A Revolutionary A Revolutionary

Approach to Approach to

Long-Term CareLong-Term Care

AC-SEM-04 (FL) 1

Underwritten byUnderwritten byGuaranty Income LifeGuaranty Income LifeInsurance CompanyInsurance Company

Baton Rouge, LABaton Rouge, LA

The AnnuiCareThe AnnuiCare®® rider rider

is a unique approachis a unique approachto Long-Term Care,to Long-Term Care,

offered exclusively by offered exclusively by Guaranty IncomeGuaranty Income

Life Insurance CompanyLife Insurance Company

Home Office Baton Rouge, Louisiana.

Policy Form Nos. LTC-2 (FL 2/03) and LTC-3 (FL 2/03).

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What is AnnuiCare®?

It is a tax-deferred annuity that provides up to triple the annuity value for qualified LTC

It is a tax qualified long-term care insurance rider

It is a tax deferred annuity with a tax qualified long-term care benefitAC-SEM-04 (FL) 3

Why did Guaranty Income Life Why did Guaranty Income Life create an Annuitycreate an Annuity

with long term care benefits?with long term care benefits? Because the majority of people self-insure. Because the majority of people self-insure.

Traditional Long Term Care Insurance is expensive and may be difficult to qualify for medically.Traditional Long Term Care Insurance is expensive and may be difficult to qualify for medically.

People may be reluctant to purchase something they may never use.People may be reluctant to purchase something they may never use.

AC-SEM-04 (FL) 4

$50,000 $50,000 PremiumPremium

Moving Assets Can Make Your Money Work Better!(Free Up More Assets)

Moving Assets Can Make Your Money Work Better!(Free Up More Assets)

$150,000$150,000““Financial Financial Safety Net”Safety Net”

$100,000 $100,000 LTC BenefitLTC Benefit

The cost of long-term care insurance is deducted from the annuity value.

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Moving Assets Can Make Your Money Work Better!(Free Up More Assets)

Moving Assets Can Make Your Money Work Better!(Free Up More Assets)

$150,000$150,000Total available Total available for Your Usefor Your Use

Moving $50,000 into AnnuiCare® can provide a benefit

up to $150,000 for long-term care expenses.

$100,000 $100,000 LTC BenefitLTC Benefit

$50,000 $50,000 PremiumPremium

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$73,000

$146,000LTC Benefit+

Kate Jones (Female 65)Kate Jones (Female 65)AnnuiCareAnnuiCare®® at Issue at Issue

ONON OFFOFF %% XX

99 ÷÷77 88

73000 ÷ 730 =

$219,000 Total Benefit $219,000 Total Benefit

= $146,000LTC Benefit

$73,000

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730 Days

=

2 years

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$73,000

$146,000LTC Benefit+

$219,000 Total Benefit $219,000 Total Benefit

= $146,000LTC Benefit

$73,000

Kate Jones (Female 65)Kate Jones (Female 65)AnnuiCareAnnuiCare®® at Issue at Issue

ONON OFFOFF %% XX

99 ÷÷77 88

73000 ÷ 730 =

$100(Daily Benefit)

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ONON OFFOFF %% XX

99 ÷÷77 88

2,190 days (6 years)(Minimum Benefit Period)219000 ÷ 100 =

Kate Jones (Female 65)Kate Jones (Female 65)AnnuiCareAnnuiCare®® at Issue at Issue

$100(Daily Benefit)

$73,000

$146,000LTC Benefit+

$219,000 Total Benefit $219,000 Total Benefit

= $146,000LTC Benefit

$73,000

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ONON OFFOFF %% XX

99 ÷÷77 88

2,190 days (6 years)(Minimum Benefit Period)

*Assumed Interest Rate 5.00%

325196 ÷ 148.49 =

Kate Jones Kate Jones AnnuiCareAnnuiCare®® at Age 75 at Age 75

$148.49(Daily Benefit)

$108,399

$216,797LTC Benefit+

$325,196 Total Benefit $325,196 Total Benefit

$216,797LTC Benefit=

$108,399

AC-SEM-04 (FL) 11

ONON OFFOFF %% XX

99 ÷÷77 88

2,190 days (6 years)(Minimum Benefit Period)

*Assumed Interest Rate 5.00%

396117 ÷ 180.88 =

Kate Jones Kate Jones AnnuiCareAnnuiCare®® at Age 80 at Age 80

$132,039

$264,078LTC Benefit+

$264,078LTC Benefit

$132,039 Cash

$396,117 Total Benefit $396,117 Total Benefit

=

$180.88(Daily Benefit)

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AnnuiCareAnnuiCare®®

What Does It Pay?What Does It Pay?AnnuiCareAnnuiCare®® will pay Long-Term Care will pay Long-Term Care

expenses up to 100% of the daily maximum benefit for:expenses up to 100% of the daily maximum benefit for:

Home Health CareHome Health Care Homemaker ServicesHomemaker Services Hospice ServicesHospice Services Maintenance or Personal Care ServicesMaintenance or Personal Care Services Respite CareRespite Care Assisted Living Facilities CareAssisted Living Facilities Care Alzheimer’s CareAlzheimer’s Care Nursing Home CareNursing Home Care

… … and up to 50% of daily maximum benefit for:and up to 50% of daily maximum benefit for: Adult Day CareAdult Day Care

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AnnuiCareAnnuiCare®® has exclusions and limitations. For costs and complete details of the coverage call or write has exclusions and limitations. For costs and complete details of the coverage call or write your insurance agent or company.your insurance agent or company.

AnnuiCareAnnuiCare®®

Accessing Your BenefitsAccessing Your Benefits

Requiring substantial supervision to protect the Requiring substantial supervision to protect the individual due to a severe cognitive impairment.individual due to a severe cognitive impairment.

oror

To qualify for benefits, the insured must be chronically ill To qualify for benefits, the insured must be chronically ill as certified by a licensed healthcare practitioner as:as certified by a licensed healthcare practitioner as:

Being unable to perform at least two out of six Being unable to perform at least two out of six activities of daily livingactivities of daily living

• • BathingBathing • • EatingEating• • ContinenceContinence • • ToiletingToileting• • DressingDressing • • TransferringTransferring

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AnnuiCareAnnuiCare®® SuitabilitySuitability

• Financial - Where is the money coming from? Can you afford the coverage?

• Medical – What is your past medical history? What medications are you currently taking?

• Market: 60 to 85 years of age with $100,000 of liquid net worth

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AnnuiCareAnnuiCare®® UnderwritingUnderwriting

No Medical ExamsNo Medical Exams

No Medical Records OrderedNo Medical Records Ordered

No Lab Work OrderedNo Lab Work Ordered

No Substandard RatingsNo Substandard Ratings

Quick Response - Usually 72 HoursQuick Response - Usually 72 Hours

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Up to age 75—Telephone Interview by Registered NurseUp to age 75—Telephone Interview by Registered Nurse

Age 75 plus —Face to Face InterviewAge 75 plus —Face to Face Interview

AnnuiCareAnnuiCare®® UnderwritingUnderwriting

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AnnuiCareAnnuiCare®® at a Glanceat a Glance Minimum Amount — $36,500 — Non-qualifiedMinimum Amount — $36,500 — Non-qualified

$50,000 — Qualified$50,000 — Qualified Maximum Amount — $300,000Maximum Amount — $300,000 Maximum Issue Age — 85Maximum Issue Age — 85 Guaranteed Interest Rate — 3%Guaranteed Interest Rate — 3% Liquidity Feature — Interest earnings in excess of the long-term Liquidity Feature — Interest earnings in excess of the long-term

care premium deductions can be withdrawn without penalty. care premium deductions can be withdrawn without penalty. Any Any

withdrawals will reduce long-term care benefits.withdrawals will reduce long-term care benefits. Death Benefit — Greater of annuity surrender value or return of Death Benefit — Greater of annuity surrender value or return of

annuity premium paid less any previous withdrawals and annuity premium paid less any previous withdrawals and

deductions.deductions. Withdrawal Charges:Withdrawal Charges:

Policy Year 1 2 3 4 5 6 7 8 9 10 11+

Withdrawal Charge

10% 9% 8% 7% 6% 6% 5% 4% 3% 2% 0%

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A Revolutionary A Revolutionary

Approach to Approach to

Long-Term CareLong-Term Care

AC-SEM-04 (FL) 19

Underwritten byUnderwritten byGuaranty Income LifeGuaranty Income LifeInsurance CompanyInsurance Company

Baton Rouge, LABaton Rouge, LA