Transforming Retirement Savings

May 2016

Problem: The State of U.S. Retirement Savings = Dismal

Headlines sound the alarm that saving for retirement in the United States is getting harder

75% of Americans arrive at retirement with less than $28,000 – in part due to divorce

31% of America’s full-time employed work force has no retirement savings or pension plan

Over a lifetime, hidden fees in 401ks can cost a median-income two-earner family nearly

nearly one-third of their investment returns, and divorce will blindside many, resulting in an

average loss of three-quarters of their total net worth.

Social Security will run a cumulative cash deficit of $2.8 trillion between now & 2034

People want alternatives

to the risk and limitations

embedded in defined

contribution plans

(401ks/IRAs)

Some employers are turning to Cash

Balance (Defined Benefit) Plans but they’re

expensive and hard to set up.

The insurance industry sells billions of dollars

of guaranteed payment products but they

require huge upfront investments and 75+%

of consumers don’t understand them.

• A new-to-the-world method of wealth creation &

preservation for married individuals

• Life insurance based, endowment-like product

• Available online in just a few clicks

• Starts at just $15 per month premium

• Deducted from monthly paycheck, credit card or bank

• Guaranteed benefit from $10K to $2MM (chosen by the

consumer) after 25 years

• Includes divorce insurance coverage that grows over time

Why it makes sense

• Almost half of the weddings which take place in the United

States each year will fail. Most within the first 8 years.

• Divorce reduces the average person's wealth by 77%.

• 44% of women go below the poverty line following divorce.

• The percentage of married persons who will reach their 25th

anniversary is only 33%. Moreover, second and third marriages

have a fewer than 1 out of 3 success rate.

• U.S. taxpayers foot an annual bill of over $112 BILLION dollars

in Federal, State and Local taxes to support fragmented families

every year.

• Equivalent investment return for insured is 5.7% compounded

over 25 years

Solution #1Marriage Assurance

What it is

Marriage Insurance Being Pitched in U.S., Canada

CBC | Posted: 4/30/2012 PM – Updated: 4/30/12 2:24 PM

QUICK POLL

Would you buy marriage insurance?

Yes, I think it’s a great idea

No, I think it’s ridiculous

Maybe, depending on the price

44.12%

24.51%

31.37%

Market AcceptanceMarriage Assurance

Insurance agents, financial planners and wealth

advisors love this product

LOIs from agencies across the US representing more

than 54,000 agents

So do large scale Employee Benefits providers like

Mercer, Aon and Watson Wyatt

So does our target audience!

Seven market acceptance studies consistently

showing 40+% responding “I would definitely buy it”,

plus 20-40% saying “maybe, if I knew more about it”.

Solution #2Personal Portable Pension Plan

The easiest way to save for retirement – a simple online

retirement savings product tied to the consumer, not a

company, with a great user experience purchased almost

instantly with complete clarity to the consumer.

• Available online in just a few clicks

• $25 minimum buy in / Patent Pending

• Deducted from monthly paycheck, credit card or bank

• Guaranteed lump sum or fixed income at desired retirement age

• Complexity free, single product focus, no confusing riders

• Captures some of the market gains but none of the market losses

How it worksWhat it is

Survey Monkey poll of more than 1000 adults age 18 – 50. 11 choices of unique

characteristics of 401ks, IRA, traditional annuities and the 4P.

Who chose the exact qualities of a 4P?

• 65.06% chose at least 2 of the characteristics that define a 4P

• 33.73% chose 4 or more qualities that define a 4P

• 20.48% of respondents chose five of five of the choices that described only those

characteristics of a 4P

Conclusion, given the choice, fully one-fifth of the adult population under 50,

employed full time, would call a 4P “an ideal retirement savings vehicle for me”

INDUSTRY PUNDITS LOVE OUR

“ That market [25-55 age group] is wide open.

If you guys capture the holy trinity of online

value [cost, convenience and transparency],

you will be uber successful.”

Jamie Cox, Managing Partner, Harris Financial Group

– Sought after annuity industry authority, recognized by Barron's,

Registered Rep Magazine and Virginia Business Journal as one

of the top independent financial advisors in the country.

Market AcceptancePersonal Portable Pension Plan

Question 8: If I could design the ideal retirement savings vehicle

for me, it would have (check all that apply):

Allianz Study – majority prefers safety over return

Prefer 8% RETURN with possibility of

losing value/vulnerable to market downturn

Prefer 4% RETURN that is guaranteed not to

lose value

24%

76%

Example from one of 3 company initiated independent studies

Who is the Target Market Who is the Target Market

Total # of Americans with Full-Time Jobs =121.41 Million*

30 million

With NO ACCESS to

company sponsored

retirement plans

11 millionWith access but

who choose NOTto participate

• Plus another 22+ million contract, temporary and part-time workers with no

access to retirement plans

* 70 million with access to company sponsored retirement plans – many looking for safe alternatives

59 million

With access and

actively participating

in their retirement

plans

PRIMARY TARGET SECONDARY TARGET

58.2 million

Already married with

no prenuptial

agreement

23.3 million

Previously

divorced one or

more times

44 million

Concerned

parents of

soon-to-be

marrieds

Unique and defensible

How do our products differ from others out there?

• No other company offers anything remotely similar to Marriage Assurance

• No insurance company offers annuities direct-to-consumers online. Only one

online aggregator exists (launched April 2016). Will help us sell!

• We’ll have a better (guaranteed) ROI. 5.7% for MA; Up to 9% for 4P

• No other Defined Benefit Plans can directly compete with 401k plans with such

low cost entry points. $15/month for MA; $25/week for 4P

• No other guaranteed insurance products are designed with living benefits

specifically for people who are just starting their careers and/or their retirement

savings plans.

Barriers to entry?

• IP – Our 4P is patent pending

• Legacy systems – D2C is a huge barrier to entry to existing life insurers,

especially in the annuity market. We’re as much a pioneer in this regard as

Esurance was to the auto insurance segment in 1999.

• “Reputational Risk” – Large insurers are not-so-secretly worried about

associating their brand with what they consider a controversial product.

• Perception of adverse selection risk – 100% of actuaries initially think a near

50% divorce rate equals unprofitability. After stress testing our model 100%

admit they were wrong.

Pilot program geography

and financial data

$000,000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Revenue $7.53 $21.28 $50.84 $111.25 $205.59 $334.54 $497.41

Reserves $6.04 $25.05 $66.25 $168.25 $361.74 $672.29 $1,129.70

Expenses $3.46 $6.17 $11.53 $22.08 $38.31 $59.82 $87.91

Net Income $0.25 $0.93 $3.55 $9.88 $22.13 $41.22 $68.99

PILOT STATES

EXPANSION IN 1ST YEAR

Alaska

Hawaii EXPANSION BY 3rd YEAR

The Team

Management Team Key Board Members

• CEO, SafeGuard Guaranty Corporation

• 33 years of New Product Dev, 14 in the

insurance industry

• 5 successful startups in 4 distinctly

different industries

John Logan | Founder & CEO

• 30+ years of C level experience in

banking and insurance

• VP, The First Bank of Chicago

• Co-founder, Swift Insurance Brokers

• CEO/CFO, CMA Insurance Holdings

Thomas Mayo | CFO

• 30+ years of C level experience in

insurance

• VP, MassMutual, Annuities Division

• VP, The Hartford, Agency Strategy,

eBusiness & Technology

Kenneth Fries | EVP Distribution

& Strategic Alliances

• 17+ years of C level multi-channel

marketing experience in both

digital & non-digital environments

• VP of Digital Marketing Strategy

for Harte Hanks

• Former life insurance agent

Sebastian Pistritto, VP of Marketing

• 30+ years of C level life insurance &

annuities experience

• President, Citicorp International

Insurance

• SVP, Citigroup (Marketing & Product

Development)

• VP, National Life of Vermont

Chad Masland | Director

• CEO, Traction and Scale LLC

• Co-founder, Kitara Media, public

rollup in digital advertising

• Co-founder, inSparq, leading social

commerce company

Richard Hecker | Director

The Opportunity

Raising $2,500,000

Preferred Shares

Use of Funds

$1,500,000 = Required Reserves and Surplus

to create the insurance underwriting entity

$1,000,000 = Operating Expenses

Estimated valuation

EOY 1 = $12,052,948

EOY 7 = $1,571,532,570

Thank you

John Logan, CEO | SafeGuard Guaranty Corporation

Direct: 919-745-0697

john.logan@safeguardguaranty.com

www.safeguardguaranty.com