1. Your Asset-Based LTC Opportunity
Welcome and greeting
Intro OneAmerica.
Presented by: Keith Bercun, Regional Sales `Director CLTC
For company and recruiting use only. Not for public distribution.

2. Average Cost of Care $87,600 per year for private room in 2014
The Average Cost of Long-Term Care in the United States in 2014: • $223/day or $6,691/month for a semi-private room in a nursing home • $204/day or $7,300/month for a private room in a nursing home • $3,500/month for care in an assisted living facility (one-bedroom unit) • $20/hour for a home health aide •
Source: Genworth Financial, April 22, 2015
$87,600 per year for private room in 2014
- If medical inflation 3.5%
In 10 yrs with inflation = $123,568 per year
In 20 yrs with inflation = $174,305 per year
Trends that could impact costs of Long-term Care:
Baby Boomers – number of people needing care at same time
Medical Technology – Life expectancy increasing - costs more
Family Dynamics – Who is providing care now?
Government – What programs will be available? Who will qualify?
The average cost of care in the United States is considerable, and with inflation, expectations are it will continue to increase. In addition, there are several other factors that could impact the cost of care, including the aging Baby Boomer population, advances in medical technology, government programs and family dynamics.
For company and recruiting use only. Not for public distribution.

3. Estimated cost in 20 yrs based on averages:
-- $ 174,305 per year @ 2.2 yrs for men = $ 383,471
-- $ 174,305 per year @ 3.7 yrs for women = $ 644,928
-- $ 174,305 per year @ 8 yrs for Alzheimer’s= $1,394,440
According to The National Long-Term Care Clearinghouse:
About 70% of individuals over age 65 will require at least some type of long-term care service during their lifetime
Over 40% will need care in a nursing home for some period of time
Women need care for longer (on avg. 3.7 years) than do men (on avg. 2.2 years)
Source: U.S. Department Source: U.S. Department of Health and Human Services, 4/12/12
The chances of needing long-term care is something your clients should not ignore. According to the federal government, around 70% of individuals over the age of 65 will require some type of LTC. 40% of those individuals will require care in a nursing home, and the risk is greater of for women than men.

4. Two Questions Every Financial Professional Should ask their clients:
1. You may never need care, but if you did, how will that affect your family?
Spouse?
Adult children?
Family Dynamics?
Finances?
2. And…if you did need care, how will you pay for it?
Two simple questions you can ask your clients are: “You may never need care, but if you did, how will that affect your family?” and “ If you did need care, how will you pay for it?’
Simple phrases like this can help properly frame the conversation.
Government?
LTC insurance?
Self fund?
For company and recruiting use only. Not for public distribution.

5. Concept of Asset-based LTC with Life Insurance *(example)
Cash Value
Aggressive
Moderate
Death Benefit
Long-term Care
$125k
Conservative
$250k
The concept of asset-based long-term care lies in its name. Instead of using income to purchase long-term care insurance, our approach reallocates existing assets to pay a single premium and provide LTC benefits.
Of course annual pay options are also available, but most clients prefer the ability to repurpose an asset already ear marked for a health care need, leverage that premium into LTC benefits, and avoid “another bill” to pay.
Typical portfolio assets:
Aggressive-assets positioned for significant growth with the acceptance of the risk of loss of principal
Moderate-assets positioned for some growth with the acceptance of some downside risk
Conservative--assets positioned for conservation of principal—often with guarantees
Lifetime LTC
(Unlimited)

6. Portfolio Protection!
Not only is this portfolio protection for the client, it’s portfolio protection for a producer!
If an agent has a producer clientele, and over the next years their clients begin to withdraw hundreds of thousands of dollars out of accounts that are being managed….
…what happens to their business?
For company and recruiting use only. Not for public distribution.

7. Care Solutions Suite
Asset Care® Whole life insurance with LTC benefits
Asset Care I (Single Premium) Cash or cash equivalents
Asset Care II (Single Premium) Existing nonqualified annuities via 1035 exchange
Asset Care III (Single Premium) Qualified money via direct rollover
Asset Care IV (Annual Premium)10pay up to 20pay or whole life pay
Annuity Care ® Single premium annuity with LTC benefits
Annuity Care Cash, qualified money, existing nonqualified annuities exchange
Annuity Care II Cash or existing nonqualified annuities via 1035 exchange
Indexed Annuity Care Cash, qualified money, existing non-qualified annuities – 1035 exchange
Legacy Care ® Single premium deferred annuity
Designed for the retiree market
Immediate Care ® Immediate Lifetime annuity (SPIA)
Designed to help fund LTC or provide retirement income
The State Life Insurance Company offers one of the most robust and complete asset-based long-term care product suites. Let’s look at a brief overview of the Care Solutions suite and how each solution is funded.

8. Asset Care I-IV Whole Life Insurance- Guarantee 4% IR Joint Equal Age
Any Insurable Interest
Individual or Joint Chassis
Single Premium Will cover 2 Lives (Patented)

9. Asset-Care I example: Joint contract 64 & 64
Life Insurance policy
Continuation of Benefits Rider is optional
$850 / year
Premiums guaranteed!
$250,000
50 months
= $500,000
$125,000
$250,000
50 months or
LIFETIME
$5,000
Per person
$1,200 / year
Premiums guaranteed!
Highlights:
Ages 40-80
Single or patented joint life option
Guaranteed return of premium on 50 month option
Guaranteed cash value growth
Optional lifetime coverage available with premium guaranteed to never increase
Funding: Cash, CDs, savings, brokerage accounts, 1035 Life Cash Value
Asset-Care is our whole life insurance product with LTC benefits. It provides access to the death benefit for qualifying LTC expenses, and an optional extension of benefits should your clients fear an extended care need.
For company and recruiting use only. Not for public distribution.
For company and recruiting use only. Not for public distribution.

10. Concept and Acceleration of Death Benefit Options
Life Insurance policy
Continuation of Benefits Rider is optional
50 months
50 months
Lifetime
2% of death benefit
33 months
33 months
Lifetime
3% of death benefit
25 months
25 months
Asset-Care is our whole life insurance product with LTC benefits. It provides access to the death benefit for qualifying LTC expenses, and an optional extension of benefits should your clients fear an extended care need.
Lifetime
4% of death benefit
For company and recruiting use only. Not for public distribution.
For company and recruiting use only. Not for public distribution.

11. For company and recruiting use only. Not for public distribution.

12. DID YOU KNOW The COB rider can be paid with an HSA
The COB rider can be paid by a Corp and act as a 100% Tax deduction
The COB rider has built in Waiver of Premium
There is a 1 year Guarantee ROP on Single Pay of COB rider

13. Asset-Care III example: Qualified money
$117,000
$125,000
Asset Care IRA
$250,000
$250,000
50 months
= $500,000
$8,000
50 months or
LIFETIME
Annual Taxable withdrawal
50 mos
$5,000
Per person
$133,000
Additional life insurance with LTC benefits
Highlights:
Ages: 59½ -80
Patented joint life option or single life
Guaranteed return of premium on 50 month option
Guaranteed cash value growth
Optional lifetime coverage available with premium
guaranteed to never increase
Funding: 401k, IRA, 403b, qualified monies
Asset-Care is our whole life insurance product with LTC benefits. It provides access to the death benefit for qualifying LTC expenses, and an optional extension of benefits should your clients fear an extended care need.
For company and recruiting use only. Not for public distribution.
For company and recruiting use only. Not for public distribution.

14. DID YOU KNOW With ACIII we can write a policy < 59 1/2
The COB can be paid from the 401K/IRA using a SPIA as the funding source
LTC Withdrawals can be made from the life policy first and then the Annuity upon request.

15. Asset-Care IV example: Annual Pay Joint Contract 55 & 55
Life Insurance policy
Continuation of Benefits Rider is optional
$525 / year
Premiums guaranteed!
$100,000
$2,040
Annual premium
25 months
= $200,000
$100,000
25 months or
LIFETIME
$4,000
Per person
$1,150 / year
Premiums guaranteed!
Highlights:
Ages (rider available at 35 with exception)
Single or patented joint life option
Guaranteed cash value growth
10 Pay up to 20 Pay or Whole Life pay. Paid annual, semi-annual, quarterly, or monthly
Optional lifetime coverage available with premium guaranteed to never increase
Funding: Cash, Pension Income, Annuitization Income, Earned Income, RMD
Asset-Care is our whole life insurance product with LTC benefits. It provides access to the death benefit for qualifying LTC expenses, and an optional extension of benefits should your clients fear an extended care need.
For company and recruiting use only. Not for public distribution.
For company and recruiting use only. Not for public distribution.

16. DID YOU KNOW
You can fund the Base policy and COB using 1035 $$$ from an existing life policy
When on claim your premiums are reduced proportionately

17. Care Solutions Portfolio
Asset Care® Whole life insurance with LTC benefits
Asset Care I (Single Premium) Cash or cash equivalents
Asset Care II (Single Premium) Existing nonqualified annuities via 1035 exchange
Asset Care III (Single Premium) Qualified money via direct rollover
Asset Care IV (Annual Premium)10pay up to 20pay or whole life pay
Annuity Care ® Single premium annuity with LTC benefits
Annuity Care Cash, qualified money, existing nonqualified annuities exchange
Annuity Care II Cash or existing nonqualified annuities via 1035 exchange
Indexed Annuity Care Cash, qualified money, existing non-qualified annuities – 1035 exchange
Legacy Care ® Single premium deferred annuity
Designed for the retiree market
Immediate Care ® Immediate Lifetime annuity (SPIA)
Designed to help fund LTC or provide retirement income
The State Life Insurance Company offers one of the most robust and complete asset-based long-term care insurance portfolios. Let’s look at a brief overview of the Care Solutions portfolio and how each solution is funded.

18. Annuities
According to 2013 Gallop survey of Non-Qualified Annuity owners:
79% intend to use their annuity as a financial resource to avoid being a financial burden on their children
73% intend to use their annuity as an emergency fund in the case of a catastrophic illness or for nursing home care
Some research even indicates that annuity owners purchased their annuity with unexpected medical and health care costs in mind.
For company and recruiting use only. Not for public distribution.

19. Pension Protection Act
Existing annuity
(funded with after-tax dollars)
Pension Protection Act
$50,000 basis +
$100,000 gain =
$150,000 cash value
Taxes owed on gain
which is withdrawn first
Withdrawal
1035 Exchange
Long-term care expenses
$150,000
Annuity-based asset-based LTC products are also available and are eligible for the tax advantages of the Pension Protection Act. We offer two approaches: Annuity Care and Annuity Care II.
Withdrawal
HIPAA qualified PPA
eligible annuity
Beginning January 1,2010, income tax-free as a reduction of cost basis
Numeric examples are hypothetical and were used for educational purposes only.
For company and recruiting use only. Not for public distribution.
Not FDIC Insured-May Lose Value-Not Bank Guaranteed –For company and recruiting use only  - Not for Public Distribution

20. Annuity Care I & II SPDA- Current rates 1.65%/Cash and 2.85%/LTC
Joint Equal Age
Individual or Joint Chassis
Must be Spouses
Single Premium Will cover 2 Lives
PPA eligible HIPPA qualified

21. Annuity Care 81 Female $ 125,000 in Non-Qualified Annuity
Doesn’t need for income
Minimum 3% rate guarantee
Annuity Care
$125,000
COB rider is optional
Annuity
36 Months
36 Months
Lifetime
$102,500
$22,500
$36,000 per year, tax-free benefits – for Lifetime!
Highlights:
ages 50-85
Withdrawals for LTC expenses are federal income tax-free (non-qualified money only)
Funding sources: cash equivalents, non-qualified annuities via 1035 exchange, qualified money
Optional lifetime coverage available with premium guaranteed to never increase
Base annuity only – NO teleinterview
Continuation of Benefits rider requires teleinterview
With Annuity Care, the base annuity and continuation of benefits are purchased separately. The continuation of benefits is optional.
For company and recruiting use only. Not for public distribution.

22. DID YOU KNOW
We will insure up to age 87 if no COB rider, no exception needed!

23. Annuity Care II COB rider is INCLUDED Annuity 36 months 2.5 x
24 Months (single life)
30 months (joint life)
72 months
4 x
108 months
5.5 x
Monthly LTC charges
Highlights:
ages 40-80
Withdrawals for LTC expenses are federal income tax-free
Internal withdrawals to pay for Continuation Of Benefits rider are federal income tax-free
Benefits paid from Continuation Of Benefits rider are federal income tax-free
Funding sources: cash equivalents and non-qualified annuities via 1035 exchange
Requires teleinterview only
With Annuity Care II, The continuation of benefits is built-in. Annuity Care II cannot be purchased without the continuation of benefits.
Rather than paying for the continuation of benefits out-of-pocket as with Annuity Care, Annuity Care II’s continuation of benefits is funded by a monthly charge deducted from the annuity values.
For company and recruiting use only. Not for public distribution.

24. Single Pay Annuity / Single Life – 8 yr. LTC
Base Policy – First 24mos. Of LTC
COB Rider – Next 72 Months
For company and recruiting use only. Not for public distribution.

25. For company and recruiting use only. Not for public distribution.

26. For company and recruiting use only. Not for public distribution.

27. Indexed Annuity Care COB rider is optional 2x Fixed-indexed Annuity 3x
24 months, single
30 months, joint 2x
Fixed-indexed Annuity
24 months, single
30 months, joint
48 months, single
60 months, joint 3x
LIFETIME
Highlights:
Ages 40-85
Fixed-indexed annuity allows for upside growth potential by linking to the S&P 500®, with protection from down-side risk
Withdrawals for LTC expenses are federal income tax-free (non-qualified money only)
Benefits paid from Continuation Of Benefits rider are federal income tax-free
Funding sources: cash equivalents, non-qualified annuities via 1035 exchange, qualified money
Optional lifetime coverage available with premium guaranteed to never increase
Base annuity only – NO teleinterview
Continuation of Benefits rider requires teleinterview only
With Annuity Care, the base annuity and continuation of benefits are purchased separately. The continuation of benefits is optional.
For company and recruiting use only. Not for public distribution.

28. How the LTC benefit balance works
Contract year
Account value multiplier
Adjusted net single premium factor 1
1.01
1.00 2
1.02 3
1.03 4
1.04 5
1.05 6
1.06 7
1.07 8
1.08 9
1.09 10
1.10 11
1.11
1.15 12
1.12
1.20 13
1.13
1.25 14
1.14
1.30 15
1.35 16
1.40 17
1.45 18
1.50 19
20+
The LTC benefit balance is the greater of:
The account value x the account value multiplier
The net single premium x the adjusted net single premium factor
Example:
Mrs. Smith purchased an Indexed Annuity Care contract with a $150,000 single premium; she has never taken a partial withdrawal.
By contract year 15, when they first need and are eligible for LTC withdrawals, their account value has grown to $203,832.
Their LTC benefit balance is the greater of:
$203,832 x 1.15 = $234,407
$150,000 x 1.35 = $202,500
The LTC benefit balance is $234,407.
Please review the contract and outline of coverage for complete details.
For company and recruiting use only. Not for public distribution.

29. Care Solutions Portfolio
Asset Care® Whole life insurance with LTC benefits
Asset Care I (Single Premium) Cash or cash equivalents
Asset Care II (Single Premium) Existing nonqualified annuities via 1035 exchange
Asset Care III (Single Premium) Qualified money via direct rollover
Asset Care IV (Annual Premium)10pay up to 20pay or whole life pay
Annuity Care ® Single premium annuity with LTC benefits
Annuity Care Cash, qualified money, existing nonqualified annuities exchange
Annuity Care II Cash or existing nonqualified annuities via 1035 exchange
Indexed Annuity Care Cash, qualified money, existing non-qualified annuities – 1035 exchange
Legacy Care ® Single premium deferred annuity
Designed for the retiree market
Immediate Care ® Immediate Lifetime annuity (SPIA)
Designed to help fund LTC or provide retirement income
The State Life Insurance Company offers one of the most robust and complete asset-based long-term care insurance portfolios. Let’s look at a brief overview of the Care Solutions portfolio and how each solution is funded.

30. Let’s get started Immediately text to: 89800 “Insurance”
Thank you for attending. Get started by contacting the Sales Desk, or your local wholesaling team.
For company and recruiting use only. Not for public distribution.