Life Insurance with Living Benefits

2. Life Insurance with Living Benefits “Life insurance you don’t have to die to use”

3. DIE TO SOON, LIVE TOO LONG, OR GET SICK… Consumer Financial Concerns Cash Value Accumulation Money for Future Plans Disability Benefits in case you become disabled AcceleratedLiving Benefits Terminal, Chronic, or Critical illness riders Life Insurance Protection for your family

4. DIE TO SOON, LIVE TOO LONG, OR GET SICK… Many Consumers Don’t Want to Pay for Three Different Policies Life LTC $$$ / Month Is there another alternative?

5. What Can Happen to You? You may become Terminally or Critically Ill HEART ATTACK About every 34 seconds, someone in the United States has a myocardial infarction (heart attack).1 STROKE On average, a stroke occurs every 40 seconds.2 CANCER A new cancer is diagnosed every 30 seconds in the United States.3 1 in 2 men and women will be diagnosed with cancer in their lifetime.4 • 1. “About Heart Attacks” American Heart Association. 12 June 2011. http://www.heart.org/HEARTORG/Conditions/HeartAttack/AboutHeartAttacks/About-Heart-Attacks_UCM_002038_Article.jsp (24 April 2012). • 2.“Impact of Stoke” American Stoke Association. 18 April 2012. http://www.strokeassociation.org/STROKEORG/AboutStroke/Impact-of-Stroke_UCM_310728_Article.jsp (24 April 2012). • 3. “Cancer Facts & the War on Cancer” National Cancer Institute. 2012. http://training.seer.cancer.gov/disease/war/ (24 April 2012). • 4. “SEER Stat Fact Sheets: All Sites” National Cancer Institute. 2012. http://seer.cancer.gov/statfacts/html/all.html (25 April 2012).

6. The chance of survival… Heart Attack – 60% Stroke – 70% Breast Cancer – 87% Prostate Cancer – 98%1 1. “Critical Illness Statistics” Pinney Insurance Center, 2012. http://www.pinneyinsurance.com/critical-illness/statistics.php (13 April 2012). 2. “National Survey of Households Affected by Cancer” The USA Today/Kaiser Family Foundation/Harvard School of Public Health, November 2006. http://www.kff.org/kaiserpolls/upload/7591.pdf (13 April 2012). 3Shaw LJ, Merz CNB, Pepine CJ, et al. The Economic Burden of Angina in Women With Suspected Ischemic Heart Disease: Results From the National Institutes of Health National Heart, Lung, and Blood Institute-Sponsored Women's Ischemia Syndrome Evaluation. Circulation. August 29, 2006 2006;114(9):894-904. 4. “The Real Risk That You’ll Have a Critical Illness” Facts About Critical Illness Insurance Coverage and Costs, 2012 http://www.criticalillnessinsuranceinfo.org/ (13 April 2012). Yet, what about financial survival? • Nearly half of people whose families have been affected by cancer say the costs of cancer care were a burden on their family, including one in six who say such costs were a MAJOR burden.2 • One in eight people with advanced cancer turned down recommended care because of cost.3 • The cost of a severe heart attack – including direct and indirect costs – is about $1 million.4 • 1.5 million Americans will declare bankruptcy this year and 60% are due to medical bills.

7. What Can Happen to You? You may become Chronically Ill Chronic Illness affects many people and can create additional expenses for a family. Some of these expenses may include: Nursing Home Cost for a Private Room For nursing home care, the national monthly average is now $6,266, which translates into $75,190 annually. 1 Assisted Living Facility For assisted living facilities the national monthly average is now $3,185, which translates into $38,220 annually.1 Home Health Aide (Certified) For Home Heath Aide, the national monthly average is now $3,623, which translates into $43,472 annually. 1 1 1. “Cost of Care Survey” Genworth 2012. http://www.retirementguard.com/files/library/2010_Cost_of_Care_Survey_Full_Report.pdf (13 April 2012).

8. The Worst Can Happen. You may die too soon The proportion of U.S. adults with life insurance protection has declined to an all-time low as 41 percent (95 million) of U.S. adults have no life insurance at all.1 And half of U.S. households now believe they are underinsured.2 • Think about this…the median income in the USA is roughly $60,000.00… • Given a standard retirement age of 65, what would your potential earning power be until you reach that age? Let’s assume a 3% annual growth for inflation, etc…. • 1. “Facts About Life 2011” LIMRA, 2011. http://www.limra.com/newscenter/pressmaterials/11FOL.pdf (13 April 2012). • 2.“Household Trends in U.S. Life Insurance Ownership” LIMRA, 2012. http://www.limra.com/abstracts/abstract.aspx?fid=10627 (13 April 2012)

9. ABR: Terminal Illness Terminal illness is determined by a condition resulting from injury or illness which, as determined by a physician, has reduced life expectancy to not more than 24 months (12 months in VT & PA). This rider allows the insured to accelerate up to 100% (max of $1.5 Million) of the policy’s death benefit in the event of a terminal illness. Alliance Marketing Group, LC is an independent contractor representing National Life Insurance Company

10. ABR: Chronic Illness Chronically ill is being unable to perform 2 of 6 activities of daily living (bathing, continence, dressing, toileting, eating, and transferring) without assistance from another person or being cognitively impaired. Additional Info: 90 day waiting period Can accelerate up to 2% of death benefit per month, or 24% annually Max lifetime benefit is $1,500,000 The policy must be in-force for 2 years before benefits are available Bathing Dressing Toileting Eating Continence Transferring *The maximum total amount of lifetime benefits for an Insured under all Critical and Chronic Illness Benefit Riders is $1,000,000 Alliance Marketing Group, LC is an independent contractor representing National Life Insurance Company

11. ABR: Critical Illness • Allows the insured to accelerate his/her death benefit if they are critically ill • Critical Illness includes diagnosis of cancer, heart attack, stroke, ALS, kidney failure, major organ transplant & blindness • 30 day waiting period • Max lifetime benefit is $1,000,000 *The maximum total amount of lifetime benefits for an Insured under all Critical and Chronic Illness Benefit Riders is $1,000,000 Alliance Marketing Group, LC is an independent contractor representing National Life Insurance Company

12. Male 45 $1,000,000 Face Amount

13. What normally happens when you suffer a Critical or Chronic Illness? Expenses Income

14. Income Vs Expenses Additional Income From Living Benefits!!! Your Family’s Income DEBT Time off Work Recovery Time Deductibles Your Family’s Expenses Co-Pays

15. Income Vs Expenses

16. 48 - 48 - 60What do these numbers mean? 48% of mortgage foreclosures are the result of financial hardship due to critical Illness (only 3% due to death).1 48% of businesses that fail, fail because of a critical illness.2 60% or more of all bankruptcies are directly tied to medical conditions such as critical illnesses, and around 80% of the individuals were already covered by health insurance.3 1.Get Sick, Get Out: The Medical Causes of Home Foreclosures" Health Matrix, 2008. 2.Goldstein, Mark, “Critical Illness Insurance 101” http://ezinearticles.com/?Critical-Illness-Insurance-101&id=4450375 (13 April 2012). 3.“More People are Surviving Critical Illnesses…” United States Critical Illness Insurance Resource Center, 2012. http://criticalillnesspolicies.com/insurance-coverage/critical-illness-statistics/ (13 April 2012).

18. ALLIANCE GROUP TESTIMONIAL VIDEO: The Dudley’s Check out our website to view testimonials: www.anallianceforlife.com

19. National Life • Founded in 1848 • Montpelier, VT • National in Scope

20. We Are Financially Strong Financial Strength ratings for National Life Insurance Company and Life Insurance Company of the Southwest Ratings are current as of March 31, 2012 and are subject to change.

22. Term Insurance with Living Benefits “Life insurance you don’t have to die to use”

24. Level Premium TERM With Living Benefits With LSW's term insurance, you can be prepared to meet your family’s major life event needs under a single, affordable life insurance policy. It’s a revolutionary solution we call… LIFE INSURANCE YOU DON’T HAVE TO DIE TO USE

25. LSW Term • Middle to upper middle market • 10, 15, 20, and 30 year term periods (G & NG) • Minimum face amount - $50,000 • Good for the conversion policy and Mortgage Protection Sales • Not good for a long term solution sale but good temporary product • Oral Swab up to $200k thru 50, $100k thru 60, and $50k thru 70

26. LSW Term

28. LSW IUL’s: WHY IUL? WHY NOW? LSW Fixed UL Products

29. LSW IUL’s: WHY IUL? WHY NOW? LSW Foundation UL • Middle to upper middle market • Current fixed rate of 5% • Issue ages 0-85 • Minimum face amount - $25,000 • 15-year surrender charge period • Good for the low MMP sales and Mortgage Protection Sales • Not good for a long term solution sale • Oral Swab up to $200k thru 50, $100k thru 60, and $50k thru 70

30. LSW IUL’s: WHY IUL? WHY NOW? LSW Income Builder UL • Middle to upper middle market and high income earners • Current fixed rate of 5.35% and a Guarantee of 3% • Issue ages 0-85 • Minimum face amount - $100,000 • 15-year surrender charge period • Good for Endowment Sales • Good for a long term solution sale • .5% Int rate enhancement in year 6 and a .6% in year 21 • Full Medical product

31. LSW IUL’s: WHY IUL? WHY NOW? LSW Indexed UL Products

32. LSW IUL’s: WHY IUL? WHY NOW? Interest Crediting Strategies • Basic • Fixed • Point-to-Point, Cap Focus, S&P • Point-to-Point, Participation Rate Focus, S&P • Point-to-Point, no Cap, S&P • Point-to-Average, no Cap, S&P • Point-to-Point, MSCI Index

33. LSW IUL’s: WHY IUL? WHY NOW? SecurePlus® Provider • Middle to upper middle market • Upside potential without the risk of losses • Issue ages 0-85 • Minimum face amount - $25,000 • 4 interest crediting strategies • 1.25% Annual Account Value Enhancement starting at year 10 • 10-year surrender charge period • Lifetime Income Benefit Rider • No routine medical testing up to $250k age 65 & under

34. Underwriting Program – No Routine Medical Testing Face Amount must be $250,000 or less Client must be age 65 or younger Applies to base policy insured and OIRs Faster processing 4 – 7 days Standard at best No option to be underwritten for Preferred LSW IUL’s: WHY IUL? WHY NOW? • Rate Class Available • Verified Standard NT • Express Standard NT • Standard Tobacco • All substandard risk classes are available This is not a guaranteed issue program. The company reserves the right to require additional requirements as deemed necessary.

35. LSW IUL’s: WHY IUL? WHY NOW? SecurePlus® Provider

36. LSW IUL’s: WHY IUL? WHY NOW? LSW FlexLife • 4th Generation IUL • Upside potential, no risk for loss • Business or affluent/emerging affluent clients • Issue ages 0-85 • Minimum Face: $100,000 5 interest crediting strategies • Price banding at $250k, $1MM, and $3MM • Account value enhancement of .35% beginning in yr 10 • 10 yr surrender period • Lifetime Income Benefit Rider

37. LSW IUL’s: WHY IUL? WHY NOW? LSW FlexLife

38. Consumer Financial Concerns Cash Value Accumulation Money for Future Plans Disability Benefits in case you become disabled AcceleratedLiving Benefits Terminal, Chronic, or Critical illness riders Life Insurance Protection for your family

39. Lifetime Income Benefit Rider Income For Life – Guaranteed Once conditions* are met and the rider is exercised. *The Lifetime Income Benefit Rider provides a benefit for the life of the insured if certain conditions are met, including but not limited to the insured’s attained age being between age 60 and 85, and that the policy has been inforce for at least 10 years (15 years for SecurePlus Provider). Insufficient policy values, outstanding policy loans and other considerations may also restrict exercising the rider. Receipt of income benefits will reduce the policy’s cash value and death benefit and may terminate other riders or reduce their benefits. There is a monthly charge from the accumulated value during the income payment period. Guarantees are dependent upon the claims-paying ability of the issuing company.

40. LIBR – Giving Your Clients More Flexibility • Now available on all IUL products • NL and LSW Flex Life • NL and LSW LifeCycle Solution • LSW Advantage 79 • NL Ultra Select • LSW SecurePlus Provider Also available on in-force* New New New *Including LSW SecurePlus Paragon

41. Lifetime Income Benefit Rider

42. Product Introduction & Enhancements Introducing a Whole New Way of Life Products issued by National Life Insurance Company® | Life Insurance Company of the Southwest™ TC70222(0912)

43. What Is Whole Life? Whole life is a type of permanent life insurance. How is it different? Guarantees!1 guaranteed death benefit guaranteed cash value accumulation guaranteed premiums …for the whole life of the insured 1Guarantees are dependent upon the claims-paying ability of the issuing company. Products issued by National Life Insurance Company® | Life Insurance Company of the Southwest™

44. Why Whole Life? “The biggest driver behind both total premium and policy count growth continues to be Whole Life. It remains very attractive to consumers looking for security of premium and cash value guarantees along with lifetime coverage” – Ashley Durham, Sr. Analyst, LIMRA 2012 Products issued by National Life Insurance Company® | Life Insurance Company of the Southwest™

45. LSW ProtectorLife – Guarantees* Guaranteed Death Benefit Guaranteed Level Premium Guaranteed Cash Value *Guarantees are dependent upon the claims-paying ability of the issuing company. Products issued by Life Insurance Company of the Southwest™

46. LSW ProtectorLife – Availability Issue Ages: 0-85 Age nearest birthday Minimum Face Amount: $25,000* Maximum Face Amount: $500,000** 7 Rate Classes; No table ratings Preferred Non-Tobacco Verified Standard Non-Tobacco Express Non-Tobacco 1 Express Non-Tobacco 2 Preferred Tobacco Verified Standard Tobacco Express Tobacco *The minimum base face will be lower when an Automatic Conversion Rider is on the policy. **No $500,000 face limitation for all policies sold inside Qualified Plans Products issued by Life Insurance Company of the Southwest™

47. LSW ProtectorLife – Underwriting Convenience No routine medical testing required for a face amounts of $250,000 or less and age 65 or younger. Ease of doing business is important to us, and it’s just as important to your clients. Not available on Preferred Class Ratings Products issued by Life Insurance Company of the Southwest™

48. LSW ProtectorLife – Living Benefits Accelerated Benefit Riders Terminal Illness Chronic Illness Critical Illness Receipt of accelerated benefits will reduce the cash value and death benefit, may be a taxable event and may effect eligibility for public assistance programs.

49. LSW ProtectorLife – Family Protection Other Insured Rider Covers the insured’s spouse or civil union partner 20 year level term with increasing premiums after year 20 Convertible Issue ages for Rider: 20-65 (Preferred & Standard Rate Classes) 20-60 (Express Standard Rate Classes) Minimum Face Amount for Rider: $25,000 Maximum Face Amount For Rider: Policy Face Amount (combination WL/ACR face amount) Children’s Term Rider Up to $25,000 of coverage on each Child Products issued by Life Insurance Company of the Southwest™

50. Sales Desk LSW Sales Desk 800.906.3310 Life (Option #1) Annuities (Option #2)