Life Insurance for Life The Power of Living Benefits

1. Life Insurance for Life • The Power of Living Benefits For Training Purposes Only- Agent Use only

2. Sales Concept: LTC Alternative w/Living Benefits For Training Purposes Only- Agent Use only

3. Living Benefits A life insurance product that combines the features and benefits of typical life insurance and long term care (LTC) insurance. For Training Purposes Only- Agent Use only

4. Death Insurance or Life Insurance for Life? TERMINAL ILLNESS Living Benefits + = One Solution Most life policies should be called “death” insurance. With the policies we offer clients through WRL, we can help protect families through life’s unpredictable changes – we call it Life Insurance for Life! DEATH BENEFIT CHRONIC ILLNESS CRITICAL ILLNESS For Training Purposes Only- Agent Use only

5. Long Term Care is a top concern among adults…. Yet only 5-6% own a long-term care insurance policy. That’s because: 1. Traditional LTC policies are very expensive 2. Difficult to underwrite 3. Subject to rate increases For those who have a long-term care policy, many fear they are “not getting their money’s worth – paying premiums over a lifetime and dying before they ever use them. Through living benefits you can help offer your clients more than LTC insurance; you can offer them life insurance for life. VS. For Training Purposes Only- Agent Use only

6. What Can Happen to Us? CHRONIC ILLNESS We may become Chronically Ill Chronic Illness affects many people and can create additional expenses for a family. Some of these expenses may include: Nursing Home Cost for a Private Room For nursing home care, the national monthly average is now $6,266, which translates into $75,190 annually. 1 Assisted Living Facility For assisted living facilities the national monthly average is now $3,185, which translates into $38,220 annually.1 Home Health Aide (Certified) For Home Heath Aide, the national monthly average is now $3,623, which translates into $43,472 annually. 1 1. Cost of Care Maps Genworth 2010 Cost of Care Survey- 2010 For Training Purposes Only- Agent Use only

7. What are some of the reasons why people are not buying LTC? The cost of Long Term Care is very expensive The fear of paying the premiums over a lifetime and then dying before ever using it Very Difficult underwriting and hard to qualify For Training Purposes Only- Agent Use only

8. Why Living Benefits make sense as an Alternative to LTC? Little to no morbidity underwriting If you don’t use it before you die, a death benefit will be paid to the beneficiary More consumers can afford the hybrid approach rather than individual policies Not a reimbursement of expenses like traditional LTC You get to use the money however you want For Training Purposes Only- Agent Use only

9. Living Benefits when you need them most! For Training Purposes Only- Agent Use only

10. Terminal Illness Accelerated Death Benefit Rider Terminal illness is determined by a condition resulting from injury or illness which, as determined by a physician, has reduced life expectancy to not more than 12 months (no more than 24 months in TX, GA, IL, MA, and WA). This allows the insured to access up to 100% (max of $500,000) of the policy’s death benefit in the event of a terminal illness For Training Purposes Only- Agent Use only

11. Chronic Illness Accelerated Death Benefit Rider Activities of Daily Living: Bathing Dressing Toileting Eating Continence Transferring Chronically ill is being unable to perform 2 of 6 activities of daily living without assistance from another person or being cognitively impaired. 90 day waiting period Up to 2% of death benefit accessible per month Max lifetime benefit is 90% or $500,000 (whichever is less) The policy must be inforce for 2 years before benefits are available For Training Purposes Only- Agent Use only

12. Critical Illness Accelerated Death Benefit Rider Allows the insured to access his/her death benefit if they are critically ill Critical Illness includes diagnosis of cancer, heart attack, stroke, ALS, kidney failure, and major organ transplant Max lifetime benefit is 90% or $500,000 whichever is less Benefit is paid out in a lump sum and the amount of money you will be able to receive is dependant on the severity of the critical illness. For Training Purposes Only- Agent Use only

13. Facts About LTC 70% of People over 65 will require some form of Long Term Care In 2005, the US spent $206.6 Billion on LTC and that doesn’t include informal care from someone like a child or spouse Medicare will only pay a max of 100 days in a nursing home - will not pay for any home health or adult day care. Source: www.longtermcare.gov For Training Purposes Only- Agent Use only

14. Impact of Caregiving on Caregivers’ Physical Health While researchers have long known that caregiving can have deleterious mental health effects for caregivers, research shows that caregiving can have serious physical health consequences as well. Studies have found that caregivers may have increased blood pressure and insulin levels,1  may have impaired immune systems2 and may be at increased risk for cardiovascular disease3 among other adverse health outcomes. A study of elderly spousal caregivers (aged 66-96) found that caregivers who experience caregiving-related stress have a 63% higher mortality rate than non-caregivers of the same age.4, 5 1.Cannuscio, C.C., J. Jones, I. Kawachi, G.A. Colditz, L. Berkman and E. Rimm. 2002. Reverberation of Family Illness: A Longitudinal etc, American Journal of Public Health 92:305-1311. 2. Kiecolt Glaser, Ja., and R. Glaser. Chronic Stress and Age-Related, etc Academy of Sciences, 2003. 3. Lee, S, G.A. Colditz, L. Berkman, and I. Kawachi. 2003. Caregiving & Risk of Coronary Dis. in U.S. Women: American Journal of Preventive Medicine 24: 113-119. 4. Schulz, R. and S. R. Beach, Caregiving…Mortality, JAMA 282 (1999): 2215-2219. 5. Navaie-Waliser, M., P.H. Feldman, D.A. Gould, C.L. Levine, A.N. Kuerbis, and K. Donelan. 2002. When the Caregiver Needs Care: The Plight , etc 92:409-413. For Training Purposes Only- Agent Use only

15. Real World Example For Training Purposes Only- Agent Use only

16. Price Comparisons Advantage Term VS TransTerm & LTC policy For Training Purposes Only- Agent Use only

17. Male 40 Std Plus NT wanting $4,000/ month LTC benefit For Training Purposes Only- Agent Use only

18. For Training Purposes Only- Agent Use only

19. Male 50 Std Plus NT wanting $2,000/ month LTC benefit For Training Purposes Only- Agent Use only

20. For Training Purposes Only- Agent Use only

21. Male 50 Std Plus NT wanting $5,000/ month LTC benefit For Training Purposes Only- Agent Use only

22. For Training Purposes Only- Agent Use only

23. Female 60 Std Plus NT wanting $5,000/ month LTC benefit For Training Purposes Only- Agent Use only

24. For Training Purposes Only- Agent Use only

25. Female 65 Std Plus NT wanting $5,000/ month LTC benefit For Training Purposes Only- Agent Use only

26. For Training Purposes Only- Agent Use only

27. Male 55 Std Plus NT wanting LTC benefits at older ages For Training Purposes Only- Agent Use only

28. For Training Purposes Only- Agent Use only

29. The overall average length of stay in a nursing facility is 2 ½ Years! *AALTCI, 2010 LTCi Sourcebook For Training Purposes Only- Agent Use only

30. THANKS FOR YOUR PARTICIPATION! For Training Purposes Only- Agent Use only