MUTA-128097114

RATE FILING SUMMARY

• Individual Long Term Care Rate Revision
• Company is proposing an overall average rate increase of 24.0%

Mutual of Omaha regularly reviews the experience of its Long-Term Care blocks of
business. Industry studies, as well as our own company experience, indicate that
policyholders are living longer and are keeping their policies longer than anticipated. In
addition, these studies show that the level of future claims is much higher than originally
anticipated compared to when these products were originally developed in the 1990’s.
The proposed increase in premiums is necessary in order to pay the future claims.

The company has requested an overall increase in premiums of 24%, which is comprised
of a 15% rate increase to policyholders with the non-lifetime benefit periods and a 30%
rate increase to policyholders with the lifetime benefit period. Lifetime benefit
policyholders who elect to retain the lifetime coverage will be subject to an additional
proposed rate increase of 11.5% one year from the initial rate increase. This increase has
been filed with and will be reviewed by the Vermont Department of Insurance. This
filing complies with the laws and regulations of the State of Vermont, and will not be
implemented until approved by the Department of Insurance.

We understand that an increase in premiums is not welcome news to our policyholders.
In an effort to mitigate the impact of the rate increase, there are several options available
to the insureds. To reduce the impact of the rate increase, insureds will be given the
following options:

• Decrease their benefit period.
• Increase their elimination period.
• Reduce their maximum daily benefit
• Accept the Nonforfeiture option

The Nonforfeiture option will be available for all policyholders that receive a rate
increase.

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