MetLife Secure Flex Universal Life SM. Producer Guide. For Producer Use Only. Not Available for Public Distribution.

Transcription

1 MetLife Secure Flex Universal Life SM Producer Guide

2 MetLife understands your business. We respect your entrepreneurial spirit as you help guide clients toward financial freedom. We want to be your partner of choice as you grow your business the only way that matters, your way. Table of Contents Click on section title to jump to page. POLICY OVERVIEW General Description Availability... 1 Risk Classes and Issue Ages Face Amounts... 1 Face Amount Banding Death Benefit Proceeds... 2 Premium Modes... 2 Premium Types Policy Charges Interest Rates... 4 Cash Withdrawals... 4 Policy Loans Policy Surrender... 5 Maximum CCB Duration Age Processing Age 121 Processing... 5 Negative Cash Values... 5 Lapse Processing... 6 Policy Change... 6 BENEFITS & RIDERS Acceleration of Death Benefit Rider (ADBR) Coverage Continuation Benefit (CCB) Guaranteed Survivor Income Benefit (GSIB) Overloan Protection Rider (OPR)... 9 Waiver of Specified Premium (WSP)

3 Policy Overview GENERAL DESCRIPTION MetLife Secure Flex Universal Life (UL) is designed to provide long-term death benefit protection with the potential for cash value to accumulate on a tax-deferred basis. Product features: Built-in life expectancy secondary guarantee that can be extended up to age 90 1 Allows 1035 exchanges with carry-over loans Offers guaranteed and current crediting interest rates MetLife Ultimate Charge Guarantee SM At the end of the Coverage Continuation Benefit (CCB) maximum duration attained age (varies by issue age) current expense and cost of insurance charges will be guaranteed from that point forward MetLife Secure Flex Universal Life is issued by MetLife Investors USA Insurance Company in all jurisdictions except New York, where it is issued by Metropolitan Life Insurance Company (collectively referred to as the Company ). AVAILABILITY MetLife Secure Flex UL is available only on a fully underwritten basis. Unisex is available for any qualifying business cases, qualified plans and for all issues in Montana. Please check the current state availability list for the latest approval status of the base policy and policy riders. Term and Group Conversions Term conversions are allowed within the limits regarding age and amount of insurance. Additional benefits/riders may be included in the new policy with Company approval and may be subject to underwriting. The Coverage Continuation Benefit (CCB) will be automatically included at issue. This product is not available for group conversions. RISK CLASSES AND ISSUE AGES The issue age for the insured is based on the insured s age nearest birthday as of the policy date 2. Backdating the policy date to conserve age is allowed according to normal state guidelines, but can be no more than 180 days (state variations may apply) from the application signature date. The following risk classes and issue ages are available: Risk Class Permanent and temporary flat extras, or combinations of the two, are allowed on all risk classes and ages, except Elite. The maximum flat extra allowed for issue ages is $40 per $1,000. The maximum flat extra for issue ages 81+ is $10 per $1,000 (applicable only to face increases). FACE AMOUNTS Minimum: Issue Ages Elite Nonsmoker Preferred Nonsmoker and Smoker Standard Nonsmoker and Smoker Substandard Nonsmoker and Substandard Smoker Juvenile 0 17 Risk For qualified pension cases, the minimum face amount is $25,000. Maximum: Subject to normal underwriting guidelines. Face Amount Elite $250,000 Preferred $100,000 Other $50,000 1 No lapse guarantee period to age 90 is not available for all issue ages. Maximum no-lapse guarantee duration varies by issue age and will be shorter for younger issue ages. 2 Policy date is the date shown on the policy specifications page, which may differ from the date when the policy was actually issued (the issue date ). Policy date is used to measure issue age, policy years, policy months and anniversaries. Issue date is used to measure the suicide exclusion and incontestability periods. 3 Rated Classes B, C and D only available for Face Increases for ages

4 Face Amount Banding There are five distinct insurance band amounts: Band DEATH BENEFIT OPTIONS Two death benefit options 4 are available: Option A (Level), which provides for the level face amount. Option B (Variable), which provides for a death benefit equal to the level face amount plus the current cash value. DEATH BENEFIT PROCEEDS At the death of the insured, the policy proceeds payable are: The policy face amount; plus Any increased amount associated with Death Benefit Option B; plus The death benefit provided by any riders; plus Increase in death benefit due to IRC corridor requirements; plus Premium payments received after death; plus The cost of insurance from the date of death to the end of that policy month; minus Any amount due and unpaid as of the date of death; minus Any loan and accrued loan interest as of the date of death. PREMIUM MODES The following modal premiums are available: Annual Semi-Annual Quarterly Face Amount of Insurance 1 $50,000-$99,999 (min. $25,000 for qualified pension cases) 2 $100,000-$249,999 3 $250,000-$499,999 4 $500,000-$999,999 5 $1,000,000 and above Monthly (Electronic Payment, Government Allotment, List Bill, and Salary Savings) PREMIUM TYPES The policy allows for flexible premiums. Clients have the option of changing the amount and timing of their payments. However, any premium change will affect the duration of the CCB-based no-lapse guarantee, if active. Therefore, it is strongly suggested that clients make ongoing payments of at least the minimum CCB premium. In-force illustrations should be reviewed to understand the impact of premium changes before they are made. CCB Minimum Monthly First-Year Premium This is the monthly cumulative premium that is required to keep the CCB in force for the first policy year. If, on any monthly anniversary during the first policy year, the cumulative CCB minimum monthly first-year premium is not met, the CCB will lapse. If the policy has insufficient value to cover the charges, the base policy will also lapse. If the policy is backdated to conserve age, the premium paid must be sufficient to bring the policy up to the current date. If a premium payment is made with the application, the minimum amount the Company will accept is the CCB minimum monthly first-year premium. This premium does not provide a guarantee to the CCB Termination Date, but if paid continuously the policy will remain in force as described below: Issue Age CCB Minimum Monthly First-Year Premium (Paid All-Years) 0-40 Through greater of insured s attained age 69 or policy year Through greater of (insured s attained age varies by issue age) or policy year Through greater of insured s attained age 79 or policy year 10 Planned Modal Premium The amount of money the policy owner states that he/she will pay on a stated modal basis for a stated period of time (planned years to pay). The planned modal premium is shown on the policy specifications page. Planned First-Year Lump Sum This is a scheduled lump sum payment. Receipt of this lump sum is planned to occur within 12 months of the policy date. It includes any 1035 exchange money expected within the first 12 months of the policy date. 4 In either case, in order for the policy to qualify as life insurance an IRC minimum death benefit applies. 2

5 Target Premium Target premium is used for the purpose of commission calculation and premium loads. It does not assure that the policy will remain in force. The rates are per thousand of face and vary by issue age, sex, smoking status, risk class and band. Targets are not increased for flat extras (temporary or permanent). Target is recalculated on any face decrease. For face increases, the target on the base policy is only recalculated in year one. After year one, a face increase would add a new segment to the base policy and the target would in effect increase even though it has not been recalculated on the base portion of the policy. Target premiums for rated cases are capped at Table D. In addition to the base policy, the following policy riders have their own commissionable target premiums: Waiver of Specified Premium (WSP) Guaranteed Survivor Income Benefit (GSIB) Any other riders do not have commissionable target premiums. Seven-Pay Premiums Section 7702 of the IRC seven-year guideline specifies cumulative yearly premium maximums to avoid Modified Endowment Contract (MEC) status. Violation of these maximums results in tax implications to the policy owner for withdrawals and loans made from the cash value and general policy assignments. The policy owner has 60 days from the end of the policy year to reverse any premiums made in excess of the seven-pay guideline in that policy year. The Company will immediately notify the policy owner whenever a premium is paid that exceeds these maximums. Note: Adding or deleting riders or other policy changes can have an effect on MEC test. Definition of Life Insurance Both the Cash Value Accumulation Test (CVAT) and the Guideline Premium Test (GPT) are available. Owners must select which test they prefer at issue. Once selected, the definition of life insurance test cannot be changed With Guideline Premium Test Compliance with the guideline premium limits are required to ensure that the policy qualifies as life insurance. On any date, the total premium paid cannot exceed the greater of the guideline single premium and the sum of the guideline level premiums paid to such date. Contractually, the premiums are limited so that they do not exceed the guidelines under IRC Section The annual report to the policy owner reflects the current premium limitations and the maximum premium payments allowable in the upcoming year. Note: Adding or deleting certain riders and other policy changes can affect or cause the recalculation of the guideline premiums. With Cash Value Accumulation Test This test must be met in order for the policy to be classified as life insurance. While the cash value accumulation test only has a death benefit test, the first-year maximum premium will equal the net single premium grossed-up for the percent of premium charge. The terms of the policy will ensure that it does not fail this test and will maintain the definition of life insurance as defined in the IRC. POLICY CHARGES Premium Load The premium load charge is a percentage of each premium payment and is deducted from all premium payments. It is intended to cover a sales load and state premium taxes. The remaining premium goes into the policy s cash value. On a current basis it equals 5% of premium up to target and 10% of premium in excess of target. The guaranteed maximum premium load is 15% of premium through the maximum CCB duration attained age or year and 5% thereafter up to target and 20% of premium through the maximum CCB duration attained age or year and 10% thereafter in excess of target. Monthly Policy Fee The policy fee is $10 per month or $120 annually. This fee is deducted from the cash value each month. Monthly Coverage Expense Charge A coverage expense charge is deducted from the cash value each month. The rates are an amount per thousand of face and vary by duration (some states exclude duration as a differentiator), issue age, sex, band, smoking status, death benefit option and underwriting class. There are guaranteed maximum coverage expense charges but current charges may be lower. Current monthly coverage expense charges are guaranteed beginning the year after the maximum CCB duration attained age or year. Cost of Insurance Charge A Cost of Insurance (COI) charge is deducted from the cash value each month. Current insurance rates are used to calculate the current COI charge according to the amount of pure insurance (net amount at risk) in the policy. Unisex rates use the 80% male/20% female blended COI rates for each life. 3

6 The guaranteed COI rates vary by sex, risk classification, attained age and time the segment was in force. Current COI rates are guaranteed beginning the year after the maximum CCB duration attained age or year. INTEREST RATES Guaranteed Interest-Crediting Rate The guaranteed minimum interest-crediting rate on the policy cash value is 2% for the life of the policy. Current Interest-Crediting Rate This rate is based upon a portfolio-crediting method determined by investment returns that are reviewed on a quarterly basis. Current interest rates cannot be changed more frequently than quarterly. CASH WITHDRAWALS After the first policy anniversary, cash withdrawals are available on any monthly anniversary from the net cash surrender value. The net cash surrender value equals gross cash value less any applicable surrender charges and any existing policy indebtedness. Any withdrawals will have a negative impact on the duration of the no-lapse death benefit guarantee. Withdrawals reduce the face amount dollar-fordollar for policies with Death Benefit Option A. For policies with Death Benefit Option B, the death benefit is reduced by the amount of the withdrawal, but the face amount does not decrease. Cash withdrawals will decrease the cash value. The minimum partial withdrawal amount is $100. The policy owner may withdraw the greater of: 90% of the policy s cash surrender value as of the beginning of the policy year; and Last year s maximum allowable withdrawal amount. Currently, up to 12 withdrawals per policy year are allowed without any charge. The Company reserves the right to charge an administrative fee for any withdrawals and to change the maximum number of withdrawals allowed during a policy year. The maximum amount the Company will ever charge for a partial withdrawal is $25 per withdrawal event. Any withdrawal that causes a reduction in the policy face amount will have any applicable surrender charge assessed for that portion of the reduction only during the surrender charge period. POLICY LOANS Loans can be taken out at any time after issue, provided there is an available loan value. Loans will have a negative impact on the no-lapse guarantee and could cause the policy to lapse. Policy loans will decrease the cash value and death benefit. Basic Policy Loan Rules There is no minimum loan requirement. The maximum amount available for a loan is: 100% of the current cash value, as of the loan date; minus Any applicable surrender charges that would apply; minus The last monthly deduction times the number of months until the next policy anniversary; minus Loan interest due until the next anniversary; minus Any outstanding loan balance, as of the loan date; plus Credited interest on the cash value to the next policy anniversary. When a loan is taken, an amount equal to the loan is transferred from the policy cash value to a loan account. Any policy s borrowed cash value is credited with the fixed guaranteed loan account crediting rate of 2%. The total amount of the loan, including accrued interest and less any surrender charges, must not exceed the policy s cash value in order for the policy to remain in force. Notification will be sent to the policy owner and any assignee indicating the amount of loan repayment needed to keep the policy in force. There is a 62-day grace period in the policy. By administrative practice, after the first policy anniversary, there is a 62-day grace period for the CCB followed by a 62-day grace period for the base policy. If the amount due remains unpaid at the end of that grace period, the policy will lapse without value. Loan Interest Rate Loan interest (payable in arrears) is compounded daily, and is payable on each policy anniversary. Any loan interest that is not paid when due is added to the existing loan and begins to accrue loan interest as well exchanges from policies with loan balances to MetLife Secure Flex UL are allowed. The maximum loan allowed is 50% of the gross cash value of the exchanged policy. A non-guaranteed preferred loan rate of 2.5% applies in the first 15 years for loans rolled over 4

7 with a 1035 exchange (there is no preferred loan rate in New York). Any new interest associated with the carry-over loan will accrue interest at the preferred rate. Years Current Loan Interest Rate * On a guaranteed basis, the maximum loan interest rate is 5% in years 1-20 and 4% in years 21+. Rate4 Loan Repayment Payment received by the Company must be designated for loan repayment or else it will be credited as policy premium. Payments designated as loan repayments will be processed in this order: 1. Nonpreferred loan interest 2. Preferred loan interest 3. Nonpreferred loan repayment 4. Preferred loan repayment POLICY SURRENDER Loan Crediting Rate Net Loan Cost % 2.00% 1.00% 1-15 (Preferred) 2.50% 2.00% 0.50% % 2.00% 0.50% % 2.00% 0.35% MetLife Secure Flex UL may be surrendered for its cash surrender value at any time. If the surrender occurs on or within 31 days after the policy anniversary date, the cash surrender value will be at least equal to the cash surrender value on the anniversary, less any loans or partial withdrawals taken during that period. Surrender Charges The surrender charge is a per-thousand of base policy face amount charge and applies for the first 15 years after the policy date. The charge is level for the first policy year, then decreases each month over the next 14 years until reaching zero at the end of the fifteenth year. No additional surrender charges apply to death benefits in excess of the face amount associated with Death Benefit Option B or any riders. Surrender charges differ based on issue age, sex, underwriting class, band, duration and smoker status. The surrender charge applies to full surrenders, partial withdrawals that decrease the face amount, a change in Death Benefit Option that reduces the policy face amount and upon a requested face amount decrease. Each underwritten face increase will have its own surrender charge period. If a surrender occurs within the first 12 months of the policy, or within the first 12 months following an increase in coverage, the remaining balance of the first-year monthly coverage expense charges will be taken out of the policy cash value. MAXIMUM CCB DURATION AGE PROCESSING At the policy anniversary on which the insured reaches the maximum CCB duration attained age (based on issue age), the CCB will terminate (assuming it was still active at the time). Upon termination of the CCB, the policy will remain in force contingent on there being sufficient cash surrender value to deduct the monthly deductions on each monthly deduction due date. AGE 121 PROCESSING Policy Charges No policy charges or surrender charges will be taken out of the policy s cash value on and after the policy anniversary at attained age 121. Payments Payments are accepted if they are required under a grace period due to an excess loan. Loans New and increased loans, as well as loan repayments and payment of loan interest are allowed. Policy loan interest will continue to accrue and be due each anniversary beyond attained age 121. Extension of Maturity Provision The extension of maturity provision is automatically included on all cases. This provision will provide, subject to any applicable state variations, the continuation of a policy s face amount beyond maturity (the policy anniversary at attained age 121), provided the policy remains in force to attained age 121. There is no charge for this provision. The death benefit at attained age 121 will be the greater of: The face amount of the base policy plus the additional amount of coverage provided by any rider in force at maturity; and 101% of the cash value. * Current as of August 18, Subject to state variations. 5

8 LAPSE PROCESSING Each month a check will be conducted to see if there is enough net cash surrender value to pay the monthly deductions. If the cash surrender value is not sufficient and the CCB is not in effect, then the policy will enter the 62-day grace period. To make the policy current, the customer must pay at least the lesser of: 1. The amount necessary to restore the CCB (if applicable); or 2. The amount needed to restore a positive cash surrender value. Notification of grace period and lapse is mailed to the policy owner, any assignee(s) and the servicing producer. POLICY CHANGE Face Amount Changes The policy owner can increase or decrease the policy face amount. However, face increase will be subject to underwriting. Face amount changes will have an impact on the CCB-based no-lapse death benefit guarantee and the lengths of the current projected death benefit and cash value. Increases in Face Amount A policy owner may increase the face amount at any time. Each face increase has its own target premium and its own surrender charge and is based on attained age and current risk class. Any increase in face amount is subject to the following conditions: 1. Proof of insurability for the increased coverage. 2. The increase will be effective on the policy s monthly anniversary date that follows our approval of the increase. 3. The increase must be at least $5, The insured cannot be older than attained age 85 on the date of the request. Decreases in Face Amount A policy owner may decrease the policy face amount any time after the first policy year. Decreases will be effective on the next month s anniversary. For any decrease request in the first year following a requested face increase, the proportionate unpaid monthly coverage expense charges for the remainder of the 12-month period will be deducted from the policy cash value. Any decrease in face amount is subject to the following conditions: 1. Minimum allowed face amount decrease is $5, The base policy face amount cannot be reduced below the minimum of $50,000 ($25,000 in pension cases). 3. Surrender charges assessed, if applicable. Unless requested in writing, a face decrease would be processed in the following order: 1. Previous underwritten increases, starting with the most recent increase; 2. The face amount of the original base policy, then any face amount acquired from the death benefit option change. Death Benefit Option Changes Death Benefit Option (DBO) changes are allowed after the first policy anniversary until maturity. The effective date is the prior monthly anniversary unless approved on the monthly anniversary date (which would make the change effective on that date). The net amount at risk must remain the same after the DBO change is exercised, which will result in a face amount adjustment. The Company reserves the right to require underwriting for death benefit option changes. Change from Option A to Option B If the policy is changed from DBO A to DBO B, then the policy face amount is decreased by the amount of cash value. This decrease will incur a surrender charge if applicable and cannot reduce the policy face amount below the minimum of $50,000 ($25,000 for pension cases). Change from Option B to Option A If the policy is changed from DBO B to DBO A, then the policy face amount is increased by the current policy cash value amount to equal the previous death benefit on the effective date of the change. BENEFITS AND RIDERS 5 ACCELERATION OF DEATH BENEFIT RIDER (ADBR) General Description The Acceleration of Death Benefit Rider provides for a discounted payment of all or a portion of the amount that would normally be paid to the beneficiaries upon the death 6

9 of the insured under the base policy. Such payment will be made once a physician certifies that the insured has been determined to be terminally ill with 12 months (24 months in some states) or less to live. The payment under this rider will be made to the policy owner(s). Availability This rider is available to all issue ages and risk classes. It is also available after issue. This rider may only be exercised once. Rider Charges There is no charge for this rider until exercised. Amount Available for Acceleration of Death Benefit The minimum amount that can be requested is $20,000. The maximum amount that can be requested is the greater of $250,000 or 10% of the total eligible death benefit. However, in situations where the eligible death benefit is between $250,000 and $275,000, the policy owner may elect to accelerate the full amount. If less than the full amount is requested, a death benefit of at least $50,000 must remain in the policy. Minimums and maximums are subject to state law. If less than the full amount is requested, all future policy values, charges and premiums will be reduced to reflect the lower coverage. COVERAGE CONTINUATION BENEFIT (CCB) General Description The Coverage Continuation Benefit (CCB) guarantees that the policy will remain in force even if the policy s cash surrender value is insufficient to pay monthly policy deductions, subject to the conditions and limitations of the Benefit. Any riders attached to the policy would also remain in force subject to that specific rider s rules. The CCB does not guarantee the policy s cash value. If the policy s cash value becomes negative while the CCB is in effect, the monthly deductions will be accumulated without interest. Although this accumulated amount will have no effect on the death benefit or policy proceeds, it must be repaid before any cash value can develop under the policy. If the CCB is not in effect, the policy will not lapse as long as the cash surrender value is sufficient to pay the monthly deductions when due. Availability This benefit is automatically part of every policy. The client can elect a CCB termination date up to maximum CCB duration attained age available by issue age as described below: Provisions to Keep CCB In Effect Issue Age 0-40 Age 80 Maximum CCB Duration Varies by issue age 51+ Age 90 Coverage Continuation Value To determine the status of the CCB, a secondary account, called Coverage Continuation Value (CCV), is established. This monitoring account is not accessible to the client and is only used to monitor the CCB status. All charges associated with the CCV are guaranteed, as is the interest-crediting rate. Guarantee Status The CCB will provide the policy s no-lapse death benefit guarantee up to the CCB termination date as long as all the following conditions are met: The required cumulative minimum monthly first-year CCB premiums are paid; and The CCV balance is greater than zero; and The CCV balance is greater than the current loan balance on the policy; and Policy loan balance is less than the death benefit. Projecting the Duration of the CCB Guarantee An annual report will be sent to policy owners that will reflect the projection of how long the CCB death benefit guarantee will last into the future, based on planned premium amounts. Any policy or premium changes, withdrawals or loans that were not accounted for at the time when the no-lapse premium was calculated will also affect the duration of the no-lapse guarantee. Therefore, it is the best practice to run an in-force illustration to fully understand impact of any policy changes. Premium Timing Protection Late payments or changes in the amount paid will affect the CCB guarantee duration and may even lead to CCB lapse. Because of MetLife Secure Flex Universal Life s pricing features, as long as the required cumulative minimum 5 Not all riders are available in all states, and state variations apply. If rider is added to an in force policy on a monthly anniversary, the effective date of the change and charges will be that monthly anniversary. If processed off-monthly anniversary, the effective date will be the prior monthly anniversary, however, the charges will not be effective until the following monthly anniversary. 7

10 monthly first-year CCB premiums are paid, lump sum, 1035, and any other additional payments can be made at any time during the first year, and will be credited as if received on the first day of that year. The 30-Day Renewal Guarantee Grace Period provides a 30-day window where any premium coming into the policy will be credited as if received on time for CCV purpose only. This feature is not contractual and is handled administratively. CCB Lapse Processing 62-Day Grace Period If CCV goes to zero, or other conditions are not met, a grace period notice will be generated alerting the policy owner, with a copy to any assignee and the servicing producer, that the CCB guarantee will lapse unless premium amounts needed to restore the CCB are received 62 days from the monthly anniversary date of the CCB conditions not being met. Nine-Month Reactivation Starting in year two, if the requested premiums are not received within 62 days of the first notice, a second notice will be generated to alert the policy owner of the lapse with a copy sent to any assignee and the servicing producer. In addition, the policy owner will be notified of the reactivation period (nine months from the end of the rider grace period). All premiums necessary to maintain the death benefit guarantee will need to be applied in order to reinstate the CCB. If no necessary action is taken before the expiration of the reactivation period, then the CCB will lapse. Once the CCB is lapsed, it cannot be reinstated. Termination The CCB will terminate on the anniversary when the insured becomes Attained Age that the policy owner has selected, up to maximum CCB duration available. Immediately following the policy anniversary of the age selected, coverage can continue only if the net cash surrender value remains positive. Therefore, premiums must be made to cover all policy charges and fees. At the end of the maximum CCB duration available, current expense and cost of insurance charges are guaranteed with the MetLife Ultimate Charge Guarantee. GUARANTEED SURVIVOR INCOME BENEFIT (GSIB) General Description This rider gives the beneficiaries the option to receive the policy proceeds in the form of an enhanced monthly income in lieu of lump sum death benefit proceeds. Availability This rider is available only at issue; it cannot be added to an in-force policy. Issue age must be between ages 20-70; there is no age limit for the beneficiary. The base policy rating may not exceed Table F, and GSIB is not available on cases with a flat extra. The base policy face amount must be a minimum of $100,000 in order to add this rider. The maximum amount of the rider is the lesser of two times the base policy face amount and $5,000,000. If a policy base face amount is greater than $5,000,000, the GSIB maximum is $5,000,000. Rider Charges Monthly charge per $1,000 of eligible death benefit, as defined in the rider, applies, up to the maximum allowable death benefit. This charge is payable as long as the rider is in force up to Attained Age 100. Charges vary by band, the insured s sex, issue age, rating class and smoker status. GSIB Benefits At the insured s death, the beneficiaries will have the choice to exercise the GSIB rider. Each beneficiary can elect his or her own GSIB payout option. The GSIB payout can be applied to all or a portion of the death benefit at the death of the insured. Payments are monthly only. A payment option is available only if it produces a monthly benefit payment of at least $50. Regardless of the number of beneficiaries, the maximum portion of the death benefit that can be eligible for the GSIB benefit is the lesser of $5,000,000 or two times the original face amount. GSIB features both the guaranteed and current payment rates. The actual rates used for payouts will be the higher of: 1. Enhanced guaranteed GSIB payout rates as specified in the rider; or % of the current life settlement option payouts at the time of GSIB exercise. The GSIB payout option must be elected by each beneficiary within nine months of the insured s death or 60 days after Company notification, whichever is later. 8

11 Payment Options The following settlement options are available through the GSIB: year certain 6 2. Life only 3. Life with 10-year, 15-year or 20-year certain 4. Life only with 1%, 2% or 3% escalation feature 5. Life with 10-year certain and 1%, 2% or 3% escalation feature The beneficiary can choose multiple options for portions of the death benefit. Once the GSIB payout option is elected, the payment stream may not be assigned to any other individual or entity. If a beneficiary dies within 30 days after the option date, the amount applied to the enhanced option, less any payments made, will be paid in one sum. OVERLOAN PROTECTION RIDER (OPR) General Description The Overloan Protection Rider is designed to prevent a policy from lapsing due to indebtedness and potentially avoiding any tax consequences that may result from a policy lapse with loans, by providing a guaranteed paid up insurance benefit. Availability This rider will be automatically included on all eligible policies that have chosen the Guideline Premium Test. The rider is only available to issue ages This rider is not available in the qualified market. This rider is not available on policies with the Cash Value Accumulation Test. Rider Charges There is a one-time charge assessed when the rider is exercised. The charge is 3.5% of the cash value including the amount of the loan. If the rider is exercised after age 100, the charge will be waived. If the rider is never exercised, no charges will be assessed. Requirements to Exercise 1. The policy must be in force for at least 15 years. 2. Insured must be at least age The policy debt must be greater than 95% of the cash value, but not more than 99.5% of the cash value after the OPR charge is taken. 4. The debt is greater than the face amount. 5. The DBO must be either Option A. If it is Option B it will be automatically changed to Option A. 6. The entire cost basis must have been withdrawn. 7. The cash value must be sufficient to cover the rider charge. 8. The policy cannot be a Modified Endowment Contract. The client will be notified and given a 30-day window to inform MetLife that they wish to exercise this rider. Only one notice will be sent. Post-Exercise: Net death benefit equals the corridor factor times policy cash value minus loans. All riders will be cancelled and no future benefits from them will be available. Policy charges will no longer be deducted. No additional premium payments can be accepted. No partial surrenders can be made. No additional loans can be taken. The current loan balance will remain on the policy and affect the cash surrender value and the death benefit. No policy changes are allowed. Interest charged on indebtedness will continue to accrue and will be due on each policy anniversary. Loan repayments can be made at any time. Deactivation After the rider has been exercised, it can be deactivated if requested in writing. Monthly deductions will resume beginning on the monthly anniversary after the date of deactivation and policy restrictions due to exercising this rider will no longer apply. Riders may not be added to the Policy after OPR has been deactivated. Termination This rider can only terminate if the base policy terminates. The OPR can be terminated upon the request of the policy owner. WAIVER OF SPECIFIED PREMIUM RIDER (WSP) General Description This rider allows the policy owner to select a specified monthly benefit which is credited as monthly policy premium if the insured becomes totally disabled before the policy 6 The only option available to a non-natural person beneficiary (e.g., a corporation) is the 10-year certain payout unless a trust is named with a single natural person beneficiary. If the beneficiary is changed from a natural person to a non-natural person, the only payment option to be available to the non-natural person will be the 10-year certain payout unless such trust is named with a single natural person as the beneficiary. 9

12 anniversary at Attained Age 65. WSP does not have to equal the planned premium and is not guaranteed to keep the policy in force, so be sure to carefully choose the appropriate amount of premium when illustrating WSP. Availability This rider can be added to the policy up to issue age 60. The policy owner can add this rider at issue or on any monthly anniversary after issue, subject to underwriting approval. The maximum face amount for the rider is $5,000,000. For insureds under the age of 15 it is less (including all coverage in force with us and other companies for issue ages 15-60). If the base coverage has a table rating (D through F), then the maximum face amount equals $500,000. This rider is not available for pension plans. Risk Classes and Underwriting WSP is not available if the base coverage has a table rating greater than F (150%) or a flat extra in excess of $10 per thousand. There is no distinction between males and females in underwriting rules and premiums for this benefit. The WSP rider is rated separately from the base plan. The available rating for WSP can be 100%, 150%, 200%, 250% or 300% of the standard WSP rating. Rider Charges The charge for this rider is based on the insured s Attained Age. The rates are expressed as an amount per $100 of specified amount. WSP Amount Limits The minimum WSP benefit is the policy minimum monthly premium to issue but never less than $10. The maximum monthly benefit equals 1/12 of the base policy guideline annual premium without any riders. 7 Changes in WSP Benefits Coverage under this rider can be increased, subject to underwriting rules, only if the face amount of the policy is increased and the insured is not totally disabled. A decrease can be requested at any time. Rider Benefits Disability Beginning Before Age 60 If the insured s total disability (as defined by the rider) begins before age 60 but after age 5, the Company will credit the monthly premiums waived that were due during the six months of uninterrupted disability. Subsequently, the Company will continue to credit the monthly premiums waived as long as the insured remains totally disabled. Disability Beginning Between Ages 60 and 65 If the insured s total disability (as defined by the rider) begins between ages 60 and 65, the Company will credit the monthly premiums waived that were due during the six months of uninterrupted disability. Subsequently, the Company will continue to credit the monthly premiums waived as long as the insured remains totally disabled, until the insured is 65. All monthly policy charges continue to be deducted during disability, including the charges for WSP. Definition of Total Disability The Company will consider the insured totally disabled if he or she is unable to perform the substantial and material duties of his or her regular occupation because of accidental bodily injury or sickness first manifesting itself after the issue date of the rider. However, after such a period of total disability has continued for 60 months, the Company will consider the insured to be totally disabled only if he or she is unable to perform the substantial and material duties of any occupation for which he or she is reasonably fitted by education, training or experience. The Company will consider the total and irrecoverable loss of the sight in both eyes, the use of both hands or both feet, or the use of one hand and one foot as a total disability, even if the insured is working at an occupation. Recurrent Total Disability If a subsequent period of total disability commences after a prior period of total disability has ended, the Company will consider the subsequent period to be a continuation of the previous period unless: It is due to an entirely different cause; or The insured has performed all of the material and substantial duties of a gainful occupation for a continuous period of six months or more between such periods of total disability. If the Company considers the second period of disability as a continuation of the first, the six-month waiting period will not apply. Termination The rider will terminate on the first of the following events to occur: when the insured reaches attained age 65; the lapse or surrender of the policy; the date of an increase in the face amount of the policy that does not qualify for an increase in coverage under the rider. 6 The only option available to a non-natural person beneficiary (e.g., a corporation) is the 10-year certain payout unless a trust is named with a single natural person beneficiary. If the beneficiary is changed from a natural person to a non-natural person, the only payment option to be available to the non-natural person will be the 10-year certain payout unless such trust is named with a single natural person beneficiary. 7 This amount cannot be exceeded. If the face amount of the policy is decreased, the WSP amount may also need to be decreased to comply. Rider coverage could be reduced to adhere to the above guidelines. 10

13 Please Note: MetLife Investors USA Insurance Company and Metropolitan Life Insurance Company have designed this document to provide introductory information on the subject matter. State variations apply. Certain riders may not be available in all states. Descriptions herein are incomplete for a full explanation of the terms and exclusions, please refer to the policy and the riders. Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. Your clients should seek advice based on their particular circumstances from an independent tax advisor. MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. Your clients should consult with and rely on their own independent legal and tax advisors regarding their particular set of facts and circumstances. Life insurance is medically underwritten. Clients should not cancel their current coverage until their new coverage is in force. Surrender charges may be due on an exchange of one contract for another. A change in policy may require a medical examination. Surrenders may be taxable. Clients should consult their own tax advisors regarding tax liability on surrenders. MetLife Secure Flex Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E and in New York only by Metropolitan Life Insurance Company on Policy Form 1E NY. All product guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company. Life Insurance Products: Not A Deposit Not FDIC Insured Not Insured By Any Federal Government Agency Not Guaranteed By Any Bank Or Credit Union May Go Down In Value Metropolitan Life Insurance Company 200 Park Avenue New York, NY MetLife Investors USA Insurance Company North Community House Road Charlotte, NC metlife.com BDUL23865 L [1114] 2014 METLIFE, INC. PEANUTS 2014 Peanuts Worldwide