Privileged Choice ® Flex California: Producer Product Training (Month Year)) Products Underwritten...

Privileged Choice® FlexCalifornia: Producer Product Training

(Month Year))

Products Underwritten by Genworth Life Insurance Company. For Producer/Agent/Broker Use Only. Not to be reproduced or shown to the public.

©2013 Genworth Holdings, Inc. All rights reserved.

(Presenter’s Name)

(Title)

119724CA 05/29/13

Not all product features are shown; significant product features are selected for informational purposes only. Features, benefits, riders and discounts may vary; and certain conditions and restrictions may apply. Only the applicable policy contains actual terms and conditions of coverage.

The Following Training Program Is Subject to Variation By State and Does Not Include All State Variations. For State Variations, Please Refer to State-specific Brochures.

INTRODUCING PRIVILEGED CHOICE FLEX

For Producer/Agent/Broker Use Only. Not to be reproduced or shown to the public.

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Training Disclaimer



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Table of Contents

• The Core 4℠ Decisions

• Care Options

Standard Benefits

Optional Benefits

Discounts



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The Core 4℠ DecisionsPrivileged Choice® Flex



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Decisions 1 and 2: Benefit Payments

Help your client choose the option that makes the most sense.

Ages 18-79: $1,500 - $12,000

Increments of $100

MONTHLY MAXIMUM BENEFIT MULTIPLIER (MONTHS)

• 24• 36• 48• 60

• 72 • 96• 120

Ages 18-79: $50 - $400

Increments of $5

DAILY MAXIMUM BENEFIT MULTIPLIER (DAYS)

• 730• 1,095 • 1,460• 1,825

• 2,190 • 2,920 • 3,650

CORE 4

Partnership:12 months also available

Partnership:365 days also available



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In the example the policyholder has $240,000 in benefits available to be used to reimburse covered long term care expenses.

If benefit payments are less than your monthly or daily maximum, benefits will last until the coverage maximum is exhausted as long as the policy is in force.

• Example

48 MonthsBenefit Multiplier

$5,000Monthly Maximum

$240,000coverage maximum

x =

Initial Coverage Maximum CORE 4



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1st day home care – Client can choose a Waiver of Home Care Elimination Period option so that coverage for Home and

Community Care can begin immediately

CALENDAR DAY SERVICE DAY

• Counts days from first day of covered care

• Doesn’t require care each day

• Choose from 30 or 90 Days

• One day of covered care reduces the Elimination Period by One day

• Choose from 30 or 90 Days

Decision 3: Elimination Period OptionsCORE 4



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Increases provided will not be reduced because of any claims paid, regardless of

the inflation selected.

Decision 4: Benefit Increase OptionsCORE 4

BENEFIT INCREASE OPTIONS

• 5% or 3% Compound

• 5% Simple

• Future Purchase Option

• None

Partnership:5% Compound RequiredAges 70+ may select 5% Simple



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Future Purchase Option (FPO)

• Provides the ability to increase benefit maximums without underwriting

• Benefit increase offers made every 3 years, until policy termination, the insured becomes claim eligible, or declines three consecutive offers

• Offer to increase benefits by 5% annual compound rate for prior 3 years (approximately 15.8% benefit increase)

Partnership: FPO not available



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Future Purchase Option

Initial Maximum Monthly Benefit = $4,500

Example 1 Example 2 Example 3

OfferMaximum Monthly Benefit

OfferMonthly Benefit

OfferMaximum Monthly Benefit

Year 3 Accepted $5,211.00 Rejected $4,500.00 Rejected $4,500.00

Year 6 Accepted $6,034.34 Accepted $5,211.00 Rejected $4,500.00

Year 9 Accepted $6,987.76 Accepted $6,034.34 Rejected $4,500.00

Year 12 Accepted $8,091.83 Rejected $6,034.34 No offer $4,500.00

Year 15 Accepted $9,370.34 Accepted $6,987.76 No offer $4,500.00



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Care OptionsPrivileged Choice® Flex



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Benefit Eligibility

1. Being Chronically Ill, which means:

Being unable to perform, without Substantial Assistance, at least 2 of the 6 Activities of Daily Living (ADLs) for a period expected to last at least 90 days

• Bathing

• Dressing

• Continence

• Toileting

• Transferring

• Eating

OR...

Requiring Substantial Supervision due to a Severe Cognitive Impairment (e.g. Alzheimer’s);

2. The Company receives a Current Eligibility Certification; and

3. The Company receives ongoing proof the Covered Care received is needed due to the insured being Chronically Ill.

One qualifies for benefits by

• Reimburses 100% of eligible expenses up to the Daily or Monthly Maximum

• Licensed facilities engaged primarily in providing 24 hour per day nursing care

• Care and support services

• Room and meal charges

• Private duty nurses not employed by the facility

• Subject to the Elimination Period



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Nursing Facility Benefits



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We reimburse for professional and informal caregivers such as friends or neighbors, and caregivers can be independent and do not need to be

associated with an agency.

Home & Community Care Benefit

Covered Care and Services in the Home

Reimburses actual expenses up to the daily or monthly maximum

• Home health aides and personal care attendants

• Skilled services such as nurses or therapists

• Homemaker services

• Adult day care

• Chore services

• Subject to the Elimination Period unless 1st Day Home Care is chosen

• Optional payment limit of 50% of the Nursing Facility Maximum is available for a reduced premium.



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Partnership: 100% or 70%

Residential Care Facility Benefits

Reimburses expenses up to the Daily or Monthly Maximum

• Choose from 100% or 75%

• Facilities primarily engaged in providing 24 hour per day Residential Care

• Must be licensed or certified when required

- If licensure or certification is not required, it must meet policy requirements

• Includes room charges as well as residential care and support services




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Included BenefitsPrivileged Choice® Flex



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Hospice Care

Services designed to provide palliative care and alleviate discomfort when Chronically Ill and Terminally Ill.

• Care received while living at home

• Care received in a Facility (including room charges)

- Includes Nursing and Residential Care Facilities

- Other licensed or certified Hospice Care Facilities

• Terminally ill means having 6 months or less to live, as determined by physician

• Not subject to the Elimination Period



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Home Assistance Benefit

Reimbursement for eligible expenses incurred for

• Home modifications

• Assistive devices

• Supportive equipment

• Emergency response systems and monitoring fees

• Caregiver Training

3 x MonthlyNursing Facility Max.

90 x DailyNursing Facility Max.

International coverage now includes Home Care.



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International Coverage

• Covered up to 25% of the Nursing Facility Maximum each month for a maximum of 365 days

• Up to 50% of the Nursing Facility Maximum

No payment will be made for this benefit for expenses incurred more than 4 years after the date the first expense payable under

this benefit is incurred.

Home Care Nursing Facility Care



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Bed Reservation

This benefit pays covered expenses incurred to reserve accommodations for any reason while temporarily absent from a covered facility

• 60 days per calendar year




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Respite Care

Temporary care to provide short-term relief for the person who normally and primarily provides regular unpaid care in the home

• Up to 30 days care per calendar year

• Benefits payable up to the Daily or Monthly Maximum for the location in which respite care is received

• Not subject to the Elimination Period



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Privileged Care® Coordination

The Privileged Care Coordination Team Can:

• Assist in completing initial claims forms

• Develop and suggest initial and subsequent Plans of Care

• Ongoing assessment of personal need for care and services

• The Privileged Care Coordination Team does not make claims decisions

The cost of these services does not reduce

the policy maximum.



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Waiver of Premium

Waives premiums while receiving covered care under the following benefits:

• Home and Community Care

• Nursing Facilities

• Residential Care Facilities

• Hospice Care

• Bed Reservation

Waiver extends to spouse or partner with Shared

Coverage Rider.



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Wellness Program

• Genworth and Mayo Clinic have teamed up to offer Live+Well, an exciting wellness program available to Privileged Choice Flex policyholders and their spouse or partner.

Live+Well provides access to Mayo Clinic’s world-class

wellness tools, services and content, including:

• Personalized on-line tools to assess and measure progress towards better health

• Premier individualized coaching program

• Access to the Ask Mayo Clinic 24-hour Nurse Line

• Quarterly newsletter featuring topics like healthy eating, exercise, and independent living

• Mayo’s Guide to Self Care offering guidance on how to manage 300+ of the most common ailments and illnesses



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REGISTER

Policyholders (and their spouse or partner) will register at www.genworth.com/livewell. They’ll need:

• Policy Number to verify Live+Well access

• Social Security Number to verify [policy/certificate] ownership

• Unique email address*

Once registered, policyholders will receive:

• Quarterly Live+Well newsletter for life of their policy

• Free copy of the Mayo Clinic Guide to Self-Care book

Registrants take the online Mayo Clinic Health Assessment and receive:

• Access to the Ask Mayo Clinic 24/7 Nurse Line• Online and telephonic coaching programs

based on individual health

Custom, interactive site based on individuals’ health goals

• Set health targets and track progress through the personalized online portal

• Use online community support, download podcasts with Mayo experts, search health topics and more

• Get 24/7 access to Mayo-authored health and wellness information

1 MEASURE2

EXPERIENCE3

How Does Live+Well Work?

*Required by Mayo to send direct health-related messages to the individual user

ONLINE PHONE SERVICE HOME ASSESSMENT



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Caregiver Support offers information and referral services for policyholders and their families that they can access “Now”.

Caregiver Support Services

*CareScout is a Genworth Financial business that provides professional elder care related support activities.

• Helpful Tips such as what to look for when selecting a care provider.

• Search Tools with access to over 90,000 long term care providers.

• If the consumer prefers they can speak to a dedicated Care Advocate to help with a personal assessment and provider options.

• They will also provide a personalized Resource Guide.

• This service is standard for an Insured at the time of claim. It is now available to an uninsured family member for a fee.

• During this visit, the nurse will assess the family member's situation and care needs and develop a plan of care.



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Alternative Care

Potentially covers additional care, services, equipment or other items that are not stated in the policy

• Subject to a plan of care and our mutual agreement

Keeps up with changes to services as they evolve in

the future.



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Contingent Nonforfeiture

Available if a substantial increase in policy premiums has occurred

• Allows conversion to a paid-up policy with a reduced Coverage Maximum

• Reduced coverage maximum will be the greater of:

- 100% of premiums paid for the policy, excluding any waived premium,

OR

- One month (30 days) of the Nursing Facility Maximum



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Optional FeaturesPrivileged Choice® Flex



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Optional 1st Day Home Care

• Waives the Elimination Period for Home and Community Care benefits

• Days of Covered Home and Community Care reduce the Facility Elimination Period

20%of the Nursing Facility

Maximum



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• Allows a one time cash payment for covered expenses incurred while satisfying the Elimination Period

• The Transition Benefit is available when the insured becomes claim eligible and incurs a qualifying service

Provides a one time lump sum.

Optional Transition Benefit

5 Timesthe Nursing Facility Maximum



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• A Shared Coverage Rider joins two policies and clients can access the other’s benefits if needed

• Both parties must choose identical coverage

• The second policyholder is guaranteed to have access to at least 50% of his or her original coverage, even if the total shared coverage maximum has been depleted

• If one spouse/partner qualifies for Waiver of Premium, premiums for both policies will be waived

Optional Shared Coverage – How It Works



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Optional Shared Coverage – How It WorksScenario 1: One Person on Claim

Person B is guaranteed to have 50% of his or her original coverage maximum.

Person B: Original Premium $3,015.06

Minus Cost of Shared Rider - 250.84

$2,764.22

Original Shared Coverage Maximum

Person A Uses

Remaining Shared Coverage Maximum

Guarantee Adds

Person B’s Guaranteed Benefit



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Optional Shared Coverage – How It WorksScenario 1: Death of Spouse/Partner After Claim

$400,000

$380,000

$20,000

$80,000

$100,000



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Optional Shared Coverage – How It WorksScenario 2: Death of Spouse/Partner who had not used any benefit



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Optional Shared Coverage – How It WorksScenario 2: Death of Spouse/Partner who had not used any benefit

Person B: Original Premium $3,015.06

Minus Cost of Shared Rider - 250.84

$2,764.22

Person A Individual Coverage Maximum

Person B Individual Coverage Maximum

Person B’s Benefit Coverage Maximum After Person A’s Death

$200k

+ $200k

$400k



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Optional Restoration Benefit

Restores benefits used to the coverage maximum if, after benefits are paid, the policyholder is not benefit eligible for 180 Consecutive Days.

Example

Original Policy Amount $146,000

Claims Paid - $50,000

Remaining Coverage Maximum

$96,000

Restored After 180 Days Without Benefit Eligibility

$50,000

Partnership: Optional Restoration Benefit not available



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Optional Nonforfeiture Benefit

Provides for continuation of the Policy in paid-up status if it ends due to lapse after it has been in force for at least 3 consecutive years.

Coverage Maximum reduced to the greater of:

• The sum of all premium paid excluding any waived premium, or

• Amount equal to one month (30 days) of the Nursing Facility Benefit in effect at the time of lapse



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DiscountsPrivileged Choice® Flex



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Couples’ Discounts

Couples Discounts are available:

If both the client and spouse or partner are eligible, and issued policies, each client will receive a 40% Couples Discount.

If both clients are eligible and apply, but only one is issued a policy, he or she will still receive a 25% discount.



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Summary Privileged Choice® Flex

Privileged Choice® Flex… Refreshingly Flexible!

• Couples’ Benefit• Shared Benefits

• Discounts

• Home Care• 1st Day Home Care Available

• “Now” Benefits• Caregiver Support Services

• Wellness

• Included • Privileged Care Coordination

• Home Assistance

• International Coverage

Privileged Choice ® Flex California: Producer Product Training (Month Year)) Products Underwritten...

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