Lifestyle 2000 TM

1. Lifestyle 2000TM LONG TERM CARE POINT OF SALE PRESENTATION

2. Lifestyle 2000TM INDIVIDUAL LONG TERM CARE POINT OF SALE PRESENTATION SLTC00-16

3. Lifestyle 2000TM Individual Long Term Care Financial planning’s missing link SLTC00-16

4. Lifestyle 2000TM Are Your Retirement Income Dollars Protected? If you were to incur a catastrophic loss and need long term assistance; do you have the coverage to pay for that assistance?

5. Lifestyle 2000TM If not; your retirement dollars could be reduced rapidly if you or a family member needed long- term assistance.

6. Lifestyle 2000TM I would like to offer you State Life’s Lifestyle 2000 Long Term Care Insurance Policy.

7. Lifestyle 2000TM You may be thinking you do not need this type of coverage.

8. Lifestyle 2000TM Let me give you a few reasons why this protection is so important.

9. Lifestyle 2000TM Although Long Term Care does provide Nursing Facility Care; Long Term Care does not mean Nursing Home Coverage.

10. Lifestyle 2000TM What is Long Term Care? Long Term Care is assistance provided to someone who has a condition or illness that limits his or her ability to perform normal daily activities.

11. Lifestyle 2000TM Long Term Care Includes: Assistance with Activities of Daily Living (ADL’s) - Bathing - Eating - Dressing - Toileting - Transferring - Continence

12. Lifestyle 2000TM Long Term Care Includes: - Nursing Care - Medications - Care Review

13. Lifestyle 2000TM Long Term Care Includes: • Rehabilitative and Therapeutic Care

14. Lifestyle 2000TM Generally, Long Term Care Insurance Isn’t • Medicare Supplement (Medigap) • Senior HMO’s • Disability Income Insurance • Accident Only Coverage • Most Private or Employer Medical Insurance Plans (some offer limited coverage)

15. Lifestyle 2000TM Who Will Pay for Long Term Care?

16. Lifestyle 2000TM Long Term Care Myths • My Children Will Take Care of Me • Medicare Pays for Long Term Care • Medicaid Will Take Care of the Bill • I Will Never Go to a Nursing Home

17. Lifestyle 2000TM Myth # 1 My Children Will Take Care Of Me American families are changing: - Families are spread out - Fewer children to care for parents - Children unable to care for parents

18. Lifestyle 2000TM Myth #2 Medicare Pays for Long Term Care Medicare Pays: - Only for Approved Charges - Only after 3 Days of Hospitalization - Only for Skilled or Rehabilitative Care - Only for 100 Days Maximum per Diagnosis

19. Lifestyle 2000TM Myth #3 Medicaid will take of the bill Federal Medicaid Spend-Down Limits(1) Qualified Medicaid Beneficiary Monthly Income Limit: Asset Limit: $691.00 ( Individual) $4000.00 (Individual) Nebraska $925.00 (Couple) $6000.00 (Couple) Nebraska ( 1) Nebraska Health & Human Services, 2000 www.hhs.state.ne.us/ags/agsmed.htm

20. Lifestyle 2000TM Myth #4 I WILL NEVER GO INTO A NURSING HOME!

21. Lifestyle 2000TM • What are the chances of needing Long Term Care? The total risk of a 65- year- old entering a nursing home at some point in life is 49%(2) (2) Long Term Care, Knowing the Risk, Paying the Price, Health Insurance of America, 1997

22. Lifestyle 2000TM Friends and family may not be in a financial position to help pay for the care you require when you need it. Currently, one year in the nursing home is estimated to cost $41,000 as a national average.(3) If we consider even a conservative inflation increase of 5% per year, within the next 25 years, one year’s stay in a nursing home could more than $100,000.(4) (3), (4) The American Health Care Association, September 1998

23. Lifestyle 2000TM • Protecting Current Assets • Even younger clients have a current need for Long Term Care Insurance • Long Term Care Utilization: • 3% are under age 18 • 40% are ages 18 to 64 • 57% are over age 65(5) (5) U.S. Accounting Office, April 1995

24. Lifestyle 2000TM • Long Term Care Insurance Helps You To: • Maintain Independence • Control the Quality of Your Care • Have Peace of Mind for Your Future • Preserve Your Assets

25. Lifestyle 2000TM Shopping for Insurance Coverage • Coverages - LIFETIME Coverage - Compound Inflation Protection - Adequate Daily Benefit Amount • Features - Paid-Up “Non-Cancellable” - Home Health Care with Alternative Plan of Care - Clear Language

26. Lifestyle 2000TM The Risks of Waiting • Health Risk - your health can change unexpectedly; it’s best to buy now while yours is good • Financial Risk -if you wait, your initial premium will be higher • LTC Insurance is purchased with Health, Age & Money

27. Nursing Facility Assisted Living Facility Home and Community Based Care Choice of Daily Benefits Lifetime Elimination 0, 30, 90 Day Elimination Periods Lifetime, 5 and 3 year Benefit Periods Restoration of Benefits Indemnity Option Ten Pay Option Single Premium Option Joint Waiver of Premium Alternative Plan of Care Bed Reservation Respite Care Guaranteed Renewable Personal Care Advisor Lifestyle 2000TM

28. Lifestyle 2000TM Coverage Provided by Policy Series S-6000-P, underwritten by The State Life Insurance Company, Indianapolis, IN. Policy benefits and options vary by state and some of those listed here may not be available in your state. For costs and further details of coverage, including exclusions and reductions or limitations and the terms under which the policy may be continued in force, contact your State Life agent. The information provided here is not intended as legal or tax advice. We recommend that you consult with an attorney, accountant or tax advisor regarding the tax implications of purchasing long term care insurance.