The best just got better!

1. Privileged Choiceand Classic SelectProducer Product Training sm sm The best just got better!

2. Training Disclaimer The following slides constitute a complete legal and compliance approved training program. Removal of slides to shorten the existing training program is acceptable. However, no changes to any slides or use of any slides individually is permitted without resubmission to GE legal and compliance review. The following training program is subject to variation by state and does not include all state variations. For state specifications, please refer to the brochure. Strict adherence to this policy is required.

3. Training Overview • Product Overview 30min • High Level Positioning 30min • Features and Benefits 2 hrs • Plan Designs 2 hrs • Submitting an Application 45min • Underwriting 45min • Claims 45min Total Training Time 7hrs 15min

4. PRODUCT OVERVIEW

5. Product Goals Consumers -Privileged Choice- -Classic Select- Distribution Channel GE Financial A Portfolio Built on Shared Goals and Long-Term Viability! The best just got better!

6. To bring “state of the art” answers for the increasing Baby Boomer market To help our producers remain competitive To address the ever changing regulatory and care delivery environment Market Economics New Product Why Bring New Products to Market? Long Term Price Stability & Product Competitiveness

7. An Ocean of Opportunity Size of Opportunity Today Being Siphoned Through An Eye Dropper 61,000,000 People Over 50 Years Old* x 60% Eligible for LTC** x $1758 Average Annual Premium $64,342,800,000 A Year Market $64,342,800,000 Market x 90% Haven’t Bought*** $58 Billion Untouched Tidal Wave of 76 Million Baby Boomers Coming Demographic Age Wave • People Are Living Longer • 26% of U.S. Population Over Age 65 • Baby Boomers Are Aging • Every 7 Seconds Another Turns 50 • And, 60% of Them LTC Eligible $13 Million LTC Premium Potential Per Day!! * 2000 Census Bureau ** 1998 Life Plan Inc. study *** February 12, 2001 ACLI Statistics

8. Opportunity …and the market continues to GROW! In 2000, the baby boomer was 36-54 years old. 105 Million More Potential Buyers in The Pipeline!

9. Flexibility (a la carte options) and More Choices! Customization to meet Price and Value Needs History of Rate Stability Improved Contract Language Prevailing expense limitations removed More liberal eating definition (ADL) More robust Home Health Care provision Liberalized Assisted Living Facility definition The Consumer What’s Good for the Consumer? The best just got better!

10. The Producer What’s Good for Distribution? • Tools to Help You Sell • Ease of Doing Business • Customized to client needs • Makes competitive comparisons easier…Apples to Apples • Meets Competitors Head On…Raises the bar More Choices = More Sales

11. HIGH LEVEL POSITIONING

12. Industry Sales 2002: $1 Billion in Industry Sales – 5% increase Top Individual LTC Carriers 02/01 Growth 2002 Annualized Premium In-Force (MM) 2002 New Premium Sales (MM) Company 1) GE 2) CONSECO* 3) Hancock** 4) C N A 5) Aegon*** 6) Penn Treaty 7) UNUM 8) IDS 9) Thrivent**** 10) Allianz $ 1,466.0 874.1 711.5 487.2 430.7 345.2 263.2 249.1 205.3 155.9 $ 248.4 89.3 131.1 75.9 63.2 4.4 64.4 25.4 28.1 41.4 1% (9)% 31% 21% 1% (91)% (18)% (11)% (7)% (1)% SOURCE: LIMRA International 2002 and 2003 LTC Sales *Includes Bankers Life & Casualty, Conseco Health Insurance Co., Conseco Senior Health Insurance Co., and Pioneer Life Insurance Co. **Includes Fortis Companies *** Includes Life Investors Insurance. Co. of America, Monumental Life Insurance Co., AUSA Life Insurance. Co., Inc., Peoples Benefit Life Insurance Co. Transamerica Life Insurance Co., Transamerica Occidental Life Insurance Co and Transamerica Occidental of New York. **** Formerly Aid Association for Lutherans & Lutheran Brotherhood

13. FEATURES & BENEFITS

14. Introducing….Two New Products!! Flagship Product! • Privileged Choice • Comprehensive Coverage • Inclusive Plan • Classic Select • Comprehensive Coverage • Modular Design Two Products…the best just got better!

15. Benefit Eligibility One qualifies for covered benefits when… • Help is needed with at least 2 of the 6 Activities of Daily Living and expected to be needed for at least 90 days • Bathing • Dressing • Continence • Toileting • Transferring • Eating (New less restrictive definition!) - OR- • Severe cognitive impairment (e.g. Alzheimer’s) New less restrictive eating ADL definition!

16. Monthly/ Daily Maximum Choice Classic Select Privileged Choice Daily Maximum Monthly Maximum Daily Maximum • Ages 18-79: $1.500 to $12,000 • Ages 80 - 84: $1,500 to $6,000 (2, 3, & 4 year benefit plans only) • Increments of $100 • Ages 18 - 79: $50 to $400 • Ages 80 - 84: $50 to $200 • Increments of $5 • Ages 18 - 79: $30 - $250 daily • Ages 80 - 84: $30 - $150 • Increments of $10 Reduced Home Care Option • Can choose to reimburse up to 50% of Daily Maximum • Not available with all optional riders Added Cost Option • Monthly Maximum

17. Benefit Multiplier- Individual Plan Choice Classic Select Privileged Choice Individual Plan Months Individual Plan Days Individual Plan Days • 2190 (6yrs)* • 2920 (8yrs)* • 3650 (10yrs)* • Unlimited* • 24 (2yrs) • 36 (3yrs) • 48 (4yrs) • 60 (5yrs)* • 72 (6yrs)* • 96 (8yrs)* • 120 (10yrs)* • Unlimited* • 730 (2yrs) • 1095 (3yrs) • 1460 (4yrs) • 2190 (6yrs)* • Unlimited* • 730 (2yrs) • 1095 (3yrs) • 1460 (4yrs) • 1825 (5yrs)* *Not available for individuals ages 80 to 84.

18. Benefit Multiplier- Shared Plan Choice Classic Select Privileged Choice Shared Plan Days* Shared Plan Months* Shared Plan Days* • 1095 (3yrs) • 1460 (4yrs)* • 2190 (6yrs) • 2920 (8yrs) • 4380 (12yrs) • 48 (4yrs) • 72 (6yrs) • 96 (8yrs) • 120 (10yrs) • 144 (12yrs) • 192 (16yrs) • 240 (20yrs) • 1460 (4yrs) • 2190 (6yrs) • 2920 (8yrs) • 3650 (10yrs) • 4380 (12yrs) • 5840 (16yrs) • 7300 (20yrs) *Not available for individuals ages 80 to 84.

19. Lifetime Maximum Benefit (Personal Benefit Account) How to calculate… Monthly/Daily Purchase Maximum Benefit Multiplier Initial Lifetime Maximum (Personal Benefit Account) x = Monthly vs. Daily (Lifetime Maximum) Privileged Choice Classic Select Monthly Purchase Maximum = $1500 Daily Purchase Maximum = $50 X X Benefit Multiplier = 72 (6yrs) Benefit Multiplier = 2190 (6yrs) Lifetime Maximum = $108,000 Lifetime Maximum = $109,500

20. June Classic Select Without Optional Monthly Maximum $50 Daily Maximum Without Monthly Maximum Home Care • Total cost incurred for covered services in June = $1,325 • Eligible reimbursement for all covered costs = $800

21. June Classic Select With Optional Monthly Maximum $50 Daily Maximum With Monthly Maximum ($1,500) Home Care • Total cost incurred for covered services in June = $1,325 • Eligible reimbursement for all covered costs = $1,325

22. Elimination Period Choice Classic Select Privileged Choice Home and Community Care • 0 Days Facility Care • 50-days 100-days • When you use a Privileged Care Coordinator, the Elimination Period is reduced 1 day for every day Home Community Care benefits are received Home and Community Care • 0 Days Facility Care • 30-days 90-days 180-days • When you use a Privileged Care Coordinator, the Elimination Period is reduced 1 day for every day Home Community Care benefits are received Home and Community Care • 30-days 90-days 180-days Facility Care • 30-days 90-days 180-days • When you use a Privileged Care Coordinator and purchase the Home Care Elimination Period Optional Rider, the Elimination Period is reduced 1 day for every day Home Community Care benefits are received

23. Inflation Protection Choice Privileged Choice Classic Select Benefit Increase Options • Compound • Equal • None No Claims Offset Benefit Increase Options • Compound • Equal • None No Claims Offset Benefit Increase Options • Compound • Equal • None Claims Offset

24. Compound Inflation Protection 49.9% 30.0% 18.2% 15.5% 12.8% 10.2% 7.6%

25. Restoration of Benefits How does it work? • Restoration of Benefits restores the depleted portion of the personal benefit account if, after benefits are paid, the policyholder is not benefit eligible for 180 consecutive days • Example – Individual Policy • Original policy amount = $146,000 • Reduced by claims paid ($50,000) to $96,000 • Restored after 180 days without benefit eligibility- $146,000

26. Available Discounts Choice Classic Select Privileged Choice Couples Discount Couples Discount Couples Discount • 25% Discount • 40% Discount • 25% Discount • 25% Discount • 40% Discount (if 1 policy issued) (if 1 policy issued) (if both policies issued ) (if both policies issued) Preferred Health Discount Preferred Health Discount Preferred Health Discount • 10% Discount • 10% Discount • 10% Discount Total Cumulative Discount Opportunity 50%

27. Preferred Health Discount How does it work? • Preferred Health Discount may be determined at the time of application • Determined by the first 10 questions on the application • For Shared Coverage plans each applicant is eligible for this discount

28. Couples Discount Couples Definition • Married or • “Committed” relationship consisting of all of the following conditions: • Two people living together for 3 yearsand • In a committed relationship as domestic partners or family members and • Share basic living expenses and • Not married to each other, or to anyone else or • Belong to the same generation of the same family

29. Required Couples Form NEWLY Required Version • Newly revised form required for “committed relationship” (non-marrieds) • 3 year requirement • Form needs to be submitted with every application seeking applicable couples discounts • Form available for order and in pdf format on the web for download

30. Both Issued Separate Policies One Issued 10% 25% 35% 10% (each qualifying policy) 40% (each qualifying policy) 50% (each qualifying policy) Preferred Health Discount only Couples Discount only Both discounts *For shared coverage a 40% discount is built into the rates; With the 10% preferred health discount available to each qualifying applicant Couples Discount Couples Discount Calculations (both people in couple are eligible and apply*)

31. Survivorship Choice Privileged Choice Classic Select • Survivorship benefit NOT INCLUDED in the base plan • 10 year survivorship benefit INCLUDED in the base plan • First 10 years must be claim-free • 10 year survivorship benefit INCLUDED in the base plan • First 10 years must be claim-free Added Cost Options • 2 ADDED Cost Options • 10 year benefits without claims • 7 year survivorship benefit without regards to claims Added Cost Option • 7 year survivorship benefit without regards to claims

32. International Coverage Choice Privileged Choice Classic Select • INCLUDED in the base plan • NOT AVAILABLE • NOT AVAILABLE • Covers care and support services in a covered facility out-of- country (i.e. outside the United States and its territories) • Covers out-of-country nursing home care • Reimbursement up to 75% of policy’s monthly maximum • Payment limited to 48 months and Lifetime Maximum, but never greater than the policy’s Lifetime Maximum Benefit

33. Facility Benefits/Bed Reservation Choice Classic Select Privileged Choice • Reimburses expenses up to the Daily Maximum • For LTC facility • Reimburses expenses up to the Monthly Maximum • For the following: • Nursing Home • Assisted Care Facility • Reimburses expenses up to the Daily Maximum • For the following: • Nursing Home • Assisted Care Facility Added Cost Option • Monthly Maximum Bed Reservations Bed Reservations Bed Reservations • 50 days per year • 60 days per year • 30 days per year

34. Covered Facilities • Licensed Nursing Homes • Assisted Care Facilities • 24 hr a day assistance/supervision; and • 10 or more resident inpatients • AND • Licensed orCertified • OR • Other Facilities acting within all applicable laws that meet the following criteria: • Maintains records for all care and services provided • Duly licensed physician or nurse on duty or on call at all times • Employs an awake employee at all times • Has appropriate procedures for administering prescribed medications • Provides at a minimum assistance with bathing and dressing • Provides at a minimum 3 meals a day

35. Home Care Benefit Choice Classic Select Privileged Choice • Reimburses Prevailing Expenses up to the Monthly Maximum • Reimburses Actual Expenses up to the Monthly Maximum • Reimburses Actual Expenses up to the Daily Maximum • NO more prevailing expense language • Covered care and support services in the home not normally provided by someone who resides in the home • Skilled Services • Home Health Aides and Personal Care Attendants • Homemaker Services • Chore Services • Community Care • Hospice Care • Adult Day Care • Privileged Care Coordination Services can be used to coordinate these services

36. Home Care Benefit Breakdown Home Care • GE Home Care benefits includes coverage provided by unlicensed/uncertified aides • GE’s Homemaker/Chore Services DO NOT require the services of a trained aide or attendant GE Claims Breakdown • 85% Home Care Of this…. • Greater than 60% is care that could be provided by Non-Licensed, Non-Certified, Informal Caregivers who are NOT affiliated with a Home Care Agency

37. Caregiver Training Choice Classic Select Privileged Choice Caregiver Training Caregiver Training Caregiver Training • 5 x Daily Maximum • 20% of the Monthly Maximum • 5 x Daily Maximum • Training for an unpaid caregiver to care for you in your home • Training can be received while confined to a facility • Expected to enable you to go home

38. Respite Care Choice Classic Select Privileged Choice Respite Care Respite Care Respite Care • 21 days per year • 30 days per year • 21 days per year Respite Care Definition Short-term care provided to relieve the person who normally provides unpaid care in your home • Care available under the following Benefits: • Nursing Home • Assisted Care Facility • Home Care • Elimination Period does not apply

39. Equipment Benefit Choice Classic Select Privileged Choice Equipment Benefit Equipment Benefit Equipment Benefit • 50 x Daily maximum • 2 x Monthly maximum per lifetime • 50 x Daily maximum per lifetime • Benefit pays for expenses incurred for purchase or rental of supportive equipment • Equipment must assist in relieving direct physical need • The plan of care must indicate the equipment benefit will enable home stay of at least 90 days Examples • Pumps / devices for intravenous injection • Ramps for movement within the residence • Grab bars • Stair lifts for movement within the home • Expenses include installation fees, labor and related costs.

40. Shared Benefit Plan Choice Classic Select Privileged Choice • Joint Owners • Split available upon divorce or final separation • Joint Owners • Split available upon divorce or final separation • Single Owner • NO RIGHT to Sever • 25% of applicants apply for shared plans

41. PRICING AND PLAN DESIGNS

42. Determine Prices & Features Input To Pricing: Experience Competition Regulation Verify Assumptions to be certain they are reasonable Product Pricing Practice Disciplined Pricing Process The Theory • Experience Develops Slowly • Need To Price On An Overall Basis • Competition Plays A Role • Margins for Stability Built Into Pricing Assumptions The Reality Pricing Exercise Requires Strong Database, U/W And Claims Experience, Intuition, Discipline & A Sense Of Balance Between Competing Influences

43. Sample Product Plan Pricing Classic Select Privileged Choice % Premium Optional Rider Included in Privileged Choice: Classic Select + about17% 9% 0 Day Elimination Period 6% Monthly Maximum Survivorship 15% 7 years 9% 10 years (15%)* 50% Home Care • 0 day Elimination Period • Monthly Maximum • 10 Year Survivorship • No claims offset (Inflation protection) • International Coverage • Bed Reservation • Respite Care • Equipment • Care Giver Training *can not purchase 0 day EP and Monthly Max with this rider. If Customer Prefers 2 or more Riders, Consider the Cost of Privileged Choice

44. Suitability A Word About Suitability of Purchase All agents are REQUIRED to determine whether the purchase of long term care insurance is appropriate (suitable) for the applicant Factors in Making the Determination • The ability to pay for the proposed coverage • The applicant’s goals and needs for the product • The values, benefits and costs of the applicant’s existing insurance

45. Suitability Suitability Guidelines for Privileged Choice and Classic Select Purchase of either a Privileged Choice or Classic Select long term care insurance policy would NOT be suitable if: • The applicant has <$10k in annual income or • The applicant has <$20K in assets to protect • The applicant is eligible or about to be eligible for Medicaid • The applicant's only source of income is Social Security • The applicant otherwise has limited assets

46. Premium Comparisons 5-Year 90/100 day Elimination Period, $100 Daily Maximum Base Plan Apples-To-Apples Apples-to-Apples includes: GE Classic Select: Mo. Benefit, 0-day HC EP Allianz: Wk HC Prudential: Mo. Benefit Hancock: Mo. Benefit, 0-day HC EP, Cash Benefit MetLife: HC Plus Benefit LBL: Wk HC, Waiver of Premium for HC All Married Apples-to-Apples Rates Include Survivorship

47. Premium Comparisons Lifetime 90/100 day Elimination Period, $100 Daily Maximum Base Plan Apples-To-Apples Apples-to-Apples includes: GE Classic Select: Mo. Benefit, 0-day HC EP Allianz: Wk HC Prudential: Mo. Benefit Hancock: Mo. Benefit, 0-day HC EP, Cash Benefit MetLife: HC Plus Benefit LBL: Wk HC, Waiver of Premium for HC All Married Apples-to-Apples Rates Include Survivorship

48. Premium Comparisons 5-Year 90/100 day Elimination Period, $100 Daily Maximum Base Plan Apples-To-Apples Apples-to-Apples includes: GE Classic Select: Mo. Benefit, 0-day HC EP Allianz: Wk HC Prudential: Mo. Benefit Hancock: Mo. Benefit, 0-day HC EP, Cash Benefit MetLife: HC Plus Benefit LBL: Wk HC, Waiver of Premium for HC All Married Apples-to-Apples Rates Include Survivorship

49. Premium Comparisons Lifetime 90/100 day Elimination Period, $100 Daily Maximum Base Plan Apples-To-Apples Apples-to-Apples includes: GE Classic Select: Mo. Benefit, 0-day HC EP Allianz: Wk HC Prudential: Mo. Benefit Hancock: Mo. Benefit, 0-day HC EP, Cash Benefit MetLife: HC Plus Benefit LBL: Wk HC, Waiver of Premium for HC All Married Apples-to-Apples Rates Include Survivorship

50. SUBMITTING AN APPLICATION