Legacy Advantage Survivorship Universal Life SM. Producer Guide. For Producer or Broker/Dealer Use Only. Not for Public Distribution.

Transcription

1 Legacy Advantage Survivorship Universal Life SM LIFE Universal Life term Producer Guide

2 Life. your way SM 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 Policy Overview...1 Availability...1 Risk Class and Issue Ages...1 Face Amounts...2 Death Benefit Options...2 Death Benefit Proceeds...2 Premium Modes...2 Premium Types...2 Policy Charges...3 Interest Rates...4 Cash Withdrawals...4 Policy Loans...4 Policy Surrender...5 Age 120 Processing...5 Negative Cash Value...5 Lapse Processing...6 Policy Change...6 RiderS Joint Coverage Continuation Rider...7 Estate Preservation Term Rider...8 Scheduled Face Increase Option...8 Waiver of Specified Premium Rider...8 Policy Split Option...9 Guaranteed Survivor Income Benefit...10 Return of Premium Rider Modified Surrender Rider...11

3 Policy Overview Legacy Advantage Survivorship Universal Life (SUL) is a joint life insurance policy that can be an ideal solution for estate planning, wealth transfer and business planning. The product has dual functionality. As a base product the Legacy Advantage SUL will accumulate cash value based on current assumptions and with the optional addition of the Joint Coverage Continuation Rider (JCCR) the Legacy Advantage SUL offers one of the most competitive guarantees in the industry. The product offers great flexibility in premium payment and guarantee duration. Competitive Advantages Include: Full-pay scenarios Focused pricing on Premium timing in the first year has no impact on JCCR duration as long as JCCR monthly minimum premiums are met The Legacy Advantage SUL is issued by MetLife Investors USA Insurance Company in all jurisdictions except New York where it is issued by Metropolitan Life Insurance Company. Availability Legacy Advantage SUL is available only on a fully underwritten basis. Unisex rates are available for all issues in Montana and for any non-qualified plans that require such use of rates, i.e. Corporate Split Dollar or Executive Bonus plans. Please check the current state availability list for the latest approval status of the base policy and policy riders. Term Conversions Term conversion programs may be offered from time to time. Term conversions to LASUL are allowed within the limits set by the Company regarding age and amount of insurance. Generally, each insured may convert term insurance equal to one-half the face amount of the Legacy Advantage SUL without underwriting. The total face amount of Legacy Advantage SUL that can be issued through a conversion without underwriting is $7,500,000. Any amount above $7,500,000 will be subject to underwriting. Additional benefits/riders may be included in the new policy with Company approval and may be subject to underwriting. Legacy Advantage SUL is not available for group conversions. Risk Classes and Issue Ages Issue ages for both insureds are based on the insured s age nearest birthday as of the policy date. 1 Backdating the policy date to conserve age is allowed according to normal state guidelines but no more than 180 days (90 in Ohio) from the application signature date. The following risk classes and issue ages are available: Risk Class Issue Age Elite Nonsmoker Issue Ages Preferred Nonsmoker and Smoker Issue Ages Standard Nonsmoker and Smoker Issue Ages Substandard Nonsmoker and Substandard Smoker Issue Ages Permanent and temporary flat extras, or combinations of the two, are allowed on all risk classes and ages except Elite. If both insureds are equal to or less than age 80 at issue, the combined table rating cannot exceed Table P (extra 400% or 16 tables) and the combined flat extra cannot exceed $40 per thousand. If any insured is over age 80 at issue, the combined total rating cannot exceed Table H (extra 200% or eight tables) and the combined flat extra cannot exceed $20 per thousand ($10 per person). If one life is declined, the other life cannot exceed Table D (extra 100% or four tables) or a $10 per thousand flat extra. 1 1 Policy date is the date shown on the cover of the contract, which may differ from the date when the contract was actually issued. The date when the contract was actually issued is called the issue date. Policy date is used to measure issue age, policy years, policy months and anniversaries. Issue date is used to measure suicide exclusion and incontestability periods.

4 2 Face Amounts Minimum: $250,000 for both at issue and after issue changes Maximum: subject to normal underwriting guidelines Face Amount Banding Band Face Amount of Insurance 1 $250,000 $999,999 2 $1,000,000 and above Death Benefit Options Two death benefit options are available: Option A (Level), which provides for the level face amount as shown on the Policy Specification page. Option B (Increasing), which provides for a death benefit equal to the level face amount plus the current policy cash value. Option B is not available with the JCCR. Death Benefit Proceeds At the death of the second insured, the policy proceeds payable are: The policy face amount; plus Any increase amount associated with Death Benefit Option B. The death benefit provided by any riders; plus Any increase in death benefit due to IRC 7702 corridor requirements; plus premium payments received after death. The cost of insurance from the date of death to the end of policy month; minus Any amount due and unpaid as of the date of death; 2 minus Any loan and accrued loan interest as of the date of death. Premium Modes The following modal premiums are available: Annual Semiannual Quarterly Monthly Bank Draft Premium Types The policy allows for flexible premiums. However, any premium change will affect the duration of the JCCR-based no-lapse guarantee if elected. Therefore, for a policy with the JCCR, it is strongly suggested that an inforce illustration be reviewed to understand the impact of premium changes before any premium changes are exercised. Minimum Premium to Issue: With JCCR JCCR Minimum Monthly First-Year Premium This is the monthly cumulative premium that is required to keep the JCCR in force for the first policy year. If at any monthly processing date, the cumulative JCCR minimum monthly firstyear premium is not met, the JCCR will lapse. If the policy has insufficient value to cover the charges, the base policy will also lapse. If the policy is backdated, the premium paid must be sufficient to bring the policy up to the current date. Without JCCR Five-Year, No-Lapse Monthly Premium The five-year, no-lapse monthly premium is the minimum premium to issue without the JCCR. If cumulative monthly premiums are paid, the policy is guaranteed to remain in force until the end of the fifth policy year. If the policy is backdated, the premium paid must be sufficient to bring the policy up to the current date or the policy will lapse. 2 If the policy does not include JCCR, Any amount due and unpaid as of the date of death is equal to the monthly deductions due. If it does include the JCCR, Any amount due and unpaid as of the date of death is equal to the lesser of the monthly deductions due or the amount that would keep the JCCR in force.

5 Planned Modal Premium This is 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. Target Premium Target premium is used for the purpose of commission calculation and does not assure that the policy will remain in force. The rates are per thousand of face amount, banded and based on issue age, sex (for non-unisex policies) and risk class. Target premiums for rated cases are capped at Table D for each insured. During the first policy year only, a face amount increase or decrease will cause a recalculation of the target premium. Targets are not increased for flat extras (temporary or permanent). In addition to the base policy the following 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. 7-Pay Premiums Technical and Miscellaneous Revenue Act of 1988 (TAMRA) guidelines specify cumulative yearly premium maximums to avoid Modified Endowment Contract (MEC) status. Violation of those maximums results in negative tax implications to the policy owner for withdrawals and loans made from the cash value and policy assignments. The policy owner has 60 days from the end of the policy year to reverse the premiums made in excess of the 7-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 TAMRA testing. Maximum Premiums (Guideline Premiums) These 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 or the sum of the guideline level premiums. Contractually, the premiums are limited so that they do not exceed the guidelines under Internal Revenue Code (IRC) Section Note: adding or deleting certain riders and other policy changes can affect or cause the recalculation of the guideline premiums. Policy charges Percentage of Premium Charge The premium charge is intended to cover the Company s sales commission expense and state premium taxes. On a current basis, without the JCCR, the premium charge equals 7.75% in years 1 through 20 and 5% thereafter. With the JCCR, it equals 10% in all years. On a guaranteed basis, it equals 18% in all years. These charges are deducted from all premium payments and the remaining premium goes into the policy s cash value. Monthly Policy Charge The policy fee is $10.00 per month, or $ annually. It is guaranteed not to increase for the life of the policy. This fee is deducted from the cash value each month. 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, issue age, sex, band, risk class and JCCR status. Both the current and guaranteed charges are the same. The coverage expense charge will vary if the JCCR is on the policy. 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. The current rates vary by band, sex, issue age, duration, underwriting class and smoking status of each insured. The guaranteed COI rates vary by sex, attained age and smoking status. 3

6 4 Interest Rates Guaranteed Interest-Crediting Rate The guaranteed minimum interest-crediting rate on the policy cash value is 3.0% 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 can only be changed quarterly. Policies with the JCCR may be credited with a different interest rate. A persistency bonus is credited to the policy after the policy has been in force for more than 19 years and the current crediting interest rate is higher than the guaranteed interest rate of 3.00%. The persistency credit will be at least 0.50%. Cash Withdrawals Cash withdrawals are available from the net Cash Surrender Value (CSV), which 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 guarantee for policies with the JCCR. 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: 25% of the policy s net CSV as of the beginning of the year; or last year s maximum allowable withdrawal amount. Currently, up to 12 withdrawals per policy year are allowed without any charge. We do reserve 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 we will ever charge for a partial withdrawal is $25.00 per withdrawal event. Any withdrawal that causes a reduction in the policy face amount will have any applicable surrender charge assessed to that portion of the reduction. For any withdrawals during the 12 months following a requested face increase that result in a face decrease, the proportionate unpaid monthly coverage expense charges for the remainder of the 12-month period will be deducted from the policy cash value. 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 for policies with the JCCR. Policy loans will decrease the death benefit and the cash value. Basic Policy Loan Rules The minimum loan amount is $100. 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 to a full/partial surrender; minus the last monthly deduction times the number of months to the next policy anniversary; minus loan interest due to the next anniversary; minus any outstanding loan balance, as of the loan date; plus credited interest on the cash value at the guaranteed interest rate 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 a fixed guaranteed loan account crediting rate of 3%. 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 beginning on the date the notice is sent. 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 Legacy Advantage SUL are allowed. Maximum loan carry over on 1035 exchanges is 80% of the total rollover amount. A nonguaranteed preferred loan rate of 4% applies in the first 10 years for loans rolled over with a 1035 exchange (no preferred loan rate in NY). Any new interest associated with the carry over loan will accrue interest at the preferred rate.

7 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 first go toward repaying non-1035 exchange loans and then toward loans with the preferred 1035 exchange loan rate. Policy Surrender Legacy Advantage SUL may be surrendered for its cash surrender value at any time. If the surrender occurs on 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 Loan Interest Rate Loan Crediting Rate Net Loan Cost Years % 3% 2% Years 1-10 Preferred 4% 3% 1% Years % 3% 1% Years 16+ 3% 3% 0% The surrender charge is a per-thousand of base policy face amount charge and applies for the first 19 years after the policy date. The charge is level for the first policy year, then decreases each month over the next 18 years until reaching zero at the end of the 19-year period. No additional surrender charges apply to the death benefit in excess of the face amount associated with Death Benefit Option B nor any riders. Surrender charges differ based on issue age, sex, risk class and smoker status of each of the two insured lives. The surrender charge applies to full surrenders, partial withdrawals, a change in Death Benefit Option that reduces the policy face amount and a requested face amount decrease. Exceptions apply under the Modified Surrender Rider. Each underwritten face increase will have its own surrender charge period. If a full 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 charges will be taken out of the policy cash value except for policies with the Modified Surrender Rider. Age 120 processing Policy Charges No policy charges or surrender charges, are taken out of the policy cash value on and after the policy anniversary at attained age 120 of the younger insured. Payment At this point, payment is only accepted if required under a grace period provision. 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 120 of the younger insured. Extension of Maturity Provision The Extension of Maturity Provision is available for issue ages of for both insureds. This provision will provide (in accordance with any applicable state variations) the continuation of a policy s face amount beyond maturity, the policy anniversary at attained age 120 of the younger insured, provided the policy remains in force to attained age 120 of the younger insured. The Extension of Maturity Provision is included without additional underwriting on all contracts. There is no charge for this provision. The death benefit at attained age 120 of the younger insured for Death Benefit Options A and B will be the greater of: the face amount of the base policy plus the additional amount of coverage provided by certain rider in force at maturity; or 100% of the cash value. For issue ages (of either insured) the death benefit will be 100% of the cash value. This means that not only must the policy remain in force to attained age 120 of the younger insured, but that there also must be a positive cash value. negative cash values If the JCCR is in effect, negative policy cash value may develop. In such situation no negative interest is charged to this balance. However, before positive cash values can develop, the policy owner must pay back this negative balance. The net amount at risk is not affected by the negative cash value. 5

8 6 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 net cash surrender value is not sufficient and neither the five-year no-lapse monthly guarantee nor the JCCR are in effect, then the policy will enter the 62-day grace period. At this point the customer must pay at least the lesser of: 1. The amount necessary to restore the JCCR (if applicable) 2. The amount needed to restore the five-year no lapse (if applicable) 3. The amount needed to restore a positive cash surrender value Notification of grace period and lapse is mailed to the policy owner and any assignee(s). Policy change Face Amount Changes The policy owner can increase or decrease the policy face amount. Face amount changes will have an impact on the duration of the JCCR-based, no-lapse guarantee. Increases in Face Amount A policy owner may increase the face amount on any monthly anniversary. Each face increase has its own target premium and its own surrender charge and is based on attained age and current risk class of each insured. Any increase in face amount is subject to the following conditions: 1. Proof of insurability on 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 $50, The older 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 on any monthly policy anniversary. For any decrease during the first 12 months after the policy date (or 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 $250,000. Unless otherwise requested in writing, a requested face decrease would be processed in the following order: 1. Previous underwritten increases, starting with the most recent increase; 2. The face amount of a Scheduled Face Increase Option; 3. The face amount of the original base policy, then any face amount acquired from the Death Benefit Option change. 4. Surrender charges assessed, if applicable. Death Benefit Option Changes Death Benefit Option (DBO) changes are allowed after the first policy anniversary until maturity of the younger insured. The effective date is the monthly anniversary on or following the date the request is received. The net amount at risk must remain the same after the DBO change is exercised, which will result in a face amount adjustment. MetLife reserves the right to require underwriting for death benefit option changes. Certain DBO changes will terminiate the JCCR no-lapse guarantee. As a result of a death benefit change you may have to go through underwriting. Change from Option A to Option B If the contract is changed from DBO A to DBO B, then the policy face amount is decreased so that the policy death benefit remains the same as before the change. This decrease will incur a surrender charge, if applicable, and cannot reduce the policy face amount below the minimum of $250,000. A change from DBO A to DBO B will terminate the JCCR. Any prior face increases from certain policy riders will be reduced or eliminated prior to reducing the policy face amount. If a policy has the Return of Premium Rider (RPR), increases to the RPR benefit will no longer occur. Change from Option B to Option A If the contract 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.

9 Riders Joint Coverage Continuation Rider (JCCR) This rider provides the secondary no-lapse guarantees that the policy will remain in force even if the policy s cash surrender value goes to zero, subject to rider conditions and limitations. Any riders attached to the policy would also remain in force subject to that specific rider s rules. Certain requirements (described below) must be met to keep this rider in effect. The JCCR guarantees the policy death benefit only, not the policy cash value or cash surrender value. Availability This rider can only be elected at issue and is available to all ages and risk classes. This rider is not available with the Return of Premium Rider (RPR) or the Modified Surrender Rider (MSR). State restrictions may apply. This rider is only available with DBO A. Rider Charges There is a charge for this rider. This charge is assessed as an additional unit load per thousand of face amount assessed against the policy s cash value and is charged in all years. Provisions to Keep JCCR in Effect Joint Coverage Continuation Value To determine the status of the JCCR, a secondary account, called Joint Coverage Continuation Value (JCCV), is established. This monitoring account has no value to the client and serves only the purpose of monitoring the JCCR status. All charges associated with the JCCV are guaranteed as is the interestcrediting rate. Guarantee Status JCCR will provide the policy secondary no-lapse guarantee for as long as all the following conditions are met: the Required Minimum First Year JCCR premium amount is paid within the first-policy year; and the JCCV balance is greater than zero; and the JCCV balance is greater than the current loan balance on the base policy. Net Death Benefit is greater than zero. The DBO remains Option A. Projecting the Duration of the JCCR Guarantee The policy holder annual benefit statement will reflect the projection of how long the JCCR guarantee will last into the future, based on planned premium amounts. Late payments or changes in the amount paid will affect the JCCR guarantee duration and may even lead to JCCR lapse. The First-Year Guarantee Grace Period makes premium timing in the first-policy year irrelevant in determining guarantee duration as long as it is received in the first year, by crediting it as if it were received on day one. This helps with lump sum and 1035 exchange timing, but applies to all premiums in the first year. The minimum monthly premium requirement must still be met in order to keep the rider in force during the first policy year. The 30-Day Renewal Grace Period provides a 30-day window where any premium coming into the contract will be credited as if received on time for JCCV purposes only. This feature is not contractual and is handled administratively. Any policy changes, withdrawals or loans that were not accounted for when the no-lapse premium was calculated will also have impact on the duration of the no-lapse guarantee. Therefore it is the best practice to run an inforce illustration to fully understand impact of any policy changes. JCCR Lapse Processing 62-Day Grace Period If any one of the conditions outlined in the Guaranteed Status section fail, then a grace period notice will be generated alerting the policy owner, with a copy to any assignee and the servicing producer, that the JCCR guarantee will lapse unless premium amounts needed to restore the JCCR are received within 62 days from the date of failure. 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. In addition, the policy owner will be notified of the reactivation period (nine months from the end of the rider grace period) provided the base policy remains in force. If no necessary action is taken before the expiry of the reactivation period then the JCCR will lapse. Once JCCR is lapsed, it cannot be reinstated. The JCCR can be cancelled at the request of the policy owner. Once JCCR is cancelled, it cannot be reinstated. 7

10 8 Estate Preservation Term Rider (EPTR) This four-year non-convertible term insurance rider provides an additional level death benefit at the second death. This can be used to pay extra estate taxes if the insureds are concerned about the Three-Year Look Back rule. Availability Available at issue only and both insureds must be insurable. It is subject to a $250,000 minimum face amount and capped at 125% of the base face amount. Rider Charges Monthly rates per $1,000 will be the same as the base policy and an additional expense charge per $1,000 will be added. Termination The rider terminates at the end of the four-year period or if any face decrease occurs. Scheduled Face Increase Option (SFIO) This option automatically increases the face amount for the first 10 policy years by an amount ranging from 1% to 5% of the base policy face. The dollar amount is chosen up front and can never be changed, only removed. The last increase allowed is at the anniversary following the older insured s attained age of 85. The maximum amount available for increase is 50% of the base face or $1,000,000, whichever is less. There is no surrender charge period associated with SFIO increases. Availability This rider is restricted to issue ages This option can only be elected at issue and is not available with the Return of Premium Rider (RPR). Rider Charges There is no additional cost for the SFIO other than that associated with the increased coverage as if it were a base policy increase at attained age. Termination This rider will terminate at the refusal of any planned increase or if there is a partial withdrawal, Death Benefit Option change or any face amount decrease. Waiver Of Specified Premium Rider (WSP) This rider allows the insured to select a specified monthly benefit that is credited as monthly policy premium if the insured, on which this rider is issued, becomes disabled as defined under this rider before the policy anniversary at attained age 65. Both insureds are eligible for the rider, each choosing their own specified amounts. 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 is restricted to issue ages 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 $3,000,000 (including all coverage in force with MetLife and other companies). If the base coverage has a Table rating (A through F), then the maximum equals $500,000. Rider Charges The charge for this rider varies, based on attained age. The rates are expressed as an amount per $100 of specified amount. 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 $10.00 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 either 100%, 150%, 200%, 250% or 300% of the standard WSP rating. 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 ½ of the base policy guideline annual premium without any riders. 3 Changes in WSP Benefits WSP monthly benefit can be increased only when requesting an increase in the base policy face amount and is subject to underwriting. A decrease can be requested at any time. No increase in WSP amount will be permitted should the rating of the increased base face amount portion be rated Table Rating G or higher. 3 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

11 If the specified face amount of the base policy is decreased after issue, a decrease in the WSP amount may be required to comply with tax code requirements. Rider Benefits Disability Beginning Before Age 60 After a continuous period of disability of six months, the monthly WSP benefit amounts will be credited to the policy as premiums until either the insured recovers or dies. However, if an insured s total disability that began prior to the policy anniversary at attained age 60 continues uninterrupted to age 65, all future monthly premiums will be credited to the policy as they become due. Disability Beginning Between Ages 60 and 65 After a continuous period of disability of six months, the monthly premiums will continue to be waived until the earlier of: The policy anniversary at the insured attained age 65; or, The insured s recovery from disability. All monthly policy charges continue to be deducted during disability, including the charges for WSP. Definition of Total Disability We will consider the insured totally disabled if he or she is unable to perform any and every duty of his or her regular occupation because of bodily injury or sickness originating after the rider becomes effective. However, after such a period of total disability has continued for 60 months, we will consider the insured totally disabled only if he or she is unable to perform any and every duty of any occupation for which he or she is reasonably fitted by education, training or experience. We will consider the total and irrecoverable loss of the sight of 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 in any occupation. Recurrent Total Disability If a subsequent period of total disability commences after a period of total disability, we will consider this subsequent period a continuation of the previous period unless: It is due to an entirely different cause; or The insured has performed all of the important duties of a gainful occupation for a continuous period of six months or more between such periods of total disability. If we consider the second period of disability as a continuation of the first, the six-month waiting period will not apply. Termination The rider will terminate at attained age 65 of the insured with the rider and on any date when the policy death benefit exceeds the maximum amount of $3,000,000. Policy Split Option (PSO) This option allows the policy owner to split the policy into two individual life policies, in the event of divorce or the full and permanent repeal of the unlimited marital deduction. New individual policies will be issued to both insureds without any optional riders from the original policy. The new policies will be issued to the insureds at their original underwriting class but COI charges will be based on each insured s attained age. All policy values and debts will be split in half. Availability This option, available only at issue, is automatically included on all policies when the two insureds are married and both issue ages are 18-75, inclusive, unless one life is uninsurable. State restrictions may apply. Rider Charges There is no charge for this rider. Option Exercise This option can be exercised if either: The Federal Tax Law is changed, resulting in either the elimination of the federal estate tax marital deduction with respect to both insureds or a reduction in the maximum federal estate tax bracket to a rate of 25% or less. Split request must be provided in writing within 12 months after the enactment date of either of these two tax law changes. In case of insured s divorce. This option must be requested in writing within 18 to 24 months after the final divorce decree. New Policies After the Split Each new policy will be a new current portfolio policy deemed appropriate by the Company at that time. Issue Date and Age At the time of the split, the new policies will be issued with a current date of issue. The issue age for each insured will be the current attained age of each. Termination The rider will terminate when the older insured reaches attained age 80. 9

12 10 Guaranteed Survivor Income Benefit (GSIB) This rider provides an option for receiving life proceeds in the form of an enhanced monthly income in lieu of lump sum death benefit proceeds. Availability Available only at issue, it cannot be added to an in-force policy. The issue ages of both insureds must be between 20 and 80; there is no age limit on the beneficiary. The base policy rating may not exceed Table F on either insured and GSIB is not available on cases with a flat extra. Not available on policies resulting from group conversions. If policy face amount is higher than $2,000,000, then the GSIB is available but applies only to the first $2,000,000 of death benefit paid. Rider Charges Monthly charge per $1,000 of eligible death benefit in force applies, up to the maximum allowable death benefit of $2,000,000. This charge is payable as long as the rider is in force up to attained age 100 of the younger insured. Charges vary by band, the insured s sex, issue age, rating class and smoker status. GSIB Benefits At the second insured s death, the beneficiary(ies) will have the choice to exercise GSIB. 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 second insured. Payments are monthly only. An 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 $2,000,000. Benefits from the Estate Preservation Term Rider and Return of Premium Rider are not eligible for GSIB benefits. 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 shown on the illustration; or % of the current life settlement option payouts at the time of GSIB exercise. GSIB must be elected within nine months of the second insured s death or 60 days after Company notification, whichever is later. Payment Options The following settlement options are available through the GSIB: year certain 4 2. Life only 3. 10, 15, 20-year certain and life 4. Life only with 1%, 2% or 3% escalation feature year certain and life with 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. Return of Premium Rider (RPR) Availability of this rider is limited. This rider increases the policy death benefit payable by any premiums paid, plus a stated interest rate, if requested by the policy owner, up to a predetermined dollar amount limit and excluding 1035 exchange amounts. (This includes any current balance of the prior loan from premium financing policies with other carriers that were subsequently replaced with Legacy Advantage SUL.) Option Date Availability Issue ages are restricted to The minimum face amount to have this rider is $3,000,000. It is available at or after the base policy issue date. This rider is available only at issue and on premium financing, qualified business cases and split dollar cases. This rider is not available in conjunction with JCCR, SFIO and DBO B. Rider Charges The RPR death benefit will have a COI charge and an additional monthly coverage expense charge. The RPR death benefit does not have any surrender charges, monthly per-thousand expense charges or other expense charges. 4 The only option available to a non-natural-person beneficiary (i.e., 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.

13 RPR Death Benefit Amount The RPR death benefit amount consists of: Any current balance of the prior loan from premium financing policies with other carriers that were subsequently replaced with Legacy Advantage SUL; plus All premiums paid to date (except for any 1035 exchange premiums); minus Any excluded amounts at the request of the policy owner; minus Any withdrawals; minus Any RPR death benefit adjustments at the request of the policy owner; plus Any RPR interest accrued on premiums paid. Prior Loans If Legacy Advantage SUL is issued as a result of the replacement of an existing premium financing policy with an existing loan arrangement, then the initial RPR death benefit amount will equal the balance of the existing bank loan as of the issue date of Legacy Advantage SUL. Excluded Amounts The policy owner may specify any portion of the annualized premium amount to be excluded from the RPR increase. This amount will be specified at issue and may be changed each year during the period of 30 days prior to 30 days after the policy anniversary. Interest Paid The policy owner selects the RPR interest rate credited. This rate must be specified at issue. It can be any rate between 0% and the lesser of either 10% or the rate set by the Company. The RPR rate can be changed at each policy anniversary and will be subject to additional underwriting if the requested rate is greater than the rate currently in effect. Maximum RPR Death Benefit The maximum RPR limit is the lesser of: A RPR net amount at risk projection calculated at issue to determine the total amount of RPR death benefit anticipated based on the projected premium and bank loan interest rate Multiple Cap equal to three times the initial base policy face amount at issue for most ages and lower for older ages. RPR Death Benefit at Age 120 of the Younger Insured No further increases in the RPR death benefit will take place beyond the policy anniversary at attained age 120 of the younger insured. RPR Death Benefit Adjustments The RPR death benefit may be reduced at the discretion of the policy owner, subject to the terms of the collateral assignment agreement. rpr and Base Policy Withdrawals Partial withdrawals from the base policy will cause the amount of the RPR death benefit to decrease dollar-for-dollar for each dollar withdrawn. rpr and Base Policy Loans Base policy loans will not affect the amount of the RPR death benefit. Changes in Policy Death Benefit Options Change of the policy Death Benefit Option from A to B will result in the freeze of the current RPR death benefit amount. No future RPR death benefit increases will be allowed. Termination RPR will terminate when withdrawals equal to the full benefit associated with this rider are made or the death benefit associated with this rider is reduced to zero. Modified Surrender Rider (MSR) Availability of this rider is limited. This rider waives the policy surrender charges for the base policy s initial amount of insurance on policies that are fully surrendered during the first five policy years, except if the policy is surrendered as part of a replacement or 1035 exchange, either internal or external. Surrender charges associated with any increases or decreases in the policy face amount or partial cash withdrawals are not waived. Adding this rider results in spreading out the target-based commission payments over the first five policy years. 11

14 Availability This rider is available only on policies issued with premium financing or under certain large premium corporate plans of deferred compensation and private split dollar. This rider is not available on policies issued as the result of a group conversion. It is not available with the JCCR. It cannot be added after issue. Rider Charges There will be a one-time administrative fee of $120 charged to issue this rider and that amount will be included in the policy s minimum first-year total premium. Option Exercise Cash Surrender If a policy is surrendered for cash within the first five years from the policy date, the policy s cash surrender value will be equal to: The cash value as of the date of surrender; less Any surrender charge applicable to any face increase on the policy, less monthly coverage expense charge increases; less Any outstanding policy loan balance. MSR Limitations Under certain circumstances, as described below, the MSR cannot be exercised. Specifically, if: The policy is replaced under the Internal Revenue Code Section 1035; or A new life insurance policy on the life of an individual insured by the current policy containing this rider was purchased within six months prior to the surrender of the policy containing this rider; or A new life insurance policy on the life of an individual insured by the basic policy is intended to be purchased within 12 months after the date of surrender of the policy containing this rider. Commissions This rider is non-commissionable and there is no target premium associated with it. However, when this rider is elected, a first-year commission for premiums paid up to the target premium will spread out over five policy years. Any commissions on premiums paid above the target premium will be paid immediately. Termination Once issued, this rider cannot be cancelled by the policy owner or the Company. It will continue until its termination at the end of the fifth policy year. 12

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16 The policy s five-year no-lapse guarantee remains in force provided required premiums are paid and values are not taken out of the policy. If the guarantee terminates, the policy will stay in force for as long as its cash value is sufficient to pay for the policy s benefits. Paying additional premiums will increase the policy s cash value. The optional Joint Coverage Continuation Rider (JCCR) 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 certain conditions and limitations. If neither the five-year no-lapse monthly guarantee nor the JCCR are in effect, then the policy will not lapse as long as net cash surrender value is sufficient to pay the monthly deductions when due. 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. Legacy Advantage Survivorship Universal Life is issued by MetLife Investors USA Insurance Company Irvine,CA, (policy form #5E-32-05) and in New York only by Metropolitan Life Insurance Company New York, NY (policy form #1E NY). Both are MetLife companies. All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company. February 2012 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 MetLife Investors USA Insurance Company 5 Park Plaza, Suite 1900 Irvine, CA Metropolitan Life Insurance Company 200 Park Avenue New York, NY metlife.com BDUL22288 L [0213] 2012 METLIFE, INC. PEANUTS 2012 Peanuts Worldwide FPOXX-XXX-XXXX XX%