RETIREMENT INVESTMENTS INSURANCE BLUEPRINT FOR BUSINESS: KEEP WHAT YOU’VE BUILT Business Protection Planning

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Disclosures Neither ING nor its affiliated companies or its representatives offer tax or legal advice. The strategies suggested may not be suitable for everyone and you should consult with your tax and legal advisors before implementing any of the strategies suggested here. These materials are not intended to and cannot be used to avoid tax penalties, and were prepared to support the promotion or marketing of the matter addressed in this document. The taxpayer should seek advice from an independent tax advisor. Life insurance products are issued by ReliaStar Life Insurance Company (Minneapolis, MN), ReliaStar Life Insurance Company of New York (Woodbury, NY) and Security Life of Denver Insurance Company (Denver, CO). Within the state of New York, only ReliaStar Life Insurance Company of New York is admitted and its products issued. All are members of the ING family of companies. All guarantees are based on the financial strength and claims paying ability of the issuing insurance company who is solely responsible for all obligations under its policies. CN © 2013 ING North America Insurance Corporation 2

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline You’ve Invested A Lot In Your Business Time Money Passion Your Business CN © 2013 ING North America Insurance Corporation 3

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Two Levels of Decisions Level One: Day-to-Day Operations Keep the doors open Attract Customers Make Sales Minimize Costs 4 CN © 2013 ING North America Insurance Corporation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Two Levels of Decisions Level One: Day-to-Day Operations Keep the doors open Attract Customers Make Sales Minimize Costs 5 CN © 2013 ING North America Insurance Corporation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Two Levels of Decisions Level One: Day-to-Day Operations Level Two: Strategic Planning long-term direction long-term focus 6 CN © 2013 ING North America Insurance Corporation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Two Levels of Decisions Hard to Find Time To Make Strategic Decisions Two Reasons To Keep Current Your Business Is a Valuable Asset Your Business Can Help Increase Your Personal Net Worth 7 CN © 2013 ING North America Insurance Corporation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline I Can Help I can help you with some “Level Two” decisions My experience may help you: Protect your business’ value Use business dollars to potentially build your personal net worth 8 CN © 2013 ING North America Insurance Corporation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Protecting Your Business’ Value Your business is like a “goose that lays golden eggs” You protect the goose so the golden eggs can keep coming Your business interest is likely your most valuable asset A decrease in its value could have a big impact on your life 9 CN © 2013 ING North America Insurance Corporation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Protecting Your Business’ Value Protecting your business is a four-stage process: 1.Determine how much it is worth 2.Identify the events that could harm it 3.Develop effective contingency plans for these threats 4.Back up your plans with adequate resources 10 CN © 2013 ING North America Insurance Corporation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Protecting Your Business Plan for normal business calamities Plan for unexpected events: An owner’s death An owner’s disability Death or disability of a key employee Losing a key employee to a competitor 11 CN © 2013 ING North America Insurance Corporation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline What financial aspects of your business keep you awake at night? What concerns you most? Your business is your most valuable asset; it provides your financial foundation. CN © 2013 ING North America Insurance Corporation 12

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Do you have a plan in place to protect your family and your business? Suppose you died in an accident on the way home from work tonight CN © 2013 ING North America Insurance Corporation 13

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Suppose You Die Unexpectedly There is a Plan: What does it say? When was it created? What value does it place on your interest? Is there enough money backing it up? Does it make sense today? There is NO Plan: Who makes decisions? Will customers stay loyal? What will happen to your business interest? Will your key employees stay or be hired away? How much business value will disappear? CN © 2013 ING North America Insurance Corporation 14

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Do you have a plan in place to protect your family and your business? Suppose you don’t die in the accident but instead are permanently disabled CN © 2013 ING North America Insurance Corporation 15

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Suppose You Become Disabled There is a Plan: What does it say? When was it created? Who will do your job? How long will your salary and benefits continue? Is there money backing up the plan? There is NO Plan: Who will do your job? Will customers stay loyal? Will your key employees stay or be hired away? What will be the impact on profits? How much business value will disappear? CN © 2013 ING North America Insurance Corporation 16

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline If something happens to you, do you want to leave your future and your business’ future to chance? CN © 2013 ING North America Insurance Corporation 17

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Do you want to be able to create additional resources by selling your interest in the business? Suppose you want to (or have to) retire. CN © 2013 ING North America Insurance Corporation 18

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Suppose You Have To Retire There is a Plan: How does it work? Does it still make sense? Is it in writing? When was it last reviewed? What value does it put on your interest? Is there money backing up the plan? There is NO Plan: Who’ll buy your interest? What will be the price? Where will the money come from? Could this create conflict among family members? CN © 2013 ING North America Insurance Corporation 19

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Protecting / Motivating Your Key People You probably have special employees whose skills are critical to long-term profitability Your economic security may depend on their commitment to stay with the business The unexpected loss of a key employee can reduce business value and profits for years Key employees are among valuable assets CN © 2013 ING North America Insurance Corporation 20

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Smart Business Owners Carefully Manage Key Employees There is a five step process: Identify your key employees Quantify the value they bring to your business Understand their individual wants and needs Customize individual incentive packages for them Fund these incentives to recover the costs CN © 2013 ING North America Insurance Corporation 21

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Key employees are often taken for granted What would it mean to your business if your most valuable employee died or became disabled? CN © 2013 ING North America Insurance Corporation 22

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline A Key Employee’s Death or Disability There is a Plan: How will the work be re- allocated? How long will it take to find a good replacement? How long until he/she is up to speed? How long will pay continue? What will the impact be on revenues and profits? There is NO Plan: Will you have to take over the key employee’s job? Where will you find a good replacement? How will you recover the lost revenues and profits? What will be the impact on you and your retirement? CN © 2013 ING North America Insurance Corporation 23

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Do you want to risk the costs and expenses that come with a key employee’s death or disability? CN © 2013 ING North America Insurance Corporation 24

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Losing a key employee can be devastating What would it mean to your business if your most valuable employee was hired away by a competitor? CN © 2013 ING North America Insurance Corporation 25

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Losing a Key Employee Can Be Devastating How much harder will you have to work? How much business will he/she take with them? How much will it cost to hire/train a new person? Will the value of your business decrease? What will be the impact on your plans to retire? CN © 2013 ING North America Insurance Corporation 26

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline What’s Your Strategy For Keeping Key Employees Loyal? There is a Plan: What incentives are you offering? Are they backed up with money? What impact have the new 409A regulations had? How are you planning to recover your costs? There is NO Plan: Will you have to take over those duties? Where will you find and train a replacement? Will customers follow the key employee? Will other employees get upset and leave? CN © 2013 ING North America Insurance Corporation 27

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Do you want to risk the costs and expenses that come with losing a key employee to a competitor? CN © 2013 ING North America Insurance Corporation 28

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline A well-designed incentive plan does these things: Recognizes the key employee’s contributions Rewards superior performance Increases the rewards the longer the key employee continues to produce Recovers some or all of the plan’s costs Good Incentive Plans Keep Key Employees Happy & Productive CN © 2013 ING North America Insurance Corporation 29

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Good Incentive Plans Keep Key Employees Happy & Productive Commonly used key employee incentives include: Section 162 Bonus Plans Restricted Bonus (REBA) Plans Supplemental Executive Retirement Plans (SERPs) Endorsement Split Dollar Plans SERP / Split Dollar Combination Plans Split Dollar Loan Arrangements CN © 2013 ING North America Insurance Corporation 30

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline I Can Help You Protect Your Business Value I can help you get the most for the time, money and emotion you’ve put into your business I can help you protect its value: Review alternatives for estimating its current value Test your contingency plans to make sure they work Analyze alternatives for funding your plans Help you keep your plans up-to-date CN © 2013 ING North America Insurance Corporation 31

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline To assist you, I need some information: Organization: What is your business’ legal structure? Taxation: What are your business and personal marginal income tax brackets? Ownership: Who are the principal owners and what percentage interest does each have? Advisors: Who are your legal and tax advisors? Current Plans: What have you done so far? What I Need From You CN © 2013 ING North America Insurance Corporation 32

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Next Steps Wise business owners hope for the best, but they plan for the worst If something happens, they are prepared Where would you like to start? Review current business protection plans, or Protect against the loss of key employees CN © 2013 ING North America Insurance Corporation 33