Eclipse Indexed Life

Transcription

1 Life Insurance Policy Illustration Eclipse Indexed Life Prepared For Meredeth Williams Presented By SHAWN MICHAEL BRAGDON February 19, 2010 Minnesota Life, founded in 1880, is highly rated by the major independent rating agencies that analyze financial soundness and claims-paying ability of insurance companies. For more information about the rating agencies and to see where Minnesota Life's ratings rank relative to other ratings, please see our website at Eclipse Indexed Life is designed to provide life insurance protection. While the Interest crediting options available with the product are attractive for cash value accumulation, your fundamental objective in buying this product should be the peace of mind that the life insurance protection provides to you and your family or business.

2 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Supplemental Illustration The premium outlays shown are allocated 0% to the Fixed Account and 100% to the Indexed Accounts. For guaranteed values, please see the Basic Illustration. Fixed Account Interest 5.00% Indexed Accounts Interest 8.00% and Current Charges Partial Policy Interest Accumulation , ,000 8, , , ,000 18,477 10, , , ,000 28,821 20, , , ,000 39,987 31, , , ,000 52,038 43, , , ,000 65,043 58, , , ,000 79,079 74, , , ,000 94,223 90, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,450 1,048, , , , ,149 1,106,664 # , , , ,082 1,056, , , , ,923 1,006,664 This illustration assumes that the currently illustrated non-guaranteed elements will continue unchanged for all years shown. However, non-guaranteed elements will likely change from time to time. This means that actual results will be more or less favorable than those shown. Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. This Supplemental Illustration is valid only when accompanied by a complete Basic Illustration. Prepared on: A DOFU: 05/2009 Page 1 of 3

3 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Supplemental Illustration The premium outlays shown are allocated 0% to the Fixed Account and 100% to the Indexed Accounts. For guaranteed values, please see the Basic Illustration. Fixed Account Interest 5.00% Indexed Accounts Interest 8.00% and Current Charges Partial Policy Interest Accumulation , , , , , , , , , , , , , , , , , , , , ,000 2,000-50, , , , ,080 4,080-50, , , , ,243 6,243-50, , , , ,493 8,493-50, , , , ,833 10,833-50, , , , ,266 13,266-50,000 1,042, , , ,797 15,797-50,000 1,106, , , ,428 18,428-50,000 1,172, , , ,166 21,166-50,000 1,240, , , ,012 24,012-50,000 1,311, , , ,973 26,973-50,000 1,384, , , ,052 30,052-50,000 1,460, , , ,254 33,254-50,000 1,538, , , ,584 36,584-50,000 1,619, , , ,047 40,047-50,000 1,702, , , ,649 43,649-50,000 1,788, , , ,395 47,395-50,000 1,876, , , ,291 51,291-50,000 1,968, , , ,342 55,342-50,000 2,061, , , ,556 59,556-50,000 2,157, , , ,938 63,938-50,000 2,256, , , ,496 68,496-50,000 2,357, , ,676 This illustration assumes that the currently illustrated non-guaranteed elements will continue unchanged for all years shown. However, non-guaranteed elements will likely change from time to time. This means that actual results will be more or less favorable than those shown. Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. This Supplemental Illustration is valid only when accompanied by a complete Basic Illustration. Prepared on: A DOFU: 05/2009 Page 2 of 3

4 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Supplemental Illustration The premium outlays shown are allocated 0% to the Fixed Account and 100% to the Indexed Accounts. For guaranteed values, please see the Basic Illustration. Fixed Account Interest 5.00% Indexed Accounts Interest 8.00% and Current Charges Partial Policy Interest Accumulation ,236 73,236-50,000 2,461, , , ,165 78,165-50,000 2,567, , , ,292 83,292-50,000 2,675, , , ,623 88,623-50,000 2,786, , , ,168 94,168-50,000 2,902, , , ,935 99,935-50,000 3,023, , , , ,933-50,000 3,148, , , , ,170-50,000 3,278, , , , ,657-50,000 3,411, , , , ,403-50,000 3,549, , , , ,419-50,000 3,689,748 57,137 57, , ,716-50,000 3,833,876 3,961 3, , , ,983, Total: 250, ,000 3,829,916 2,079,916-1,750,000 This illustration assumes that the currently illustrated non-guaranteed elements will continue unchanged for all years shown. However, non-guaranteed elements will likely change from time to time. This means that actual results will be more or less favorable than those shown. Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. This Supplemental Illustration is valid only when accompanied by a complete Basic Illustration. Prepared on: A DOFU: 05/2009 Page 3 of 3

5 Eclipse Indexed Life ( or ICC09-700) Eclipse Indexed Life is a flexible premium indexed universal life insurance policy. You select the amount of insurance and the death benefit option when we issue the policy. Your policy will provide a if the insured's death occurs while the policy is inforce. The amount payable in the event of death is reduced by any policy loans and accrued interest. Eclipse Indexed Life provides premium payment flexibility, allowing you to vary the amount and timing of your premium payments. However, it is important that you make sufficient premium payments to maintain the policy's valuable insurance protection. When we receive your premium payments, we deduct a premium charge and place the remaining amount into your policy's Accumulation. You may allocate your policy's Accumulation to a Fixed Account and/or any of three Indexed Accounts for interest crediting purposes. Your policy's Accumulation will increase when interest is credited to the policy. Additional information regarding the Fixed Account and the Indexed Accounts can be found on the next page. Administration and insurance charges will be deducted from your policy's Accumulation each month. In addition, transaction charges may apply if you request changes be made to your policy. Your policy will remain active as long as the Accumulation less any policy loans and accrued interest remains greater than zero. Additional protection against policy termination can be obtained when the Guarantee Agreement is added to your policy. Important Information about your Life Insurance Illustration Proposed Insured: Meredeth Williams Female, Issue Age 35 Initial Base : $439,515 Initial Option: Increasing Initial Annual : $10, Minimum Initial : $ ($10,000.00) Illustrated Allocations: Fixed Account 0% Index A: S&P % Participation 34% Index B: S&P % Participation 33% Index C: DJ World-Ex. U.S. 100% Participation 33% Optional Agreements: Overloan Protection Agreement Revised Illustration: W This is a life insurance illustration and not a contract. This illustration is intended to demonstrate the impact of premium payments and policy charges on the Accumulation and under a set of assumptions. This illustration is not intended to predict or project actual performance. This illustration reflects certain assumptions about the amount and timing of your premium payments and how you may utilize the policy's options. Your actual use of the policy is likely to vary from these assumptions and this will cause the actual policy performance to differ from this illustration. The non-guaranteed values in this illustration assume that all premium outlays, net of premium charges, are allocated 0% into the Fixed Account and 100% into the Indexed Accounts. This illustration also assumes that the non-guaranteed elements will continue unchanged for all years. However, non-guaranteed elements are likely to change from time to time. This means that actual results will be more or less favorable than those shown. Please review your policy for a complete description of all policy features and benefits. Page 1 of 11

6 Eclipse Indexed Life ( or ICC09-700) Lifetime Interest Rate Guarantee In the event of death, policy termination or surrender, your policy guarantees that the total interest credited will not be less than a 3.00% effective annual interest rate. The guaranteed values in this illustration are calculated using a 3.00% interest rate. How Interest is Credited to the Fixed Account The portion of the Accumulation in the Fixed Account is credited interest on a daily basis. The interest rate credited will be changed from time to time but will never be lower than 3.00% annually. The current annual interest rate being credited to the Fixed Account is 5.00%. How Interest is Credited to the Indexed Accounts You may allocate all or a portion of your policy's Accumulation to any of three Indexed Accounts: Indexed Account A: S&P 500 with 100% Participation Rate Indexed Account B: S&P 500 with 140% Participation Rate Indexed Account C: Dow Jones World-Ex. U.S. with 100% Participation Rate Your policy will create an indexed account segment whenever a transfer into one of the Indexed Accounts occurs. Each indexed account segment will have a term of approximately one year (may be up to seven days less or seven days more). The value of an indexed account segment can be reduced over that period as monthly administrative and insurance charges are deducted from your policy's Accumulation. The value of an indexed account segment at the end of the segment term is used as the basis for determining the amount of interest to be credited. Interest is credited at the end of the segment term based upon the performance of the underlying index over that period, subject to the growth cap. We can change the growth cap prior to the creation of any segment. However, once we establish the growth cap at the beginning of each segment term, the growth cap cannot change for that segment. Once a growth cap rate is determined for a segment, it is guaranteed only for the 'segment'. The growth cap may change for subsequent segments. A lower growth cap rate in the future means that amounts you have in the Indexed Account Option will have a lower maximum interest credit for future segments. Growth cap rates are subject to change by Minnesota Life for any reason. Historical Performance of an Index The historical performance of an Index or Indexed Account as reflected in the tables below should not be considered a representation of past or future performance for the Indexed Account available in the policy. In particular, the performance of an index over a similar period (or over a different period of time) could be substantially less than shown in the tables below. As a result, the actual interest credited by an Indexed Account may be less than the non-guaranteed assumed interest rates used in this illustration. Indexed Account A: S&P 500 Index with 100% Participation Below is a table which uses the historical performance of the S&P 500 Index for the periods shown to help illustrate how interest may be credited to your contract in this account. It assumes the following: a growth cap rate of 16% and a participation rate of 100%. This results in a maximum interest credit in any year of 16.00%. Using the assumptions described above, a compound interest rate of approximately 9.26% would have been produced over the time period covered by the table. S&P 500 Hypothetical Index Interest Date Growth Credited 12/18/ % 16.00% 12/17/ % 0.00% 12/16/ % 9.89% 12/15/ % 16.00% 12/20/ % 2.92% 12/19/ % 16.00% 12/18/ % 16.00% 12/17/ % 0.00% 12/15/ % 12.88% 12/14/ % 16.00% 12/20/ % 0.00% 12/19/ % 15.87% 12/17/ % 13.83% 12/16/ % 6.41% 12/15/ % 0.00% S&P 500 Hypothetical Index Interest Date Growth Credited 12/14/ % 16.00% 12/19/ % 16.00% 12/18/ % 16.00% 12/17/ % 16.00% 12/16/ % 16.00% 12/14/ % 0.00% 12/20/ % 0.00% 12/19/ % 0.00% 12/18/ % 16.00% 12/16/ % 10.47% 12/15/ % 5.63% 12/14/ % 12.16% 12/20/ % 2.43% 12/18/ % 0.00% 12/17/ % 16.00% COMPOUND AVERAGE 8.02% 9.26% Page 2 of 11

7 Eclipse Indexed Life ( or ICC09-700) Indexed Account B: S&P 500 Index with 140% Participation Below is a table which uses the historical performance of the S&P 500 Index for the periods shown to help illustrate how interest may be credited to your contract in this account. It assumes the following: a growth cap rate of 10% and a participation rate of 140%. This results in a maximum interest credit in any year of 14.00%. Using the assumptions described above, a compound interest rate of approximately 9.03% would have been produced over the time period covered by the table. S&P 500 Hypothetical Index Interest Date Growth Credited 12/18/ % 14.00% 12/17/ % 0.00% 12/16/ % 13.85% 12/15/ % 14.00% 12/20/ % 4.09% 12/19/ % 14.00% 12/18/ % 14.00% 12/17/ % 0.00% 12/15/ % 14.00% 12/14/ % 14.00% 12/20/ % 0.00% 12/19/ % 14.00% 12/17/ % 14.00% 12/16/ % 8.97% 12/15/ % 0.00% S&P 500 Hypothetical Index Interest Date Growth Credited 12/14/ % 14.00% 12/19/ % 14.00% 12/18/ % 14.00% 12/17/ % 14.00% 12/16/ % 14.00% 12/14/ % 0.00% 12/20/ % 0.00% 12/19/ % 0.00% 12/18/ % 14.00% 12/16/ % 14.00% 12/15/ % 7.88% 12/14/ % 14.00% 12/20/ % 3.40% 12/18/ % 0.00% 12/17/ % 14.00% COMPOUND AVERAGE 8.02% 9.03% Indexed Account C: Dow Jones World-Ex. U.S. Index with 100% Participation Below is a table which uses the historical performance of the Dow Jones World-Ex U.S. Index for the periods shown to help illustrate how interest may be credited to your contract in this account. It assumes the following: a growth cap rate of 15% and a participation rate of 100%. This results in a maximum interest credit in any year of 15.00%. Using the assumptions described above, a compound interest rate of approximately 9.09% would have been produced over the time period covered by the table. Dow Jones Hypothetical World-Ex. U.S. Interest Date Growth Credited 12/20/ % 0.00% 12/19/ % 0.00% 12/18/ % 15.00% 12/16/ % 15.00% 12/15/ % 15.00% Dow Jones Hypothetical World-Ex. U.S. Interest Date Growth Credited 12/14/ % 15.00% 12/20/ % 8.81% 12/18/ % 0.00% 12/17/ % 15.00% COMPOUND AVGERAGE 2.48% 9.09% The Underlying Indices The underlying indices, the S&P 500 Index and the Dow Jones World-Ex. U.S. Index, only recognize the changes in stock prices and do not include any dividend returns. The policy and the Indexed Accounts do not actually participate in the stock market, the S&P 500 Index, or the Dow Jones World-Ex. U.S. Index. You may not invest directly in an Index. "Standard & Poor's," "S&P," "S&P 500," "Standard & Poor's 500" and "500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Minnesota Life. The Product is not sponsored, sold, or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of purchasing the Product. The S&P 500 Index is an index of 500 stocks that are generally representative of the performance of leading companies in leading industries within the U.S. "Dow Jones World-Ex. U.S. Index SM " is a service mark of Dow Jones & Company, Inc., and has been licensed for use by Minnesota Life. The Product is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of purchasing the Product. The Dow Jones World-Ex. U.S. Index SM represents approximately 95% of European market capitalization at the regional level, 95% of all other developed markets at the country level, and 95% of emerging markets as a group. As of December 3, 2007, this index covers 45 countries. The Dow Jones World-Ex. U.S. Index SM provides a general representation of how select international investments may perform. You can not invest directly in the Dow Jones World-Ex. U.S. Index SM. The Dow Jones World-Ex. U.S. Index SM may fluctuate in response to international concerns such as currency fluctuations, political, social and economic instability, and differences in accounting standards. Page 3 of 11

8 Eclipse Indexed Life ( or ICC09-700) Additional Information About the Growth Cap Minnesota Life can change the growth cap prior to the creation of any segment. We may change the growth cap for any reason, including changes in market conditions and the impact it may have on our profit margins. However, once we establish the growth cap at the beginning of a segment term, the growth cap cannot be changed for that segment. In the event the growth cap is reduced, the amount of interest credited to your policy will be lower for years in which the growth of the index exceeds the reduced growth cap. If the growth cap used were lower than shown, then the maximum hypothetical compound interest rate allowed in this illustration would be lower. Partial s and Policy s Partial s can be made at any time and reduce both the Accumulation and the. The minimum partial surrender is $500. Partial surrenders incur a transaction charge that is deducted from the Accumulation s. No surrender charges apply when a partial surrender is made. charges are only applicable upon full policy surrender. Your policy also provides you the option of taking a policy loan with a fixed interest rate or a variable interest rate. In the event of death, surrender or policy termination, the proceeds payable will be reduced by any policy loans and accrued interest. The and shown in this illustration reflect the automatic repayment of policy loans and accrued interest. One or more policy loans with a fixed interest rate are presented in this illustration. interest is charged at an initial illustrated annual rate of 4.00% in all years and is due at the end of the policy year. This illustration assumes that annual policy loan interest is borrowed and added to the loan balance. The portion of the Accumulation securing the loan balance is allocated to a fixed loan account and will be credited interest at an annual rate of 3.00% in policy years 1 through 10 and at an effective annual rate of 3.90% in policy years 11 and beyond. We reserve the right to change the current rate credited in any year but it will never be lower than 3.00%. Taxation of Life Insurance Policies This information is a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances. A policy will qualify as life insurance under Internal Revenue Code Section 7702 if it meets one of two alternative tests, the Guideline Test or the Cash Accumulation Test. Failure to qualify as life insurance will have adverse tax consequences. This illustration uses the Guideline Test, which requires that the sum of premiums less any non-taxable partial surrenders at any point in time does not exceed the Guideline Limit. The Guideline Limit is the greater of the Guideline Single or the sum of the Guideline Annual s at such time. A policy issued as shown in this illustration would have an initial Guideline Single equal to $51, and an initial Guideline Annual equal to $10, Guideline premiums are calculated at policy issue but must be recalculated upon certain changes in the terms or benefits of the policy. The Guideline Test also requires that the death benefit payable under the policy at any time is at least equal to an applicable percentage of the Accumulation. The policy's Accumulation may grow to the point where we will increase the in order to ensure that the policy will continue to satisfy Section 7702 of the Internal Revenue Code. When this happens, Minnesota Life reserves the right to limit premium payments. The Technical and Miscellaneous Revenue Act (TAMRA) of 1988 classifies some policies as Modified Endowment Contracts (MECs). Distributions from Modified Endowment Contracts, excluding death benefit payments, are taxed differently and may be subject to a 10% IRS penalty tax. The annual premium to avoid Modified Endowment Contract status in the first seven years for a policy issued as shown in this illustration is $12, Based upon the assumptions used in this illustration, the policy would not be considered a Modified Endowment Contract (MEC) based upon our interpretation of the Internal Revenue Code. Page 4 of 11

9 Eclipse Indexed Life ( or ICC09-700) Optional Agreement Descriptions Optional Agreements are available with your policy. Additional monthly charges may apply when these agreements are exercised or added to the policy. Guarantee Agreement (NOT ILLUSTRATED) - Provides additional protection against policy termination due to insufficient Accumulation. While this agreement is in effect, your policy cannot terminate even if the Accumulation less any policy loans and accrued interest falls to zero. Like your policy, the Guarantee Agreement is directly affected by the timing and amounts of premium paid. To ensure that you have the Guarantee Agreement in effect for the period of time that you desire, it is important that premium payments are paid when scheduled. payments that are missed or received after they are scheduled will reduce the length of time that your Guarantee Agreement will remain in effect. Policy changes and transactions (e.g., partial surrenders) will also affect the length of time that your Guarantee Agreement will remain in effect. The Guarantee Agreement cannot be combined with the Term Insurance Agreement or the Interest Accumulation Agreement on the same policy. Early s Agreement (NOT ILLUSTRATED) - Eliminates the surrender charges associated with your policy. The result is higher cash surrender values in the early years of the policy versus policies with the same specifications without this agreement. The Accumulation is decreased as an additional monthly charge applies for this agreement. The Early s Agreement cannot be removed. Guaranteed Insurability Option Agreement (NOT ILLUSTRATED) - This agreement guarantees you the option to add an additional coverage layer on the insured's life without providing additional evidence of insurability. Interest Accumulation Agreement (NOT ILLUSTRATED) - Provides that the death benefit of the policy will provide for the face amount of the policy plus cumulative premiums with compounded interest. The Interest Accumulation Agreement cannot be combined with the Guarantee Agreement on the same policy. Overloan Protection Agreement - Provides that your policy will not terminate even if the unloaned portion of the Accumulation is insufficient to cover policy charges. You may exercise this agreement only if your policy is not a Modified Endowment Contract (MEC) at the time the option is exercised and the other conditions described in the agreement are satisfied. Enhancement Agreement (NOT ILLUSTRATED) - Provides that the full surrender value of the policy, while this agreement is in force (up to three years), will be no less than the cumulative premium payments made on the policy. This agreement will terminate if a surrender or policy loan is taken from this policy during the benefit period. The Enhancement Agreement is only available when the Early s Agreement is included on the policy. Term Insurance Agreement (NOT ILLUSTRATED) - Provides additional insurance on the life of the insured to age 100. The Term Insurance Agreement is intended to supplement your policy's death benefit when you have an insurance need that may be temporary in nature. Although the initial cost of the total death benefit may be lower with this agreement, the long-term charges could be higher than with all base policy coverage. The Term Insurance Agreement cannot be combined with the Guarantee Agreement on the same policy. Waiver of Charges Agreement (NOT ILLUSTRATED) - Provides for waiver of the monthly insurance and administrative charges for as long as the insured is disabled, if the insured is disabled prior to age 60. The Waiver of Charges Agreement cannot be combined with the Waiver of Agreement on the same policy. Waiver of Agreement (NOT ILLUSTRATED) - Provides for a specified premium to be credited to the policy monthly for as long as the insured is disabled, if the insured is disabled prior to age 60. The Waiver of Agreement cannot be combined with the Waiver of Charges Agreement on the same policy. Page 5 of 11

10 Eclipse Indexed Life ( or ICC09-700) Definition of Column Headings Used in This Illustration Accumulation - When premiums are paid, the balance, after premium charges are deducted, goes into the policy's Accumulation. The Accumulation grows as interest is credited to the policy. Once each month, administrative and insurance charges are deducted from the Accumulation. Partial surrenders also reduce the Accumulation. It is illustrated as of the end of the policy year. Age - The proposed insured's age on the birthday nearest the beginning of the policy year. Current, Average and Guaranteed Maximum Charges - Current charges are the amounts that we now charge and these charges are not guaranteed. We can change the current charges at any time but may not charge more than the guaranteed maximum charges. Average charges represent the average of the current and guaranteed maximum charges. - The amount payable upon the death of the insured. This amount is illustrated as an end of year value and is net of any policy loans and accrued interest or partial surrenders taken from the Accumulation. Guaranteed s - The values shown as "guaranteed" in this illustration are calculated using the guaranteed minimum interest rate and guaranteed maximum administrative and insurance charges. These values are also based upon the premiums, partial surrenders and loans displayed in this illustration. A different schedule of premiums, partial surrenders and/or loans will cause the guaranteed values to change. - plus any loan repayments less partial surrenders or policy loans. Non-Guaranteed s - The values shown as "non-guaranteed" in this illustration are calculated using non-guaranteed interest rates and non-guaranteed administrative and insurance charges. These non-guaranteed elements may be changed at our discretion but cannot be less favorable to you than the policy's guarantees. This illustration assumes that the non-guaranteed elements will continue unchanged for all years shown. However, non-guaranteed elements are likely to change from time to time. This means that actual results may be more or less favorable than those shown. - The amount of premium that the owner intends to pay. This illustration assumes that the premium is paid at the beginning of each modal period. - The amount payable in the event of full policy surrender. It is equal to the Accumulation less any surrender charges and any policy loans and accrued interest. charges are applied in the event of full policy surrender during the first ten policy years and within 10 years after any increase in your policy's face amount. The surrender value is illustrated as of the end of the policy year. Page 6 of 11

11 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Illustration of Guaranteed and Non-Guaranteed s The premium outlays shown are allocated 0% to the Fixed Account and 100% to the Indexed Accounts. GUARANTEED VALUES Guaranteed Interest 3.00% and Guaranteed Maximum Charges Fixed Account Interest 5.00% Indexed Accounts Interest 8.00% and Current Charges Accumulation ,000 10, ,434 8, , ,000 10,000 7, ,565 18,477 10, , ,000 10,000 16, ,903 28,821 20, , ,000 10,000 24, ,474 39,987 31, , ,000 10,000 33, ,276 52,038 43, , ,000 10,000 44, ,310 65,043 58, , ,000 10,000 55, ,584 79,079 74, , ,000 10,000 66, ,100 94,223 90, , ,000 10,000 77, , , , , ,000 10,000 89, , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , ,450 1,048, ,000 10, , ,230 # 667, ,149 1,106,664 # , , , , ,082 1,056, , , , , ,923 1,006, , , , , , ,664 IMPORTANT: This is an illustration, not a contract. This illustration assumes that the currently illustrated non-guaranteed elements will remain unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable than those shown. Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. Page 7 of 11

12 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Illustration of Guaranteed and Non-Guaranteed s The premium outlays shown are allocated 0% to the Fixed Account and 100% to the Indexed Accounts. GUARANTEED VALUES Guaranteed Interest 3.00% and Guaranteed Maximum Charges Fixed Account Interest 5.00% Indexed Accounts Interest 8.00% and Current Charges Accumulation ,000 86, , , , , ,000 33, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 1,042, , , ,000 1,106, , , ,000 1,172, , , ,000 1,240, , , ,000 1,311, , , ,000 1,384, , , ,000 1,460, , , ,000 1,538, , , ,000 1,619, , , ,000 1,702, , , ,000 1,788, , , ,000 1,876, , , ,000 1,968, , , ,000 2,061, , , ,000 2,157, , , ,000 2,256, , , ,000 2,357, , , ,000 2,461, , , ,000 2,567, , ,967 IMPORTANT: This is an illustration, not a contract. This illustration assumes that the currently illustrated non-guaranteed elements will remain unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable than those shown. Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. Page 8 of 11

13 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Illustration of Guaranteed and Non-Guaranteed s The premium outlays shown are allocated 0% to the Fixed Account and 100% to the Indexed Accounts. GUARANTEED VALUES Guaranteed Interest 3.00% and Guaranteed Maximum Charges Fixed Account Interest 5.00% Indexed Accounts Interest 8.00% and Current Charges Accumulation ,000 2,675, , , ,000 2,786, , , ,000 2,902, , , ,000 3,023, , , ,000 3,148, , , ,000 3,278, , , ,000 3,411, , , ,000 3,549, , , ,000 3,689,748 57,137 57, ,000 3,833,876 3,961 3, ,983, Total: 250,000-1,750,000 IMPORTANT: This is an illustration, not a contract. This illustration assumes that the currently illustrated non-guaranteed elements will remain unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable than those shown. Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. Page 9 of 11

14 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Illustration of Guaranteed and Average Charges/Average Interest s The premium outlays shown are allocated 0% to the Fixed Account and 100% to the Indexed Accounts. The Non-Guaranteed s column shows the Policy's illustrated accumulation value assuming the interest credited is an Average of the guaranteed interest rate and the rate illustrated for non-guaranteed values. The charges used in the Non-Guaranteed column are an average of the guaranteed maximum charges and the current non-guaranteed charges. GUARANTEED VALUES Guaranteed Interest 3.00% and Guaranteed Maximum Charges Fixed Account Interest 4.00% Indexed Accounts Interest 5.50% and Average Charges Accumulation ,000 10, ,435 8, , ,000 10,000 7, ,565 17,213 8, , ,000 10,000 16, ,903 26,502 18, , ,000 10,000 24, ,474 36,290 28, , ,000 10,000 33, ,276 46,598 38, , ,000 10,000 44, ,310 57,452 50, , ,000 10,000 55, ,584 68,882 63, , ,000 10,000 66, ,100 80,916 77, , ,000 10,000 77, ,858 93,580 91, , ,000 10,000 89, , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , ,000 10, , , , , , IMPORTANT: This is an illustration, not a contract. This illustration assumes that the currently illustrated non-guaranteed elements will remain unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable than those shown. Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. Page 10 of 11

15 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Numeric Summary GUARANTEED NON-GUARANTEED Guaranteed Max Charges Average Charges Current Charges Guaranteed Interest Average Interest Assumed Interest , , , , ,000 33, ,276 38, ,113 43, , ,000 89, , , , , , , , , , , , ,988 Age , ,840 I have received a copy of this illustration and understand that any non-guaranteed elements, including the interest credit assumptions, illustrated are subject to change and could be higher or lower. The representative has told me they are not guaranteed. I understand the representative signing below is an appointed agent for and represents Minnesota Life and will provide service with regard to any Minnesota Life product I purchase. I understand Minnesota Life pays cash compensation and may pay non-cash compensation to its representatives and the amount of the compensation will vary depending on the product purchased, as well as such factors as the product design, benefits, and features that are purchased and incorporated into my insurance program. I also understand that other factors, including the volume of business sold, may impact the amount of cash or non-cash compensation that is paid. Signature of Applicant Date I certify that this illustration has been presented to the applicant and that I have explained that any non-guaranteed elements illustrated are subject to change. I have made no statements that are inconsistent with the illustration. I have received and reviewed the current product training materials provided by Minnesota Life and have not made any statements that are inconsistent with these materials. I also certify that I presented and explained to the Applicant that the Eclipse Indexed Life policy does not represent an investment in the stock market and does not participate in any stock or equity investments. I have not made any promises about the expected future Indexed Account s within the policy. I believe the information provided is complete and accurate to the best of my knowledge and that the Eclipse Indexed Life policy is not unsuitable for the Applicant. Signature of Representative Date SHAWN MICHAEL BRAGDON A Securian Financial Affiliate Robert Street North, St. Paul, Minnesota Fax 2006 Securian Financial Group, Inc. all rights reserved Page 11 of 11

16 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Distribution Report Fixed Account 5.00% Indexed Accounts 8.00% and Current Charges Partial Policy Interest þ Cumulative Balance ,000 10, , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, , , ,000 10, ,450 1,048, ,000 10, ,149 1,106,664 # ,000 50, ,082 1,056, ,000 50, ,923 1,006, ,000 50, , ,664 Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. þ For loan interest information refer to the Partial and Policy s section of the Basic Illustration. This Distribution Report is valid only when accompanied by a complete Basic Illustration. Prepared on: A DOFU: 11/2009 Page 1 of 3

17 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Distribution Report Fixed Account 5.00% Indexed Accounts 8.00% and Current Charges Partial Policy Interest þ Cumulative Balance ,000 50, , , ,000 50, , , , , , , , , ,000 2, , , , , ,080 4, , , , , ,243 6, , , , , ,493 8, , , , , ,833 10, , , , , ,266 13, , , , , ,797 15, , , , , ,428 18, , , , , ,166 21, , , , , ,012 24, , , , , ,973 26, , , , , ,052 30, , , , , ,254 33, , , , , ,584 36,584 1,001, , , , ,047 40,047 1,091, , , , ,649 43,649 1,184, , , , ,395 47,395 1,282, , , , ,291 51,291 1,383, , , , ,342 55,342 1,488, , , , ,556 59,556 1,598, , , , ,938 63,938 1,712, , , , ,496 68,496 1,830, , , , ,236 73,236 1,954, , , , ,165 78,165 2,082, , ,967 Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. þ For loan interest information refer to the Partial and Policy s section of the Basic Illustration. This Distribution Report is valid only when accompanied by a complete Basic Illustration. Prepared on: A DOFU: 11/2009 Page 2 of 3

18 Initial : $439,515 Initial Option: Increasing Initial Annual : $10, Distribution Report Fixed Account 5.00% Indexed Accounts 8.00% and Current Charges Partial Policy Interest þ Cumulative Balance , ,292 83,292 2,215, , , , ,623 88,623 2,354, , , , ,168 94,168 2,498, , , , ,935 99,935 2,648, , , , , ,933 2,804, , , , , ,170 2,966, , , , , ,657 3,135, , , , , ,403 3,310, , , , , ,419 3,492,895 57,137 57, , , ,716 3,682,611 3,961 3, , ,304 3,829, TOTAL 250,000-1,750, ,000 3,829,916 2,079,916 Administrative and insurance charges are deducted every month regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments. Any policy loans and partial surrenders will affect policy values and may require additional premiums to avoid policy termination. # Denotes a change to the Option. þ For loan interest information refer to the Partial and Policy s section of the Basic Illustration. This Distribution Report is valid only when accompanied by a complete Basic Illustration. Prepared on: A DOFU: 11/2009 Page 3 of 3