A Special Publication for CENCO Related Agents. Beneficiary Reviews May Help Increase Sales

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1 A Special Publication for CENCO Related Agents CENCO STREET JOURNAL Check Out The Cenco Website: You will have access to: Quotes Forms Introduc on Kits for Our Core Carriers Archived and current issues of the Cenco Street Journal and the Cenco enews Inside this issue: Volume 18, Issue 2 Beneficiary Review Sales Strategy Beneficiary Reviews May Help Increase Sales February 2018 Mistakes made when designating beneficiaries can be costly for your client, impairing their ability to protect, preserve and pass on assets to their loved ones. A beneficiary review is an opportunity to help your client match current beneficiary designations with their desired disposition of assets, answering such questions as: Are all assets going to the desired persons in the desired manner? Have all contingencies been considered and covered? Your role is to simply make your clients aware of their current disposition plan and help them determine if their disposition plan meets their goals, and, when appropriate, referring them to other professional advisors. Uncover New Sales Review Individual Federal Tax Returns to Boost Your Sales Educating Your Clients Will Improve Your DI Sales 2 3 A beneficiary review is a good way to strengthen client relationships. The loyalty that can be built by providing such a valuable service may help you generate more referrals and develop relationships with beneficiaries. The process of collecting data during a review may also help you identify insurance shortcomings, and, in many cases, point to the need for a more detailed and separate insurance review. A beneficiary review may help identify ways to: Maximize estate value Uncover potential rollovers Retain and consolidate assets The Client Beneficiary Review Worksheet helps aid in the process. Contact Cenco for more information.

2 Page 2 A Special Publication for CENCO Related Agents Review Individual Federal Tax Returns to Boost Sales How many of you have studied federal income tax returns? If you re not asking for copies of tax returns to analyze, then one of your competitors probably is. But it won t do any good to start doing this if you don t know what to look for. The first place to start in the examination of an individual tax return is the Form W-2 (wage and tax statement). First, see if there is a difference between line one (wages, tips, other compensation) and line three (Social Security wages). If so, this difference indicates that a person could be a participant in a 401(k) plan, a 403(b) plan or a Section 125 plan. The same section of the W-2 indicates the taxable portion of group term life insurance in excess of $50,000. The premium attributable to the first $50,000 of group term insurance is tax-free. This information is important because it raises several questions: Is there a need for additional individual owned life insurance coverage? Is the client s employer a prospect for group and individual life insurance coverage? Could you position yourself to review the employer s existing employee benefit plans? In addition to the W-2, the Form 1040 must also be assessed in order to provide clients with the highest level of service. When engaged in any type of financial planning you must always request that clients provide copies of tax returns from the last 2 to 3 years so that you can establish a thorough financial plan. When reviewing the Form 1040 begin by evaluating the tax rate schedules for each filing status, which highlights the difference between marginal and real tax brackets. Remember that taxpayers do not pay taxes on their income at marginal tax rates. Instead, income taxes are paid based upon average tax rates. Also, on the form 1040 is a section where dependent children of any age are listed. Addressing this section with your clients or prospects is sure to open up some important discussions and create a natural sales opportunity. Several questions should be asked at this point: Are you planning to set up a fund for your children s future education? What happens to your children if you should die or become disabled permanently? Are there dependents that do not live with you due to divorce or separation? If so, where do these dependents live and who is responsible for their care? If you have never reviewed their tax returns, then you probably don t know everything about your clients from a financial standpoint. But if you will take the time and make the effort, you can uncover many sales opportunities, create the trust necessary for long-term relationships and become an expert at uncovering problems and needs that will make you all the more valuable.

3 Volume 18, Issue 2 Educating Your Clients Will Improve Your DI Sales No matter the insurance product, the more your clients are familiar with, the more they will be comfortable with completing an application, relinquishing their precious time to an underwriting process and ultimately choosing to spend money on some sort of prescribed financial protection. Page 3 Nothing can be truer when regarding disability insurance, as there is a common precept that DI coverage does not sell itself. This is true only because of a general lack of education and communication between advisor and client. Additional guidance and tutelage will tend to increase the connection between you and your clientele, leading to a greater understanding of the value and need for the insurance products with which you make your livelihood. As an insurance professional, you employ sales pitches to spark interest in prospective clients. You have honed your craft and skills for years, and after initially speaking with a prospect, you can recognize that person s acceptance to your pitch and the likelihood of a sale. Considering more publicly familiar lines of insurance like car insurance, health insurance, and homeowner s insurance, these products and their benefits easily sell themselves and are requisites of most Americans. Even life insurance is a common commodity and an easier sale to many with families and some level of disposable income. But disability insurance is a different animal, and your usual pitch may not be as effective. The biggest roadblock to a DI sale is in fact the prejudice of the client. Most of us believe we are indestructible or at least impervious to long-term disablement. We know we will suffer injuries and illnesses throughout our lives, but we can t imagine them standing in the way of our ability to make a living. A profound lack of acceptance and realization of our own morbidity is a commonality found along the entire age spectrum of working Americans. Many of us, not just the young Millennial generation, are delusional and clearly unaware of the unforeseen chances of becoming sick or injured, unable to make a living. Another hurdle for the DI salesperson is the product itself. Disability insurance jargon and policy structure can be quite confusing to those outside the industry and even to those with a fair knowledge of the life and health insurance world. Additionally, the multitude of policy riders available and benefit options offer added value, yet detract from the ease of understanding and overall salability to the average consumer. So how do you make DI coverage more attractive to your clients? You go the extra mile, you take the extra step and you spend a little more time. Set aside your usual sales pitch and educate your client. Openly communicate to them that, as an employed person, disability income insurance is the most important insurance product available for their financial future and for the protection of their family. Relate that their greatest asset, their income, is not properly insured, and you intend to fix that problem. Don t let a brochure or a policy specimen do all the talking. Insurance companies don t know your clients. Only you know your clients. Provide personal insight, and believe in what you are selling - your client will too. It is imperative to pass on your knowledge of income protection, because a little education is the key to understanding and appreciating disability income insurance.

4 CENCO INSURANCE MARKETING CORPORATION 1501 El Camino Ave., Suite 1 Sacramento, CA Phone: (916) (800) 45-CENCO Fax: (916) See How The QoL Value+ Protector Short Pays and Level Pays Stack Up! Details Inside! HELPING AGENTS SUCCEED..IS OUR BUSINESS! We re on the web! Non-Medical Underwriting On QoL Max Accumulator+ Ages 0-59 Face amounts $50K to $249,999 No lab tests, physical exam or APS required for proposed insured Accept/reject underwriting Faster processing times using the igo eapplication, leads to faster commissions for the agent The Definitive Marketing Publication For Life & Disability Insurance For Your Information... Check out the new QoL Master Playbook on the website aig.com/qolmasterplaybook. Everything you need is here! QoL Producer Website QoL Training Playbook QoL IUL Playbook QoL Term Conversion Playbook And more..

5 DID YOU KNOW? 92 % OF OLDER ADULTS have at least one chronic condition, and 77% have at least two. 3 EVERY SECONDS an American has a heart attack 4 50% of people who suffer a heart attack survive more than five years 5 EVERY SECONDS an American has a stroke 6 OUT-OF-POCKET equals the healthcare costs throughout retirement for an average 65-year old couple retiring now 7 60 % $ 260 K OF AMERICANS are concerned about paying for health care in retirement 8 Policies issued by American General Life Insurance Company ACCELERATED ACCESS SOLUTION: Worried about protecting your assets from rising health care expenses? By adding the Accelerated Access Solution (AAS) rider to a QoL Guarantee Plus GUL II, QoL Value+ Protector or QoL Max Accumulator+ policy, you can access income tax-free death benefits if diagnosed with a chronic illness. 1,2 PROBLEM: PLANNING FOR THE UNEXPECTED As the sole breadwinner, Julia is a 45 year old single mother who wants to protect the financial stability of her family s financial future. Without knowing what will happen in the future, she would like to build in some protection in the event she should develop a chronic illness or pass away prematurely. SOLUTION: LIFE INSURANCE YOU DON T HAVE TO DIE TO USE Julia purchases a $500,000 QoL Guarantee Plus GUL II policy. With the optionality built into the policy, she has the following choices: Choose an Accelerated Access Solution total benefit amount anywhere between $125,000 and $250,000 Three monthly benefit payment amount options as shown in the chart on page 2. Julia chose the 100% total benefit option, giving her a $500,000 Accelerated Access Solution benefit. She also chose the per diem benefit payment option at the time of purchase. FAST FORWARD Thirty years later when Julia was 75 and in retirement, she has a stroke and activates the rider to access a portion of the death benefit each month 2. Because she chose the pier diem option, the monthly benefit amount had increased to approximately $35, (See Fig. 1) in the year she went on claim, and was payable for up to 16 months. Julia passes away 6 months after going on claim and therefore still had $286, {$500,000 - ($35, X 6)} in death benefits that were payable to her beneficiaries. The Accelerated Access Solution allowed her family to use the funds to pay for her medical care and protected family assets from being depleted as a result of the illness. AGLC REV0817 PAGE 1 OF

6 MONTHLY BENEFIT OPTIONS $500,000 Death Benefit $25,000 $20,000 $15,000 $10,000 $5,000 $0 Yr. 1 Yr. 10 Yr. 20 Yr. 30 Yr. 1 Yr. 10 Yr. 20 Yr. 30 Yr. 1 Yr. 10 Yr. 20 Yr. 30 2% Benefit 4% Benefit Per Diem Benefit NOTE: IRS caps the maximum daily rate each year. For 2017, the maximum per diem is $360/day or $10,950/month for a thirty-day month. In the chart above, hypothetical per diem increases based on IRS 2017 per diem in year 1, and increasing 4% each year thereafter. Whether or not the IRS per diem limit will change over time is not guaranteed. Hypothetical representation for illustrative purposes only. FOR MORE INFORMATION To learn more, visit or contact: BENEFITS OF ACCELERATED ACCESS SOLUTION* Multiple benefit payment options three options available for monthly benefit payments: IRS maximum per diem amount at time claim begins providing an increased payout the older policy owner gets 2% of the AAS benefit per month 4% of the AAS benefit per month Waiver of monthly deduction all policy deductions stop (including base policy + all riders) while receiving benefits Flexible options with total benefit amount select any amount between 50% -100% of the base policy death benefit amount Care coordination services available variety of optional and free support services available to the insured at time of claim No receipts required benefits paid irrespective of actual costs incurred Dollar-for-dollar death benefits payout know the benefit to be received at the time of rider purchase - no discount applied at time of claim 9 Not a use or lose it policy benefits are paid no matter what either when the chronic illness requirement is met or via death benefits Control over how money is spent up to the policy holder how the funds are used, not restricted via the policy No waiting period chronic illness benefits are available as soon as policy is issued (90 day elimination period applies) 10 *This is not a restricted list 1 Based on current federal income tax laws, policy owners should consult a qualified tax advisor. 2 Insured must be certified as chronically ill by a licensed physician and meet all eligibility requirements. 3 Accessed 02/27/ Subject to the $3 million lifetime cap 10 Benefit payout subject to 90 day elimination period. See outline of coverage for details. Policies issued by American General Life Insurance Company (AGL), Policy Form Numbers , ICC , A, 15646, , ICC , 16760, ICC ; Rider Form Numbers 15602, ICC , 15603, ICC , 15604, ICC , 15600, ICC , 15972, , 82012, CA, 82410, 88390, 14002, , ICC , 14306, , 07620, 15997, ICC , 15996, , 15994, ICC , 15271, ICC , 15274, ICC , 15272, ICC , 15273, ICC , 15990, , AGLA 04CHIR-CA (0514), AGLA 04CRIR, and AGLA 04TIR. Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). Guarantees are backed by the claims-paying ability of the issuing insurance company. AGL does not solicit business in the state of New York. Products may not be available in all states and product features may vary by state. There may be a charge for each rider selected. See the rider for details regarding the benefit descriptions, limitations and exclusions. Riders are not available in all states. Please review the policy and outline of coverage for your state AIG. All rights reserved. For this brochure to be complete for California residents, they must be provided the California Resident Supplemental Information flyer on the Accelerated Access Solution (AGLC110145) FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION. AGLC REV0917 PAGE 2 OF

7 Strong, Flexible Life Protection at a Competitive Price QoL Value+ Protector For Short Pays QoL Value+ Protector is an affordable protection-focused Index Universal Life (IUL) insurance product with innovative death benefit features. It is an attractive bridge product between GUL and cash accumulation focused IUL and offers competitive premiums with guarantees up to age 90 or longer for all payment structures. Key attractive features include: Competitive premiums to carry with life expectancy guarantees for all underwriting class and funding patterns particularly for ages 40 to 70 Ability to overfund the policy and be rewarded in later years through greater cash accumulation, coverage extensions and access to cash value through liquidity features built into the policy at no additional cost Downside protection of a guaranteed floor of 0% on index accounts plus a guaranteed Account Value Enhancement of 0.75% starting in year 6 A proprietary volatility control index that blends equity and fixed income indices to help stabilize returns Built-in Accelerated Benefit Riders covering Chronic, Critical and Terminal illnesses at no additional cost Option to add the Accelerated Access Solution (AAS) which does not require the illness condition to be permanent QoL Value+ Protector compares to protection focused IULs in Short Pays Male, 45, PPNT, $1,000,000 Death Benefit, Ten-Pay, at 5% Illustrated Rate, Carry to Age 121 Company Product Annual Premium % vs QoL VPP Target Cash Value Year 20 Guar to Age American General Life QoL Value+ Protector $15,043 $7,630 $232, Nationwide YourLife Indexed UL Protector $15,416 2% $6,797 $265, Lincoln Financial WealthAdvantage IUL $17,470 16% $9,200 $265, Prudential PruLife Index Advantage UL (2016) $17,846 19% $14,550 $236, Protective Indexed Choice UL $17,973 19% $9,220 $296, Voya Voya IUL-Protector $19,072 27% $9,160 $318, National Life Flex Life II $21,685 44% $16,810 $308, Voya Voya IUL-Global Choice $21,982 46% $18,000 $297, FOR FINANCIAL PROFESSIONAL USE ONLY- NOT FOR PUBLIC DISTRIBUTION.

8 QoL Value+ Protector for Short Pays Male, 55, SNT, $1,000,000 Death Benefit, Single-Pay, at 5% Illustrated Rate, Carry to Age 121 Company Product Annual Premium % vs QoL VPP Target Cash Value Year 20 Guar to Age Lincoln Financial WealthAdvantage IUL $217,647-8% $19,350 $423, Nationwide YourLife Indexed UL Protector $235,943 0% $17,849 $426, American General Life QoL Value+ Protector $236,509 $17,790 $419, Protective Indexed Choice UL $264,414 12% $17,360 $476, Prudential PruLife Index Advantage UL (2016) $284,451 20% $24,000 $455, Voya Voya IUL-Protector $299,035 26% $20,130 $538, Voya Voya IUL-Global Choice $324,889 37% $26,670 $516, National Life Flex Life II $328,094 39% $29,740 $521, All cases are run at 5% or max illustrated rate if not available. Single and Ten Pay premium data generated on 10/30/2017. Every attempt has been made to verify the accuracy of this information, but rates are subject to change at any time. These carriers are peer group competitors of American General Life Insurance Company. Value+ Protector IUL (5.00%), Lincoln Financial WealthAdvantage IUL (policy form #ICC15UL6046; 5%), National Life Flex Life II (policy form # ICC (0616); 5%), Nationwide YourLife Indexed UL Protector (policy form # ICC14-NWLA-515; 5%), Protective Index Choice UL (policy form # ICC13-UL23; 5%), Voya IUL-Global Choice (policy form # /12; 5%), Voya Voya IUL-Protector (policy form # /13; 5%) Policies issued by American General Life Insurance Company (AGL), Policy Form Numbers 16760, ICC ; Rider Form Numbers 07620, 15600, ICC , 15972, 13601, ICC , 82012, 82410, 88390, 14002, ICC , 15992, ICC , 15997, ICC , 15271, ICC , 15272, ICC , 15273, ICC , and ICC Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). AGL does not solicit business in the state of New York. Products may not be available in all states and product features may vary by state. Guarantees are backed by the claims-paying ability of the issuing insurance company. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. This information is general in nature, may be subject to change, and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant. FOR FINANCIAL PROFESSIONAL USE ONLY- NOT FOR PUBLIC DISTRIBUTION. AIG All rights reserved AGLC111297

9 Strong, Flexible Life Protection at a Competitive Price QoL Value+ Protector For Level Pays QoL Value+ Protector is an affordable protection-focused Index Universal Life (IUL) insurance product with innovative death benefit features. It is an attractive bridge product between GUL and cash accumulation focused IUL and offers competitive premiums with guarantees up to age 90 or longer for all payment structures. Key attractive features include: Competitive premiums to carry with life expectancy guarantees for all underwriting class and funding patterns particularly for ages 40 to 70 Ability to overfund the policy and be rewarded in later years through greater cash accumulation, coverage extensions and access to cash value through liquidity features built into the policy at no additional cost Downside protection of a guaranteed floor of 0% on index accounts plus a guaranteed Account Value Enhancement of 0.75% starting in year 6 A proprietary volatility control index that blends equity and fixed income indices to help stabilize returns Built-in Accelerated Benefit Riders covering Chronic, Critical and Terminal illnesses at no additional cost Option to add the Accelerated Access Solution (AAS) which does not require the illness condition to be permanent QoL Value+ Protector compared to protection focused IULs in level pays Male, 45, PPNT, $1,000,000 Death Benefit, Level-Pay, at 5% Illustrated Rate, Carry to Age 121 Company Product Annual Premium % vs QoL VPP Target Cash Value Year 20 Guar to Age Nationwide YourLife Indexed UL Protector $6,724-1% $6,797 $159, American General Life QoL Value+ Protector $6,768 $7,630 $140, Protective Indexed Choice UL $7,638 13% $9,220 $185, Lincoln Financial WealthAdvantage IUL $7,825 16% $9,200 $164, Prudential PruLife Index Advantage UL (2016) $8,181 21% $14,550 $127, Voya Voya IUL-Protector $8,447 25% $9,160 $198, National Life Flex Life II $9,722 44% $16,810 $182, Voya Voya IUL-Global Choice $9,987 48% $18,000 $162, American National Signature IUL $11,145 65% $16,990 $239, FOR FINANCIAL PROFESSIONAL USE ONLY- NOT FOR PUBLIC DISTRIBUTION.

10 QoL Value+ Protector for Level Pays Male, 55, SNT, $1,000,000 Death Benefit, Level-Pay, at 5% Illustrated Rate, Carry to Age 121 Company Product Annual Premium % vs QoL VPP Target Cash Value Year 20 Guar to Age Nationwide YourLife Indexed UL Protector $13,457-5% $15,521 $245, American General Life QoL Value+ Protector $14,233 $17,790 $269, Protective Indexed Choice UL $15,387 8% $17,360 $307, Lincoln Financial WealthAdvantage IUL $15,602 10% $19,350 $266, Voya Voya IUL-Protector $18,038 27% $20,130 $359, Prudential PruLife Index Advantage UL (2016) $18,197 28% $24,000 $281, Voya Voya IUL-Global Choice $19,389 36% $26,670 $321, National Life Flex Life II $20,345 43% $29,740 $334, American National Signature IUL $21,519 51% $30,050 $389, All cases are run at 5% or max illustrated rate if not available. Single and Ten Pay premium data generated on 10/30/2017. Every attempt has been made to verify the accuracy of this information, but rates are subject to change at any time. These carriers are peer group competitors of American General Life Insurance Company. Value+ Protector IUL (5.00%), Lincoln Financial WealthAdvantage IUL (policy form #ICC15UL6046; 5%), National Life Flex Life II (policy form # ICC (0616); 5%), Nationwide YourLife Indexed UL Protector (policy form # ICC14-NWLA-515; 5%), Protective Index Choice UL (policy form # ICC13-UL23; 5%), Voya IUL-Global Choice (policy form # /12; 5%), Voya Voya IUL-Protector (policy form # /13; 5%) Policies issued by American General Life Insurance Company (AGL), Policy Form Numbers 16760, ICC ; Rider Form Numbers 07620, 15600, ICC , 15972, 13601, ICC , 82012, 82410, 88390, 14002, ICC , 15992, ICC , 15997, ICC , 15271, ICC , 15272, ICC , 15273, ICC , and ICC Issuing company AGL is responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG). AGL does not solicit business in the state of New York. Products may not be available in all states and product features may vary by state. Guarantees are backed by the claims-paying ability of the issuing insurance company. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. This information is general in nature, may be subject to change, and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your individual circumstances, consult a professional attorney, tax advisor or accountant. FOR FINANCIAL PROFESSIONAL USE ONLY- NOT FOR PUBLIC DISTRIBUTION. AIG All rights reserved AGLC111298