1. Nationwide Fixed Universal Life with Long Term Care Rider By Pat Hodous Regional Vice President Victor’s personal notes, not verified by Pat

2. Background Access death benefit earlier As long as it is licensed long term care Indemnity only. No receipts needed 2 out of 6 activities of daily living 90 days $8400/month HIPPA limit (current). Keep up pace with inflation Can go to Reno Cared by family members As easy as possible Nationwide has the rider over 10 years

3. Benefits Pay benefits outside of US China: licensed doctor, US embassy. One time deal. Any case? Don’t know. Recertification: short term position, need recertification. Very old, not going to get better, no recertification. Can we? Yes. Are we? No.

4. Rider vs. Standalone Different from standalone policy: they try to eliminate payouts. That’s how they stay in business We just pay you your guaranteed benefit a few years earlier

5. Drawbacks You have fixed amount. You could out live your pool of money No cost of living adjustment You can “forecast” your needs and buy sufficient protection Cost of living adjustment is expensive

6. Underwriting Turned in not good policy The more up front you tell the better chance you get it Call underwriter in advance Ex: procedure a couple years ago. What’s the follow up. If they never do follow up, you won’t get it If you say a year ago, you forgot the follow up. Underwrite will suggest not turning in the policy. Do follow up first Tell underwriter, the LTC is the key. Without it, you won’t get it. The Underwriter will tell you about the possibility of getting it

7. Underwriter Underwriter’s job is not to there to decline the case. They are there to find ways to issue the case Explain special situation on cover letter. Ex. Ironman training

8. Sales Ideas Standalone LTC is like auto insurance People hate to pay something they hope they don’t use it People need to see the value before they pull out the money This product: one way or the other, somebody is going to use it: either my son gets it, or I use it, or we both get benefit from it

9. LTC increase Standalone LTC policy (PERS), they raise the price, up 30% from 95 to 2005? Standalone LTC can raise the price, just like medical This can’t because it is a life insurance contract The age of people buying LTC is continuously going down

10. Insurance Anything about life insurance is simply leverage Free long term care benefit for your client Question: when’s the last time you looked at your life insurance policy? Do you have old cash value life insurance policy There is one company spending millions $$ asking people reviewing their insurance policies: GEICO Get their policy. Let Pat do the job

11. True Story 67 walked into the Wachovia office 3 old policy: 480K No need for cash value. Wants to maximize death policy $274K cash value Introduce LTC $700K coverage + $700K LTC till age 120 The adviser: commission from Wachovia : $35K Client is so happy (in Sacramento). Give 1M for management There is no sale. The sale is done 15 years ago

12. Research LIMRA 1997 research for rich people: when comes to life insurance, what gets you? 2:1 life insurance combined with LTC Rich people love to spend somebody else’s money

13. Wealth Transfer Wealth transfer Mom have money in account Mom needs money for emergency Put that money in LTC

14. Find more assets 65 years old woman $200K in CD, safe, secured Split it ½ / ½ to Nationwide $100K turns into $306K death benefit + $306K for LTC Now you get her $200K into $306K The other $100K is for her to use $306 for the family will turn into another sales for you. The family may have never seen such amount of money

15. Find more assets 71 old woman 100K in annuity. Not going to use it. Leave for kids NY Life agent: Increase it: 100K -> 170K Ask other: I can do better. 270K. Indemnity vs. reimbursement