Life Presentation: The “Box Method” by Steve Kane

1. Life Presentation: The “Box Method” by Steve Kane

2. Just the facts... One or more of these three things will happen to everyone: • We will live to retirement age, requiring substantial funds to live comfortably • Financial hardships or unexpected disability which can deplete your savings. • Premature death which would require substantial amounts of money to maintain your family’s lifestyle.

3. Just the facts... Unfortunately, there are so many products to chose from, choosing the “right” life insurance program for you and your family can be difficult to make. At Farmers Insurance, we believe that it is our professional responsibility to take the time to explain the options available to fill your specific needs. To do this, we have developed this program to explain a few types of products, in easy to follow language. To illustrate, let’s look at a 36 year old non-smoking female and compare products.

4. Decreasing Term Because a home mortgage is usually the largest liability most individuals have, many people love the idea of obtaining insurance to pay off the mortgage in the event of their death.

5. Decreasing Term The Decreasing Term policy is designed to decrease in coverage as the mortgage decreases over time. Although this is a nice concept, many people feel uncomfortable paying the same amount of monies and at the same time have the amount of coverage decreasing. In addition, the average duration people live in a home is between 7 - 10 years making this type of policy less than preferable as the new mortgage is often larger than the old. To obtain a new policy with higher coverage's, a new application and evidence of insurance is required. Decreasing Term Coverage Premium Year

6. Life Insurance Plan for: YOU Age: 36 Sex: F Non-Smoker: YES Coverage: $200,000 Decreasing Term 0 30 Decreasing Term Cost: $40.00

7. Level Protection By choosing a level protection plan, you can be rest assured the amount of coverage will not change during the policy term.

8. Level Protection Age: 36 Sex: F Non-Smoker: YES Coverage: $200,000 Although the amount of coverage will not change on this plan, the amount you pay in premium will continue to rise year after year. Because the odds are you will not die during the next 30 years, coupled with the fact this policy will not renew after age 69, less than 1% of the Decreasing Term and Level Protection policies pay a benefit. Level Protection Premium 0 30

9. Life Insurance Plan for: YOU Age: 36 Sex: F Non-Smoker: YES Coverage: $200,000 Level Protection 0 30 Level Protection Cost: $47.00

10. Life Insurance Plan for: YOU Age: 36 Sex: F Non-Smoker: YES Coverage: $200,000 Decreasing Term Level Protection 0 30 0 30 $ 40.00 $ 47.00

11. Money Back Plan By choosing the Money Back plan, if you do not die during the next 30 years, Farmers Insurance will give you your money back!!

12. Money Back Plan Because it is very likely that you will live beyond 65, many people enjoy a life insurance program that they know will be there when they need it. In addition to having a level death benefit, the “Money Back” plan will enable you to get your money back at age 65 if you are still living. Money Back Plan Cash Value $30,133 After 30 years, you would have put into the “Money Back” plan $27,000. At current interest rates, you will have over $30,000 returned to you at age 66!! This will be a nice addition to your retirement income. 0 30

13. Life Insurance Plan for: YOU Age: 36 Sex: F Non-Smoker: YES Coverage: $200,000 Money Back Plan 0 30 Money Back Plan Cost: $75.00

14. Life Insurance Plan for: YOU Age: 36 Sex: F Non-Smoker: YES Coverage: $200,000 Decreasing Term Level Protection Money Back Plan $30,133 0 30 0 30 0 30 $ 40.00 $ 47.00 $ 75.00

15. Life Time Coverage Plan The Lifetime Coverage plan ensures you and your family will have a lifetime of protection.

16. Life Time Coverage Plan Unfortunately, after retirement, many people live on a fixed income making it difficult to pay the increasing costs of life and health insurance. The Life Time Coverage plan enables you to pay premiums for 30 years, and after this period, you will not have to place another penny in the account to have the protection last until age 95! Life Time Coverage 0 30

17. Life Insurance Plan for: YOU Age: 36 Sex: F Non-Smoker: YES Coverage: $200,000 After 30 years, you would have put into the “Life Time Coverage” plan $38,976. At current interest rates, you will have over $63,500 at age 66!! This value will keep the policy in force for an additional 34 years! Life Time Coverage Continue coverage without ever having to make another payment again! $63,655 Age 36 66 95 $ 112.00 $ 0.00 ($38,976)

18. Life Insurance Plan for: YOU Age: 36 Sex: F Non-Smoker: YES Coverage: $200,000 Life Time Coverage 0 30 Life Time Coverage Cost: $112.00

19. Which Plan is right for: YOU ??? Age: 36 Sex: F Non-Smoker: YES Coverage: $200,000 Decreasing Term Level Protection Money Back Plan Life Time Coverage $63,655 $30,133 0 30 0 30 0 30 0 30 $ 40.00 $ 47.00 $ 75.00 $ 112.00 ($27,000) ($38,976)

20. Which Plan is right for: YOU ??? Age: Sex: Non-Smoker: Coverage: $ Decreasing Term Level Protection Money Back Plan Life Time Coverage $_____ $_____ 0 30 0 30 0 30 0 30 $ _______ $ ______ $ ______ $ ______ ($_____) ($_____)