Privileged Choice and Classic Select Product & Rate Enhancements

As a market leader, we have strong customer acceptance of our products, which were launched in 2003.  Rather than launch a new product, we have chosen to introduce enhancements to these products with refreshed pricing. Our intent is to maintain our popular core product portfolio and freshen the products with additional features.

What are the enhancements?

We are refreshing these products to incorporate numerous minor changes in state requirements, updating some of the coverage provisions and incorporating a minor increase in rates for new business.  Enhancements will include:

• 3% compound inflation option is being added
  • Not available with Indiana Partnership products
• Return of Premium is now on the coverage selection page so the separate ROP booklet is no longer needed. Launched in additional states: IN & INP
  • Not available in New Jersey
• 5% Equal Inflation available in Delaware

What changes are being made to the rates and how will this change affect my clients?

Updated rates for new sales will average about 5% more (10% in New York.)  Rates for older applicants (70 years and older) are going down.  Only existing clients who currently have long ter care insurance and add to their coverage, such as adding an inflation protection option, will be affected by these changes because their increase, if approved will be at the higher rate.

What products are affected?

New sales of Privileged Choice and Classic Select and their correspondign Partnership offerings are the only products affected.  (Current California product offerings, both the Partnership and non-partnership and New York's Partnership Plus are excluded)

When will the new enhancements & rates take effect?

Initially the enhancements and rates were effective in 26 states on October 1, 2007. MD and NY were effective March 31, 2008.

Additional 8 states bolded below effective June 16, 2008.

The following states have approved these changes to Privileged Choice & Classic Select:  AK, AL, CO, DC, DE, GA, IL, IN, KY, LA, MD, ME, MI, MN, MS, MT, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, RI, SC, SD, WI, WV, WY

Why is 3% compound inflation protection being offered on Privileged Choice and Classic Select?

Adding this option for inflation protection was based on several customer needs:

1. 3% compound is more affordable than 5% compound.          3% compound is approximately 23% less expensive than 5% compound for those who prefer the compound to simple inflation protection option.
2. 3% compound qualifies for Partnership in many states.                     As a more affordable option than 5% compound, in most states 3% compound still fulfills the inflation requirement for qualified Partnership-eligible policies by clients under the issue age of 76.
3. 3% compound is close to CPI.                                                                  The Consumer Price Index (CPI) is a common indicator of the annual rate of inflation.  Over the past 7 years, the CPI has averaged just less than 3%.  Other carriers offer CPI as an inflation option, so the 3% compound can provide similar protection for a comparable cost along with a predictable rate of coverage increase over time.

Long term care insurance underwritten by Genworth Life Insurance Company and, in New York, by Genworth life Insurance Company of New York.                                     Privileged Choice and Classic Select are not availble in CA.

FOR PRODUCER USE ONLY.  NOT FOR PUBLIC USE OR DISTRIBUTION.

42471 04/15/08