1. For broker/dealer use only. Do not use with consumers. Understanding Social Security A look at the bigger picture CLBD.1040 (07.13)

2. 2 For broker/dealer use only. Do not use with consumers. Why is Social Security Important? 96% of Americans are entitled to benefits* Benefits can be more substantial than you think Sam, 66 Life-long high wage earner $2,533/month Sue, 66 Non-working spouse $1,266/month $45,588 Per Year $1,000,000 *Source: www.ssa.gov

3. 3 For broker/dealer use only. Do not use with consumers. Talking to your clients about Social Security Social Security is complex and presents crucial financial decisions You don’t have to be a Social Security expert in order to identify options and potential pitfalls

4. 4 For broker/dealer use only. Do not use with consumers. Filing for Benefits: Sooner vs. Later

5. 5 For broker/dealer use only. Do not use with consumers. Sooner or later? $7,000 difference per year Additional $210,000 of income over 30 years Age 62 Age 66 Age 70 $750/month $9,000/year $1,000/month $12,000/year $1,320/month $15,840/year -25%+32% +76%

6. 6 For broker/dealer use only. Do not use with consumers. What’s the Right Decision? Individual decision Everyone’s situation is different Prepare in advance to make this decision Look at other income coming in Will they still be working?

7. 7 For broker/dealer use only. Do not use with consumers. Planning Opportunities Replacing lost income Stayed a home with children Life-long high wage earner Pete’s Social Security Benefit (monthly) $2,500 + Pam’s Spousal Benefit Equals 50% of Pete’s $1,250 = Monthly combined Social Security Income $3,750

8. 8 For broker/dealer use only. Do not use with consumers. Planning Opportunities Replacing lost income - Pam’s survivor benefit Equal to the greater of Pete’s benefit or her own $2,500 = Amount of income Pam needs to replace $1,250 Monthly combined Social Security income $3,750 Ten years later, Pete passes away…

9. 9 For broker/dealer use only. Do not use with consumers. Planning Opportunities Replacing lost income Purchase a Protective Advantage Choice UL with Income Provider Option With a $213,000 death benefit, the Income Provider Option would provide monthly payments for 20 years following Pete’s death. 1 $1,250 Guaranteed Monthly Income $3,750 = Pam’s survivor benefit $2,500 + 1 Assumes a Protective Advantage Choice UL 66 year old male, standard non-tobacco rate class. Monthly IPO benefit of $1,250 for 20 years. All guarantees are subject to the claims-paying ability of Protective Life Insurance Company.

10. 10 For broker/dealer use only. Do not use with consumers. With Understanding Social Security, you can: Teach your clients how to identify and prepare for key retirement decisions Learn how to guide clients through these key decisions Educate clients about their options Enhance client relationships Help position yourself as the premier retirement planning resource

11. 11 For broker/dealer use only. Do not use with consumers. Implementing Understanding Social Security in Your Practice Promote your services with a direct mailer series Educate clients with a consumer seminar and brochure/workbook Help your clients assess their situation with support materials like the consumer brochure, client worksheets, and online calculators

12. 12 For broker/dealer use only. Do not use with consumers. Social Security Explorer

13. 13 For broker/dealer use only. Do not use with consumers. Getting started

14. 14 For broker/dealer use only. Do not use with consumers. Important concepts Full retirement age, FRA File and suspend Restricted application Year of BirthFRA 1943-195466 195566 and 2 months 195666 and 4 months 195766 and 6 months 195866 and 8 months 195966 and 10 months 1960 or later67

15. 15 For broker/dealer use only. Do not use with consumers. Step 1: Enter ages

16. 16 For broker/dealer use only. Do not use with consumers. Step 2: Enter monthly benefits

17. 17 For broker/dealer use only. Do not use with consumers. Step 3: Other variables

18. 18 For broker/dealer use only. Do not use with consumers. Step 4: Client focus

19. 19 For broker/dealer use only. Do not use with consumers. Step 5: Adjust life expectancies

20. 20 For broker/dealer use only. Do not use with consumers. Step 6: Retirement age

21. 21 For broker/dealer use only. Do not use with consumers. Step 6: Retirement age

22. 22 For broker/dealer use only. Do not use with consumers. Step 7: Additional dropdowns

23. 23 For broker/dealer use only. Do not use with consumers. Step 7: Additional dropdowns

24. 24 For broker/dealer use only. Do not use with consumers. Step 8: Optional strategies

25. 25 For broker/dealer use only. Do not use with consumers. Getting Started Request materials from your Protective Life representative. Schedule a seminar

26. 26 For broker/dealer use only. Do not use with consumers. Important Information Protective and Protective Life refer to Protective Life Insurance Company (PLICO) and its affiliates, including Protective Life & Annuity Insurance Company. Variable annuities are issued by Protective Life Insurance Company in all states except New York and in New York by Protective Life & Annuity Insurance Company (PLAICO). Securities offered by Investment Distributors, Inc. (IDI). IDI is the principal underwriter for registered products issued by PLICO and PLAICO, its affiliates. All three companies are located in Birmingham, AL. Product availability and features may vary by state. Each company is solely responsible for the financial obligations accruing under the products it issues. Product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Examples presented are hypothetical case studies and are not indicative of the performance of any specific Protective Life product. Results could be higher or lower. This presentation represents only our current understanding of Social Security and Medicare in general and should not be considered legal or tax advice. Details of the Social Security and Medicare programs are subject to change at any time. Consumers should consult with their tax or legal advisor regarding their individual situations before making any legal or tax-related decisions. Visit www.ssa.gov for additional details.www.ssa.gov

27. 27 For broker/dealer use only. Do not use with consumers. Important Information Protective Advantage Choice UL (UL-21) is a universal life insurance policy issued by Protective Life Insurance Company, Birmingham, AL. Policy form numbers, product features and availability may vary by state. Consult policies for benefits, riders, limitations and exclusions. Subject to underwriting. Up to a two-year contestable and suicide period. Benefits adjusted for misstatements of age of sex. In Montana, unisex rates apply. All payments and all guarantees are subject to the claims-paying ability of Protective Life Insurance Company. This is only a summary of Income Provider Option endorsement benefits. Actual terms and conditions contained in the product policy and the endorsement govern benefits provided. A portion of periodic payments may be reported as taxable income to the beneficiary. Consumers should consult their attorney or tax advisor regarding their individual situations. Please see the endorsement for more detailed information. May not be available in all states or on all currently-marketed UL products. State variations may apply. Income Provider Option (UL-E35) is issued by Protective Life Insurance Company, Birmingham, AL.