Endorsement Split Dollar Plans Reward & retain key executives ©2014 Voya Services Company. All rights reserved. CN

Important disclosures  The Voya™ Life Companies and their agents and representatives do not give tax or legal advice. This information is general in nature and not comprehensive, the applicable laws change frequently and the strategies suggested may not be suitable for everyone. You should seek advice from your tax and legal advisors regarding your individual situation.  These materials are not intended to and cannot be used to avoid tax penalties and they were prepared to support the promotion or marketing of the matters addressed in this document. Each taxpayer should seek advice from an independent tax advisor.  Variable insurance products are subject to investment risk, are not guaranteed and will fluctuate in value. In addition, there is no guarantee that any variable investment option will meet its stated objective.

©2014 Voya Services Company. All rights reserved. CN Important disclosures  Life insurance products are issued by ReliaStar Life Insurance Company (Minneapolis, MN), ReliaStar Life Insurance Company of New York (Woodbury, NY) and Security Life of Denver Insurance Company (Denver, CO). Variable universal life insurance products are distributed by Voya America Equities, Inc. Within the state of New York, only ReliaStar Life Insurance Company of New York is admitted and its products issued. All are members of the Voya™ family of companies.  Before investing, carefully consider your need for life insurance coverage and the charges and expenses of the variable universal life insurance policy. Also consider the investment objectives, risks, fees, and charges of each underlying variable investment option. This and other information is contained in the prospectuses for the variable universal life insurance policy and the underlying variable investment options. Obtain these prospectuses from your registered representative, by calling , or from Voya.com and read them carefully before investing.  All guarantees are based on the financial strength and claims paying ability of the issuing insurance company, who is solely responsible for all obligations under its policies.

©2014 Voya Services Company. All rights reserved. CN Introducing Endorsement Split Dollar Plans  Simple plan design

©2014 Voya Services Company. All rights reserved. CN Introducing Endorsement Split Dollar Plans  Simple plan design  Death benefit for executive’s beneficiaries

©2014 Voya Services Company. All rights reserved. CN Introducing Endorsement Split Dollar Plans  Simple plan design  Death benefit for executive’s beneficiaries  Cost recovery for employer

©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans  Employer promises benefit to Executive’s survivors upon his or her death  Employer purchases life insurance to fund promised benefit  Executive taxed annually on “economic benefit”  Death benefit is received by Executive’s beneficiaries income tax-free* * Proceeds from an insurance policy are generally income tax free (e.g., absent a transfer for value), and if properly structured, may also be free from estate tax.

©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans Employer Split Dollar Agreement 1 Executive

©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans EmployerExecutive 2 Voya Life Companies 1 Split Dollar Agreement IRS 2

©2014 Voya Services Company. All rights reserved. CN Employer 2 Voya Life Companies Endorsement Split Dollar Plans Executive IRS 2 Split Dollar Agreement

©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans Advantages  Cost recovery available to employer¹  Can be structured to avoid some or all of ERISA reporting and disclosure requirements  Simple plan administration  Death benefit received by executive’s survivors income tax-free² Disadvantages  No supplemental retirement income provided  No “Golden Handcuffing”  Employee is taxed annually on the economic benefit of the coverage ¹ Provided policy remains in force to key employee's death. ² Proceeds from an insurance policy are generally income tax free (e.g., absent a transfer for value), and if properly structured, may also be free from estate tax.

©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans in action Widget Corp. wants to reward and retain services of Dan Brown:  Wants simple plan design  Wants to provide death benefit  Wants arrangement that offers cost recovery for Employer

©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans in action Assume:  Dan Brown is 45 and in excellent health (preferred non-smoker)  Mr. Brown plans to retire from Widget Corp. in 20 years at age 65  Widget Corp. wants to provide Mr. Brown with death benefit protection for his family

©2014 Voya Services Company. All rights reserved. CN Endorsement Split Dollar Plans in action  Widget Corp. enters into split dollar agreement giving Dan Brown the right to designate the beneficiary of $500,000 of death benefits  Widget Corp. purchases a policy on Brown’s life and pays $9,653 per year in premiums for 20 years  Dan Brown will pay taxes each year on the economic benefit of $500,000 calculated in accordance with split dollar regulations  Upon Brown’s death, Widget Corp. recovers its premium payments  Any remaining death benefit is received by Mr. Brown's beneficiaries Hypothetical case:

©2014 Voya Services Company. All rights reserved. CN Using a generic UL policy, illustrated at 4.25% hypothetical current rate of return, male, age 45, preferred non-smoker: The information above illustrates how a universal life insurance policy may be used in connection with this concept to potentially achieve the results shown. It is purely hypothetical, is for illustrative purposes only and does not represent any specific product. Individual results will vary based on your age, gender, health, individual policy fees & charges including the cost of insurance. Endorsement Split Dollar Plans in action Hypothetical case:

©2014 Voya Services Company. All rights reserved. CN What has been accomplished?  Income tax-free death benefit for Executive’s beneficiaries*  Employer able to use life insurance to recover some or all of the costs of providing the benefit * Proceeds from an insurance policy are generally income tax free (e.g., absent a transfer for value), and if properly structured, may also be free from estate tax.

©2014 Voya Services Company. All rights reserved. CN Other considerations  Accumulated earnings tax. The IRS could argue that a split dollar arrangement for a substantial shareholder goes beyond the reasonable needs of the business and should therefore be subject to accumulated earnings tax calculations.  Sarbanes-Oxley. Public companies that execute plans with certain defined individuals (directors and executive officers) should consider whether the plan violates the Sarbanes-Oxley Act, which prohibits extensions of credit to such individuals.  Alternative minimum tax. A company with significant preference items should consider whether increases in policy cash values will be subject to the alternative minimum tax.

©2014 Voya Services Company. All rights reserved. CN Thank you!