48684 09/18/13

1 Genworth 2011 Financial Reality Check Study

For Producer/Broker Use Only. Not To Be Reproduced Or Shown To The Public.

Talking to your clients about long

term care needs and options

helps them have constructive

conversations with their loved ones.

These conversations may help

your clients evaluate how a loved one’s long term care needs might

impact their own financial security.

Often people don’t think about long term care until something

happens to a loved one. Yet delaying conversations about topics

like aging, health and money until a crisis hits can put your client at

a disadvantage. Being short on time when emotions are running

high may lead to spur of the moment, uninformed decisions.

By having open and honest conversations in advance, your clients

will know what matters most to those that they care about, and

they’ll be able to make decisions more confidently and comfortably

later.

Let’s Talk helps pave the way for these family discussions. In this guide you’ll learn how to use the material.

50% of people think they

will need to help care for

an adult family member or

friend in the next 5 years.

The time is right for your clients to start thinking about long term care. You can help.

Let’s Talk

Producer Guide I Long Term Care

•What clients want from you

•Why they don’t talk about long term care

•Clients’ top reasons for planning

•Why your timing is important

•How to use the tabloid with your clients

INSIDE

75% have not had

a conversation about

long term care planning

in the last 12 months.1

Become the trusted resourceLet’s Talk was developed to help clients consider and discuss long term care —

for their loved ones and for themselves — and their funding options. It also can help

you start conversations with clients and work with them to put plans in place to

help secure their financial futures.

9 out of 10 people want personal contact with their financial professional at least once per year:

•50% say that a policy review is a valuable form

of communication with their financial professional.

•42% say that email updates are valuable.3

85% of people say

that it is important that

a financial professional

gets to know them, and

understands their needs,

values and goals.4

Most people are looking

to you to help them

understand options.

By asking questions and

listening — really listening

— you can offer solutions

based on their needs and

preferences.

3 Genworth 2011 Financial Reality Check Study 4 2010 Genworth Consumer Segmentation

Dealing with conversation avoidance

Why aren’t more people having the conversations

ahead of time and how can you help them?

Ask them how they would be affected if a loved one needed

care — would they need to help with time or money? Help them get

comfortable with long term care planning by listening to them and

asking questions. Once they have faced, considered and addressed

these issues, they will be more confident raising them with the

important people in their lives.

Tip:

46% do not know how to start the conversation5

Help them start the conversation by helping them think through

long term care and the options for funding it. Present options and provide

educational material that is easy to understand. Use examples, stories and

questions to help them. Give clients the Let’s Talk consumer tabloid, point

them to a specific section or ask them to read it to help them get started.

Tip:

73% of people

would not know what

to do if they received

a call today regarding

a family member who

required immediate long

term care assistance.6

genworth.com/lets-talk 3

59% of people are uncomfortable raising the topic of long term care with their family5

5 Genworth/Age Wave, Our Family, Our Future, November 20106 Genworth 2011 Financial Reality Check Study

Confusion People say that it is difficult to understand the costs and what is paid by Medicare, Medicaid and long term care insurance

Help your clients understand their options. Clearly outline what long term

care insurance covers compared to Medicare and Medicaid. Use the annual

Genworth Cost of Care map (genworth.com/cocpro) to help them understand

the costs associated with long term care.

DenialPeople believe that they will not need long term care

Put it in the context of protecting their hard earned retirement savings or

money that they would like to leave for their family or charities. Unpredictable

health care expenses are the biggest concern for draining and running out of

money in retirement.

Share with them that at least 70% of people over 65 will need some form of long term

care.7

Mistrust They are concerned that they will not be able to rely on a long term care insurance company when they need it

Share with your clients Genworth’s history of paying claims along with industry history.

Genworth has paid $9.1 billion* in long term care claims since 1974. We insure over

1 million people and are #1 in policies in force and the number of policyholders.8

DiscomfortIt is too unpleasant to think about becoming ill and needing long term care

Ask them questions and gently remind them that avoiding the topic will not make

the potential need go away. Likewise, remind them that discussing it will not make

it happen either. In fact, it can provide them with more control of their care in the

future. Help them focus on the fact that discussing long term care and preparing for

it will mean that they can cross it off their list and move on to topics they would prefer

to think about. Remind them that putting plans in place now may give them and their

loved ones more options later.

The top reasons for not purchasing long term care insurance

Tip:

Tip:

Tip:

Tip:

For Producer/Broker Use Only. Not To Be Reproduced Or Shown To The Public.

7 Medicare & You, National Medicare Handbook. Centers for Medicare and Medicaid Services, Revised November 20128 2012 LIMRA Individual Long Term Care Report

*Represents combined data for Genworth Life Insurance Company and its affiliates as of 12/31/12

9 Genworth/Age Wave, Our Family, Our Future, November 2010 10 Genworth, Beyond Dollars, 2013

Top 3 reasons that people will plan for long term care

They do not want to be a burden on their families Help your clients put plans in place to fund care, should they

need it, so that they do not have to rely on loved ones for

support. By developing such plans they can also make their

preferences for care known.

Want to be able to afford quality care in the setting they chose Help your clients see long term care insurance as a way to have a

say in where and how they receive long term care if they need it.

To protect their spouse’s / loved one’s quality of life and future security Help your clients understand how their partner or their family

would be affected — financially, emotionally and physically if they

have to provide care for a loved one. Share with them educational

material such as Beyond Dollars, which outlines the impact on

caregivers.

People are 5x more concerned about being

a burden on their loved ones than dying.9

49% of primary caregivers reported

lost income — an average decrease of 40%

in household income.10

1

2

3

Steve’s storySteve, a general agent, helped

his client Barbara purchase a

long term care insurance policy.

He was a fairly new agent at that

point. Eight months later, Barbara

called him and said that her sister

needed to get long term care

insurance. She shared that her

sister had experienced a stroke.

Steve caringly told her that since

she had a stroke that she would

not qualify for long term care

insurance.

Barbara was upset and shared

with Steve that she should have

secured insurance for her sister

when she was healthy. At that

moment Steve stopped her and

said, “No, I should have asked you

if you knew anyone else that would

benefit from learning what you

had just learned about long term

care insurance.”

As a result, Steve always

encourages his clients to have

conversations about long term

care with loved ones. He also

shares his story with clients

so that they understand the

importance of preparing now.

genworth.com/lets-talk 5

Pages 4-5 Point clients to the things that they should know about loved ones with regards to long term care preferences and perspectives.

Pages 6-7 Share 3 key steps to becoming a better listener and some of the insights they may gain from listening differently.

Walk clients through the Let’s Talk tabloid

Direct your clients to the information that is most relevant for them. This quick view outlines what you’ll find in the Let’s Talk tabloid.

Listen & Learn

When you have these conversations,

start by asking questions. And then

listen. Really listen. This will help

get the conversation going and,

even more important, it will let you

know what your parent — or other

loved one — is thinking, which may

be very different from what you are

thinking. You might be focused on

legal documents, while your mother

is wondering who will care for her

dogs in a crisis. Listening is valuable

because you now know what matters

to her, and once you’ve listened and

addressed her concerns, she may be

more willing to listen to you.

Open your heart

and your mind.

Most likely, you will

learn something new.

1. Ask questions.Then pause. Give them time to respond. Make sure they

have finished before you begin talking. True understanding

comes from being still long enough to absorb the meaning

and intent behind what people tell you.

What are their fondest memories? Biggest regrets? What

do they want/dread as they grow older? What are their

hopes and fears and goals? What matters most to them

now? If you have a specific issue to address, learn what

they think before you begin expressing your thoughts.

2. Wait.That might mean counting silently to five, but it also might

mean letting them think on it and then continuing the

conversation several days later. These are big issues;

give them time.

3. Be open.You might not know this person or this situation as well

as you think you do. We don’t know what it is to be our

parents’ ages or to walk in their shoes. We sometimes slip

into prescribed roles within our families. Occasionally,

our notions of the role a loved one plays cloud our

vision of who they actually are, what they think and more

importantly, how they feel. Plus, with time, their needs

and wishes may have changed. Evolve with them.

Things you can do today to become a better listener.

3

genworth.com/lets-talk 7

My father talks to me or my wife,

Tracy, on the phone at least once a

week, and he has dinner at our house

most weekends. It never occurred

to me that we needed to talk about

anything because we talk so often

already. But one night my uncle was

talking about their grandfather, who

lived with them for many years, and

he was saying what a pill he was.

My father said something offhanded

about how he would never live with

his kids. Tracy and I were baffled.

We always assumed he would live

with us if it came to that.

At first, I didn’t think he meant it.

But I brought it up a few days later

and he said flat out, no, he would

never live with any of his kids. We’ve

talked about it since, and it’s been

eye-opening. We discussed where

he might live — he doesn’t like the

idea of being alone with an aide so

we’ve considered other options,

including assisted living. I’m still

hoping he’ll change his mind and

decide he could live with us, but I

don’t sense that’s going to happen.

Regardless, it’s been an interesting

process. I’ve learned a lot about him.

- Ben, age 49

“

”

Ironically, the most important

part of talking is listening.

Pages 2-3 Stress the importance of having constructive conversations about aging, health and money — especially before a long term care need arises.

Genworth helps millions of people achieve their dreams of financial independence, a comfortable retirement and protection for their loved ones.

For more information visit our Web site:genworth.com/lets-talk

The names used in some scenarios are fictitious.

© 2011 Genworth, Inc. All rights reserved.Genworth, Genworth Financial and the Genworth logo are registered service marks of Genworth Financial, Inc.

Insurance and Annuity Products: • Are not deposits. • Are not guaranteed by any bank or its affiliates. • May decrease in value. • Are not insured by the FDIC or any other federal government agency.

Ask. Talk. Listen.Repeat.

Get connected. Stay connected.

Conversations that make a difference

Let’s Talk

Back Remind clients that having these conversations with loved ones can lead to a greater understanding of each other’s preferences for long term care needs. And having this conversation with you can help them put strategies in place to help ensure their financial futures.

Pages 8-9 Offer clients specific ideas to help break the ice with loved ones.

Pages 10-11 Highlight tips that can help your clients have effective conversations with family members — whether it is a good relationship or a contentious one.

Family DynamicsSometimes families aren’t close, and even the closest ones may

have issues.

Unfortunately, old hurts and angers amongst siblings and other

family members do not miraculously disappear as your parents

age. In fact, they might, and oftentimes do, get worse. So it’s critical

that you plan ahead because you don’t want to be arguing with

your siblings when your parents most need your help.

If you’ve never gotten along as a family, or if you have long-standing

resentment toward your parents, this is going to be particularly

difficult. But it’s that much more important that you find the courage

to talk and plan. Having conversations now can mean fewer battles,

resentments and regrets later. Who knows? It might even alleviate

some of the family tension.

» The more difficult the relationship, the more business-

like you may need to be about this. Consider writing an

agenda and establishing some ground rules in advance

(for example, each person gets five minutes to speak,

or certain topics are not to be discussed). It can help to

have a formal family meeting and, if necessary, include

a mediator — a family therapist, geriatric case worker,

or financial advisor.

» Avoid hot topics. This is not the time to revisit old

issues. Focus on the topics at hand (where will he

live, how will he pay for care, etc.). If the conversation

veers into troubled water, gently steer it back on track.

» Use e-mail to sort things out. Sometimes face-to-face

isn’t the best approach. If you don’t get along, e-mail

will allow you time to think before you type, and time

to edit before you hit “send.” It will also allow people

on the receiving end to process information and gather

their thoughts, making a subsequent conversation

less reactive.

» Even though you’re all grown up, old patterns and

labels from your childhood may linger. A distant brother

might not want to hear about your talks with Mom.

A bossy older sister might continue to control the

conversation. But people do change. A sibling who

may have been too immature to contribute in the

past, may be the most capable of shouldering

responsibility as an adult.

» If one parent is already ill, your healthy parent is

probably the main caregiver. Often, it is this person

whose health fails, leaving the family stranded.

It’s vital to talk. Support the primary caregiver, and

have another option in case something happens

to her or him.

» If you know in advance that you are going to be the

primary caregiver or will be expected to offer financial

help, talk to your siblings about how this might play out.

Remember to also discuss what you expect from them.

» Talk about your feelings using “I” messages and

speaking from personal experience. Avoid “you”

sentences that might suggest blame or come across

as criticisms. This can make people defensive

and angry.

» Geography often dictates who will end up being the

main caregiver. If you live closest to your parents, but

don’t get along with them or don’t have time to give,

talk with your siblings about this now.

genworth.com/lets-talk 11

Pages 12-13 Emphasize important facts that will dispel common misconceptions and share proven “do” and “don’t” tips.

Pages 14-15 Encourage clients to consider the experience and lessons learned from real people like themselves.

Tips & Insights

Cover all the practical topics, but don’t get so focused on a checklist that you lose sight of

what this is really about. It’s not a business deal. It’s someone’s life. Be gentle. Be compassionate.

It’s OK to laugh and you may very well cry. These are not the easiest conversations, but they

will be some of the most important ones you will ever have. You’ll be glad you took the time,

and so will they.

Designed to help your talks go more smoothly

genworth.com/lets-talk 13

Even an hour spent talking today can help you avoid

years of unraveling hasty, ill-founded decisions later on.

Being prepared may mean less work, less stress, less

worry and fewer regrets later.

Talk in person.Technology has revolutionized communication, but if at all

possible, have this conversation face-to-face. If you don’t live

in the same town, carve out some time around the next family

get-together so you can talk. If your only option is the phone,

be sure to pick a time when you’re not likely to be interrupted

or cut short.

Make it about them. Remember, this is not about you, or your needs, opinions

or hopes for their future. It is about them. Keep it focused

on their lives and their wishes.

Have a sense of humor. This doesn’t have to be all business. And it doesn’t have to

be dreary. Relax. Smile. Be reassuring. And don’t be afraid

to laugh. Humor is a great ice-breaker.

Listen, really listen. We’ve said this, but it bears repeating. Ask questions, listen

and don’t assume you know what someone wants or what

is right for them.

Let the conversation go where it will. While you have a purpose, allow this conversation to meander

in other directions. Your parent or loved one might have

things to discuss that are not on your list. You might discover

things and go places that you never expected. Try to relax

and enjoy this part of the journey.

Don’t arrive bearing piles of statistics and forms. You will immediately overwhelm everyone involved. It’s great to

be informed and prepared, but don’t inundate them and don’t

be overbearing. Remember, the first step is to hear from them.

Don’t make plans and decisions ahead of time. It’s tempting to talk with other family members, figure

everything out and then present your plan as the solution.

While you have good intentions, this will make your loved

ones feel that their wishes and needs weren’t considered.

They would be right.

Don’t do this when you are tired or emotions are heated. It’s best to talk when everyone is calm and rested. If things

start to break down or tempers flare, call it a day. Let them

know it’s OK and that you can sort things out at another time.

Don’t drift into old hurts and habits. Easier said than done, but try to steer clear of old, destructive

ways of thinking. Take a deep breath. When things revert to

that old place, don’t take the bait. Instead, change topics or

try a new approach.

Don’t treat them like children. If your loved ones are older and a bit frail, confused or dependent,

you might find yourself treating them as children. Resist this

temptation. We all deserve respect, no matter what our age

or health may be.

Do Don’t

Health insurance covers virtually none of the long term care costs

of nursing homes, assisted-living facilities or in-home care — the

care many people may require late in life. Most people pay out of

pocket. Medicare wasn’t designed to adequately cover long term

care costs. And Medicaid (public health insurance for low-income

people) may require a person “spend down” assets before kicking

in. Given that a private room in a nursing home can cost nearly

$80,000 per year,1 many people who thought they had saved

adequately end up spending down their savings and limiting their

care options. It’s critical that you discuss how the cost of this care

will be covered.

Many of the best care facilities have waiting lists, and some of

them require that your loved one be able to live independently

in order to move in. Do some research and learn the options early.

Without a durable power of attorney you may have to go to court

to gain guardianship over your loved one if he or she becomes

incompetent. Guardianship is necessary so you can handle your

parent’s affairs. Going to court can be expensive, time-consuming

and stressful. Consult an attorney for advice specific to your situation.

Sometimes it is not the big health problems that ruin the golden

years, but the smaller annoyances, like the inability to pursue a

loved hobby, difficulty hearing or a fear of falling. When you talk,

try to get at these less obvious issues too, as many of them can

be resolved.

Facts to Consider

It’s strange, but true. People may dread these conversations

and often dodge them. But once the silence is broken, the door

is open—presenting an opportunity to move forward together.

Addressing tough topics frees you up to enjoy the time ahead.

And often, a new bond is forged.

Talking about worst-case scenarios

can be freeing.

While it’s tempting to think only of “more pleasant things,”

this is not a luxury we can afford. We all age and most people

end up needing help in some shape or form. These are

simple facts of life. Talking won’t make it happen sooner. But

being prepared will make those tough times bearable.

Talking about worst-case scenarios

won’t make them happen.

People value their independence over comfort.

Did you know:

» Only 8% of people would

turn to family for financial

support in retirement?2

» Only 11% say they would

move in with family to

ensure a comfortable

retirement?2

People are over five times more worried about being a burden on their family than dying.2

78% of people say they would find it helpful to talk to a financial professional about long term care planning. However, only 16% have had such a conversation.3

1 Genworth 2011 Cost of Care Survey conducted by CareScout® April 20112 Genworth/Age Wave, Our Family, Our Future, November 20103 Genworth 2011 Financial Reality Check Study

Over 90%

of people have not

discussed key long

term care topics

with their spouse,

children or parents.11

11Genworth/Age Wave, Our Family, Our Future, November 2010 genworth.com/lets-talk 7

The top 3 triggers for long term care insurance buyers12

1. Reaching a certain age

2. A financial advisor or agent recommendation

3. Knowing someone who experienced a serious illness

or life threatening event

Over 3 in 4 long term care insurance buyers were prompted

by triggers other than their advisor recommending it12

When you see this number you may think that what you do will not move people

to action. But consider this — what happens when a trigger event occurs and you

have not discussed long term care insurance with your clients? Who will they turn

to? Most commonly it will be someone who has been in recent contact with them

or someone recommended by a friend. Or will they go to someone who has

taken the time to help them have the conversations with their loved ones about

long term care, aging, health and money?

Be that person.

Timing is everything,and you are an integral part of the solution

78% of people

say that they would

find it helpful to

talk to a financial

professional about

long term care

planning, but only

16% have had that

conversation.12

Long term care

insurance buyers

act within 5 months

of a trigger event.12

Long term care insurance underwritten byGenworth Life Insurance Company, Richmond, VA

Genworth Life Insurance Company of New York, New York, NY Administrative Office: Richmond, VA

12Genworth 2011 Financial Reality Check Study

Ask. Listen. Talk. Repeat. Have the conversation with your clients

again and again. A trigger event can

happen at anytime and you want to be

there when it does. That’s the moment

when they’ll be ready to take action.

Insurance and annuity products: Are not deposits. Are not guaranteed by a bank or its affiliates.

May decrease in value. Are not insured by the FDIC or any other federal government agency.

©2013 Genworth Financial, Inc. All rights reserved.