1. Welcome to the Estate Planning Council of Greater Miami Due Diligence in Recommending the Correct Life Insurance Policy Presented by Michael W. Halloran, AEP, CLU ®, ChFC ®, CFP ® November 11, 2009

2. Establishing the Need for Coverage

3. Need Temporary need – term insurance Temporary need – term insurance Permanent – Continuing need Permanent – Continuing need

4. Term Coverage Annual Renewable Annual Renewable 10-20-30-Year Level 10-20-30-Year Level Renewable Renewable Convertible Convertible Waiver of Premium Waiver of Premium

5. Permanent or Continuing Need Whole Life Whole Life –Participating  Portfolio  New Money Variable Life Variable Life –Mortality and Expense Cost Universal Life Universal Life –No guarantees –Secondary guarantees  Mortality Table  Company Financial Ratings  Guarantees and Problems  Purpose of Cash Variable Universal Life Variable Universal Life –Investment Risk

6. Amount of Coverage Amount of Coverage  Estate  Business  Charitable

7. Understanding the Policy Illustration – –Pro forma – –Product Illustration   NAIC Illustration   Product enhancements (non-guaranteed)   Current experience   Past history   Current scale vs. portfolio method   Third party references

8. Professional Liability and Disclosure  Who are you liable to? –Policyowner –Insured –Beneficiaries  What happens if your recommendations are wrong?  How can you limit your liability?

9. Rating Agencies  A. M. Best  Fitch  Standard & Poor’s  Moody’s

10. Standard & Poor’s www.standardandpoors.comMoody’swww.moodys.comFitchwww.fitchratings.com A.M. Best www.ambest.com Superior AAA 13 AAApi 0 Exceptional Aaa 13 Highest AAA 9 Superior A++ 28 A+ 82 Excellent AA+ 11 AA 50 AApi 2 AA- 32 Excellent Aa1 13 Aa2 20 Aa3 37 Very High AA+ 27 AA 40 AA- 19 Excellent A 49 A- 34 Good A+ 8 A 14 Api 17 A- 10 Good A1 9 A2 8 A3 8 High A+ 15 A 9 A- 4 Very Good B++ 4 B+ 8 Adequate BBB+ 7 BBB 0 BBBpi 2 BBB- 1 Adequate Baa1 5 Baa2 0 Baa3 2 Adequate BBB+ 1 BBB 1 BBB- 1 Vulnerable/Fair B 0 B- 0 Vulnerable BB+ to R 5 Not Rated 56 Weak Ba1 to C 1 Not Rated 116 Non-investment grade BB+ to CCC- 0 Not Rated 97 Vulnerable C++ to F 0 Not Rated 18

11. Rates  Mortality  Expenses charges  Interest –Investing long –Investing short

12. Thank You! Questions? Questions?