Saver’s Select TermSM

Have Life Insurers gone too far? “Falling Prices, Falling Sales” Best’s Review - November 01, 2000 by David F. Woods As prices have fallen…sales, not demand, have fallen Annual policy sales have declined eight straight years People who plan to buy out number 3:1 actual sales 21% of people earning more than $75K say they need more life insurance 54% of people between $35K & $75K need more life insurance 31 million people say they plan to buy in next 12 months

Have Life Insurers gone too far? “Falling Prices, Falling Sales” Best’s Review - November 01, 2000 by David F. Woods 11 million policies were sold vs. identified 31 million who want to buy Conclusion: In the life insurance industry where prices are falling, demand exceeds sales and supply is unlimited, the failure has to be in distribution. Why?

Have Life Insurers gone too far? “Falling Prices, Falling Sales” Best’s Review - November 01, 2000 by David F. Woods FACTORS: Tremendous reduction in premium rates combined with fewer policies sold. Agent is making 50%of what they made 10 years ago for the same case. 40% of agent’s income is from insurance sales compared with 60% 10 years ago. Agents steering away from more difficult life insurance sale with such a financial disincentive.

Have Life Insurers gone too far? “Falling Prices, Falling Sales” Best’s Review - November 01, 2000 by David F. Woods RESULT: We have 60 million who say they need more life insurance -31 million who want to buy within next 12 months - will life insurance agents be willing to fulfill this economic demand if carriers continue to decrease rates and commissions?

Have Life Insurers gone too far? The answer is: SAVER’S SELECT TERM & RETURN OF PREMIUM

“At last - a term life insurance product worth selling ” Saver’s Select Product Positioning “At last - a term life insurance product worth selling ” Agents Saver’s Select allows the agent to earn better than average income with the addition of unique customer focused rider benefits. Saver’s Select liberal preferred underwriting allows the agent to place more cases without the need to resell the policy on delivery. Consumers Saver’s Select term provides easy to obtain coverage with unique benefits for families and small business owners. Saver’s Select term provides benefits when your client needs them and return of premium if they don’t.

Saver’s Select Term Competitive rates Return of Premium and Disability Income Riders High 1st year commissions Renewal commissions- up to 10 years Short form application Age last birthday Liberal preferred underwriting Excellent smoker rates No blood through $500k Age 40 and $250k age 50 Commissionable policy fee

Saver’s Select Policy Design 15, 20, or 30-year term $150,000 minimum face amount Rates guaranteed for 10 years or full term period by use of Rider Liberal preferred underwriting allows for more cases to placed as submitted Convertible on or before tenth policy anniversary to UL Issue ages (age last birthday) 10 year term period guarantee guarantee 15-year plan 18-65 18-60 20-year plan 18-60 18-55 30-year plan 18-60 18-45

Saver’s Select Policy Design cont. $60 policy fee, fully commissionable, no additional policy fee for up to three insureds Five Premium Bands $150,000 - $249,999 $250,000 - $499,999 $500,000 - $999,999 $1,000,000 - $2,999,999 $3,000,000 and up Tremendous selection of riders Money back return of premium rider Other insured rider (up to 3 per policy with only one policy fee) Disability protection rider Waiver of Premium Accelerated Death Benefit

Saver’s Select Simple Underwriting Short simple application for quicker turnaround time No Blood through age 40 & 500K, age 50 & 250K Easier for your client Two underwriting bands -- Preferred and Standard allow agent to sell rate with confidence No need to resell case at delivery with higher rate Your Client: Male 45, 6’0 248, BP 150/90 Cholesterol 260, HDL 7.0 , one parent die before age 60 due to heart or cancer… gets our best rate!

Saver’s Select Liberal Preferred Underwriting Liberal Height & Weight Liberal blood pressure readings 150/90 age 50 and younger 160/95 ages 51 + (blood pressure treatment allowed if controlled over last 2 years) Cholesterol 260 age 50 and younger 280 ages 51 to 65 300 over age 65, Cholesterol/HDL ratio cannot exceed 7.0 (Cholesterol treatment allowed if controlled over last 2 years)

Saver’s Select - Get Paid Faster Less than 30 days turnaround on fully underwritten applications Easy to manage pending reports - SalesLink Weekly EFT available And Let’s talk commissions… High First Year Rate Commissionable policy fee AND Renewals up to 10 Years

Saver’s Select Riders Disability Protection Rider Maximum monthly benefit is the lesser of: $3,000 monthly or 66 2/3% of monthly pay Total disability is defined as inability to substantially perform in the usual and customary way the essential duties of “any occupation” for which the insured may qualify by reason of education, training or experience Must be added at issue only 90 day wait 2 year benefit

Other Insured Rider Using this rider - up to 4 people can be insured under the same policy. Ideal for business - allows policyowner to add or drop insureds as needed. The death of one insured does not affect coverage for the others. Face amounts may vary by individual. Available for all term periods.

Children’s Level Term Life Rider One premium is charged for all covered children Issue ages: 15 days through 18 years of age; age last birthday Minimum/ maximum: $5,000/ $10,000; available in increments of $1,000 If primary insured dies while this rider is in effect; each child will receive a paid- up term life policy to age 25. Convertible to age 25.

Accelerated Benefit Rider If client is diagnosed with a terminal illness, they can receive up to 50% of the policy death benefit, up to a maximum of $250,000 Must be elected at policy issue. No Premium charge. One time administrative fee of $350 at time of claim.

Ultimate Income Endorsement Ideal for Income Replacement Sales Easier to understand for Client Selling Income - Not Face Amount Flexibility in Death Benefit Payment Usually results in sizable discount over traditional capital approach to needs determination Consider the following example...

Ultimate Income Endorsement 40 year old Male Preferred NT Wants $100,000 @ death for immediate cash needs Also needs $3,000 per month income replacement for 25 years until age 65 Wants to help supplement spouses retirement with additional $100,000 paid at the end of 25 years. With a traditional capital needs approach the cost would be $1,156 Utilizing the Ultimate Income Rider the client can receive the payment exactly as they want - GUARANTEED. For a premium of $877 which represents a savings of 24%.

Ultimate Income Endorsement The Ultimate Income Rider allows the policyholder to designate how the benefit will be paid with any or all of the following options: An initial lump sum payable at death to take care of immediate cash needs. A choice of 5 to 25 years of dependable guaranteed monthly income. A final lump sum to be used when the income stream is completed. This benefit calculation is software supported.

Ultimate Income Endorsement Other Benefits Can be changed at any time by Owner Guarantees Income at a time it is needed most Allows the spouse to “control” proceeds from the grave Easier to sell actual income instead of large face amounts Flexibility in death benefit design can reduce premiums in competitive situations. Eliminates concern for investment expertise.

Saver’s Select Riders Money Back Rider Concept: Coverage for your client if they need it…return of premium if they don’t! Available at issue only Typically increases the premium by 30% on the 30- year term, by 90% on the 20-year term, and by 144% in the 15- year term IS IT A GOOD DEAL FOR YOUR CLIENT?

Saver’s Select Riders Money Back Rider Let’s assume the following: Male / Age 45 / Pref. Non-tobacco / $500,000 Saver’s Select Term $500,000 w/o Return of Premium = $1275.00 Saver’s Select Term $500,000 w/ Return of Premium = $1615.00 Increased cost to provide guaranteed Return of Premium = $340.00 Additional $340.00 generates a guaranteed refund of premium of $48,450 at the end of 30 years. The net result...

Net after-tax guaranteed equivalent over 30 years Saver’s Select Riders Money Back Rider 8.67% Net after-tax guaranteed equivalent over 30 years

Saver’s Select Riders Money Back Rider Full money back is paid if the policy is kept in force to the end of the term period No money back is paid for lapses in the first 5 policy years Partial money back is available for lapses after 5 policy years, in the following percentages of premiums paid:

SAVER’S SELECT TERM COMPARISON COMPULIFE TERM4SALE 03/07/01 Information is deemed reliable. Rates subject to change by the minute.

Saver’s Select Term Comparison

Saver’s Select Term Comparison

Saver’s Select Term Comparison

Saver’s Select Term Comparison

Saver’s Select Term Comparison

Saver’s Select Term Comparison

Saver’s Select Benefits How good is age last birthday?

Saver’s Select Benefits Age Last Birthday 50% of the time you have a better rate than the competition-- just because of age Less confusing to your clients Difference in Rates for competitors: Male N/S 45 and 46 Pref. 30/10 Federal Kemper: 9% increase First Penn-Pacific: 12.5% increase Old Line Life: 12.5% increase

Saver’s Select Term Comparison

Saver’s Select Benefits What is better than a fully guaranteed 30 year term life insurance product?

Saver’s Select Benefits A 30 year term life insurance product from F&G Life with a return of premium rider!

Saver’s Select Benefits Return of Premium Rider Compare 30 year term product with fully guaranteed rates versus 30 year term with 10 years guaranteed and the Return of Premium Rider Male 45 $500,000 non-smoker Preferred Class: F&G Life preferred with Return of Premium $1,615 First Penn-Pacific Life GTO30 $2,125 The Old Line Life $1,970 North American $1,750 Protective Life $1,615 West Coast $1,745 Coverage with more than canceled checks End of 30 year period ROP $48,450

A GREAT SALES OPPORTUNITY X,XXX,XXX term life insurance policies sold over last 5 years. 7 out of 8 illustrated were issued other than best rate No renewal commission No service fees Most without Disability Income rider Most without Return of Premium Rider Introducing F&G Life’s….

Saver’ Select Term Exchange Program Full Commissions! Non-Medical No Medical Examination No Blood No HOS Short-Form Application Renewals up to 10 years. Any fully-underwritten term issued in last 5 years* *consult ineligible carrier list

Saver’s Select Term Exchange Program The Hottest Term Product in America is Sizzling! Term to Term exchange Up through age 60 Face amounts from $150,000 to $500,000 Rider’s are transferred if available on Saver’s Select Up to 3 additional insureds can be added to 1 policy Can add Return of Premium Rider Initial Premium Draft - NEW Preferred class available

Saver’ Select Term Exchange Program Simple Process Complete Short-form application Attached original policy and photocopy of app & medical exam Complete transfer of ownership form Complete exchange transmittal Initial Premium Draft or PAC if requested State replacement form if applicable

Saver’s Select Term Exchange Program Ineligible Carrier List Empire General F&G Life (no internal exchanges allowed) Guaranteed Trust Lincoln Benefit Manhattan National The Midland Merit Life State Life United of Omaha U.S. Financial

Saver’s Select Term Exchange Program

Summary and Conclusions F&G Life has designed Saver’s Select to aggressively compete in the “neglected” brokerage term market Saver’s Select exemplifies F&G Life’s commitment to niche market opportunities Saver’s Select delivers distinct benefits to your clients Agents now have a product that they can afford to sell with less hassle for you & your customer

Saver’s Select…..Simply “Benefits for your clients if they need them…return of premium if they don’t”

Saver’s Select Marketing Materials