Putting the Entire TLC Presentation Together

1. Putting the Entire TLC Presentation Together Robert L. Burke Total Living Coverage® (TLC) universal life insurance with long term care benefits Underwritten by Genworth Life Insurance CompanyLynchburg, VA FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC. ©2008 Genworth Financial, Inc. All rights reserved. 46930 10/01/08

2. 2 Questions begin a new conversation • 1- Should something happen, what is your written plan of care? • 2- What have you set aside to pay for it? A lack of tangible answers is the beginning of CHANGE Presenting TLC

3. Consider… • Traditional long term care insurance (LTCI) may not be for everyone • Aversion to paying annual premiums • Dislike the idea of paying for something they may never use • Believe self-insuring is better option • Have not experienced a long term care need • Who’s likely to fit this? • Client Profile • 85% of TLC owners are age 58-72, retired or close to retirement • Average age, 62 • 59% of TLC owners are females (Singles?) • Average investable assets are $1.2 million Presenting TLC

4. Consider… • This is for clients who are healthy, wealthy and older Presenting TLC

5. $40K CDs $60K Life $250K Stocks $250K Mutual Funds Bonds $30K $100K Annuity What do you want to spend first? • Your clients may not fully understand the options • Stocks • Annuities • Mutual Funds • Bonds • CDs • Cash Presenting TLC

6. Analyze if it’s enough National Averages (Source: Genworth Financial 2008 Cost of Care Survey, April 30, 2008) 2020 2030 Current Cost Provider Type • Nursing Home (Private) $76,000/YR $176,000 $222,000 • Nursing Home (Semi-Private) $68,000/YR $122,000 $199,000 • Assisted Living (One-Bedroom) $36,000/YR $65,000 $105,000 • Home Health Aide (Non-Cert) $19/Hour $34 $56 • Homemaker Services (Non-Cert) $18/Hour $32 $53 • Adult Day Health Care $59/Day $101 $164 Presenting TLC

7. Analyze if it’s enough…(continued) • Some studies estimate that we need to recruit as many as 200,000 new direct-care workers each year to meet future demand • By 2030, the number of Americans 65 years old and older will double • As the number of people who will need long term care increases, the number of people qualified to provide this care will not be sufficient A National Shortage of Long Term Caregivers* Between 2000 and 2030, the number of US elders will increase by 104 percent. During the same period, the number of women aged 25 to 44 – the group from which most direct-care workers have traditionally come – will increase by only 7 percent. One of the first steps to help stabilize and develop the direct-care workforce is to ensure that these workers have access to affordable health coverage. *Source: www.coverageiscritical.org Presenting TLC

8. Analyze if it’s enough…(continued) • Knowing these costs, • how long would your money really last? $80K-$100K set aside as “safe money,” even with growth, has little chance without some help. Presenting TLC

9. $40K CDs $60K Life $250K Stocks $250K Mutual Funds Bonds $30K $100K Annuity Reallocate Let’s “Reallocate” what you have already expected to spend first. Low Return Safe Money: CDs $40K Life Insurance: $60K Total: $100K Presenting TLC

10. Reallocate…(continued) • Total Living Coverage is simply another: • “use for safe money” • “option for LTC planning” • “initial premium LTCI option” • “changing our financial plan to address the big picture” • “smarter way to self-insure” Presenting TLC

11. CLIENT PAYS BENEFITS BENEFITS PAID MONTHLY FOR 6 YEARS PLUS GAURANTEED DEATH BENEFITS $654,000 Total LTC Benefit $100,000 Premium Maximum Monthly Benefit=Total LTC Benefit/ 72 Months + Death Benefits would be any of the Specified Amount NOT used for LTC YEAR 1 $9,083 per month --------- YEAR 2 $9,083 per month Or if Specified Amount is exhausted, $436,000 Extension of Benefits YEAR 3 $9,083 per month $21,800 Residual Death Benefits YEAR 4 $9,083 per month YEAR 5 $9,083 per month YEAR 6 $9,083 per month Give it some leverage • Recall: $100,000 set aside as “safe money,” even with growth has little chance without some help? Accelerated Benefit Rider $218,000 Specified Amount Extension Of Benefit Rider If LTC benefits are not needed, the Specified Amount (Accelerated Benefit) would be paid as a death benefit If monthly benefits are less than the maximum, the benefit payout period could last longer than 72 months Hypothetical example assumes 4.8% crediting rate Presenting TLC

12. Give it some leverage …(continued) • Leverage • $100K Initial premium • Safe • Retain control • Guaranteed • 15-year ROP • OPTIONAL RETURN OF PREMIUM RIDER • 15 years no surrender charge on principal amount • This means the decision to purchase can be reversed • $218K Death Benefit • Leveraged 2+ times • Income tax free DB • Option for LTC • CLAIMS • We are going to pay a claim one way or another* • $648K Total Protection • Leveraged 6+ times • Flexible • Tax Free LTC Benefits • LEVERAGE • More protection for the same dollars you had already allocated to the problem *See GMBR explanation Presenting TLC

13. Give it some leverage …(continued) • Guaranteed Minimum Benefit Rider • (More Protection for your Client) • Guarantees coverage: • If interest rate decreases to the 3.5% guaranteed minimum or cost of insurance charges increase for life or long term care • And policy values will not be enough to maintain the policy to the insured’s age 100 at current rates • If both occur, we will guarantee that the policy will not lapse if benefits are reduced to the Guaranteed Minimum Benefit shown in the policy • Further premiums are not required, as long as benefits are reduced and no loans or withdrawals have been or are taken. • If the policy owner decides to not reduce benefits: • Additional premiums may be paid any time to keep benefits at current levels and to keep ROP and GMBR benefits • If additional premiums are not paid, the policy may lapse and the ROP and GMBR will terminate. Presenting TLC

14. Give it some leverage …(continued) • LTC Benefits Mirror Privileged Choice® • Home Care • Home aides • Personal care services • Homemaker and chore services • Adult day care • Hospice care • Skilled care from nurses and physical, occupational, respiratory and speech therapists • Facility Care • Nursing homes • Assisted living facilities • Reserves bed for up to 60 days per year during temporary absences • Additional Benefits • Monthly benefits • Privileged Care® Coordination • Alternative plan of care • Caregiver training • Supportive equipment • International coverage • 90-day elimination period with zero-day home care Presenting TLC

15. Details • Issue Ages • 18 - 79 • Age nearest birthday • Back dating the policy effective date is not permitted. • Maturity Age • None – policy, benefits and all riders continue after the insured reaches age 100 • Interest continues to be credited to policy values • Monthly deductions cease • Interest Rate • Guaranteed to never be less than 3.5% • Underwriting both Life and LTC • Couples Discount Available (even when spouse buys traditional LTCI) • Preferred/Standard No Nicotine Use – PNN/SNN • Standard Nicotine Use – SNU • Substandard • Life • 16 tables temporary and permanent flat extras • May limit benefit periods Presenting TLC

16. Underwriting Requirements Presenting TLC

17. TLC Express Quote • Go to https://www.winflexweb.com/tlc/ Presenting TLC

18. TLC ExpressAppSM • Complete, sign and date the following forms • TLC ExpressApp Ticket • Suitability Form • Illustration • HIPAA Authorization • If applicable: • Replacement Forms • 1035 Exchange Form • Choose • Voice Signature • or • Wet Signature Give the clients brochure 43662: What To Expect from the ExpressApp Process brochure Presenting TLC

19. Important Information • Total Living Coverage universal life insurance with long term care benefits is subject to the terms, issue limitations and conditions of Policy Form No. ULPLTCIPGLI (11/05) et al. and Rider Form Nos. ULRABRIPGLI (11/05) et al., ULREBRIPGLI (11/05) et al., ULRROPIPGLI (11/05) et al. and ULRGMBRIPGLI (11/05) et al. Policy, benefits and riders may not all be available in all states. Terms and conditions may vary by state. • Genworth Life is rated A+ (Superior) by A.M. Best, the second highest of sixteen ratings. This rating represents the opinion of A.M. Best of the insurer's financial strength and ability to meet ongoing obligations to policyholders and is not an implied warranty of the company's ability to meet its financial obligations. Rating is current as of 12/31/07. • Genworth Life is a member of the Insurance Marketplace Standards Association (IMSA). Membership promotes ethical standards in the sale and service of individually-sold life insurance, annuity and long term care insurance products. • All guarantees are based on the claims-paying ability of the issuing insurance company. • Insurance and annuity products: • Are not deposits • Are not insured by the FDIC or any other federal government agency • Are not guaranteed by a bank or its affiliates • May decrease in value Presenting TLC

20. Important Information Covered long term care expenses may be paid for a longer or shorter period than the ABR and EBR periods. Expenses may be paid for a longer period if the actual expenses paid are less than the Maximum Monthly LTC Benefit. Expenses may be paid for a shorter period because some services – supportive equipment and caregiver training – do not count toward the Maximum Monthly LTC Benefit Payments for covered care are not considered taxable income as provided in subsection 104(a)(3) of the Internal Revenue Code. Generally, life insurance death benefits are payable to the beneficiary income tax free. In addition, the law provides that cash values that accumulate within a life insurance policy grow on an income tax-deferred basis and are not subject to income tax until withdrawn from the policy or if the policy terminates. This policy may be considered a modified endowment contract. This means that, if the client takes a policy loan or partial withdrawal from the policy value, they may have to pay income tax if the amount of the policy value is higher than the amount the client paid for the policy. Monthly charges to pay for the long term care riders of this policy are considered by tax law to be partial withdrawals and are also income taxable. If your client is under the age of 59 1/2, he or she may be subject to an additional 10% tax, unless an allowable exception applies. But the cost of the long term care features that are withdrawn from the policy values may qualify for an income tax deduction under certain limited circumstances and up to certain limits. Your client may want to speak with a tax advisor to discuss how this impacts individual situations. However, any benefits paid for qualified long term care services are received income tax free. Presenting TLC

21. Important Information (continued) The company has provided this information to help producers understand the ideas discussed. Any examples are hypothetical and are used only to help producers understand the concepts of the policy. What the company says about legal or tax matters is its understanding of current law, but the company is not offering legal or tax advice. Tax laws and IRS administrative positions may change. This material is not intended to be used by any taxpayer to avoid any IRS penalty. Your clients should consult independent tax and legal professionals for advice based on their particular circumstances. Presenting TLC

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