Discover Living Benefits Within a Life Policy For Agent Use Only – Not For Use With The Public “Finally, a concept that recognizes the importance of paying a benefit when the insured needs it most.”

For Agent Use Only – Not For Use With The Public 2 LifeVentures Producers Group 25 MGAs/wholesalers in New York Currently the sole marketer of this concept to independent distributors Strong compensation Trademarked name—Life for the Living TM More supported products and concepts to follow LifeVentures website: Veris Settlement Partners

For Agent Use Only – Not For Use With The Public 3 Market Overview US population is under-insured –Decline in agent population means fewer are afforded the opportunity to purchase individual life insurance –Excessive reliance on group term –Many people tend to value “living” benefits over death benefits only Need for living benefits –Population aging –Concern of out-living assets –Choices and greater flexibility –Financial independence later in life and not becoming a burden on children or other relatives –Protection of retirement income and assets from potentially devastating LTC costs –A ready source of funds

For Agent Use Only – Not For Use With The Public 4 Source: Population Division, US Census Bureau (August 14, 2008)

For Agent Use Only – Not For Use With The Public 5 Market Overview Financing long-term care is a looming national crisis –Need for long-term care will explode as population ages –Public programs are inadequate –LTC insurance is available but cost can be unaffordable –“Use it or lose it”

For Agent Use Only – Not For Use With The Public 6 Market Overview 40% of all Americans who reach age 65 may need long-term care at some point in their remaining lives 1 By 2020, about 157 million Americans will be afflicted by a chronic illness 2 Chances of needing homeowners insurance for serious damage: 1 in 1,200 3 –Chances of needing some form of long-term care: 1 in 2 4 Accidents, strokes and other illnesses cause adults age 18 to 64 to make up 40% of people needing long-term care 5 A private room in a nursing home now averages more than $74,000 a year 6 Health insurance plans don’t cover certain costs associated with long-term illnesses –Medicaid only pays when an individual has spent down or liquidated a substantial amount of their assets How does your client plan on paying for uninsured medical costs? 1.National Clearinghouse for Long-Term Care Information, U.S. Dept. of Health and Human Services (2007) 2.U.S. Department of Health and Human Services, Table A-1 and Federal Reserve Flow of Accounts, Table B According to Centers for Medicare and Medicaid Services (CMS) at 5.U.S. Department of Health and Human Services, National Clearinghouse for Long Term Care Information (January 8, 2007) 6.The MetLife Market Survey of Nursing Home and Health Care Costs (Sept. 2006)

For Agent Use Only – Not For Use With The Public 7 The Concept What if there was an innovative way to have meaningful “living” benefits within a competitive Universal Life insurance policy, which provides…

For Agent Use Only – Not For Use With The Public 8 The Concept Combination of life insurance and accelerated benefits for chronic illness in one product Policy to cover the total lifetime of insureds Protects against early death Provides a tax-free annual benefit on chronic illness certification on a “cash basis” Ability to use annual benefit for any need Ability for paid-up policy on amounts not accelerated Retains pro-rata share of existing CSV “Me” policy for the insured “Use it or use it.”

For Agent Use Only – Not For Use With The Public 9 Policy Benefits Two Competitive Products: –Current Assumption UL-Assured Plus Protector –Indexed UL-Ultra Select –Underwritten by National Life Insurance Company –Death Benefit flexibility –Access to cash value through policy loans and withdrawals –Premium flexibility –Accelerated Benefit Rider for Chronic Illness available on all policies up to $2 million. Additional policy issued above $2 million.

For Agent Use Only – Not For Use With The Public Policy Benefits At Chronic Illness Trigger –Annual benefit available up to annual IRS limits ($102,200 annually/$280 day in 2009, $290/day in 2010, $300 day in 2011, indexed annually) –Cash benefit—No restrictions as to the use –Income-tax free living benefits –No additional cost for the rider –Ability for paid-up policy on Death Benefit not accelerated –No waiting period, no 90-day elimination period Payment of Accelerated Benefits will reduce the cash value and death benefit otherwise payable under the policy. Receipt of Accelerated Benefits may be taxable and may affect eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children, and Supplemental Security Income. Prior to applying for accelerated benefits, policy owners should seek assistance from a qualified tax and consult with the appropriate social services agencies concerning how receipt will affect the eligibility of the recipient and/or the recipient’s spouse or dependents. This product is life insurance policy with a rider that accelerates the death benefit on account of chronic illness and is not a health insurance policy providing long term care insurance subject to the minimum requirements of New York Law, does not qualify for the New York State Long-Term Care Partnership Program, and Is not a Medicare supplement policy.

For Agent Use Only – Not For Use With The Public 11 Accelerated Benefit Options –No restrictions on the use of benefits received –Can be used for any expense including: Uncovered medical expenses or deductibles Cover expenses for home health or friends to assist with your care Replace income or help with everyday expenses Home modifications Cover expenses for medical procedures or drug therapies Travel or entertainment Savings, replenish retirement assets or reduce debt Make gifts to loved ones

For Agent Use Only – Not For Use With The Public 12 Policy Specs Issue ages 0-85, five underwriting classes –Two Preferred NS classes –Table III to Standard Program –Two smoker classes (Preferred and Standard) Minimum face amount: $250,000 Maximum face amount with rider: $2,000,000 –Additional policy issued on policies greater than $2 million Available on all table ratings Mortality vs. Morbidity underwriting Currently New York only for new issued policies Other riders (Accelerated Benefits for Terminal Illness, Over Loan Protection)* *Riders are optional and may require additional premium.

For Agent Use Only – Not For Use With The Public National Life Products Assured Plus Protector –Current Assumption UL –Very competitive premiums –Builds strong CSVs –Extends Death Benefit to age 120 –Minimum Annual Interest Rate 3.0% –Living Benefits Ultra Select –Indexed UL –Indexed strategies Fixed Term Strategy Four Point-to-Point Strategies Minimum Annual Interest Rate 2.5% –Section 79/Qualified Plans –Enhanced Policy Protector –Living Benefits

For Agent Use Only – Not For Use With The Public 14 National Life National Life Insurance Company –Owned under a mutual holding company –160-year-old company –Innovative products –Strong sales results –Has never increased COI’s on in-force policies Ratings –A (Excellent): AM Best. Third highest out of 15 rankings –A+ (Strong): Standard & Poors. Fifth highest out of 17 rankings –A 2 (Good): Moody’s. Sixth highest out of 21 rankings Ratings are subject to change.

For Agent Use Only – Not For Use With The Public 15 Product Positioning Two competitive UL products. These products should be the foundation of any individual’s life insurance planning Premium Options-Minimally Funded, Endow, Limited Pay, 1035x No additional cost Accelerated Benefits Rider for Chronic Illness- Available up to $2 million of Death Benefit Flexibility of rider –Determine the annual benefit ($0 to annual IRS limits) –Paid-up policy At initial trigger (yes/no) In any year thereafter if still cannot perform 2 of the 6 ADL’s –CSV reduced by annual % reduction of Death Benefit Can use CSV to fund future premiums Can take tax-free withdrawal up to basis Cash benefit Can be written in a Trust (Estate Tax Planning)

For Agent Use Only – Not For Use With The Public 16 Universal Life Insurance With Living Benefits Policy values can also be accessed through policy loans and withdrawals. Policy loans and withdrawals or the receipt of accelerated benefits will reduce the policy’s cash value and death benefit and may result in a taxable event.

For Agent Use Only – Not For Use With The Public 17 This illustration of benefits is hypothetical and will not reflect your client’s issue age, underwriting class, or face amount. Benefits and values are not guaranteed. Actual results may be more or less than illustrated. Generic Illustration 1

For Agent Use Only – Not For Use With The Public 18 This illustration of benefits is hypothetical and will not reflect your client’s issue age, underwriting class, or face amount. Benefits and values are not guaranteed. Actual results may be more or less than illustrated. Generic Illustration 2

For Agent Use Only – Not For Use With The Public Duration of Benefit 19 Life Expectancy (at time of first benefit payment) Assumed number of total payments Remaining Death Benefit after total payments 3 years4$1,524,056 4 years5$1,374,775 5 years6$1,212,643 6 years7$1,037,097 7 years8$847,661 8 years9$643,624 9 years10$424, years11$189,303 Male attained age 75; nontobacco insured; $2,000,000 DB; $100,000 annual benefit. Policy not paid up, although it is assumed the policy has a substantial surrender value. This illustration of benefits is hypothetical and will not reflect your client’s issue age, underwriting class, or face amount. Benefits and values are not guaranteed. Actual results may be more or less than illustrated.

For Agent Use Only – Not For Use With The Public 20 National Life’s Underwriting Programs Table III to Standard Rider on all policies regardless of the rating class up to $2 million Mortality vs. Morbidity underwriting TERMout* –Preferred or Standard Term policy 0-5 years from issue up to $1.5 million 6-7 years from issue up to $1.0 million –Converted to National Life’s universal life products –Extensive list of companies on approval list –Two options: No underwriting-Wait two years for Chronic Illness Accelerated Rider Full application, minimal underwriting-Rider on at issue –Regulation 60 required –Maximum issue age 65 JUMPin* –Preferred or Standard UL policy within last 3 years Or 5 years if had physical exam in last 24 months –Replacement of current contract not required –Minimal underwriting, extensive list of companies on approved list –Maximum Death Benefit: $1 million –Rider on at issue –Maximum issue age 65 Expedited Regulation 60 (1035x) process *These are not guaranteed issue programs. Additional medical requirements may be needed.

For Agent Use Only – Not For Use With The Public Potential Sales Opportunities Foundation of any individual’s life insurance planning –Permanent life insurance need –Current assumption UL/Indexed UL products –Provide Living Benefits option –TERMout and JUMPin programs –Strong CSV’s Consumer Profile –Insurance capacity and healthy –Have not planned for LTC –No need to self-insure for unreimbursed medical costs –Wealth transfer/charitable giving at death –“Use It or Use It” Other –Suitable buy/sell product –Qualified Plans/Section 79 –Profit sharing plans –ILIT-Estate tax planning 21

For Agent Use Only – Not For Use With The Public

Discover Living Benefits Within a Life Policy