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John Alden Life Insurance CompanyHome Office: P.O. Box 3050 Milwaukee, WI 53201-3050Company NAIC No. 65080Administrative Office: Post Office Box 4243Woodland Hills, California 91365-4243Actuarial MemorandumFebruary 2022rate, and 2% morbidity increase due to adverse selection.The projections in Exhibits F and G assume the 1st, 2nd, 3rd and, 4th phase increases are expected to occurin 2022, 2023, 2024, and 2025 respectively.The above assumptions are based on the experience of policies issued by the Company, reinsurer and industryexperience, and actuarial judgment. The best estimate assumptions reflect an estimate of the most likelyoutcome and do not reflect an explicit margin for conservatism.7.Area Factors and Trend AssumptionsArea factors were not used in pricing for the above-listed policy forms. As this is not medical insurance, anexplicit medical cost trend is not included in the projections.8.ReservesActive life reserves have not been used in this rate increase analysis. Claim reserves as of December 31, 2020have been discounted to the incurral date of each respective claim and included in historical incurred claims.Incurred but not reported reserve (IBNR) balances as of December 31, 2020 have been allocated to a calendaryear of incurral and included in historical incurred claims. Paid claims have been discounted to the incurral dateand included in historical incurred claims. Claim reserves are calculated for active and pending claimants as thepresent value of benefit payments discounted by interest and terminations. The IBNR is based on lag factorswhich are applied to the claim reserves and survivor payments based on the difference between the incurral dateand the valuation date.9.Past and Future Policy ExperienceEarned premiums and incurred claims for projection years 2021 through 2060 are developed from an activelives model representing actual contracts inforce as of December 31, 2020. The best estimate assumptionsdescribed above for morbidity, voluntary lapse, and mortality are used to project earned premiums and incurredclaims.Nationwide and statewide historical experience and projections before and after the proposed rate increase areJohn Alden Life Insurance Company6

John Alden Life Insurance CompanyHome Office: P.O. Box 3050 Milwaukee, WI 53201-3050Company NAIC No. 65080Administrative Office: Post Office Box 4243Woodland Hills, California 91365-4243Actuarial MemorandumFebruary 2022shown as follows:Policy FormJ-5762J-5875CombinedNationwideExhibit F1Exhibit F2Exhibit FMarylandExhibit G1Exhibit G2Exhibit GHistorical experience is shown by claim incurral year with the loss ratio for each loss year calculated by thefollowing formula: . . LRj loss ratio for year jPmttj claim payments in year t on claims incurred in year j, assumed to occur midyearjCR2020 claim reserve held on December 31, 2020 for claims incurred in year jjIBNR2020 incurred but not reported reserve as of December 31, 2020 attributable to claims incurred in year jEPj earned premium in year j, assumed mid-yearj year of incurral J-5762: v 1 / 1.047 0.955110J-5875: v 1 / 1.045 0.956938Future anticipated loss ratio is calculated, with and without interest, as anticipated incurred claims divided byearned premiums. The lifetime loss ratio as of December 31, 2020 is calculated as the sum of accumulated pastexperience and discounted future experience where accumulation and discounting occur at the maximumvaluation interest rate.10. Analysis PerformedThe originally approved premium schedule was based on pricing assumptions believed to be appropriate, givenindustry experience available when the originally approved rate schedule was developed. The original pricingassumptions for voluntary lapse, mortality, and claim costs were as follows:a.Original Pricing Ultimate LapseJ-5762: 5.0%J-5875: 7.5%John Alden Life Insurance Company7

John Alden Life Insurance CompanyHome Office: P.O. Box 3050 Milwaukee, WI 53201-3050Company NAIC No. 65080Administrative Office: Post Office Box 4243Woodland Hills, California 91365-4243Actuarial MemorandumFebruary 2022b.Original Pricing MortalityJ-5762 & J-5875: 1975-80 Select and Ultimatec.Original Pricing MorbidityOriginal pricing claim costs for skilled, intermediate, and Facility Care Benefits are derived fromThe Reports of the Society of Actuaries based on the 1985 National Nursing Home SurveyUtilization Data in Transactions, Society of Actuaries, 1988-89-90 Reports; and the Long Term CareIntercompany Study: 1984-1991 Experience in Transactions, Society of Actuaries, 1993-94 Reports.Claim costs factors shown in the original actuarial memorandum are applied to the inforce lives andrepresent the expected cost per life of incurred benefits.Joint claim cost factors:J-5762 & J-5875:150% of the claim costs of the older insuredUnderwriting selection factors:J-5762: 20%, 40%, 60%, 80%, 100% durations 5 & laterJ-5875: 10%, 20%, 40%, 60%, 80%, 100% durations 6 & laterd.Original Pricing InterestJ-5762 & J-5875: 7%As part of the inforce management of the business, the reinsurer and administrator of the business monitor theperformance of the business by completing periodic actual-to-expected analysis for voluntary lapse, mortality,claim incidence, and claim termination. The findings from these analyses were used in projecting the inforcebusiness to determine the effect of experience on the projected lifetime loss ratio. An analysis of the projectedlifetime loss ratio based on current best estimate assumptions compared to that assumed at the time of originalpricing revealed that experience had deteriorated significantly.The best estimate assumptions used in this filing (described in Section 6) are based on actual inforce experienceof the Company, experience of the reinsurer’s similarly underwritten and administered LTC products, industryexperience, and actuarial judgment. Actual persistency and claim continuance have been higher than what wereassumed in the original pricing.John Alden Life Insurance Company8

John Alden Life Insurance CompanyHome Office: P.O. Box 3050 Milwaukee, WI 53201-3050Company NAIC No. 65080Administrative Office: Post Office Box 4243Woodland Hills, California 91365-4243Actuarial MemorandumFebruary 202211. Loss Ratio Requirement Compliance DemonstrationNationwide Exhibits F, F1, and F2, and Statewide Exhibits G, G1, and G2, show actual and projectedexperience using current best estimate assumptions. Actual experience is provided from inception through 2020and then projected on a seriatim basis for 40 years using the current assumptions described above in Section 6.Included in Exhibits F, F1, F2, G, G1, and G2 are calendar year earned premiums, incurred claims, annual lossratios, and cumulative loss ratios. As shown in Exhibits F, F1, F2, G, G1, and G2, the anticipated lifetime lossratios with the requested rate increase exceed the minimum loss ratio required by pre-rate stability regulation.12. Proposed Effective DateThe rate increase will apply to policies on their policy anniversary date following at least a 60-day policyholdernotification period after approval.13. Nationwide Distribution of Business as of December 31, 2020As of December 31, 2020, the number of policies in force that will be affected by this increase by policy form isshown in the following Exhibits:Policy FormJ-5762J-5875John Alden Life Insurance CompanyNationwideExhibit H1Exhibit H2MarylandExhibit H3Exhibit H49

John Alden Life Insurance CompanyHome Office: P.O. Box 3050 Milwaukee, WI 53201-3050Company NAIC No. 65080Administrative Office: Post Office Box 4243Woodland Hills, California 91365-4243Actuarial MemorandumFebruary 202214. Actuarial CertificationI am a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries; I meet theAcademy's qualification standards for preparing health rate filings and am familiar with the requirements forfiling long-term care insurance premium rate increases.This memorandum has been prepared in conformity with all applicable Actuarial Standards of Practice,including ASOP No. 8 and No. 18.The data used to develop this actuarial memorandum was provided by LifeCare Assurance Company, theadministrator of the policies. I have reviewed the data for reasonableness.To the best of my knowledge and judgment, I hereby certify that: this rate submission is in compliance with the applicable laws and regulations of the jurisdiction whereit is filed; policy design, underwriting, and claims adjudication practices have been taken into consideration; the rates are not excessive or unfairly discriminatory and bear a reasonable relationship to the benefitsbased on the loss ratio standards of this jurisdiction; this filing will enhance premium adequacy, but not enough to prevent future rate actions. However, ifthe requested rate increase is approved in full, the company will not file for a future rate increase thatwould result in a combined nationwide lifetime loss ratio less than 115%; and the relationship between renewal premium rate schedules and new business premium rate schedules isnot applicable because the company is no longer marketing new business in any state.Phillip Oh, FSA, MAAAConsulting ActuaryDate: February 3, 2022John Alden Life Insurance Company10

John Alden Life Insurance CompanyPolicy Forms: J-5762-P & J-5875-PExhibit A: Benefit Summary(does not reflect state variations)General InformationAvailable CoverageBenefit TriggerBenefit PoolUnderwriting classesEmployer/Association GroupDiscountJ-5762Nursing Care or Home Health CareMedical Necessity, 2 of 5 ADL's, or Severe Cognitive ImpairmentYesPreferred, Standard, Substandard1, Substandard210% for all ages40 – 84 (age nearest birthday)18 – 84 (age nearest, endorsed groups)Maximum Daily Benefit Amount 10 to 200 ( 10 increments)Benefit Period3 yrs, LifetimePayment OptionsLifetimeElimination period0, 30, 90, 180 daysAvailable Issue AgesJ-5875Nursing Care or Home Health CareMedical Necessity, 2 of 5 ADL's, or Severe Cognitive ImpairmentYesAccept, Standard, Substandard15% for ages 40-6410% for ages 65 40 – 84 (age nearest birthday)18 – 84 (age nearest, endorsed groups) 20 to 250 ( 10 increments)2 yrs, 3 yrs, 4 yrs, LifetimeLifetime, 10-year pay0, 30, 90, 180 days 10 per day, up to 14 days per calendar year, when insured incurs charges to reserve abed in a Long Term Care Facility during hospitalization.Bed Reservation BenefitN/AAlternative Plan of CareN/AAlternate Plan of Care Benefit provides medical or non-medical benefits agreed uponby insured, Physician, and the Company which may enable the insured to end LongTerm Care Facility confinement and recover at home or in an alternative facility.Waiver of Premium BenefitWaiver of Premium Benefit is provided after confinement in a Long Term CareFacility for a period of 90 consecutive days.Waiver of Premium Benefit is provided after confinement in a Long Term CareFacility for a period of 90 consecutive days.Personal Care AdvisorN/APersonal Care Advisor, ccessible through toll-free telephone number, is assigned toinsured upon claim to provide assistance with any questions.RenewabilityGuaranteed renewable for lifeGuaranteed renewable for lifeRiders/EndorsementsDescriptionThis rider increases the original daily benefit amount by 5% annually. Increases aremade regardless of claims status.This rider increases the daily benefit amount by 5%, compounded annually. Increasesare made regardless of claims status. 5.00 per day or 10.00 per day of Home Health Care Benefit payable after anelimination period of 0, 30, 90, or 180 days. An Alternative Plan of Care is alsoavailable if insured is otherwise qualified for benefits under the policy or rider. Underjoint coverage this benefit is payable to either or both insureds, if qualified.J-5762J-5875Available (Only in Georgia)AvailableAvailableAvailableAvailableNot AvailableAvailableNot AvailableAvailableNot AvailableAvailableNot AvailableAvailableNot AvailableNot AvailableAvailableNot AvailableAvailableNot AvailableAvailableNot AvailableAvailableFull Continuation of CoverageBenefit RiderThis rider provides a nonforfeiture benefit without a claims offset in the event ofpolicy lapse. If the policy lapses due to nonpayment of premium, coverage willcontinue and benefits will be payable at the daily benefit amount in effect on the dateof lapse. The number of days remaining for which benefits are payable after lapse isequal to the total of premiums paid divided by the daily benefit amount on the date oflapse. Any premiums paid which are not paid in benefits as continued coverage will bepaid to the beneficiary upon the insured's death. If the policy lapses due to death ofthe insured and has not previously lapsed for nonpayment of premium, the total ofpremiums paid, with no deduction for benefits paid, will be paid to the beneficiary.Under joint coverage, benefits payable upon death will be paid upon the last to die.Not AvailableAvailableLimited Continuation ofCoverage Benefit RiderThis rider provides a nonforfeiture benefit with a claims offset in the event of policylapse. The same benefit is provided for continued coverage after lapse due tononpayment of premium as under the Full Continuation of Coverage Benefit Riderdescribed above. If the policy lapses due to death of the insured and has notpreviously lapsed for nonpayment of premium, the total of premiums paid, reduced bythe total of benefits received, will be paid to the beneficiary. Under joint coverage,benefits payable upon death will be paid upon the last to die.Not AvailableAvailable10- Year Premium PaymentEndorsementPremiums payable over a 10 year period, after which no further premium is due.Not AvailableAvailable5% Simple Inflation5% Compound InflationHome Health Care RiderFull Survivor Benefit andContinuation of Coverage RiderLimited Survivor Benefit andContinuation of Coverage RiderLimited Nonforfeiture BenefitsRiderOptional Cash NonforfeitureBenefits Option RiderHome and Community BasedCare Reimbursement BenefitRiderHome and Community BasedCare Indemnity Benefit RiderAssisted Living Facility BenefitRiderShortened Benefit PeriodNonforfeiture RiderA Full Survivor Benefit equal to the total of all premiums paid is payable to thebeneficiary upon the death of the insured (second to die in the case of joint coverage).A Continuation of Coverage Benefit is payable in the event the policy lapses fornonpayment of premiums. This benefit is equal to the total of premiums paid lessclaims paid.A Limited Survivor Benefit equal to the total of all premiums paid less claims paid ispayable to the beneficiary upon the death of the insured (second to die in the case ofjoint coverage).A Continuation of Coverage Benefit is payable in the event the policy lapses fornonpayment of premiums. This benefit is equal to the total of premiums paid lessclaims paid.A Guaranteed Assistance Care Benefit of 1 or 2 units (25% or 50% of the Daily LongTerm Nursing Care Benefit) is payable at age 65, 70, 75, 80 or 85. There is noelimination period. Premium rates will vary according to the daily benefit amount andage which are elected by the insured prior to issue. Under joint coverage, this benefitis payable at 150% of the daily rate, but only when no other benefits are being paidunder the policy or this rider.A Continuation of Coverage Benefit is payable in the event the policy lapses fornonpayment of premiums. This Benefit is Equal to the total of premiums paid lessclaims paid.A limited Survivor Benefit equal to the total of all premiums paid less claims paid ispayable to the beneficiary upon the death of the insured (second to die in the case ofjoint coverage).Provides the same benefits as the Limited Nonforfeiture Benefits Rider forGuaranteed Assistance Care and Continuation of Coverage, plus the following:A Full Survivor Benefit equal to the total of all premiums paid is payable upon thedeath of the insured (second to die in the case of joint coverage).A Cash Nonforfeiture Benefit is available upon surrender of the rider. The CashNonforfeiture Benefit is equal to a percentage of the difference between the first yearannual premium and the annual renewal premium.This rider pays 100% of actual expenses incurred up to the maximum daily benefitchosen for services provided by a licensed professional nurse or therapist. 80% ofactual expenses incurred up to maximum daily benefit chosen is paid for adult daycare, confinement in a qualified Assisted Living Facility, homemaker services,services provided by a qualified Home Care Agency and respite care (maximum of 21days per calendar year). Premiums are waived after 90 consecutive days ofconfinement in an Assisted Living Facility. Benefits are payable after the eliminationperiod. The insured may choose a maximum daily benefit between 50% and 100% ofthe daily benefit for Long Term Nursing Care and may also choose a benefit periodless than or equal to the benefit period for Long Term Nursing Care.This rider pays the full daily benefit amount chosen for the same care and servicesdescribed under the Reimbursement Benefit Rider. Benefits are payable after theelimination period. The insured may choose a daily benefit between 50% and 100% ofthe daily benefit for Long Term Nursing Care and may also choose benefit period lessthan or equal to the benefit period for Long Term Nursing Care.After satisfaction of the elimination period, this rider pays 70% of the Long TermNursing Care daily benefit for confinement in a qualified Assisted Living Facility.Premiums are waived after 90 consecutive days of confinement in such a facility. Thisrider is not available if either one of the Home and Community Based Care BenefitRiders is purchased.This rider provides the nonforfeiture credit as proposed for adoption by the NAIC. Ifthe policy has been in force for at least three years and lapses due to nonpayment ofpremiums, coverage will continue and benefits will be payable at the daily benefitamount in effect on the date of lapse. The minimum benefit payable under the riderwill be at least 30 times the daily benefit amount in effect on the date of lapse. AnyCost of Living Rider attached to the policy will terminate with the lapse of the policyand the benefit payable under this rider will be the daily benefit in effect on the date oflapse.John Alden Life Insurance Company11

John Alden Life Insurance CompanyRate Increase Impact ExhibitExhibit A1Number of PoliciesCurrent PremiumCurrent Average PremiumNew PremiumNew Average PremiumAverage Rate IncreaseNumber of PoliciesCurrent PremiumCurrent Average PremiumNew PremiumNew Average PremiumAverage Rate IncreaseNumber of PoliciesCurrent PremiumCurrent Average PremiumNew PremiumNew Average PremiumAverage Rate IncreaseNationwideCost of Living AdjustmentNoneCompoundSimpleJ-5762-P49468420 729,341 1,398,200 27,314 1,476 2,044 1,366 1,260,092 2,415,689 47,191 2,551 3,532 2,36072.77%72.77%72.77%J-5875-P7811,1991,121 1,230,728 2,681,621 2,482,639 1,576 2,237 2,215 2,126,347 4,633,075 4,289,290 2,723 3,864 3,82672.77%72.77%72.77%Combined1,2751,8831,141 1,960,069 4,079,821 2,509,953 1,537 2,167 2,200 3,386,439 7,048,764 4,336,481 2,656 3,743 ylandCost of Living AdjustmentCompoundSimpleJ-5762-P450 10,031 9,555 0 2,508 1,911 0 17,332 16,507 0 4,333 3,301 072.77%72.77%0.00%J-5875-P51711 12,559 42,832 30,605 2,512 2,520 2,782 21,698 74,002 52,876 4,340 4,353 4,80772.77%72.77%72.77%Combined92211 22,590 52,38

John Alden Life Insurance Company Home Office: P.O. Box 3050 Milwaukee, WI 53201-3050 Company NAIC No. 65080 Administrative Office: Post Office Box 4243 Woodland Hills, California 91365-4243 Actuarial Memorandum February 2022 Long Term Nursing Care Policy J-5762-P-MD Long Term Nursing Care Policy J-5875-P-MD