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For Agent Use Only – Not To Be Used With The Public National Life Insurance Company ® | Life Insurance Company of the Southwest™ National Life Group ®

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Presentation on theme: "For Agent Use Only – Not To Be Used With The Public National Life Insurance Company ® | Life Insurance Company of the Southwest™ National Life Group ®"— Presentation transcript:

1 For Agent Use Only – Not To Be Used With The Public National Life Insurance Company ® | Life Insurance Company of the Southwest™ National Life Group ® is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest, Addison, TX and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York. Help Protect Your Client’s Family and Diversify Their Portfolio TC65657(1111) Life Insurance: Beyond the Death Benefit

2 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public The Current Situation The economy is unstable People have lost money in their personal and retirement savings The dollar doesn’t stretch as far as it used to People still have the need for protection that life insurance provides, but the same dollar is competing for multiple needs

3 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public So Where is the Money?

4 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Where is the Money There is over $2.6 Trillion in money market accounts There is $6 Trillion in certificates of deposits 1 What does this tell us? People are looking for safety and don’t have lots of choices on where to put their money 1 Source: www.ici.org October 2011.www.ici.org

5 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public How can you help your clients Protect their family and Diversify the Fixed Asset portion of their portfolio

6 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Protection First

7 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Evaluating Human Capital Human Capital is the actuarial Present Value of future wages –It is an individuals ability to earn income and save –It equals the present value of all future wages, including pension and social security It directly affects a persons ability to take on risk regarding their financial capital

8 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Human Capital The younger the individual, the greater their human capital As we age, financial capital replaces human capital 253035404550556065 $50,000 $100,000 $200,000 $300,000 $500,000 $1,000,000 Insurance Need Age Financial Capital Human Capital

9 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Three risks to consider Dying Too Soon Becoming Ill Living Too Long

10 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public The Need to Protect Human Capital 253035404550556065 $50,000 $100,000 $200,000 $300,000 $500,000 $1,000,000 Protection Need Age Financial Capital Human Capital

11 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Why not Term and Invest The Difference? How long does your client need protection?

12 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public The Need to Protect Human Capital and Preserve Financial Capital 253035404550556065 $50,000 $100,000 $200,000 $300,000 $500,000 $1,000,000 Protection Need Age Financial Capital Human Capital Preservation Need

13 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Why not Term and Invest The Difference? How long does your client need protection?

14 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Manage Risk with Whole Life Insurance Death Benefit protects Human Capital and Preserves Financial Capital Accelerated Benefit Riders provide funds in the event of illness 1 Cash Value Accumulation can be accessed to supplement future income needs 2 1 Accelerated Benefit Riders are optional and may not be available in all states. Receipt of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy, may result in a taxable event, and may affect your client’s eligibility for public assistance programs. There is no restriction placed on the use of the benefit received. 2 Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event.

15 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Portfolio Diversification By combining an asset allocation strategy with Whole Life Insurance You are able to protect human capital and manage the risk of Dying Too Soon Plus Cash value accumulation can serve as a Cash or Fixed Asset in a portfolio

16 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Whole Life Complements a Well Designed Long-Term Financial Strategy When properly funded, cash value continues to accumulate during good times and bad, through policy guarantees. 2 Lifetime access to cash value through policy loans and withdrawals, potentially income tax- free. 3 1 Internal Revenue Code 101(a)(1). There are some exceptions to this rule. Please consult a qualified tax professional for advice concerning your individual situation 2 Guarantees are dependent upon the claims-paying ability of the issuing company. 3 Policy loans and withdrawals reduce the policy cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Whole life insurance may not accumulate significant cash value in the early years of the policy. Immediate liquidity at death, income tax-free. 1 Cash value can serve as the long-term Cash or Fixed component of an asset allocation strategy

17 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Three Good Reasons Why Consumers Purchase Whole Life #1 – Guarantees* Guaranteed Death Benefit Guaranteed Level Premium Guaranteed Cash Value No other life insurance product offers the guarantees that Whole Life provides Product guarantees are the most important feature for buyers, regardless of age or income LIMRA Life Buyers Report 2005 *Guarantees are dependent upon the claims paying ability of the insurer.

18 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Three Good Reasons Why Consumers Purchase Whole Life #2 – Buy it and don’t worry about it Whole Life Insurance is the only insurance contract that you can purchase, pay the required premium, and not worry about the coverage No need to track market returns or make reallocations Let the insurance company do the heavy lifting

19 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Three Good Reasons Why Consumers Purchase Whole Life #3 – Diversification Doesn’t add additional risk to a financial portfolio Whole life insurance allows your clients the ability to potentially take on risk with other aspects of their finances while guaranteeing their death benefit

20 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public With Whole Life the client transfers the risk to National Life Group National Life Group is committed to its long-standing conservative investment philosophy that seeks to create value for the enterprise over the long term, while minimizing investment losses in the short term. Total: $17.1 billion investment portfolio as of December 31, 2010 representing consolidated assets of National Life Insurance Company, Life Insurance Company of the Southwest and NLV Financial Corporation.

21 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public NL LifeBuilder

22 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public NL LifeBuilder Year Gtd. Cash Value Projected Cash Value IRR On Projected CV Gtd. DBCurrent DB IRR On Current DB 534,25135,128-11.54%426,510426,85782.62% 1097,586103,744-.66%427,579429,50225.57% 20230,880251,8073.35%432,225456,9957.30% 30292,001403,5653.99%423,276580,5405.63% Male Age 45 PNS $10,000 Annual Premium Paid-up @ 65 $423,276 Death Benefit Human Capital Financial Capital Projected Cash Value and current Death Benefit are derived from dividends, which are not guaranteed, and should not be construed as estimates of dividends to be paid in the future.

23 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Ready to Move Assets? The Premium Deposit Account (PDA) Can Help What Does It Do? –Avoids modified endowment status for large lump-sum amounts moving into LifeBuilder Why Use the PDA? –Short-paying LifeBuilder can be matched to a PDA –Avoids MEC –Convenient for Policyowner, pay once –PDA deposits earn interest How Does It Work? –Lump-sum amounts are held in an interest-paying fixed account outside of the LifeBuilder policy –Premiums are automatically paid from that account Due to regulatory restrictions, the Premium Deposit Account is not available to active members of the military or in the states of Illinois, Indiana, Kansas, Pennsylvania, Tennessee or Texas. The premium payment period is restricted to 10 years in California.

24 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Premium Deposit Account The Premium Deposit Account may only be surrendered upon death or if the life insurance policy associated with the PDA is surrendered. If the associated policy is surrendered, the PDA surrender penalty is the lesser of: 10% of the account value, or the interest earned.

25 National Life Insurance Company ® | Life Insurance Company of the Southwest™ For Agent Use Only – Not To Be Used With The Public Protect Your Client’s Family and Help Diversify Their Portfolio Get your clients out of the Blue And into the Green For more information contact the Life Sales Desk – 1-800-906-3310, Option 2


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