1. Indexed Universal Life (IUL) April Deng 1-10-2015

2. The Evolution of Phone

3. The Evolution of Life Insurance

4. Term Life Insurances Pros: 1) Affordable and therefore can get large face amount. 2) Some employers may provide it. Cons: 1) You have to die to get death benefit; 2) Not portable if provided by employer; 3) May be denied at renewal if though employer Permanent Life Insurances  Whole Life  Variable Life  Universal Life  Indexed Universal Life  Variable Universal Life Types of Life Insurances

5. Savings program mirroring Index:  Guaranteed growth 0-15%  Tax advantages  Access cash value at any time  Lawsuit/creditor proof  No effects on college financial aid

6. 6 For Internal Training Purpose Only Not for The Public, Internal Training Only

7. IUL: Index Universal Life Indexed UL credits interest based on performance (or weighted) of a linked Index or Indexes, multiplied by a participation rate, subject to a cap and a floor rates. IndexNW IUL 8% 20%12% (Cap) -20%0% (Floor)

8. Concept of IUL Market IUL Never Lose Money – Warren Buffett

10. What Can IUL Do For You?

11. Case Study 1 Mr. Young ◦ 30-year-old ◦ Father to a new born baby ◦ $300K mortgage ◦ Family AGI $140K ◦ 10% contribution to 401K What can IUL do for him?

12. 30 Year Old, 700K IUL At age 85, Total return = $168,806 + $744,053 + $555,162 = $1,468,000

13. Case Study 2 Mr. Mature ◦ 50-year-old ◦ Family AGI $200K ◦ Kids have grown up ◦ $220K Rental property What can IUL do for him?

14. 50 Year Old, 800K IUL How likely will his 220K house become a 2 million house in 35 yrs? Maintenance free ? Tax free?

15. College Education Funding

16. Asset Protection STATELIFE INSURANCE CASH VALUE LIFE INSURANCE PROCEEDS Texas100% Texas Ins. Code§ 1108.051 Same as life insurance cash value Maryland100% if made for the benefit of spouse, child or dependent. Md. Code Ann. Ins. § 16-111 Same as life insurance cash value LousianaBeneficiary’s interest in proceeds and avails 100% protected. Limited to $35,000 if issued within 9 months. La. Rev. Stat. Ann. §22.912 100% La. Rev. Stat. Ann. §22.912 New York100% N.Y. Ins. Law § 3212(b). In re Mesinger, 29 F.2d 158 (2nd Cir. 1928) 100% N.Y. Ins. Law § 3212(b) PennsylvaniaIncome or return of $100/mo 42 Pa. C.S. § 8124(c)(3) 100% if payable to spouse, child or dependent. 42 Pa. C.S. § 8124(c)(6)

17. Frequently Asked Questions about IUL

18. IUL too expensive? Case I. 40 Years old Male, Preferred plus rate class, $500K face amount From Age 40-80, total 40 years, IUL Case II. 40 Years old Male, Preferred plus rate class, $500K face amount From Age 40-80, total 40 years, Term 20 years + another term 20 years Buy a BMW vs a Ford. A Mansion vs renting an apartment

19. IUL too expensive? Case I 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, IUL Cost total: $5,252 + $4,800 + $14,625 + $26,602 = $41,279 Annual average cost : $1,032 Case II 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, Term 20 years + 20 years Cost total: $8,160 + $51,160 = $59,320 Annual average cost : $1,483, Actually $2,100

20. It’s Too Good To Be True? Shift to Wealthier Clientele Puts Life Insurers in a Bind The Wall Street Journal - October 3, 2010 Shift to Wealthier Clientele Puts Life Insurers in a Bind The Wall Street Journal - October 3, 2010

22. Any Drawback in IUL? Depending on health condition Not for short term investment Designed to be adequately funded, not under-funded. Early cancellation strongly discouraged. Need discipline!

23. Just like the BMW M-6, IUL is a great vehicle, If only you know how to drive it!

24. REAL SHORT-COMINGS OF IUL Too complicated ◦ Like all modern cars, the BMW M6 is very complicated ◦ BMW sends the buyer of their M6 to special driving school before they hit the road ◦ M6 needs true professionals who can maintain the vehicle in a proper way Designed to be sufficiently funded ◦ You buy a super car like the M6, you expect it to consume some gasoline, so fill up the tank before expecting it to outrun a Mazda You lose money if the policy is cancelled early on ◦ You buy a brand new M6, and sell it next year, you’ll not get all your money back. Aren’t those common sense?

25. Thank You! Conclusion A well maintained IUL can do tremendous things for family!