Our Favorite Sales Ideas FHC’s Case Designers bring you the latest sales solutions Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528 AUGUST 2016

Welcome Sarah Molitor Stoyan Petev Steve Schreiber Tony Neiswander Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

Want a Starbucks Coffee on us. Fill out a short webinar survey at tiny Want a Starbucks Coffee on us? Fill out a short webinar survey at tiny.cc/fhcwebinars First 50 to complete the survey will receive a $5 Gift Card to Starbucks!

Managed360 Integrated Managed Investments Platform coming soon… Managed360 Integrated Managed Investments Platform Proposal Generation Portfolio Analytics Performance Reporting New Account Opening Account Maintenance Billing Investment Solutions and Research1 Education and Training 1 Lockwood receives certain research services from BNY Mellon’s Manager Research Group in manager research, due diligence, ongoing monitoring, creation and the preparation of this report. Lockwood is an affiliate of Pershing, both wholly-owned subsidiaries of BNY Mellon. Pershing LLC, member FINRA, NYSE, SIPC.

Our Favorite Sales Ideas August 2016 Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

Goal Share the best and latest sales ideas, explain who the ideal client is for each and how you can best use them. Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

Create Your Own “Indexed” Annuity Goal: Fight low caps on FIAs Provide alternative to bond portfolios Offer shorter surrender charges than FIAs Stoyan Petev Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

Create Your Own “Indexed” Annuity Who does this work for?: Anyone who is worried that rising interest rates will kill their bond portfolio, people who want to get back in the market but are still afraid of losing Stoyan Petev Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

Create Your Own “Indexed” Annuity 3- or 5-Year Surrender Charge 10-Year ROP Unlimited Upside 2.7% annual spread Multiple Indices Up to 7% Upfront Commission (trails available) “A+” Rated Mutual Company 6% Current DCA Ability to split 1035 exchanges from other companies to create better planning opportunities Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

Two Policies Can be Better Than One Goal: New and improved guaranteed ULs offer choices to clients when sold more than one policy Steve Schreiber Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

Two Policies Can be Better Than One Who does this work for?: Clients looking for guaranteed permanent insurance with options in the future through the use of premium flexibility and a unique return of premium feature Steve Schreiber Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

Ultimate NLG Flexibility GRO (Guaranteed Refund Option) Rider: New Sales: Policy Split

Policy Split Design SINGLE POLICY SPLIT POLICY POLICY I POLICY II   POLICY I POLICY II TOTAL PREMIUM GRO RIDER COVERAGE 1 $36,150 $5,000,000 $21,690 $3,000,000 $14,460 $2,000,000 15 $271,125 $162,675 $108,450 16 17 18 19 20 $723,001 $433,801 $289,200 21 $759,151 $455,491 $303,660 22 $795,301 $477,181 $318,120 23 $831,451 $498,871 $332,580 24 $867,601 $520,561 $347,040 25 $903,751 $542,251 $361,500 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Ultimate NLG Flexibility GRO Rider New Sales: Policy Split Surrender and cash out Surrender and pay up

Surrender and Paid Up SINGLE POLICY SPLIT POLICY POLICY I POLICY II   POLICY I POLICY II TOTAL PREMIUM GRO RIDER COVERAGE 1 $36,150 $5,000,000 $21,690 $3,000,000 $14,460 $2,000,000 15 $271,125 $162,675 $108,450 16 17 18 19 20 $723,001 $433,801 $289,200 21 $759,151 $0 $723,000 22 $795,301 23 $831,451 24 $867,601 25 $903,751 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Ultimate NLG Flexibility GRO Rider New Sales: Policy Split Surrender and cash out Surrender and pay up Replacement Sales: Reduced Paid Up Alternative to 1035 exchange Keeps future sales open The New Sale Combo = Ultimate NLG Flexibility

Combo Design SINGLE POLICY SPLIT POLICY POLICY I POLICY II TOTAL   POLICY I POLICY II TOTAL PREMIUM GRO RIDER COVERAGE 1 $36,150 $5,000,000 $21,690 $3,000,000 $14,460 $2,000,000 15 $271,125 $162,675 $108,450 16 17 18 19 20 $723,001 $433,801 $289,200 21 $759,151 $455,491 $0 $1,000,000 $744,691 $4,000,000 22 $795,301 $477,181 $766,381 23 $831,451 $498,871 $788,071 24 $867,601 $520,561 $809,761 25 $903,751 $542,251 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

A Different Way of Generating Retirement Income Goal: Diversify a client’s tax bracket by creating a tax favored pool of money with life insurance for supplemental income purposes Tony Neiswander Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

A Different Way of Generating Retirement Income Who does this work for?: Most clients can qualify for life insurance but the ideal customer would be someone 55 and younger. Health status might not make a major difference in this strategy because the death benefit will be minimized which reduces the costs of insurance to as low as we can make them without causing a modified endowment contract. Tony Neiswander Dial-In Number: 1 (631) 992-3221 Webinar ID: 913-697-528

Retirement Concerns Will I have enough money to retire? Do I need to supplement my retirement income? Am I paying too much in taxes? What happens to my finances if I die?

But how can we do it?

High Income Stream Male 45, $50,000 annually to age 65 Company Initial DB Target Year 10 Year 20 Income Allianz 1,054,069 17,242 584,861 1,874,575 179,510 Pacific Life 1,051,292 20,000 569,797 1,837,155 154,692 North American 1,023,656 18,016 582,801 1,883,057 150,650 American General 1,053,972 19,509 584,577 1,831,952 149,412

Large Death Benefit Male 45, $50,000 annually to age 65 Company Year 1 Allianz 1,054,069 1,644,590 2,928,644 1,584,218 1,291,028 1,006,005 3,380,516 11,849,099 Pacific Life 1,051,292 1,621,089 2,888,447 1,758,578 1,460,912 1,003,063 1,764,920 6,133,184 North American 1,023,656 1,623,911 2,906,713 1,457,619 1,184,496 660,167 2,198,408 8,506,177 American General 1,053,972 1,656,467 2,885,924 1,612,528 1,273,058 866,507 1,449,047 4,471,452

Impressive Cash Value Male 45, $50,000 annually to age 65 Company Year 10 Year 20 Year 30 Year 40 Year 50 Year 60 Allianz 584,861 1,874,575 1,325,482 932,767 872,057 3,380,516 Pacific Life 569,797 1,837,155 1,509,490 1,127,434 879,293 1,533,074 North American 582,801 1,883,057 1,457,619 984,520 582,558 2,198,408 American General 584,577 1,831,952 1,471,886 1,078,882 866,507 1,449,047

Great Compensation Male 45, $50,000 annually to age 65 Company Premium Target Year 1 Comp Year 2 Comp Year 3 Comp Total 3 Year Comp Allianz 50,000 17,242 9,440 8,000 25,440 Pacific Life 20,000 18,600 1,000 20,600 North American 18,016 17,915 1,250 20,415 American General 19,509 17,040 750 18,540

Stoyan Questions for us? Steve Tony