1. Asset Based LTC A Better Way to Self Insure
Producers Choice offers 3 life insurance based long term care products: Lincoln Financial Group – MoneyGuard II, Genworth – Total Living Coverage (TLC), and OneAmerica – Asset Care.

2. What’s The Problem?
If over 70% of people age 65* and older will require LTC, why do less than 10% of consumers own Traditional LTC insurance?**
The first thing that we want to take into consideration is the need for solutions. Most consumers are not protecting themselves from the costs of LTC expenses for a number of reasons. They may believe that they are healthy and will not incur LTC costs, they are going to self-insure, or they know they may need coverage but are not willing to commit to paying more insurance premiums. Many clients feel that they are already over insured and that they do not get benefits from their current insurance policies.
*Source: U.S. General Accounting Office, Long Term Care: Aging Baby Boomer Generation will increase financial burden on state and federal budgets,” March 21, 2002.
**Source: U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, September 2008.

3. Objections to Traditional LTC Insurance
ose it if you don’t use it
ough to manage expectations
ostly – Up front and in future

4. Objections to Traditional LTC Insurance
“People used to buy long-term-care insurance because they were scared. Now it is the policies themselves that are keeping buyers awake at night.”*
*WSJ May 1, 2015 Long-Term-Care Insurance: Is It Worth It?

5. What Are Clients Looking For?
A cost-effective way to protect themselves and loved ones from the expense of long term care
Provide death benefit if long term care isn’t needed
The ability to change their mind in the future
Gain peace-of-mind
Not to be a burden to loved ones

6. Changing the way we view LTC Insurance
Asset Based LTC
Changing the way we view LTC Insurance L T C
ive to Use It
ransferable asset to beneficiaries
hange your mind

7. Annuity General Overview
Single Life
Non-Qualified Funds (Annuity Care 1 Accepts Q)
Single Premium
2x – 3x Account Value
Simplified Underwriting
Pension Protection Act
Transactional

8. Global Atlantic: ForeCare
65 year old male - $100,000 deposit – Preferred Rates (Standard Rates 2X) L
ive to use it Total Long-Term Care Benefit $300,000 + Growth
ransferable asset Annuity Account Value $100,000 + Growth
hange your mind Year Term ($101,121 after 10 Years) T
“Live, quit, or die” also holds true with Genworth – TLC. The predominant difference between TLC and MoneyGuard II is that TLC is fully underwritten, and clients in great health can benefit from a 15% preferred discount. C

9. Life Insurance General Overview
Single Life or Joint Life
Qualified or Non-Qualified Funds
Single Premium to Lifetime Payments
Lifetime Benefits Available
Simplified to Full Underwriting
Tax-Free Death Benefit
Most have Residual Death Benefit
Inflation Options Available

10. Nationwide – CareMatters
65 year old male - $100,000 deposit - Couples Discount L
ive to use it Total Long-Term Care Benefit Limit $389,159 Indemnity Style Benefit
ransferable asset $129,720 Tax Free
hange your mind $100,000 After 5 Years T
“Live, quit, or die” also holds true with Genworth – TLC. The predominant difference between TLC and MoneyGuard II is that TLC is fully underwritten, and clients in great health can benefit from a 15% preferred discount. C

11. 65 year old male - $100,000 deposit - Couples Discount
LFG – MoneyGuard II
65 year old male - $100,000 deposit - Couples Discount L
ive to use it Total Long-Term Care Benefit Limit $431,097
ransferable Asset $143,699 Tax Free
hange your mind $80,000 T
Someone will always benefit from a MoneyGuard policy, hence the “Live, Quit, or Die” slogan.
If the client would like to “quit,” an 80% return of premium is available. Or, if they die, a death benefit will pay out to the client’s beneficiaries. Finally, if they live, the client can usually spend between 4 and 5 times their single premium on long term care. C
Leave
Die
Live

12. Case Study John and Sue - ages 65 and 63
$1,400,000 in investable assets
Concerned about future LTC cost and the financial and emotional impact it could have
Currently self-insure for LTC
*WSJ May 1, 2015 quoting Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance

13. Case Study
Fixed Annuity
$200,000 CD
$200,000
Investments
$1,000,000

14. L T C OneAmerica – Asset Care I
Survivorship with Lifetime Continuation of Benefits
Join Policy: 65 year old male | 63 year old female - $200,000 deposit
ive to use it Total Long-Term Care Benefit $6,907/mo Lifetime Benefit
ransferable asset $345,355 Tax Free
hange your mind $171,072 Year 1 - $203,000 Year 11 - $257,000 Year 20 L T
For a husband and wife who both desire protection from long term care expenditures, OneAmerica – Asset Care typically offers greater benefits than purchasing 2 separate MoneyGuard II or TLC policies. Another proprietary feature of Asset Care is that the Continuation of Benefits Rider can provide coverage for life, whereas MoneyGuard II and TLC only offer finite benefit periods. C

15. Home Health Care
“…buying a long-term-care policy “is all about care at home,”…”*
*WSJ May 1, 2015 quoting Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance

16. Home Health Care Average Cost of LTC care in US in 2013
(half of new claims were home-based):
Home Health Aide: $19/Hour
Monthly Cost: 12 hours per day = $6,935
Annual Cost: 12 hours per day = $83,220

17. Underwriting
Varies from 8 knockout questions and 10 minute phone interview to full underwriting.
Six products are simplified issue
Four products are simplified issue with potential for full underwriting
One product requires full underwriting

18. It’s quick and easy to find out!
Interested to know how many of your current clients would be interested in Asset Based LTC?
It’s quick and easy to find out!

19. PCN Survey Kit Turn Key process On site assistance Proven results
Brings clients to you

20. PCN Survey Kit Advisor 1: Sent 35 to his top clients
Received 20 Completed Surveys
Made 10 Appointments
4 LTC Sales so far (has other sales for GMWB)

21. PCN Survey Kit
Advisor 2
100 Sent to a mix of his current clients and prospects
Received 40 completed surveys
Gained 6 referrals
2 prospect appointments (Total of 8 new people to see)
12 potential LTC sales

22. PCN Survey Kit Advisor 3 Sent 75 to his top clients
Made 28 appointments
Gained 4 referrals
Uncovered and gained $2,000,000 in new assets
4 LTC sales with 6 possible so far

23. PCN Survey Kit Call Producers Choice 800.238.0448 Life Insurance
Total Living Coverage
MoneyGuard II
CareMatters
Lifetime Returns Select I
Asset Care I, Asset Care II, Asset Care III, Asset Care IV
Annuity
ForeCare
Annuity Care I
Annuity Care II
PCN Survey Kit
Producers Choice offers 3 life insurance based long term care products: Lincoln Financial Group – MoneyGuard II, Genworth – Total Living Coverage (TLC), and OneAmerica – Asset Care.
Call Producers Choice

24. Contact Your PCN Representative
For More Information
Producers Choice