1. Indianapolis Life Portfolio Review Presented by: Ronald W. Norvell CLU., ChFC. Vice President, Sales Development 1-888-565-6900 uplife@aol.com

2. How to choose the right product Does your client want a Fixed or Indexed product? Why? Is your client more interested in Death Benefit, or Cash Accumulation? How important are the Guarantees? What is your Client’s premium tolerance? What are your commission requirements?

4. For Those who want a Traditional Fixed Return product We have the CROWN SOLUTION

5. Those wanting a more traditional Fixed Return UL product Credit rate is announced upfront and guaranteed for one year. Current credit rate is 5.9% The guaranteed rate for the life of the product is 4%. Included Basic No-Lapse* Included Basic No-Lapse* 20 Years – Up to Age 35 15 Years – Ages 36-55 10 Years – Ages 56-75 5 Years – Ages 76+

6. Crown Solution Our underwriting Matches up with term Ages 0-85 –Best Preferred non-tobacco 18-75 –Preferred non-tobacco and Preferred tobacco 18-85 Minimum Face Amount –$25,000 ages 0-17 –$50,000 ages 18 and over –$100,000 for Preferred and Best Preferred underwriting classes

7. Special Classes Maximum Special Class – Table 16 Ratings Payable to the Later of 20 years or age 65 Target Commissions Paid through Table 6

8. Loads and Expenses Premium Load – 5% all premiums Policy Fee - $6/month Level Monthly per Thousand Amount Varies by Age, Gender and Risk Class for First 10 Years –0% years 11+ Only a.25% spread taken on the portfolio

9. Premiums Flexible Guideline Premium Test –Best for continuous pay –Guideline Level Premiums Will Endow the Contract at Age 100 Cash Value Accumulation Test –Best for short pay

10. Great for 1035 Exchanges 1035 Loans Accepted if 50% or Less of Cash Value Enhanced Compensation Payable on Excess Premium Up to 4 Times Target 20% Free Partial Withdrawals Annually after First Year 20% Free Partial Withdrawals Annually after First Year Enhanced Loans Years 1-10 –Loans are charged 5% loan interest and receive 4.5% credited interest –50 basis point spread –Preferred loans 11 th + years, (Zero Net Cost)

11. For Those who want a Traditional Indexed Return product We have the VISTA SERIES

12. Three Equity Indexed Universal Life Products Vista Advantage – low target Vista Select – mid target – mid target Vista Elite -high target No variable licensing required to sell

13. Those who want a Potentially higher Indexed Return UL product Instead of a bond portfolio, The S&P index rate of return is used. Credit rate is announced at the end of a one or two year period depending on strategy selected. Current illustrated rate is 7.9% and 8.3%. The guaranteed rate for the life of the product is 2% over either a 5 year or 6 year period selected. No-Lapse Guarantee to age 115 is available on the Advantage product.

14. Keeping it simple, know these Concepts! Index & Index Earnings Participation Rate Cap Rate Segments The Six Guarantees Two Loan Capabilities

15. The S&P 500 Tracks 500 selected companies as an indicator of the growth in our economy S&P 500 Industry weightings How various industries were represented in the S&P 500 as of Jan. 22: Financials 18.2% Information technology 18.2% Health care 14.4% Consumer discretionary 12.9% Industrials 10.9% Consumer staples 8.4% Energy 6.1% Telecommunications 5.3% Utilities 3.1% Materials 2.5% Source: Standard & Poors

16. Index earnings Here is an example on how to calculate an index earnings. On Feb 6, 2004 the S&P500 closed at 1142.76 One year later, the S&P500 closes at 1284.56 1284.56 - 1142.76 141.80 / 1142.76 = 12.41%

17. Index earnings The all time S&P 500 high was March 24, 2000 at 1552.87 The lowest drop since that date was October 9, 2002 at 777. How much money would your client have lost? What is the S&P 500 today?

18. Participation rate 100% What you see is what you get!! All loads were taken out at the beginning of the portfolio period, therefore you have 100% guaranteed participation. The participation is guaranteed!

19. Cap Rates Today are 12% & 30% 100% participation rate guaranteed A 4% to 8% minimum annual cap guaranteed based on strategy Annual caps set in advance on segment anniversary Cap managed on a portfolio basis Cap rates will primarily raise and fall according to interest yield on bonds New premium and segment renewals move together.

20. Equity Indexed Strategy Illustrated Rate Basis 54 year look-back of historical S&P –January 1950 - December 2003 Performance results : One Year cap 12% cap 7.90% Two Year cap 30% cap 8.30% Two Year cap 30% cap 8.30% Less volatility in illustrated rate 1% change in cap only effects illustration.4% 1% change in cap only effects illustration.4% Note: The actual credited rate can be higher or lower, and will be based on actual S&P 500 index movement. Unlike the illustrated rate, the actual credited rates are likely to vary from year to year.

21. $ Basic Interest Strategy at 5.00% Matured Value One Year Five Years 0ne-Year Fixed Term Strategy at 4.5% Five-Year Equity Indexed Strategy at 7.9% (NET OF SALES CHARGES and COI’S) SIX-Year Equity Indexed Strategy at 8.3% Matured Value SIX Years Segments for premium

22. The Six Value-Added Guarantees Policy values protection Annual lock-in of index gains Annual Reset Guaranteed credited rate Life Protector Rider No Lapse Guarantee Rider –Even with a guaranteed conditional pay period

23. Two types of Loans Zero-Net cost loan (Preferred loan) Variable loan - This loan is from the company using your policy as collateral. Your policy earns at the index rate, while the company charges a variable loan.

24. Life Protector Rider Soon to be available On all products Unique in the industry. Protects your clients and you. For Agent Use Only - Not For Use With The General Public

25. Life Protector Rider Optional benefit Prevents policy from lapsing as a result of loan indebtedness May be added after policy issue without underwriting One-time charge at time rider is exercised

26. Life Protector Rider How It Works –Policy must be in force at least 15 years and insured must be at least age 75 –Triggered when total loan balance including interest equals 95.5% of the accumulated value –One-time charge of 4.0% of gross policy value, including any loan balance and interest –Loan balance continues to grow but it keeps the policy in force until the insured’s death

27. Life Protector Rider When the Rider Goes into Effect –No further premium is allowed –No further monthly deductions are taken –All other riders are discontinued Prevents policy from lapsing Provides beneficiary and agent additional peace of mind

28. Annual Premium $4,000 Per Year x 25 Years (Age 65) $100,000 Total Premium Paid Cash Value at Age 65 $178,346 Policy Loans Beginning Year 26 $18,000 Per Year Until Policy Lapses At Age 81 Total Policy Loans $226,070 Total of Loans Plus Interest $377,824 Gain at Policy Lapse $377,824 - $100,000 Premium Paid $277,824 Reportable Gain (Phantom Income) Life Protector Rider … What’s It Worth? Here’s what can happen to a policy WITHOUT the Life Protector Rider: Male | Age 40 | PNT | $250,000 Face Amount | Solution UL from AmerUs Life Insurance Group 50% Term Blend. Illustrated at 5.9%.

29. Two Waiver Choices Available on all UL’s Waiver of Monthly Deductions –All monthly deductions are waived if insured is totally disabled for at least six months –Ages 0-59 with coverage to age 65 Waiver of Specified Premium –The monthly premium specified under the rider is credited to the policy if the insured becomes totally disabled for at least six months –Ages 0-59 with coverage to age 65

30. No Cost Riders Waiver of Surrender Charge Due to Confinement –Annual withdrawal of up to 25% of net account value allowed if primary insured is confined to hospital or inpatient nursing facility for at least 30 consecutive days Accelerated Benefits Rider/Caring for Today Benefit –If insured is diagnosed with a life expectancy of 12 months or less they may access up to 50% of the base policy face amount

31. Other Riders Death Benefit Maturity Extension Rider –Provides for full death benefit to continue after age 100 without COI charges after age 100 –Can be added anytime to age 90 –Cost for rider is charged from ages 91-99 Accidental Death Benefit Guaranteed Purchase Option Additional Insured Rider (up to 5 additional insurers) –Spouse/other family members –Business partners/employees Children's Insurance Rider

32. Target Premiums on a 45 male StdNT 500K Horizon ULC 5,137.57 3,750.57 Crown 100k base 4,340.10 1,582.00 Crown All Comp 4,749.36 4,749.36 Crown All Base 5,157.75 7,910.00 Advantage NLG 4,548.00 4,550.00 Vista Select 4,719.58 5,930.00 Vista Elite 5,405.00 8,240.00 Premium Solve to 100Target Premium

33. Universal life Fixed Return Indexed Return Crown Solution Advantage Builder Vista Select Vision Builder All Base Commission Target Base & Term Blends Mid level Target Best for balanced Cash value buildup And Death Benefit Works best for 55+ clients

34. Universal life Fixed Return Indexed Return Crown Solution Advantage Builder Liberty Builder Vista Elite All Base Commission Target Base & Term Blends High Target Cash Accumulator Uses the index Has Variable loans

35. Universal life Fixed Return Indexed Return Crown Solution Advantage Builder Liberty Builder Vision Builder All Base Commission Target Base & Term Blends Low Cost Death Benefit Adjustable Cost with Term Blend

36. Universal life Fixed Return Indexed Return Crown Solution Advantage Builder Liberty Builder Vision Builder All Base Commission Target Base & Term Blends Provides !00% commissionable Premium Provides !00% commissionable Premium

37. Universal life Fixed Return Indexed Return Crown Solution Advantage Builder Liberty Builder Vision Builder All Base Commission Target Base & Term Blends Very High Target Fixed Rate UL. Great for 1035’s Short Pays Very High Target Fixed Rate UL. Great for 1035’s Short Pays

38. Five Major Markets Accumulation plans 1.Provides living benefits 1.Provides living benefits 2. Retirement plans 2. Retirement plans 3. College funding 3. College funding Guaranteed Death Benefit and Premium Sales Single Premium Sales Rescue sales Low Cost Death Benefits

39. Eight Sales Ideas Two Types of Single Pay, Are They Better than an Annuity? Start Cheap, Educate, Retire, leave a Legacy Be Your Own Banker!! Missed Opportunity? A Grandparent’s Choice 1035 Rescue of a dying policy with a loan. Planning for a Specific Income using Life Insurance A Chicago Guarantee!

40. Single Pay, better than an Annuity? Situation –62 year old female, preferred non tobacco –Wants to convert a jumbo CD of $100,000 to an annuity. –However would consider a permanent, guaranteed death benefit until age 100 to pass on to her heirs. –May want to withdraw funds in the future

41. Guaranteed Death Benefit

42. Automatic Death Benefit Extension To 115.

43. Guaranteed Rate of Return

44. Guaranteed D.B. Life Protector Rider 95% of cash value taken out

45. A Second Type of Single Pay 40 yr old male Single Pay of $100,000 Buys Patriot/Crown Solution using the CVAT.

47. Start Cheap, Educate and Retire, and leave a Legacy 30 yr old man with a 3 yr old son Needs $400,000 of life protection Wants to have money 15 years from now for college Want to have a retirement plan.

48. Low cost beginning $22,000 for 4 years No tax outlay

49. $65,000 tax free for 20 years.

50. Total input Total outtake Death benefit In his nineties

51. Be your Own Banker There are several methods to achieve this goal This example shows how a 35yr. old man can buy two luxury cars, in his life time, pay himself back, and increases his retirement. You can design the same, with an understanding on how to create repayments, which most of your competition can’t.

52. Two car loans

53. $115,000 tax Free for 20 yrs.

54. Missed Opportunity? A 35 yr old opts to pay interest only on a $250,000 mortgage. The cash flow savings, over a traditional 30 year fixed mortgage is $700/month. At current projection, he will be able to pay off his mortgage and generate retirement income. His Death Benefit is double his obligation.

57. Using Equity as a Tool Some suggest that home equity earns a Zero rate of return. By using a interest only loan, a 43 yr old man, borrows $250,000, and buys a SPIA The SPIA generates $4,500/month for 5 years.

61. A Grandparent’s Choice Grandparents are always looking to provide their grandchildren with unique gifts Why not insure the mother after birth with the grandparents annual gift exclusion. Provides protection for the child and a wonderful college fund.

63. A 1035 rescue of a dying policy with a loan We have a 60 yr. old male who has a $1,000,000 policy that has $200,000 of cash value, but also has a $100,000 loan against it. We have a 60 yr. old male who has a $1,000,000 policy that has $200,000 of cash value, but also has a $100,000 loan against it. He would like to not pay any more premium, but is worried about the policy lapsing and owing tax. He would like to not pay any more premium, but is worried about the policy lapsing and owing tax. Could we help him with our new LPR? Could we help him with our new LPR?

64. A 1035 exchange for $1,000,000 of original coverage The cash value in the exchange is $200,000 with a loan of $100,000 The D.B. begins to decline under the weight of the loan and mounting interest

65. The policy will lapse under the current assumptions at age 85

66. However, by using the new LPR, we can rescue this 1035 exchange and guarantee the policy will never lapse!

67. Need Specific Income? Today, the strongest need for planning is for distribution, for retirement. Wouldn’t be nice if we could determine the desired monthly income, and plan for it? Well, we almost can!! By stating the desired monthly income as an Annual, we can use a Minimum Death Benefit, and determine the Premium needed.

70. A Chicago Guarantee! I received a call from a Chicago agent wanting a guaranteed D.B. and Premium for a 43 year old man, for a Million dollars. After I ran the illustration, he asked me to show him putting more money in. He then asked, how many years his client would have to pay at the new level to have the same guarantees! That was his worst case scenario, he than could make a future decision to put addition premiums based upon a future look at the S&P.