1. Asset Protection+ Preserving A Legacy Of Retirement Assets Using Life Insurance Joe Sample, [Designations per field stationery guidelines] [Company Approved Title] [Agency Name] [The Prudential Insurance Company of America][if Agency Distribution] [1234 Main Street, Suite 1, Floor 10] [Anywhere], [ST] [12345] [in required states] [ Insurance License Number ] Phone [123-123-1234] Fax [123-123-1245] [joe.sample@prudential.com] NOT FOR CONSUMER USE © 2015 Prudential Financial, Inc. and its related entities 0241306-00010-00 Ed. 03/2015 Exp 09/10/2016

2. Succession Distribution What are two common financial goals many affluent clients have during the second and third phase? 1. Have enough assets during their lifetime 2. Leave a legacy to their heirs at death Accumulation Financial Lifecycle Before We Begin… NOT FOR CONSUMER USE 2

3. Agenda Legacy Threats Why Asset Protection+ Getting Started Examples in this presentation are hypothetical and used for illustrative purposes only to describe how the strategy may work. Which strategy works best for clients will depend on their individual facts and circumstances. Actual results will vary. Any representation of life insurance premium or death benefit is purely hypothetical in amount and is not a guarantee of cost or death benefit now or in the future from a specific life insurance policy. NOT FOR CONSUMER USE 3

4. Clients Who May Benefit… Age 59 ½ + and family oriented Net worth of $1,000,000 and sufficient liquid assets to support this strategy (excluding equity in the home) Hold an IRA not needed for support in retirement Have sufficient retirement income from other sources, besides the IRA. Additionally, the client should have a financial plan completed as determined in conjunction with their financial advisor Desire to provide for children, grandchildren, and/or charity and consider the IRA as a “leave-on” asset for them 4 Not for Consumer Use. NOT FOR CONSUMER USE 4

5. Legacy Threats “What are two common risks that can negatively impact a client’s ability to leave a legacy to heirs?” One that you can calculate and one you can not: Taxes Chronic illness NOT FOR CONSUMER USE 5

6. StockBond IRA CD or Cash Capital gain on realized gains, ordinary income on interest and dividends Step-up in basis at death, subject to estate taxes Withdrawals are included in gross income and are subject to federal income tax and estate taxes. Mutual Fund Legacy Threats Taxes are a reality NOT FOR CONSUMER USE 6

7. Legacy Threats Taxes are a reality Assumes the IRA is liquidated by one beneficiary at IRA owner’s death as a lump sum subject to a tax rate of 39.6%. There may be other options besides lump sum available. How much is a $500,000 IRA really worth to heirs? Income Tax $198,000 39.6% NOT FOR CONSUMER USE 7

8. Legacy Threats Chronic illness is a reality 78 million baby boomers will retire over the next two decades 1 About 70% of Americans over age 65 will require some type of chronic care services during their lifetime 2 Average national costs of chronic care 3 (2010) in the United States:  $205/day for a semi-private room in a nursing home ($74,825/year)  $229/day for a private room in a nursing home ($83,585/year)  $3,293/month for one bedroom unit in an Assisted Living Facility ($39,516/year)  $21/hour for a Home Health Aide ($30,660/year at 4 hours/day) 1 U.S. Census Bureau, Facts for Figures, 2006. 2 Source: http://www.longtermcare.gov/LTC/Main Site/index.aspx Last accessed April 8, 2013. 3 Source: www.longtermcare.gov. U.S. Department of Health and Human Services. May, 2011. Statistics referenced on this slide are believed to be the most up-to-date available as of April, 2013. NOT FOR CONSUMER USE 8

9. Legacy Threats Chronic illness is a reality 15 million Americans currently provide UNPAID care to adults with Alzheimer’s or another dementia (22 hours per week on average) 4 80% of care provided at home is delivered by FAMILY caregivers 4 Less than 10% of older adults receive all their care from PAID workers 4 4 Source: Alzheimer’s Association, 2011 Alzheimer’s Disease Facts and Figures, Alzheimer’s & Dementia, Volume 7, Issue 2 Statistics referenced on this slide are believed to be the most up-to-date available as of April, 2013. NOT FOR CONSUMER USE 9

10. Life Insurance Reposition Legacy Assets IRA Why Asset Protection+ Net Death Benefit Income tax on withdrawal? Balance of IRA at death Children or Charity Premium Rider for Chronic and Terminal Illness Needs* Withdrawal *Receiving benefits under this rider will reduce the death benefit and may result in beneficiaries receiving no death benefit. Client NOT FOR CONSUMER USE 10

11. THE STRATEGY Why Life Insurance Why Asset Protection+ When properly structured, Life Insurance may provide: Death benefit protection Income tax-free payment Predictability Accumulation & leverage Chronic or terminal illness protection NOT FOR CONSUMER USE 11

12. 1 Available for an additional cost for issue ages 20-80, underwriting classes up to Table D and face amounts up to $5,000,000. Availability may vary by state. Additional underwriting requirements apply. 2 Income taxes may apply if the policy owner is simultaneously receiving benefits from multiple accelerated death benefit riders for chronic illness and/or long-term care riders/policies and the total benefits received exceed both the IRS per diem limit and his or her qualified LTC expenses incurred. Whether rider proceeds are taxable as income depends on a number of factors, including whether qualified expenses are incurred or reimbursed and if additional benefits are being received under similar contracts. Qualified expenses means costs incurred for the necessary diagnostic, preventive, therapeutic, curing, treating, mitigating and rehabilitative services, and maintenance or personal care services needed by a chronically ill individual. 3 If the entire death benefit is accelerated, nothing will be paid to policy beneficiaries. BenefitAccess¹ for Chronic or Terminal Illness  Accelerates up to 100% of the death benefit  Max monthly benefit 2, lesser of: 2% of death benefit IRS Per Diem Limit (2015: $330/day) IRS Per Diem Limit at issue compounded at 4% annually  Reduces death benefit dollar for dollar and policy value proportionately 3 Why Asset Protection+ NOT FOR CONSUMER USE 12

13. BenefitAccess For Chronic Illness No receipts (indemnity benefit) No waiting period No exclusions for family caregivers All charges waived once benefits begin* All charges permanently waived after 25 months of benefits *If rider benefits stop within 25 months, additional premiums may be required to keep the policy in force. NOT FOR CONSUMER USE 13

14. BenefitAccess For Terminal Illness Upon being certified as terminally ill with a life expectancy of 6 months or less:  Accelerates the death benefit in a lump sum,  Or a portion in a lump sum (at least $25,000 must remain)  If a portion is accelerated the rest could later be accelerated in full  Benefits reduced by discount factor  No policy charge for this portion (a fee applies each time it is used) Benefits for chronic illness and terminal illness can not be paid simultaneously. Terminal illness benefits could be paid subsequent to chronic illness benefits but once terminal benefits are paid, chronic illness benefits are no longer available. NOT FOR CONSUMER USE 14

15. Why Asset Protection+ Retired Two sons, ages 40 and 42 Assets: $300,000 home, $1,000,000 of investable assets, and $500,000 IRA Has income from a defined benefit plan and sufficient income from other assets to meet current and future income needs Will take required minimum distributions (RMD) IRA earmarked as legacy money Would like to leave more to two sons Concerned about the financial impact of unexpected costs associated with a chronic or terminal illness Hypothetical Case Study Judy Hill (age 68) NOT FOR CONSUMER USE 15

16. Note: In the event the death benefit is accessed to help with a chronic illness, the remaining value will decrease leaving less or none to the beneficiaries according to the terms of The Prudential BenefitAccess Rider. Why Asset Protection+ $500,000 IRA Net RMD reinvested Taxable Assets? Current Situation Asset Protection+ Hypothetical and for illustrative purposes only. $500,000 IRA Net distribution redirected as annual premium Life Insurance On Judy $957,343 Death Benefit WITHOUT Benefit Access $785,687 Death Benefit WITH Benefit Access Assumptions: -5% growth on IRA assets - Female age 68, preferred non tobacco, PruLife ® Universal Life Protector, $20,000 annual premium, guaranteed to age 105. NOT FOR CONSUMER USE 16

17. Internal Rate of Return (IRR) on Judy’s Policy Assumes 30% income tax rate. Longevity may result in a negative internal rate of return. Life Expectancy Internal Rate of Return - IRR Not for Consumer Use. NOT FOR CONSUMER USE 17

18. *Requires certification by a licensed health care practitioner as being chronically ill. Terms associated with the rider must be satisfied. The IRS per diem limitation may be adjusted for inflation by the IRS. Prudential caps the maximum annual increase at 4%. In this example, the per diem limitation is being inflated at a hypothetical annual rate of 0%. The Maximum Monthly Benefit at any given point in time may be less than what is illustrated above depending on actual IRS adjustments to the per diem limitation. Why Asset Protection+ Assuming chronic illness and BenefitAccess benefits begin at age 82 under Judy’s Policy AgePremium Max Annual BenefitAccess Benefit Available* Max Annual BenefitAccess Benefit Taken Net Death Benefit BenefitAccess Lifetime Benefit Amount 68$20,000$118,800$0$785,687$721,561 72$20,000$118,800$0$785,687$721,561 75$20,000$118,800$0$785,687$721,561 78$20,000$118,800$0$785,687$721,561 81$20,000$118,800$0$785,687$721,561 82$0$118,800 $666,887 83$0$118,800 $548,087 84$0$118,800 $429,287 85$0$118,800 $310,487 86$0$118,800 $191,687 87$0$118,800 $72,887 88$0$72,887 $0 NOT FOR CONSUMER USE 18

19. Comparison Of Net After-Tax Proceeds At Death, Without BenefitAccess Without Asset Protection + With Asset Protection + IRA Value at age 86…$ 519,568 100% of RMD’s reinvested...$ 457,223 Income Tax on IRA (28%)…$ (145,479) NET TO HEIRS…$ 831,312 IRA Value at age 86…$ 347,305 No RMD’s reinvested...$ 0 Death Benefit$ 957,343 Income Tax on IRA (28%)…$ (97,245) NET TO HEIRS…$ 1,207,403 A difference of $376,091 NOT FOR CONSUMER USE 19

20. Without Asset Protection + With Asset Protection + IRA Value at age 86…$ 519,568 100% of RMD’s reinvested...$ 457,223 Income Tax on IRA (28%)…$ (145,479) NET TO HEIRS…$ 831,312 IRA Value at age 86…$ 347,305 100% of RMD’s reinvested...$ 0 Death Benefit$ 785,687 Income Tax on IRA (28%)…$ (97,245) NET TO HEIRS…$ 1,035,747 A difference of $204,435 NOT FOR CONSUMER USE 20 Comparison Of Net After-Tax Proceeds At Death, With BenefitAccess

21. Children Survivorship Life Insurance Reposition Legacy Assets + Stretch to Grandchildren IRA Why Asset Protection+ Clients Net Death Benefit Income tax on withdrawal? Balance of IRA at death via “Stretch” strategy PremiumWithdrawal Grand- children NOT FOR CONSUMER USE 21

22. Why Asset Protection+ Retired 4 years ago and have a modest lifestyle One daughter, one grandchild (Ginny, age 10) Assets include a $400,000 home, $900,000 in other assets and a $500,000 IRA Has income from a defined benefit pension plan and sufficient income from other assets to meet current and future income needs Taking required minimum distributions (RMDs) IRA and RMDs are earmarked as legacy money Would like to leave more to daughter and Ginny Hypothetical Case Study Don (age 72) and Kathy (age 72) Campbell NOT FOR CONSUMER USE 22

23. Why Asset Protection+ Let’s assume the following: Don lives to age 85, leaves IRA to Kathy Kathy lives to age 92, leaves IRA to Ginny Don and Kathy fund premiums with after- tax IRA withdrawals Daughter is the life insurance beneficiary $500,000 IRA $13,672 Some Net RMD redirected as annual premium Survivorship Life Insurance $707,110 Death Benefit Assumptions: -7% growth on IRA assets -Don & Kathy, both age 72, preferred non tobacco, PruLife ® SUL Protector, $13,672 annual premium, guaranteed to age 105. Hypothetical and for illustrative purposes only. Asset Protection+ NOT FOR CONSUMER USE 23

24. Ginny receives RMD income of $6,136,319 from age 31-83 before income tax Inherited IRA Value $587,049 RMD using Single Life Table Receives first distribution of $11,203 at age 31 Ginny Why Asset Protection+ Don’s total RMD income from age 72-85 is $426,729 before income tax IRA Value $500,000 RMD using Uniform Table Kathy elects an IRA rollover at Don’s death Don Kathy’s total RMD income from age 86-92 is $369,490 before income tax Inherited IRA Value $646,801 RMD using Uniform Lifetime Table At Kathy’s death, Ginny elects distributions over life expectancy Kathy Daughter receives life insurance death benefit of $707,110 upon Kathy’s death Barbara Death benefit generally received income tax-free 7.59% IRR at Kathy’s age 92 11.50% Tax-Equivalent IRR* *Assumes a 30% tax rate NOT FOR CONSUMER USE 24

25. Why Asset Protection+ Total value to Barbara and Ginny is $6,829,985* *Equals sum of the life insurance death benefit to the child and the total lifetime IRA distributions to the grandchild. NOT FOR CONSUMER USE 25

26. Getting Started Talking Points Are you ever going to spend all this money you have in your IRA? What are you planning to do with it? “We’re going to leave it to the kids and grandkids.” You sound like you really love those kids. If you could find a way to leave them more you probably would, wouldn’t you? Let me share an idea with you… NOT FOR CONSUMER USE 26

27. Next Steps Individual meeting Identify prospects Build and present case Clients Who May Benefit Age 59 ½ + and family oriented Minimum net worth of $1,000,000 and sufficient liquid assets to support this strategy Hold an IRA not needed for support in retirement Have sufficient retirement income from other sources, besides the IRA Desire to provide for and consider the IRA as a ”leave on” asset for children, grandchildren and/or charity NOT FOR CONSUMER USE 27

28. Prospects are in your existing book – Meet the client profile – Who has or will complete a sound financial plan Meet the needs of your clients Easily preserve and grow your business Support and Resources What’s In It For You? NOT FOR CONSUMER USE 28

29. Summary Legacy Threats Taxes and chronic illness can erode your clients’ legacy Why Asset Protection+ Repositioning tax-deferred legacy assets using life insurance can help to enhance wealth for heirs Getting Started Implementing the strategy using simple talking points and our resources NOT FOR CONSUMER USE 29

30. Important Considerations Before implementing this strategy Any investment purchased during retirement involves the planning and use of income or other assets. Clients should be certain to have sufficient liquid assets other than the asset or income they may be repositioning to support their current and future income and expenses before considering the purchase of a life insurance policy. Equity in the home should not be considered a liquid asset. Clients should consider developing a comprehensive financial plan to take into account current and future income and expenses in conjunction with implementing the strategy discussed here. We recommend that clients consult their tax and legal advisors to discuss their situation before implementing the strategy discussed here. About this concept This concept is only intended to be used for assets that will not be needed for living expenses for the expected lifetime of the insured. It is the client’s responsibility to estimate these needs and expenses and it is recommended that they consider developing a comprehensive financial plan in conjunction with implementing the strategy being considered. The accuracy of determining future needs and expenses is more critical for clients at older ages who have less opportunity to replace assets used for the strategy. If your client’s financial or legacy planning situation changes If clients need to use the assets or income being repositioned for current or future income needs and they can no longer make premium payments, the life insurance death benefit may terminate and the results illustrated may not be achieved. If the asset or income being repositioned becomes fully exhausted, premiums may have to be paid using other assets or income to keep the life insurance policy in force. 30

31. Important Considerations When this strategy may not be in your client’s best interest Depending on the client’s life span, it is possible that his or her beneficiary may receive more by just inheriting the assets being repositioned, rather than by receiving the death benefit of the life insurance policy that was purchased. Tax and other financial implications There may be tax and other financial implications as a result of liquidating assets within an investment portfolio. If contemplating such a strategy, it is important for clients to understand that life insurance is a long-term strategy to meeting particular needs. The sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund the purchase of a life insurance product may have tax consequences, early withdrawal penalties, and/or other costs or penalties as a result of the sale or liquidation. About life insurance The death benefit protection offered by a life insurance policy can be a key component of a sound financial plan. It is important for clients to fully understand the terms and conditions of any financial product before purchasing it. Other notes Clients should consider that life insurance policies contain fees and expenses, including cost of insurance, administrative fees, premium loads, surrender charges, and other charges or fees that will impact policy values. If premiums and/or performance are insufficient over time, the policy could lapse, which would require additional out-of-pocket premiums to keep it in force. 31

32. Important Information The Benefits Access Rider is available for an extra premium. Additional underwriting requirements and limits may also apply. Obtaining benefits under the terms of the rider will reduce and may eliminate the net death benefit. Benefits paid under the BenefitAccess Rider are intended to be treated for federal tax purposes as accelerated life insurance death benefits under IRC §101(g)(1)(b). Tax laws related to the receipt of accelerated death benefits are complex and may be taxable in certain circumstances. Receipt of benefits may affect eligibility for public assistance programs such as Medicaid. Accelerated benefits paid under the terms of the Terminal Illness portion of the rider are subject to a $150 processing fee ($100 in Florida). Clients should consult your tax and legal advisors prior to initiating any claim. A licensed health care practitioner must certify the chronic or terminal illness to qualify for benefits. Chronic illness claims will require recertification by a licensed heath care practitioner. Other terms and conditions may apply before benefits are paid. This rider is not Long Term Care insurance (LTC) and it is not intended to replace LTC. The rider may not cover all of the costs associated with chronic illness. The rider must follow state accelerated death benefit laws, is generally not subject to health insurance requirements, and may not be available in all states. This rider is available on PruLife Universal Protector that is issued by Pruco Life Insurance Company except in New York where, if available, it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ. Each is solely responsible for its own financial condition and contractual obligation. The policy form number for PruLife Universal Protector is ULNLG-2013. PruLife ® Universal Protector & PruLife® SUL Protector are issued by Pruco Life Insurance Company, except in New York where, it is issued by Pruco Life Insurance Company of New Jersey. Both are Prudential Financial companies located in Newark, NJ NOT FOR CONSUMER USE 32