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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!
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