For Producer or Broker/Dealer Use Only. Not for Public Distribution. [Presenter Name] [Date] Life Insurance as an Asset

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Agenda Current Environment Tax Diversification Life Insurance as an Asset 123

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Where We Are Today Current Environment

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Where We Are Today – Current Environment Overview Limitations on Traditional Retirement Vehicles Changing Retirement Benefits Current Interest Rate Environment Taxation

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Taxes and Tax Diversification

For Producer or Broker/Dealer Use Only. Not for Public Distribution. 1.Distributions from a life insurance policy through withdrawals of certain policy values (up to cost basis) and loans are generally not taxed as income provided you follow certain premium limits which prevent your policy from becoming a Modified Endowment Contract (MEC). Distributions taken during the first fifteen years may be subject to tax. Loans and withdrawals will generally reduce the cash value available and the death benefit payable. If policy loans are taken, there may be income tax consequences if you permit the policy to lapse or if the policy is surrendered or exchanged 2.Traditional IRA contributions may be deducted if certain criteria are met 3.Assuming the funds have been held in the account for at least five years and owner has reached age 59½ at the time withdrawals are taken 4.Municipal bond interest is generally tax-free for regular federal income tax purposes TAX-DEFERRED Annuities 401(k)/403(b) Traditional IRAs SEP/SIMPLE Pension Qualified Retirement Plans TAXABLE Cash Checking CDs Money Market Non-Qualified Brokerage TAX-FAVORED Roth IRA 3 Municipal Bond 4 Cash Value Life Insurance 1 Taxes & Tax Diversification – Tax Control Triangle

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Qualified Plans/ IRAs 3 Personal InvestmentsDeferred AnnuitiesLife Insurance Contribution/ Premium Pre–taxAfter–tax AccumulationTax–deferredTaxable when realized 4 Tax– deferred Distribution/ Withdrawal Taxable as ordinary income Taxable when realized 4 Taxable as ordinary income Tax–favored 5 Death BenefitsTaxable as IRD 6 Stepped–up basicGain taxable as IRD 6 Income tax–free 5 Characteristics/ Trade Offs Pre– 59 1/2 penaltyLiquid Pre–59 1/2 penalty, fees, loss of access to principal Insurability plus ongoing cost of insurance 7 Tax Treatment Comparsion 2 Taxes & Tax Diversification – A Laddered Approach 3.Traditional IRAs 4.Personal, non–tax exempt investment, depending on the type of asset class, may be taxed as they increase in value or when a gain is distributed. Clients should consult with their own tax advisor for details 5.Tax–favored distributions assumes the policy is not a Modified Endowment Contract (MEC): see Footnote one for additional details 6.Income in respect of a Decedent (IRD) 7.Life insurance and annuities have ongoing policy and Contract charges, as well as surrender charges, that do not apply to other products, which may have their own fees and charges

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Life Insurance as an Asset

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Tax-Free Death Benefit Primary purpose of life insurance Can be used to maximize Estate planning and Multi-Generational Wealth Transfer Income and estate tax-free 1 Tax-Deferred Growth Provides tax control by allowing the client to defer the taxes until they withdraw earnings Allows the client to maximize earnings power by the effect of “triple compounding”: Earning money on principal, earning money on growth as well as earning on monies that would otherwise be paid to taxes each year Life Insurance as an Asset – Overview 1.The death benefit is generally tax free to the beneficiary, however some exceptions, such as Transfer for Value, may apply. Depending on the ownership structure, life insurance can be estate tax free. Loans and withdrawals will decrease the cash value and death benefit.

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Can be Used to Provide Supplemental Income If Needed Policy loans and withdrawals are tax friendly in most cases Taking loans or withdrawals from an insurance policy following a negative return year in the client’s portfolio can provide a secondary source of income and help offset Sequence of Returns risk in Retirement by allowing the portfolio time to recover Provides Flexibility Creates a more diversified overall client portfolio No contribution limits based on income Distributions prior to age 59½ Life Insurance as an Asset – Overview

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Life Insurance as an Asset – Redefining Expectations OriginationAccumulationDistributionDeath OriginationAccumulationDistributionDeath Then Now

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Client AClient B 12 Higher income earners are often more restricted. Example: $100,000 MAGI Income Tax Filing Status Married Filing Joint $5500 IRA Contribution* $18,000 Max 401(k) Contribution $23,500 Total Qualified Savings Annually 23.5% Qualified Savings Rate $300,000 MAGI Income Eligible for Roth Contributions Yes Eligible for IRA Deductions Yes (Partial) Tax Filing Status Married Filing Joint $5500 IRA Contribution** $18,000 Max 401(k) Contribution $23,500 Total Qualified Savings Annually 7.8% Qualified Savings Rate Eligible for Roth Contributions No Eligible for IRA Deductions No Age 45 Life Insurance as an Asset – Retirement *- Indicates either contribution to Roth or Traditional IRA. Income could limit contribution amounts for Roth or deductibility for Traditional **- Indicates a Non-Deductible contribution only. Roth contributions are not allowed at that MAGI limit nor are Traditional IRA contributions deductible

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Systematic Withdrawal Only Systematic Withdrawal and Whole Life Policy 13 Sequence of Returns can significantly impact a Retirement Portfolio during the income phase Providing diverse sources to draw from can be a key component to offsetting the impact Sequence of returns can have Life Insurance as an Asset – Retirement Age 65 $2,000,000 Beginning Balance of Retirement Portfolio 8.44% Average Return * $4,075,526 Account Balance age 86 Difference N/A $94,920 Annual Net Income $1,993,320 Income Received $1,759,600 Beginning Balance of Retirement Portfolio 8.44% Average Return* $4,348,556 Account Balance age 86 Difference +6.6% $94,920 Annual Net Income $1,993,320 Income Received *Returns based on 60% S&P 500 index/ 40% Barclays US Bond Aggregate Index from Past performance are no indicator of future results.

For Producer or Broker/Dealer Use Only. Not for Public Distribution. Diversification of taxation can be just as important as diversification of asset allocations Summary – Life Insurance as an Asset Where we are today and how to prepare for where we are going Life Insurance can be used as a planning tool in the clients portfolio for multiple needs Tax Diversification Current Environment Life Insurance As An Asset

For Producer or Broker/Dealer Use Only. Not for Public Distribution. MetLife Product Comparison Permanent Policy type Universal life generally provides a guaranteed premium and can be designed to provide a secondary death benefit guarantee and typically does not focus on cash value accumulation Whole life insurance has guaranteed level premiums, guaranteed cash value and guaranteed death benefits. Whole life is also eligible to receive annual dividends. Dividends are not guaranteed; however, if paid they may increase the cash value and death benefits over time. Variable universal life features an equity component which permits the allocation of premiums among professionally managed funding options. The Performance of these funding options may affect the cash value and death benefits amounts. Investments in variable universal life are subject to market risk including loss of principal. Universal 2 WholeVariable Universal 3

For Producer or Broker/Dealer Use Only. Not for Public Distribution. For Provider Universal Life, the Coverage Continuation Benefit (CCB) guarantees that the policy will remain in force, as long as the required premiums are paid, until the end of the elected guarantee period, but no later than age 95. Policy changes, withdrawals, or loans not accounted for at the time the CCB premium was determined will affect the CCB guarantee’s duration or cause the policy to lapse. If the CCB terminates, the policy will stay in force as long as either its cash value is sufficient to pay for the policy’s monthly charges or a premium payment sufficient to pay those charges is made within the policy’s grace period. The CCB does not guarantee the policy’s cash value. If only the premium to maintain the CCB guarantee is paid, the policy cash value could become a negative amount. In that situation, the monthly deductions for policy charges will be accumulated without interest. This amount must be repaid before any cash value can be accumulated. MetLife, its agents, and representatives may not give legal, tax or accounting advice. Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their qualified legal, tax and accounting advisors as appropriate. LIFE INSURANCE PRODUCTS Not A Deposit | Not FDIC-Insured | Not Insured By Any Federal Government Agency | Not Guaranteed By Any Bank Or Credit Union | May Go Down In Value Metropolitan Life Insurance Company 200 Park Avenue New York, NY metlife.com BDVL24024 L [exp1017][All States] © 2014 METLIFE, INC. PEANUTS © 2014 Peanuts Worldwide