BC LIFE & HEALTH LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE October 2000

LifeBenefits §Why purchase final expense insurance? l According to the National Funeral Directors Association, the average funeral costs $6,750 l Social Security death benefit is $255 (if you qualify) FINAL EXPENSE WHOLE LIFE INSURANCE

§Available for Ages l Rates based upon age at application l Rates based upon sex of applicant §Simplified Issue l 4 medical questions $3,000 to $25,000 Face Value l Choose one of three pre-calculated benefits l Select own level of benefit in thousand dollar increments LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

Immediate Benefit Immediate Benefit l No waiting period to be eligible to receive the full face value at point of claim §Guarantee Noncancelable l Benefits cannot change l Rates cannot change §Guaranteed Satisfaction l 30-day free look policy LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

§Incontestability l Cannot contest, except for non-payment of premium, after policy is in force for 2 years §Suicide l If Insured commits suicide within 2 years from policy effective date, benefit will be equal to the total premiums paid less any debt owed LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

Policy Loans l Loans are available after the policy has been in force at least 12 months and has a net cash value l Policy is the security for the loan The Insured will assign policy to BC Life & Health l Interest rate is 8% compounded yearly Interest is due on the policy anniversary LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

A utomatic Premium Loan l Automatically in place unless otherwise indicated on the application l Should premium not be paid within the grace period, a policy loan in the amount of the premium will be made automatically Policy must have enough loan value Premium loan subject to same provisions and interest rate as a policy loan LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

Automatic Premium Loan l May be discontinued with written request §Premiums may be paid either monthly, quarterly, semi-annually or annually §There is a 31 day grace period for premium payment LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

A policy that lapsed (and was not surrendered for cash value) may be reinstated within 5 years of the lapse l Must be able to pass underwriting l Must pay past due premium with 6% interest l Must pay or reinstate debt with compound interest LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

§Beneficiary is the payee at the death of the Insured l Beneficiary selection is revocable (may be changed) unless otherwise stated l Change must be made in writing and will be effective as of the signature date §Payment of benefit l < $5000 paid in one lump sum l > $5000 paid in one lump sum or optional method of payment LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

Optional Methods of Policy Settlement l Option 1 - l Option 1 - Policy proceeds held as principal and interest paid to payee l Option 2 - l Option 2 - Policy proceeds of a specified amount paid in equal installments to payee l Option 3 - l Option 3 - Policy proceeds paid in equal installments for a specified period to payee l Option 4 - l Option 4 - Life Annuity - monthly installments paid for life of payee LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

Optional methods of policy settlement - contd l Option 5 - l Option 5 - Life Annuity with Period Certain - monthly installments paid for life of payee. Should payee die prior to period certain, installments will be paid to payees estate l Option 6 - l Option 6 - Joint Life and Survivorship Annuity - monthly installments paid for life of two payees. At death of one payee, survivor continues to receive installments LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

§Nonforfeiture Options l Option 1 - l Option 1 - Surrender for cash. l Option 2 - l Option 2 - Reduced paid up life insurance Policy is continued in force as Reduced Paid- Up Life Insurance at a reduced face amount. Amount is computed so that its net single premium on the due date of the unpaid premium equals the net cash value LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

Sales Requirements l Life Insurance Buyers Guide must be presented at point of sale l If replacing coverage, Notice Regarding Replacement must be completed and included with the application for coverage l Must collect full modal premium (include the $30 monthly premium when calculating rates) LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

Agent Commissions l 85% First Year l 5% Renewal Year LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE

Thank you for your interest in BC LIFE & HEALTH LifeBenefits FINAL EXPENSE WHOLE LIFE INSURANCE For further information contact your Regional Sales Manager or call Senior Sales Support at