CMG Success ConferenceFocus, Drive, Connect

Eric Lopez, CLU ,ChFC, FLMI

VP, Key Accounts and Multicultural Markets

Daniel Ulloa

Key Account Representative

The Average Consumer Cannot Afford the Individual Policy Approach.

$$$ / Month

LifeLTC

Is there another alternative?

For Agent Use Only. Not for use with the Public.

Benefits may not be mutually exclusive. Using one benefit may reduce or eliminate another.

AcceleratedLiving

Benefits

Cash ValueAccumulation

LIBR

Death Benefit

Protection

=

Permanent Life Insurance

For Agent Use Only. Not for use with the Public.

Permanent Life Insurance Features and Riders Provide

One Solution for Multiple Risks

Benefits may not be mutually exclusive. Using one benefit may reduce or eliminate another.

AcceleratedLiving

Benefits

Death Benefit

Protection

=

Term Life Insurance

For Agent Use Only. Not for use with the Public.

Term Life Insurance Features and Riders Provide One Solution for Multiple Risks

We Don’t Just Talk About ABRs

0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011

Total Number of Claims Paid

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2007 2008 2009 2010 2011

Total Amount of Claims Paid

Our ABR Experience

The above reflects the total combined number of claims, and amounts paid, by National Life Insurance Company and Life Insurance Company of Southwest under the ABR riders: Terminal, Chronic and Critical

Underwriting Program – No Routine Medical

Testing • Face Amount must be $250,000 or less

• Client must be age 65 or younger

• Applies to base policy insured and OIRs

• Faster processing 4 – 7 days

• Standard at best

• No option to be underwritten for Preferred

Rate Class Available • Verified Standard NT• Express Standard NT

• Standard TobaccoAll substandard risk classes are available

This is not a guaranteed issue program. The company reserves the right to require additional requirements as deemed necessary.

For Agent Use Only – Not For Use With The Public

Headwinds

The Power of Indexing

History of Federal Individual IncomeTop Marginal Tax Rates

Source: truthandpolitics.org, referencing IRS Statistics of Income Bulletin Pub 1136

Clients can supplement their retirement with an income stream that they cannot outlive!*

Lifetime Income Benefit Rider™

*Certain conditions must be met to exercise the rider. The Lifetime Income Benefit Rider provides a benefit for the life of the insured if certain conditions are met, including but not limited to the insured’s attained age being between 60 and 85, and that the policy has been inforce for at least 15 years. Insufficient policy values, outstanding policy loans and other considerations may also restrict the rider. Exercising the rider and receiving an income benefit will reduce the policy’s cash and death benefit and may terminate other riders or reduce their benefits.

For Agent Use Only - Not To Be Used With The Public

National Life Insurance Company® | Life Insurance Company of the Southwest™

How It Works

1Assumes Non-MEC Policy

For Agent Use Only - Not To Be Used With The Public

National Life Insurance Company® | Life Insurance Company of the Southwest™

Thank You - American Taxpayer Relief Act of 2012!

TAX rates went up!

So did the interest in tax reduction strategies:Qualified Plan Life & Annuity Section 79 Premium Finance

Section 79 Plans, qualified plans and premium financing are offered and administered independently of the companies of National Life Group, National Life is bound only by the terms of the life insurance contracts issued by the Group insurance companies.

The Companies of National Life Group® and their representatives do not offer tax or legal advice. Please encourage your clients to seek tax or legal advice from their appropriate professional advisor.

Advanced Markets

Advanced Markets

Working with advanced markets is easier than ever!

Catch the momentum & supercharge your 2014 business!

Estimated 2013 Premium$ 4.4 Million Qualified Plan Life $ 7.1 Million Qualified Plan Annuity $10.2 Million Section 79 $ 6.0 Million Premium Finance

= Commissions

Section 79 PlanswithSecurePlus Advantage 79

TAX-ADVANTAGED LIFE

INSURANCE FOR BUSINESS

OWNERS AND EMPLOYEES

This information is not intended as tax or legal advice. Please consult with your attorney and accountant

prior to acting on any of this information.

National Life Group ® is a trade name representing various affiliates that offer a variety of financial services

products.

What Is Section 79

• Code section that allows an ER to offer group life insurance to EE’s

– Section 79 is not just group term insurance

– Regulation says the plan may provide permanent benefits

– With a specially designed permanent policy, the Employee can usually exclude about 35-40% of premium from taxable income

Life Insurance is the only way to fund a Section 79 Plan

For Agent Use Only - Not For Use With The Public

Insurance Options

• Option 1: $50,000 group term death benefit– Premium is deductible to ER– Not taxable as income to EE

• Option 2: Group term death benefit > $50,000– Premium is deductible to ER – EE taxed at Table I (government) rates

• Option 3: Cash value life insurance – Premium is deductible to ER– Premium only partially includible in EE’s income

• About 35-40% of premium excluded from taxable income• Only a specially designed policy will provide full tax benefits

For Agent Use Only – Not For Use With The Public

Benefits for Business Owner

• Death Benefit can be used for

– Family survivor needs

– Estate tax strategies

• Can provide tax benefits

– For Company and owner-employees

• Attract & retain employees

• Policy cash value can provide additional retirement asset accumulation

Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event.

For Agent Use Only – Not For Use With The Public

Benefits for Employee

• ER provided life insurance protection

– Family survivor needs

– Tax benefits

• Policy cash value can provide additional retirement asset accumulation

• Permanent policy completely portable

– EE owns policy, names beneficiary

For Agent Use Only – Not For Use With The Public

SIUL - One Policy vs. Two

Value isn’t always measured in Dollars and Cents

Niche Markets

• Business Owners

– Section 79

– Kai-Zen

– Buy Sell using SIUL

– Profit Sharing Plans

– Captives

– 412(e)(3)

• Individual Planning

– Tax Free Retirement

– Premium Finance

– Estate Planning

– Mortgage Protection

– Death Benefit Protection

For Agent Use Only – Not For Use With The PublicTC#77584(1213)1