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LTC Planning Options…LTC Planning Options…

-Three ways you can fund your LTC plan-Three ways you can fund your LTC plan

1. Use your own personal or family’s savings & 1. Use your own personal or family’s savings & investments investments

- Self Insure - Self Insure

2. Medicaid 2. Medicaid - Impoverishment- Impoverishment

3. Insurance 3. Insurance - Transfer the Risk & Spend the Ins. Company’s Money- Transfer the Risk & Spend the Ins. Company’s Money

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Funding Your LTC Plan With InsuranceFunding Your LTC Plan With Insurance

Premium Based Premium Based LTCILTCI

Traditional Traditional Long Term Care Long Term Care

Insurance Insurance

Pay a monthly or annual Pay a monthly or annual premium until you use itpremium until you use it

More robust coverage, More robust coverage, benefits and options with benefits and options with increasing benefits to keep increasing benefits to keep up with inflationup with inflation

Asset Based LTCIAsset Based LTCI

Annuity/Life InsuranceAnnuity/Life Insurance with LTC Benefitswith LTC Benefits

(Hybrid/Combo Policies)(Hybrid/Combo Policies)

Leverage money by Leverage money by repositioning an investment repositioning an investment or “rainy day” accountor “rainy day” account

If care is never needed, cash If care is never needed, cash value, annuity value or death value, annuity value or death benefit will be paid to a benefit will be paid to a beneficiarybeneficiary

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“Hybrid/Combo/Linked Benefit LTC Policies” -One Simple Solution for Long Term Care-

Protection for individuals that are “Self Insured” Protection for individuals that are “Self Insured” Two types: Life Insurance Based & Annuity BasedTwo types: Life Insurance Based & Annuity Based

Helps those who can’t or won’t buy standard LTCI by Helps those who can’t or won’t buy standard LTCI by creating a “creating a “STOP LOSS”STOP LOSS” on the spend down of their on the spend down of their person savings.person savings.

Tax Free* withdrawals from personal savings fund or Tax Free* withdrawals from personal savings fund or death benefit to pay LTC needs. (Regardless of the death benefit to pay LTC needs. (Regardless of the original cost basis)original cost basis)

Provides a suitable answer to the difficulty of getting Provides a suitable answer to the difficulty of getting consumers to respond to stand-alone LTC policiesconsumers to respond to stand-alone LTC policies

(*Pension Protection Act of 2006, effective Jan. 1, 2010)

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Annuity/LTC HybridAnnuity/LTC Hybrid Annuity’s Accumulated Value (cash value) can be paid Annuity’s Accumulated Value (cash value) can be paid

out as a tax free LTC benefitout as a tax free LTC benefit

Can provide additional Tax Free LTC benefits (beyond Can provide additional Tax Free LTC benefits (beyond the Annuity’s Accumulated Value) through options or the Annuity’s Accumulated Value) through options or ridersriders

Provides leverage and protection for individuals that Provides leverage and protection for individuals that can not qualify to purchase stand-alone LTC policiescan not qualify to purchase stand-alone LTC policies

Any existing life ins. policy with a cash value or non-Any existing life ins. policy with a cash value or non-qualified annuity can be fully or partially exchanged for qualified annuity can be fully or partially exchanged for this product (Regardless of the original cost basis or this product (Regardless of the original cost basis or gain)gain)

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Life/LTC HybridLife/LTC Hybrid Death Benefit can be paid out as a true living benefit for LTC Death Benefit can be paid out as a true living benefit for LTC

expenses (tax free) expenses (tax free)

If not used for LTC expenses, the life insurance death benefit is If not used for LTC expenses, the life insurance death benefit is still available and paid out when insured passes awaystill available and paid out when insured passes away

Can provide additional Tax Free LTC benefits (beyond the Can provide additional Tax Free LTC benefits (beyond the

Death Benefit’s Value) through options or ridersDeath Benefit’s Value) through options or riders

Provides an simple attractive alternative for consumers that Provides an simple attractive alternative for consumers that don’t respond to stand-alone LTC policiesdon’t respond to stand-alone LTC policies

Any existing life ins. policy with a cash value can be fully or Any existing life ins. policy with a cash value can be fully or partially exchanged for this product (Regardless of the original partially exchanged for this product (Regardless of the original cost basis or gain)cost basis or gain)

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Money-back guarantee Paid “income tax-free* to Providing at least 6 years of coverage (Return of Premium) your named beneficiary of $3,988 in income tax-free monthly benefits for Long- Term Care

Example of Life Insurance Based: Example of Life Insurance Based: “Linked Benefits LTC Policy”“Linked Benefits LTC Policy”

One simple approach for long term careOne simple approach for long term careSample: Male age 55