AVIVA Wealth Transfer Planning PR03A042US For Agent Use Only 8/03 David McNamara, Senior Consultant, Advanced Markets Our event will begin shortly

AVIVA PR03A042US For Agent Use Only 8/03 Our Agenda The Opportunity Case Studies Products Sales Tools Marketing Tools

AVIVA PR03A042US For Agent Use Only 8/03 Wealth Transfer - The Opportunity

AVIVA PR03A042US For Agent Use Only 8/03 Sales Opportunity Quiz How may people are there age 65 and over in the United States? 34 Million! How much estate wealth is expected to transfer between generations over the next 20 years? $10,000,000,000,000 (yes, that’s ten trillion dollars!) Generally speaking, are people over 65 more concerned with growth of assets or capital preservation? Capital preservation! Q: A: Q: A: Q:

AVIVA PR03A042US For Agent Use Only 8/03 A World of Opportunity Changing demographics – an aging population A predicted $10 trillion intergenerational wealth transfer The appeal of “low risk” fixed products in the mature market Helping clients give “The Ultimate Keepsake” – a matter of intent

AVIVA PR03A042US For Agent Use Only 8/03 Wealth - By The Numbers People over age 55 currently control nearly two-thirds of all the nation’s financial assets They also own over 60% of all annuities Sixty percent of Americans are thinking about “the safest place” when considering the best place for their money *(June, 2003 Roper Report) *(Federal Reserve Report, August 2003 )

AVIVA PR03A042US For Agent Use Only 8/03 LIMRA Survey A LIMRA survey said that over 85% of monies placed in Single Premium Annuities are not withdrawn during the annuitant’s lifetime! WHY?

AVIVA PR03A042US For Agent Use Only 8/03 Many widows and widowers:  Change the registration on their mutual funds to read: “ Transfer on death to my children”  Change the registration on their certificates of deposit (CDs) “Payable on death to my children”  Name their children as the beneficiaries of their annuities WHY?

AVIVA PR03A042US For Agent Use Only 8/03 They want to leave their money to their loved ones when they pass on

AVIVA PR03A042US For Agent Use Only 8/03 Many Retirees: Have adequate income and other assets Have earmarked certain assets (CDs, annuities) for their heirs, mainly children and grandchildren Will not change the spending habits Prospects who fit this profile are ideal candidates for a “Single Premium Life Insurance” plan

AVIVA PR03A042US For Agent Use Only 8/03 Annuities vs. Single Premium Life

AVIVA PR03A042US For Agent Use Only 8/03 A Two Question Sales Process DO YOU HAVE ANY ACCOUNTS OR ASSETS YOU SPECIFICALLY INTEND TO LEAVE TO......your family?... a charity?…or a religious organization?

AVIVA PR03A042US For Agent Use Only 8/03 A Two Question Sales Process “If I could show you how to significantly increase the amount of money you intend to leave to your family immediately, income tax-free and you would still control the cash, and it is safe, would you be interested?”

AVIVA PR03A042US For Agent Use Only 8/03 Candidate Profile - Single Premium Life Single retiree between the ages of 60 and 80 in reasonably good health Adequate retirement income Sufficient assets to maintain desired lifestyle Certain assets targeted for heirs, religious organizations or charities No need for complicated estate planning

AVIVA PR03A042US For Agent Use Only 8/03 Case Study I Janet Janet is healthy, age 62. She has $55,000 sitting in several certificates of deposit, which are due to mature shortly. Janet is also the proud grandparent of three children whom she adores.

AVIVA PR03A042US For Agent Use Only 8/03 Case Study I A Better Alternative Use the $55,000 to fund a single premium UL policy, designating her 3 grandchildren as beneficiaries, thus purchasing $114,436 of guaranteed death benefit that will pass to her grandchildren income tax free 1 She is not anticipating an estate tax problem. Janet owns the policy instead of placing the policy in a trust, therefore retaining control. Based upon current interest rates, the death benefit grows to $129,613 by year 10 and $158,074 by year 20 (assuming no loan, withdrawal or surrender). 1 Based upon female age 62 non-tobacco rates, and guaranteed interest of 3.00%. 2 Based on a credit rate of 5.72%.

AVIVA PR03A042US For Agent Use Only 8/03 Case Study II* Single Premium Survivor Life

AVIVA PR03A042US For Agent Use Only 8/03 Case Study II Considering Alternatives You have learned that this couple has adequate income to continue in their current lifestyle You have also learned that they have “earmarked” a sum of $125,000 from their bank accounts to be split equally between their three children and a favorite charity You have uncovered a “Wealth Transfer” sale

AVIVA PR03A042US For Agent Use Only 8/03 Case Study II The Solution Purchase a Single Premium Survivorship Universal life policy with a single premium of $125,000, generating a guaranteed death benefit of $223,935 Death benefit is payable only when both of the insureds have died A $125,000 annuity earning 6% interest would take over 10 years to grow to $227,208, by which time the clients would be over 83 years old!

AVIVA PR03A042US For Agent Use Only 8/03 Candidate Profile Single Premium Survivor Life Married couple between the ages of 60 and 80 Have adequate retirement income Have sufficient assets to maintain desired lifestyle until both have died Have earmarked certain assets for heirs, religious organizations or charities Have little need for complicated estate planning At least one person in good health

AVIVA PR03A042US For Agent Use Only 8/03 Converting Existing Annuities Revisit existing annuity clients to determine their intentions regarding the ultimate disposition of the proceeds from their annuity “A Matter of Intent”

AVIVA PR03A042US For Agent Use Only 8/03 The Approach: One statement followed by one question. The Statement: “I have heard of an idea which is being taken advantage of by people like yourself who own annuities, and I would like to share it with you.” The Question: “Do you think you will ever spend the money in the annuity during your lifetime or do you intend to leave it to your children, grandchildren, religious organization or charity?”

AVIVA PR03A042US For Agent Use Only 8/03 Stepping Up to the Next Level Estate Planning Techniques Wealth Transfer market: Discovering larger sales: Variety of solutions: A Double Opportunity Average annual premiums over $20,000 Irrevocable Life Insurance Trusts (ILIT) Use of survivor life policies Gifting strategies

AVIVA PR03A042US For Agent Use Only 8/03 Prospecting in the Wealth Transfer market can uncover additional, larger sales Estate taxes can significantly deplete the estate passing to heirs depending on the year of death….will heirs be forced to sell treasured assets to pay estate taxes?

AVIVA PR03A042US For Agent Use Only 8/03 The Products

AVIVA PR03A042US For Agent Use Only 8/03 Keepsake 201 Single premium universal life design Multiple Premium Options (Up to 5 Years) Guaranteed Return of Principal Guaranteed Initial Face Amount Pro rata reduction of guarantees with withdrawals 10% surrender charge free withdrawal years 1-5, 12% years 6-9 3% Minimum Guaranteed Rate

AVIVA PR03A042US For Agent Use Only 8/03 Underwriting Made Easy Issue ages 40 to 85 Simplified issue for net amount of risk of $100,000 and under No blood/urine Main focus on APS as primary information source Standard through Table D Ratings up to P available Annuity fallback option right on the app!

AVIVA PR03A042US For Agent Use Only 8/03 Why Keepsake 201? Immediately INCREASES the Death Benefit Value to beneficiaries A TAX-EFFICIENT way to transfer wealth to beneficiaries INCOME-TAX FREE Death Benefit to beneficiaries Life Insurance AVOIDS PROBATE* LIQUIDITY for the owner should the need arise *Provided the estate is not named as beneficiary.

AVIVA PR03A042US For Agent Use Only 8/03 Keepsake 201 provides leverage: A $150,000 legacy costs less! Gains taxable every year

AVIVA PR03A042US For Agent Use Only 8/03 Keepsake 201 provides leverage: A $150,000 legacy costs less! Savings of over $75,000! Income Tax Free Death Benefit!

AVIVA PR03A042US For Agent Use Only 8/03 Can you help the client do something with $75,000?

AVIVA PR03A042US For Agent Use Only 8/03 Treasure 201 Duplicate features of Keepsake 201 First year premium enhancement bonus of 4% Trade off with writing agent’s compensation

AVIVA PR03A042US For Agent Use Only 8/03 Keepsake Survivorship 200® Same guarantees as Keepsake 201 Return of Premium Guarantee* Death Benefit Guarantee* Covers two lives Liquidity will be enhanced to match the Keepsake 201 *assuming no loans, withdrawals or change in face amounts

AVIVA PR03A042US For Agent Use Only 8/03 Sales Tools

AVIVA PR03A042US For Agent Use Only 8/03 Keepsake 201 & Insmark -- A Winning Combination

AVIVA PR03A042US For Agent Use Only 8/03 Keepsake 201 vs. Annuity Insmark Presentations are Clear and Easy to Understand Female Age 70, with a $100,000 premium deposit Assume 4.5% Annuity Growth 27% Tax Bracket

AVIVA PR03A042US For Agent Use Only 8/03 Repositioning Assets

AVIVA PR03A042US For Agent Use Only 8/03 Marketing Tools

AVIVA PR03A042US For Agent Use Only 8/03 Agent website: Keepsake client CD Wealth transfer flyers Overview of wealth transfer concept Various case designs Wealth transfer planning tax basics Sample pre-approach letters Client point of sales track Ad mat sample of pre-approved ads for client seminar Sample seminar invitation Ultimate Keepsake Power Point presentations for client seminars Various product brochures Keepsake 201, Treasure 201 & Keepsake Survivorship 200 policy specs

AVIVA PR03A042US For Agent Use Only 8/03 Our contact info: Advanced Markets option 5

AVIVA PR03A042US For Agent Use Only 8/03 Neither Aviva nor any of its employees is authorized to give legal, tax or accounting advice. Any information and/or sample documents provided by Aviva are for informational use only. Agents are advised that any information and/or sample documents provided by Aviva are generic in nature. Your state laws may vary. Agents are strongly advised to consult with individual client’s legal, tax and/or financial professional for specific advice or recommendations.