SecurePlus Provider Indexed Universal For Agent Use Only- Not For Use With the Public TC28713(0506)

For Agent Use Only-Not For Use With the Public

SecurePlus Provider Why IUL? The Basics of Indexed Crediting What is SecurePlus Provider? Policy Mechanics – Premium Flow Crediting Strategies Policy Loans SecurePlus Prospects Available Riders Summary SecurePlus Provider Indexed Universal Life (UIL), form series 8212/8212D(0305), is underwritten by Life Insurance Company of the Southwest, Dallas, Texas. Riders are optional, may require an additional premium and may not be available in all states.

For Agent Use Only-Not For Use With the Public Why IUL?

For Agent Use Only-Not For Use With the Public IA Sales are exploding! $27.2 billion in 2005 Why? – Consumers are looking for “safe money places” with the upside potential for greater interest than with fixed annuities Advantage Index Product Sales Report – 4th Quarter 2005, February 2006 Why IUL?

For Agent Use Only-Not For Use With the Public Why IUL? Flexible premiums, adjustable benefits Interest Crediting Strategies – Potential to significantly outperform Fixed UL over the long-term Appeals to a growing segment of the market

For Agent Use Only-Not For Use With the Public S&P 500  Index S&P  is a general indicator used to measure overall Large Cap performance of U.S. stock market Index performance is only used for measurement – An investment cannot be made directly into an index LSW invests premium received: Large portion is directed to a portfolio of Government Bonds, Corporate Bonds and Mortgages (providing for the guarantees) Small portion is directed to purchase options “Standard and Poor’s ®,” “S&P ®,” “Standard and Poor’s 500,” and “500,” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by National Life Insurance Company. The product is not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability of investing in the Product. The S&P Composite Index of 500 stocks (S&P500 ® ) is a group of unmanaged securities widely regarded by investors to be representative of large-company stocks in general.

For Agent Use Only-Not For Use With the Public S&P 500  Performance Compared to IUL Performance IUL S&P 500 

For Agent Use Only-Not For Use With the Public Indexed Crediting

For Agent Use Only-Not For Use With the Public The Basics of Indexed Crediting Index – For SecurePlus Provider, the index is the S&P 500 ® Indexed Segment – A specific “bucket” of money which earns indexed interest credits Indexed Interest – The interest credit earned by an indexed segment for a given year

For Agent Use Only-Not For Use With the Public Fixed-Interest Strategy – uses an interest rate declared by the Company Point-to-Point Strategy – compares the Ending Index Value to the Starting Index Value Point-to-Average Strategy – compares the Average Index Value to the Starting Index Value The Basics of Indexed Crediting

For Agent Use Only-Not For Use With the Public Starting Index Value - The value of the Index on the first day of the year-long index crediting period Ending Index Value – The value of the Index on the last day of the year-long index crediting period Average Index Value – The average daily value of the Index over the 12 month index crediting period Annual Reset – at the end of a Policy Segment Year, the Starting Index Value is set equal to the prior year’s Ending Index Value The Basics of Indexed Crediting

For Agent Use Only-Not For Use With the Public Participation Rate – The percentage of the Annual Index Growth that the policyholder is eligible to receive in a given year, subject to application of the Cap Cap – The maximum indexed interest credit the policyholder is eligible to receive in a given year, subject to the Participation Rate Floor – The minimum indexed interest credit the policyholder is eligible to receive in a given year The Basics of Indexed Crediting

For Agent Use Only-Not For Use With the Public  Calculate the Annual Index Growth  Indexed Interest Credit  Multiplying this by the Participation Rate  Result can be no higher than the Cap and no lower than the Floor The Basics of Indexed Crediting

For Agent Use Only-Not For Use With the Public SecurePlus Provider

For Agent Use Only-Not For Use With the Public SecurePlus Provider LSW’s next-generation, highly competitive Indexed Universal Life (IUL) product A unique and flexible package Combines living benefits with LSW’s indexed product expertise A product worth getting excited about

For Agent Use Only-Not For Use With the Public SecurePlus Provider Issue ages:0- 85 (age last birthday) Minimum Face Amount:$25,000 Rate Classes:Preferred NonTobacco Verified & Express Standard NonTobacco Preferred & Standard Tobacco Substandard:Table ratings & flat extras available on Standard NonTobacco and Tobacco Minimum Premium:$25.00 / month Surrender Charge Schedule:Ten-year declining charge Account Value Enhancement:1.25% beginning at the end of policy year 10 Policy Loans & Withdrawals:Available after the first policy year (Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event.)

For Agent Use Only-Not For Use With the Public Policy Mechanics

For Agent Use Only-Not For Use With the Public Premium Flow  Premium flows into Basic Strategy  Money in excess of anticipated charges swept  Sweep dates - 21 st of each month  Excess funds transferred to chosen interest option(s) Policy Mechanics

For Agent Use Only-Not For Use With the Public

Basic Strategy Premium payments are credited to the Basic Strategy Fixed crediting rate (2% minimum) Monthly policy charges taken from Basic Strategy Minimum Value = 12 months of policy charges On the 21 st of each month, excess funds are transferred (“swept”) to the three interest crediting strategies Allocations for future funds can be changed at any time

For Agent Use Only-Not For Use With the Public Crediting Strategies

For Agent Use Only-Not For Use With the Public Fixed-Interest Strategy Each transfer creates a new segment Each segment has a length of five-years 2% minimum interest crediting rate Crediting rate for segment subject to reset annually, but anticipated to remain level for full five years If crediting rate on segment declines, policyholder has option to transfer funds out At the end of five-year term, value is transferred back to Basic Strategy for reallocation

For Agent Use Only-Not For Use With the Public Point-to-Point Strategy Each transfer creates a new five-year segment Index growth calculated annually by comparing ending S&P 500 ® value to starting value Participation Rate, Cap, and Floor applied to Index Growth to determine annual interest credit 100% Participation Rate, varying Cap, 0% Floor, and an Annual Reset

For Agent Use Only-Not For Use With the Public Point-to-Point Strategy Participation Rate and Cap are set annually, in advance for each segment 2% compounded minimum interest rate over five-year term (10.4%) – guaranteed At the end of five-year term, value is transferred back to Basic Strategy for reallocation

For Agent Use Only-Not For Use With the Public Point – To – Point Start Value 1000 End Value 1200 S&P 500 ® Increase 20% Participation Rate 100% Cap 12% Interest Credit = 12% Hypothetical Example Step 1. Measure the S&P 500 ® on day of sweep Step 2. Measure the S&P 500® one year later Step 3. Determine if there is an increase Step 4. Apply the Participation Rate, Cap & Floor 1/21/2006 1/21/ Point-to-Point Strategy

For Agent Use Only-Not For Use With the Public Point-to-Average Strategy Each transfer creates a new five-year Segment Index growth calculated annually by comparing starting S&P 500 ® value to average daily value Participation Rate, Cap, and Floor applied to Index Growth to determine annual interest credit No Cap, varying Participation Rate, 0% Floor, and an Annual Reset

For Agent Use Only-Not For Use With the Public Point-to-Average Strategy Participation Rate and Cap are set annually, in advance for each segment 2% compounded over minimum interest rate over five- year term (10.4%) – guaranteed At the end of five-year term, value is transferred back to Basic Strategy for reallocation

For Agent Use Only-Not For Use With the Public Point – To – Average Start Value 1000 “Average” Value 1100 S&P 500 ® Increase: 10% 90% Participation Rate No Cap Interest Credit = 9% Hypothetical Example Step 1. Determine S&P 500 ® value on day of sweep Step 2.Average the daily S&P 500 ® values for the year Step 3. Determine if there is an increase Step 4. Apply the Participation Rate, Cap and Floor Point-to-Average Strategy Average /21/2005 1/21/

For Agent Use Only-Not For Use With the Public Interest Strategy Considerations Point-to-Point Sensitive to short-term market movement - both positive or negative Point-to-Average Less sensitive to short-term market moves – more sensitive to overall trend Single Premium % to Fixed Interest (to cover future contract charges)

For Agent Use Only-Not For Use With the Public Policy Loans

For Agent Use Only-Not For Use With the Public Variable Loan Option Policy loans and withdrawals will reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the policy and policy loans thereafter would not create an immediate taxable event, but substantial tax ramifications could result upon policy lapse or surrender. If the policy were classified as a Modified Endowment Contract (MEC) all distributions would be considered taxable income. Variable loan rate subject to change on anniversary Variable Loans - Loan amount does not reduce the Fixed Interest or Indexed Account values Loaned funds continue to earn interest (including indexed credits) as if no loan had occurred

For Agent Use Only-Not For Use With the Public Fixed Net Cost Loan Option Policy loans and withdrawals will reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the policy and policy loans thereafter would not create an immediate taxable event, but substantial tax ramifications could result upon policy lapse or surrender. If the policy were classified as a Modified Endowment Contract (MEC) all distributions would be considered taxable income. Provides a true “wash loan” Available at the beginning of year % of loaned amount is eligible Loan interest is credited and charged on the policy anniversary Contractually guaranteed benefit in contract

For Agent Use Only-Not For Use With the Public Available Riders

For Agent Use Only-Not For Use With the Public SecurePlus Provider Riders Accelerated Benefits – Terminal Illness – Chronic Illness – Critical Illness Accidental Death Benefit Children’s Term Disability Income 2-year 5-year Extension of Benefits Guaranteed Insurability Long-Term Care Other Insured Unemployment Waiver of Target Premium Overloan Protection NEW! Riders are optional, may require an additional premium and may not be available in all states. Use of living benefits riders reduce the policy’s cash value and death benefit and may result in a taxable event.

For Agent Use Only-Not For Use With the Public Terminal Illness resulting in death within two years Lump-sum distribution (discounted from death benefit) Funds can be used for anything No additional cost Policy form series no. 8052(0798) Accelerated Benefits Rider 1

For Agent Use Only-Not For Use With the Public Chronically ill Unable to perform 2 of 6 ADLs or cognitive impairment 90-day waiting period Max. monthly benefit calculated as 2% of the net death benefit (actual payment is discounted) Must be in force for two years before benefits become available Funds can be used for anything No additional cost Policy form series no. 8095(0399) Accelerated Benefits Rider 2

For Agent Use Only-Not For Use With the Public Activities of Daily Living Bathing Continence Dressing Eating Toileting Transferring Cognitive Impairment Short-term or long-term memory impairment Loss of orientation to people, places or time Deductive or abstract reasoning impairment Accelerated Benefits Rider 2

For Agent Use Only-Not For Use With the Public Critical Illness Heart Attack Stroke Cancer* End stage renal failure* Major organ transplant ALS (Lou Gehrig’s disease)* Blindness Lump-sum distribution (discounted from death benefit) Funds can be used for anything No additional cost *Upon diagnosis Policy form series no. 8165(0703)* Upon diagnosis Accelerated Benefits Rider 3

For Agent Use Only-Not For Use With the Public Chronically ill Unable to perform two of six ADLs or cognitive impairment 90-day waiting period Max. monthly benefit of 2% of death benefit for nursing home or home health care or 1% for adult day care Funds must be used for long-term care costs Premium remains level Policy premiums or monthly charges are waived while LTC benefits are being paid Issue ages May not be available in all states. Rider name may vary by state. Policy form series no. 8096(0899) Long-Term Care Rider

For Agent Use Only-Not For Use With the Public Provides LTC benefits after ABR2 or LTC Rider benefits have been exhausted Max. monthly benefit of 1% of initial face amount for nursing home or home health care or.5% for adult day care Funds must be used for long-term care costs Benefits are paid for life Premiums remain level Inflation protection available 5% annual compounded increase Starting at policy issue Issue ages May not be available in all states. Rider name may vary by state. Policy form series no. 8097(0899) Extension of Benefits Rider

For Agent Use Only-Not For Use With the Public Two-year payout period Available to both Primary Insured and Primary Other Insured 3-month waiting period Benefits paid retroactively Own occupation Min. monthly benefit = $300 Max. monthly benefit = $2,000 Premiums remain level Issue ages 18 – 55 Some occupations are ineligible Policy form series no. 8054(0798) Disability Income Rider

For Agent Use Only-Not For Use With the Public Five-year payout period 6-month waiting period No retroactive benefits Own occupation first 2 years ~ any occupation suited for thereafter Min. monthly benefit = $300 Max. monthly benefit = $2,000 Premiums remain level Policy form series no. 8065(0798) Disability Income Rider

For Agent Use Only-Not For Use With the Public Waives the policy premium when the insured is totally disabled 6-month elimination period Premiums remain level Issue ages Policy form series no. 8053(0798) Waiver of Target Premium Rider (WTP)

For Agent Use Only-Not For Use With the Public Low-cost renewable term insurance Spouse Child Business Partner Min. amount = 25,000 Max. amount = base policy face amount Rider stays in force to other insured’s age 100 as long as base policy remains in force Issue ages Policy form series no. 8053(0798) Other Insured Rider

For Agent Use Only-Not For Use With the Public Provides term insurance on all of the insured’s children until age 23 Coverage per child: Min. = $5,000 Max. = $25,000 New children added automatically Convertible to whole life or UL at any time or for double the rider face amount at age 23, marriage, or death of the primary insured Issue ages 15 days - 17 years Policy form series no. 8057(0798) Children’s Term Rider

For Agent Use Only-Not For Use With the Public Accidental Death Benefit Rider 1 Guaranteed Insurability Rider 2 Unemployment Rider 3 Other Riders 1 Form series 8050(0798), 2 Form series 8051(0798), 3 Form series 8058(0798)

For Agent Use Only-Not For Use With the Public NEW! Overloan Protection Rider Riders are optional, may require an additional premium and may not be available in all states. To prevent a tax liability from a policy loan Policy becomes “paid-up” at the point that the policy is about to lapse Features: Age 75 or greater and policy in force for at least 15 years Policy in the corridor Loans at least equal to 95% of policy’s accumulated value Not available on CVAT No additional cost until the rider is exercised Policyholder will be notified when eligibility requirements are met

For Agent Use Only-Not For Use With the Public Additional Enhancements

For Agent Use Only-Not For Use With the Public Additional Enhancements Surrender Charge Cap Additional Point-to-Point Strategy NOW available

For Agent Use Only-Not For Use With the Public Prospects

For Agent Use Only-Not For Use With the Public SecurePlus Provider Prospects Individuals Death benefit protection with tax deferred cash accumulation Retirement Income Funding Education Costs Emergency Fund

For Agent Use Only-Not For Use With the Public Individuals Protection of existing assets from erosion due to final expenses Long-term care expense reimbursement through the LTC rider Acceleration of the death benefit in cases of chronic or terminal illness through the ABR riders SecurePlus Provider Prospects

For Agent Use Only-Not For Use With the Public Business Market Buy-Sell Agreements Executive Bonus Plans Non-Qualified Deferred Compensation Key Employee Protection SecurePlus Provider Prospects

For Agent Use Only-Not For Use With the Public Estate Planning Management of Estate Taxes Settlement Costs Probate Expense or Estate Administration Costs Liquidity to Protect Assets from Forced Sale SecurePlus Provider Prospects

For Agent Use Only-Not For Use With the Public Summary

For Agent Use Only-Not For Use With the Public SecurePlus Provider Options – provide the best plan for your clients Three interest crediting strategies: 1. Point-to-Point (2 options) 2. Point-to-Average 3. Fixed Interest Total customization with available riders Two death benefit options Two loan options

For Agent Use Only-Not For Use With the Public Guarantees* – provide certainty in an uncertain world 100% Participation Rate (Point-to-Point) No Cap (Point-to-Average) 2% minimum interest rate on Basic and Fixed Interest strategies Guaranteed interest of at least 2% annually over a five year segment for indexed strategies Five-year policy protection period SecurePlus Provider *Guarantees are dependent upon the claims-paying ability of the issuing company.

For Agent Use Only-Not For Use With the Public SecurePlus Provider Flexibility – provide the ability to meet your clients changing needs Powerful loan options 1035 Exchanges with existing loans Access to death benefit for “Living Benefits”

For Agent Use Only-Not For Use With the Public Value – competitive premiums with potential for excellent performance Ten-year declining surrender charge 125 bps credited to accumulated cash value starting at the end of contract year ten Revolutionary no-cost living benefit riders SecurePlus Provider

For Agent Use Only-Not For Use With the Public The Competition Competition AmerUS / Indianapolis Life Allianz American General F & G National Western Life Pacific Life Union Central

For Agent Use Only-Not For Use With the Public Competitive Advantages High lifetime rolling targets Ten-year surrender period No surrender charges on excess premium Three interest crediting strategies 125 bps account value enhancement Revolutionary rider suite 1035 Exchanges with loans (50%) Marketing materials 2 Loan options

For Agent Use Only-Not For Use With the Public SecurePlus Provider Rates As of August 1, 2006 Point-to-Point Strategy Participation Rate Guaranteed 100% Cap 12% Illustrated – 8.0% Participation Rate Guaranteed 140% Cap 10% Illustrated – 7.4% Point-to-Average Strategy Participation Rate 130% Cap Guaranteed No Cap Illustrated Rate – 8.9% Fixed Interest Rate – 4.75 Basic Strategy % Illustration system will automatically “blend” rate based on allocation chosen Minimum Guaranteed Cap 3%; Minimum Guaranteed Participation Rate 30% *The 4% planned rate is not guaranteed. Actual interest credited may be higher or lower. A B

Thank You! For Agent Use Only-Not For Use With The Public