceleration of benefits)
If you don’t use it you don’t lose it (Life Insurance Death Benefit)
Ability to cover either single or joint lives
Bed Reservations, Care Coordination, Caregiver Training, Supportive Equipment, Home Health Care, Homemaker Services, Hospice Care, Adult Day Care & Respite Care all included.
COB Rider available to extend base benefit period via a doubled or lifetime benefit
COLA is available

10. One America Asset Care Options outside of Traditional LTC Insurance:
One America Asset Care I & IV
Cons:
Not part of Partnership Program
Initial Premium on an average case will be 5-10% higher than Traditional LTC
COLA Options for Base Policies are less flexible than Traditional LTC

11. One America Asset Care A 3rd Option with One America…
Indexed Annuity Care
One-time lump sum premium
No fees (i.e. M/E/A)
If you don’t use it you don’t lose it (Underlying FIA)
Ability to cover either single or joint lives
Bed Reservations, Care Coordination, Caregiver Training, Supportive Equipment, Home Health Care, Homemaker Services, Hospice Care, Adult Day Care & Respite Care all included.
COB Rider available to extend base benefit period via a doubled, tripled or lifetime benefit
COLA is available on COB Rider (Base receives 1% COLA + Credited Growth)
PPA Compliant
Simplified Underwriting

12. Asset Care IV Case Study
The Clients:
Male – Age 55 & Female – Age 55
Wish to fully 62
Income & Life Insurance Needs met
$635k in qualified sources
Looking at covering LTC need BUT hesitant due to no immediate need, potential costs and lack of flexibility if not used for LTC.
Here we have both a husband and wife, age 55 who which to retire at 62. For the purposes of our case study today we are going to assume their income and survivor needs are taken care of and that they see value in LTC BUT are hesitant to make such a move for many of the same reasons Robin already mentioned:
High Potential Costs
Use it or Lose It as well as a 3rd thing which is
They do not see an immediate need.
Now Robin, covered the first two issues, along with insurability, in her presentation but let me speak for a second to the 3rd issue listed. This is a big deal because clients typically don’t see value in making a LTC Insurance decision in their 50s but often times wait until it is too late to put a plan in place before costs & health issues making purchasing such a plan prohibitive. The reason we love this idea for the peak accumulation stage vs later stages is that clients in their 50s not only tend to have less budgetary issues but they are younger and therefore healthier and that is the bread and butter age for Asset Care!
The key here is showing them that while they may not have an immediate need for LTC coverage how such a decision can set them up to best protect their assets long term.

13. Asset Care IV Case Study
50 Months &
25 Months
also available
5% Simple or
Compound
Available
(depending on state)
1-5% Simple or
Compound
Available
In order to do this we can turn to the illustration. Above you will find a screen print of a portion of the illustration we at CompEdge find extremely valuable as it lays out the benefits and optionality of Asset Care in a way that is easy to follow for clients. Starting on the left hand side of the slide we see the Base Policy on the Asset Care 4 Contract. We chose a $5k per month shared care benefit and chose a 33 month benefit period. This provides a Death Benefit of $166,667 which allows you to show the clients that if they don’t use it they won’t lose it! Regarding the Benefit Period chosen, we chose 33 months for this example but 25 & 50 month flavors are also available. Lastly, you can choose inflationary protection on the base policy BUT it is only 5% simple or compounding. We at CompEdge find that such an option is rather expensive so we typically recommend starting with a higher base benefit as a way to curb inflation instead.
Now then, once a base period is chosen there is some flexibility in choosing what the ultimate benefits will be for our client couple. As Robin mentioned, we have the ability to add a Continuation of Benefits Rider (COB) to the base policy which allows us to take the total benefit period from 33 months to 66 months (a double) or to have the $5,000 monthly benefit continue for life if the lifetime option is chosen. If we choose 66 total months of protection then the TOTAL premium would increase by roughly $1,700 annually. Going from 66 months to lifetime has about the same increase in total premium. Lastly, we can also set up inflationary protection on the COB Rider that will provide an inflationary hedge once the base policy benefit period is exhausted. Here the COLA is a little more robust in that most states offer anywhere from a 1-5% COLA (simple or compound). Here we have chosen to show 3%. This provides our clients shown here the flexibility to design a plan that fits their needs and budget (with premiums that cannot increase) while also ensuring that if they don’t use it for LTC that it will not be lost.
$4,275.01
Annually
$5,962.96
Annually
$7,630.06
Annually

14. Asset Care I & IV Summary
Hybrid, Life-Based Long Term Care Insurance
Premiums are guaranteed to never go up
Lump Sum, Short-Pay (10-20) or Lifetime Pay available
Death Benefit if not used for LTC (cash surrender value also available)
COB Rider allows for double of benefit period OR lifetime benefits
So in summary, here are the benefits of the Asset Care products for those clients of yours in the age range (60+ is available) looking to tackle their long term care needs:
Premiums are guaranteed to never go up
Lump Sum, Short-Pay (10-20) or Lifetime Pay available
Death Benefit if not used for LTC (cash surrender value also available)
COB Rider allows for double of benefit period OR lifetime benefits
Now instead of an advisor panel we thought we would pause and take on questions so please feel free to ask away!

15. INTERNAL USE ONLY

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©2016 First Command Financial Services, Inc. parent of First Command Financial Planning, Inc. (Member SIPC, FINRA), First Command Advisory Services, Inc., First Command Insurance Services, Inc. and First Command Bank. Securities and brokerage services are offered by First Command Financial Planning, Inc., a broker-dealer. Financial planning and investment advisory services are offered by First Command Advisory Services, Inc., an investment adviser. Insurance products and services are offered by First Command Insurance Services, Inc. in all states except Montana, where as required by law, insurance products and services are offered by First Command Financial Services, Inc. (a separate Montana domestic corporation). Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. A financial plan, by itself, cannot assure that retirement or other financial goals will be met.
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First Command Financial Services, Inc. and its related entities are not affiliated with or endorsed by the U.S. government or U.S. armed forces, and are not affiliated with, authorized to sell or represent on behalf of, or otherwise endorsed by any federal employee benefits programs that may be referenced in this presentation.