TaxDeferred to TaxFree for LTC LTC Annuities For

Tax-Deferred to Tax-Free for LTC: LTC Annuities For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

The Asset-Based LTC Market Leader Financial Strength • • • Traces roots back to 1877 A+ (AM Best), AA- (S&P) Comdex score is 95 Innovation • • First to market (Asset-Care released in 1988) Patented joint life benefits Commitment • One. America® is a mutual insurance holding company that is committed to being there when our clients need us most On July 27, 2018, State Life was rated A+ (Superior) by A. M. Best. This is the second highest of 16 possible ratings assigned by the agency. On September 7, 2018, State Life was rated AA- by S&P. This is the fourth highest of 21 possible ratings assigned by the agency. For use with financial professional only. Not for public distribution. is the marketing name for the companies of One. America | One. America. com 2

Issues Affecting the Descent (Distribution Phase) • Having enough income • Low interest rate market • Medical expenses • Extended Healthcare costs For use with financial professional only. Not for public distribution. is the marketing name for the companies of One. America | One. America. com 4

What is LTC from a planning perspective? It is simply – another retirement expense that causes your client’s income needs to increase For use with financial professional only. Not for public distribution. is the marketing name for the companies of One. America | One. America. com 5

Questions to ask your clients: “In your retirement years, what would be the reason for your income needs to suddenly skyrocket? ” “For Example: You are living well on $70, 000 per year. Suddenly, you need an additional $125, 000 per year in income on top of the $70, 000 you are already using. ” “What could cause this to happen? ” For use with financial professional only. Not for public distribution. is the marketing name for the companies of One. America | One. America. com 6

Concept of Self-Funding Aggressive Moderate $125 k Conservative For use with financial professional only. Not for public distribution. is the marketing name for the companies of One. America | One. America. com 7

Concept of One. America Care Solutions Base Policy Continuation of Benefits LIFE INSURANCE (ASSET CARE) OR RIDER ANNUITY (ANNUITY CARE) FUNDING: SINGLE PREMIUM RECURRING PREMIUMS NON-QUALIFIED ANNUITIES CASH VALUE LIFE INSURANCE For use with financial professional only. Not for public distribution. is the marketing name for the companies of One. America | One. America. com 8

Underwriting – Annuity Care Underwriting Process • No paramed exams • No medical records • A 15 -minute telephone interview is required if the Continuation of Benefits rider is being applied for • No phone interview is necessary when applying for the Base Policy only Additional Notes • Underwriting is based on Morbidity risk only (Mortality risk is not a concern) • Applicants are either approved or declined. There are no smoker/non-smoker or preferred/standard/substandard rating classes. • We can consider applicants that may not be eligible for Asset Care or other Life/LTC products due to medical history For use with financial professional only. Not for public distribution. is the marketing name for the companies of One. America | One. America. com 11

Annuity statistics billion years $2. 032 $95. 6 $108 51 billion trillion High-level overview For use with financial professionals only. Not for public distribution. = total assets of retirement Statista, 2017 Survey annuities https: //www. statista. com/statistics/188002/retirementannuities-total-assets-in-the-us-since-2000/ = 2017 variable annuity LIMRA Secure Retirement Institute, 2018 sales https: //www. financial-planning. com/news/limra-reports-q 42017 -annuity-sales-continued-decline Secure Retirement Institute, 2018 =LIMRA 2017 fixed annuity https: //www. financial-planning. com/news/limra-reports-q 42017 -annuity-sales-continued-decline sales = average purchase age of nonqualified annuities Annuity Purchasers Are Getting Younger, Rachel Summit, 2017 http: //www. annuityfyi. com/blog/2014/07/annuity-purchasers-aregetting-younger/ is the marketing name for the companies of One. America

Annuity marketplace Annuities are typically purchased for the following reasons: 1 2 3 Growth Guaranteed lifetime income Is your client’s nonqualified annuity where it should be? 4 Tax deferral Additional benefits to guard against catastrophic illness For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Annuity statistics High-level overview How many will pass away with an annuity? How many are utilizing their income riders? For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Annuities § 83% intend to use their annuity to avoid being a financial burden on their children. According to a Gallup poll of nonqualified annuity owners: § 73% intend to use their annuity as an emergency fund for catastrophic illness or nursing home care. For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Pension Protection Act (PPA) Effective Jan. 1, 2010 For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Common annuity features Mistaken for PPA benefit FIA income riders that double or triple for confinement Terminal illness waiver Nursing home waiver For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

The opportunity And ideal scenarios Any client with an existing annuity not earmarked for income and who currently has no care plan in place Clients 70 -85 with “old” annuities Clients who are not exposed to PPA benefits Clients holding annuities when income isn’t needed Clients with health issues For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Concept of Annuity-based LTC Annuity Care Aggressive Moderate Cash value LTC benefits $100 k Conservative $250 k Typical portfolio assets: Aggressive - Assets positioned for significant growth with the acceptance of the risk of loss of principal Moderate - Assets positioned for some growth with the acceptance of some downside risk Conservative - Assets positioned for conservation of principal, often with guarantees $400 k For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America Lifetime LTC (unlimited)

Hypothetical case study #1 Female, age 70. May have various health issues that could eliminate her from a life-based LTC plan $100 K in existing nonqualified annuity or cash fund No need for an income stream other than care Potential care need, protection and guarantees are priority Cash value growth is secondary to creating leverage for care For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Annuity Care II Specifications COB Rider is INCLUDED 36 -month rider 72 mo. OR Rider 72 -month rider Single: 24 month base Joint: 30 month base • • Ages: 40 -80 Deferred, fixed annuity Single: 24 months for LTC Joint: 30 months for LTC Cash premium/1035 exchange – LTC benefits are tax-free Tele-interview required because COB Rider is included Monthly internal charges taken to pay for rider For use with financial professionals only. Not for public distribution. OR 108 -month rider • • Ages: 40 -80 Non-cancelable premiums Optional inflation protection Additional 36 months up to age 80 Additional 72 months up to age 75 Additional 108 months up to age 70 Paid for with monthly internal charges from the base policy is the marketing name for the companies of One. America

Annuity Care II example Female, age 70 Fixed annuity Continuation of Benefits Rider $150, 000 OR $100, 000 36 months $250, 00 0 $300, 000 $4, 167 per month for LTC OR 72 months $400, 00 0 $450, 000 Monthly LTC charges 108 months For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America $550, 00 0

The FIRST and ONLY annuity with indexed fixed- PPA LTC benefits For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Indexed Annuity Care case study Female, age 81 Age, health issues or tax adversity from funding source has eliminated her from a life-based LTC plan $250 K in existing nonqualified annuity or cash fund No need for an income stream other than care Potential care need, safety and guarantees are priority. Cash value growth is also desired. Writing agent is familiar with fixed-indexed annuity structures For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Indexed Annuity Care - Basic Strategy (base only) Female, age 81, has $125 k in an existing NQ annuity with a 3% interest rate Fixed indexed annuity $250, 000 single premium (1035 exchange) $250, 000 $125, 000 per year for 2 years ($10, 416 per month for 24 months) For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Downside protection Step up for LTC For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Upside potential Step up for LTC For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Indexed Annuity Care Advantages of Basic Strategy Guaranteed increase multiplier “Step up” for LTC Ability to use her money in two years penalty-free No teleinterview Tax-free for LTC expenses $10, 416 per month for 24 months ($125, 000 per year for two years) For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Indexed Annuity Care - Leveraged Strategy (Base + Rider) Female, age 81, has $250 k in an existing NQ annuity with a 3% interest rate Fixed indexed annuity Continuation of Benefits Rider $250, 000 single premium (1035 exchange) $170, 760 $79, 240 $170, 760 LIFETIME $85, 380 per year for LIFETIME ($7, 115 per month for LIFETIME) She would have to earn 34% guaranteed for life in another annuity to get the equivalent annual benefit! For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Annuity-based LTC Underwriting 1 2 No paramedical exam No attending physician’s statements 3 Brief phone interview if rider is added 4 No tele-interview for base policy only For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

By the way 1035 Exchange Eligible person provides spousal coverage by 1035 exchanging an existing annuity in one spouse’s name Transfer annuity creates an opportunity to use partial 1035 exchange when transferring company will not do partial For use with financial professionals only. Not for public distribution. is the marketing name for the companies of One. America

Let’s Get Started! Illustrations, marketing materials, and product information For use with financial professional only. Not for public distribution. is the marketing name for the companies of One. America | One. America. com 33