1. For Financial Professionals only. Not for use with the general public. Long Term Care Alternatives Sample Case Study

2. For Financial Professionals only. Not for use with the general public. Mary just turned 65, and now more than ever, her daughter, Claire, is concerned about potential long term care costs that may arise. Mary has very little savings and no monthly income to spare for LTC insurance or to pay for any services she may need in the future. Claire realizes that he will be solely financially responsible for any LTC costs that his mother may need. At least 70% of people over 65 will need long-term care services at some point. 1 1 Medicare & You, National Medicare Handbook, Centers for Medicare and Medicaid Services, Revised 12/2011.

3. For Financial Professionals only. Not for use with the general public. Claire wants to put together a financial plan to help ease any potential LTC expenses that may arise for her mother. Claire has some concerns regarding Traditional LTC coverage: Coverage can be expensive Premiums are not guaranteed and may increase over time Despite the statistics, Mary may never have a need for LTC benefits

4. For Financial Professionals only. Not for use with the general public. Purchase a Guaranteed No Lapse Universal Life Contract with a LTC Rider Guaranteed No Lapse Death Benefit = $250,000 LTC Amount = $5,000 LTC Duration = 50 months Annual Premium = $5,788 Solution 1

5. For Financial Professionals only. Not for use with the general public. Nationwide YourLife® No-Lapse Guarantee UL Nationwide Life and Annuity Insurance Company Supplemental Report Prepared ForMrs. Valued Client / Female, 65, Preferred Non-tobacco Section 7702Guideline Premium Test Specified Amount$250,000 Death Benefit OptionsOption 1 (Level) Initial Planned Premium$5,788.00 Annual Long-Term Care Rider Amount$250,000 Coverage Applied For Total Specified Amount with Long-Term Care$250,000 Maximum Monthly Benefit$5,000

6. For Financial Professionals only. Not for use with the general public. Purchase a Single Premium MoneyGuard II Contract Single Premium = $100,000 Total Pool of LTC Benefit = $438,042 LTC Monthly Benefit Amount = $6,084 LTC Duration = 6 Years Death Benefit if LTC is Never Used = $146,014 Solution 2

7. For Financial Professionals only. Not for use with the general public. Lincoln National MoneyGuard II® Illustration Mary | Age 64, Female | Risk Class: Non-Tobacco | Basic 80% ROP, Single All Values and Benefits are Guaranteed Premium Received$100,000 Single premium assumed to be received on policy effective date. Total Long-Term Care Benefit Limit $438,042 The Total Long-Term Care Benefit Limit provides expense reimbursement for long-term care expenses including adult day care, home health care, personal care services, hospice services, nursing home care services, assisted living, and alternative care services. There is no deductible period and benefits are payable on the first day of care for eligible claims. The specific services covered are described in the contract. The Total Long Term Care Benefit Limit is composed of the following rider(s): Convalescent Care Benefits Rider Benefit Limit: $142,740 Extension of Benefits Rider Benefit Limit: $285,480 Maximum Monthly Long-Term Care Benefit Limit $6,084 The Maximum Monthly Long-Term Care Benefit Limit is the initial amount available for reimbursement of covered services in any one month. Maximum Monthly Long-Term Care Benefit Duration 6 Years Based on the rider(s) selected, the policy will provide reimbursement for long-term care expenses for a minimum of 6 years. Long-Term Care Benefit duration is based on the Convalescent Care Benefits Rider (CCBR) duration of 2 years, followed by the Extension of Benefits Rider (EOBR) duration of 4 years selected at issue. Specified Amount of Death Benefit $146,014 The Specified Amount of Death Benefit is set at issue and is used to determine the amount of guaranteed Death Benefit. Long-Term Care reimbursement will reduce the Specified Amount of Death Benefit on a dollar-for-dollar basis. Enhanced Surrender Value$80,000 The Enhanced Surrender Value Endorsement ensures the amount payable upon surrender will not be less than the sum of premiums paid (once all projected premiums are paid). Any ESVE benefit will be reduced for loan activity, withdrawals or claims and may have tax return implications. The ESVE will terminate if a loan or withdrawal is taken before all planned premiums are paid.

8. For Financial Professionals only. Not for use with the general public. FAQs Does the client have to submit receipts to receive their LTC Benefit? This depends on the type of contract. A Reimbursement Style contract (like MoneyGuard Reserve Plus) does require that the client submit receipts. A Indemnity Style contract (like Nationwide’s) does not require receipts. Is there an elimination period? Most Products do have a 90 day elimination or waiting period, MoneyGuard II has a Zero Day elimination or waiting period. Is there a residual death benefit? Not all Asset Based LTC or Hybrid product offer a residual death benefit; but both MoneyGuard II and Nationwide’s YourLife No-Lapse Guarantee UL with the Long Term Care Rider do have a built in 10% residual death benefit.