1. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use 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. TC86076(0815)P This information is not intended as tax or legal advice. For advice concerning your own situation, please consult with our appropriate professional advisor. YOU ARE CONSIDERING A BUY SELL YOU HAVE A BUY SELL DIRECT TO CALCULATOR (Select one)

2. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. WHY WOULD YOU WANT A BUY SELL? TWOTHREE CERTAINTIES IN LIFE DEATHTAXESBUSINESS SUCCESSION 2

3. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. A BUSINESS SUCCESSION EVENT WILL HAPPEN YOUR BUSINESS TIMELINE DISABILITY?RETIREMENT?DEATH? TERMINATION?DIVORCE?BANKRUPTCY? 3

4. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. WITHOUT A BUY SELL INSTABILITYINSECURITY UNCERTAINTY More info 4

5. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. WITHOUT A BUY SELL INSTABILITY Impact on business Impact with lenders Business cash flow Family interference INSECURITY Does this keep you up at night? UNCERTAINTY Family income Family benefits Family receiving fair value for the business 5

6. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. UNCERTAINTY CERTAINTY INSTABILITYINSECURITY WITH A BUY SELL SECURITYSTABILITY More info 6

7. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. WITH A BUY SELL SECURITY Does this keep you up at night? STABILITY Impact on business Impact with lenders Business cash flow Family interference CERTAINTY Family income Family benefits Family receiving fair value for the business 7

8. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. COMMON TYPES OF BUY SELL ENTITY PURCHASE OWNER BUSINESS CROSS PURCHASE OWNER HYBRID BUSINESS OWNER OPTION 1 OPTION 2 8

9. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. DOES YOUR BUY SELL GIVE YOU A FALSE SENSE OF SECURITY? HOW ARE YOU FUNDING YOUR BUY OUT? 9

10. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. YOUR FUNDING OPTIONS SURPLUS SAVINGS INSTALLMENTS 3 RD PARTY LOAN LIFE INSURANCE 10

11. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. THE MOST COMMON FUNDING CHOICES INSTALLMENTS LIFE INSURANCE 11

12. COST AND CASH FLOW OF AN INSTALLMENT The Installment Note 1 Buy Out Amount: Installment Term: Installment Interest Rate: 0 Year (1-10 years) % % Annual Payment 2345678910 YearPrincipal Remaining Annual Payment Include your business' profit margin to calculate the gross sales required to support the annual payment. Business Gross Income: (not used in calculations) 12

13. COST AND CASH FLOW OF LIFE INSURANCE Insurance Death Benefit: (not used in calculations) Insurance Premium: Business Gross Income: (not used in calculations) 1 Year Life Insurance Premium 2345678910 0 Insurance Premium on All Lives through Year 10 YearAnnual Premium Cumulative Premium % 13

14. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. LIFE INSURANCE 1 0 Year Annual Payment 2345678910 Installment arrangements and life insurance may work together, but they solve the funding problem in different ways. May require significant cash flow to cover the new debt. 0 Annual Premium May be a more cost efficient tool. Predictable outlays and cash flow may be more affordable to the purchaser. 1 Year 2345678910 INSTALLMENTS 14

15. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. THE ROAD TO PAYMENTS – THE CASH FLOW REQUIRED – SAMPLE OF ALL INSUREDS This chart shows payments through the first 10 years of the policy life on all of the insured owners. It is designed to help give you an understanding of the gross sales that may be needed to have the funds to pay the premium. Life insurance premiums will be due through the entire term of the policy according to the terms of the life insurance policy. This chart is simply designed to demonstrate payment cash flows. In addition, there may be cash values in the policy illustration for a full understanding of the life insurance policy premiums, death benefit and cash values. This chart shows a hypothetical cash flow – demonstrating the potential payments, gross and net sales that might be required in the event an installment buy out is triggered. These figures are hypothetical and will change depending upon the business’ gross margin, actual interest rate and principal due. These rates are subject to change without notice. New insurance is subject to underwriting. 15 THE INSTALLMENT NOTE Year Principal Remaining Annual Payment LIFE INSURANCE PREMIUM ON ALL LIVES THROUGH YEAR 10 Year Annual Premium Cumulative Premium Cash Flow Gross Sales

16. National Life Insurance Company ® | Life Insurance Company of the Southwest TM For Agent Use Only. Not for use with the Public. WITH THE AGREEMENT AND FUNDING IN PLACE… YOU, YOUR FAMILY, YOUR BUSINESS ARE MORE SECURE.