Classic Solution Single Premium Whole Life

1. Classic Solution(Single Premium Whole Life)

2. Single Premium Whole Life Discussion Topics: Concept & Methods of �Wealth Transfer� Tax Time Bomb Introduction of our Single Premium Whole Life Policy � �Classic Solution�

3. What is �Efficient Wealth Transfer�? Assets pass to beneficiaries: Income Tax Free Avoid Probate Process.

4. Who Receives the Value of an Estate or �Nest Egg�? Beneficiaries: Family & Loved Ones Favorite Charity or Church IRS

5. What does a �Nest Egg� consist of? Mutual Funds Stocks & Bonds 401k�s & IRA�s Real Estate CD�s, Money Market Funds & Savings Annuities Life Insurance

6. Financial Concerns of Seniors Outliving Their �Nest Egg� Becoming Dependent on Others Taxes Inflation Inability to Leave Something ($) to Children & Grandchildren

7. What takes away from a �Nest Egg�? Inflation Income Taxes Capital Gains Tax Gift Taxes (Federal) Federal & State Estate Taxes Inheritance Taxes (State) Probate costs (executor commissions & attorney fees)

8. Wealth Transfer Continuum CD�s---?Annuities---?SPWL (Tax & Probate=Yes) (Probate=No, Tax=Yes) (Tax & Probate=No)

9. �Tax Time Bomb� Issue for Annuities Tax Deferred, Not Tax Free Great for Growth and Income, not for Wealth Transfer Beneficiaries will pay taxes at their tax bracket when they receive the funds SPWL will Avoid those taxes

10. �Tax Time Bomb�: Example

11. SPWL Sales Client Does Not Require the Funds for Income or Living Expenses Wants to pass on a legacy Has concerns regarding a Nursing Home or a Terminal Illness Not Buying a Policy, Repositioning Wealth. (Single Premium)

12. ClassicSolutionSingle Premium Whole Life Insurance(Policy Form #: 05-9621)

13. Why Classic Solution? Efficient Wealth Transfer Avoids Taxation Avoids Probate Easy to Qualify for Coverage Attractive Built-In Riders (BGIR-Unique) Competitive Premiums Access to Cash

14. Classic Solution: Access to Cash Partial Surrenders (Available After 1st Year)

15. Classic Solution: Policy Specs Issue Ages (Age Last Birthday): 45 � minimum 85 � maximum Minimum Single Premium - $5,000 Maximum Single Premium - $250,000 (or $150,000 net amount at risk), which ever is less Policy Fee:

16. Classic Solution: (NAR) Maximum Amount Underwritten is Determined by Net Amount at Risk (NAR). (NAR) = Initial Death Benefit - Initial Single Premium Payment

17. Maximum NAR Examples:

18. Classic Solution: Underwriting Chart T = Telephone Interview APS = Attending Physicians Statement

19. Classic Solutions Underwriting Telephone Interviews (2 Ways to Complete): 1. Point of Sale (Preferred) Completed at Time of Application from Client�s Home Call vendor using Toll Free Number Identify Yourself, Company, Product Being Applied for (Classic Solution) Applicant Completes the Rest of the Interview on their own Indicate on Application that Interview has been completed Results of Interview Transmitted to Home Office electronically Toll Free Number, Available Hours, and Details on page 6 of Agent Guide

20. Classic Solution - Underwriting Telephone Interviews (2 Ways to Complete): 2. After Point of Sale Indicate on Application that Interview has NOT been completed, and provide Applicant�s Phone #, and a �Best Time to Call� Vendor will contact Applicant to complete Interview or schedule a time to complete Results of Interview Transmitted to Home Office electronically

21. Medical Information Bureau (MIB) Member Companies report conditions to MIB database during the underwriting process Our Company accesses the MIB database on all Golden Solution applications MIB replies can trigger additional underwriting requirements (i.e. APS�s, Exams, etc.)

22. Pharmaceutical Database Check Check of National Pharmacy Databases Databases are checked on every Golden Solution Application Provides information on medications / prescriptions taken by the Applicant May trigger additional underwriting requirements (i.e. APS�s, Exams, etc.)

24. Classic Solution: Substandard Cases �Table 4 Standard� Applicant Age = 50 with a Table 5 Rating = Issue Age 54 Applicant Age = 80 with a Table 10 Rating = Issue Age 91 (Not Available)

25. Classic Solution: Riders Accelerated Benefit Terminal Illness*: Receive up to 80% of Death Benefit Diagnosed with Terminal Illness (Less than 12 months) Accelerated Benefit Confined Care*: Full Time, Permanent Resident in Nursing Home Fixed Monthly Pmt of Equal to the Lesser of 2.5% of face amt or $5,000

26. Classic Solution: Riders (con�t) Beneficiary Guaranteed Insurability* Unique Benefit Upon Insured�s Death, Beneficiary can: Purchase Their Own SPWL Policy w/o Evidence of Insurability. Max Face of New Policy is Lesser of Initial Face Amt of Original Policy and $150,000 Receive Death Benefit Proceeds Combination of Above Options Rider Must be in Force for 5 Years

27. Classic Solution: Proposal

28. Classic Solution: Proposal (Con�t)

29. Agent Guide Policy Specification (Issue Ages, Premiums, Min & Max Amounts etc.) Application Completion/Submission Information on riders Height and Weight Charts Point of Sales Interview instructions Medical Impairment Guide Impairment - Usually Acceptable Impairment - Require Medical Records to Consider Impairment � Unacceptable Combination Medical Impairment Guide Handle Sub-Standard Cases Underwriting Requirement Chart

30. Classic Solution: Sales Materials Application # 9665 (Yes/No)* HIPAA Form # 9526* Replacement Form (Varies by State)* Payment*: Check , or COD Transfer of Funds/1035 Exchange � use form # 9689 * Required to be Submitted to Home Office

31. Classic Solution: Sales Materials (Con�t) Client Brochure # 9694 Agent Guide # 9688 Money Purchase Sheets # 9686 Disclosure Terminal Illness ABR # 9673* Disclosure Confined Care ABR # 9675* Modified Endowment Contract (MEC) Disclosure # 9667*

32. Classic Solution: Advantages Immediately Increases Estate Value to Beneficiaries Proceeds Pass to the Beneficiaries Federal Income Tax Free Proceeds Payable to a Loved One Bypass the Costs and Delays of Probate Guaranteed Cash Value That Grows Over Time Guaranteed Death Benefit

33. Classic Solution Questions??? Call R.F.S. 877-968-5757