1. Offered by National Western Life
Wealth Transfer
Offered by National Western Life

2. Mechanics for Leaving a Legacy
SPIA
Immediate Life Annuity
Life Policy
Lifetime Solutions
Explain life or 10/5 spia with NWL as irrevocable beneficiary 2

3. $100 K (Qualified) Wealth Transfer 67 Y/O F N/T
LTRS
Solutions 5
Solutions 10
$67 K buys policy
$100 K into 5 yr SPIA
$100 K into 10 yr SPIA
$33 K paid to the IRS
@33% tax rate
$6.9 K taxes per year for 5
33 % tax rate
$3.8 K taxes per year for 10
33% tax rate
Guaranteed DB
$127,376
$192,046
180, 337
Tale of 3 wealth transfers
Use the governments $$ to leave a larger bequest

4. Old Concept w/ Some New Features
Fits into Jack Marrion’s New FINANCIAL PYRAMID
Plan Designed for Today’s Seniors seeking discounted bequeaths
Growing Legacy in terms of DB and CASH VALUE
Tax payments spread--using the governments $$ to buy a bigger DB!
ROTH Conversion offers 3 years to spread tax payments Wealth Transfer offers up to 10!
Estate/Bequest
Additional Income
Essential Income
Wealth Transfer is not a new idea!

5. Qualified Plans Asset or Liability?
Most folks hate the idea of an RMD
Most Seniors Want to Leave a Legacy not a tax bill
Savings Products yield next to nothing currently ( )
Many Investment Products could be Losing Money
Taxes going up or down in the future?

6. October (Fiscal 2009) $164,827 $320,360 ($155,533) November $144,769
$269,970
($125,201)
December
$237,785
$289,540
($51,755)
January
$226,090
$289,547
($63,457)
February
$87,312
$281,171
($193,859)
March
$128,924
$320,513
($191,589)
April
$266,205
$287,112
($20,907)
May
$117,217
$306,868
($189,651)
June
$215,339
$309,671
($94,332)
July
$151,480
$332,160
($180,680)
August
$145,529
$249,083
($103,554)
September
$218,880
$264,087
($45,207)
Total 2009
$2,104,357
$3,520,082
($1,415,725)
October (Fiscal 2010)
$135,294
$311,657
($176,363)
$133,564
$253,851
($120,287)
$218,918
$310,328
($91,410)
$205,239
$247,873
($42,634)
$107,520
$328,429
($220,909)
$153,358
$218,745
($65,387)
$245,260
$327,950
($82,690)
$146,794
$282,721
($135,927)
$251,048
$319,470
($68,422)
Source: Department of the Treasury Financial Management Service Summary of Federal Government Receipts versus Outlays Fiscal 2009& 2010 in $ Millions
1.4 T shortfall in fiscal ’09 alone
2010 will be worse

7. Market Potential 65% Qualifed 35% Non-Qualified
$2 Trillion Dollars of in force annuities: (IRI)
Questions:
How much goes to beneficiaries?
How much will pass tax free?
65% Qualifed
35% Non-Qualified
RMD’s must be taken at 70 ½ from Qualified Plans
A significant tax burden can be redirected if life insurance is used to transfer Qualified Wealth

8. Why Wealth Transfer Now?
There is little in the way of guaranteed growth with treasuries at 2.9% for 10 years
Small tax burden addressed now versus larger burden for beneficiaries later
Agents, Clients & Beneficiaries WIN
If you Don’t….

9. Less Goes to Heirs; More to the IRS!
IRS WASHINGTON

11. Two things are certain: Death & Taxes ?
Good Agents help Beneficiaries avoid excess taxes!

12. Overcoming the Underwriting Obstacle. APS/ Dr
Overcoming the Underwriting Obstacle! APS/ Dr.’s Exam/ Blood Test/ EKG’s—NO MORE
Many annuity producers are terrified by their perception of life insurance U/W so what are the obstacles?

13. Wealth Transfer Made Easy
Point Of Sale Underwriting
Quick Decision made during 14 minute call
Pivot to an annuity if declined
Transition of qualified funds to life insurance if client is comfortable with a tax bill spread out over 5-10 years

14. 14 Minutes to Success! Lifetime Returns Select or Solutions
Agent & Applicant
Agent & Applicant
Call ESP
ESP
12 Minutes to Success
Lifetime Returns Select or Solutions
Point of Sale Interview
MIB searched
Inteli-Script
Fraud statement reviewed
Decision is made – Approve/Decline
Agent Sends Paperwork Either Way!
NWL Applies Premium or Requests Transfer
POLICY ISSUED!
COMMISSIONS PAID!!

15. Elite Sales Processing
Identified as National Western Life
Open for Calls until 9:30 PM CST, Monday thru Thursday! 5:00 PM on Fridays
Will Call Prospect at Agent’s Direction
No Exams, No APS: Instant Approval!
Application Questions are central to the phone interview!

16. Agent Critical Pathway
Agent and Applicant complete the application
Agent calls Elite Sales Processing, Inc. (ESP)
3. The ESP interviewer talks with the NWL® agent then asks for permission to record the interview w/ the client
4. The Interviewer asks for permission to research MIB (Medical Information Bureau) and IntelliScript (Prescription History)--the results will be back during the interview
5. Interviewer asks medical questions + additional information FROM the application
6. If all questions are “No” in the medical history section, and MIB, IntelliScript are within NWL® guidelines, the application is accepted!
7. Agent sends application to NWL (accepted or declined) process complete!
8. ESP notifies Home Office on decision, forwards interview for processing

17. Lifetime Returns Solutions
Instant Approval Underwriting
Guaranteed Death Benefit
Cash Value Growth through Indexing
Death Benefit Growth through Indexing
Efficient Wealth Transfer
A Rated Carrier
Double Digit Street Commission to age 80

18. Looking for Prospects? Look at book of ANNUITY CLIENTS!
Cash value life policy holders might want to to LTRS not solutions?
(if non guaranteed DB set to implode)
Whole life policy owners with cash above or = DB

19. Case Study 1:
Mrs. Smith is 65 years old and has $100,000 in a Tax-deferred Annuity with ABC Ins. Company. She is concerned that if she passes away her two sons have to pay taxes on the $30,000 of gain she has in her annuity contract. Mrs. Smith is healthy with a few minor health issues. Does not need money to live on.
Using NWL’s Lifetime Solution's she could transfer the Annuity’s tax liable DB into a Tax-Free DB of $194,635.
The $30,000 gain would be spread out over 10 years. If she should pass away prior to the 10 year period the proceeds of the contract would be paid out to her two sons tax-free.
Note: Mrs. Smith would receive a 1099 each year that the SPIA funds the life insurance.

20. An Upgrade? Annuity Lifetime Returns Solutions
Death Benefit Death Benefit
$100, $194,635
Taxable gain $30, Tax Free
Net to Heirs after taxes Net to Heirs
$91, $194,635
(Assuming 28% tax bracket)

21. Case Study 2:
Mr. Johnson is 75 y/o. He has $150,000 in a Tax-qualified IRA. He is concerned that if he passes away his daughter will have to pay ordinary income tax on the $150,000. Mr. Johnson has a pension and Social Security to live on.
He could transfer the IRA into Lifetime Solutions giving him a Tax- Free Death Benefit of $199,979.
Income tax on the IRA is spread out over 10 years. And his doaughter could gift him the funds to pay these taxes.
If he should pass away during the SPIA’s payout phase he is no longer on the hook for any taxation as NWL is the irrevocable beneficiary of those payments.
His daughter Immediately becomes the beneficiary of nearly $200 K tax free at the death of Mr Johnson!
Note: Mr. Johnson would receive a 1099 each year for the amount funding the life insurance.

22. An Upgrade? IRA Lifetime Returns Solutions Death Benefit Death Benefit
$150, $199,979
Taxable gain $30, Tax Free
Net to Heirs after taxes Net to Heirs
$108, $199,979
(Assuming 28% tax bracket)

23. Lifetime Returns Select Solutions
Issue Ages 45-85
$25,000 Minimum Face
5/10 or life SPIA (NWL Irrevocable Beneficiary)
GUARANTEED DEATH BENEFIT
Indexed Linked Interest grows account value and DB
10% Liquidity
Guaranteed Table Shave….Table 5!

24. Make an extra $100,000 10 cases per year Less than 1 case per month
Average case size $100,000
Avg. Comp. $11,000 per case
$11,000 x $10 cases = $110,000