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Life Insurance Company of the Southwest LR11404(0111) Survivorship Products Joshua Littrell Key Account Manager National Life Insurance Company ® | Life.

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Presentation on theme: "Life Insurance Company of the Southwest LR11404(0111) Survivorship Products Joshua Littrell Key Account Manager National Life Insurance Company ® | Life."— Presentation transcript:

1 Life Insurance Company of the Southwest LR11404(0111) Survivorship Products Joshua Littrell Key Account Manager 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. TC72205(0213)

2 Life Insurance Company of the Southwest LR11404(0111) Survivorship Product Overview SIUL Death BenefitVery Flexible PremiumFlexible Cash ValueInterest credits based on the changes in a major market index. Downside protection with upside potential All indices are unmanaged and you cannot invest directly in any market index. Guarantees are dependent upon the claims-paying ability of the issuing company.

3 Life Insurance Company of the Southwest LR11404(0111) NL & LSW LifeCycle Solution SIUL Not your typical Survivorship product. Cash value accumulation Survivor Protection Rider – 1 st Death Protection Besides the 2 nd death protection, is also attracitve for: o Potential source of retirement income through policy loans and withdrawals, or using LIBR* o Short funding estate preservation approach o Business Protection and Continuation Strategies Minimum Interest Rate of 2.5% at death or surrender

4 Life Insurance Company of the Southwest LR11404(0111) NL & LSW LifeCycle Solution Availability & Options Issue Age Min Face Amount Max Face Amount Rate ClassRiders 0-85 (age nearest birthday) $250,000Subject to underwriting & reinsurance Six rate classes that vary on clients’ combined rate classifications ABR: Terminal, Chronic & Critical Add’l Protection Benefit Balance Sheet Benefit Death Benefit Protection Estate Preservation LIBR Policy Split Options Overloan Protection* Survivor Protection Systematic Allocation *Substantial limitations apply to exercising the Overloan Protection Rider, including that the policy be in force for at least 15 years and the insured having attained the age of 75.

5 Life Insurance Company of the Southwest LR11404(0111) Individual vs. Survivorship? One Insured Need for death benefit protection for both insureds Need for ABR benefits on both insureds Wants to have their policy purchased through their pension plan Two Insureds Most concerned about death benefit at the second death Possibly looking for some death benefit protection at the first death Health issues or not insurable ABR benefits for Surviving Insured Consider Individual Policies Consider Survivorship Policies

6 Life Insurance Company of the Southwest LR11404(0111) One Policy vs. Two Value isn’t always measured in Dollars and Cents

7 Life Insurance Company of the Southwest LR11404(0111) Survivorship Sales Ideas

8 Life Insurance Company of the Southwest LR11404(0111) When Survivorship Is The Product of Choice Case facts Husband and wife; husband primary bread winner Husband has some health issues Both husband and wife need a survivor benefit Interested in the Tax-Free Retirement Strategy Insure just the Wife Insure just the Husband The use of cash value life insurance to provide a tax-free source of retirement assumes that there is first a need for the death benefit protection. Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. 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. Surrender charges may reduce the policy’s cash value in early years.

9 Life Insurance Company of the Southwest LR11404(0111) Insure both Husband and Wife When Survivorship Is The Product of Choice

10 Life Insurance Company of the Southwest LR11404(0111) Being an Advocate

11 Life Insurance Company of the Southwest LR11404(0111) Multigenerational Planning

12 Life Insurance Company of the Southwest LR11404(0111) Grandparent or Parent Gifting Opportunity * Grandparent makes annual gift to trust Trust uses gift as premium source Trustee can use policy cash value, through loans and withdrawals, to make lifetime distributions to Grandchild for such needs as college expenses, home purchase etc. 2 Survivor Protection Rider, payable at grandparent’s death, can be used to pay ongoing premiums Trust purchases Insurance policy insuring Grandparent and Grandchild Trust is Owner and Beneficiary After grandparent’s death, the Accelerated Benefit Riders can be added to provide benefits during Grandchild’s lifetime in the event of Terminal, Chronic or Critical Illness Death proceeds ultimately create a legacy for Grandchild’s family Retirement Income can be guaranteed for life once the Lifetime Income Benefit Rider is exercised Riders are optional, may be available at additional cost, and may not be available in all states. *Assumes Grandparent dies first 1. Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. 2. Policy loans and withdrawals will reduce the policy’s cash value and death benefit and may result in a taxable event. Surrender values in the early years may reduce policy values. 3. Certain criteria must be met to exercise the rider including but not limited to the insured’s attained age being between age 60 and 85, and that the policy has been in-force at least 10 years. Insufficient policy values, outstanding policy loans and other considerations may also restrict exercising the rider. Receipt of income benefits will reduce the policy’s cash value and death benefit and may terminate other riders or reduce their benefits.

13 Life Insurance Company of the Southwest LR11404(0111) Special Needs Planning

14 Life Insurance Company of the Southwest LR11404(0111) Business Planning Case Facts Consulting Business Husband and Wife – 50/50 owners Key Person Protection

15 Life Insurance Company of the Southwest LR11404(0111) LifeCycle Solution Policy Survivor Protection Rider provides cash at first death to help carry business through transition period Cash Value grows tax- deferred while owned by the business BSB Rider provides a high cash value to premium paid for business balance sheet Business can access policy values for business needs or future executive benefit payments using policy loans and withdrawals* If both die, proceeds can be used to continue to run the business until buyer is found *Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Surrender charges may reduce the policy’s cash value in early years.

16 Life Insurance Company of the Southwest LR11404(0111) Thank You!

17 Life Insurance Company of the Southwest Annuity Product Overview Daniel Ulloa Annuity Wholesaler

18 Life Insurance Company of the Southwest LR11404(0111)

19 Life Insurance Company of the Southwest SecurePlus Paramount 5

20 Life Insurance Company of the Southwest LR11404(0111) SecurePlus Paramount 5 Outstanding flexible premium deferred annuity for the 401 (k), 403(b), 457(b), IRA and NQ Markets Available with our Guaranteed Lifetime Income Rider* Compliant (state and broker dealer friendly) *Guarantees based on claims paying ability of the company. Rider available at an additional cost.

21 Life Insurance Company of the Southwest LR11404(0111) 5% Immediate Interest Credit Applied to every premium paid in the first 7 Policy Years That’s 105% of the premium earning interest from the date of payment or receipt of premium Fully vested immediately – no strings attached

22 Life Insurance Company of the Southwest LR11404(0111) Availability –Maximum Issue age: 80 –Available for 401 (k), 403(b), 457(b), IRA, Roth IRA, Simple IRA, SEP IRA, Roth 403(b)

23 Life Insurance Company of the Southwest LR11404(0111) Policy Year Issue Age %9%8%7%6%5%4%3%2%1%0% * 59+ 8¼ % 7¼ % 6¼ %5%4%3%2%1%0% *Only applies to AK, AL, CA, DE, MN, NV, NJ, OH, OR, SC, TX, UT, WA, if available Withdrawal Charges –Declining Withdrawal Charge – 10 Years –No MVA!

24 Life Insurance Company of the Southwest SecurePlus Preferred 6 & Preferred 6 GLIR

25 Life Insurance Company of the Southwest LR11404(0111) SecurePlus Preferred 6 Highlights Plan TypesQualified or Non-qualified except 412(i) Bonus Accumulation Value6% of the Accumulation Value vesting in years Issue Ages0-80 (Actual Age) Minimum Premium$10,000 Maximum Premium$ 1,000,000 (0-75), $ 350,000 (76-80) Free Withdrawals10% of the Accumulation Value each year after the first Policy yr Withdrawal Charge % 10, 9, 8, 7, 6, 5, 4, 3, 2, 1, 0 (Reduced for age 59+ in some states) Riders (where approved)Nursing Home and Terminal Illness at no additional cost Income RidersPreferred 6 GLIR at an additional cost (required on all sales) Special Enhanced Life Income (SELI)- in approved states Available after 5th Policy Year if Annuitant is at least 55 and cannot perform 2 of 6 ADLs permanently – annuitization benefit LoansYes 403(b) and 457(b), up to 50% of cash value if plan permits Guaranteed Minimum87.5% of the premium paid growing at a rate between 1-3% based on formula on file at state department of insurance.

26 Life Insurance Company of the Southwest LR11404(0111) SecurePlus Preferred 6 Delivers 6% Bonus Accumulation Value – vests 1/5th per year in years –BAV included in the death benefit day-one Guaranteed Lifetime Income Rider* –The Preferred 6 GLIR – includes 6% BAV beginning day one Extra Features - at no additional cost –Special Enhanced Life Income Options where approved –Nursing Care and Terminal Illness Riders where approved *GLIR currently required on all sales

27 National Life Insurance Company ® | Life Insurance Company of the Southwest™ Form 10750(0612); LR Agent Use Only Example - Accumulation Phase 55-year-old purchases $100,000 SecurePlus Preferred 6 with the Preferred 6 GLIR LSW SecurePlus Preferred 6 Accumulation Value Day One - $100,000 3%* Average Interest Credited Annually Net Of Rider Charges (*This is a hypothetical rate, and it is not guaranteed. The rate will vary.) AV End of Year 10 - $134,392 Guaranteed Lifetime Income Rider Benefit Calculation Base Day One - 106, % Compounding Roll Up Rate End of Year ,829

28 National Life Insurance Company ® | Life Insurance Company of the Southwest™ Form 10750(0612); LR Agent Use Only Guaranteed Withdrawal Payments are elected at Age 65, Level Income Option Example - Distribution Phase SecurePlus Preferred 6 Accumulation Value (example only) End of Year 10 $134,392 GWP - $ 8,542 AV after Withdrawal $125, % interest* + $ 4,719 (*Hypothetical rate) Rider Charge - $ 1,173 $129,396 GWP - $ 8,542 BAV Transfer + $ 1,612 AV end of yr 11 $122,466 Guaranteed Lifetime Income Rider Benefit Calculation Base End of Year ,829 Lifetime Income Calculation 189,829 X 4.5% (Guaranteed Withdrawal age of 65) $8,542 Guaranteed Income for Life The greater of the Accumulation Value or Benefit Calculation Base

29 National Life Insurance Company ® | Life Insurance Company of the Southwest™ Form 10750(0612); LR Agent Use Only What Would you Choose? 90 BPs Income rider Calculated of $134,392 For a cost of $ (declining) After 20 years $20, BPs Income Rider Calculated of $189,829 For a cost of $ (level) After 20 years $34,189.20

30 National Life Insurance Company ® | Life Insurance Company of the Southwest™ Form 10750(0612); LR Agent Use Only Nursing Care Rider Provides access to some or all of the accumulation value without withdrawal charges Available after the first policy years and once the policyowner is confined to a nursing facility for 60 consecutive days If under the age of 76 at issue then up to $250,000 of the accumulation value may be withdrawn without withdrawal charges If 76 or older at issue 25 percent of the accumulation value may be withdrawn at one time without withdrawal charges in place of the 10 percent free withdrawal Not available in all states

31 National Life Insurance Company ® | Life Insurance Company of the Southwest™ Form 10750(0612); LR Agent Use Only Terminal Illness Rider Allows for up to $250,000 to be withdrawn without application of withdrawal charges Available if the onset of the illness is after the first policy year Diagnosed terminal within 12 months Not available in all states

32 National Life Insurance Company ® | Life Insurance Company of the Southwest™ Form 10750(0612); LR Agent Use Only What Are Your Next Steps? How I Will Work with You Answer questions by phone or Determine your target markets and how to utilize these annuities Provide WebEx’s presentations and make you an expert in our products Increase your overall production and annual income


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