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Insure your LoveS A L E S K I T

Posts for Facebook, LinkedIn, Google+ Post with any of the images linked on the next page. You can only get life insurance BEFORE you need it. Make today the day! I can help.

This Valentine’s Day, surprise your loved ones with a secure financial future. I can help - contact me for a free life insurance quote.

40% of people *haven’t* bought life insurance because they don’t know how much they need or what kind to buy. I can help - contact me for a free quote.

Who says life insurance isn’t romantic? It’s the only gift that means you’ll still love them even after you’re gone.

People without life insurance overestimate the cost by 3X! Don’t go without because you think it costs too much. It probably doesn’t - and I can help you find out.

Life insurance is there to support the ones you love if something happens to you...but only HALF of millennials own life insurance! Don’t be part of that statistic.

Shorter Posts that Also Work for Twitter (<140 characters) Post with any of the images linked on the next page. 1 in 3 wish their spouse/partner had life insurance...or more coverage. Got #lifeinsurance this Valentine’s Day?

If people depend on you financially, you NEED #lifeinsurance. #InsureYourLove

Need help figuring out how to buy #lifeinsurance? It’s my job to help! #InsureYourLove

1/3 of people haven’t bought #lifeinsurance b/c they haven’t gotten around to it. No time like the present! #InsureYourLove

40% haven’t bought #lifeinsurance b/c they don’t know how much to get - let me help! #InsureYourLove

Insure Your LoveSocial Media Posts & Sharable Graphics

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Continued on the next page.

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

LIFE INSURANCE Twelve Life Insurance Mistakes to Avoid

When it comes to choosing a life insurance policy, there is the potential to make serious and costly mistakes. Here are twelve mistakes to avoid when you are considering purchasing a policy.

Mistake Number OneLACK OF EDUCATION

Lack of education, whether your financial professional’s or your own, can lead to many mistakes, including the subsequent eleven mistakes below.

Life insurance is not a one-size-fits-all commodity. You need a high degree of comfort with the insurance company, the financial professional, and the products being considered before purchasing anything. Spend the time to do the research first, and you can avoid headaches later.

Mistake Number Two THE “TRIANGLE”—THREE PEOPLE ON A POLICY

The beneficiary of a properly structured life insurance policy will generally receive the death proceeds income1 and gift tax-free. However, policy proceeds are subject to gift taxation when three different parties are designated as the owner, the insured, and the beneficiary of a life insurance policy. This is called the “Triangle,” named for a famous 1946 federal court decision.2 This court decision held that, where a “Triangle” exists at the death of the insured, the owner of the policy (not the insured) will be deemed to have made a taxable gift of the entire death proceeds to the beneficiary. Should the insured person die under those circumstances, the policy proceeds are considered to be a gift from the owner to the beneficiary.

The solution is very simple: either the insured and owner should be the same individual, or the owner and beneficiary should be identical.

Mistake Number ThreeTHE BUSINESS “TRIANGLE”

Similar to the mistake above, but, in this situation, a business is the owner. This form of the “Triangle” frequently occurs with business owners when they name themselves as the insured, use the business to own the policy, and name a spouse, children, or another business owner as the policy beneficiary.

The negative tax consequences of the transaction are changed if the business owns the policy. In this situation, the death proceeds paid to the beneficiaries are subject to income tax instead of gift tax.

Like the previous mistake, the solution lies in properly structuring the policy ownership and beneficiary designation.

© 2017 Prudential Financial, Inc. and its related entities.0197393-00005-00 Ed. 02/2017 Exp. 08/07/2018

Life insurance is one of the most important purchases that you will ever make.

1 Under IRC § 101(a).

2 Triangle v. Commissioner, 156 F.2d 218 (2d Cir. 1946).

TWELVE LIFE INSURANCE MISTAKES TO AVOIDLIFE INSURANCE

Mistake Number Four FAILURE TO NAME A SUCCESSOR OWNER

Think of the assets you own. Chances are you thought of stocks, bonds, and real estate. But what about life insurance? All too often, people fail to think of a life insurance policy as an asset.

If the owner and insured on a life insurance policy are two different people and the owner dies first, the policy ownership has to pass to a successor owner. If the policyowner did not name a successor owner, the policy will be subject to probate. Probate can cause the policy to be subject to creditors’ claims and unnecessary costs. It can also cause ownership of the policy to pass to an unintended owner or to be divided among multiple owners.

The solution is quite simple: if the insured and owner are different individuals, either name at least one successor owner or have an entity such as a trust own the policy.

Mistake Number Five ESTATE AS BENEFICIARY

This occurs when the estate is named or becomes the beneficiary of an insurance policy. The estate may become the beneficiary unintentionally. For example, if only one beneficiary is named but he or she predeceases the insured, then, by default, the estate becomes the beneficiary.

If the insured’s estate is the beneficiary, the policy proceeds may needlessly be subject to probate, creditor claims, and estate or inheritance taxes.

The solution is to name both primary and secondary beneficiaries.

Mistake Number SixPOLICY SUBJECT TO ESTATE TAX

If an individual is the owner of his or her policy, all of the death proceeds are included in his or her estate. For most individuals, this will not be a problem; however, if the individual has a large estate, this may trigger unnecessary estate taxation. Typically, when an individual discovers that ownership of a policy creates an estate tax problem, he or she transfers ownership to another individual or to a trust. That sounds like a quick and easy solution, but it could be Mistake Number Six.

The Internal Revenue Code contains a rule that provides that if an insured owns a policy on his or her life and gives the policy to another person, trust, or entity and then dies within three years of the transfer, the policy proceeds will be included in the estate of the insured and subject to estate taxation.

While there are a number of complex ways to structure a transfer to avoid the three-year estate inclusion, one simple solution is to purchase a separate insurance policy for the three-year period during which the policy would be subject to estate tax.

Mistake Number Seven FAILURE TO MEET NOTICE AND CONSENT REQUIREMENTS ON AN EMPLOYER-OWNED CONTRACT

It’s not unusual for a business to purchase insurance on the life of a key employee or owner. In general, death proceeds on employer-owned contracts issued after August 17, 2006 are subject to income tax. At first glance, you might wonder why any business would purchase life insurance.

Fortunately, where specific employee notice and consent requirements are met and certain exceptions apply, a business can continue to receive death proceeds income tax-free. The notice and consent requirements must be met before policy issue. Failing to meet the notice and consent requirements is the mistake.

If the specific notice and consent requirements are not met before policy issue, the only corrective option appears to be reissuing the contract, subject to full underwriting. Consequently, it is important that action be taken before the policy is issued.

Continued on the next page.

TWELVE LIFE INSURANCE MISTAKES TO AVOIDLIFE INSURANCE

Mistake Number Eight GIFT OF A POLICY SUBJECT TO A LOAN

The gift of a policy with an outstanding loan is a common occurrence. In fact, individuals often borrow from a policy before transferring it in order to reduce its value for gift tax purposes. But, as with any technique, too much of a good thing can lead to an undesired tax result.

The transfer of a policy subject to a loan, even by gift, is treated as if the policyowner sold the policy and received money equal to the debt deemed forgiven. If the amount of loan exceeds basis3 at the time of the transfer, a portion of the death proceeds will be subject to income tax.

On the other hand, if the loan is less than the policyowner’s basis,3 the death proceeds will generally be received income tax-free by the beneficiaries. Consequently, the solution is to make sure the loan amount does not exceed policyowner basis at the time of transfer.

Mistake Number NineEXCHANGING A POLICY SUBJECT TO A LOAN

Very little in life is static. For a number of reasons, there may be a need to exchange an existing life insurance policy for a new one. Congress recognized that changes do occur and addressed the need by permitting the exchange of one policy for another without any income tax implications at the time of the exchange as long as the requirements contained in Section 1035 of the Internal Revenue Code are met.

One of the requirements is that no money or property other than “like-kind” can be received at the time the policy is exchanged. And if it is, income will be recognized to the extent of that other property. Like the prior mistake, when an existing policy has a loan against it, if the new policy does not carry over the old loan, the policyowner is treated as if money is received, and any gain in the contract will be recognized up to the amount of the loan.

One solution is to arrange for the new policy to be subject to the existing policy loan. In circumstances where that cannot be done, the policyowner should use funds independent of the policy to pay off the loan on the old policy before the exchange.

Mistake Number Ten PLEDGING A MODIFIED ENDOWMENT CONTRACT (MEC)

Because life insurance enjoys a number of tax benefits, there are limits on how much premium can be put into a life insurance policy. One of the limits imposed is contained in the Modified Endowment Contract (MEC) rules. Premiums that exceed these limits will cause the policy to be classified as a MEC, causing a loss of some of its income tax benefits.

One of the lost benefits involves the treatment of loans and withdrawals of policy cash surrender values. The general rule is that as long as a life insurance policy is in force, withdrawals that do not exceed the policyowner’s basis2 may be taken from the policy’s cash values income tax-free.

Further, loans of any amount permitted by the insurance carrier can be taken income tax-free. However, if a policy is classified as a MEC, loans and withdrawals are subject to income tax to the extent of gain in the policy. In addition, there may be an additional 10% tax. This result cannot be avoided by pledging the policy as security for a loan.

The solution is to pledge other assets.

3 Generally basis is equal to the amount of premiums paid.

Continued on the next page.

TWELVE LIFE INSURANCE MISTAKES TO AVOIDLIFE INSURANCE

4 When conducting an insurance policy review and presenting options that include replacing an existing insurance contract, it is important to discuss the risks and benefits. Client should carefully consider the risks and benefits before taking action, including their current need for coverage, their current health status and insurability, fees and charges associated with terminating an existing contract, and future liquidity needs.

Life insurance is issued by The Prudential Insurance Company of America and its affiliates. All are Prudential Financial companies located in Newark, NJ, and each is solely responsible for its own financial condition and contractual obligations. Life insurance policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your financial professional can provide you with costs and complete details.

All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. We do not provide tax, accounting, or legal advice. Clients should consult their own independent advisors as to any tax, accounting, or legal statements made herein.

Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities.

© 2017 Prudential Financial, Inc. and its related entities.0197393-00005-00 Ed. 02/2017 Exp. 08/07/2018

Investment and Insurance Products:Not Insured by FDIC, NCUSIF, or Any Federal Government Agency.May Lose Value. Not a Deposit of or Guaranteed by Any Bank, Credit Union, Bank Affiliate, or Credit Union Affiliate.

Mistake Number Eleven TAKING POLICY WITHDRAWALS WITHIN THE FIRST 15 YEARS

Two characteristics of life insurance allow it to serve as an efficient retirement income supplement: • Cash value build-up is not subject to income tax. • Cash values can be withdrawn (to the extent of basis) or borrowed, free of income taxation.

It is important to understand that withdrawing or borrowing cash values may cause a decrease in the policy’s death benefit.

To prevent abuses of the tax-favored treatment of life insurance, Congress enacted provisions in the Internal Revenue Code sometimes referred to as the “cash-rich rules.” In general, the rules affect policies with large premiums relative to the death benefits that are issued or exchanged after 1984.

According to the cash-rich rules, any time there is a cash distribution from a policy that results in a reduction of the death benefit within the policy’s first 15 years, there is the possibility that some portion of the distribution will be subject to income tax.

There are many ways to avoid the adverse income tax consequences of a “cash-rich” policy. One simple solution is to either wait until year 16 before taking a withdrawal, or structure the distribution as a loan.

Mistake Number Twelve FAILURE TO DO POLICY REVIEWS4

Change is a reason for considering the exchange of an existing insurance policy. Not all change requires a new policy, but it is an important reason for reviewing existing policies.

Generally speaking, it is a good idea to review policies every three years, as well as whenever circumstances change or an event occurs that would warrant an immediate review.

Life insurance is an integral part of a package of personal and financial protection that requires care and attention. Be sure to engage the help of a trusted advisor who can provide guidance and education as you make your choice.

You should carefully consider the risks and benefits before taking action, including your current need for coverage, current health status and insurability, fees and charges associated with terminating an existing contract, and future liquidity needs.

CONCLUSIONNo one would argue that a listing of twelve mistakes is inclusive of all of the errors that could be made with life insurance. It is hoped that an awareness of these limited issues has highlighted the fact that protecting one’s family and business by means of life insurance is very serious and should be done with considerable thought as to the details. Insurance is an integral part of a package of personal and financial protection that requires care in its implementation. The role of competent advisors is important and should not be overlooked.

Client Name Date

This worksheet provides a quick and simple method to estimate the amount of life insurance you will need.

INCOME

1. Annual before-tax income your family would need if you died today Typically between 60% and 80% of total income. Include all salaries, dividends, interest, and any other sources of income. $

2. Annual income available to your family from other sources Include dividends, interest, and spouse’s earnings. (Social Security may be available.) $

3. Annual income to be replaced (Subtract line 2 from line 1.) $4. Capital needed for income

Multiply line 3 by the appropriate factor below: $

Years Income Needed 10 15 20 25 30 35 40 45 50Factor1 9.4 13.6 17.5 21.1 24.5 27.7 30.6 33.3 35.9

EXPENSES

5. Funeral2 and other final expensesTypically the greater of $15,000 or 4% of your estate $

6. Mortgage and other outstanding debtsInclude mortgage balance, credit card debt, car loans, home equity loans, etc. $

7. College costs3 2016-2017 average annual “total” cost of four-year public and private colleges:public in-state: $24,610; public out-of-state: $39,890; private college: $49,320

Annual Amount X Number of Years in College = Total Cost ($)Child 1 XChild 2 XChild 3 XChild 4 XChild 5 X

Total capCtal needed for college $

8. Total value of all you do: The cost of daily activities [Use the calculator on page 2.] $

9. Total capital required (Add lines 4, 5, 6, 7, and 8) $

ASSETS

10. Savings and investmentsBank accounts, CDs, stocks, bonds, mutual funds, real estate/rental property, etc. $

11. Retirement savingsIRAs, 401(k) plans, SEPs, pension, and profit sharing plans $

12. Present amount of life insuranceInclude group insurance and personal insurance purchased on your own $

13. Total of all assets (Add lines 10, 11, and 12.) $14. Estimated amount of additional life insurance needed (Subtract line 13 from line 9.) $

1 Inflation is assumed to be 3%. The rate of return on investments is assumed to be 4.5%. College inflation rate is assumed to be 4.5%.2 The national median cost of a funeral with burial for calendar year 2014 is $7,181. Retrieved on 3/1/2016 from http://nfda.org/about-funeral-service-/trends-and-statistics.html.3 Source: The College Board, Trends in College Pricing 2016, Figure 1. Costs include tuition, room, board, books and supplies, transportation, and other expenses for a resident. The College Costs

numbers are the 2016-2017 national average for a four-year college or university.Prudential Financial and its financial professionals do not give legal or tax advice. Please consult your own advisors.Investment and Insurance Products: Not Insured by FDIC, NCUSIF, or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank, Credit Union, Bank Affiliate, or Credit Union Affiliate.Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities.

© 2017 Prudential Financial, Inc. and its related entities. 0217699-00007-00 Ed. 10/2017

Annual Amount X Number of Years in College = Total Cost ($)

Total Capital Needed for College

How Much Life Insurance Is Enough?LIFE INSURANCEQUICK ESTIMATOR

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

Years Income Needed 10 15 20 25 30 35 40 45 50

This is how much life insurance you would need to cover these services5

4 Based on current market rate averages. 5 Inflation is assumed to be 3% and life insurance proceeds are invested to earn 4.5% after tax. The earnings on the life insurance proceeds, plus spending down the life

insurance proceeds, will be used to cover these expenses over the expected period. The return is purely hypothetical and is used for illustrative purposes only. Performance results are not indicative of any particular investment. Actual results and investment risks will vary.

Life insurance policies are issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. Life insurance policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your financial professional can provide you with costs and complete details.

© 2017 Prudential Financial, Inc. and its related entities. 0217699-00007-00 Ed. 10/2017

ServicesHours per Week

Hourly Rate4

Estimated Weekly Cost

Number of Years Estimated Total Cost

Child Care

Driving Family Members

Tutoring / Home Schooling

Housekeeping / Home Mgmt.

Food Preparation

Bookkeeping

Yard Care & Maintenance

Home Maintenance & Repair

Parental Care

Other

Other

Estimated Total Costs

Client Name Date

If something were to suddenly happen to you, your family might have to hire others to take on some of your daily activities. You’d be surprised at how all you do adds up!

4To see just how much, estimate the number of hours per week that you spend on each of the activities below. 4The final cost will then be part of the calculation of how much life insurance you need. Even if you earn no income,

insurers generally allow you to get as much life insurance as your working spouse has. 4To get a full picture of your insurance needs, be sure to look at your spouse’s life insurance coverage, too.

The Value of All You DoCALCULATOR

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

IMPORTANT PO INTS TO CONSIDER BEFORE BUYING A L IFE INSURANCE POL ICY

WHAT EVERY CONSUMER SHOULD KNOW ABOUTLIFE INSURANCE

Insurance is issued by The Prudential Insurance Company of America, Pruco Life Insurance Company (except in New York), and Pruco Life Insurance Company of New Jersey (in New York and New Jersey), all located in Newark, NJ.

0168512 0168512-00008-00 Ed. 08/2016

Please note that this brochure discusses various types of life insurance, including variable life insurance. Variable life insurance is considered a security; it is possible to lose money by investing in securities.

WHAT IS LIFE INSURANCE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

HOW MUCH LIFE INSURANCE SHOULD I OWN? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

WHY DO I NEED LIFE INSURANCE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

The Needs and Concerns Most People Have . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

TERM OR PERMANENT LIFE INSURANCE—WHICH SHOULD I BUY? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Permanent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

CAN’T I JUST BUY ANOTHER TERM POLICY LATER? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

WHY SHOULDN’T I JUST “BUY TERM AND INVEST THE DIFFERENCE”? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

HOW DO I MAKE SENSE OF ALL THE PERMANENT POLICIES AVAILABLE? . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

WHEN SHOULD I GET EACH? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

HOW DOES AN “ADJUSTABLE GUARANTEE AGAINST LAPSE” OR “NO-LAPSE GUARANTEE” WORK? . . . . . . . 4

MORE INFORMATION ABOUT CASH VALUE AND PREMIUMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

OTHER QUESTIONS YOU MAY HAVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

How Much Will Life Insurance Cost? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Do I Need Individual Life Insurance if I Have Group Life Insurance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

If I Already Own Life Insurance, Should I Purchase Life Insurance on My Spouse? . . . . . . . . . . . . . . . . . . . . . . . 6

Should I Purchase Life Insurance on My Child? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

What Do I Need to Know About Stranger-Owned Life Insurance (STOLI)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

When Should I Review My Current Coverage? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

What is Underwriting? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

WHAT SHOULD I KNOW BEFORE REPLACING ONE LIFE INSURANCE POLICY WITH ANOTHER? . . . . . . . . . . . 7 – 8

WHO CAN SELL YOUR LIFE INSURANCE POLICIES? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

How Do They Get Paid if I Buy a Policy? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

If I Purchase a Variable Life Insurance Policy, How Can I Check Out the Sales Professional? . . . . . . . . . . . . . . . . 9

FINDING WHAT’S RIGHT FOR YOU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

TABLE OF CONTENTS

1

The Prudential Insurance Company of America and its affiliates (Prudential) are committed to providing information to our customers to help them select the right life insurance policy for their needs. Your financial professional can help you tailor your insurance program to help meet your individual goals based upon your financial status, objectives, and risk tolerance. We encourage you to consider and discuss your general insurance needs, the costs and expenses of life insurance, and the features and benefits of the many products we offer with your financial professional.

WHAT IS LIFE INSURANCE?

It’s often said that life insurance is not for those who die—it’s for those who live. And it is. If you die while you have life insurance in place, the people you’ve chosen (your beneficiaries) will receive a sum of money (the death benefit) from your life insurance policy. They can use this money for anything, but its main purpose is usually to help make up for the loss of your income.

HOW MUCH LIFE INSURANCE SHOULD I OWN?

There’s no single right answer. Some people select a coverage amount that is equal to 6 to 10 times their annual gross salary; others opt for 2 times their annual gross salary. Coverage amounts are individual and certainly not “one size fits all.” To get a more accurate view, it’s best to meet with a financial professional and complete a personal needs analysis.

WHY DO I NEED LIFE INSURANCE?

Life insurance can help protect your family or business from financial loss if you should die while you have obligations. The death benefit proceeds, which your beneficiary receives generally free of federal income tax (IRC §101(a)), can replace some of the money you would have earned and can help with needs such as these on the right:

1

Daily Living Expenses Help maintain your family’s lifestyle by replacing your current income. The death benefit proceeds can help keep the fridge filled, the lights on, and the car payments made on time.

Home Help protect your family’s home by enabling them to pay off the mortgage. This can help them stay where they’re comfortable and in a place filled with warm memories.

Education Help safeguard your child’s future by keeping the college fund intact, helping to ensure that money for your children’s education will be there, even if you’re not.

Last Expenses Help provide funds to pay estate taxes and other final expenses, such as funeral costs and outstanding medical bills, to help ensure that financial difficulties won’t be among your family’s sorrows.

Retirement Help ensure a solid retirement for your spouse or partner if you’re not there.

Business Continuation Help keep your business in the family according to your intentions by helping your family buy out or maintain your business.

The needs most people have

If you own a business

TERM OR PERMANENT LIFE INSURANCE— WHICH SHOULD I BUY?

For most people, the question should not be about which one to choose. Because the two types of life insurance are designed to help meet different types of needs, a combination of the two is appropriate for many people.

Term insurance usually provides the largest amount of insurance protection at the lowest initial cost. For this reason, it’s the type most people start out with. Because term policies end at a specific point—the end of the term —they are best for providing protection for large needs with specific end points. For example, the parent of a young child may choose a 20-year term policy to provide protection until the child is over 18 and, perhaps, on his or her own.

Other typical periods you might choose term insurance to cover include the time:

4 remaining on your mortgage obligation.

4 you plan to continue to work and have others relying on your income.

4 remaining on an outstanding business or other loan.

Permanent insurance is designed to last as long as you live and typically makes a good supplement to term insurance. You will likely still want insurance after your term coverage ends, either for life-long or unplanned needs, or for needs with an unpredictable or extended end date. Good reasons to have permanent insurance include helping to take care of:

4 the costs associated with your death (often called “last expenses”), such as funeral or memorial costs, outstanding medical bills, and estate taxes.

4 someone who becomes or may still be dependent on you (either financially or for care, or both), such as children who are not yet independent or who have special needs.

4 a once-temporary need that you have extended— for example, a refinanced (and possibly extended) mortgage, a home equity loan, a delayed retirement date (meaning extended income-earning years), or a new business.

4 someone, such as a parent, who has developed a condition and who now requires your care.

4 your grandchildren.

4 your “second” family from a remarriage.

CAN’T I JUST BUY ANOTHER TERM POLICY LATER?

For most people, buying a series of term policies throughout their lives as their situation changes is not the best strategy. Life insurance usually gets more and more expensive as you age. So, once you pass a certain age, the cost can become prohibitive. Also, if you develop a health condition that increases the amount you have to pay for life insurance or makes you unable to qualify to buy life insurance (uninsurable), you would risk not having life insurance. For these reasons, a permanent policy can help to protect or “lock in” your ability to qualify for life insurance (insurability).

WHY SHOULDN’T I JUST “BUY TERM AND INVEST THE DIFFERENCE”?

You may have heard the statement “Buy term and invest the difference.” In this scenario, the difference between the permanent life insurance premium and the traditional term life insurance premium is invested in a mutual fund, annuity, stocks, bonds, or other investment vehicle. The idea is that investin g the difference would replace or exceed the cash value accumulation of permanent life insurance.

If you are deciding if this strategy is right for you, you need to consider what best suits your personal objectives and circumstances. For example:

4 You may not have the discipline to actually invest the difference.

4 You need the discipline not only to invest the difference, but also to invest early while the difference between the amount of your term insurance premium and the amount of the premium for your permanent insurance is the greatest. You need to make up early for the dramatic increase in the cost of term insurance at later ages.

4 If you need to renew or reapply for your term policy, the cost may become prohibitive as you get older or if you develop health problems.

4 If health problems occur, you could become uninsurable and not even be able to purchase term insurance when it comes time to renew.

4 The investment you choose may not perform as hoped for. (This can also happen with variable life insurance.)

Carefully weigh knowledge about your habits and self-discipline along with the benefits, risks, product features, and any current or future charges associated with any insurance and/or investment product before making a decision about how to address your particular needs.

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4 Whole Life

This is the tried-and-true permanent life insurance that most people think of when they hear “permanent insurance.”

If you pay your premiums on time, your coverage will stay in force, and your policy will build cash value.

This is a great type of policy if your goal is to buy it and tuck it away in a drawer until it’s needed by your beneficiary. This type also generally has the highest premiums.

4Universal Life (UL)

This type of policy can be a good match if you would like to earn interest within the policy while getting more flexibility than a traditional whole life policy allows.

You can choose your premium payment schedule and you may have the potential to earn more cash value.

Most UL policies earn a minimum interest rate, giving you some security about the earnings. You can usually borrow or take withdrawals from the cash value that accumulates in your policy.

One type of Universal Life policy is Indexed Universal Life, or IUL.

Unlike other universal life products, which credit interest based on rates declared in advance by the insurance company, IUL can credit interest based on the performance of independent financial indices. The most popular indices used for IUL are stock indices calculated without dividends. It is important to understand that the money in an IUL policy is not directly invested in any of the indices.

Policyowners may decide how much of the policy cash value is allocated to the index feature and how much is allocated to a fixed-interest option. Cash value allocated to the index is usually credited with interest based on the change in the index value from one year to the next (“Annual Point to Point”). Each index option includes a maximum (“cap”) and minimum (“floor”) rate that protect consumers from loss but limit upside growth. Generally, these factors are subject to change by the insurance company, though they will never be reduced below a contractual minimum.

4Variable Universal Life (VUL)

This type of policy gives you the flexibility of a universal life policy but adds an investment element.

With a VUL policy, you are in charge of how the parts of your premium payments not needed for your actual costs and charges (net premiums) are invested. You have a choice of investment options (also called sub-accounts), and you can decide how much of your net premiums should be allocated to each of the options you select. The subaccounts can invest in stocks, bonds, and other funds.

Since the cash value of your policy may be tied to the financial market, this type of policy has the potential for returns higher than a universal life policy’s, but it can also lose value if the investment results are poor.

This is a good policy for people who like the investment element, can fund the policy properly, and have some time (typically years) to allow it to potentially build cash value.

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It’s true—there are many types of permanent insurance policies. They all can provide life insurance protection for your lifetime and typically have some ability to build cash value. How they build this cash value and how great their potential is for the amount they can build are key differences among them. Plus, some permanent policies allow two people to be covered under one policy—these are called survivorship or second-to-die policies. (Please see our section on “More Information About Cash Value and Premiums” to learn more about using a policy’s cash value.)

HOW DO I MAKE SENSE OF ALL THE PERMANENT POLICIES AVAILABLE?

Here is a snapshot of the types of permanent policies:

4Survivorship, or Second-to-Die

This is one policy designed to cover two people. It pays the death benefit once both of the insured people have died and is often less expensive than two separate policies.

It is often used in estate conservation strategies, especially in conjunction with an Irrevocable Life Insurance Trust (ILIT), as a way to pay estate taxes; this can help preserve a wealthy couple’s estate so it can be passed on to the next generation or to a charitable organization. Survivorship policies are often recommended if one person would otherwise not be able to qualify for life insurance.

Whole, universal, and variable universal life policies come in survivorship versions.

Snapshot (cont.)

WHEN SHOULD I GET EACH?

This question can best be answered by your age, life-stage, and budget. Since the cost of insurance increases as you get older and/or develop health issues, it’s usually wise to buy any life insurance while you’re younger and in good health. Generally speaking, term is likely to be the first type of life insurance people buy when they’re first starting out—when they get married, buy a house, are earning an income, and have children. Especially if you have budget concerns and a lot to protect, term can often be the more economical short-range choice. And it’s a good way to get some insurance protection in place now!

As you move through life, earning more and having more responsibilities and more dependents—children, a partner, or parents who rely on your income—you might need permanent insurance. Different types of term policies become available every few years and now even include one that refunds your premiums if you live beyond a certain timeframe. This particular type of policy, a return of premium term policy, can be helpful for specific needs because your premiums may be returned just when you need to pay for a child’s wedding or other event, or when you’d like extra money to start off your retirement. Keep in mind that this is still term insurance and it will end. Also remember that conditions and restrictions generally apply.

Then, to help ensure you have life insurance protection for your lifetime, and depending on your preferences and budget, you can choose from several types of permanent insurance.

HOW DOES AN ADJUSTABLE “GUARANTEE AGAINST LAPSE,” OR “NO-LAPSE GUARANTEE,” WORK?

A guarantee against lapse ensures that your death benefit is secure regardless of changes in the policy’s interest-crediting rates or rate of return, charges, or cash value. You can control how long this guarantee is in effect, whether it’s for a few years or a lifetime. When you purchase a policy with this feature, you’ll be told the minimum premium amount you need to pay to keep this guarantee in effect. Generally, the greater your premium payments, the longer the guarantee will last. All guarantees are based on the issuing company’s ability to pay claims and do not apply to any underlying investment options. The length of the guarantee period may also change depending on:

4 the dollar amount of the premiums you pay.

4 how timely your premium payments are received.

4 when and how often you pay premiums.

4 whether you take any policy loans or withdrawals.

Changing any of these factors could reduce the length of the guarantee or even end it. If this happens and the policy values are not high enough to support the policy, the policy could lapse. If the policy lapses within the first few years, you may have to pay surrender charges. If you’ve taken loans or withdrawals, taxes may also be due, depending on how much you borrowed or withdrew. If the policy lapses and is reinstated, it may be reinstated without the guarantee against lapse being in force.

If you pay only the amount needed to secure a guarantee that is less than a lifetime guarantee, you may need to pay additional premiums once the guarantee period ends to keep the policy in effect. Also, by paying only the premium required for the No-Lapse Guarantee, you may be forgoing the potential to build tax-deferred cash value.

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MORE INFORMATION ABOUT CASH VALUE AND PREMIUMS

We’ve said permanent policies can build cash value. You can usually access this cash value by taking withdrawals or policy loans. Being able to tap into this money can be part of your strategy and among the reasons for buying a particular policy. Or, having this money available can help you out of an unexpected bind. Either way, taking the money out can be quite helpful; at the same time, it will have some effect on the rest of your policy and might even have tax consequences. If you have a guarantee on your policy, it could also affect that guarantee.

The cash value your policy builds will not be taxed until you take it out of the policy. Loans are generally not taxable when you take them. However, if you cancel the policy or let it lapse, any loan that you have not yet paid back could be taxable if the outstanding balance is more than what you have paid into the policy (also referred to as your cost basis). Withdrawals generally are first a return of cost basis, with subsequent amounts being taxable to you. If you do take some money out, you will thereby reduce the cash value and possibly also the death benefit that will be paid to your beneficiary. It might also become necessary for you to pay more into the policy than you originally expected to and could trigger taxes.

While taking a loan or withdrawal may be helpful, before you do so it is important to consider the potential tax consequences and impact on the other valuable policy benefits. It is a good idea to speak with your tax advisor.

Note that if your cash contribution exceeds certain limits and your contract becomes a Modified Endowment

Contract (MEC), as determined by the IRS, different tax rules and, in some cases, penalties apply to distributions such as loans and withdrawals (including distributions made in the two years before the policy becomes a MEC). A MEC can result from paying more than a certain amount in premium payments or from reducing coverage.

OTHER QUESTIONS YOU MAY HAVE

How Much Will Life Insurance Cost?

The right life insurance policy is one that provides the coverage you need at a price you can afford. With a variety of policies to choose from, you can find one or a combination of policies to help meet your protection needs and fit your budget. A financial professional will be glad to review your options. [If you’d like a quote, go to www.prudential.com and click on “Get a Life Insurance Quote.”]

Depending on the policy and the company issuing your policy, you could have premium payment options. For policies that are not flexible-premium policies, selecting a payment option other than annual typically results in a higher yearly premium amount, thus adding to your costs. This is because the company has to cover the added administrative cost of collecting additional premium payments and does not have the use of the entire premium amount at the beginning of the policy year.

If your policy has flexible premium payments, there are no scheduled premium due dates. To manage this, you can ask to be billed annually, semi-annually, or quarterly for the amount you select. When you receive a premium

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Probably. Participating in your group life insurance is a good idea because you may be able to receive life insurance at a lower, group rate. If your group coverage is convertible—meaning, when you leave the company you can convert it to an individual policy without evidence of insurability—the individual policy you convert to will generally have relatively high premium costs compared with other policies. If your group coverage ends, you could apply for a new policy, especially if you are healthy. Otherwise, you may not qualify or may have to pay higher premiums depending on your age and health status. Group life insurance may also not provide an adequate amount of death benefit to meet all of your needs.

Consider supplementing your group policy with individual life insurance coverage. An individual life insurance policy is one that you own—it is not tied to your employer and you won’t have to worry about your premiums rising every year. With an individual life insurance policy, you won’t need to wonder whether you still qualify every year, or if you will lose your life insurance if you change jobs or get laid off. It’s insurance coverage that stays with you. To get an accurate estimate for your situation, it’s best to meet with a financial professional and complete a personal needs analysis.

Do I Need Individual Life Insurance if I Have Group Life Insurance?

notice, you are not required to pay this amount, but you’ll want to be sure you can “afford” to skip payments— meaning, you’ll want to be sure your policy has enough value within it to stay in force.

If I Already Own Life Insurance, Should I Purchase Life Insurance on My Spouse?

If your spouse contributes to the family’s annual income, then he or she should have adequate life insurance protection to help replace his or her income in the event of his or her death. If your spouse does not earn an income, life insurance can still play an important role in helping to pay for valuable services he or she provides— for example, providing child care, elder care, maintaining the home, and running the household. To find out more, meet with a financial professional, who can complete a personal needs analysis with you.

Should I Purchase Life Insurance on My Child?

There are two reasons you may want to consider purchasing life insurance for your child:

4 You can generally purchase life insurance at the lowest possible premium. If your child were to purchase the same amount of coverage when he or she becomes an adult, the annual cost would generally be much higher.

4 You can help ensure that he or she has life insurance protection for life. If the child develops health problems as an adult, he or she could become uninsurable and may not be able to obtain life insurance coverage. In some families, a grandparent purchases a life insurance policy for the child. Note that some states limit the amount of life insurance that can be purchased on minors.

What Do I Need to Know About Stranger-Owned Life Insurance (STOLI)?

People purchase life insurance to provide financial protection for loved ones and business associates. This is an example of “insurable interest” because the beneficiaries will experience some financial hardship when the insured person dies. Life insurance helps to ease that burden.

Most states prohibit a person from purchasing a life insurance policy when there is no “insurable interest” in the person insured by the policy. Such a purchase would be a wager, where one is betting on the early death of another to make a profit. This notion is contrary to American public policy in that one person should not benefit from the early death of another person.

STOLI is the purchase of a life insurance policy for the financial gain of a third-party investor who, at the time the policy originates, has no insurable interest in the person being insured.

In other words, a stranger would own an interest in the insured person’s life. STOLI includes cases in which there is an agreement, verbal or written, to transfer the ownership of the policy and/or the policy benefits to a third party at some time in the future. Trusts created to give the appearance of insurable interest also violate the prohibition against wagering on life.

Prudential will not issue a policy if it determines that STOLI may be involved.

Entering into a STOLI arrangement could have the following impacts:

4 The ability to purchase additional insurance on the insured’s life could be limited because there is a limit to how much coverage insurance companies will issue on one person’s life.

4 If there is a need to obtain additional insurance coverage on the insured person, his or her higher issue age, a change in health status, or other factors may reduce the ability to get coverage and may result in significantly higher premiums.

4 Because these situations may result in tax consequences to the policyowner, a professional tax advisor should be consulted.

When Should I Review My Current Coverage?

Your situation now may be significantly different from what it was when you bought your life insurance policy. If something were to happen to you today, would your family have enough coverage? Generally, we recommend you meet with your financial professional once a year; however, if you have done any of the following since you bought your policy, you should review your coverage as soon as possible:

4 Purchased a home

4 Had a child

4 Married, divorced, or become widowed

4 Changed jobs

4 Started your own business

4 Began caring for an elderly relative

4 Taken out a large loan

4 Started a retirement or college fund

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What Is Underwriting?

Underwriting, a term used frequently in the insurance industry, is an evaluation of your current health, medical history, family medical history, and lifestyle. To purchase life insurance, you may have to take a medical exam to assess your health.

Through underwriting, companies establish your eligibility for life insurance as well as make sure that you get the best possible premium price based on your health and lifestyle. All the information gathered during the application process is considered confidential and is shared only with those who need it to determine your eligibility for life insurance.

During underwriting, you’ll be asked questions about such things as:

4 your finances: how you will pay for the policy and if you’re replacing another policy.

4 your driving record.

4 the hobbies or sports you engage in.

4 your family’s medical history.

4 your medical history, including the names and contact information for doctors you have been to.

WHAT SHOULD I KNOW BEFORE REPLACING ONE LIFE INSURANCE POLICY WITH ANOTHER?

It is generally not in your best interest to replace a life insurance policy. Check with the agent or company that issued you the one you have now. When you bought your existing policy, you may have seen an illustration of the benefits of your policy. Before replacing your policy, ask your agent or the issuing company for an updated illustration. Check to see how the policy has performed and what you might expect in the future. Then, if you are still considering replacing an existing life insurance policy with a new one, it is important that you understand what you will gain and what you will lose by doing so. Price should not be the only factor in your decision. You should understand that:

4 It may be costly to replace a policy. Much of what you paid in the early years of the policy was used to cover the company’s cost of selling and issuing the policy. If you buy a new policy, you will pay this type of cost again.

4 Dropping your policy could have tax consequences. Ask your tax advisor if this is true of your situation.

4 You might lose policy benefits. You may have valuable rights and benefits in the policy you now have that are not in the new one. If the policy you have now no longer meets your needs, you may not have to replace it; instead, you might be able to change your policy or add to it to get the coverage or benefits you now want.

4 You might create a coverage gap. At least in the beginning, a policy may pay no benefits for some causes of death covered in the policy you have now.

Points to compare. If you’d still like to pursue replacing a policy, then you’ll need to compare your existing policy with the proposed new one. Before replacing any policy, be sure to compare these points:

4 Your insurability. It’s possible that you have had a change in health since the purchase of your current policy. This can change the underwriting category you fit into or even make you ineligible for coverage. You should not cancel your existing policy until the new policy has been issued and is considered “in force.”

4 Face amounts. If the new policy’s death benefit will be lower, you should carefully consider whether it is adequate to meet your life insurance needs. It may be cheaper to reduce the face amount on your current policy if you need less coverage.

4 Premiums. Carefully consider the many aspects of premium payments, including amount, frequency, duration, and guarantees, and note how they differ between policies:

– Amounts. Since you are older than you were when you applied for your existing policy, and it’s possible that your health has changed, the premiums will likely be higher. Know what your new premium payments will be and whether you can afford any increase. If the premiums for your existing policy are being paid for under a waiver of premium benefit provision, it is probably to your advantage to keep your existing policy.

– Frequency and duration. How often and for how long will you have to pay premiums? Carefully compare the premiums you pay under your existing policy and what is permitted under the new policy, and consider whether you will have the flexibility you need to maintain appropriate premium payments.

– Guarantees. Some premiums are guaranteed for the life of the policy; some are guaranteed for only a limited period of time and, once the guarantee ends, the premiums may increase.

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4 Protection guarantees. Does your existing policy guarantee the length of time the policy will remain in force even if investment options or other influencing factors do not perform as anticipated? Does the proposed policy offer this same type of guarantee? If so, find out whether it applies for the same length of time as that on your existing policy and how much the premium is for this guarantee. Confirm that the premium you’re quoted includes the guarantee you want, if you want one.

4 Supplemental benefits and other features. Do the policies allow for the addition of supplemental benefits (such as a living benefit or waiver of premium)? These benefits may not be available on the new policy, and this valuable coverage may be lost if you replace your policy. You should carefully consider the availability and cost of these benefits on the new policy. You should also determine if there are any other features of your existing policy that are not available in the proposed new policy.

4 Charges. What new or additional costs will you incur, and how do the contract charges and other policy expenses compare? Be sure you know how such charges will be paid on the new policy—for example, whether they will be taken out of your premium payments or deducted from your policy values—and how this compares with your existing policy.

4 Exclusion periods. A new policy will be subject to a new two-year contestability period and suicide clause. This means the company could challenge a death claim within two years of a new life insurance policy being issued.

4 The company and representative. Before making your decision, consider the company and the representative who will be providing service. What is the company’s reputation? Make sure you’re comfortable with how the representative answers your questions and responds to your concerns.

4 Other points. You should consult with your tax and legal advisors to understand what, if any, consequences there may be now or in the future for replacing your existing policy and purchasing the proposed new one.

Additional considerations. Based on the specific type of policy you have and the policy you are considering, there are additional points to consider. Used in conjunction with the list above, these additional considerations can help you to more fully explore what is best for your situation.

If you’re converting a term policy to a permanent one. Because term and permanent policies are so different, it is important that you carefully consider whether you understand the permanent policy and how it works—how it builds cash value, what the premium payments will be, and how closely you need to monitor it, for example. Also consider:

4 Conversion options and credits. If you have a term policy, does it allow for converting it to a permanent life insurance policy without a medical exam? Some policies offer a conversion premium credit if you exercise the option to convert. It reduces your first year’s premium on the permanent policy, thereby helping you to make the transition from term to permanent insurance. The conversion privilege is often limited to a period of time that is shorter than the term of the policy and may limit the amount of coverage that can be converted. If you are eligible for a conversion credit, be sure to ask what the premium for the new policy will be in the second policy year and beyond.

4 Exclusion periods. The two-year contestability and suicide periods generally begin anew when a new life insurance policy is purchased. However, when you convert a term policy to a permanent policy, the guaranteed amount of coverage that is converted will not be contestable to any greater extent than it would have been contestable had the conversion not taken place. Any excess amount of coverage provided in the new policy, beyond the guaranteed amount converted, will be subject to a new two-year contestability and suicide period.

If you’re considering using the values of one policy to purchase another. “Financing” is the name for the transaction of obtaining funds from an existing policy through a withdrawal, partial surrender, or loan and using them to purchase a new policy. Know that taking a loan or withdrawal may reduce the death benefit on your existing policy and may have tax consequences, and that loans should be repaid. Using existing policy values to pay premiums over the long term is often dependent on factors that you should not rely on: non-guaranteed investment returns (variable life); interest-crediting rates (universal life); or non-guaranteed dividends (traditional whole life). You may have to make additional out-of-pocket payments.

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WHO CAN SELL YOUR LIFE INSURANCE POLICIES?

The financial professionals who sell our life insurance products are either Prudential employees or independent contractors or associated with unaffiliated firms with whom Prudential has a selling relationship.

How Do They Get Paid if I Buy a Policy?

If you purchase a life insurance policy, the financial professional and/or firm will be compensated by Prudential. This compensation will include commissions and, to the extent permitted by law, regulations, Financial Industry Regulatory Authority (FINRA) rules, and, as applicable, the financial professional’s firm; it may also include expense reimbursement allowance, bonuses, marketing support payments, employee benefits, participation in Prudential-sponsored conferences and awards, training programs, and marketing opportunities or incentives. These arrangements may not be offered to all firms and the terms of the arrangements may differ. Firms and agents may receive greater compensation for selling a policy that is eligible for these compensation arrangements than for selling a different policy that is not. The amount of commission is based on premiums, and other types of compensation may also be based on the sales volume of the financial professional or the firm.

If I Purchase a Variable Life Insurance Policy, How Can I Research the Financial Professional?

If the financial professional is a Prudential employee, he or she is a registered representative of Pruco Securities, LLC, which is a broker-dealer and a member of FINRA. If the financial professional is an independent contractor not employed with Prudential, he or she may be a registered representative of another broker-dealer not affiliated with Prudential or Pruco that is also a FINRA member. You may obtain information about the professional background of FINRA members and their representatives by calling the FINRA BrokerCheck Hotline number, (800) 289-9999, or by visiting the FINRA website at www.finra.org. An investor brochure that contains information describing the FINRA BrokerCheck is also available to you by calling FINRA’s hotline or visiting its website.

FINDING WHAT’S RIGHT FOR YOU

Everyone has his or her own goals for personal financial security. You can personalize your policy to meet your needs by adding riders that provide you with additional insurance coverage. You may choose to help meet your goals by purchasing a permanent life insurance policy and supplementing it with term insurance for additional coverage during a particular period of time.

A financial professional can work with you to help you decide which of our products best meets your needs.

ABOUT PRUDENTIAL FINANCIAL

Since 1875, Prudential Financial has been helping people of all ages realize their goals for financial security. Prudential Financial serves millions of individual and institutional customers worldwide, offering them life insurance and other financial products and services for a variety of needs. Our financial professionals are interested in you and your needs. They want to assist you in developing strategies that effectively address your financial security concerns.

All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

Life insurance policies contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. A financial professional can provide you with costs and complete details.

Neither Prudential Financial nor its financial professionals render tax or legal advice. Please consult your attorney, accountant, or tax advisor regarding your particular situation. Life insurance is issued by The Prudential Insurance Company of America and its affiliates. Variable life is distributed by Pruco Securities, LLC, member SIPC, 751 Broad Street, Newark, NJ 07102 (800) 201-6690. All are Prudential Financial companies. Each is solely responsible for its own financial condition and contractual obligations.

It is possible to lose money by investing in securities.

Investors should consider the contract and the underlying portfolios’ investment objectives, risks, charges, and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained from your financial professional. You should read the prospectuses carefully before investing.

Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities.

© 2016 Prudential Financial, Inc. and its related entities.0168512

Investment and Insurance Products:Not Insured by FDIC, NCUSIF, or Any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by Any Bank, Credit Union, Bank Affiliate, or Credit Union Affiliate.

Cumulative Premium (Years 1 – 30): Legal & General OPTerm 30 = $12,768 / Protective Custom Choice UL 20 = $9,930

Assumes Male, Age 35, Preferred Non-Tobacco

Data for product and company comparison is based on a basic policy comparison of Protective Custom Choice UL to Legal and General’s product with level premiums for 30 years. This is based on information publicly available from the company which is believed to be current as of August 2016 and is subject to change. Mortgage of $375k at 4% APR for 30 years.

See how Protective offers more for approximately 25% less premium on a $375,000 mortgage

PLAG.10529 (02.17) For Financial Professional Use Only. Not for Use With Consumers.

Additional Information on Reverse Side.

Life insurance is about protection, and can even help cover mortgage debt. Think outside the traditional approach and offer clients a more flexible option with a solution that provides real value that they can count on. No surprises. No disappointments.

Mortgage Protection for Less

PROTECTIVE® CUSTOM CHOICE UL

n Mortgage Balance n Death Benefit

$500,000 $500,000

$375,000LEGAL & GENERAL

DEATH BENEFIT

$176,829$375,000 $97,212

$110,680

$0

$59,964

YR 20 YR 25 YR 30YR 1

* After the initial benefit period ends, the guaranteed death benefit will begin to decrease while the premium payment remains level. The death benefit amount will decrease each year until it reaches the minimum of $10,000. At that point, premiums will increase each year.

This case study is hypothetical and for illustrative purposes only. Each individual situation will be different based on the age, sex and health status of the insured. Different planned premium frequencies will require different total annual premium amounts. More frequent planned premiums will typically require higher premium payments to be made.

Lapse protection guarantees the policy death benefit for the duration of the guarantee and does not cover cash or surrender value. Loans, withdrawals, and other policy and premium changes will affect the cost and length of protection. Failure to make premium payments as planned may cause the policy to lose lapse protection, and premiums required to restore it could be significantly higher. Refer to the policy and endorsements for complete terms, conditions and limitations.

Protective Custom Choice UL (UL-22) is a universal life insurance policy issued by Protective Life Insurance Company, Birmingham, AL. Policy form numbers, product features and availability may vary by state. Consult policies for benefits, riders, limitations and exclusions. Subject to underwriting. Up to a two-year contestable and suicide period. Benefits adjusted for misstatements of age or sex. In Montana, unisex rates apply.

All payments and all guarantees are subject to the claims-paying ability of Protective Life Insurance Company.

Let’s deliver on our promises. Together.Contact your BGA or the Protective Life Sales Desk to request an illustration and learn more about Protective Indexed Choice UL.

877.778.3500, option 1 www.myprotective.com

www.myprotective.com

PLAG.10529 (02.17) For Financial Professional Use Only. Not for Use With Consumers.

1Cigarette smoker statistics from year 2015. 2Statistic from 2016 Insurance Barometer Study; LIMRA and Life Happens.

Source: CDC report updated 12.01.16 “Current Cigarette Smoking Among Adults in the US.”Legal & General America life insurance products are underwritten and issued by Banner Life Insurance Company, Urbana, Maryland and William Penn Life Insurance Company of New York, Valley Stream, NY. Banner products are distributed in 49 states and in DC. William Penn products are available exclusively in New York; Banner does not solicit business there. The Legal & General America companies are part of the worldwide Legal & General Group. OPTerm policy form # ICC12OPTN and state variations. In New York, OPTerm policy form # OPTN-NY. Rates as of 11.21.17. Premiums are guaranteed to stay level for the initial term period and increase annually thereafter. Premiums include $60 annual policy fee. Premiums based on preferred tobacco and standard tobacco underwriting classes. Two-year contestability and suicide provisions apply. Policy descriptions provided here are not a statement of contract. Please refer to the policy forms for full disclosure of all benefits and limitations. LAA2232 17-383 (11.20.17)

Recent QuitterAmy just celebrated her 25th birthday and recently married her best friend, Dave. They bought a house together and want to start a family. Amy has been a light smoker since college, but she quit a few months ago, wanting to be as healthy as possible before having a baby. She can buy an affordable, 20-year term policy, with a $100,000 of coverage, for just over $16 per month. That’s a lot less than her monthly cell phone bill. Amy can buy her policy now with Preferred Tobacco rates, and after one year of no tobacco use, she could qualify for Standard Plus Non-tobacco rates—saving her even more money.

E-Cigarette SmokerTodd and Lisa are both 30 with two children. Lisa already has life insurance, but wants Todd to buy a policy so she and the kids are protected financially in the event of his death. Todd has been smoking e-cigarettes for a few years, and Lisa isn’t sure they can afford coverage on him until he quits smoking, although he is otherwise healthy. Todd finds out he can afford a 15-year term policy, with $500,000 of coverage, for a little over $61 per month. That’s less than a monthly internet bill for Todd and Lisa to have peace-of-mind.

Cigarette Smoker John and Sara are both 45, have focused on their careers, and enjoy fostering dogs. John has group life insurance through his work and has a term life insurance policy that is about to expire in two years. He knows he needs to buy another policy to last until his retirement at age 65. John still has good health, but wants to quit smoking for good in the next few years. In the meantime, John could qualify for a 20-year term policy, with $100,000 of coverage for just under $51 per month. That’s less than their monthly dog food bill.

Check out these examples to give you an idea of the cost of term life insurance.

•

Monthly Cost for 20-Year Term Coverage - $100,000 Death BenefitGender & Rate Class Age 25 Age 30 Age 35 Age 40 Age 45 Age 50

M - Preferred Tobacco $19.26 $20.98 $26.32 $35.43 $49.79 $73.53

M - Standard Tobacco $26.40 $29.50 $33.20 $46.35 $68.46 $98.30

F - Preferred Tobacco $15.74 $17.80 $22.79 $31.48 $42.48 $58.48

F - Standard Tobacco $20.47 $23.91 $28.38 $38.01 $53.58 $75.16

Monthly Cost for 15-Year Term Coverage - $500,000 Death BenefitGender & Rate Class Age 25 Age 30 Age 35 Age 40 Age 45 Age 50

M - Preferred Tobacco $54.52 $59.68 $69.14 $100.10 $155.23 $235.55

M - Standard Tobacco $76.45 $79.89 $92.43 $134.93 $215.77 $325.85

F - Preferred Tobacco $43.77 $47.73 $54.52 $80.32 $124.61 $183.52

F - Standard Tobacco $57.10 $61.06 $76.02 $104.40 $163.31 $242.00

35% of people wish their spouse or partner would purchase life insurance coverage.2

•

While smoking is on the decline, an estimated 36.5 million adults in the United States currently smoke cigarettes1. Life insurance coverage is typically more expensive for tobacco users, but that’s no reason to delay buying protection.

Smokers Need Life Insurance Too

Statistic from 2016 Insurance Barometer Study, Life Happens and LIMRA. Salary and hourly statistics from Salary.com, 2016 Mother’s Day Infographic For How Much Moms Are Worth This Year.Legal & General America life insurance products are underwritten and issued by Banner Life Insurance Company, Urbana, Maryland and William Penn Life Insurance Company of New York, Valley Stream, NY. Banner products are distributed in 49 states and in DC. William Penn products are available exclusively in New York; Banner does not solicit business there. The Legal & General America companies are part of the worldwide Legal & General Group. OPTerm policy form # ICC12OPTN and state variations. In New York, OPTerm policy form # OPTN-NY. Rates as of 11.21.17. Premiums are guaranteed to stay level for the initial term period and increase annually thereafter. Premiums quoted include $60 annual policy fee. Premiums based on preferred plus non-tobacco, preferred non-tobacco, standard plus non-tobacco, and standard non-tobacco underwriting classes. Two-year contestability and suicide provisions apply. Policy descriptions provided here are not a statement of contract. Please refer to the policy forms for full disclosure of all benefits and limitations. LAA1971 17-382 (11.20.17)

During a typical week, a mom spends:

• 14 hours as a day-care teacher• 10 hours as a household CEO• 8 hours as a psychologist• 12 hours as a chef• 8 hours as a housekeeper• 3 hours doing laundry• 9 hours as a computer operator• 10 hours as a facilities manager• 8 hours as a janitor• 8 hours as a chauffeur

It’s Not Just a Man’s WorldMake sure you have life insurance coverage too

Lock in guaranteed premiums. Make a decision today to protect your family’s financial future with a term life insurance policy from Legal & General America.

MONTHLY COST FOR A $500,000 DEATH BENEFIT

Class Age OPTerm 15Female

OPTerm 20Female

OPTerm 25Female

OPTerm 30Female

Preferred Plus Non-Tobacco

25 $14.10 $16.68 $21.50 $24.85

35 $15.05 $18.49 $26.32 $31.82

45 $29.24 $38.70 $53.07 $63.64

Preferred Non-Tobacco

25 $17.54 $20.12 $26.00 $28.38

35 $19.65 $24.42 $31.82 $37.84

45 $36.98 $45.58 $62.40 $75.25

Standard Plus Non-Tobacco

25 $23.22 $27.35 $34.31 $37.84

35 $25.71 $32.05 $41.83 $49.36

45 $50.05 $63.55 $83.76 $99.24

Standard Non-Tobacco

25 $27.86 $30.44 $39.62 $46.01

35 $30.53 $38.57 $50.24 $59.25

45 $60.20 $73.10 $98.34 $117.82

You’re a chauffeur, teacher, chef, dryer of tears... otherwise known as a mom. Nothing can replace you, but having life insurance means that your family will be protected if something happens to you.

27% of women say they need more life insurance.

Does My olD Plan Work With My neW FaMily?

Blended Families: Important questions to think about when it comes to your family’s financial future.

Nobody said life was predictable.

But one thing is constant—the need to protect the people you care about most.

With over 20 million blended families in the United States, it is very common to be part of a family that brings together children and assets from previous marriages.

Whether you already have an estate plan in place, or are just developing one for your blended family, it’s critical that you identify your objectives, recognize potential conflicts and understand the implications of these decisions on those you care about most.

Why a typical estate plan may not be enough.

While a traditional estate plan is principally designed to benefit a surviving spouse and minimize taxes, this type of plan may not address the specific needs and potential conflicts unique to a blended family.

How do you know if you need a more detailed plan to ensure that everyone is taken care of the way you intended?

Here are a few questions to consider:■■ Is it important to provide for your children from a previous marriage in a way that ensures that they will

receive their inheritance in a timely manner?

■■ Did you know that with a traditional estate plan you may unintentionally be giving your ex-spouse control over your minor children’s inheritance?

■■ Is it important to you to avoid conflict between your current and previous family members regarding the way that your estate will be distributed?

If your answer is “yes” to any of these questions, it may be time to develop a new plan for your blended family.

Where do you start?

To help you develop a framework for discussing your objectives, we’ve put together several key questions to think about as you develop your plan.

■■ To which family members would you like to leave an inheritance?

■■ What are your specific financial objectives for each family member (i.e. college fund, medical bills, monthly income after retirement)?

■■ What are the potential conflicts within the family that may arise and require some sensitivity?

■■ Do you have concerns over your spouse’s ability to successfully manage inherited assets?

While this list of questions is only intended to get you started, it may help you to develop a clear idea of what you want to accomplish with your plan.

It may be called Legacy Planning, but it’s really about today.

OLA 1440 0715

The Blended Family strategy may be a viable solution if you want to:■■ Provide assets to loved ones in a fair and timely way.

■■ Have more control over the way your legacy will be distributed.

■■ Avoid potential conflicts between family members.

Our business was built on helping families.

For over 100 years, Transamerica has been providing insurance products designed to help families just like yours.

While the world has certainly changed, our objective to help families protect their financial future has always remained the same.

For more information on how Transamerica, legacy planning, and life insurance may be able to help your family’s future, please contact your

life insurance professional or Transamerica today.

Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company (collectively “Transamerica”), and its agents and representatives do not give tax or legal advice. This material and the concepts presented here are for informational purposes only and should not be construed as tax or legal advice. Any tax and/or legal advice you may require or rely on regarding this material should be based on your particular circumstances and should be obtained from an independent professional advisor.

Discussions of the various planning strategies and issues are based on our understanding of the applicable federal income, gift, and estate tax laws in effect at the time of publication. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state laws upon clients and prospects.

Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of July 2015.

Life insurance products are issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499, or Transamerica Financial Life Insurance Company, Harrison, NY 10528. All products may not be available in all jurisdictions.

Transamerica Financial Life Insurance Company is authorized to conduct business in New York. Transamerica Life Insurance Company is authorized to conduct business in all other states.

The Special NeedS TruSTprovidiNg for The fuTure

Providing for the FutureWhen a Special Needs Trust is the owner and beneficiary of a life insurance policy, it is ideal for a special needs child or a dependent adult because the death benefit is:

■■ federal income tax–free,■■ available quickly, and■■ usually received without having to go

through probate.

Additionally, permanent life insurance provides tax-deferred growth of the cash values that can be accessed during the life of the caregiver.* If, however, the caregiver is uninsurable, an annuity may offer a desirable funding alternative. However, an annuity will not have an income tax–free death benefit, and annuity payments may be subject to taxation.

Protect your loved one’s eligibility for state and federal assistance programs, while providing for ongoing care.You want to give your children everything you possibly can. You watch out for their safety when they’re young and help them with their education as they grow older. You guide them toward the future, look forward to their successes, and hope to leave them with a strong financial base when you’re gone.

If you are the parent of a child—whether young or adult—with special needs, you also want to ensure that your child receives the proper care after you are gone or when you may no longer be able to properly care for your child. At some point, there may also be an adult in your family who becomes disabled due to an accident or illness.

A Special Needs Trust can help you protect your loved one’s eligibility for state and federal assistance programs, while providing for ongoing care.

Understanding the IssuesWhen a disabled person receives an inheritance, the government will require that the inheritance be depleted before it will pay for food, shelter, and medical care. This can quickly exhaust even a large inheritance.

Under current Social Security Income (SSI) eligibility requirements, ownership of assets in excess of $2,000 disqualifies an individual from most federal assistance programs, such as SSI and Medicaid.

It is important that anyone with special needs qualifies for SSI, since in many states eligibility for SSI guarantees Medicaid coverage. Medicaid provides many crucial services, including comprehensive health insurance, attendant services, dental coverage, day rehabilitation programs, and group homes.

* Loans and withdrawals will affect the policy value and net cash value and may also affect the death benefit.

OLA 1379 0315

What Is a Special Needs Trust?A Special Needs Trust works similarly to any other trust: it is a separate, legal entity that allows you as the donor to gift assets to a second person, the trustee, to be used for the benefit of someone else—in this case, your special needs child or dependent adult.

A Special Needs Trust is designed to provide funding for benefits and services that are otherwise not available. This preserves a disabled person’s quality of life, as well as government benefit eligibility. It leaves funds that will help meet the supplemental needs that go beyond basic care.

A Special Needs Trust can hold a wide range of assets, including cash, stocks, personal property, and real estate. It should also be the owner and beneficiary of a life insurance policy.

Life Insurance and the Special Needs TrustWhen you fund the Special Needs Trust with a life insurance policy, a federal income tax–free death benefit will be paid to the trust to finance the dependent’s ongoing care. The money can be used to pay for things that wouldn’t otherwise be available such as travel, computers, higher quality medical and dental care, education, and rehabilitation.

Special Planning for Special NeedsThe laws governing trusts are complex and vary from state to state. This is why it is important that you work with a qualified attorney who has experience with Special Needs Trusts.

Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company (collectively “Transamerica”), and its agents and representatives do not give tax or legal advice. This material and the concepts presented here are for information purposes only and should not be construed as tax or legal advice. Any tax and/or legal advice you may require or rely on regarding this material should be based on your particular circumstances and should be obtained from an independent professional advisor.

Discussions of the various planning strategies and issues are based on our understanding of the applicable federal income, gift, and estate tax laws in effect at the time of publication. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, the information presented here does not consider the impact of applicable state laws upon clients and prospects.

Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of March 2015.

Life Insurance products issued by Transamerica Life Insurance Company, Cedar Rapids, IA. In New York, products issued by Transamerica Financial Life Insurance Company, Harrison, NY 10528.

Transamerica Financial Life Insurance Company is authorized to conduct business in New York. Transamerica Life Insurance Company is authorized to conduct business in all other states.

For producer use only. Not for distribution to the public.

The Special NeedS TruSTProducer Guide

t r a n s a m e r i c a | 1

With proper legal and financial planning, a family can guarantee that loved ones will enjoy a com-fortable lifestyle, while preserving government program eligibility.

Overview of a Special Needs Trust

A Special Needs Trust is like other trusts: It is a separate legal entity that allows the donors to gift assets to a second person, the trustee, to be used for the benefit of someone else—in this case, a special needs child or dependent adult. Funds from this type of trust are not used to pay for benefits that would otherwise be provided by state or federal programs.

This type of trust is generally established for people who receive Supplemental Security Income (SSI) and Medicaid. In order to receive SSI and Medicaid, one’s assets and income cannot exceed specified levels. Additionally, the grantor of the trust can specify that the trustee is not authorized to replace the cost of services covered by govern-mentally sponsored programs. The trust would require the trustee to provide funds only for certain items, services, or other expenses not covered by SSI and Medicaid.

Parties to a Special Needs Trust

The parties to a Special Needs Trust are:

n The trust grantor(s)—usually the family of the disabled individual

n The trust beneficiary—the disabled individual

n The trustee(s)—the person(s) responsible for managing and investing trust assets on behalf of the person with the disability

Growing Demand for a Special Needs Trust

As our country’s population increases and people continue to live longer, there is a possibility that at some time in a person’s life, he or she—or a loved one—will experience a disability. Consider these statistics:

n The National Center for Education Statistics reports that from 2010-2011, 13.0% of the school age population was served in federally supported programs for the disabled.1

n About 10.2 million persons received benefits based on disability in the U.S., estimated the Social Security Administration in 2013.2

n The U.S. Department of Health and Human Services estimates that 11.2 million children in the U.S. have special health care needs.3

n The Department of Health and Human Services Centers for Disease Control and Prevention indicates that an estimated 1.7 million people sustain a traumatic brain injury annually.4

Providing for the Future

2 | The Special Needs Trust

Why a Careful Financial Strategy Is Important

Under current SSI eligibility requirements, assets in excess of $2,000—with certain exceptions—dis-qualify an individual with special needs from most federal needs-based assistance programs such as SSI and Medicaid. Note that laws and services vary from state to state, and each state may have different eligibility and payback requirements.

Benefits provided by Medicaid include many crucial services, such as comprehensive health insurance, attendant services, dental coverage, day rehabilitation programs, and group homes. People with disabilities who receive publicly funded services must contribute toward the cost of their care on a sliding scale. They are usually allowed a

small personal care allowance to cover the cost of clothing, toiletries, and related items. In many cases, family members must subsidize the costs of these items because the personal care allowance is not sufficient to meet the disabled person’s needs.

Common mistakes such as placing money in a Uniform Transfer to Minors Account or leaving a disabled loved one an inheritance, although well-meaning, may disqualify him or her from govern-ment benefits.

Careful planning allows parents or spouses to provide help in purchasing extras—such as travel, computers, higher quality medical and dental care, education, and rehabilitation—without exposing his or her loved one to cost-of-care charges after the parent or spouse dies or can no longer provide for the disabled individual.

In creating a Special Needs Trust, coordination between public and private resources is absolutely necessary to provide a reasonably comfortable lifestyle for the disabled family member.

Understanding the Costs of a Disability

Because most advisors have limited experience in preparing for the future of a disabled person, it is important to understand the types of costs associ-ated with the specific disability and their impact on government benefits. Of course, this approach will vary with each client and his or her needs.

Under current SSI eligibility requirements, assets in excess of $2,000—with certain exceptions—disqualify an individual with special needs from most federal needs-based assistance.

t r a n s a m e r i c a | 3

Action Steps

Establishing the Special Needs Trust

The laws governing trusts are complex and vary from state to state. This is why it is important that the client work with an attorney who has experi-ence with Special Needs Trusts.

The Special Needs Trust must:n not be funded by the disabled person with his or

her own assets;

n be managed by a trustee (and successor trust-ees) other than the person with the disability;

n give the trustee complete discretion to provide whatever assistance is needed;

n not affect eligibility for means-tested government entitlements;

n not replace the items and services provided by government benefit programs; and

n define what “supplementary” means as it relates to the person with the disability.

Furthermore, the grantor should:n provide a letter of intent that specifies what kind

of care the caregiver would want for the disabled person, should the caregiver die or no longer be able to care for the disabled person including the person’s favorite foods and activities, meaningful occasions, and medical conditions, as well as the names of friends and family who may visit;

n determine who should receive the remainder of the trust after the individual with the disability dies; and

n include choices for successor trustees—people or organizations that will take a personal interest in the welfare of the person with the disability.

Preserving Eligibility

The Omnibus Budget Reconciliation Act of 1993 (OBRA ’93) allows assets owned by a disabled person to be set aside in an OBRA ’93 Payback Trust under certain conditions. The trust must be carefully written to comply with OBRA ’93 and must require

that the state providing services for the disabled individual be reimbursed for the cost of services upon the beneficiary’s death. It is important that the OBRA ’93 trust not be confused with a Special Needs Trust.

Funding a Special Needs Trust

A Special Needs Trust can be funded much like any other trust, with a wide range of assets, including cash, stock, personal property, and real estate. It can also be the owner and beneficiary of a life insurance policy.

Life insurance owned by and for the benefit of a special needs trust can work well because the death benefit is:

n federal income tax–free,

n immediately available, and

n usually received without having to go through probate.

Additionally, permanent life insurance provides tax-deferred growth of the cash values that can be accessed during the life of the caregiver.5 If the caregiver is uninsurable, an annuity may offer a desirable funding alternative. However, an annuity will not have a federal income tax–free death benefit, and gains in annuity values may be subject to taxation at distribution.

Coordination between public and private resources is absolutely necessary to provide a reasonably comfortable lifestyle for the disabled family member.

4 | The Special Needs Trust

Jim and Jane Smith, both 54, have a 13-year-old son, Mike, who has Down syndrome. The Smiths want to ensure that, should they die or become unable to care for their son, he will continue to receive government services while still being able to pay for his education, travel, and other supplemental needs.

Consulting with their financial advisor, insurance professional, and an attorney experienced in special needs planning, Jim and Jane create a Special Needs Trust.

Jim and Jane make annual gifts to the Special Needs Trust which purchases a TransNavigatorSM policy on Jane. In the event that Jane passes away, the Special Needs Trust has instant liquidity provided by the life insurance death proceeds for the continued care of Mike.

Jim and Jane are careful not to name their son Mike as the policyowner or beneficiary since its cash value and policy proceeds would be consid-ered a “countable asset” and could disqualify him from receiving government benefits.

Example: The Smith Family

How Does a Special Needs Trust Work?

GrantorsJim & Jane

Disabled Loved OneMike

SSI & Medicaid

Annual giftsto Trust

Distributionsfor Care

Premiums paidfor policy on life

of grantor

At death ofinsured Grantor,

death benefitproceeds paid

to trust

Eligibility forgovernment

benefitsmaintained

t r a n s a m e r i c a | 5

Planning Options

There are a number of planning options available based on the individual’s specific situation. These include: n Third Party Pooled Special Needs Trust n Individual Pooled Special Needs Trust n Third-Party Special Needs Trust n Individual Special Needs Trust

Pooled Special Needs Trust

Pooled trusts are managed by a non-profit organization. While the trusts are pooled together under one administrative system, each account is invested separately. The trustee opens an account for each disabled individual and invests the assets. The trust is able to make distributions to the disabled person without affecting his or her eligibility for governmental benefits.

Achieving Important Goals

A Special Needs Trust can help clients with disabled family members achieve vital estate planning and financial goals. With proper legal and financial planning, a family can guarantee that loved ones will enjoy a comfortable lifestyle, while preserving governmental program eligibility.

For more information on the use of a Special Needs Trust as part of a legacy plan, or other information on advanced marketing concepts, contact your general agent, or Transamerica’s Advanced Marketing Team.

Sam has a serious injury that will prevent him from working and he is uninsurable.He qualifies for needs-based benefits (SSI & Medicaid).

Does Sam have own funds?

Is fundingamount significant?

Is disabled personage 65 or over?

Disabled person’s own funds(Settlement/Inheritance)

Funds not fromdisabled person

Third-Party SpecialNeeds Trust

Third-Party PooledSpecial Needs

Trust

Individual PooledSpecial Needs

Trust

Individual Special Needs

Trust

NO

NO

YES

YES NOYES

1 U.S. Department of Education, National Center for Education Statistics (2013). Digest of Education Statistics, 2012 (NCES 2014-015), Chapter 2.2 “Annual Statistical Report on the Social Security Disability Program, 2013,” SSA Publication No. 13-11826 (Chart 1;Table 3), December 20143 Health Resources Administration, Maternal and Child Health Bureau. The National Survey of Children with Special Health Care Needs

Chartbook 2009/10.4 Centers for Disease Control and Prevention, Department of Health and Human Services, 2010.5 Loans and withdrawals will affect the policy value and net cash value and may also affect the death benefit.6 No minimum funding amount for trusts through Knights Administration, Inc. 7 Additional funding can be created from life insurance policy.

Transamerica Life Insurance Company (Transamerica) and their representatives do not give tax or legal advice. This material and the concepts presented here are for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.

Discussions of the various planning strategies and issues are based on our understanding of the applicable federal income, gift, and estate tax laws in effect at the time of publication. However, these laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, the information presented here does not consider the impact of applicable state laws upon clients and prospects.

Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of March 2015 .

TransNavigatorSM is a flexible-premium index universal life insurance policy issued by Transamerica Life Insurance Company, Cedar Rapids, IA 52499. Policy Form No. ICC14 IUL08 REV or IUL08 REV. Policy number may vary and this policy may not be available in all jurisdictions.

For producer use only. Not for distribution to the public. OLA 1378 0315

Prospect Profiles

The Special Needs Trust is a strategy that is well-suited for individuals or married couples who currently provide for the care of a disabled loved one. The typical plan aims to maintain continuity of care when the caregivers are gone while maintaining the highest level of care possible from their provision and from any available government programs.

CHOOSING THE COVERAGE FOR YOUR LIFESTYLE.What type of life insurance fits your needs?

TERM PERMANENT• The most affordable type of insurance;

premiums guaranteed for “the term”.

• Designed to meet temporary needs.Provides protection for a specific period of time and generally pays a benefit only if you die during the term.

• This type of insurance is often bought to cover funeral expenses, mortgage or debt payoff, college education costs and income replacement. It makes most sense when you have a need for coverage that will disappear at a specific point in time.

• Because it is designed to last a lifetime, premiums are higher than term insurance.

• Another feature of permanent life insurance is that it can accumulate a cash value that term policies do not.

• As long as you pay the premiums on time and haven’t taken loans, partial surrenders or withdrawals, the full face amount will be paid.

Legal & General America life insurance products are underwritten and issued by Banner Life Insurance Company, Urbana, MD and William Penn Life Insurance Company of New York, Valley Stream, NY. Banner is licensed to do business in 49 states and District of Columbia. William Penn does business exclusively in New York; Banner does not solicit business there. LAA 1960 17-033

EVERY DAY MATTERS.®BANNER. WILLIAM PENN.

¹ Facts about Pet Ownership in the U.S, Pet Statistics, ASPCA, www.aspca.org.2 U.S. Life Insurance Ownership Study, LIMRA, 2016.*Your rate may differ based on health and underwriting. Monthly premiums are available only when using SBLI’s Automatic Premium Plan (APP). Other payment modes and face values are available. Products and features may not be available in all states. Policy Form Series #B-56. Approved for consumer use. The Savings Bank Mutual Life Insurance Company of Massachusetts, Woburn, MA. © 2017 All rights reserved. NAIC #70435. The Savings Bank Life Insurance Company of Massachusetts has become a mutual life insurance company and is making regulatory filings in all jurisdictions in which it is licensed to use its new legal name The Savings Bank Mutual Life Insurance Company of Massachusetts. States that have approved our new legal name can be found at www.sblibrokerage.com/mutual. 17-1013 10/17

You may have guessed that we’re talking about a dog…and term life insurance.

Do You Already Own One? Did you know that 70 to 80 million dogs and 74 to 96 million cats live in up to 47% of all U.S. households?¹

How does this compare to life insurance? • In 2016, the number of households owning

life insurance grew to 87.2 million, an increase of 4.9+ million in six years.² So it appears that pets and life insurance go well together.

• However, a great concern is that almost half of all U.S. households have a life insurance need gap.² The best way to respond is to contact me and together we’ll review your family’s unique situation, needs and goals.

Every Family Needs a GuardianIt’s easy to protect your family for the long-term without taking a big bite out of your income.

One of the Best Gifts that Protects Your Family and Shows Your Love

Sample monthly premiums* for $1,000,000 coverage with 20-year and 30-year, fully-guaranteed Level Premium Term Life Insurance.

Contact Me to Learn More Now

Risk Class Age20 Year Term

Male ($)20 Year Term

Female ($)30 Year Term

Male ($)30 Year Term

Female ($)

Preferred Plus Non-Nicotine

30 35.24 29.67 60.20 48.63

40 56.03 44.28 102.75 81.35

50 147.73 104.57 257.61 188.27

Preferred Non-Nicotine

30 48.63 37.32 78.30 61.86

40 69.69 59.51 122.93 96.83

50 176.96 128.84 316.25 218.54

Standard Non-Nicotine

30 70.47 59.42 127.80 97.35

40 115.88 96.92 202.36 156.77

50 276.92 208.71 497.90 366.53

¹U.S. Life Insurance Ownership Study, LIMRA, 2016.*Your rate may differ based on health and underwriting. Monthly premiums are available only when using SBLI’s Automatic Premium Plan (APP). Other payment modes and face values are available. Products and features may not be available in all states. Policy Form Series #B-56. Approved for consumer use. The Savings Bank Mutual Life Insurance Company of Massachusetts, Woburn, MA. © 2017 All rights reserved. NAIC #70435. The Savings Bank Life Insurance Company of Massachusetts has become a mutual life insurance company and is making regulatory filings in all jurisdictions in which it is licensed to use its new legal name The Savings Bank Mutual Life Insurance Company of Massachusetts. States that have approved our new legal name can be found at www.sblibrokerage.com/mutual. 17-1014 10/17

You work hard for your future; it’s about time your future returned the favor. That’s where term life insurance can help protect and provide for your family from the unexpected in the future.

Thinking about the future leads to some important questions about today:

• Are you among the 48% of all U.S. households thathave a life insurance gap?¹

Did you know that even among the best-protected families,coverage adequacy has declined by 1.2 years since 2010?

• Is your family like the 71% of U.S. households that havekey financial priorities in addition to life insurance?¹

Did you know that most households need 5.25 years ofincome replacement through life insurance and/or savingsto respond to a disruptive event without sacrificing theirfamily’s quality of life?

• If your family has a life insurance gap, are you amongthe 45% of U.S. households that are “likely to buy”more protection this year?¹

Did you know that I can help you close your life insurancegap with an affordable solution? If you’re among the 37.5million households who do not own a policy, this is the timeto learn more.

Surprisingly Affordable Long-Term Protection You can cost-efficiently protect those you love for the long-term and give yourself the peace-of-mind you deserve.

Sample monthly premiums* for $1,000,000 of coverage with 30-year, fully-guaranteed Level Premium Term Life Insurance.

For More Information, Please Contact Me

Risk Class Age 30 Year Term Male ($)

30 Year Term Female ($)

Preferred Plus Non-Nicotine

35 69.69 58.55

45 162.08 123.84

50 257.61 188.27

Preferred Non-Nicotine

35 83.78 70.47

45 196.88 145.03

50 316.25 218.54

Standard Plus Non-Nicotine

35 118.23 93.00

45 271.35 191.57

50 434.83 299.54

Standard Non-Nicotine

35 141.72 114.23

45 323.90 233.94

50 497.90 366.53

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Pinney Insurance

Founded in 1972 as a Transamerica branch office and later incorporated as Pinney Insurance Center, Inc., we are headquartered in our own building in Roseville, California. We provide a small local agency feel with the power of a major national firm.

Pinney has expanded into a national distributor with thousands of contracted agents and offices in California, Illinois, Maryland, North Carolina, Oklahoma, Pennsylvania, Texas, Washington, and Mississippi. Pinney represents over 100 life, annuity, disability, and long-term care companies with the intent of providing our clients & partners with the best possible product solutions at the lowest possible costs. Email Brokerage Sales Support or contact one of our Brokerage Directors today at 800-823-4852.