1. NATIONWIDE YOURLIFE CAREMATTERS SM FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value Brought to you by Nationwide ® Nationwide YourLife CareMatters SM More than just a LTC Benefit Pool NFM-13488AO.1

2. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 2 Disclosure - This presentation was not intended by the author to be used, and cannot be used, by anybody for the purpose of avoiding any penalties that may be imposed on you pursuant to the Internal Revenue Code. The information contained herein was prepared to support the promotion, marketing and/or sale of life insurance contracts, annuity contracts, and/or other products and services provided by Nationwide Life Insurance Company. Keep in mind that as an acceleration of the death benefit, the payment of long-term care rider benefits will reduce both the death benefit and cash surrender values of the policy. Additionally, loans and withdrawals will also reduce both the cash values and the death benefit. Care should be taken to make sure that life insurance needs continue to be met even if the rider pays out in full, or after money is taken from the policy. There is no guarantee that the rider will cover the entire cost for all of the insured’s long-term care, as this may vary with the needs of each insured. Nationwide pays the long- term care benefit to the policy owner; there is no guarantee the policy owner will use the benefit for long-term care expenses if the policy is owned by someone other than the insured. Guarantees are subject to the claims-paying ability of the issuing company. Life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

3. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 3 Disclosure When choosing a product, make sure that life insurance and long-term care insurance needs are met. CareMatters is not intended to be a primary source of life insurance protection, so make sure life insurance needs have been covered by appropriate products. Because personal situations may changes (i.e., marriage, birth of a child or job promotion), so can life insurance and long-term care insurance needs. Care should be taken to ensure these strategies and products are suitable. Associated costs, as well as personal and financial objectives, time horizons, and risk tolerance should all be weighed before purchasing CareMatters. Life insurance, and long-term care coverage linked to life insurance, has fees and charges associated with it that include: costs of insurance which varies based on characteristics of the insured such as gender, tobacco use, health and age; and additional charges for riders that customize a policy to fit individual needs. Approval for coverage under the policy and attached LTC riders is subject to underwriting and may require a medical exam. Benefit banking is available through the Excess Benefit Account feature, a separately established secure money market account with Nationwide Bank. Inflation protection is available to help the monthly benefit keep up with increases in the cost of care. International benefits are available if care is provided outside of the US. However, with these and other product features, there are limitations and exclusions. Refer to your policy and attached riders for details on product features, including benefits, exclusions, limitations, terms and definitions (which may vary by state).

4. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 4 Disclosure The extent to which an LTC benefit payment is received tax-free is limited, on an annual basis, to the greater of the actual qualifying LTC expenses incurred or the HIPAA per diem amount or its equivalent. CareMatters is a cash indemnity policy that pays benefits upon showing that the insured has been certified as a having the triggers required to qualify a claim. Submission and review of bills and receipts supporting actual LTC expenses incurred is not required for payment of benefits nor is the benefit limited to the daily HIPAA per diem. Therefore, the company cannot guarantee that LTC benefit payments will be treated as a tax-free given the taxpayer’s specific circumstances, especially when benefits are used to pay for care provided by family members or collected from more than one policy. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances upon qualifying for LTC monthly benefits. For contracts that meet the MEC definitions of IRC Section 7702A, most distributions are taxed on a first-in/first-out basis, however LTC benefit payments can be received tax-free under IRC Section 7702B. Gains from partial surrenders and loans from a MEC will be taxable and if taken prior to age 59 1/2, may be subject to a 10% penalty. F ederal tax laws are complex and subject to change. Neither the company nor its representatives give legal or tax advice. Nationwide YourLife CareMatters may not be available in every state. Please contact Nationwide to determine product availability in your state. Life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Nationwide YourLife CareMatters are service marks of Nationwide Mutual Insurance Company. © 2015 Nationwide FOR INSURANCE PROFESSIONAL USE ONLY — NOT FOR DISTRIBUTION TO THE PUBLIC

5. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 5 Apples vs. Oranges If you spreadsheet CareMatters against other companies –CareMatters will likely lose –because CareMatters is different Why would you compare apples against an orange? Other companies are apples CareMatters is an orange CareMatters is MORE than just a benefit pool

6. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 6 Agenda The importance of having LTC coverage What is CareMatters? How does it work? How CareMatters is different? Indemnity vs. Reimbursement - what you may not know The value of Cash Indemnity A different way to compare product pricing Sales positioning Talking to high net worth clients about LTC

7. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 7 What are the chances of needing LTC? They don’t identify with “risk pools” IN REALITY……….. For one individual 0% or 100% What if it turns out to be 100%? Now what? 70% chance of needing LTC if you live to age 65 1 1 2015 Medicare Handbook

8. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 8 Long term care is generally paid for by either….. Cost is the potential loss of health, well being or earning ability a spouse or other loved one Lifestyle Dollar for dollar expenditure of your money Income Cost efficient leveraged benefit amount Insurance

9. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 9 How will providing unpaid care affect the lifestyle of a loved one?....... There is a cost to unpaid care giving …… Seniors giving care are more likely to be seniors who need care ̶ 40% of seniors caregivers predecease person they are caring for 1 The average unpaid caregiver is a middle aged woman who works (or did) full time 2 ̶ But loses an average of $565,000 in lost wages and benefits ̶ Quit job, reduce hours, pass up promotions ̶ Loses time with their own family 1 Ron Kauffman, “I’m Losing Myself Being a Caregiver”, Caring.com Feb. 2014 2 AALTCI American Association for Long-Term Care Insurance, Jan. 2013

10. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 10 Does your client have disposable income for LTC?.... Long-term care coverage protects income and assets

11. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 11 Ways to Insure for Long-term Care ….. Traditional LTC insurance Most customizable Most LTC coverage Only pays if LTC is needed, No DB No premium guarantees Limited mostly to annual pay modes LTC Riders on Life Insurance Least customizable- Full DB, Least LTC Pays full benefit - LTC needed or not Premiums can be guaranteed Choice of premium schedules/base prod. LTC Linked Benefit Policy Customizable - DB for cost recovery More LTC Always pays at least the premium paid Premiums are guaranteed Single pay up to 10 - pay schedules

12. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 12 CareMatters is a Linked-Benefit LTC Policy – What does that mean? A linked benefit policy is also known as asset based LTC ̶ An asset is repositioned to create: benefit pools that can be used if LTC is needed - OR a death benefit, guaranteed to be equal to or more than the premium paid into the policy if LTC is never needed ̶ Income sources can also be used for a short pays Excess income, RMDs from IRAs, etc. 5 pay and 10 pay schedules available ̵ Monthly modes available on 5 and 10 pay option ̵ (no modal factor!)

13. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 13 Long-term Care if you need it…… Death benefit if you don’t No loss of premium dollars (“no use it or lose it”) ̵ Policy intended for LTC coverage, not death benefit protection ̵ LTC Benefit provides ̵ a source of income to pay for LTC expenses ̵ helps preserve assets providing other income sources ̵ Death Benefit provides ̵ cost recovery if LTC is not used ̵ preserves the asset used

14. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 14 $100,000 $180,419$360,838 $541,257 $36,083 $7,517 Return of Premium Feature (to owner) More features similar to Traditional LTC policies DB at least 20% of Specified DB Amt. Nationwide YourLife CareMatters SM — How It Works * Stated benefit amounts are based on hypothetical examples, actual benefit amounts received may vary. This example assumes a 55-year old female, couple rate, non-tobacco, 6-year benefit duration, and no inflation option.

15. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 15 How CareMatters is different Return of Premium feature Cash Indemnity Benefit Payout ̵ currently the only one in the linked-benefit industry ̵ no HIPAA limits Optional Benefit Banking available Informal Caregivers allowed – family, friends 20% Guaranteed Minimum Residual death benefit ̵ currently the highest in the industry

16. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 16 Return of Premium Feature 30 day free look period Return of Premium feature ̵ Single pays – 5 year vesting schedule ̵ 5 Pay - ROP available on day 1 of year 6 ̵ 10 Pay - ROP available on day 1 of year 11 Year 1Year 2Year 3Year 4Year 5Year 6 85%88%91%94%97%100%

17. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 17 The difference is in the details ……… Reimbursement Policies What you might already know -Requires monthly submission of bills and receipts -Reimburses lesser of monthly LTC benefit or amount of bill -May coordinate benefits with other reimbursement policies owned -Each insurer pays a proportional amount -Only receive in total the amount of your bill What you may not know -Have limitations - Only reimburse approved services Concierge level services may not be approved -Generally do not cover or have limitations for transportation costs -Generally places limits on coverage for home modifications May need approval for modification prior to reimbursement Ex. – one modification a year Ex. – lifetime limit totaling 2 months LTC benefits for modifications

18. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 18 The difference is in the Details….. Indemnity Policies What you might already know -Pays the full monthly LTC benefit to the policy owner -Pays in full even when collecting from other policies -No monthly bills or receipts to submit -Note: some companies require monthly “proof of billable services” before the full monthly benefit is paid -Nationwide does not require this What you may not know -Few restrictions on services – may require licensed provider -Use excess benefits as desired for home modifications, transportation costs, prescriptions, or anything else -May pay in excess of HIPAA -You may collect tax free the greater of the HIPAA per diem for the year of claim or, actual LTC costs incurred -There is more than one type of indemnity plan

19. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 19 CareMatters is Cash Indemnity Currently the only Cash Indemnity linked benefit policy There for what you need when you need it No restrictions on services ̶ Use informal caregivers, even family members (as long as in Plan of Care) Pays owner of the policy ̶ Use in an Irrevocable Life Insurance Trust (ILIT) No monthly bills or receipts needed to collect monthly benefits 1 CareMatters has no HIPAA cap ̶ Pay for concierge level LTC services without needing approval No approvals needed from insurance company ̶ Pay for all home modifications needed ̶ Pay for transportation costs and other care related needs Use excess benefits for anything else 1 Bills and receipts may be one source needed to establish the claim, however, they will not be required on a monthly basis in order to receive monthly LTC benefits

20. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 20 70% of claims are Home Health Care 1 Average cost of Home Health Care in 2013 - $1274 monthly 1 Projected Home Health Care costs in 30 years - $3000 monthly 3 Indemnity– helps to collect more CareMatters Cash Indemnity $5000 monthly LTC benefit Pays full $5,000 monthly After 48 months (with first 3 months - $0) pays $225,000 Claim scenario Home Health Care costs $3000 monthly 4 year (48 month) claim Reimbursement $6000 monthly LTC benefit only pays $3000 monthly after 48 months pays $144,000 1 Assumes 2013 average Home Health Care cost for 82 year old at 4 hours a day 3.5 days per week at $21 per hour …….. 2 AALTCI 2014 Sourcebook …….. 3 Assumes current inflation of 0.5% 1 becomes 2.9% over 30 years

21. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 21 Benefit Banking Details ….. What is Benefit Banking? -Saving excess benefits not needed for care for later use How do you bank excess funds and why? -Deposit in your own checking or savings account - OR -Open an optional Nationwide Benefit banking account -Helps collect more LTC benefit dollars if death occurs before policy benefits are exhausted How does the Nationwide Benefit Banking work? -Excess benefits are separately deposited in a Nationwide secure money market account -Account earns interest and has check writing privileges -Funds considered to have been received by owner -Unspent dollars distributed by will – or - set up a TOD for bene.

22. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 22 Benefit Banking – helps you keep more Take the money - bank the excess! Reimbursement $6,000 Maximum monthly LTC benefit issued $3,000 monthly LTC reimbursement Benefits to Bank = $0 $3,000 X 48 months = $144,000 Total LTC benefits paid LTC expenses = $144,000 Side account $0 6 year benefit period Claim lasting 4 years $3,000 monthly HHC expenses Reimbursement pays no excess to bank Indemnity pays full benefits – excess can be banked for later CareMatters Cash Indemnity $5,000 Maximum monthly LTC benefit issued $5,000 per month LTC benefit paid Bank $2,000 per month 3 month elimination = $0 $5,000 X 45 months = $225,000 Total LTC benefits paid LTC expenses = $144,000 plus $81,000 in benefit bank account (or personal account) Benefit Banking is optional and at no charge. Banked benefits are owned by the policy owner.

23. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 23 Informal Caregivers What is informal caregiver? -Generally, it’s a caregiver that is not licensed or certified -Most often a family member -Sometimes a friend or neighbor CareMatters pays Cash Indemnity benefits -Informal (unlicensed) caregivers allowed – (100% benefit) -Immediate family allowed to provide care – (100% benefit) Are there any special requirements? -Just one - the plan of care must state informal care is appropriate for the insured

24. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 24 20% Residual Death Benefit What is the Residual Death Benefit? ̶ Guaranteed death benefit if some or all LTC is used ̶ Guaranteed to be at least 20% of Specified Amount Currently highest in the industry Paid income tax free to beneficiary May be used to determine potential net cost of policy -Gross cost = what you pay in premium at issue -Net Cost = gross cost minus residual death benefit amount

25. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 25 Comparing CareMatters with the competition A traditional spreadsheet of products will not likely show the VALUE of CareMatters You can’t compare an orange to apples Look at net cost instead of gross cost Consider the value of cash indemnity

26. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 26 Net Cost vs. Gross Cost Why consider net cost? -70% chance you will need LTC if you reach age 65 1 -Indemnity has greater chance of paying full Residual DB full benefits paid to owner regardless of expenses first pool may be paid faster – may get you to RDB faster -Benefit Banking retains unneeded funds for later –Nationwide currently has largest residual DB at 20% 1 Wall Street Journal Marketwatch – “The Cost of Long-term Care in your State”, Anne Tergensen, April 15, 2014

27. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 27 The Value of Cash Indemnity ……. It also helps to consider features that have value to client CareMatters Cash Indemnity features with extra “value” -Flexibility and Ease of Use at claim time -No monthly paperwork to submit to receive LTC benefits -No approvals needed –Home modifications, alternative care - you decide Pay for what you need when you need it -Banked funds can be use for anything -Informal caregivers allowed – even immediate family

28. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 28 Gross Cost vs. Net Cost Comparison Hypothetical case study -Female age 60, single, non-tobacco -6 year LTC benefit period (using 2 plus 4 strategy) -$540,000 total LTC benefits, $180,000 death benefit - Residual death benefit is an important pricing consideration Nationwide CareMatters Lincoln Money Guard Reserve II Pacific Life Premier Care Benefit payment styleCash IndemnityReimbursement Simplified UnderwritingYes Single Prem. $120,179$117,669 $133,738 Residual DB minus $ 36,000 minus $ 9,000 minus $ 5,000 Net Cost $ 84,179 $108,669 $128,738 Information shown above is based on single premium scenarios. All information presented is deemed reliable but its completeness and accuracy cannot be guaranteed. We have made every effort to make sure that the information provided here is accurate, but it cannot be guaranteed. It’s possible that there are differences between the products compared which are not reflected and/or of which we are unaware

29. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 29 Current Assets Today - $100,000 Age 88 - $228,793 With tax on interest out of pocket In 52 years - $465,089 (if taxes paid out of pocket) Assumes annual rate of 3% CareMatters Today - $472,977 Age 88 - $472,977 Plus no tax on growth Plus Potential Residual DB - $31,531 Female, age 60, NT couples rate, no inflation Case Study Repurposing a Certificate of Deposit Self-insure vs. Long-term Care with CareMatters ℠

30. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 30 CareMatters SM for the Affluent Case Study 1 Stated benefit amounts are based on hypothetical examples, actual benefit amounts received may vary. This example assumes a 55- year- old female, couple rate, non-tobacco, 6-year benefit duration, no inflation option…. 2 Assumes at least $100,000 spent on care Net Cost 2 of care = $100,000 or more Net Cost 2 of $541,257 in benefits = $63,917 Reposition $100,000 For up to $541,257 of LTC 1 For heirs $36,083 DEATH BENEFIT ……………………………………………………………… Policy pays benefits first from premium $100,000 Ease of use - flexibility – cash indemnity Nationwide’s pays monthly LTC benefits up to an additional $441,257 1 vs. Self Assuring with CareMatters SM Dedicate $100,000 of assets to pay for LTC Client uses more of their own income/assets to pay for additional LTC bills Pay for care using the $100,000 Ease of use – flexibility Pay for care using the $100,000 Ease of use – flexibility Self Insuring But when that runs out If LTC is needed If LTC is still needed

31. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 31 Don’t just look at the buckets – look at how the benefits are paid!

32. FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC 32 In Summary Nationwide CareMatters SM is a LTC solution that offers: a different way to insure long-term care with a Return of Premium feature and Cash Indemnity benefits that guarantees to pay the full monthly LTC benefit amount allows informal and family caregivers and pays a minimum death benefit even if all LTC is used LTC planning is part of good, comprehensive retirement planning that protects income and assets Having cash indemnity long-term care coverage in place provides flexibility and keeps the client in control of: their Premium options their Benefits their Care Choices

33. Questions? Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value FOR BROKER/DEALER USE ONLY—NOT FOR USE WITH THE PUBLIC [third part name] is not related to or affiliated with Nationwide Life Insurance Company or any of its affiliates. Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. Beneficiary Protector is a service mark of Nationwide Life Insurance Company. © 2015 Nationwide Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured by any federal government agency May lose value Independent Dealer:1-800-321-6064 Financial Institutions:1-800-893-5399 Wirehouse/Regionals:1-800-720-1511 Nationwide Agents:1-888-333-4202 Nationwide Financial Network:1-877-223-0795 BGA:1-888-767-7373