Long Term Care and Chronic Illness Rider Summary Rider Name Issue Age Tax Qualified Status Qualification for Benefits Benefit Payment Revised April 29, 2014 Allianz American General Aviva AXA ING John Hancock Long Term Care Accelerated Benefit Rider Accelerated Access Solution Accelerated Access Rider ADB for LTC Services Rider Accelerated Benefit Rider Life Care Benefit Rider 0-75 18-80 18-75 20-75 Same as product 20-75 101 (g) - Accelerated Life Insurance Death Benefit 101 (g) - Accelerated Life Insurance Death Benefit 101 (g) - Accelerated Life Insurance Death Benefit 7702B - LTC Insurance 101 (g) Life Insurance 101 (g) - Accelerated Life Insurance Death Benefit 7702B - LTC Insurance Certification insured is unable to perform at least 2 of 6 ADL’s, or Requires substantial • supervision due to a cognitive impairment • Expected to be permanent • • • Unable to perform 2 of 6 ADL’s (expected to be permanent) or Cognitive Impairment Expected to be permanent Permanently unable to perform 2 of the 6 ADL’s, or Permanently require • supervision to protect from threats to health and safety due to severe cognitive impairment. • • • • Certification insured is chronically ill Must certify insured is receiving Qualified LTC services Written proof of loss Qualifying medical/physical condition or life expectancy of 12 months or less from the date of receipt of a physician statement Certification insured is chronically ill Written proof of loss • • Re-certified at least annually • Monthly Indemnity Monthly Indemnity Monthly Indemnity Monthly Indemnity One time benefit Monthly Reimbursement Use of Benefit Not Specified in Rider No Restrictions Any expenses for care Adult Day Care, Assisted Care, Home Health Care, Hospice Care, Intermediate Care, Skilled Nursing Care Continuous confinement in an eligible institution and stay for rest of life or medical condition requiring extraordinary medical care Adult Day Care, Assisted Care, Home Health Care, Respite Care, Intermediate Care, Skilled Nursing Care Waiting Period 90 Day elimination 90 day elimination 90 days 90 days of any combination of qualified LTC services N/A 100 days of service, not including Respite Care 1%, 2%, 3% or 4% of DB, not to exceed $10k / month 2%, 4% or per diem Lesser of 2% of eligible amount or IRS per diem limit 1%, 2% or 3% of DB N/A 1%, 2% or 4% of DB Policy Face Amount, maximum of $1M Customer chooses at issue, 50% - 100% of Face Amount Net Amount at Risk x Multiplier relevant to attained age at claim, plus cash value = eligible amount Policy Face Amount Lesser of 50% of DB or $1M Death Benefit at time of initial claim Dollar for Dollar reduction Dollar for Dollar reduction Dollar for Dollar reduction, plus potential interest and mortality fees Dollar for Dollar reduction Dollar for Dollar reduction Dollar for Dollar reduction Proportional Reduction Proportional Reduction No Impact on Cash Value Proportional Reduction Doesn’t impact CV Proportional Reduction Life Pro+ IUL, GenDex Momentum IUL, GenDex Foundation IUL, Generation Planner II AG Secure Lifetime GUL II Lifetime Builder II and LifeStage UL Athena UL, Incentive Life, VUL, Life Legacy II, BrightLife Protect ING IUL-CV, ING UL-CV ULG-11, Protection UL, Accum UL/VUL, Performance UL/VUL No lapse protection, premium and rider charges continue Policy payments stop for as long as policy owner meets the Chronic Illness requirement None If policy would otherwise lapse, benefit payments and remaining unpaid DB is guaranteed None If policy would otherwise lapse, benefit payments still payabale, but remaining unpaid DB not guaranteed CA, OR, VA CA, OR, WA, KS, NY CA, FL, NY, MT, TN FL, MN, WA NY MN, NC, UT, WA Max Monthly Benefit Max Total Benefit Claim Impact on DB Claim Impact on Policy Value Available Products Lapse Protection on Claim State Restrictions ! ! Lincoln MetLife Minnesota Life Mutual of Omaha Nationwide Protective LifeEnhance Rider Enhanced Care Benefit Rider Long Term Care Agreement (LTCA) Accelerated Death Benefit for Terminal and Chronic Illness Rider Long Term Care Rider Extend Care Rider / Chronic Illness ADBR 20-80 18-70 20-80 Same as product 21-80 20-80 101 (g) - Accelerated Life Insurance Death Benefit 101 (g) - Life 7702B - LTC Insurance 101(g) - Accelerated Life Insurance Death Benefit 7702B - LTC Insurance 101 (g) - Life Insurance Death Benefit Unable to perform 2 of 6 ADL’s, or Needs substantial • supervision due to cognitive impairment • Expected to be permanent Certified as being unable to perform 2 of 6 ADL’s Inability to perform 2 of 6 ADL’s or Cognitive Impairment • Indemnity Monthly Indemnity Monthly Indemnity Indemnity Monthly Indemnity Monthly Indemnity Use of Benefit Policy Owner’s discretion No Restrictions Family Care, Adult Day Care, Home Health Care, Intermediate Care, Hospice/ Respite Care, Skilled Nursing Care None specified Adult Day Care, Assisted Care, Home Health Care, Hospice Care, Intermediate Care, Skilled Nursing Care Use of benefit is not specified in rider Waiting Period None 90 Days 90 days of service, consecutive days not required 90 consecutive calendar days 90 Calendar Days satisfied by any combination of days in LTC, HHC and ACD Facility Waiting period of 3 to 12 months, must be selected by insured at issue Lesser of 2% of DB or the IRS per diem limit x days in month. Can also be taken as one time lump sum payment, discounted for mortality andi interest Lesser of 100% of DB or: >70 =$5M, <69 = $2M Met will pay once during the 12 month claim period up to 24% of the eligible death benefit in either a lump-sum or monthly payment. The lesser of 2% or 4% of LTCA Face Amount Benefits are paid in a lump sum but insured can make claims up to annually. Each claim requires recertification 2% of LTC specified amount chosen Up to $9,900 - max per diem Lesser of $5M or 90% of eligible DB Death Benefit at time of Initial Claim Lesser of $1M or 80% of DB at time of issue LTC Specified amount chosen Lesser of $1M or 90% of DB There is a ratio and formula that applies, see Lincoln marketing materials Dollar for Dollar reduction, plus $150 each year and mortality and interest charges Dollar for Dollar Reduction Dollar for Dollar Reduction, plus mortality adjustment charge Dollar for Dollar reduction Dollar for Dollar Reduction Policy values will be “prorated down” Proportional Reduction Proportional Reduction Proportional Reduction Dollar for Dollar reduction Proportional Reduction Available Products Lincoln VULOne, Lincoln LifeReserve IUL Accumulator, Lincoln Life Guarantee UL Promise Whole Life, Promise WL 120, PWL Select 10, PWL Select 20, PWL Select 65 Eclipse Indexed and Eclipse Protector Life, Accumulated UL and VUL GUL, GUL Plus, AccumUL Answers, GUL Express YourLife NLG, YourLife CAUL, YourLife IUL,Accum VUL, Protection VUL Lifetime Platinum III, Pro Classic UL, Lifetime Advantage, Plus Lapse Protection on Claim Rider charges cease, policy charges continue, policy won’t lapse as long as claim is active No If policy would otherwise lapse, benefit payments and remaining unpaid DB is guaranteed Premiums are still required, but ongoing COI’s are adjusted proportionally If policy would otherwise lapse, benefit payments and remaining unpaid DB is guaranteed CA, FL, HI, IL, MD, MA, MN, NY, OH, PA, VT, WA CA, CT, FL, IN, KS, LA, MA, NY, OH, WA, CA, FL, HI, NY, TX, VA, WA CA, CT, VI, NY MN, MT, WA Monthly deductions cease while the policy is on claim. Benefit payments will continue until the insured no longer qualifies CA, CT, FL, NY Rider Name Issue Age Tax Qualified Status Qualification for Benefits Benefit Payment Max Monthly Benefit Max Total Benefit Claim Impact on DB Claim Impact on Policy Value State Restrictions • Condition is expected to be permanent • Unable to perform 2 of 6 ADL’s, or Needs substantial • supervision due to cognitive impairment • Certification that the insured is unable to perform 2 of 6 ADL’s per physician statement, and/or • Certification by physician insured as severe cognitive impairment • • • Inability to perform 2 of 6 ADL’s Written certification that • insured is chronically ill, and in need of services Re-certified annually • • Expected to be permanent ! ! Prudential Symetra Transamerica Genworth North American Pacific Life Benefit Access Rider Accelerated Death Benefit Long Term Care Rider Accelerated Benefit Rider for Long Term Care Services Chronic Illness Accelerated Benefit Rider Premier Living Benefits Rider 20-80 20-85 18-80 18-65 15 days - 75 18-75 Tax Qualified Status 101 (g) - Life Insurance Death Benefit 101 (g) - Life Insurance Death Benefit 7702B - LTC Insurance 7702B - LTC Insurance 101 (g) - Accelerated Life Insurance Death Benefit 101(g) - Life Insurance Death Benefit Qualification for Benefits • Physician certification that insured is permanently unable to perform 2 of 6 ADL’s, or • Physician certification that insured is suffering from cognitive impairment • Expected to be permanent • Physician certification that insured is suffering from cognitive impairment, or • Physician certification that insured is unable to perform 2 of 6 ADL’s • Expected to be permanent • Certification that insured is chronically ill • Unable to perform at least 2 of 6 ADL’s • Certification that insured is chronically ill and will need help for at least 90 days, or Diagnosed with severe • cognitive impairment requiring substantial supervision The owner qualifies for benefits if a physician has certified within the past 12 months that the insured is chronically ill Expected to be permanent • Monthly Indemnity Indemnity Monthly Indemnity Monthly Reimbursement Monthly Indemnity Monthly Indemnity Use of Benefit No restrictions Not Specified by Rider Adult Day Care, Assisted Care, Home Health Care, Intermediate Care, Respite Care, Skilled Nursing Care Adult Day Care, Assisted Care, Home Health Care, Hospice Care, Intermediate Care, Skilled Nursing Care Not Specified by Rider Not Specified Waiting Period None 90 continuous days from time of certification 90 Days of Service 0 Day for HHC, 90 Day for Facility 90 day elimination 0 Day 2% of the DB at time of claim, not to exceed lesser of IRS per diem limit or iRS per diem limit at time of issue compounded at 4% annually Can take a lump sum or monthly payments that can last up to 10 years 2% of per diem amount allowed by IRS x (days in month) 2, 3, or 4 year benefit periods available. Max monthly benefit amount is DB divided by # of months, up to $25k / month Benefit payments can be made annually or semi-annually. Maximum election is the lesser of 24% of DB or $240k 2% Lesser of DB or $5M Lesser of $250k or 50% of the DB DB at time of Initial Claim $1.2M 95% of DB, up to $1M $1.5M Dollar for Dollar Reduction Benefit payments are taken as a loan against future DB with interest charges Dollar for Dollar Reduction Dollar for Dollar Reduction Dollar for Dollar reduction, plus $250 fee and mortality discounting charged at each election. Dollar for Dollar Reduction Proportional Reduction Policy values are impacted by interest charges described above Proportional Reduction Proportional Reduction Proportional Reduction Proportional Reduction Available Products PruLife Founders Plus and UL Protector Symetra Classic TransAce Foundation Builder IUL, Asset Builder IUL Guarantee Builder IUL, Rapid Builder IUL, Custom Growth CV, Custom Guarantee, Custom Guarantee III and Custom Term UL UL, VUL and IUL Lapse Protection on Claim The policy can not lapse while on claim. Regular charges still apply Policy will not lapse while the rider benefits are being received even if the policy’s net CV is not sufficient to pay the monthly deduction due Policy charges waived during claim. Any loan outstanding and loan interest would still be charged against policy values. While an election is in effect or if at least 50% of the DB has been accelerated, lapse checking will be suspended Can lapse while on claim State Restrictions AK, CA, CT, DE, MS, MT, NV, NH, OR, VA CA, NY CT, DE, FL, MT, NJ, NY CA, CT, FL, NY CA, NY, FL, KY NY Rider Name Issue Age Benefit Payment Max Monthly Benefit Max Total Benefit Claim Impact on DB Claim Impact on Policy Value Certification insured is unable to perform 2 of 6 ADL’s Supervision due to a • cognitive impairment • Expected to be permanent •
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