Growth. Liquidity. Benefits. With Marty Ruby, FSA

Martin H. Ruby, FSA  Founded Stonewood Financial Solutions in 2001  Decades of experience developing, pricing and selling insurance and annuity products  Former CEO of Integrity Life and Senior Executive at Capital Holding (now part of AEGON)  Developed one of the first Universal Life Insurance product brought to market.

Founding Vision Our company exists to help people safely protect and grow their wealth – in ways they’ve never imagined before. Stonewood Financial Solutions was founded to bring actuarial expertise to individual clients.

DEMOGRAPHICS: Age 50 to 73 $100,000+ in non-qualified funds (often sitting in a CD, money market fund, or bank savings account) Could be existing annuity client IDENTIFIERS: Likely won’t need funds for a minimum of 3 to 5 years Frustrated by low interest rates and slow growth of assets Needs to keep funds liquid and secure Frustrated with high taxes For agent and administrator use only. Not for use with clients. The Prospect

The Challenge How is your client saving today? Potential for Growth Need for Security/ Liquidity *Low Returns *Taxed Yearly on Gains *Penalties to Access Money Early Savings Account CDs Money Market Funds * Higher Risk *More volatile *More Fees Invest- ments BondsStocks

The Solution Create a strategy that keeps money: Guaranteed ** 100% liquid + Growing with meaningful rates of return Tax-advantaged And provides: A death benefit Long-term care benefits ++ This presentation is based on products offering a rider available for purchase that waives all surrender charges, a 3% guarantee over the life of the product, and a provision allowing for the use of the death benefit to help cover long-term care expenses. **Guarantees rely on the financial strength and claims-paying ability of the issuing insurer. +With purchase of specific rider for an additional fee, to provide liquidity without penalty. ++For qualifying health conditions.

Indexed Universal Life The most common form of permanent life insurance. Premium paid, interest credited, charges deducted annually, grows year after year. How interest is credited to the policy: your account value can hold steady or ‘ratchet’ up. It cannot go down.

Your Client Might be Thinking… Isn’t life insurance illiquid? Usually it is. But our strategy includes a rider that keeps your money 100% liquid, (at book value) at all times. No withdrawal fees or penalties. * Isn’t there a premium to pay every year? Not for this kind of life insurance. You pay with a single premium when you purchase the policy. Aren’t gains taxed every year? In other vehicles they can be. But because this strategy uses life insurance, interest credited is tax deferred until you withdraw the funds. Death benefit is paid completely income tax free. ** *Rider is purchased at beginning of contract for an additional policy fee. **No statement contained herein, shall constitute tax, legal or accounting advice. Your clients should consult legal or tax professionals on any such matters.

Long-Term Care: Accessing Dollars for Pennies Your client withdraws 10% of the death benefit to cover qualifying long-term care expenses. Your client is only charged 10% of the account value for the withdrawal. = $45,1 24 in expen se = $84,0 66 in benefi ts

This Solution Delivers Insurance backed by a highly-rated company Guaranteed ** average interest rate credit of 3% a year over life of the policy Security Rider waives all surrender charges and withdrawal fees Money is 100% liquid at all times Liquidity + Gains are locked in Account value cannot decrease Up to 13.5% potential annual growth Meaningful Yield No income tax paid on death benefit Interest accrued is not taxed until withdrawn Tax Advantages Helps create an estate to pass on to your heirs Death Benefit Access a portion of the death benefit while living Help offset the cost of long-term care expenses. ++ Long-Term Care Benefits This presentation is based on products offering a rider available for purchase that waives all surrender charges, a 3% guarantee over the life of the product, and a provision allowing for the use of the death benefit to help cover long-term care expenses. **Life insurance guarantees rely on the financial strength and claims-paying ability of the issuing insurer. +Assuming rider has been purchased for an additional policy fee. ++Long-term care benefits available for qualifying health conditions.

Considerations When Structuring the Policy #1: Insurability  Client or spouse can be insured  Table-shaving option: rated up to 3 tables receives standard rating #2: Policy minimums and maximums  $100,000 minimum  $1 million maximum

The Sales Process Three Meetings - Meeting 1: Educate - Meeting 2: Propose - Meeting 3: Close Sales cycle takes approximately 40 to 60 days Rushing the sales process tends to backfire. Each meeting is important for building trust, understanding and confidence.

Meeting #1: Educate Get to know the client Explain strategy and benefits Offer to prepare a custom proposal for the client

Meeting #2: Propose Review strategy features and benefits Share custom proposal Complete application and set up underwriting

Meeting #3: Close Show actual policy benefits based on underwriting outcome Collect check or make arrangements for money transfer Deliver policy

Support Materials For the Agent: Training Webinar and Power Point Training Manual Sales meeting outlines Client in-take form Custom reports for clients Sample prospecting letters For the Client: Solution brochure and overview Sample client case study Indexing chart Custom proposals: overview, FAQs, illustration Newsletter content Supporting articles For agent and administrator use only. Not for use with clients.

Here To Help You Martin H. Ruby, FSA CEO Becky Ruby Swansburg Chief Marketing Officer Dennis L. Carr, FSA Chief Actuarial Officer Neil Wilding Executive Vice President

Next Steps Contact Jenny Access training guide and materials binder Schedule 1:1 with Marty

DISCUSSION

Growth. Liquidity. Benefits. With Marty Ruby, FSA