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National Life Insurance Company ® | Life Insurance Company of the Southwest National Life Group ® is a trade name of National Life Insurance Company, Montpelier,

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Presentation on theme: "National Life Insurance Company ® | Life Insurance Company of the Southwest National Life Group ® is a trade name of National Life Insurance Company, Montpelier,"— Presentation transcript:

1 National Life Insurance Company ® | Life Insurance Company of the Southwest National Life Group ® is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison, TX and their affiliates. Each company of NLGroup is solely responsible for its own financial condition and contractual obligations. LSW is not an authorized insurer in New York and does not conduct insurance business in New York. The Life Event Story Life Insurance You Dont Have to Die to Use. For Agent Use Only. Not for use with the Public. TC67431(0312)

2 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Consumer Financial Concerns Cash Value Accumulation Money for Future Plans Life Insurance Protection for your family Accelerated Living Benefits Terminal, Chronic, or Critical illness riders Disability Benefits in case you become disabled

3 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Many Consumers Dont Want to Pay for Three Different Policies $$$ / Month Life LTC Is there another alternative?

4 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Permanent Life Insurance Features and Riders Provide One Solution for Multiple Risks Benefits may not be mutually exclusive. Using one benefit may reduce or eliminate another. = Permanent Life Insurance Death Benefit Protection Cash Value Accumulation LIBR Accelerated Living Benefits

5 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Life Insurance is the only financial product that, at the death of the insured, provides an immediate tax-free reservoir of funds which exceeds premiums paid. Where will the money come from to provide survivor benefits?

6 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Guarantee a lifetime of income with the Lifetime Income Benefit Rider Most people buy life insurance to protect against the risks of dying too soon….. ….life insurance can also provide protection against living too long. Are your clients concerned about having enough savings to carry them through two or more decades of retirement? The Lifetime Income Benefit Rider provides a benefit for the life of the insured if certain conditions are met, including by not limited to the insureds attained age being between age 60 and 85, and that the policy has been inforce at least 15 years. Insufficient policy values or outstanding policy loans may also restrict exercising the rider. Exercising the rider and receiving an income benefit will reduce the policys cash value and death benefit and may terminate other riders or reduce their benefits.

7 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Receipt of accelerated benefits will reduce the cash value and death benefit and may result in a taxable event. Clients should consult with their personal tax advisor to determine the tax status of any benefits paid under the rider and with social service agencies to concerning how receipt of such a payment will affect their or their familys eligibility for public assistance. Riders are optional and may not be available in all states. What can be more costly than an unexpected death? With todays medical and technological advances, people can live longer lives with a long-term illness which comes with a cost. Life insurance can provide living benefits to help with the expenses of a long-term illness. Surviving an Illness

8 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. A permanent life insurance policy can offer your clients: Death Benefit protection in case they die too soon The ability to accumulate cash value tax- deferred and the option to use the Lifetime Income Benefit Rider to take income for life Access to policy values in the event of a Terminal, Chronic or Critical illness

9 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. The Life Event Story

10 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. The Clients A young married couple, both age 35 The couple has a 8-year-old son Their Needs Financial protection in the event of: o death, or o illness Cash accumulation that may be used for: o emergencies, o future college expenses, and o retirement income

11 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. The Solution: They purchase an Indexed Universal Life policy on Mark FlexLife Indexed Universal Life Insurance Policy Assumptions: $1,000,000 IUL Option A Face Amount; Age 35 Male; Standard Non-Smoker; $950 check-o-matic monthly premium. Premium paid all years except in years of withdrawals, ABR benefit distribution and receipt of LIBR benefit. Illustrated Rate 8.3%; S&P 500 Point-to-Point Index Strategy LSW FlexLife and all applicable riders are issued and underwritten by Life Insurance Company of the SouthWest. NL FlexLife and all applicable riders are issued and underwritten by National Life Insurance Company. Riders are optional, may be available at additional cost, and may not be available in all states or on all products. Values on the following slides are based on an assumed crediting rate of 8.3% annually. The benefit and values shown are not guaranteed. Actual results may be more or less favorable.

12 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Life Stage 1 – Family Protection Death Benefit protection to replace income in the event Mark dies prematurely. Policy provides $1,000,000 Death Benefit protection on Mark Cash value grows tax-deferred In years 11 through 14 they take tax-free withdrawals of $5,000 per year to help with sons college expenses. Policy loans and withdrawals reduce the policys cash value and death benefit and may result in a taxable event. Surrender charges may reduce the policys cash value in early year. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender.

13 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Life Stage 2 – Illness 20 years later, Mark is diagnosed with Multiple Sclerosis Uses ABR Chronic Benefit to replace lost wages and to make home improvements to accommodate his illness. Receipt of accelerated benefits will reduce the policys cash value and death benefit, may result in a taxable event, and may affect the clients eligibility for public assistance programs. Reducing policy values too much may reduce or eliminate other rider benefits. $40,000 ABR Benefit each year for three years

14 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Life Stage 3 - Retirement Income At 65, Mark decides to exercise the Lifetime Income Benefit Rider. Once elected, lifetime income payments – guaranteed! Supplements other sources of retirement income: 401(k), Annuity and Social Security Exercising the rider results in loans and withdrawals against the policy, reducing the death benefit and cash surrender value, but will never reduce the death benefit to less than $15,000, nor the cash surrender value to less than $1,000. Exercising the rider may terminate other riders or reduce their benefits. Insufficient policy values or outstanding policy loans may also restrict exercising the rider. There is a charge during the benefit period. Guarantees are dependent upon the claims-paying ability of the insurer. Annual LIBR Benefit (based on current assumptions) Yrs. 31 - 35:$39,430 Yrs. 36 - 40:$39,997 Yrs. 41 - 46:$40,186 Ratchet Benefit increase every 5 years

15 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. The Final Life Event – Mike Passes Away The remaining death benefit is paid to Beth She is financially secure and her income needs are met. Beth helps with their grandchildrens college expenses Mike passes at age 80 $646,849 Death Benefit

16 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Premiums Paid vs. Benefits Received Total Premium Paid$ 262,200 Withdrawals for College$ 20,000 ABR Benefits$ 120,000 LIBR Benefits$ 638,266 Remaining Death Benefit$ 646,849 $1,415,115 Total Net Benefit$1,152,915 Based on an illustrated rate of 8.3% for all years of the policy. This is not guaranteed. At the guaranteed rate of 2.5%, the policy is unable to support any withdrawals.

17 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public. Protection for all Stages of Life Provide an ongoing legacy to his Grandchildren Protect What Matters Most By purchasing a permanent policy in his early Thirties, Mark was able to: Provide protection for his family should he die prematurely, and help fund his sons college education. Accelerate a portion of the DB to help meet costs associated with his MS. Guarantee lifetime income benefit payments to supplement his retirement.

18 National Life Insurance Company ® | Life Insurance Company of the Southwest For Agent Use Only - Not for use with the Public.


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