1. Securing Your Future Since 1919 www.schwartzbrothers.com Howard Sharfman President 500 West Madison Street, Suite 2700 Chicago, IL 60661 O: 312.683.7152 F: 312.759.4452 C: 312.927.6343 hsharfman@schwartzbrothers.com April 17,2013 FOR AGENT USE ONLY

2. Case study Case study one – managing a WL portfolio and IUL Case study two – insurance as an asset class Case study three – insurance protecting a concentrated position

3. Case Study One

4. Client One Client 56M - UHNW – PR/NS Capacity issues with Placement Managing large WL portfolio for 10+ years Concerned with Interest Dividend rate declines Wants to maintain high CV Interest in and has had good experience with Structured Notes Long Term Player

6. Client BEFORE AFTER moving basis to 3 IUL's at 6.25% Cash Value Current NLV Death Benefit NLV Proposed CV NLV /New Coverage Index @ 6.25% Proposed DB NLV/New Coverage Index @ 6.25% Today $ 19,416,000 $ 73,700,000 $ 18,000,000 $ 88,000,000 Year 15 $ 41,029,000 $ 74,250,000 $ 40,125,000 $ 88,000,000 Year 20 $ 49,773,000 $ 76,770,000 $ 48,500,000 $ 89,150,000 Age 81 $ 59,634,000 $ 81,300,000 $ 57,200,000 $ 92,875,000 Age 91 $ 78,154,000 $ 91,400,000 $ 76,273,000 $ 99,105,000 Reasons to change coverage Diversify carriers and crediting strategySimilar illustrated cash value Significant increase in Death benefit Concern over interest rate declines Internal document - please review company provided illustrations showing guarantees and policy charges. Numbers rounded

7. Case Study Two

8. Client Two Large Private equity fund manager Age 55 Has never purchased life insurance $1B+ net Worth Gifted $5mm to IDGT Loaned $45mm to IDGT Trust purchased carried interest units in fund Trust purchased $50mm of GUL/UL – asset allocation of $10mm of premium

9. WHY? Leverage Non correlated asset Predictable IRR at age 85 = 6.14% @ 90= 5.00% Arbitrage between DB IRR and AFR Asset allocation to tax free, estate tax free product Exit through liquidity of carried interest Next Steps Similar transaction on life of wife

10. Case Study Three

11. Client Three - Concentrated stock Client 40’s with new found wealth from IPO IPO at $15 moved to $40/share in 3 weeks Reallocate shares to Life insurance as a stabilizing factor in portfolio Selling $5mm of shares provides $4mm after tax Allocating $4mm to SUL provides $65mm of Death Benefit (16.2 x Premium) Share price would have to be $389/ share to equal life insurance value

12. Questions? Thank you! Howard Sharfman hsharfman@schwartzbrothers.com