Module II -Farmers Term Products 2/25/2019

Module Objectives Farmers Level Term 2000 Level 5 with 5 year guarantee Level 10 with 10 year guarantee Level 20 with 10 year guarantee Level 20 with 20 year guarantee Farmers Yearly Renewable Term Farmers Mortgage Protection Plan 2/25/2019

Farmers Level Term 2000 Plan Codes: Five Year Plan Standard Nicotine 627 Standard Non-Nicotine 627 Preferred Non-Nicotine* 627 Premier Non-Nicotine* * See special requirements slide 2/25/2019

Farmers Level Term 2000 Plan Codes: Ten-Year Plan 228 Standard Nicotine 628 Standard Non-Nicotine 628 Preferred Non-Nicotine* 628 Premier Non-Nicotine* * See special requirements slide 2/25/2019

Farmers Level Term 2000 Plan Codes: Twenty Year Plan (10-Year Guarantee) 229 Standard Nicotine 629 Standard Non-Nicotine 629 Preferred Non-Nicotine* 629 Premier Non-Nicotine* * See special requirements slide 2/25/2019

Farmers Level Term 2000 Plan Codes: Twenty-Year Plan (20-Year Guarantee) 230 Standard Nicotine 630 Standard Non-Nicotine 630 Preferred Non-Nicotine* 630 Premier Non-Nicotine* * See special requirements slide 2/25/2019

Special Requirements for Preferred & Premier When applying for preferred rates, the agent must notify the paramed service that a regular paramedical exam, not an abbreviated exam is required. Write Preferred or Premier on the application. Underwriting will determine whether the proposed insured qualifies for Preferred or Premier rates. If the proposed insured does not qualify for preferred rates, the policy will be issued at standard rates. 2/25/2019

Special Requirements for Preferred & Premier NOTE: If you believe the customer will qualify for Premier rates, quote preferred and write: “Please issue with Premier Rates if qualified” on the application. Most applicants will not qualify for Premier rating. It is much easier to resell a better rate than to resell a higher rate. If accepted Premier, a new Illustration must be submitted to FNWL to issue. 2/25/2019

Farmers Level Term 2000 Issue Ages Five-Year and Ten-Year Plans 18-65 Nicotine Class 21-65 Non-Nicotine Classes Twenty-Year Plans 18-60 Nicotine Class 21-60 Non-Nicotine Classes 2/25/2019

Farmers Level Term 2000 Minimum Issue Amounts: $100,000 Standard Nicotine and Non-Nicotine Classes $150,000 Preferred Non-Nicotine and Premier Non-Nicotine Classes 2/25/2019

Farmers Level Term 2000 Riders Available: Waiver of Premium Accidental Death Benefit Children’s Rider Accelerated Benefit Rider Deposit Fund 2/25/2019

Farmers Level Term 2000 Wavier of Premium Waives all premiums during a qualified disability of the insured, provided the disability last at least six consecutive months and begins prior to the insured’s attained age 60. This benefit is available, at issue only, for ages 18-60. 2/25/2019

Farmers Level Term 2000 Accidental Death Benefit Provides an accidental death benefit of up to $150,000(total benefit with all companies combined, including Farmers) if death is the result of an accident. This benefit will be paid provided the qualifying accidental death occurs prior to the insured’s 70th birthday. This benefit is available, at issue only, for ages 18-60. 2/25/2019

Farmers Level Term 2000 Children’s Rider This rider provides term life insurance on the insured’s children, ages 15 days to 19 years. The coverage is to the child’s age 22, or the insured’s age 65, if earlier. Coverage is a minimum of 2 units to a maximum of 10 $1,000 units of level term life insurance. Premiums are $10.00 per unit. This rider is available for insureds age 18-50. This rider may be added after issue on the birth or adoption of a first child. 2/25/2019

Farmers Level Term 2000 Accelerated Benefit Rider The accelerated benefit rider allows a policy owner to request an acceleration of up to 50% of the policy’s death benefit, to a maximum of $150,000, from all FNWL policies with ABR, when the insured is diagnosed with a terminal illness and has 12 months or less to live. This benefit is available for issue ages 18-55. 2/25/2019

Farmers Level Term 2000 Deposit Fund This optional rider may be used to build cash reserves for the future. Payments may be made into the fund at anytime, subject to a $25 minimum. Interest is compounded annually, and the current rate reflects up-to-the date earnings on the fund. The interest rate is guaranteed to never be lower than 2%. 2/25/2019

Farmers Level Term 2000 Conversion Provisions The policy can be converted at any time prior to the earlier of 20 years or the insured’s 65th birthday(or, if the issue age is 65, within the first policy year). It can be converted to a permanent plan, subject to plan minimum and maximum face amount limitations. 2/25/2019

Farmers Level Term 2000 Preferred Underwriting Preferred underwriting offers our primary insureds reduced insurance cost based on the proposed insured being in better-than-average health. In addition to standard underwriting, Farmers Level Term 2000 offers 2 preferred underwriting classes: Preferred and Premier Non-Nicotine, which feature reduced rates to those who meet special underwriting criteria. 2/25/2019

Farmers Yearly Renewable Term 2/25/2019

Farmers Yearly Renewable Term This policy provides level term insurance for a period of one year only, but permits the policyowner to renew the policy for successive periods of one year each without the necessity of furnishing evidence of insurability. A re-entry option is available at the end of ten years with evidence of insurability. The policy may be renewed for successive periods of one year each until the insured’s death or age 95. 2/25/2019

Farmers Yearly Renewable Term Premiums will increase annually until coverage ends at age 95. Premiums for years 1-5 are guaranteed. Current rates after year 5 may change. Rates will never exceed the guaranteed maximum rates shown in the policy. 2/25/2019

Farmers Yearly Renewable Term Target markets for FYRT include existing commercial clients and professionals with the need for a larger life policy. This plan can be used to attract the business of: Commercial client as key person insurance Commercial clients as buy-sell insurance, Cover plan payoffs in the event of death Clients looking for most competitive business term 2/25/2019

Issue Ages: 21-75 Minimum Issue: $500,000 Farmers Yearly Renewable Term Issue Ages: 21-75 Minimum Issue: $500,000 2/25/2019

Farmers Yearly Renewable Term Riders and Benefits Waiver of Premium - Same as other term products. Deposit Fund - Same as other term products. 2/25/2019

Farmers Yearly Renewable Term Conversion Provisions Available during the first ten policy years of a newly issued policy, or re-entered policy, but only prior to age 65. Conversion is available in the first year only for issue ages 64-75. A policy may be converted to any permanent plan. 2/25/2019

Farmers Yearly Renewable Term Re-entry Re-entry with evidence of insurability is available at the end of each ten year period until age 75. The incentive for an insured to re-enter is the premiums are typically lower than if the policy is renewed. The suicide and Contestability periods start over at re-entry. 2/25/2019

Mortgage Protection Plan 2/25/2019

Mortgage Protection Plan This plan is a decreasing term policy designed to protect the mortgage loan. Coverage is available to cover mortgages of 15, 20, 25 or 30 years. Premiums are guaranteed to remain level as the death benefit decreases monthly on both the base plan and the accidental death benefit rider. 2/25/2019

Mortgage Protection Plan Issue Ages: 15 years 18-65 20 years 18-60 25 years 18-55 30 years 18-50 Minimum Issue: $25,000 2/25/2019

Mortgage Protection Plan Riders and Benefits: Waiver of Premium Accidental Death Children’s Rider Deposit Fund Rider (all same as previous term riders) 2/25/2019

Mortgage Protection Plan Riders and Benefits: First to Die: Provides a joint first-to-die type of coverage. This coverage insurers two people at a reduced rate and pays off on the first death. Conversion: 100% of the remaining death benefit may be converted during the first 10 years subject to plan minimums. 2/25/2019

Preferred Underwriting All term plans (excluding Mortgage Protection) have preferred rates. In order to be eligible for this rate, the insured must be in better-than-average health and meet the following criteria: 1. Good driving history (no DWI or 3 moving violations in 3 yrs) 2. Family health history 3. Blood Pressure 4. Cholesterol 5. Height and Weight 6. No ratable occupation or avocation (See details in Procedure Manual). 2/25/2019

Quote of the Day.. “True leaders place the needs of others above their own.” “The Passion of the Leader is the Energy of the Pack” “Vision is the Gift to see what others only Dream” 2/25/2019