Life Insurance Strategies For Individuals with Special Needs Beneficiaries

2 Overview Special Needs Planning Life Insurance Needs Special Needs Trusts

3 Special Needs Planning Specialized area of estate and financial planning Often challenges you to balance your personal needs with the needs of the special needs beneficiary and other family members Every situation is unique

4 Special Needs Planning Requires an experienced team of legal and financial professionals Professional team that understands your needs and goals Legal advisors may be able to help you coordinate certain assistance for your special needs beneficiary, without potentially jeopardizing private or governmental benefits

5 Special Needs Planning – Gov’t Benefits Apply for any private or governmental benefit programs that are available Recognize that governmental benefit programs and regulations change Have your attorney review any proposed gifts or bequests that the special needs beneficiary may receive in order to potentially preserve benefit eligibility

6 Special Needs Planning Focus on personal planning needs first Attorney should review property ownership, beneficiary designations and estate planning documents Review savings, investments and life insurance needs

7 Special Needs Planning Review the needs, desires and abilities of the beneficiary with special needs Consider the financial and non-financial support available from relatives and friends Review the plans (and the planning needs of the beneficiary) on a periodic basis

8 Life Insurance Needs The life insurance needs for families with beneficiaries who have special needs can only be determined by a comprehensive life insurance review One size does not fit all

9 Life Insurance Needs Term Insurance Permanent Insurance

10 Life Insurance Needs Death Benefits Family or spousal income Extinguish debts and to cover final expenses Fund or offset tax obligations Fund personal or charitable bequests Fund special needs trusts Other personal, family or business needs

11 Important Life Insurance Questions Do you have the right type and amount of life insurance coverage? Have you reviewed the ownership & beneficiary decisions recently? Have your needs changed? Are your life insurance policies competitive and cost-effective? 1 Additional underwriting requirements may apply; no guarantee that insured(s) will qualify for increased death benefit protection.

12 Special Needs Trusts Family trust or “living trust” A testamentary trust in your will Irrevocable Life Insurance Trust (ILIT) Pooled trusts established by non-profit associations in your state Self-settled Special Needs Trusts created by the beneficiary with special needs

13 Family Trusts Revocable, or family trusts, are usually created by individuals or couples during their lifetime Family trusts are usually established to minimize probate costs & to provide for the potential risk of the beneficiary’s future incapacity A well-designed trust may be able to provide assistance without jeopardizing current or future governmental benefits

14 Family Trusts Can purchase & own life insurance Can provide death proceeds that may be used to provide lifetime assistance to a beneficiary with special needs Can provide an alternative to personal ownership, to help shelter proceeds from estate taxes

15 Family Trust – Example Widow establishes a family trust during her lifetime to provide for her adult child with special needs Family trust purchases & owns life insurance policy Family trust collects life insurance proceeds upon widow’s death Family trust provides child with assistance and support not provided by federal and state benefit programs This hypothetical example is for illustration purposes only. Actual results will vary.

16 Testamentary Trusts Created in the donor’s will Used as an alternative to an outright bequest to a beneficiary with special needs Typically becomes irrevocable after death

17 Irrevocable Life Insurance Trusts Lifetime trusts Purchase and own life insurance coverage Often used to shelter life insurance proceeds from estate taxation Death proceeds used to provide estate liquidity and to provide additional support to a beneficiary with special needs

18 How Can I Help Analyze your financial plan Help clarify your needs Integrate other financial needs Review existing life insurance coverage Work along with your attorney and other professional advisors

19 MetLife Strength and Stability One of America’s largest financial companies with roots as far back as 1863 Serves over 90M Customers worldwide 1 $454B of managed assets 2 More than 750 investment professionals and support staff to support our investment portfolio Diversified Portfolio 1- As of December 31, As of September 30, 2013

20 Important Note: Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent advisor. MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisers regarding your particular set of facts and circumstances.

21 Insurance Products: Not A Deposit Not FDIC-Insured Not Insured By Any Federal Government Agency Not Guaranteed By Any Bank Or Credit Union May Go Down In Value Important Information The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance or other financial products and services. Clients should seek advice based on their particular circumstances from an independent tax advisor since any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. MetLife, its agents, and representatives may not give legal, tax or accounting advice and this document should not be construed as such. Clients should confer with their qualified legal, tax and accounting advisors as appropriate. MetLife life insurance policies have limitations, exclusions, charges, termination provisions and terms for keeping them in force. There is no guarantee that any of the variable investment options in this product will meet its stated goals or objectives. Guarantees are subject to the claims paying ability and financial strength of the issuing insurance company. Metropolitan Life Insurance Company, New York, NY CLVL23742 L [exp0615] © 2014 METLIFE INC. PEANUTS © 2014 Peanuts Worldwide