product training for agent use only. not for the general public living care ® annuity afn41121

PRODUCT TRAINING

For agent use only. Not for the general publicFor agent use only. Not for the general public

Living Care® Annuity

AFN41121

For agent use only. 2

Introduction / Agenda

Background – A New Retirement Landscape

Living Care® Annuity Overview

Target Market and Marketing Materials

Sales Support – 1-800-693-6083

For agent use only. 3

Background

A New Retirement Landscape

For agent use only. 4

Background

A Challenge to Quality of Life

Two Common Retirement Risks

Longevity Risk

Long-Term Care Risk

For agent use only. 5

Background

Long-Term Care RiskSelf-Funding of Long-Term Care

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.

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

For agent use only. 8

Living Care® Annuity Overview

For agent use only. 9

Living Care® Annuity Overview

®

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

For agent use only. 11

Living Care® Annuity Overview

If they don’t 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

For agent use only. 12

Living Care® Annuity – Henry’s 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

For agent use only. 13

If Henry needs long-term care…

Henry, Age 65, $100,000 Single Premium, Assumed Interest Rate of 3%

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

For agent use only. 15

If Henry doesn’t need long-term care…

For agent use only. 16

Living Care® Annuity Overview

Specifications

Issue Ages 40-79

Premiums Non-qualified dollars only

$50,000 minimum

$300,000 maximum

Withdrawal Charges 10 years

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

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 (Alzheimer’s)

A least two years from issue date following 90-day elimination periodCost of rider is waived when the claim is approved

For agent use only. 19

LTC Daily Benefit Example

Annuity Value: $100,000

Max. Daily Benefit: $100,000 / 730 days = $136.99 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.

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%

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.

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 2006January 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.

For agent use only. 23

Living Care® Annuity Overview

12 Pre-qualifying Health QuestionsPhone InterviewCheck MIB and Medication DatabaseGoal is to make underwriting decision based on this informationIf applicant has been previously declined for LTC coverage, they will be unable to purchase this annuity

Underwriting and New Business Processing

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

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

For agent use only. 26

Target Market

Who can benefit from Living Care® Annuity?Individuals ages 40-79 who have total assets above $300,000 and most likely under $2.5 million

Target buyers ages 55-79

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

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

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

For agent use only. 30

For agent use only. 31

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

For agent use only. 33

Sales Support

Toll-free hotline number: 1-800-693-6083

Assistance with:Product knowledge and solutions

Illustrations

Underwriting pre-qualifications/consultations

Business processing

Other LTC coverage alternatives

For agent use only. 34

Disclaimer

Annuities are underwritten by United of Omaha Life Insurance Company, Mutual of Omaha Plaza, Omaha, NE 68175. 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.

For agent use only. Not for the general public.For agent use only. Not for the general public.

Thank You!