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{First Name Last Name}{Title}Truist Life Insurance Services

Extended Care Planning

These materials are provided for educational purposes and may be used in conjunction with the solicitation of an insurance product to the public. For use with non-registered products only. Variable is not discussed within this presentation. The insurance products described may be issued by various companies and may not be available in all states. All comments about such products are subject to the terms and conditions of the annuity and/or insurance contract issued by the carrier and policy terms, conditions and limitations may apply. Not all applicants will qualify for coverage. Your insurance producer may recommend insurance products based on the individual circumstances you communicated. You should not purchase an insurance product unless accompanied by a compliant carrier illustration. Carrier illustrations are based on the individual circumstances you presented to your producer. The underwriting class illustrated may not be the underwriting class ultimately issued by the carrier. The carrier may, in its sole discretion, issue a policy other than applied for based upon information received during the underwriting process.The premiums and benefits illustrated are based on information provided by the carrier at the time the illustration is run and are subject to change at any time at the sole discretion of the carrier.

Truist Life Insurance Services, its agents and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. Clients should consult with and rely on their own independent legal and tax advisors regarding their particular set of facts and circumstances before purchasing an insurance product. To ensure compliance with requirements imposed by the IRS, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Please note that in order to provide a recommendation to a client about the transfer of funds from an investment product, including those within an IRA, 401(k), ROTH IRA, or other retirement plan, to fixed or variable insurance product, an insurance producer must hold the proper securities registration and be currently affiliated with a broker/dealer or registered investment adviser. Investing advice can only be provided by an appropriately qualified investment advisor.

Policy riders are available at an additional cost and may not be available in all states or for all products. Terms and conditions apply.

Case studies are offered to show how Truist Life Insurance Services can provide valuable assistance to financial advisors seeking insurance solutions for their clients. Results may vary. This is a hypothetical example and does not guarantee a similar results.

For use with non-registered products only. Insurance products are offered through Truist Life Insurance Services, a division of Crump Life Insurance Services, Inc., AR license #100103477, a wholly-owned subsidiary of Truist Insurance Holdings, Inc. Insurance products are not a deposit, not FDIC insured, not guaranteed by the bank, not insured by any federal government agency, and may go down in value. 03.20 BBTL20-8399-A-2, 0321

© 2020 Truist. All Rights Reserved.

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Disclosure

1. Extended care planning- Long Term Care insurance (LTCi)- Types of care available- Main components- Funding options- Impacts and considerations

2. Types of plans available

Today’s Agenda

© 2020 Truist Financial Corporation. Truist, Truist purple, and the Truist logo are service marks of Truist Financial Corporation.

Long Term Care (LTC)/ Extended Care planning

1U.S. Department of Health and Human Services. 2016, June 24. “Who Needs Care?” http://longtermcare.gov/the-basics/who-needs-care/. 2https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html, October 2017

70% of people age 65 and older will need long term care1

Having the discussion about LTC

70%

Why talk about it?

20% will need it for longer than five years1

Pays for care to those who require assistance due to:- Inability to perform Activities of Daily Living (ADLs)

- OR severe cognitive impairment

Custodial vs. skilled

LTCi overview

Bathing Continence Toileting Dressing Eating Transferring

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Types of LTC services

Home Health CareIn Home CareFeatures: Homemaker Services Personal Care Nursing Services‒ RN‒ LPN‒ Health Care Aide‒ Personal Care Aide

Therapy Services‒ Speech‒ Respiratory‒ Physical

Adult Day CareCommunity Day Care ServicesFeatures: Part-Time Care in a Group Setting Social Interaction and Security

Assisted Living FacilityAdult Foster HomeResidential Health CareApartment-Like ConditionsFeatures: Personal Care Assistance Non-Skilled Care Services

Hospice CareEnd of Life Care for the Terminally ill (6 months)Features: Inpatient Facility Care In-Home Care

Nursing FacilityNursing HomeInstitutional Care Facility (due to necessity)Features: Skilled Care Intermediate Care Custodial Care

Age 65+, 3 day hospital stay, skilled care

Covers days 1-20 at 100%, co-pay $167.50 next 21-100 days

Federal or state funded, financial eligibility, 5 year look-back, estate recovery

Priority group system – illnesses related to service come first

Your own personal income and assets

Paying for coverage

Medicare MedicaidVA

Benefits Personal

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It’s true – wealthier people may be able to cover the cost of care.

Tax Implications

Market Timing

Liquidity Loss ofFuture Income

However, have they considered the following? And who makes these decisions?

Financial considerations

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The need for extended care may significantly change the life of the family member providing the care.

Increased Stress Sibling Tension Decline in Well-being

Second Marriages

Factors that may impact those providing care include:

Impact of providing care

Many Long Term Care insurance options offer a Care Coordinator, not just financial support

© 2020 Truist Financial Corporation. Truist, Truist purple, and the Truist logo are service marks of Truist Financial Corporation.

LTC: Types of policies

*Policy riders are available at an additional cost and may not be available for all products or in all states. Terms and conditions apply.

1 2 3• LTC coverage – only

provides LTC benefits

• Lower premiums

• Flexible benefits

- Potential tax deductions

- Inflation protection

- Funding with HSA dollars

Life or annuity insurance with LTC

Return of premium option

Death benefit to heirs if LTC not used

Lifetime benefit option

Potential for cash value accumulation

Level premiums

Life insurance with LTC benefit

Cash accumulation available

Higher death benefit to heirs if LTC is not used

Death benefit istax-free

2nd to die option

Types of LTC policies

Traditional LTC Hybrid LTC Life Insurance with LTC Rider*Highly Customizable:

Flexible Design(Insured Chooses)

Combined Linked Benefits(Live, Die, Quit Solution) Flexible Protection

*Policy riders are available at an additional cost and may not be available in all states or for all products. Terms and conditions apply.

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Other Optional Riders*

Shared Coverage

Joint/Spousal Waiver of Premium

Waiver of Elimination Period for Home Care

Survivorship Benefit

Cash Alternatives

Return of Premium/Surrender Value

Death Benefit

Main components of an LTC policy

BenefitAmount

$1,500 – $12,000(monthly max.)

BenefitPeriod (yrs.)2 Years – Lifetime

EliminationPeriod0-90 days,

Varies by Carrier

InflationProtection1-5% Simple

3-5% Compound

Life Insurance or AnnuitySurrender Value

Various types of payment: indemnity or reimbursement

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Highly customizable: flexible design(you choose)

Maximum leverage per dollar, (lowest premium for comparable coverage)

Can be funded with HSA dollars

Potentially tax deductible

Monthly/daily benefit with specified benefit duration

Inflation protection options with a variety of optional riders

Services – home healthcare, assisted living, nursing home care, adult day care, hospice

Traditional LTC policy

Asset-based investment

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Hybrid LTC policy (linked benefit)

CombinedLinked Benefits:(Live, die, quit solution)

LTC policy + Death Benefit

Premiums payment method (1,3,5,7,10, Annual)

Potential tax-advantaged LTC benefits

Tax-free death benefit

Surrender value

Inflation options available

Services – home healthcare, assisted living, nursing home care, adult day care, hospice

Reallocation of assets

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Portfolio of Assets

Asset(s) to reposition

Cash Value

Death Benefit

Additional Long Term Care Benefits

Total Available Long Term Care Benefits

Hybrid LTC policy (linked benefit)

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Hybrid LTC policy (linked benefit)

Client profile: Female, age 60 Current liquidity: $750,000 Additional income $100K Certificate of Deposit (CD) coming due Financial plan shows she has enough to retire

and live comfortably Children all reside in different locations

Current assetsToday $100,000Age 88 $228,793Tax With tax on interest

out of pocket

In 40 years yields $326,204(if taxes paid out of pocket)

Assumes annual rate of 3%

Hybrid LTC policyToday $375,827Age 88 $859,866Tax No tax on

growth

If no LTC benefit paid, minimum death benefit of $116,204 is available

Policy on a female age 60, non-smoker, couples rate, 3% inflation

Potential Solution:Reposition her current asset in the CD and use the funds to pay for a hybrid LTC product. By doing this, she will significantly increase her LTC benefit, helping protect herself from LTC costs. If she never needs care, she will have a tax-free death to passonto her heirs.

Case study

Case studies are offered to show how Truist Life Insurance Services can provide valuable assistance to financial advisors seeking insurance solutions for their clients. Results may vary. This is a hypothetical example and does not guarantee a similar results.

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Life insurance with LTC rider

Flexible Protection

Death benefit = LTC benefit amount

Monthly benefit amount is elected

Services – home healthcare, assisted living, nursing home care, adult day care, hospice

Premium used for LTC costs is locked in

Tax-free death benefit

2nd to die options

*Policy riders are available at an additional cost and may not be available for all products. Terms and conditions apply. | Joint policy option not available on all life policies with LTC Riders.

Maximum Death Benefit option Potential for Death Benefit / LTC pool growth LTC Benefit equal to or less than Death

Benefit amount Potential for Cash Surrender Value growth Guaranteed Premiums Usually best if LTC is secondary client

concern to Death Benefit

Life insurance policies with LTC riders*

If single/widowed, protecting your assets for yourself should you recover Protecting family from the impact of needing care Assuring your ability to keep financial commitments

If it happened today, what concerns would you have?

Possible considerations

Premiums overview

Premiums will vary depending on:

Age Gender Health Type of insurance products

Insurability, premium funding and affordability

Insurability, premium funding and affordability

Premiums overview

Premiums will vary depending on:

Cash value from other/old life

insurance policies

Oldannuities

Tax qualified monies

Newmoney

Meet with your trusted advisor to help determine if extended care planning is right for you If you believe it is, they can assist you in determining if you may be eligible and which plan

would be an appropriate fit for your needs

Let us help you with your extended care planning needs

Next steps

Thank you!Is there anything we can clarify for you?

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