At Transamerica Long Term Care, we aim to be a leader in the long ...

At Transamerica Long Term Care, we aim to be a leader in the long term care marketplace. To
achieve that objective, we actively manage our long term care business to ensure our programs and
offerings align with our core underwriting and business management philosophy. We believe that
long term care is a core product that helps us achieve our key objective: "Protecting Families and
Their Dreams".
In fact, Transamerica is currently launching its new Trans Ace product with a long term care rider.
And additional chronic and critical care life offerings are currently under development.
Due to the ongoing, historically low interest rate environment and current industry dynamics, we are
implementing a series of changes to our current product offerings to ensure that our long term care
business continues to grow in a financially responsible manner. While we do not anticipate any
changes to agent compensation, the following changes are being made:
a. We are filing for an across the board 15% increase on all new business premium rates. The
new premiums will apply to all new business sold after the implementation date of the
change.
b. The current spousal discount of 30% will be reduced to 20%. The "married spouse not
applying" discount will be reduced from 15% to 10%.
c. The Preferred Health discount applicable to single applicants will be reduced from 15% to
10% to be consistent with the Preferred Discount applied to married couples.
d. We are suspending sales of all of our limited pay options, including Single Pay, Pay-to-65,
10-Pay, and 15-Pay. We will no longer accept 1035 Exchanges to our long term care
product.
e. We are eliminating the Lifetime (Unlimited) Benefit Period. We will continue to offer all
benefit periods up to and including those benefit packages that produce a 6 year benefit
period.
These changes will apply to all states.
We will begin implementing the new rates and all of the other changes as soon as approvals are
received from the states and Interstate Compact, and new illustration software and marketing
materials are available.
As approvals are received, additional field communications will be provided. These communications
will include information regarding implementation dates by state, transition timelines and information
on availability of new marketing materials and illustration software. This information will also be
available on our Agent Resource Center (www.taltc.com).
We will continue to quote multi-life cases using current rates until such time as the new rates are
approved. Once the new rates have been approved and implemented, we will only continue the
current rates for the limited period of time required to complete an enrollment that has already begun
or to honor a Service Group Request form that we have previously approved or an Implementation

Memo that we have previously issued.
We believe that the TransCare ® II product is and will remain a competitively priced product in today's
long term care marketplace, providing the flexibility you need to tailor a long term care plan to help
meet the needs of your client.
Transamerica's key competitive advantages remain:
1. The 0-Day Elimination Period for Home Health Care and the Cash Benefit.
2. The Built-In Cash Benefit.
3. The Return of Premium to Age 67.
4. The Double Accident Benefit to Age 67.
5. The Step-Rated Benefit Increase Option and the built-in Deferred Benefit Option.
6. Multi-Life Programs Available in all 50 States
7. Outstanding Financial Ratings.
8. More than 25 years of long term care experience and expertise.
9. Outstanding Claims paying history, including nearly $1.5 million in claim benefits paid
each business day.
For additional questions contact your Managing Agent, IMO or your Regional Sales Director.