Lifetime Legacy

1. Lifetime Legacy Americo Financial Life and Annuity Insurance Company Product Training

2. Life Insurance • What is Life Insurance? • Peace of Mind • Business Tool • Family Protection • Retirement Tool

3. Life Insurance • Life Insurance Questions • How much life insurance does a client need? • What kind of life insurance should your client buy? • When is the best time for your client to purchase life insurance? • Which company should you represent?

4. Life Insurance • How much life insurance does a client need? • How much of a legacy do they want to leave behind? • How much debt do they want to pay off for family? • How long do they want to subsidize the lost income from their death? • What responsibilities do they have that may become a burden on family?

5. Life Insurance • What kind of life insurance should your client buy? • Term or Permanent

6. Life Insurance • When is the best time for your client to purchase life insurance? • Younger and healthier clients usually get lower rates. • If you wait too long, you take the risk of not qualifying for any insurance.

7. Life Insurance • Which company should you represent? • A company that offers: • Strong Ratings • Competitive Products • Great Service

8. Agent Training Presentation Disclosures This presentation was designed to assist Americo agents in understanding and presenting Lifetime Legacy. Please review and take note of the following general disclosures: • This is a summary overview of the product. Please refer to the Product Agent Guide and the policy for specific details. • Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give tax or legal advice. Clients should consult with a qualified, professional legal or tax advisor regarding the information and concepts contained in this material. • The product availability may vary by state. Please refer to the Product Ready for Sale Guide on Agent Café for specifics. • Any materials not provided by Americo that are used in presenting Lifetime Legacy to clients or agents must be approved in writing by Americo prior to use. • Lifetime Legacy is a flexible premium universal life insurance product. It is not a bank product, nor is it FDIC insured. It is not a LONG-TERM CARE product. Policy Series 258

9. Lifetime Legacy • Market • Product Positioning • How It Works • Features & Benefits • Simple Underwriting • Sales Ideas • Marketing Package Policy Series 258

10. Lifetime Legacy Market • Senior market • Growing market The US Senior market (individuals above 65) is expected to nearly double between 2000 and 2020.* *Insurance Advisory Board, “Generations as Markets,” January, 2003 Policy Series 258

11. Lifetime Legacy Market • From 1998 to 2052, the amount of wealth transferred as a result of death is projected to be between $41 and $136 trillion.* • Total annuity consideration is over $2 trillion in the last 10 years. • Only a small percentage annuitize. • LIMRA estimates that 80% of policyholders die with their annuities in the accumulation stage. * Boston College Social Welfare Research Institute, “Why the $41 trillion Wealth Transfer Estimate is still Valid: A review of Challenges and Question.”, January 6, 2005 Policy Series 258

12. Lifetime Legacy Market • Annuities and other financial vehicles are being used to transfer wealth from one generation to the next. • By design • By accident • May not be the most efficient transfer method Policy Series 258

13. Lifetime Legacy Market • Client Profile • Money in CDs, Money Market Accounts, annuities, cash value life insurance, etc. • Don’t need this money for income • Worried about health emergencies…nursing home confinement • Want to leave the greatest possible legacy How many times have you asked your clients if they have an asset that is specifically meant for loved ones? Policy Series 258

14. CDs, Money Market Accounts, Cash Life Insurance Annuities Lifetime Legacy Market Where are seniors storing their savings? Policy Series 258

15. Lifetime Legacy – How it works • The problem: • Annuities are excellent accumulation tools • Not the best vehicles to transfer wealth to loved ones • Beneficiaries pay the taxes • May significantly reduce the amount of wealth transferred Policy Series 258

16. Lifetime Legacy – How it works • The solution: • Lifetime Legacy puts the control over taxes back in the hands of the client • Provides the beneficiaries with a guaranteed death benefit generally free from income taxes • May substantially increase the amount of wealth transferred Policy Series 258

17. Lifetime Legacy – How it works • Other major concerns for seniors • Losing their retirement “nest egg” • Losing their independence • Becoming a burden on the family • Emergencies Policy Series 258

18. Lifetime Legacy • Common “Emergency” Needs for Cash • Medical Bills • A New Car • Vacations • Nursing Home Expenses Policy Series 258

19. Lifetime Legacy • In 2002, nursing home care cost, on average, was roughly $50,000 per year.* • The older population (ages 65 or older) was numbered 35.6 million in 2003, an increase of 3.3 million, or 10.2% since 1992.** *“Beyond 50: A Report to the Nation on Trends in Health Security,” AARP, May 2002 **”A Profile of Older Americans: 2003”, Administration on Aging Policy Series 258

20. Lifetime Legacy - Highlights • Efficient Transfer to Loved Ones • Immediate increase in the value of the asset • Passes generally income tax-free • Avoid the costs & delays of probate • Guaranteed Minimum Death Benefit for Life • No additional premiums necessary • Assuming no loans or withdrawals • Guaranteed Cash Surrender Value • Guaranteed to never be less than the initial premium after the 5th policy year The minimum guaranteed death benefit is equal to the initial specified amount assuming no loans, withdrawals or accelerations are taken. Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give legal or tax advice. Consult a qualified legal or tax advisor regarding the information and concepts contained in this material. Policy Series 258

21. Lifetime Legacy - Highlights • Accelerated Benefit Rider • Up to 80% of the Guaranteed Minimum Death Benefit available* • Permanent confinement to a nursing home • Skilled, intermediate care or custodial care • 90 Day elimination period • Terminal Illness (12 months life expectancy) • Lump sum available • Quarterly or semi-annual • Not Long Term Care Insurance *80% of the guaranteed minimum death benefit less any policy loans Policy Series 258

22. Lifetime Legacy - Highlights • Access to Cash • Withdrawals after the 5th policy year • Reduces the Guaranteed Minimum Death Benefit by a proportional amount • Guarantees stay intact • Policy loans after the 1st year • Net 2.5% to the client The minimum guaranteed death benefit is equal to the initial specified amount assuming no loans, withdrawals or accelerations are taken. Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give legal or tax advice. Consult a qualified professional legal or tax advisor regarding the information and concepts contained in this material. Policy Series 258

23. Lifetime Legacy - Highlights • Target issue ages 55 to 85 • Minimum single premium $15,000 • Maximum single premium • Premium that generates no more than $150,000 Net Amount at Risk • NAR over $150,000 with Home Office approval Policy Series 258

24. Lifetime Legacy - Highlights What is Net Amount At Risk? For underwriting purposes, the Net Amount at Risk is the difference between the Initial Guaranteed Minimum Death Benefit and the Initial Single Premium. For example: Female, Non-Nicotine, Age 65 (+) Initial Guaranteed Minimum Death Benefit: $115,207 (-) Initial Single Premium: $50,000 (=) Net Amount at Risk (NAR): $65,207 Policy Series 258

25. Lifetime Legacy - Highlights • No commission chargeback at death or surrender • Non-qualified money only • Beneficiary payout options • No restriction payout – lump sum or any other payout option available by contract • Monthly restriction payout – monthly payments of death benefit over a period of no less than 60 months Policy Series 258

26. Lifetime Legacy - Software • No NAIC illustration required • Quoting guarantees only • Simple • Comparative funding • Repositioning from annuities – tax-deferred accounts • Repositioning from CDs – taxable accounts • Sales-oriented output Policy Series 258

27. Lifetime Legacy - Software Policy Series 258

28. Lifetime Legacy - Software Policy Series 258

29. Lifetime Legacy - Software Policy Series 258

30. Policy Summary • Benefits • Graphical Comparison Policy Series 258

31. Policy Summary • Summary of assets repositioned • What is the real value today? • Comparison to Lifetime Legacy Policy Series 258

32. Policy Summary • Guaranteed values • Run to age 100 or for 6 years • Will show loans and withdrawals Policy Series 258

33. Underwriting Requirements • Case specific information • Forms by state • Underwriting requirements Policy Series 258

34. Worksheet & Disclosure • Required disclosure • Optional worksheet • Summarizes software input • Available at Relizon and on Agent Café Policy Series 258

35. Lifetime Legacy - Underwriting • Specially designed • Senior market • Fast & efficient • Simplified Issue – Standard through Table 4 • Specially designed application • Minimal health questions • MIB Authorization & Accelerated Benefit Disclosure included Policy Series 258

36. Net Amount at Risk Age $0 – 100,000 $100,000 – 150,000 55-60 61-65 Telephone Interview APS (if necessary) 66-70 71-75 76-80 81-85 Telephone Interview & APS - Paramed & HOS if necessary Lifetime Legacy - Underwriting • Simplified Issue • Based on Net Amount at Risk Policy Series 258

37. Lifetime Legacy - Underwriting • Teleunderwriting • Point of Sale • Toll-free number • Complete details in Agent Guide Policy Series 258

38. Lifetime Legacy - Underwriting • Underwriting tools • Impairment Guide • Combination Impairment Guide • Both on Agent Café & in Agent Guide • Prescription Drug Guide on Agent Café • Direct Access to your underwriter Policy Series 258

39. Lifetime Legacy - Underwriting • Our goal: Easy to do business • Paper • Application • Disclosure & Benefit Worksheet • Transfer & replacement forms by state • All on Super Agent Kit & Agent Café Policy Series 258

40. Lifetime Legacy • Guarantees • Death Benefit • Cash Values • High Death Benefit • Competitive Commissions • Accelerated Death Benefit • Simplicity Policy Series 258

41. Lifetime Legacy • Variety of product types • Variety of benefits • Lifetime Legacy takes the best of all worlds • Death Benefit • Guarantees • Commissions • Underwriting • Competitive Policy Series 258

42. Lifetime Legacy • Lifetime Legacy Kit • Agent Guide • Q&A for clients and agents • Client Brochure • Client Video • Software • New Agent CD – Special edition Policy Series 258

43. Lifetime Legacy • Your Clients that may… • Have reached retirement age. (ages 55 to 85). • Already have sufficient retirement income. • Have sufficient assets to maintain desired lifestyle. • Have no need for complicated estate planning. • Want to leave the greatest possible legacy to heirs. • Be in reasonably good health. • Have assets that are earmarked for loved ones or charities. Policy Series 258

44. Lifetime Legacy • Earmarked assets are in • Annuities • CDs • Money Market Accounts • Outdated cash value life insurance policies Policy Series 258

45. Lifetime Legacy Case #1 Example: A 65 year old female, non-nicotine purchasing the Lifetime Legacy with an initial premium of $50,000. Initial Guaranteed Minimum Death Benefit 1 Single Premium $115,207 $50,000 For Illustrative Purposes Only Policy Series 258

46. Lifetime Legacy Case #1 Accelerated Benefit Rider Series 2149 Example: A 65 year old female, non-nicotine purchasing the Lifetime Legacy with an initial premium of $50,000. Initial Guaranteed Minimum Death Benefit 1 Accelerated Benefit Amount Available 2 Single Premium $115,207 $92,166 $50,000 For Illustrative Purposes Only Policy Series 258

47. Lifetime Legacy Case #2 65 year old female, non-nicotine Current Portfolio 1 Portfolio with the $50,000 CD repositioned to Lifetime Legacy 2 1 For Illustrative Purposes Only Policy Series 258

48. Lifetime Legacy Case #3 Your client has two grandchildren. She would like to leave a legacy in the amount of $100,000 to each child. She has $100,000 in an annuity earning 5.5%. She is 69 years old and is disappointed that she may not make her goal. $100,078 Single Premium = $200,000 Lifetime Legacy Policy Series 258

49. Lifetime Legacy – The Package • Specifically designed for the senior wealth transfer market • Guaranteed lifetime death benefit • Guaranteed cash surrender values • Easy to understand • Competitive commissions • Simplified underwriting • Living Benefits • Access to cash Policy Series 258

50. Lifetime Legacy – The Package • Quote software with comparative capabilities • No NAIC illustration required • Agent training and recruiting materials • Sales ideas • Client video and sales materials • Personalized sales support Policy Series 258