Playing Offense with Life Insurance SouthCap Brokerage Group Presented By :

Life insurance has been used as a defensive tool The main objective was to provide liquidity in the event of death Historically

Stable, A rated life insurance carriers Smooth cash flows in terms of annual premiums Fixed face amounts Variable duration Tax efficient aspects of life insurance contracts Life Insurance as an Asset

Survivorship Life Insurance is a very common and powerful tool we use with affluent families to accomplish the following: Leverage – annual gift exclusions can be leveraged on a tax-free basis for children/grandchildren Tax Free Pool of Funds – can be used for estate tax liability purposes Core Capital Protection – provides secure inheritance outside of the client’s taxable investment accounts Benefits

Case Study Client Information: Male – 65 – Preferred Female – 64 – Preferred+ Net Worth: $30,000,000 Ultimate Result: The couple purchased a total of $7,000,000 of coverage through 3 different carriers to diversify risk The true selling point was the “good math” in the survivorship contract They recognized the strong IRR and ability to create liquidity needed for estate tax planning Life Insurance Specs: Premium - $47,934 for 10 years Guaranteed Face Amount: $2,000,000 A net IRR of 7.48% at his/her age 89 / 88 A net IRR of 5.71% at his/her age 95 / 94 A net IRR of 4.76% at his/her age 100 / 99

Internal Rate of Return Internal Rate of Return Graph

A well-designed survivorship portfolio can become a powerful part of a client’s legacy plan as part of their fixed income portfolio The contract can provide tremendous leverage and a powerful rate of return Life insurance provides the necessary liquidity to help settle estate tax liabilities Is a useful tool to maximize wealth transfer to heirs In Summary

Contact Information: Luke Kaplan, Principal SouthCap Brokerage Group Thank You!

For broker use only. Not for use with the general public This material does not constitute tax, legal or accounting advice and neither SouthCap Brokerage Group nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Comments on taxation are based on SouthCap’s understanding of current tax law, which is subject to change. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors. Trusts should be drafted by an attorney familiar with such matters in order to take into account income and estate tax laws (including the generation-skipping tax). Failure to do so could result in adverse tax treatment of trust proceeds. This presentation is only an illustrative summary, which has been prepared for the convenience of the reader. The amounts shown are based on current assumptions as to mortality and expenses, which will vary and are neither guaranteed nor estimates of future performance. See the accompanying policy illustration ledgers for detailed projections and important information about the respective policies. The illustration of the respective policies is not a contract and will not become part of any policy issued by any insurer. The policy which is ultimately issued constitutes the actual agreement of coverage and contains the entire terms of the contract. The summary is not valid without basic illustrations of all policies listed. Securities offered through The Leaders Group, Inc. Member FINRA/SIPC, 26 W. Dry Creek Circle, Suite 575, Littleton CO 80120, Disclosure