1. Burt Snover, ChFC, CLU President COMPEDGE
ALTERNATIVES TO TRADITIONAL LTCi
Burt Snover, ChFC, CLU President COMPEDGE
For Advisor Use Only

2. AGENDA OVERVIEW OF THE LTCi INDUSTRY
ISSUES ARISING WITH TRADITIONAL LTCi
ASSET BASED LTC SOLUTIONS
Asset Care IV Comparison to Traditional LTC
Asset Care IV Case Study
Asset Care I & Indexed Annuity Care details
LIFE INSURANCE ABR RIDERS (CHRONIC ILLNESS)
Definition of ABR Illnesses
Chronic Illness ABR comparison to Traditional LTC & LTC Riders
Differences between Chronic Illness ABR Riders
ANNUITY CONFINEMENT DOUBLERS
Comparison to Traditional LTC
For Advisor Use Only

3. Statistics regarding the Long Term Care Industry
INDUSTRY OVERVIEW
Statistics regarding the Long Term Care Industry
For Advisor Use Only

4. INDUSTRY OVERVIEW Why Long Term Care? For Advisor Use Only
THE 2Q11 SUNAMERICA RETIREMENT RE-SET SM STUDY CONDUCTED BY HARRIS INT-ERACTIVE SURVEYED A NATIONAL SAMPLE OF ADULTS AGE 55+.
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5. INDUSTRY OVERVIEW 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.
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6. ISSUES IMPACTING TRADITIONAL LONG TERM CARE INSURANCE SALES
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7. Issues impacting Traditional LTCI Sales
Unfavorable Health History
Prohibitive Premiums
Today
Tomorrow
Use it or Lose it
Limited Benefit Periods
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8. A DEEPER DIVE INTO OPTIONS WITH ONE AMERICA
ASSET BASED LTCI
A DEEPER DIVE INTO OPTIONS WITH ONE AMERICA
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9. ONE AMERICA ASSET CARE IV
PROS TO ASSET CARE IV:
Typically easier to qualify for than Traditional LTC Insurance
Lifetime or Short-Pay Premiums that can NEVER increase
Provides a Life Insurance Death Benefit meaning if you don’t use it for LTC then you don’t lose it
Continuation of Benefits Rider (COB) can be added allowing for a double of the base policy’s benefit period OR provide LIFETIME BENEFITS for LTC protection.
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.
COLA is available
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10. 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.
For Advisor Use Only

11. $508.88/month For Advisor Use Only
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.
For Advisor Use Only

12. Here we have both a husband and wife, age 55 who which to retire at 62
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.
For Advisor Use Only

13. ONE AMERICA ASSET CARE I
ASSET CARE I BENEFITS & DETAILS:
Typically easier to qualify for than Traditional LTC Insurance
One time Lump Sum Premium (COB can be paid over lifetime) so no increasing premiums.
ROP benefit available
Provides a Life Insurance Death Benefit meaning if you don’t use it for LTC then you don’t lose it
Continuation of Benefits Rider (COB) can be added allowing for a double of the base policy’s benefit period OR provide LIFETIME BENEFITS for LTC protection.
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.
COLA is available
For Advisor Use Only

14. ONE AMERICA INDEXED ANNUITY CARE
INDEXED ANNUITY CARE BENEFITS & DETAILS:
Simplified Underwriting making it the easier to qualify for than Traditional LTC or Asset Care products.
One time Lump Sum Premium so no increasing premiums.
On a FIA Chassis meaning if you don’t use it for LTC then you don’t lose it
Continuation of Benefits Rider (COB) can be added allowing for a double/triple of the base policy’s benefit period OR provide LIFETIME BENEFITS for LTC protection.
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.
COLA is available (1% guaranteed COLA but can earn more based on crediting strategy returns)
PPA Compliant which means 1035 Exchanges from old Annuities are allowed and any gain used for LTC purposes will be tax free!
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15. Benefits of ABRs offered on permanent insurance policies
LIFE INSURANCE ABRs
Benefits of ABRs offered on permanent insurance policies
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16. ABR Riders
 Terminal Illness – provides for the payment of an accelerated benefit if an eligible insured has an illness or chronic condition that is expected to result in Death within 12 to 24 Months depending on carrier and state.
 Critical Illness – provides for the payment of an accelerated benefit if an eligible insured experiences a critical illness. Covered critical illness includes up to 16 illnesses such as heart attacks, strokes and certain types of internal cancer.
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17. WHAT IS A CHRONIC ILLNESS?
A Chronic Illness can be defined as:
Inability to perform the activities of daily living (ADLs) bathing, continence, dressing, eating, toileting, and transferring in or out of a bed or a chair;
Needing supervision because of a cognitive impairment, such as Alzheimer’s disease or other causes of dementia.
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18. ABR Riders
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19. TRADTIONAL LTC vs CHRONIC ILLNESS RIDER
Traditional LTC
Underwriting
Based primarily on Mortality
Based primarily on Morbidity
Death Benefit
Life Insurance Death Benefit
Use it or Lose it
Flexibility
Most offer 2% acceleration for 50 months. No COLA & Benefit is discounted.
Can customize benefit period & amount. COLA can be added & no discount on benefit.
Other Benefits NA
Shared Care, Care Coordination, Partnership Program, Bed Reservations, etc.
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20. ABR Riders CHRONIC ILLNESS RIDER- 101(g) vs LTC RIDER- 7702(b)
Permanent vs Temporary
Reimbursement vs Indemnity
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21. Permanent vs temporary
LTC RIDERS (b) will allow for acceleration for any temporary or permanent long term care claims.
CHRONIC ILLNESS RIDERS – 101(g) will allow for acceleration only for permanent long term care claims.
TRADITIONAL LONG TERM CARE will typically pay benefits for a condition lasting at least 90 days.
For Advisor Use Only

22. REIMBURSEMENT VS INDEMNITY
LTC RIDERS (b) is typically a reimbursement rider. This means you pay a long term care bill and submit receipts to the insurance company for reimbursement (coordination of benefits may exist). All benefits are therefore tax-free.
CHRONIC ILLNESS RIDERS – 101(g) is an indemnity rider. This pays the benefit directly to you in no relation to actual services received one you qualify for benefits. Amounts above the IRS Per Diem max may therefore be taxable.
TRADITIONAL LONG TERM CARE policies are also typically reimbursement plans.
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23. Types of Chronic illness Riders
Rider Type
Discounted
Dollar for Dollar
Upfront Cost $0
Additional premium of 10%(+/-)
Accelerated Benefit
Benefit discounted based on:
Impact on Future Mortality
Discount Rate at time of acceleration
Death Benefit reduced on pro-rata basis
No discount on benefit
Death Benefit reduced on a dollar for dollar basis
Companies
ANICO
Lincoln Financial
For Advisor Use Only

24. Discounted chronic illness rider…
In addition, the ANICO SGUL also have built-in ABR for Chronic, Critical & Terminal Illnesses. This allows for John, should certain criteria be met, to accelerate his Death Benefit while living to cover the cost of care or to use in any ways he and his spouse deem fit. This is an added living benefit not available through SBP.
For Advisor Use Only

25. Benefits CONFINEMENT DOUBLERS ON FIAS
FIA CONFINEMENT INCOME DOUBLER
Benefits CONFINEMENT DOUBLERS ON FIAS

26. TRADTIONAL LTC vs FIA CONFINEMENT DOUBLER
Traditional LTC
Underwriting
No Underwriting (cannot already be confined)
Based primarily on Morbidity
Benefit if Not Used for LTC
Underlying FIA with Income Rider
Use it or Lose it
Flexibility
Double only lasts for a specified time period & requires a lump sum
Can customize benefit period & amount. COLA can be added
Other Benefits NA
Shared Care, Care Coordination, Partnership Program, Bed Reservations, etc.
For Advisor Use Only

27. Athene Ascent Pro Bonus Doubler
Allianz vs Athene
Allianz 222 AIM Benefit
Athene Ascent Pro Bonus Doubler
Waiting Period
10 Years
1 Year
How Long Benefit Lasts
Double continues until Accumulation Value runs to $0
Double continues until Accumulation Value runs to $0 or 5 Years whichever comes first.
Confinement Covered
Nursing Home, Hospital or Assisted Living Facility
Nursing Home, Hospital or Hospice Care
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28. THANKS
That is all! Thank you for your time today and let me know if you have any questions I can answer. Thanks!
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