Indianapolis Life Portfolio Review

1. Indianapolis LifePortfolio Review Presented by: Ronald W. Norvell CLU., ChFC. Vice President, Sales Development 1-888-565-6900 For Appointment & Product Support: Brian Ballard 800/ 473-2850, ext.23 -or- Brian@CureFinancial.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 FixedReturn 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* • 20 Years – Up to Age 35 • 15 Years – Ages 36-55 • 10 Years – Ages 56-75 • 5 Years – Ages 76+

6. Crown SolutionOur 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. 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 • Enhanced Loans Years 1-10 • Loans are charged 5% loan interest and receive 4.5% credited interest • 50 basis point spread • Preferred loans 11th+ years, (Zero Net Cost)

9. For Those who want a Traditional IndexedReturn product We have the VISTA SERIES

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

11. 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.

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

13. 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

14. 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%

15. 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!

16. 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.

17. Equity Indexed StrategyIllustrated 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% • Less volatility in illustrated rate 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.

18. Segments for premium $ BasicInterestStrategy at 5.00% (NET OF SALES CHARGES and COI’S) 0ne-YearFixed TermStrategy at 4.5% Five-YearEquity IndexedStrategy at 7.9% SIX-Year Equity IndexedStrategy at 8.3% One Year Five Years SIXYears MaturedValue MaturedValue MaturedValue

19. 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

20. Life Protector RiderSoon to be availableOn all products For Agent Use Only - Not For Use With The General Public Unique in the industry. Protects your clients and you.

21. 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

22. 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

23. 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

24. 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%.

25. Two Waiver ChoicesAvailable 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

26. 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

27. Target Premiumson 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 100 Target Premium

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

29. 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!

30. 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

31. Guaranteed Death Benefit

32. Automatic Death Benefit Extension To 115.

33. Guaranteed Rate of Return

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

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

37. 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.

38. Low cost beginning Notax outlay $22,000 for 4 years

39. $65,000 tax free for 20 years.

40. Total input Total outtake Death benefit In his nineties

41. 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.

42. Two car loans

43. $115,000 tax Free for 20 yrs.

44. 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.

47. 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.