An Indexed Universal Life Plan AS AN ASSET BUILDER & AS A LEGACY… Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

“More than 40% of Americans say the reason they don’t have more life insurance is because of other financial priorities.” Facts About Life 2010, LIMRA Study Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

An Indexed Universal Life As An Asset Builder Protecting Your Accumulation Potential. Your policy’s potential cash value can accumulate tax deferred and never decrease due to market volatility. Options can include a fixed account; index accounts like the S&P 500 or blended indexes. Let’s take a look at how it can work for you. Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Traditional Ways To Build Assets CD’s Current Rate.40% Mutual Funds Expense Cost 1.26% Annuities Expense Cost 3% Managed MoneyExpense Cost 2% 401K Qualified Expense Cost 3% Savings Current Rate.005% Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Expenses Of Your IUL based on a 45 year old standard smoker male, using an illustrated crediting rate of 8.50%. This rate is not guaranteed and is used as an example only of what current policy costs could be under current assumptions paying in $1,000 per month. Year 1; Death Benefit $220,892; Expenses $2,499; Account value $9,939 = 25.14% Year 10; Death Benefit $355,979; Expenses $2,804; Account Value $145,026 = 1.93% Year 11; Death Benefit $378,959; Expenses $1,816; Account Value $168,006 = 1.08% Year 20; Death Benefit $687,226; Expenses $3,351; Account Value $476,273 =.70% Year 30; Death Benefit $1,399,294; Expenses $7,097; Account Value $1,188,341 =.59% Let’s compare: Your current situation (expenses): 401(K) = 3% Mutual Funds = 1.26% CD =.40% (Interest Rate) – 2.1% (CPI) = 1.7% Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Liquidity “When you lose your job, the bank is not going to loan you money.” Qualified plan have 10% penalties by the government if you withdraw your money before age 59 ½ plus many have surrendered penalties and fees on top of that! Many CD’s have penalties forgoing your interest if you take them out early. Non qualified and qualified annuities have 10% penalties for withdrawals before age 59 ½ Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Take This Seriously You can always figure out what percentage of money you would like to put in your savings plan… BUT… NO one can tell you how much you will have when you leave the office for the last time! Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Liquidity – Indexed Universal Life Let’s take a look at YOUR plan… If something occurred in year five for instance, you would be able to withdraw or take a loan of $_________ from your account. Pay back as you can… “So, where do you think would be the BEST place to put your money?” Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Are Taxes Going Up or Down? “Today, After an era of very low taxes, we have enormous inequality and a huge deficit. Last time that happened the top tax rate soared!” National Taxpayers Union Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Taxation If you were a farmer, would you rather pay tax on the “seed” or the “harvest”? 25% on a pack of $5 seeds would cost you $ % on a $500 harvest… that would be $125. Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Taxation at Retirement Did you realize you can be taxed on your social security? Distributions from your 401k or other qualified account is deemed as income so the amount will go “against” your total income for the year. With tax free distributions through loans with your Indexed Universal Life Plan, it does NOT count as income! Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Taxation RMD’s – Required Minimum Distributions – Generally, you have to begin taking withdrawals from your IRA or retirement accounts when you reach 70 ½ There are NO RMD’s associated with an Indexed universal Life Plan. There are NO minimum or maximum contributions to an Indexed Universal Plan Distributions can be tax free through loans. Indexed Universal Plans account values are tax deferred. Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Arbitrage Taking advantage of a price difference between two or more markets. Example: participating Loan has a guaranteed 5% interest rate at purchase for the lifetime of the contract. In a year, where the plan was credited 10% in your strategy, you made 5%. In a year where the market was down and you were credited zero, you lost 5% Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Arbitrage Here’s the thing… looking back over our chart that we used earlier to see how a “14% cap” vs. the S&P fared, the market was actually up 12 out of the past 16 years! 3 out of 4. while historical figures are no guarantee tomorrow, it might make sense to look at the opportunity. Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

An Indexed Universal Life Plan as a Legacy The first law of Insurance states that you should insure first that which you can least afford to lose… your income, your health, and your life. Think about that for a minute. Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

An Indexed Universal Life Plan as a Legacy “Nearly 70% of American households with children under 18 would be in financial jeopardy if the primary breadwinner died.” –Facts about life, 2010 LIMRA study Life Insurance, if tragedy occurred, could provide: Income replacement Supplemental or pay for college funding Payments or pay off of mortgage and other debts Business succession Estate tax coverage Even final expenses Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

An Indexed Universal Life Plan as a Legacy Legacy – a gift, something handed down or received What is YOUR legacy? How do you wish to be remembered? Most people buy life insurance because they care deeply about someone of something (a favorite charity, etc.) or because they owe someone (death taxes, loans). Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

An Indexed Universal Life Plan as a Legacy Accelerated Death Benefit Rider – your policy would include a Chronic Illness rider. If you are unable to perform 2 of the 6 activities of daily living (bathing, continence, dressing, eating, toileting or transferring), your policy will pay (after a 90 day wait period) a portion not to exceed the death benefit. Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.

Lets take a look at YOUR plan Let’s compare and see if there is a potentially better method. Property of Ebbert Insurance Inc. Do not recreate, reproduce or Redistribute without permission.