ROSS AND KATHY S. - $100,000 SINGLE PREMIUM

Transcription

1 ROSS AND KATHY S. - $100,000 SINGLE PREMIUM Re-Purpose and Leverage Available Assets ASSET BASED LONG TERM CARE 1

2 Table of Contents Executive Summary... 3 Asset Based Long Term Care - Summary... 5 Asset Based Long Term Care - Detail... 8 Financial Ratings Table of Contents is easily navigated by clicking hyperlinks embedded in the document

3 Graphs and Summaries Asset Repurposing Approach For Long-Term Care - Ross Simpson $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Money Back Single Premium - $100,000 Tax Free Initial Death - $267,848 Long Term Care Maximum - $267,848 Monthly Long-Term Care s - $7,440 (36 Mo.) Money Back Single Premium - $100,000 Tax Free Initial Death - $267,848 Long Term Care Maximum - $267,848 Monthly Long-Term Care s - $7,440 (36 Mo.) 1 Premium, 3 Potential Uses Visual aid helps 1. If You Need Long-Term Care in your discussion Reimburses monthly with for clients the cost of as care over received (Home and Facility) s are generally 60% paid of tax individuals free Long-term care benefits are visual are reduced learners by any policy loans, withdrawals, or terminal illness benefit paid under the policy 2. If You Pass Away Tax Free death proceeds paid to beneficiaries Death proceeds are reduced by any policy loans, withdrawals, or terminal illness benefit paid under the policy 3. If You Want Your Money Back Surrender policy at any time for Return of Premium One-Time premium will be refunded less any policy loans, withdrawals, or terminal illness benefit paid under the policy Click Here Navigation

4 Graphs and Summaries Asset Repurposing Approach For Long-Term Care - Kathy S. $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Money Back Single Premium - $100,000 Tax Free Initial Death - $296,261 Long Term Care Maximum - $296,261 Monthly Long-Term Care s - $8,229 (36 Mo.) Money Back Single Premium - $100,000 Tax Free Initial Death - $296,261 Long Term Care Maximum - $296,261 Monthly Long-Term Care s - $8,229 (36 Mo.) 1 Premium, 3 Potential Uses 1. If You Need Long-Term Care Reimburses monthly for the cost of care received (Home and Facility) s are generally paid tax free Long-term care benefits are reduced by any policy loans, withdrawals, or terminal illness benefit paid under the policy 2. If You Pass Away Tax Free death proceeds paid to beneficiaries Death proceeds are reduced by any policy loans, withdrawals, or terminal illness benefit paid under the policy 3. If You Want Your Money Back Surrender policy at any time for Return of Premium One-Time premium will be refunded less any policy loans, withdrawals, or terminal illness benefit paid under the policy Click Here Navigation

5 Summaries and Descriptions Executive Summary ASSUMPTIONS USED FOR ILLUSTRATIONS 1) Ross S. - Age 57 and Kathy S. - Age 57 - Minnesota Residence 2) Standard Health Ratings Applied (No health information was provided) - Health Assessment Link If Known Medical Conditions Exist - CLICK HERE 3) Funding Assumption Exchange Using Existing Surrender Value of Cash Value Life Insurance (Re-purposing Asset) PERSONAL RISK FACTORS The following factors might affect your likelihood of needing long-term care: 1) Life expectancy. The longer you live, the more likely you will need long-term care. Consider whether your family has a tendency for long life expectancy. 2) Gender. Women tend to need long-term care insurance more than men because they generally live longer. Easy to use external links which allow 3) Your family situation. If you have a spouse, adult children, or other family members who can care for you at your home, clients you may want to to pre-screen consider long-term known care insurance health to alleviate the stress placed on the family to provide your care instead of supervising your care. conditions to better understand their 4) Family health history. You may have a greater need for long-term care if chronic or debilitating health conditions run in your family. expected premium Current Average Cost of Long Term Care Care - Minneapolis Area - CLICK HERE The numbers below are used to illustrate future benefit growth protection in anticipation of a conservative 6% health care cost inflation rate. 1. Nursing Home - Single Room $83,950/yr. (5 yr. annual growth rate - 7%) Estimated - 5% Annual Growth Projection After 20 years = $222,744.34/yr. ($18,562/mo.) 2. Home Care - $59,488/yr. (5 yr. growth - 1%) Estimate - 3% Annual Growth Projection After 20 years = $107,441/yr. ($8,953/mo.) Review actual long-term care costs in any given area directly with your clients 3

6 Summaries and Descriptions CONSIDERATIONS FOR LONG TERM CARE INSURANCE FOR RETIREMENT PLANNING BUY TRADITIONAL LONG TERM CARE INSURANCE Pros 1) Transfer risk of long-term care costs away from your current assets to an insurance company. 2) Increase funds you have available to help pay for long term care expenses. Cons 1) Premiums may not be guaranteed and will most likely increase over time. 2) If you never need long-term care, the money you spent on premiums may be lost. PAY FOR LONG TERM CARE USING CURRENT ASSETS (SELF INSURE) Pros 1) Maintain control of your assets. 2) No restrictions on how you use your money - freedom to choose any type of care you want. Easy to demonstrate the pros and cons of various long-term care funding strategies Cons 1) If long-term care costs escalate and assets shrink due to poor market performance, you may risk depleting your retirement savings. 2) Your freedom to choose the care you need may dwindle with your savings. 3) Care coordination and management are placed on the ability of caregiver and immediate family. RE-PURPOSING CONSERVATIVE ASSETS TO LEVERAGE LONG TERM CARE PROTECTION Pros 1) Gain access to professional care coordination and management services to reduce the stress placed on a self funded care strategy. 2) Maintain control of your assets while accessing the power of financial leverage provided through an insurance company. 3) Death benefits for beneficiaries if you pass away before or during receiving long term care. 4) Return of premium refunds your initial premium payment upon surrender. Cons 1) Lost opportunity cost of re-purposing a conservative asset for investing. 2) Care costs will still most likely be shared with the clients personal portfolio to fund all long term care needs. 4

7 Summary page provides quick reference and discussion points Asset Based Long Term Care - Summary OneAmerica OneAmerica Genworth Financial Genworth Financial Pacific Life Pacific Life Quick Reference Summary Name Ross S Kathy S. Ross S. Kathy S. Ross S. Kathy S. Underwriting Class Couples Discount Asset Funding Type Insurance Type One Time Premium Annual Premium Option Return of Premium Initial Death Preferred (Non-smoker) Preferred (Non-smoker) Preferred (Non-smoker) Preferred (Non-smoker) Non Smoker Non Smoker Not Applicable Not Applicable Yes - 20% Yes - 20% Yes - 10% Yes - 10% 1035 Exchange - Cash Value Life 1035 Exchange - Cash Value Life 1035 Exchange - Cash Value Life 1035 Exchange - Cash Value Life 1035 Exchange - Cash Value Life 1035 Exchange - Cash Value Life Whole Life Whole Life Universal Life Universal Life Universal Life Universal Life $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $195,042 $218,904 $267,848 $296,261 $157,316 $170,415 5

8 OneAmerica OneAmerica Genworth Financial Genworth Financial Pacific Life Pacific Life Residual Death Guaranteed Interest Rate Surrender Charges LTC Monthly Maximum Not Applicable Not Applicable $26,785 $29,626 $5,000 $5,000 4% 4% 3% 3% 3.65% 3.65% Decreasing 10 Years Decreasing 10 Years Decreasing 15 years Decreasing 15 years Decreasing 10 years Decreasing 10 years $5,851 $6,567 $7,440 $8,229 $6,554 $7,100 LTC $195,042 $218,904 $267,848 $296,261 $235,974 $255,622 Maximum For more detail, the information is LTC 33 Months linked 33 Months to policy language 36 Months in the portfolio 36 Months 36 Months 36 Months Duration document. Your client will know exactly LTC Home EP 30 Days 30 Days how their coverage 0 Daywill perform 0 Day 0 Day 0 Day LTC Facility EP 60 Days 60 Days 90 Days 90 Day 90 Days 90 Days LTC Inflation None None None None None None Nonforfeiture Not Elected Not Elected Not Elected Not Elected Not Elected Not Elected Waiver of Monthly Deductions Yes Yes Yes Yes No No Tax Qualified Yes Yes Yes Yes Yes Yes 6

9 OneAmerica OneAmerica Genworth Financial Genworth Financial Pacific Life Pacific Life Coordination of Care Services Life Insurance Policy Tables Pricing Single Premium Initial Death Long Term Care Maximum Total Monthly Premium No No Yes Yes Yes Yes Click Here Click Here Click Here Click Here Click Here Click Here $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $195,042 $218,904 $267,848 $296,261 $157,316 $170,415 $5,851 $6,567 $7,440 $8,229 $6,554 $7,100 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $

10 Asset Based Long Term Care - Detail OneAmerica Genworth Financial Pacific Life Life Insurance Features Insurance Type Return of Premium Whole Life - Caters to long-term goals by offering consumers consistent premiums and guaranteed cash value accumulation. (Death s Do Not Decrease Under This Model) If you decide this policy no longer meets your needs, One America will return to you no less than the single premium you paid for this whole life insurance policy, reduced by any prior distributions (loans, withdrawals, long-term care benefits paid). Premiums paid for any riders or additional benefits may not be eligible for Return of Premium. Universal Life - Gives consumers flexibility in the premium payments, death benefits and the savings element of their policy. (Death s May Decrease Under This Model If Performing At Minimums) If the policy is surrendered after the second policy year, the owner will receive at least the initial premium less outstanding loan balance, any previous withdrawals and any LTC benefits paid. Any premium paid after the initial premium will not be included in the ROP. Because rider charges reduce basis (not below zero) the ROP benefit will be taxable to the extent it exceeds the policy cost basis. Linked tab allows you to navigate document electronically while discussing key features or limitations in your client s coverage Universal Life - Gives consumers flexibility in the premium payments, death benefits and the savings element of their policy. (Death s May Decrease Under This Model If Performing At Minimums) If you surrender your policy without using any policy benefits, 100% of the one-time premium is guaranteed to be refunded. Policy benefits are reduced by any policy loans, withdrawals, terminal illness benefit, or long-term care benefits paid under the policy. Death Proceeds and Return of Premium will be reduced when long-term care benefits are taken. Values assume no prior distributions of any kind taken. 8

11 OneAmerica Genworth Financial Pacific Life Initial Death This is the amount payable to the beneficiary upon the death of the insured. The death benefit will decrease if insured withdraws any accumulated value or long term care benefits are used. This is the amount payable to the beneficiary upon the death of the insured. This amount will be the greater of: the death benefit as described below; and the residual death benefit as described below. The death benefit payable will be either the death benefit or the residual death benefit, but not both. Internal costs of insurance and riders selected may reduce future death benefits over the life of the contract based on guaranteed interest rates. This is the value that is payable to the policy beneficiaries income tax-free2 upon the insured's death. Even if you exhaust your Total Long-Term Care s, your policy beneficiaries are guaranteed to receive Death Proceeds as indicated in Residual Death Amount. Internal costs of insurance and riders selected may reduce future death benefits over the life of the contract based on guaranteed interest rates. Residual Death Not applicable as the life insurance benefit is based on the initial death benefit minus any long term care, loans, or withdrawls. The policy may be spent to Zero. The death benefit payable to the beneficiary will be the greater of the remaining death benefit or the residual death benefit. The residual death benefit will be decreased by 10% of the sum of any outstanding loan balance and withdrawals. This policy provides a residual death benefit if greater than the death, in an amount equal to the lesser og 5% of the initial face amount, or $5,000. Any withdrawls and any terminal illness benefit payments will reduce the residual death benefit in the same portion that they reduce the face amount. 9

12 OneAmerica Genworth Financial Pacific Life Policy Interest Rate One America guarantees a minimum interest rate of 4% per year, but may apply interest rates greater than the guaranteed rate. The may also apply any different rate of interest to any portion of the accumulated value the equals the amount of any policy indebtedness. However, they cannot credit less than 4% each year. Interest accrues daily and is compounded annually. The credited interest rate used to calculate the policy value will never be less than the guaranteed credited interest rate shown you policy schedule. (3%). Interest in excess of the guaranteed credited interest rate may be applied as Genworth determine, but will be credited at least annually. We credit interest to the Fixed Accumulated Value on a daily basis at the end of each day, using a 365- day year, at a rate not less than the Guaranteed Annual Interest Rate (3.65%) shown in the Policy Specifications. At our discretion, we may credit additional interest. Any such additional interest may be adjusted to reflect expenses, taxes, profit, or sources of earnings other than investment earnings and will be applied uniformly to all members of the same Class. Cash Surrender Charge Qualification for Long Term Care The cash value accumulation fund, minus any surrender charges and any indebtedness, which is available to the policyholder upon surrender of the policy. Surrender charges are a percentage of your cash value accumulation fund, and will be deducted in the first 10 years as follows: Year 1-11%, Year 2-10%, Year 3-9%, Year 4-8%, Year 5-7%, Year 6-6%, Year 7-5%, Year 8-4%, Year 9-3%, Year %, Year 11-0%. Surrender charges will not reduce any Return of Premium benefits. The surrender charge is 10% of policy value for ten years declining 2% each policy year after 10 years to zero at the end of policy year 14. Surrender charges will not reduce the amount of any Return of Premium (ROP) benefit. If you surrender this policy, there may be a Surrender Charge deducted from the Accumulated Value. During the Level Period (First 5 Years), the Surrender Charge is equal to the Initial Amount. After the Level Period (Next 10 Years), the Surrender Charge decreases by the Reduction Factor for the remaining Surrender Charge Period. The Initial Amount, Level Period, Reduction Factor and Surrender Charge Period are shown in the Policy Specifications. 10

13 OneAmerica Genworth Financial Pacific Life Qualification Trigger Long Term Care Features Means necessary diagnostic, preventative, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance or personal care services. Chronically Ill - An insured that has been certified by a licensed health care practitioner during the proceeding twelve-month period as : 1) Expected to need substantial human assistance (hands on or standby) in at least two activities of daily living (Bathing, Continence, Dressing, Eating, Toileting, and Transferring) for a period of at least 90 days due to the loss of functional capacity; or 2) Requiring substantial supervision (continual supervision) to protect the insured from threats to health and safety due to severe cognitive impairment. Means necessary diagnostic, preventative, therapeutic, curing, treating, mitigating, rehabilitative, and maintence or personel care services which are required by a chronically ill individual; and are provided pursuant to a plan of care. Chronically Ill - refers to a person who has been certified by a licensed health care practitioner as 1) Being unable to perform, without substantial assistance (hands on or standby), at least two activities of daily living (Bathing, Continence, Dressing, Eating, Toileting, and Transferring) for a period of at least 90 days due to the loss of functional capacity; or 2) Requiring substantial supervision (continual supervision) to protect the insured from threats to health and safety due to severe cognitive impairment. Means necessary diagnostic, preventative, therapeutic, curing, treating, mitigating, rehabilitative services and maintence or personel care services which are required by a chronically ill individual; and are provided pursuant to a plan of care prescribed by a licensed health care practitioner. Chronically Ill - means the insured that has been certified by a licensed health care practitioner Being unable to perform, without substantial assistance (hands on or standby), at least two activities of daily living (Bathing, Continence, Dressing, Eating, Toileting, and Transferring) for a period of at least 90 days due to the loss of functional capacity; or 2) Requiring substantial supervision (continual supervision) to protect the insured from threats to health and safety due to severe cognitive impairment. Long Term Care Monthly Maximum The maximum One America will reimburse each month for qualified long term care expenses including long term care facility, adult day care facility, assisted living facility, home care, home health aide or worker, hospice care, and respite care. This is the combined total amount Genworth will pay und the long term care benefit for covered expenses incurred during a calendar month for facility care, home and community care, respite care, hospice care and international coverage. Covered long term care expenses incurred are reimbursed up to the monthly maximum benefit amount. If covered expenses are incurred in an amount less than the monthly maximum, only the amount of the actual covered expense will be reimbursed. 11

14 OneAmerica Genworth Financial Pacific Life Long Term Care Maximum The amount payable for long-term care expenses incurred by the insured. The long-term care balance can change du to interest rates, cost of insurance charges, loans taken, partial withdrawals, and long term care benefits paid. This is the combined total amount that can be paid for covered expenses un the long term care benefit and alternative care benefit. The maximum will increase if the optional inflation protection is in effect; or decrease due to withdrawals, benefit payments made, or death benefit payable un the policy. Is the total amount of monthly benefits payable under this rider for the care coordination benefit, nursing home benefit, assisted living facility benefit, home and community care benefit, international benefit and alternative care benefit. Long Term Care Duration This is the maximum duration that monthly benefits will be paid assuming the monthly maximum is used in full each month. This maximum may be extended if your monthly expenses for care are less than the monthly maximum benefit. Covered expenses for Home Modification, Durable Medical Equipment or Caregiver Training will have a separate and lesser maximum applied. This is the maximum duration that monthly benefits will be paid assuming the monthly maximum is used in full each month. This maximum may be extended if your monthly expenses for care are less than the monthly maximum benefit. Covered expenses for Home Modification, Durable Medical Equipment or Caregiver Training will have a separate and lesser maximum applied. This is the maximum duration that monthly benefits will be paid assuming the monthly maximum is used in full each month. This maximum may be extended if your monthly expenses for care are less than the monthly maximum benefit. Covered expenses for Home Modification, Durable Medical Equipment or Caregiver Training will have a separate and lesser maximum applied. 12

15 OneAmerica Genworth Financial Pacific Life Long Term Care Home Elimination Period 30 Days - The intial number of days that the insured receives long term care but which no benefits are paid. Each day in which any combination of types of qualified long term care services is provided equals one day of care. The waiting period may be completed consecutively or intermittenly but must be completed within a period of one hundred and eighty (180) days. 0 Days - is the number of days of days on which the insured must incur covered expenses before benefits become payable for Home care. Days used to satisfy the elimination period do not need to be consecutive and can be accumulated over time. The elimination period only needs to be satisfied once during the insured's lifetime. 0 Days - means the total number of days that the Insured is a Chronically Ill Individual before benefits are payable. Each occurrence of days counted towards satisfying the Elimination Period begins on the first day that the Insured is a Chronically Ill Individual and incurs Covered Expenses. The days do not have to be consecutive; days over separate occurrences may accumulate towards satisfying the Elimination Period. The Elimination Period need only be met once during the Insured s lifetime. Long Term Care Facility Elimination Period 60 Days - The intial number of days that the insured receives long term care but which no benefits are paid. Each day in which any combination of types of qualified long term care services is provided equals one day of care. The waiting period may be completed consecutively or intermittenly but must be completed within a period of one hundred and eighty (180) days. 90 Days - is the number of days of days on which the insured must incur covered expenses before benefits become payable for facility care. Days used to satisfy the elimination period do not need to be consecutive and can be accumulated over time. The elimination period only needs to be satisfied once during the insured's lifetime. 90 Days - means the total number of days that the Insured is a Chronically Ill Individual before benefits are payable. Each occurrence of days counted towards satisfying the Elimination Period begins on the first day that the Insured is a Chronically Ill Individual and incurs Covered Expenses. The days do not have to be consecutive; days over separate occurrences may accumulate towards satisfying the Elimination Period. The Elimination Period need only be met once during the Insured s lifetime. 13

16 OneAmerica Genworth Financial Pacific Life Long Term Care Inflation Protection For an additional premium, we will provide an inflation protection benefit which will increase your rider monthly benefit limit, compounded annually after the first policy year. (5% Compound available) Note: in certain states the compound is only available on LTC additional rider coverage. If elected and unless you have rejected optional inflation protection on the application, the policy will recalculate the benefit limit based on the optional inflation selected (3% Simple, 3% Compound, 5% Simple and 5% Compound) each year. If Elected, the Inflation Option elected increases your Monthly Maximum automatically on each policy anniversary, thus increasing your Total Long-Term Care s available each year. There are three Inflation Options: 5% Compound, 5% Simple, or 3% Simple. If you do not elect an Inflation Option, your monthly maximum benefit will remain level. Nonforfeiture For an additional premium, we will pay you a nonforfeiture benefit if you lapse this rider (Extra LTC Monthly Rider) for nonpayment of premium. The rider monthly benefit will remain at the level you choose when you purchase the rider, but will be paid for a shorter period of time. If elected, this will provide a reduced lifetime maximum if the policy terminates for any reason other than the insured's death after this rider has been in force for at least 3 years. When this benefit applies, this will be deemed to be in paid-up status. If elected, upon lapse of this Rider, the Owner is eligible for one of the two options described: 1. Return of Premium as described in this Rider. 2. Shortened Period. Under this option, we will continue coverage of eligible claims until the earlier of: The death of the Insured; or The date the Nonforfeiture Limit has been reached. 14

17 OneAmerica Genworth Financial Pacific Life Waiver of Monthly Deductions All monthly deductions are waived for covered care under the nursing facility benefit, the assisted living facility benefit, the bed reservation benefit, or the home care benefit. Monthly deductions cover the cost of death and long term care benefits. These charges are not guaranteed. They are automatically deducted from the policy value. All monthly deductions are waived for covered care under the nursing facility benefit, the assisted living facility benefit, the bed reservation benefit, or the home care benefit. The waiver begins with the first monthly deduction made after the date the company first pays a benefit and continues while such care is being received. Not Available. Monthly deductions are still taken while receiving benefits. 15

18 OneAmerica Genworth Financial Pacific Life Coordination of Care Services Not currently available. These services will provide the Insured with access to a team of qualified individuals who will review the Insured s specific situation and provide the following services: A) Conduct assessments of the Insured s functional and cognitive capabilities and personal needs for care and services on an ongoing basis. B) Work with the Insured to identify the specific care, services and providers required to meet the Insured s needs. C) Develop and suggest initial and subsequent Plans of care to assist the Insured in meeting his or her needs. D) Provide the initial and ongoing Current Eligibility Certifications. E) Assist You in completing initial claims forms, if requested. F) Monitor the Insured s care needs on an ongoing basis to help the Insured receive appropriate care while the Insured is Chronically Ill. The Privileged Care Coordination Team includes a Licensed Health Care Practitioner who is qualified by training and experience to assess and coordinate the overall care needs of a Chronically Ill Individual. Care Coordination provides the Insured with the knowledge and training of a Care Coordinator who will review his unique situation and develop Plans of Care to meet his needs. The Care Coordinator, a Licensed Health Care Practitioner, will: A) Assess the Insured s functional, cognitive and personal needs for care and services on an ongoing basis; B) Work with the Insured to determine the specific services required; C) Develop and suggest initial and subsequent Plans of Care to assist the Insured in meeting the needs of the Insured; D) Coordinate and monitor the Insured s care needs on an ongoing basis to help the Insured receive appropriate care; and E) Help the Insured arrange for care, if desired. 16

19 OneAmerica Genworth Financial Pacific Life Exclusions and Limitations Those excluded are: A) Care received outside the United States; B) Care received by a member of an insured's immediate family; C) Services or supplies that are oaid by Medicare, any state of Federal Worker's Compensation law, or any other governmental program except Medicaid; D) Care received due to an intentially self-inflicted injury; E) Care provided due to an injury received as a result of participation in a felony, riot, or insurrection; F) care provided in a facility for the treatment of alcoholism or drug addiction; or G) Care for which no charge is normally made in the absence of insurance. We will not pay s for any expenses incurred for any Covered Care: A) for which no charge is normally made in the absence of insurance; B) provided outside the United States, unless specifically provided for by a ; C) provided by the Insured s Immediate Family; D) provided by or in a Veteran s Administration or Federal government facility, unless a valid charge is made to the Insured or the Insured s estate; E) resulting from illness, treatment or medical condition arising out of: war or any act of war, whether declared or not; or attempted suicide or an intentionally self-inflicted injury; F) for the Insured s alcoholism or drug addiction. Pacific Life will not pay benefits for any room and board, care, treatment, services, equipment, or other items for: A) Care or services provided by the Insured s Immediate Family: B) Care or services for which no charge is made in the absence of insurance; C) Care or services for which no charge is made in the absence of insurance; D) Care or services provided outside the United States of America, except as provided for under the International ; E) Care or services that result from an attempt at suicide (while sane or insane) or an intentionally selfinflicted injury; F) Treatment provided in a government facility (unless otherwise required by law); G) Services for which benefits are available under Medicare or other governmental program (except Medicaid), any state or federal workers compensation, employer s liability or occupational disease law, or any motor vehicle no-fault law. Underwriting Requirements 17

20 OneAmerica Genworth Financial Pacific Life Medical Exam Requested per underwriting Required on all applications. Requested per underwriting Blood Sample Requested per underwriting Required on all applications. Requested per underwriting Urine Specimen Telephone Interview Pricing Single Premium Total Monthly Premium Requested per underwriting Required on all applications Requested per underwriting Required on all applications. Required on all applications Required on all applications $200,000 (Combined) $200,000 (Combined) $200,000 (Combined) $ 0.00 $ 0.00 $

21 Pricing and Financials Financial Ratings Financial ratings of each carrier are provided and updated for each annual review period OneAmerica Genworth Financial Pacific Life Ratings As Of 03/12/14 09/05/14 03/12/14 A.M. Best A+ A A+ Standard & Poor's AA- A- A+ Moody's N/A A3 A1 Fitch Ratings N/A A- A+ ComDex Note: These proposals under no circumstances should be construed as a contract or offer to contract insurance coverage(s). An application must be submitted to our office before an individual will be considered for coverage(s) at any of the insurance companies contained within these proposals. These proposals are based on preliminary data received by. Securing coverage will be based on the final financial and health information from the applicant. Policy benefits are reduced by any policy loans, withdrawals, terminal illness benefit, or long-term care benefits paid under the policy. Death Proceeds and Return of Premium will be reduced when long-term care benefits are taken. Values assume no prior distributions of any kind taken. 19

22 Illustration Guaranteed and Non-Guaranteed rate table provided for each carrier

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24 Prepared for: Ross Sex/Age: Male/ 57 Init Prem: $100,000 Init Spec Amt: $267,848 Prem Class Life: Preferred No Nicotine Use Premium Class LTC: Preferred - With 20% Couples Discount Numeric Summary The Guaranteed Basis values are calculated using only the guaranteed elements. The Current (Non-guaranteed) Basis values are calculated using only the non-guaranteed elements. The Non-guaranteed Midpoint Basis values for the interest rate, insurance charges and expense charges are calculated using the midpoint between the guaranteed and the currently illustrated non-guaranteed elements. 3.00% Interest Rate Guaranteed Basis 3.425% Interest Rate Non-guaranteed Midpoint Basis 3.85% Interest Rate Current Basis Year Age Cumulative Premium Outlay Policy Value Net Cash Surrender Value * Death Policy Value Net Cash Surrender Value * Death Policy Value Net Cash Surrender Value * Death , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,848 98, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,848 Age Policy Lapses Policy will not lapse unless a loan is taken Policy will not lapse unless a loan is taken Policy will not lapse unless a loan is taken All benefits and values shown in this illustration assume that the initial premium is received on the policy date and no changes are made to the policy other than as illustrated. This illustration assumes that there have been no policy loans, withdrawals and long term care claims. Death benefit and premiums shown are beginning of year values. In the year of reduction to the GMBR values, the death benefit shown is as of the end of year. Other values shown are end-of-year values. The benefits and values are not guaranteed. The assumptions on which they are based are subject to change by the insurer. Actual results may be more or less favorable. *The amount shown is the greater of the cash surrender value and the ROP amount. By signing below, I certify I have received a copy of this illustration and understand that any non-guaranteed elements of the policy I am applying for are subject to change and may result in policy values and benefits which are higher or lower than those shown in this illustration. The agent told me these elements are not guaranteed. Date: Signature of Applicant(s)/Owner(s) I certify that this illustration has been presented to the applicant and that I have explained that any non-guaranteed elements illustrated are subject to change. I have made no statements that are inconsistent with the illustration. Date: Signature of Broker/Agent State of Delivery: Minnesota Date Prepared: 4/4/2014 Basic Illustration, Page 10 of 10; FV2.50 IV#0912D This illustration is Not Complete Without All Pages

25 Prepared for: Kathy Sex/Age: Female/ 57 Init Prem: $100,000 Init Spec Amt: $296,261 Prem Class Life: Preferred No Nicotine Use Premium Class LTC: Preferred - With 20% Couples Discount Numeric Summary The Guaranteed Basis values are calculated using only the guaranteed elements. The Current (Non-guaranteed) Basis values are calculated using only the non-guaranteed elements. The Non-guaranteed Midpoint Basis values for the interest rate, insurance charges and expense charges are calculated using the midpoint between the guaranteed and the currently illustrated non-guaranteed elements. 3.00% Interest Rate Guaranteed Basis 3.425% Interest Rate Non-guaranteed Midpoint Basis 3.85% Interest Rate Current Basis Year Age Cumulative Premium Outlay Policy Value Net Cash Surrender Value * Death Policy Value Net Cash Surrender Value * Death Policy Value Net Cash Surrender Value * Death , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,261 Age Policy Lapses Policy will not lapse unless a loan is taken Policy will not lapse unless a loan is taken Policy will not lapse unless a loan is taken All benefits and values shown in this illustration assume that the initial premium is received on the policy date and no changes are made to the policy other than as illustrated. This illustration assumes that there have been no policy loans, withdrawals and long term care claims. Death benefit and premiums shown are beginning of year values. In the year of reduction to the GMBR values, the death benefit shown is as of the end of year. Other values shown are end-of-year values. The benefits and values are not guaranteed. The assumptions on which they are based are subject to change by the insurer. Actual results may be more or less favorable. *The amount shown is the greater of the cash surrender value and the ROP amount. By signing below, I certify I have received a copy of this illustration and understand that any non-guaranteed elements of the policy I am applying for are subject to change and may result in policy values and benefits which are higher or lower than those shown in this illustration. The agent told me these elements are not guaranteed. Date: Signature of Applicant(s)/Owner(s) I certify that this illustration has been presented to the applicant and that I have explained that any non-guaranteed elements illustrated are subject to change. I have made no statements that are inconsistent with the illustration. Date: Signature of Broker/Agent State of Delivery: Minnesota Date Prepared: 4/4/2014 Basic Illustration, Page 10 of 10; FV2.50 IV#0912D This illustration is Not Complete Without All Pages

26 Proposed Insured: Ross S Male, Age 57 Nonsmoker with Couples Discount Inflation Option: Rejected Duration: 3 Years Pacific PremierCare Advantage - Life Insurance Quote Flexible Premium Adjustable Life Insurance Policy Form # ICC12 P12PPC or P12PPC - For Presentation in MN Life Insurance Producer: Secura Consultants 6465 Wayzata Blvd Suite 920 Minneapolis, MN Statement of Policy Cost and Information: Policy Values and Long-Term Care s ALL VALUES AND BENEFITS ARE GUARANTEED 1 One-Time End of Year Net Beginning of Year Total Long-Term Total Long-Term Monthly Yr Age Premium Cash Surrender Value Death Proceeds Care s Care s IRR Maximum , , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6, , , , % 6,554 1 Policy benefits are reduced by any policy loans, withdrawals, terminal illness benefit, or long-term care benefits paid under the policy. Death Proceeds and Return of Premium will be reduced when long-term care benefits are taken. Values shown assume no prior distributions of any kind. Policy stays in-force through your lifetime with no charges past age 94. ICC13 L-4 Life Insurance Producer: For: Ross S Pacific Life Insurance Company, 45 Enterprise, Aliso Viejo, CA D Run: 4/4/ :23 AM PPCA - 157,316 / 100, / 78,658 / 1 Page: 11 of 13

27 Proposed Insured: Kathy S Female, Age 57 Nonsmoker with Couples Discount Inflation Option: Rejected Duration: 3 Years Pacific PremierCare Advantage - Life Insurance Quote Flexible Premium Adjustable Life Insurance Policy Form # ICC12 P12PPC or P12PPC - For Presentation in MN Life Insurance Producer: Secura Consultants 6465 Wayzata Blvd Suite 920 Minneapolis, MN Statement of Policy Cost and Information: Policy Values and Long-Term Care s ALL VALUES AND BENEFITS ARE GUARANTEED 1 One-Time End of Year Net Beginning of Year Total Long-Term Total Long-Term Monthly Yr Age Premium Cash Surrender Value Death Proceeds Care s Care s IRR Maximum , , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7, , , , % 7,100 1 Policy benefits are reduced by any policy loans, withdrawals, terminal illness benefit, or long-term care benefits paid under the policy. Death Proceeds and Return of Premium will be reduced when long-term care benefits are taken. Values shown assume no prior distributions of any kind. Policy stays in-force through your lifetime with no charges past age 94. ICC13 L-4 Life Insurance Producer: For: Kathy S Pacific Life Insurance Company, 45 Enterprise, Aliso Viejo, CA D Run: 4/4/ :23 AM PPCA - 170,415 / 100, / 85,208 / 1 Page: 11 of 13