1. For internal use only IUL Frequently Asked Questions Oct 20 2014 Licensed Conference Call

2. For internal use only Brief Introduction of Sale Flow of IUL (1) Review Financial Concepts Rule of 72, Tax effect on Investment, Financial aid Risk control Close

3. For internal use only (2) Introduce IUL interest credit strategy using illustration and explain functions of IUL Life insurance Emergency fund College funding Tax free Retirement Estate planning Close

4. For internal use only Questions need be answered Cost of IUL? How can life insurance company credit interest this way? Can we trust Life insurance company? Why choose this company, Nationwide, Pacific life or Western Reserve life?

5. For internal use only Cost Method (1) Compare Cost of Term and IUL

6. For internal use only IUL too expensive? For Internal Use Only 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, IUL 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, Term 20 years + 20 years

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8. IUL too expensive? For Internal Use Only 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, IUL Cost total: $5,252 + $4,800 + $14,625 + $26,602 = $51,279 Annual average cost : $1,281 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, Term 20 years + 20 years

9. For internal use only 9 Cost total: $408 *20 = $8,160 Cost total: $2,558 *20 = $51,160

10. For internal use only IUL too expensive? For Internal Use Only 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, IUL Cost total: $5,252 + $4,800 + $14,625 + $26,602 = $51,279 Annual average cost : $1,281 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, Term 20 years + 20 years Cost total: $8,160 + $51,160 = $59,320 Annual average cost : $1,483

11. For internal use only Nationwide IUL 50 years total insurance cost $ 53,957, average cost $ 1,079/year 30 Years old Male, Preferred plus rate class, 500K face amount From Age 30-80, total 50 years, IUL 30 Years old Male, Preferred plus rate class, 500K face amount From Age 30-80, total 50 years, Term 20 years + Term 20 years+ Term 10 years ING Term 50 years: $5,200+$19,600+$44,550= $ 69,350 Average cost $ 1,387/year

12. For internal use only 50 Years old Male, Preferred plus rate class, 500K face amount From Age 50-80, total 30 years, IUL Nationwide IUL Total cost insurance $ 53,431, average cost $1781/Year 50 Years old Male, Preferred plus rate class, 500K face amount From Age 50-80, total 30 years, Term 20 years + 10 years ING term Total insurance cost $64,150, Average cost $2138/year

13. For internal use only Method 2 Compare Cost and Earning

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17. Use nationwide Illustration software to get historical interest result.

18. For internal use only How can insurance company give 0-12% when market can be below 0? Premium $100 $104 Keep 100 untouched and use $4 to buy call option 100 + X Gain 15 Gain 8 Lose 5 $108 $112 $100 Call option result Credit to Client

19. For internal use only Life insurance company reliable? (1)We only choose company with rating A or above (2)Multi-layer protection (3)Life insurance company is safer than bank( article)

20. For internal use only Reinsurance (VUL policies) Reinsurance (Term policies) Reinsurance (…) Policyholder Bigger Insurance Company Life & Health Insurance Guarantee Association Insurance Company Acquired by Insurance company has relatively more layers protection than other financial institutions

21. For internal use only Life insurance company is safer than bank(article)

22. For internal use only Why pick this company? WRL/Transamerica ING Pacific Life Nationwide Through Crump Aviva Prudential John Hancock Total about 10 other companies

23. For internal use only After submitting the application: Keep in touch and follow up if they have questions. Lend the books to them to study and learn

24. For internal use only Policy delivery (1) Review IUL concepts (2) Company rating (3) Client or my example (4) Illustration with different ways to pay.

25. For internal use only Other questions: Guaranteed Cap rate is very low? On the illustration, in the guaranteed column, the policy will laps.

26. For internal use only After delivery Cash value needs waiting for one year to get interest and meanwhile, client will see premium charge, COI charge, they may call you……….

27. For internal use only Thanks