TIP-OFF TO SALES How to Boost UL Sales in a Depressed Economy: The TransSecurity SM Solution John Oliver CLU, ChFC, MBA Vice President, Field Development

For producer use only. Not for distribution to the public.  Market Overview  What Clients are Looking For  How to Boost Your UL Sales  Tools and Resources Overview

For producer use only. Not for distribution to the public. Industry Trends, % -25% -50% 5% -14% -1% 1%1% 7%7% 12% -49% -52% -11% 0%0% ULTerm Whole Life VULTotal Source: LIMRA U.S. Individual Life Insurance Sales Trends Q3, 2009 PoliciesPremium

For producer use only. Not for distribution to the public. Challenges to Your Business Changing Environment  High-net-worth market  Estate Tax laws  Premium Financing  Guaranteed products

For producer use only. Not for distribution to the public. Challenges to the Opportunities of Future Generations  Budget deficits  Increased taxes & slower recovery  Real estate & equity depreciation  Retirement insecurity

For producer use only. Not for distribution to the public. Standard of Living: The Next Generation For producer use only. Not for distribution to the public. Source: The American Dream, CBS Poll, May 2009 Better or Worse Off? Same or Worse 52% Better 43%

For producer use only. Not for distribution to the public. “The biggest myth is that the stock market returns, on average, about 10% a year.” The Myth of Averages S&P ® 500 (total returns, %) as of 12/31/2009 Source: “Let's Bury The Myth Of Averages,” Forbes, February 23, 2009 Chart Source: Standard & Poor’s Index Services, Monthly Returns 0.4

For producer use only. Not for distribution to the public. Client Mindset For producer use only. Not for distribution to the public. Today’s Clients  Should they keep working longer?  Revise their retirement plans?  Scale back their standard of living now to conserve money for later?  What standard of living will my grandchildren have? Future Generations  Lower income  Higher taxes  Fewer entitlements  Less purchasing power  Fewer opportunities “Leave less to your heirs. Or even nothing at all.” Source: “Baby Boomers To Kids: Kiss Your Inheritance Goodbye,” The Wall Street Journal, July 2009

For producer use only. Not for distribution to the public. The TransSecurity SM Solution Creating Opportunities for Future Generations

For producer use only. Not for distribution to the public. The TransSecurity Solution A Guaranteed Policy Guaranteed Income Strategy Innovative Financial Underwriting The Transamerica Advantage A Guaranteed Policy

For producer use only. Not for distribution to the public. The TransSecurity Solution Independent of external factors Taxes Investments Economic Conditions Career Choices Taxes Investments Economic Conditions Career Choices

For producer use only. Not for distribution to the public. The TransSecurity Solution  Guaranteed Death Benefit  The “ACE” Advantage:  TransACE  UL  TransACE Survivor  2008 UL  Tax-favored status  Tax-free buildup of gain  Income & Estate Taxes  High Internal Rate of Return  Non-correlated to stock market A Guaranteed Policy Guaranteed Death Benefit  The “ACE” Advantage  TransACE  UL  TransACE Survivor  2008 UL

For producer use only. Not for distribution to the public. The TransSecurity Solution Female, Age 65 Male, Age 70 Standard Non-Smokers TransACE Survivor ® 2008 Premium: $ 30,187 Death Benefit: $2,000,000 For producer use only. Not for distribution to the public. A Guaranteed Policy Female, Age 65 Male, Age 70 Standard Non-Smokers TransACE Survivor ® 2008 Premium: $ 30,187 Death Benefit: $2,000,000

For producer use only. Not for distribution to the public. The TransSecurity Solution Year $2,000,000 Internal Rate of ReturnNet Death Benefit 10.41% 17.10% 33.13% A Guaranteed Policy 25$2,000, %

For producer use only. Not for distribution to the public. The TransSecurity Solution  Guaranteed Death Benefit  The “ACE” Advantage:  TransACE  UL  TransACE Survivor  2008 UL  Tax-favored status  Tax-free buildup of gain  Income & Estate Taxes  High Internal Rate of Return  Non-correlated to stock market A Guaranteed Policy  Guaranteed Death Benefit  The “ACE” Advantage:  TransACE  UL  TransACE Survivor  2008 UL  Tax-favored status  Tax-free buildup of gain  Income & estate taxes  High Internal Rate of Return  Non-correlated to stock market

For producer use only. Not for distribution to the public. The TransSecurity Solution A Guaranteed Policy Innovative Financial Underwriting The Transamerica Advantage Guaranteed Income Strategy

For producer use only. Not for distribution to the public. Dangers of Sudden Wealth  As many as 70% of those who come into sudden money end up losing it all because of their inability to deal with the practical, financial and emotional issues involved 1  44% of lottery winner winnings were spent after 5 years 2  Nearly one-third of lottery winners become bankrupt 3 1 MSN.com as quoted in (2010) 2 Camelot Group Plc (2003) 3 Certified Financial Planner Board of Standards, Inc (2003)

For producer use only. Not for distribution to the public. The TransSecurity Solution Income Protection Option (IPO)  Available at no additional cost  May include multiple beneficiaries 5 – 25 years / $100 min. $10,000 min. Guaranteed Monthly Income Stream Initial Lump Sum Back-End Lump Sum Guaranteed Income Strategy

For producer use only. Not for distribution to the public. The Turners’ Plan *A portion of each monthly payment and a portion of the final lump sum are reportable as interest income. The policy illustration provides the tax-reportable percentage for each monthly income payment and the final lump sum based on a 3% guaranteed minimum interest rate and the illustrated face amount. Upon the insured’s death, the actual taxable portion of each monthly payment will be calculated and communicated to the beneficiary(ies) based on the actual payout amounts. The taxable portion of the final lump sum payment will be determined when the payment is made. TransSecurity Solution: TransACE UL policy with the IPO on Eric Turner*

For producer use only. Not for distribution to the public. TransSecurity Solution: TransACE UL policy with the IPO on Eric Turner* IPO Offers Flexibility $25,000 Start-up Capital for business

For producer use only. Not for distribution to the public. IPO Calculator on TransWare

For producer use only. Not for distribution to the public. The TransSecurity Solution A Guaranteed Policy Transamerica Brand Innovative Financial Underwriting Guaranteed Income Strategy

For producer use only. Not for distribution to the public. The TransSecurity Solution Previous Guidelines  Estate Tax liability  Multiple of salary  Current in-force policies NEW Guidelines  50% of current net-worth  Growth factor: 7%  Multiple of salary  Current in-force policies Innovative Financial Underwriting

For producer use only. Not for distribution to the public. Calculating Net Worth AgeGrowth Rate Number of Years To age 657%15 Age 66 to 757%10 Over age 757%7

For producer use only. Not for distribution to the public. The TransSecurity Solution Example Female Standard Age 65 Male Standard Age 70 Net Worth: $4.0 Million Qualify: $5.5 Million Death Benefit Innovative Financial Underwriting

For producer use only. Not for distribution to the public. Financial Underwriting Estimator *Male, Age 45, Preferred, Non-smoker

For producer use only. Not for distribution to the public. The TransSecurity Solution A Guaranteed Policy Innovative Financial Underwriting Guaranteed Income Strategy The Transamerica Advantage

For producer use only. Not for distribution to the public. The TransSecurity Solution The Transamerica Advantage  Strong financials  High consumer value  Solid history, serving customers for over 100 years ®

For producer use only. Not for distribution to the public. The Transamerica Advantage

For producer use only. Not for distribution to the public. The TransSecurity Solution A Guaranteed Policy Guaranteed Income Strategy Innovative Financial Underwriting The Transamerica Advantage

For producer use only. Not for distribution to the public. The TransSecurity Solution HIGH-NET-WORTH MIDDLE MARKET ($10 Million +) MASS AFFLUENT ($1 - $10 Million) (less than $1 Million) Age

For producer use only. Not for distribution to the public. Possible Sources of Premium  Lazy asset rescue  Money markets/CDs  Municipal bonds  Annuities  IRAs  Premium financing

For producer use only. Not for distribution to the public. Top 10 Tools to Target a TransSecurity Sale

For producer use only. Not for distribution to the public. 34 Top 10 Tools 1. Two minute consumer video

2. template 3. Consumer Guide and Fact Finder

For producer use only. Not for distribution to the public. 6. Consumer lllustration Financial Underwriting Estimator IPO Calculator

For producer use only. Not for distribution to the public. 7. Producer FAQ8. Producer Flyer

For producer use only. Not for distribution to the public. YOUR CONTACT INFO HERE YOUR LOGO HERE 9. Co-branded web site

For producer use only. Not for distribution to the public. 10. TransSecurity Concierge Unit (866) Top 10 Tools

For producer use only. Not for distribution to the public. The TransSecurity Solution A Guaranteed Policy Guaranteed Income Strategy Innovative Financial Underwriting The Transamerica Advantage

For producer use only. Not for distribution to the public. Tip-Off to Sales Save the Date: March 9 Next Tip-Off: Term for Our Times Todd Ewing Vice President, Term Life and Direct Marketing

For producer use only. Not for distribution to the public. This material was not intended or written to be used, and cannot be used, to avoid penalties imposed under the Internal Revenue Code. This material was written to support the promotion or marketing of the products, services, and/or concepts addressed in this material. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely solely on their own independent advisors regarding their particular situation and the concepts presented here. TransACE ® is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA Policy Form # (CVAT), Group Certificate # (CVAT) for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary, and this policy may not be available in all jurisdictions. TransACE Survivor ® 2008 is a nonparticipating, flexible-premium universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA Policy Form # (CVAT), Group Certificate # for certificates issued under a group policy issued to the Rhode Island National Consumer Protection Trust. Policy form and number may vary and this policy may not be available in all jurisdictions. Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects. Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of January OLA 2055B 0210

TIP-OFF TO SALES How to Boost UL Sales in a Depressed Economy: The TransSecurity SM Solution John Oliver CLU, ChFC, MBA Vice President, Field Development