Prudential National LTC Network Producer Teleconference

1. Prudential National LTC NetworkProducer Teleconference May 18, 2007 Roy Gosselin, CLU, ChFC National Sales Director IFSA133511 Ed. 5/2007

2. Agenda • Sales Ideas: • Using Prudential’s Unique LTC Plan Features • Multi-Life Program • Operations and Administrative Support • Incentive Program • Monthly LTC Sales Calls

3. The ‘Value Behind the Illustration’ • Built-in Benefits: Part of Every LTC3SM Policy • Restoration of Benefits • Calendar Day Elimination Period • Cash Alternative Benefit • Home Support Services Benefit • Alternate Plan of Care Benefit • International Coverage Benefit • Private Care Consultant

4. LTCi – Making the Plan Design Simple • MUST keep it simple! • Confusion will lead to indecision • 6 key pieces of any LTCi contract • Cash or Reimbursement Policy • Lifetime Maximum • Facility Daily Benefit • Home Care Benefit % • Elimination Period • Inflation Protection

5. Sales Idea- How Much LTCi Does Your Client REALLY Need? • Common Reason prospects do not buy LTCI: “It’s too Expensive.” • Start with a few simple assumptions: • Everyone has some Income coming in to them, whether they are actively working or retired (401K, Soc. Sec., Pensions, Investments). • There are two types of LTC: Confined Care and Non-Confined Care (i.e. Home & Community-Based Care). • Confined Care Costs include housing, food and utilities (“Regular Bills”) in addition to Care Costs. • HHC Costs are for care only. “Regular Bills” still must be paid, in addition to Care Costs.

6. Client may need MORE LTCI Benefits at Home than when Confined • Example: Assume Average Cost of Nursing Home in Area is $210 per Day.* • Also Assume Client has $50K/Yr. ( $137/Day) income after taxes • Assume Client can self-fund $70/Day from income in NH Costs • But Client will still need full $210/Day in benefits if receiving Home Care (Income goes to pay “Regular Bills”). • Most companies only offer 100% Home Care. • *Information on this slide is for illustrative purposes only.

7. Pru’s 150% Home Care w/Lower Nursing Home Facility Daily Benefit (FDB) • Most Companies - $210/Day w/100% Home Care • Policy with $210/Day and 100% Home Care provides up to $210 for Confined Care and $210 for Home Care • With Prudential LTC3 you can also choose $210/Day w/100% Home Care; OR • LOWER THE PREMIUM by selecting $140/Day w/150% Home Care • LTC3 Policy $140/Day and 150% HHC provides up to $140 for Confined Care and $210 for Home Care

8. EXAMPLE*: LTC3 w/5% Compound inflation, 90 Day EP, 5 Yr. BP, Std Rates, 30% Spouse Discount *For illustrative purposes only

9. Advantages & Disadvantages • ADVANTAGES • Pru is Only Major LTC Carrier offering 150% Home Care* • Clients more willing to discuss Home Care than Nursing Home Care • Considers LTC plan design from an integrated Retirement Planning perspective • Can save Client big premium $$ over time (In example, age 55, Husband & Wife save $44,400 over 30 years!) • Pru’s Cash Alternative Benefit is based on 40% of Home Care Daily Benefit *Vital LTC (2007) ebixlife.com

10. Advantages & Disadvantages • DISADVANTAGES • Total Lifetime Benefit is based on Benefit Period and Facility Daily Benefit. • $210/Day w/5 Yr. BP = $383,250 (see example) • $140/Day w/5 Yr. BP = $255,500 (see example) • Pool could run out faster using 150% Home Care • In Spousal situation where one spouse is receiving Confined Care and one is still living at home, there will still be some “Regular Bills” to pay (although probably at reduced levels). • So, entire Daily Income should not be considered available to pay for nursing home care (used 50% of Daily Income in the example).

11. Pru’s Innovative Cash Alternative Benefit • What’s better - Cash or Reimbursement LTCi? • CASH – Can pay toward any Qualified LTC expense. Includes Family/Informal Care and types of care that haven’t been invented yet. • CASH - Is simple and ultra-flexible. No bills to submit. No worries about policy definitions and “red tape”. • REIMBURSEMENT – Is less expensive. CASH LTCi can be 40% to 110% more expensive. REIMBURSEMENT – Covers most current LTC services and facilities. Which one will your 58 year old Client need 30 years from now?

12. Pru’s Innovative Cash Alternative Benefit • In addition to Prudential, few other companies offer Cash LTCi (MetLife, UNUM and MedAmerica) • And those clients must select Cash or Reimbursement models AT TIME OF APPLICATION! • Can you predict what methods will be used to deliver long-term care 30, 40, or 50 years from today? • Well neither can your clients! • Pru’s Cash Alternative Benefit is the only feature in the industry that allows clients to choose between Cash or Reimbursement AT CLAIM TIME!

13. Pru’s Innovative Cash Alternative Benefit • Automatically included in LTC3 (NOT a premium-bearing option). • At time of Claim, client selects Cash or Reimbursement Benefit. Can change monthly to accommodate client’s needs. • No receipts or bills are necessary. Only a monthly claim form needs to be completed. • CAB is 40% of Home Care Daily Benefit. Paid to the insured in full, regardless of expenses. • Can pay for: Care outside US; Informal/Family Care; Future yet-to-be-developed care services; Not limited to LTC services.

14. Sales Tip… Get even more out of the Cash Alternative Benefit by utilizing the 150%* Home Care Daily Benefit option. Facility Daily Benefit = $200 With 150% Home Care = $300 x 30 days in a month = $9,000 Monthly cash amount when electingCash Alternative Benefit (40%) = $3,600 *The 150% Home Care Daily Benefit Option can only be selected with a Facility Daily Benefit of $350 or less.

15. LTCi Elimination Periods • 3 Basic Types/Definitions of EP: • Service Day – Most Restrictive. Only days in which covered services are received count. • 7-to1 – Less Restrictive. But complicated to explain. For every week in which 1 Day of covered services are received all 7 days count. • Calendar Day – Least Restrictive; Easiest to Explain. No Surprises at Claim time. Does not require covered services to be received.

16. Prudential LTC3: Calendar Day Elimination Period • Basic Feature in Pru LTC3 policy (Not an Option) • Begins from date chronic illness or disability is certified by licensed health care practitioner • Services not required to “trigger” and/or satisfy elimination period • Can receive care from family member during EP (reduces out-of-pocket cost) • Elimination period days are: • Cumulative • Need to be met only once per lifetime

17. Prudential LTC3 Restoration of Benefits • Companies are now charging significantly higher premiums for Unlimited Benefit Period policies • More LTC policies being sold w/ shorter-than –Unlimited BP’s • Clients concerned about using up benefits with an early claim (accident, stroke, etc.) • Solution= Pru LTC3’s Restoration of Benefits basic policy feature

18. Prudential LTC3 Restoration of Benefits • Included in Policy – Not an option • If a previously eligible client is assessed and found to no longer have chronic illness or disability, and status is maintained for 6 consecutive months, restoration of benefits can restore to full lifetime maximum • Consideration • Can be 1 ADL deficient and still restore benefits • Benefits can only be restored once in a lifetime

19. Prudential LTC Multi-Life Programs: Employer Sponsored ProgramAffiliation Program

20. Employer Sponsored Program (ESP) • Employer group size requirement • 3 - 9 employees (100% participation of class, i.e., title, income, tenure) • 10 to 500 lives (must work minimum of 30+ hours per week with W2) • Minimum participation requirement • The greater of 5% of the group or 10 lives (including spouses) • Discounts: LTC3 • 10% discount to employees ages 18 - 79 • 10% spouse / partner • 5% eligible family members* • No cap on discounts • 15% Preferred health rate class with full underwriting available to spouses & extended family • Modified underwriting for employees ages 18 - 70* • Customized plan designs available • Buy-ups available * Parents, in-laws, aunts, uncles, siblings, grandparents, grandparents in-law, and children ages 18 and older.

21. ESP Modified Underwriting Questions • Do you use: walker, oxygen, respirator, or kidney dialysis? • Within past 12 months have you: used adult day care, needed home health care, or been medically advised to enter or been confined to nursing home, assisted living facility, or other LTC facility? • Do you currently need assistance or supervision by another person in performing any of the following activities: bathing, eating, toileting, bowel or bladder control, moving in and out of bed or chair, dressing, or taking your medication? • Have you had, do you currently have, or have you ever been diagnosed as having any of the following medical conditions: • Organic Brain Syndrome, Dementia, Senility, Confusion, Memory Loss, or Alzheimer’s Disease? • Metastatic Cancer (cancer that has spread from original site or location?) • Multiple Sclerosis (MS), Muscular Dystrophy, Multiple Transient Ischemic Attacks (TIA), Parkinson’s Disease, Amyotrophic Lateral Sclerosis, Stroke, or Cerebrovascular Accident (CVA)?

22. ESP Plan Design • Options with modified underwriting • $50 - $300 Facility: daily, monthly, or cash benefit • 50%, 75% or 100% home care • Benefit periods: 2, 3, 4, 5 or 6 years • Elimination period: 60, 90, 120, 180, or 365 days • All Inflation options available • Accelerated premium options available • 10 pay • Paid-up at 65 • Spouses & family members not eligible for modified underwriting

23. Optional Riders • With modified underwriting • Flexible cash benefit rider • Cash benefit rider • Return of premium upon death benefit rider • Shared Care Benefit rider • Survivor waiver of premiums benefit rider • Available as buy-up with full underwriting • 150% home care daily benefit • 10 year & Unlimited Benefit Period options • Joint waiver of premiums benefit

24. Prudential Affiliation / Association Program Highlights • Qualification • Associations members and formed for common purpose* • Businesses with may also qualify for discount** • Participation requirement • Expectation of 5 lives within a 6-month period • Program Features • 5% discount for members & extended family • Full underwriting • Unlimited benefits and riders available *Other than to buy insurance. Other restrictions may apply. **May not be used in combination with ESP.

25. Producer Service Center Single Point of Contact for Your General Agency • Pre-Sales Assistance • Employer Sponsored Program – Quotes and Approval • Product Quotes • Competitive Information • Marketing Material Questions • Pending Applications • Pro-active Case Review • Troubleshooting • Welcome Call and Decline Calls • Post Sales Assistance • Policy Change • Reinstatement Process

26. New Business FAQ • Does Prudential save age? • Prudential will save age 30 days from birth date. • What application should I use? • Always use state application where client resides. • What are state licensing guidelines when taking an application? • Agent must be licensed in state where client resides and in state where app is taken (i.e. if client lives in NY, a NY application must be used and agent needs to be licensed in NY, as well as resident state if different). • Does premium need to be submitted with application? • One-month premium is required with initial application for Annual, Semi Annual & Quarterly mode. Two months premium is required with EFT Mode.* • How does Prudential handle Suitability States? • States requiring suitability will have Personal Worksheet Form in application package. Client should provide information regarding financials, otherwise a letter will be sent to client resulting in a delay in application processing. *CA can only submit 1 months premium regardless of mode.

27. Application: Common Mistakes • Missing Information • HIPAA Authorization missing or not completed properly or most updated version not submitted • Suitability Form (Long Term Care Personal Worksheet) missing or not completed properly • Agent’s Statement missing or not completed • Other items • Agent license/appointment has terminated or agent is not licensed in state where the applicant resides • Agent requests commission split but percentage not clearly documented • Incorrect/outdated application • Writing is illegible • Medical questions not answered • LTC3 – Applicant Agreement Page, signature must be included even if case is not on EFT

28. ‘Spring Into Summer’ Incentive Program Contest Time Frame: 5/1/07 – 7/31/07 Open to all National LTC Network Associates Gift cards honored by nearly 400 national merchants

29. June 20 July 18 August 22 September 19 October 24 November 14 December 12 Tax Advantages of Long Term Care Paying for LTC: Medicaid / Medicare & LTC3 Deficit Reduction Act (DRA) Selling LTC Using A Unique Sales Track Why Sell Prudential LTC? LTC Benefit Access and Claims LTC Policy Design Prudential LTC Monthly Teleconference Calls 12pm – 1pm ET Toll-free Dial In: 800-398-9379(Call Reference Name: Prudential LTC )

30. Disclaimer LTC3SM long-term care insurance policy is issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102 (800 732-0416). This coverage contains benefits, exclusions, limitations, eligibility requirements and specific terms and provisions under which the insurance coverage may be continued in force or discontinued. Prudential is authorized to conduct business in all U.S. states and the District of Columbia. Product availability varies by state. Coverage is issued under policy number GRP 113096 (In North Carolina coverage is issued under GRP 113290, In Virginia coverage is issued under GRP 113327), however policy numbers may vary by state. Prudential Financial and the Rock logo are registered service marks of The Prudential Insurance Company of America.