1. IT’S ABOUT THE PLAN AND WHAT WILL PAY FOR IT! BY NANCY A. DYKEMAN, CLTC, CSA FOR CERTIFICATION FOR LONG-TERM CARE CORPORATION NOVEMBER 28, 2012 More Arrows in Your Quiver While Planning for Long-term Care

2. Pick one, Any one!

3. AGENDA What Are You Doing Now? (how’s that working?) Are application declines haunting you? Are you talking positively about premium increases? Fewer Carriers in Stand-alone LTCi. How to make a change by adding arrows. What other money in a portfolio is available? How do I learn more?

4. What Are You Doing Now? (and how’s that working?) How do you introduce yourself? To industry professionals To groups To Consumers Are you a “Long-term Care Specialist?” or “Long-term Care Insurance Specialist?

5. How About a Planning Specialist? Insurance Producers Financial Advisors Estate Attorneys CPAs

6. Who Qualifies for LTCi? Healthy Financially Able to Pay Premiums US Citizen Usually Under age 80 Healthy Healthy…

7. What if? Not Healthy Not Able to Pay Premiums Not a US Citizen Over Age 80 or Age 90 Health Concerns

8. Are application declines haunting you? Better to take an application that will most likely be a decline, or pre-qualify and have less declines than others? Declines hurt the applicant, you, the carriers and the industry.

9. What if? Can you offer ideas about: Family involvement? A life insurance policy? An Immediate Annuity or Deferred Annuity? A financial investment to cover care? A way to self-pay without spending assets?

10. Are you talking positively about premium increases? WHAT??? Since about 2003 premiums have increased. Reserves haven’t earned enough in interest. We are living longer and using our policies. Premiums paid in + interest on reserves guarantee claims paid. Why do you struggle with this? Be confident about the need for increases and how to work through them so people don’t cancel.

11. Fewer Carriers in Stand-alone LTCi. So? Another fact of life. If a carrier has to leave the industry by not taking on more risk why is this bad? Existing policyholders gain protection when carriers stop selling. Fewer carriers selling creates more solid competition to meet the market need. Why do you struggle with this?

12. How to make a change by adding arrows. Planning takes Practice! Comfort is Key Seeking Education is Important Learning from the Best Finding Partners is a Thought Taking Time to Make Changes

13. What other money in a portfolio is available? Life Insurance Accelerated Death Benefits or Cash Value: Life insurance death benefit paid in advance (tax-free) Policyholder must have a life-threatening diagnosis or be terminally ill

14. Long-Term Care Annuities: An annuity is a series of regular payments over a specified and defined period of time Funds for annuity come from a single premium m payment Two types  Immediate long-term care annuity  Deferred long-term care annuity

15. Life Settlements: Sale of life insurance policy to raise cash Policy is sold for its present value Men: 70 and older Women: 74 and older Policies that can be sold Universal life insurance Term insurance Whole life insurance Policies held in irrevocable life insurance trusts Buy-sell agreements Key man policies

16. Viatical Settlements: Allow terminally ill individuals (life expectancy of less than two years) to sell life insurance policy to use money to pay for care Viatical company pays individuals a percentage of the death benefit based on life expectancy Viatical company owns the policy, pays the premiums and is the beneficiary

17. Health Savings Accounts: Tax-free contributions can be made to HSA up to an annual limit Funds are carried over every year and all gains are tax-free Offers tax-advantage alternative used to fund long- term care insurance premiums and accumulate funds to pay for long-term care expenses Can be set up by an individual or employer

18. Reverse Mortgages: Individual receives cash against value of home without selling it Available for homeowners age 62 and older Can receive lump-sum payment, monthly payment, or a line of credit  Not taxable, and does not count toward income or affect Social Security or Medicare benefits if payments received are spent within the month they are received

19. And, of Course, “I’m going to Self-Pay!” What were we just talking about? All of these are Self- Pay! Why did they bother to set up any retirement accounts or investments to provide income in the future if they planned to spend it all anyway? Their lifestyle depends on income so is that their plan to pay for their care?

20. A Word About Hybrids - Combos Using another funding vehicle to pay for extended care and win in the end! Life Insurance with LTC embedded. Health must qualify on both sides Annuity with LTC embedded. No health questions for annuity and a few health questions, not full underwriting for LTC.

21. How do I learn more? Your company or brokerage firm offers webinars and local seminars on alternatives to LTCi. Online training about something you aren’t familiar with. Research on the web. Financial Partners who are willing to teach you. The Summit annually Intercompany LTCi Conference annually Read: Broker’s World Annual LTCi Survey and others Industry Newsletters

22. Re-Take a CLTC Class! How long ago did you take the course? Did you take it in the classroom or online? What have you done since? Go online at: www.ltc-cltc.com Left Banner has Master Class Schedule Sign up! (reduced cost for past grads)

23. Make a strong commitment to continuous learning and growing your business.

24. SUMMARY What Are You Doing Now? (how’s that working?) Are application declines haunting you? Are you talking positively about premium increases? Fewer Carriers in Stand-alone LTCi. How to make a change by adding arrows. What other money in a portfolio is available? How do I learn more?

25. Thank you!