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PRODUCT TRAINING For agent use only. Not for the general public Living Care ® Annuity AFN41121.

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Presentation on theme: "PRODUCT TRAINING For agent use only. Not for the general public Living Care ® Annuity AFN41121."— Presentation transcript:

1 PRODUCT TRAINING For agent use only. Not for the general public Living Care ® Annuity AFN41121

2 For agent use only. 2 Introduction / Agenda Background – A New Retirement Landscape Living Care ® Annuity Overview Target Market and Marketing Materials Sales Support –

3 For agent use only. 3 Background A New Retirement Landscape

4 For agent use only. 4 Background A Challenge to Quality of Life Two Common Retirement Risks Longevity Risk Long-Term Care Risk

5 For agent use only. 5 Background Long-Term Care Risk Self-Funding of Long-Term Care

6 For agent use only. 6 Innovation is needed Innovation is needed for: Ensuring retirement income that lasts many years in retirement; and Protecting retirement assets from losses.

7 For agent use only. 7 Innovation is here! Innovation from an A+ rated carrier United of Omaha – A Mutual of Omaha Company Living Care ® Annuity

8 For agent use only. 8 Living Care ® Annuity Overview

9 For agent use only. 9 Living Care ® Annuity Overview ®

10 For agent use only. 10 Living Care ® Annuity Overview If they need long-term care, they can: Receive up to three times the annuity value in long-term care benefits Help preserve their overall retirement plan assets by using this portion of their money to pay for up to six years of long-term care Help protect a spouse and/or family members from the emotional, physical, and financial toll of caregiving Help ensure their choice of care options

11 For agent use only. 11 Living Care ® Annuity Overview If they dont need long-term care, they can: Earn a guaranteed rate of interest on their savings Take advantage of tax-deferred growth Access their principal through partial withdrawals or lifetime income options Provide a death benefit to their beneficiaries that are equal to the annuity value Avoid probate of these funds

12 For agent use only. 12 Living Care ® Annuity – Henrys Story Henry – Age 65 Wants to protect his wife and son from informal caregiving Wants to protect his overall retirement plan assets Wants to leave an inheritance for his son

13 For agent use only. 13 If Henry needs long-term care… Henry, Age 65, $100,000 Single Premium, Assumed Interest Rate of 3%

14 For agent use only. 14 If Henry needs long-term care… Covered long-term care benefits include: Nursing Home Care Home Health Care Assisted Living Facility Care Alternative Care Services Adult Day Care Care Coordinator Service Caregiver Training Homemaker Services Personal Care Respite Care Care Planning Hospice Care

15 For agent use only. 15 If Henry doesnt need long-term care…

16 For agent use only. 16 Living Care ® Annuity Overview Specifications Issue Ages Premiums Non-qualified dollars only $50,000 minimum $300,000 maximum Withdrawal Charges 10 years

17 For agent use only. 17 Living Care ® Annuity Overview Specifications (cont.) Free Withdrawals 10% after Year 1 Guaranteed Interest Rate 3.00% Waiver of Withdrawal Charges Death, Chronic, and/or Terminal Illness Annuitization After Year 2 – Full value for lifetime annuity options

18 For agent use only. 18 Long-Term Care Rider Specs Eligibility for LTC Benefits: Annuitant is chronically ill Inability to perform 2 out 6 Activities of Daily Living (ADL) Or Cognitive Impairment (Alzheimers) A least two years from issue date following 90-day elimination period Cost of rider is waived when the claim is approved

19 For agent use only. 19 LTC Daily Benefit Example Annuity Value: $100,000 Max. Daily Benefit:$100,000 / 730 days = $ per day based on daily expenses incurred Max. Lifetime Benefit:$100,000 x 3 = $300,000 The long-term care daily benefit is deducted from the annuity until $1.00 of annuity value is left Then, the daily benefits are provided by United of Omaha until the client has exhausted the Maximum Lifetime Benefit. This provides a minimum of 6 years of benefits assuming no excess withdrawals.

20 For agent use only. 20 Living Care ® Annuity Overview Inflation Protection Endorsement How it works Hypothetical Initial Premium: $100,000 Hypothetical Net Interest: 3.25%

21 For agent use only. 21 Living Care ® Annuity Overview Nonforfeiture Benefit – Shortened Benefit Period Endorsement Under the Shortened Benefit Period Allowance, United of Omaha will pay: 100% of the sum of all Monthly Deductions, excluding any waived Monthly Deductions, or; 30 times the Maximum Daily Benefit in effect at the time of termination.

22 For agent use only. 22 Taxation Interest income earned in the annuity accumulates on a tax-deferred basis. A 10% federal tax penalty may apply for withdrawals taken prior to age 59 ½ unless an exception applies. Distributions of income from the annuity, at death or otherwise, are taxable as ordinary income. Withdrawals taken in tax years beginning prior to January 1, 2010 that pay qualified long-term care benefits and charges may be taxable as ordinary income, and if the contract owner is not at least 59 ½, may be subject to the 10% tax. Due to the Pension Protection Act of 2006 January 1, 2010 the Living Care ® Long-Term Care Rider is intended to be tax-qualified long-term care insurance. At that time rider charges and benefits will no longer be taxed due to the provisions of The Pension Protection Act of 2006.

23 For agent use only. 23 Living Care ® Annuity Overview 12 Pre-qualifying Health Questions Phone Interview Check MIB and Medication Database Goal is to make underwriting decision based on this information If applicant has been previously declined for LTC coverage, they will be unable to purchase this annuity Underwriting and New Business Processing

24 For agent use only. 24 Living Care ® Annuity Overview Scrubbing the application: Current forms required and completed correctly Signatures where needed Underwriting prequalifications Agent appointment requirements met Underwriting and New Business Processing

25 For agent use only. 25 Suitability Items that carrier reviews: Assets above $300,000 total and under $2.5 MM total Net worth Amount of investment Investment time frame Goals of investment Surrender charges/bonuses (replacing) Living Care ® Annuity Overview

26 For agent use only. 26 Target Market Who can benefit from Living Care ® Annuity ? Individuals ages who have total assets above $300,000 and most likely under $2.5 million Target buyers ages Individuals who do not currently have existing long-term care coverage Individuals seeking a better economic value than paying stand-alone long-term care premiums Target Market and Marketing Materials

27 For agent use only. 27 Target Market and Marketing Materials Target Market Who can benefit from Living Care ® Annuity ? (cont.) Individuals with retirement needs including asset maximization, longevity risk management, and income management with guarantees Individuals concerned about the risk of long-term care expenses and their impact on their overall retirement plans Individuals concerned about burdening their family members with the emotional and financial effects of informal caregiving Individuals wanting to set limits, or boundaries, on the impact long-term care risks can have on their overall retirement assets, family members, and long-term care choices

28 For agent use only. 28 Target Market and Marketing Materials Marketing Materials Marketing materials may not be approved and/or available in all states.

29 29

30 For agent use only. 30

31 For agent use only. 31

32 For agent use only. 32 Living Care ® Annuity Provides You: A more efficient approach to limiting, or setting boundaries on, longevity and long-term care risks The ability to better position a portion of your clients retirement assets Simple hybrid annuity concept that uses a 3x factor Quick and easy underwriting process Innovation from an A+ carrier The foundation of a strong Mutual of Omaha brand Excellent Compensation Superior Sales Support from an Industry Leader Begin Today

33 For agent use only. 33 Sales Support Toll-free hotline number: Assistance with: Product knowledge and solutions Illustrations Underwriting pre-qualifications/consultations Business processing Other LTC coverage alternatives

34 For agent use only. 34 Disclaimer Annuities are underwritten by United of Omaha Life Insurance Company, Mutual of Omaha Plaza, Omaha, NE Not available in all states. Coverage may vary by state. Exclusions, limitations and reductions may apply. For agent use only. Not for use with the general public.

35 For agent use only. Not for the general public. Thank You!

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