Total Living Coverage® (TLC)
Performance with Assumption Changes
Stronger Guarantees. Better Protection.
Underwritten by Genworth Life Insurance Company, Richmond, VA
160447 05/06/14
For Producer/Agent Use Only. Not to be reproduced or shown to the public.
©2014 Genworth Financial, Inc. All rights reserved.
Linked Benefit Competitive Comparison
Assumes $100,000 Premium; Female 65; No Inflation; Return of Premium*
Company
State Life
Nationwide
Nationwide
Pacific Life
Pacific Life
Lincoln National
Lincoln National
Genworth
Genworth
Genworth
Genworth
LTC
Percent
Percent
Percent
Percent
Risk
Duration Specified TLC Pref LTC TLC Pref Monthly TLC Pref Residual TLC Pref
Class
Rider In Months Amount Greater Pool Greater Maximum Greater
DB
Greater Comments
Single PNN 2+2
50
147,061 24% 294,121 87%
5,882 30%
N/A
N/A No Nonf Benefit (adding cost an add'l 6% premium)
Single SNN 2+4
72
104,812 74% 314,436 74%
4,367 74%
20,962 -13% Indemnity Benefits
Couple SNN 2+4
72
110,328 76% 330,984 76%
4,597 76%
22,066 -12% Indemnity Benefits
Single SNN 2+4
72
127,909 43% 383,727 43%
5,330 43%
5,000 266% Commission Chargeback in Year 2
Couple SNN 2+4
72
133,214 46% 399,642 46%
5,551 46%
5,000 289% Commission Chargeback in Year 2
Single SNN 2+4
72
126,719 44% 380,157 44%
5,280 44%
6,336 189% Zero Policy Value at age 80; Commission Chrgbck Yr 2
Couple SNN 2+4
72
136,478 42% 409,434 42%
5,687 42%
6,824 185% Zero Policy Value at age 80; Commission Chrgbck Yr 2
Single PNN 2+4
72
182,896 0%
548,688 0%
7,621
0%
18,290
0% Informal Care Providers
Couple PNN 2+4
72
194,376 0%
583,128 0%
8,099
0%
19,438
0% Informal Care Providers
Single SNN 2+4
72
156,920 17% 470,760 17%
6,538 17%
15,692 17% Informal Care Providers
Couple SNN 2+4
72
165,711 17% 497,133 17%
6,905 17%
16,571 17% Informal Care Providers
For Total Living Coverage:
PNN means Preferred No Nicotine Use
SNN means Standard No Nicotine Use
*Lincoln National’s product is MoneyGuard II
The optional Return of Premium Rider (ROP) requires a higher initial premium and is available only when applying for TLC. Lifetime money
back guarantee applies after policy year two. Because TLC rider charges reduce cost basis (not below zero), it is possible for a portion of
the Return of Premium Rider benefits to be taxable.
TLC Performance w/ Assumption Changes
1
For Producer/Agent Use Only
Total Living Coverage® (TLC) vs. Competitor
Stronger Guarantees
.*
*
MoneyGuard is MoneyGuard® II from the Lincoln National Life Insurance Company.
On average, TLC’s worst case scenario is better than main competitor’s best offer!
*Genworth’s claims experience as of 06/30/13 combined for Genworth Life Insurance Company and, in New York, Genworth Life Insurance Company
of New York (Genworth). For reimbursement products only.
The comparison is based on research conducted by Genworth. To the best of our knowledge, the competitive information is current and believed to be
accurate as of 02/15/14. Genworth is not affiliated with the competitor used in the comparison.
TLC Performance w/ Assumption Changes
2
For Producer/Agent Use Only
TLC vs. MoneyGuard II
GMBR means Guaranteed
Minimum Benefit Rider.
More Premium Classes. Better Value.
Males
TLC Pref/Pref 20% Couple Discount TLC Pref/Pref 10% Couple Discount TLC Pref/Pref No Couple Discount TLC Std/Std 20% Couple Discount TLC Std/Std 10% Couple Discount TLC Std/Std No Couple Discount MG2 Cpl MG2 Sgl
Age
50
55
60
65
70
75
Specified
Amount
300,399
253,632
217,530
181,537
148,337
117,579
% vs.
MG
49%
46%
44%
40%
44%
N/A
GMBR*
Spec Amt
187,149
165,347
148,439
131,241
112,834
73,085
% vs.
MG
-7%
-5%
-2%
1%
10%
N/A
Specified
Amount
292,700
247,387
212,463
176,910
143,533
110,993
% vs.
MG
51%
48%
46%
46%
N/A
N/A
GMBR*
Spec Amt
182,503
161,231
144,781
127,581
107,317
63,507
% vs.
MG
-6%
-3%
0%
5%
N/A
N/A
Specified
Amount
285,497
241,537
207,690
172,527
138,968
104,958
% vs.
MG
47%
45%
43%
42%
N/A
N/A
GMBR*
Spec Amt
178,145
157,379
141,351
124,188
102,057
56,123
% vs.
MG
-8%
-6%
-3%
2%
N/A
N/A
Specified
Amount
249,821
214,320
186,276
157,605
130,619
100,830
% vs.
MG
24%
24%
23%
21%
27%
N/A
GMBR*
Spec Amt
180,291
159,272
143,037
125,853
104,646
59,588
% vs.
MG
-11%
-8%
-5%
-3%
2%
N/A
Specified
Amount
245,091
210,272
182,784
154,105
126,767
94,124
% vs.
MG
27%
26%
26%
27%
N/A
N/A
GMBR*
Spec Amt
176,069
155,541
139,720
122,582
98,505
53,033
% vs.
MG
-9%
-7%
-4%
1%
N/A
N/A
Specified
Amount
240,499
206,348
179,389
150,733
123,111
N/A
% vs.
MG
24%
24%
23%
24%
N/A
N/A
GMBR*
Spec Amt
172,096
152,039
136,602
119,546
90,057
N/A
% vs.
MG
-11%
-9%
-6%
-2%
N/A
N/A
Specified
Amount
201,888
173,156
150,854
129,728
102,762
N/A
Specified
Amount
193,704
166,600
145,375
121,391
N/A
N/A
Females
TLC Pref/Pref 20% Couple Discount TLC Pref/Pref 10% Couple Discount TLC Pref/Pref No Couple Discount TLC Std/Std 20% Couple Discount TLC Std/Std 10% Couple Discount TLC Std/Std No Couple Discount MG2 Cpl MG2 Sgl
Age
50
55
60
65
70
75
Specified
Amount
327,956
274,936
237,203
194,376
154,391
119,831
% vs.
MG
56%
51%
49%
42%
48%
N/A
GMBR*
Spec Amt
207,292
184,068
165,291
144,692
123,058
96,063
Color Key:
% vs.
MG
-2%
1%
4%
6%
18%
N/A
Specified
Amount
318,123
267,024
230,564
188,476
148,491
112,966
% vs.
MG
57%
52%
51%
49%
N/A
N/A
GMBR*
Spec Amt
201,197
178,642
160,486
139,976
118,006
85,946
34%
Specified
Amount
309,005
259,608
224,316
182,896
142,995
106,947
= TLC Superior to MG by at least 2.5%
= TLC Within 2.5% of MG (up or down)
= MG Superior to TLC by at least 2.5%
Current & Early Duration Guar Spec Amt & LTC
TLC / MG
TLC / MG
TLC / MG
M60 34% F60 37% T60 36%
M65 33% F65 35% T65 34%
Avg
% vs.
MG
-1%
2%
5%
10%
N/A
N/A
36%
35%
TLC Performance w/ Assumption Changes
% vs.
MG
53%
48%
47%
44%
N/A
N/A
GMBR*
Spec Amt
195,523
173,600
156,009
135,640
112,660
76,829
% vs.
MG
-3%
-1%
2%
7%
N/A
N/A
Specified
Amount
273,101
231,460
200,361
165,711
133,949
105,325
GMBR*
Spec Amt
198,310
176,075
158,207
137,762
115,327
81,184
% vs.
MG
-6%
-4%
-1%
1%
11%
N/A
Specified
Amount
266,845
226,154
195,772
161,205
129,452
100,165
% vs.
MG
32%
29%
28%
27%
N/A
N/A
GMBR*
Spec Amt
192,829
171,208
153,887
133,602
110,076
72,868
% vs.
MG
-5%
-3%
1%
5%
N/A
N/A
Specified
Amount
260,811
221,019
191,322
156,920
125,300
92,915
% vs.
MG
29%
26%
25%
24%
N/A
N/A
GMBR*
Spec Amt
187,714
166,672
149,863
129,766
105,310
65,982
% vs.
MG
-7%
-5%
-2%
2%
N/A
N/A
Specified
Amount
210,873
182,664
159,652
136,478
103,981
N/A
Specified
Amount
202,491
175,838
152,971
126,719
N/A
N/A
*Note: Under worst case assumptions (policy moving to guaranteed interest, mortality, and morbidity on day 1 of the policy and staying there), the
average attained age that the GMBR would first come into play is attained age 86 (95% of our LTCI claims are prior to age 89 as of 12/31/2010).
If any of the guaranteed elements come into play at a later date, the GMBR would come into play at a later age if at all.
Guaranteed (GMBR) Late Duration Spec Amt & LTC
GMBR
GMBR
GMBR
M60 -3% F60
1%
T60
-1%
M65 1%
F65
5%
T65
3%
Avg
% vs.
MG
30%
27%
25%
21%
29%
N/A
-1%
3%
1%
3
Avg Leverage 60 & 65
TLC12
MG2
5.8 Female 4.3
5.4 Male 4.1
5.7
Total
4.2
For Producer/Agent Use Only
More Pool $ 144,000
More DB $ 48,000
Mon Max $ 2,000
TLC Performance & Value
Future TLC Assumptions Changes
Below examples show the impact of TLC assumption changes to moving interest crediting rates, life Cost
of Insurance (COI) charges, or LTC COI charges as early as possible and staying there for the life of the
policy and showing the result in the timing of when Guaranteed Minimum Benefit Rider (GMBR) values
would come into play. For example a LTC Only increase assumes the LTC COI charges move 100%
toward the guaranteed assumptions as soon as possible and remain there for the life of the policy and all
other elements remain as originally illustrated. Remember: We will waive all charges for a client on LTC
claim and will never drop someone to GMBR values while on claim.
No Change
LTC Only
Interest Only
Female 60 Pref Couple
Never
Age 98
Age 95
Age 90
Age 85
Female 60 Std Single
Never
Age 95
Age 92
Age 95
Age 87
Male 60 Pref Couple
Never
Age 98
Age 94
Age 87
Age 83
Male 60 Std Single
Never
Age 95
Age 91
Age 92
Age 85
Female 65 Pref Couple
Never
Age 99
Age 96
Age 92
Age 88
Female 65 Std Single
Never
Age 96
Age 94
Age 98
Age 90
Male 65 Pref Couple
Never
Age 95
Age 99
Age 89
Age 86
Male 65 Std Single
Never
Age 95
Age 92
Age 94
Age 87
TLC Performance w/ Assumption Changes
4
Life Only
For Producer/Agent Use Only
All Charges
TLC Performance & Value
Future TLC Assumptions Changes
Below examples show the impact of TLC assumption changes to interest crediting rates, life Cost of
Insurance (COI) charges, and LTC COI charges that would result in the timing of when Guaranteed
Minimum Benefit Rider (GMBR) values would come into play. For example a 25% increase assumes the
interest crediting rates, life COI charges and LTC COI charges all move 25% toward the guaranteed
assumptions as soon as possible and remain there for the life of the policy. Remember: We will waive all
charges for a client on LTC claim and will never drop someone to GMBR values while on claim.
No Change
25% Incr
50% Incr
75% Incr
Female 60 Pref Couple
Never
Age 95
Age 91
Age 88
Age 85
Female 60 Std Single
Never
Age 95
Age 92
Age 89
Age 87
Male 60 Pref Couple
Never
Age 93
Age 88
Age 85
Age 83
Male 60 Std Single
Never
Age 93
Age 89
Age 87
Age 85
Female 65 Pref Couple
Never
Age 96
Age 92
Age 90
Age 88
Female 65 Std Single
Never
Age 97
Age 94
Age 91
Age 90
Male 65 Pref Couple
Never
Age 94
Age 90
Age 87
Age 86
Male 65 Std Single
Never
Age 95
Age 91
Age 89
Age 87
TLC Performance w/ Assumption Changes
5
For Producer/Agent Use Only
100% Guar
TLC Historical Performance*
TLC’s Historical Interest Crediting Rates:
New
Product
Old Product
Effective
Date of Rate
3/13/2006
10/08/2007
4/21/2008
6/30/2008
8/03/2009
10/26/2009
1/4/2011
3/26/2012
9/4/2012
4/22/2013
9/16/2013
10/28/2013
Initial Renewal Renewal Renewal Renewal Renewal Renewal Renewal Renewal
Rate Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
4.00%
4.50%
4.20%
4.80%
4.50%
4.25%
4.00%
3.50%
3.25%
3.00%
3.25%
3.85%
4.00%
4.50%
4.20%
4.80%
4.50%
4.25%
4.00%
3.50%
3.25%
3.00%
4.00%
4.50%
4.20%
4.80%
4.50%
4.25%
4.00%
3.50%
4.00%
4.50%
4.20%
4.80%
4.50%
4.25%
4.00%
4.00%
4.50%
4.20%
4.80%
4.50%
4.25%
4.00%
4.50%
4.20%
4.80%
4.00%
4.50%
4.20%
4.00%
TLC’s Historical Life Cost Of Insurance Charges:
There Have Been No Increases in Life Cost of Insurance on Any TLC In Force Policy.
TLC’s Historical LTC Cost Of Insurance Charges:
There Have Been No Increases in LTC Rider Cost of Insurance on Any TLC In Force Policy.
* Historical crediting rates are not indicative of future crediting rates
TLC Performance w/ Assumption Changes
6
For Producer/Agent Use Only
4.00%
In Summary
• TLC Offers Upside Potential Versus Competitors with Limited Downside
Reduction to Guaranteed Benefit Levels
• Competitors Drop to Guaranteed Levels on Day 1 of Their Policies with
No Opportunity to Get Upside
• On Average, TLC’s Guaranteed Minimum Benefit Values Cannot be
Triggered Prior to Attained Age 86
• 95% of Genworth’s LTC Clients Go on Claim on or Before Age 89
• Historically, Genworth Has Never Lowered Interest Rates on an In
Force TLC Policy
• Historically, Genworth Has Never Raised Life or LTC Rider Charges on
an In Force TLC Policy
TLC Performance w/ Assumption Changes
7
For Producer/Agent Use Only
Important Information
Total Living Coverage® is underwritten by Genworth Life Insurance Company, Richmond, VA.
In all states excluding CA, CT, FL, HI and NY, Total Living Coverage universal life insurance with long term care benefits is subject to state
availability and the terms, issue limitations and conditions of Policy Form No. ICC12-GL5000 and Rider Form Nos. ICC12-GL500R,
ICC12-GL501R, ICC12-GL502R, and ICC12-GL503R or Policy Form No. GL5000 0212 et al. and Rider Form Nos. GL500R 0212 et al.,
GL501R 0212 et al., GL502R 0212 et al., and GL503R 0212 et al.
Lincoln MoneyGuard® II is issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN880/ICC13LN880
with Long Term Care Acceleration of Benefits Rider (LABR) on Rider Form ICC13LR881, Long Term Care Extension of Benefits Rider
(LEBR) on Rider Form ICC13LR882, and Return of Premium Rider on Rider Form ICC13LN880.
MoneyGuard® is a registered service mark of The Lincoln National Life Insurance Company.
Refer to the policy for definitions and more details regarding coverage and its features. This presentation provides a summary of coverage.
Policy terms and provisions will prevail.
All guarantees are based on the claims-paying ability of the issuing insurance company.
TLC Performance w/ Assumption Changes
8
For Producer/Agent Use Only
Important Information
Covered long term care expenses may be paid for a longer or shorter period than the ABR and EBR periods. Expenses may
be paid for a longer period if the actual expenses paid are less than the Maximum Monthly LTC Benefit. Expenses may be paid
for a shorter period because some services – supportive equipment, caregiver training and bed reservation – do not count toward
the Maximum Monthly LTC Benefit.
The death benefit payable is received income tax-free by the beneficiary under subsection 101(a)(1) of the Internal Revenue Code
unless the owner transfers it for value as provided in subsection 101(a)(2). Payments for covered care are not considered taxable
income as provided in subsection 104(a)(3) of the Internal Revenue Code.
©2014 Genworth Financial, Inc. All rights reserved.
TLC Performance w/ Assumption Changes
9
For Producer/Agent Use Only
Important Information
This policy is a Modified Endowment Contract (MEC) unless it is issued in exchange for a life insurance contract entered
into before June 21, 1988. Partial withdrawals and policy loans taken from a MEC are taxable under federal income tax law
to the extent that there is any gain in the policy. An additional penalty tax of 10% of the taxable amount may be payable unless the
owner is at least age 59½ or satisfies another exemption from payment of the additional tax.
LTC benefit payments made under the terms of a contract federally tax-qualified under section 7702B(b) are not subject to
federal income tax. These benefit payments must be reported to the IRS on Form 1099-LTC. Monthly charges for the LTC
coverage are considered to be withdrawals and reportable on Form 1099 to the extent that there is any gain in the contract
in excess of the owner’s income-tax basis.
If this policy is exchanged for a contract entered into before June 21, 1988, partial withdrawals are taxable to the extent that
there is any gain in the policy above the owner’s income-tax basis (usually premiums paid). Policy loans are taxable upon
lapse or surrender of the policy to the extent that there is any gain in the policy. The additional tax that could be payable with
respect to MEC’s does not apply.
The company has provided this information to help producers understand the ideas discussed. Any
examples are hypothetical and are used only to help producers understand the concepts of the policy.
What the company says about legal or tax matters is its understanding of current law, but the company
is not offering legal or tax advice. Tax laws and IRS administrative positions may change. This material
is not intended to be used by any taxpayer to avoid any IRS penalty. Your clients should consult
independent tax and legal professionals for advice based on their particular circumstances.
TLC Performance w/ Assumption Changes
10
For Producer/Agent Use Only