1. SecurePlus Marquee 8 & Marquee 8 GLIR
Welcome to this overview of LSW’s SecurePlus Marquee 8 and Marquee 8 Guaranteed Lifetime Income Rider.

2. The Challenges of Retirement Income
Economic Recovery is slow
Market has recovered losses and is climbing, but Boomers on the cusp of retirement do not have the time horizon to make up losses from 2008/2009
44% of Boomer and GenX households could be at risk of running short of retirement money*.
On the average Americans will need an additional $48,000 at retirement age 65 to ensure they do not run out of money
Today people are facing significant challenges in planning for their income in retirement. The economy is steadily making a recovery and major stock and investment indexes are climbing. However, people who are on the cusp of retirement do not have the time or the faith in the market, to make up their losses from the market plunge of The Employee Benefit Retirement Institute estimates that Americans face a 4.6 trillion dollar retirement deficit and that on the average Americans will need an additional 48,000 dollars in retirement saving at age 65 to ensure they do not run out of money in retirement.
*Employee Benefit Retirement Institute—An Expanded Perspective on Retirement Readiness. November 2012, EBRI Notes, Vol. 33, No. 11

3. The Challenges of Retirement Income
Low Interest rates are here to stay
Clients looking for safety and security face very low rates of return.
Traditional income solutions are undesirable
Annuitization requires relinquish of control
4% withdrawal philosophy is not guaranteed
The US Federal Reserve continues to keep interest rates very low, and has stated these low rates will persist until People who are seeking safety for what they have saved are finding that traditional savings vehicles like CDs are offering returns of less than 1%.
Lastly people are realizing that the traditional income solutions are undesirable. Annuitization can pay them for the rest of their life, but they have to forfeit control of their money and the 4% withdrawal philosophy does not give them the guarantees they want.

4. Income I Cannot Outlive!
I Want it ALL!
Protection from market loss
A bonus to make up for lost time
Most of All
Income I Cannot Outlive!
Policyowners are wanting it all. They want protection from market loss, they want a bonus to make up for lost time, but most of all they want income they cannot outlive.

5. SecurePlus Marquee 8 Delivers!
8% Bonus Accumulation Value – vests 1/5th per year in years 11-15
BAV included in the death benefit day one
Guaranteed never to lose a penny due to a downturn in the stock market**
Guaranteed Lifetime Income Rider*
The SecurePlus Marquee 8 GLIR – includes 8% BAV Beginning Day One
The SecurePlus Marquee 8 Delivers. It has a 8 percent bonus accumulation value that vests in years but is included in the death benefit day one. Marquee 8 is guaranteed never to lose a penny due to a downturn in the stock market, assuming no withdrawal in excess of the penalty free amount. Also the Marquee 8 features a guaranteed lifetime income rider that includes the 8 percent BAV in the benefit calculation base day one.
*Guarantees are based on the claims paying ability of the issuing Company. GLIR currently required on all sales **Assumes no withdrawals that would be subject to MVA

6. SecurePlus Marquee 8 Delivers!
Extra Features for Big Picture Benefits
Special Enhanced Lifetime Income Option, Nursing Care Rider and Terminal Illness Rider, all at no additional cost.
Enhanced Death Benefit options
Great for Clients, Great for YOU
Very competitive commissions
SecurePlus Marquee 8 delivers more than just lifetime income, extra features provide big picture benefits for the changing needs of a clients life while in retirement. Added features like the Special Enhanced Life Income option, Nursing Care Rider, and Terminal Illness rider, included at no additional cost. This policy is a great solution for clients and offers very competitive commissions for YOU.

7. 8% Bonus Accumulation Value
Now lets look at how the 8 percent bonus accumulation value works.

8. Bonus Accumulation Value (BAV)
Equals 8% of accumulation value in years 1-10
Transfers automatically to the accumulation value on the policy anniversaries
Withdrawals from the accumulation value proportionally reduce the BAV
If the policy is surrendered prior to the 15th policy anniversary, any portion of the BAV not yet transferred to the accumulation will be forfeited.
Paid premium, credited interest and BAV are fully liquid after the 15th policy anniversary.
BAV included in the Benefit Calculation Base
Policy Anniversary 11 12 13 14 15
Percent Transferred
20%
25%
33.33%
50%
100%
The bonus accumulation value equals 8 percent of the accumulation value in years one through 10. It is transferred to the accumulation value at the end of years 11 through 15 following the schedule shown. Please remember that withdrawals from the accumulation value will proportionally reduce the BAV and if the policy is surrendered before the end of the 15th policy year any portion of the BAV that has not been transferred will be forfeited. All the premium paid, credited interest and the BAV are fully liquid after the 15th policy anniversary. The BAV is included in the benefit calculation base day one.

9. SecurePlus Marquee 8 Crediting Options
Declared Rate
S & P 500 Index Pt-to-Pt Option 1: 100% Index Rate & Cap
S & P 500 Index Pt-to-Pt Option 2: 140% Index Rate & Cap
S & P 500 Index Pt-Daily Average
Russell 2000 Index Pt-to-Pt Option 1: 100% Indexed Rate & Cap
Russell 2000 Index Pt-to-Pt Option 2: 140% Index Rate & Cap
The SecurePlus Marquee 8 offers six unique crediting methods. These include annual point to point crediting options that feature a 140 percent participation rate option. Current rates are available on the website.

10. SecurePlus Marquee 8 Highlights
Plan Types
Qualified or Non-qualified except 412(i)
Bonus Accumulation Value
8% of the Accumulation Value vesting in years
Issue Ages
0-80 (Actual Age)
Minimum Premium
$10,000
Maximum Premium
$ 500,000 (0-75), $ 250,000 (76-80)
Free Withdrawals
10% of the Accumulation Value each year after the first Policy Year
Withdrawal Charge %
10, 9, 8, 7, 6, 5, 4, 3, 2, 1, 0 (Reduced for age 59+ in some states)
Riders (where approved)
Nursing Care and Terminal Illness at no additional cost
Income Riders
Marquee 8 GLIR at an additional cost
(required on all sales for issue age 40+)
Special Enhanced Life Income (SELI)- in approved states
Available after 5th Policy Year if Annuitant is at least 55 and cannot perform 2 of 6 ADLs permanently – annuitization benefit
Loans
Yes 403(b) and 457(b), up to 50% of cash value if plan permits
Guaranteed Minimum
87.5% of the premium paid growing at a rate between 1-3% based on formula on file at state department of insurance.
Policy Form Number
8965 (0411) with rider forms 8966(0411) and 8967 (0411)
The SecurePlus Marquee 8 can be used for qualified and non-qualified money. It has a minimum premium of $10,000 dollars and max premium of 500,000 dollars up to age 75 and 250,000 dollars age There is a 10 percent penalty free withdrawal available after the first policy year and it has a ten year withdrawal charge schedule. The guaranteed minimum is 87 and a half percent of the premiums paid growing at a rate between one and three percent based on a formula on file at the state department of insurance.

11. Marquee SPDA Series – Market Value Adjustment (MVA)
Benefit of the MVA on SecurePlus Marquee
Potential for Higher rates than without an MVA
Lowers the reserve/capital requirements
Limits the companies exposure to disintermediation risk
Stabilizes our product offerings – more competitive
Only applicable during the first 10 years
Only applies to withdrawals over the free amount
Not applicable on death
Can’t invade the minimum contractual guaranteed values (Policy Value Account)
Can be positive or negative
SecurePlus Marquee 8 does have a market value adjustment. Since it has a MVA National Life Group through its member company Life Insurance company of the Southwest, is able to offer rates that are higher than if the MVA was not on the policy, this is because it reduces the capital and reserve requirements, limits the exposure to disintermediation risk, and stabilizes the product offering. The MVA only applies during the withdrawal charge period and applies only to money withdrawn in excess of the penalty free amount. The MVA is not applicable at death and cannot invade the policy value account. It is also important to remember that while it can be negative, it can also be a positive amount.

12. How the MVA Works
Insurance companies buy fixed income investments (mainly bonds) to support their fixed annuity liabilities.
When an annuity is surrendered, the company incurs a gain or a loss on the underlying asset.
Scenario 1: Decreasing Rates
10 Year Treasury at issue 4%
10 Year Treasury at surrender 2%
Results in a Positive MVA
Scenario 2: Increasing Rates
10 Year Treasury at issue 4%
10 Year Treasury at surrender 6%
Results in a Negative MVA
You may be asking, how does a MVA work? When a policyowner buys and annuity the company buys fixed income investments, mostly bonds, to support the annuity liability. When the policyowner surrenders their policy the company has to sell those assets, the company can incur a gain or loss when the sale occurs. The MVA percentage is calculated with this formula to determine the policyowners share. While this looks complex there is an easier way to explain it. Looking at scenario 1 the 10 year treasury at issue was 4 percent and at surrender it was at 2 percent. In this case the MVA will be positive and will increase in the cash value. In scenario 2 the 10 year treasury at issue is still 4 percent but this time at surrender the treasury is at 6 percent. This results in a negative MVA and the will decrease the cash value.

13. What's to Like About: The SecurePlus Marquee 8
10 Year Surrender Charge Term
Lower Surrender Charges = available nearly everywhere & BD friendly
8% Bonus Accumulation Value
Immediately Vested at Death
Immediately credited to the Marquee 8 GLIR Benefit Calculation Base
Vested Years for Cash Surrender
Strong Interest Rates (Afforded by the MVA)
LSW’s Excellent Reputation Renewal Rates
Strong Ratings
The Marquee 8 GLIR (Rider Form 8969(0411) and 8970(0411))
Marquee 8 is Policy Form 8965(0411) with rider forms 8966(0411) and 8967(0411)
So, what is to like about SecurePlus Marquee 8? It has a 10 year surrender charge schedule that begins at 10 percent making it broker dealer friendly. A 8 percent bonus accumulation value that is immediately vested at death, immediately credited to the Marquee 8 GLIR benefit calculation base, and vests in year 11 to 15 for cash surrender. Strong rates backed by LSW’s reputation of maintaining renewal rates. Finally, the SecurePlue Marquee 8 Guaranteed Lifetime Income Rider provides the client with a source of guaranteed income that cannot be outlived!

14. Income for LIFE! SecurePlus Marquee 8 Guaranteed Lifetime Income Rider
Now lets look at the new Marquee 8 Guaranteed Lifetime Income Rider

15. SecurePlus Marquee 8 GLIR
Features and Benefits
Same Great Roll-up: 6% Compounding
Guaranteed Years 1-8 (or to age 85, whichever is earlier)
Roll-up Automatically Continues in Years 9-20: 3% Guarantee
Current 6% Roll-up May Continue
Guaranteed Withdrawal Percentage beginning at 4% at age 60 increasing 10 bps each year income is differed up to age 90.
Income can begin after the first policy year
Same Start/Stop Flexibility
Same Enhanced (ADL) Benefit in approved states for single life level income
The Marquee 8 GLIR is built on the same quality chassis used on our standard GLIR. It has the same great 6 percent roll up rate for guaranteed for the first 8 policy years renewing thereafter until the 20th policy anniversary or to age 85, whichever is earlier. The guaranteed withdrawal percentage begins at 4 percent at age 60 and increases 10 basis points each year income is deferred. Income can be stopped then restarted, and in approved states you still have the enhanced benefit.

16. Ultimate Protection: The Marquee 8 GLIR
Added Features for Increased Benefits
8% BAV is IMMEDIATELY reflected in the Benefit Calculation Base
Better Income than the standard GLIR
3% annual increasing Guaranteed Withdrawal Payment option
Enhanced death benefit options before election of income
Roll-up Ceases at 20 years or age 85 if earlier
Charge Increases to 90 bps of AV
Here is what is unique on the Marquee 8 GLIR that is exclusively used on the SecurePlus Marquee 8. Most importantly the 8 percent BAV is reflected in the benefit calculation base day one giving policyowners better income than the standard GLIR. There is the inflation fighter option that increases the guaranteed withdrawal payments by 3 percent annually. Built in enhanced death benefit options available until income under the rider begins. The roll up stops at the earlier of 20 policy years or age 85, and the charge is now 90 basis points.

17. Example - Accumulation Phase
55-year-old purchases $100,000 SecurePlus Marquee 8 with the Marquee 8 GLIR
SecurePlus Marquee 8
Accumulation Value
Day One $100,000
3%* Average Interest Credited Annually Net Of Rider Charges
(*This is a hypothetical rate, and it is not guaranteed. The rate will vary.)
AV End of Year $134,392
Guaranteed Lifetime Income Rider
Benefit Calculation Base
Day One ,000
6% Compounding
Roll Up Rate
End of Year ,411
To understand the mechanics of the rider let’s look at an example of how SecurePlus Marquee 8 and its Guaranteed Lifetime Income Rider work.
If a 55-year old contributes $100,000 to a SecurePlus Marquee 8 with the Marquee 8 GLIR. On the left you will see how the annuities accumulation value might grow. This is a hypothetical example. Day one, the Accumulation Value is $100,000. Over a 10-year period, the annuity’s accumulation value increases at a 3 percent interest rate (hypothetical rate…the rate could be higher or lower, depending on the index’s performance and the current caps and participation rate), net of the rider charges. The accumulation value after 10 years is $134,392.
Now, let’s look at the right side, the Marquee GLIR. Day one…the Benefit Calculation Base is 108,000, reflecting the 100,000 single premium and 8 percent bonus accumulation value. This amount is not an account value. It is used solely to determine the guaranteed withdrawal payment. The example assumes a roll-up rate of 6% for 10 years. Current roll-up rate is 6% and is guaranteed for 8 years and will be set annually in advance in years After 10 years, the benefit calculation base increases to 193,411.

18. Example - Distribution Phase
Guaranteed Withdrawal Payments are elected at Age 65, Level Income Option
SecurePlus Marquee 8
Accumulation Value (example only)
End of Year $134,392
GWP $ 8,703
AV after Withdrawal $125,689
3.75% interest* $ 4,713
(*Hypothetical rate)
Rider Charge $ 1,173
$129,229
BAV Transfer $ 1,932
AV end of yr 11 $122,458
Guaranteed Lifetime Income Rider
Benefit Calculation Base
End of Year ,411
Lifetime Income Calculation
193,411
X 4.5% (Guaranteed Withdrawal age of 65)
$8,703 Guaranteed Income for Life
The greater of the Accumulation Value or Benefit Calculation Base
Now let’s look at the distribution phase…
The person elects to take guaranteed withdrawal payments at age 65, 10 years later.
On the left, the Accumulation Value is 134,392 and the Benefit Calculation Base on the right is
At the time of election, LSW compares Accumulation Value versus the Benefit Calculation Base. Since the benefit calculation base is higher, LSW uses this amount and multiplies it by the Guaranteed Withdrawal Percentage at the attained age of 65 which is 4.5 percent. The is multiplied by 4.5 percent to get an annual guaranteed withdrawal payment of $8703 for life, even if the accumulation value goes to zero.
Once Guaranteed Withdrawal Payments are elected, the Benefit Calculation Base ceases to exist.
Now, how do the Guaranteed Withdrawal Payments work with the Annuity’s Accumulation Value.

19. 3% Annual Increasing Guaranteed Withdrawal Payment Option
In addition to higher income the Marquee 8 GLIR features and inflation fighting option that can increase the guaranteed withdrawal payment by three percent annually.

20. Increasing Guaranteed Withdrawal Payment Option
Selected when income is elected – not at issue
Increases the Guaranteed Withdrawal Payment by 3% per year
Uses a lower Guaranteed Withdrawal Percentage than the level income option
Age 60 increasing GWP is 3% (vs. 4% level income option)
GWP increases 10 bps per year income is deferred
Guaranteed Withdrawal Payments stop increasing once the accumulation value is depleted
Payments continue at the level preceding the accumulation value depletion until death of the annuitant
The decision to use the increasing option does not have to be made until the policyowner is ready to elect income, not at issue. If they choose this option the guaranteed withdrawal payment will increase by three percent annually until the accumulation value is depleted. At that point the income will remain level until death of the annuitant. In order to provide this option a lower guaranteed withdrawal percentage is used, it begins at 3 percent at age 60 and increases 10 basis points each year income is deferred.

21. The Marquee 8 GLIR Death Benefit Options
The Benefit Calculation Base Is Available at Death!
A consistent objection has been that if the policyowner dies before income is elected no one receives a benefit for the money spent on the rider. That is not the case on Marquee 8 GLIR. Now the beneficiaries have the option to receive the benefit calculation base.

22. SecurePlus Marquee 8 GLIR The Death Benefit
Before now, the Income Calculation Base was available for income only
Now, the Benefit Calculation Base is Available as a Death Benefit
100% of Benefit Calculation Base payable over 5 Years, or
Beneficiary can choose lump-sum death benefit that is the greater of:
Policy Death Benefit
75% of Benefit Calculation Base
Special Death Benefit ceases when lifetime income is elected
No Underwriting
No 5-year wait
When the policyower dies the beneficiary can receive 100 percent of the benefit calculation base by electing the five year payout option. Payments can be made monthly, quarterly or annually. If they prefer a lump sum payout the death benefit will be the greater of the policy death benefit, that is the accumulation value plus the BAV, or 75 percent of the benefit calculation base. There is no underwriting, no 5 year wait, and you get the opportunity to serve future generations. These special death benefit options cease when lifetime income is elected under the rider.

23. Marquee 8 GLIR Death Benefit Guaranteed assumptions Initial Premium $100,000; No Lifetime Withdrawals
Deferral Benefit Calc. 5-Pay Lump-Sum Lump-Sum Years Base Option Option Yield At Death 10 $182,618 $36,523 $136, % 15 $211,705 $42,341 $158, % 20 $245,424 $49,084 $184, %
The special death benefit option can dramatically increase the money a beneficiary will receive. Regardless of age if a policy is purchased with 100,000 dollars if the policyower dies at the end of the fifth policy year the benefit calculation base will be 144,528, that will pay the beneficiary 28,906 dollars per year for five years.
Assumes 6% Roll-up years 1-8
Assumes 3% Roll-up years 9-20

24. Marquee 8 GLIR Death Benefit Current assumptions Initial Premium $100,000; No Lifetime Withdrawals
Deferral Benefit 5-Pay Lump-Sum Lump-Sum Years Base Option Option Yield At Death ,411 $38,682 $145, % ,828 $51,765 $194, % ,370 $69,274 $259, %
Using the same scenario if the roll up remains at 6 percent after year 8 the benefit calculation base will be 258,828 at the end of year 15, that would pay the beneficiary 51,765 dollars per year for five years. The lump sum option would be 194,121 dollars giving a 4.52 percent yield on the money at death.
Now no matter if the policyowner starts income or not someone may receive a benefit from the money spent on the rider.
Assumes 6.0% Roll-up years 1-20

25. SecurePlus Marquee 8 & Marquee 8 GLIR
Feel the Power !
SecurePlus Marquee 8 &
Marquee 8 GLIR
Let’s look at some examples of the power of the SecurePlus Marquee 8 and Marquee 8 GLIR combination.

26. Maximize Money Saved! $12,306 for LIFE
Steve is a 62-year old and plans on retiring in a year.
He saved $250,000 in an IRA
If he earns 3% over the next year, his estimated income would be $10,300 using 4% withdrawals.
He wants something better.
Marquee 8 GLIR will generate a level income at age 63 of:
$12,306 for LIFE
That is an additional income of $2,006 per year!
Many people need to maximize the money they have saved for retirement.
Meet Steve, he is 62 years old and has diligently saved 250,000 dollars in his IRA for retirement. In this low rate environment he hopes to earn 3 percent on his money over the next three years then withdraw 4 percent of his money per year. This would give him a non guaranteed income of 10,300 dollars per year. He wants a better option.
SecurePlus Marquee 8 and Marquee 8 GLIR is the solution. If Steve buys a policy today in one year when he is 63 the Marquee 8 GLIR will generate an income of dollars. That is 2,000 dollars a year more income and it is guaranteed for as long as he lives.

27. Same Income for Less Money!
Susan is a 55-year old and plans on retiring at age 63.
After looking at all her sources of income, she realizes she will need her savings to generate $8,000 a year to reach her income goal.
If she earns 4% over the years, she will have to set a side $146,138 today to withdraw the $8,000 needed using the 4% withdrawal method.
She is looking for a more efficient solution.
Marquee 8 GLIR will generate $8,000 with a contribution of only:
$108,082
That is $38,056 less to get the same income!
PLUS it is Guaranteed for Life!
Other people are looking for the most efficient use of their money.
Meet Susan who is 55 years old and plans on retiring at age 63. After carefully evaluating her known retirement income sources, like social security, she determines that she will have a 8,000 dollar shortfall. Using the 4 percent withdrawal method she need to put 146,138 dollars in a safe savings vehicle earning 4 percent interest. She is looking for a more efficient solution.
SecurePlus Marquee 8 is the solution. The Marquee 8 GLIR will generate 8,000 dollars per year of guaranteed lifetime income with a contribution of only 108,082 dollars. That is 38,056 dollars less to get the same income and it is guaranteed to be there.

28. SecurePlus Marquee 8 Delivers
8% Bonus Accumulation Value
Immediately credited to the Benefit Calculation Base
Included in the death benefit day one
10/10 withdrawal charge schedule
Strong rates with LSW’s reputation for maintaining rates (no 1st yr teasers)
Marquee 8 GLIR
More income than standard GLIR
Compounding roll up rate
3% increasing income option
Benefit Calculation Base is payable as a death benefit
Full amount over 5 years, or
75% of Benefit Calculation Base paid as a lump sum
As you can see the SecurePlus Marquee 8 truly delivers. It delivers a 8 percent bonus accumulation value that is part of the death benefit and benefit calculation base day one. A 10/10 consumer and broker dealer friendly withdrawal charge schedule. Strong rates with LSW’s reputation of maintaining rates, no first year teasers. Lastly it has the Marquee 8 GLIR that gives more income that the standard GLIR, still has a compounding roll up rate, a option for 3 percent annual increases, and the benefit calculation base available as death benefit.

29. Contact the National Life Group Sales Desk at 1-800-906-3310
Questions
Contact the National Life Group Sales Desk at
If you have any questions please call the Annuity Sales Desk at option 1.