Welcome to the 2017 HighCap Financial Sales Forum J. Craig Collins Senior Vice President, Business Development and Head of HighCap Financial

Welcome to

HighCap Financial Advisory Board Attending Rich Connolly Vince Gianatasio Dan Smith Mark Thomas Not Attending Jon Christie Harry Graves John Josten

The Winds of Change

Regulation Nation

Issuing Carriers Affected Range of COI Rate Increase Recent COI Changes Issuing Carriers Affected Range of COI Rate Increase Transamerica 5%-47% Banner life William Penn 10%-200% Reassure America 30%-40% US Financial Life 6%-40% Reliastar Security Life of Denver 5%-45% AXA Equitable 27%-68% 21%-100% Conseco Info not available Lincoln Life & Annuity Co. of NY 14%-52% Lincoln National Life Insurance Co. Phoenix Life

Overcrowding Banks, Wirehouses, CPAs & Attorneys Carriers Direct to Consumers Amazon & Google Robo-Advisors

Robo-Insurance “Robo-advisers – online wealth management services that provide automated algorithm-based advice without the use of human financial planners – could offer life insurance products within the next 5 to 10 years, according to research by Life Insurance International (LII).” Life Insurance International Life Insurance 2026: Rise of the Rob-Advisors January 27, 2016 “The rising tide of digital insurance information will prompt consumers to look for a select group of trustworthy and credible sources. Advisors need to build strong relations with their customers, through regular contact, a deep understanding of their requirements and the provision of tailored products and services, to establish themselves as trusted and informed providers of information.” Accenture Robo-Advisors Will Force Insurance Agents and Brokers to Up the Game February 15,2017

Trump Tax Reform Proposal Individual Taxation Move from 7 to 3 income tax brackets at lower overall rates Eliminate most itemized deductions in favor of a larger standard deduction Business Taxation – reduce tax rates and complexity Estate & Gift Taxation – eliminate “death taxes”

Estate Tax History Year Legislative Action 1902 Estate Tax Repealed 1916 Estate Tax Re-enacted 1930 Estate Tax Reformed 1976 Estate and Gift Taxes Unified 1981 Estate Tax Amendment 2001 2010 2011 2013 Estate Tax Sunset and Revision

Technology Role of Big Data Predictive Analytics: Price vs. Convenience Don’t want to be on the wrong side

BABY BOOMERS VS. MILLENIALS

“I know there’s a pony in here somewhere!”

Facts About Life Individual life insurance ownership = 44%, $12T opportunity for under and uninsured 20% of life insurance owners say they don’t have enough coverage 1 of 3 believe they need more life insurance 45% say they are likely to buy life insurance in the next 12 months Millennials getting married, buying homes and having children All reflect need for life insurance Prefer to buy from an advisor Needs to be easy to understand 70% say they are interested in purchasing insurance without an exam Half of carriers have automated underwriting Life insurance for retirement savings Top 5 reason Over half saying it is the reason they own

KEEP CALM HIGHLAND IS HERE

Failure is not fatal, but failure to change might be. “ “ Failure is not fatal, but failure to change might be. -John Wooden “

Presented by Brian P. Moran The 12 Week Year Presented by Brian P. Moran Sponsored by: