portfolio with 10-pay whole life insurance

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1 A Type Retirement of Piece Strategy for Audience Individuals Headline Taming a 1 bear line market (34 42 pt. size) Optional in retirement supporting subhead 2 Adding lines max. flexibility (20 24 to your pt. size) retirement income portfolio with 10-pay whole life insurance Needs-based Retirement Strategies

2 Your financial strategy probably includes saving for retirement, but how does it address the issues concerning income distribution planning during retirement? Contents 4 The impact of a bear market during retirement 6 Dr. Alexander s retirement account 8 How can you prepare for a bear market in retirement today? 10 Whole life insurance vs. alternative options 12 Is this strategy right for you? The decision to purchase life insurance should be based on long-term financial goals and the need for a death benefit. Life insurance is not an appropriate vehicle for short-term savings or short-term investment strategies. While the policy allows for loans, you should know that there may be little to no cash value available for loans in the policy s early years. The information in this brochure is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. NOT A BANK OR CREDIT UNION DEPOSIT OR OBLIGATION NOT FDIC OR NCUA INSURED NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY NOT GUARANTEED BY ANY BANK OR CREDIT UNION

3 The changing retirement landscape Today, many people are finding that the traditional means of funding a comfortable retirement can no longer be relied upon. The caps placed on qualified retirement plan funding, the minimal income replacement percentage of Social Security and the dwindling number of employer-provided pension plans mean that a much greater portion of your retirement savings must come from other sources. What makes this even more of a challenge is the fact that the more you earn, the more you need to save. Individuals generally need 75% to 85% of their pre-retirement income to live comfortably in retirement. The chart below illustrates how the percentage of pre-retirement income replaced by Social Security retirement income benefits decreases as your income level increases. Projected Social Security retirement benefits based on pre-retirement income level $300,000 $250,000 income $200,000 $150,000 $100,000 $50, % 28% 20% 15% 12% Pre-retirement income level Difference between Social Security Benefit and current income Social Security Retirement Income Estimated Social Security retirement income benefit calculated on 10/1/2010 using the Social Security Quick Calculator at 3

4 The impact of a bear market during retirement Taking income from an equity based retirement account during a period of negative returns can have a significant adverse effect on the future value of the account. Many individuals with the necessary risk tolerance and long-term investment horizon take advantage of the upside potential of equity investments in accumulating assets for retirement. However, equity markets may be subject to periods of volatility. This raises the question: What would happen if you retire at a time when stock and bond prices are declining? What effect could this have on your retirement accounts and what can you do to minimize the impact on your retirement income stream? Taking income from an equity based retirement account during a period of negative returns can have a significant adverse effect on the future value of the account. This may ultimately impact the amount of income you have available during retirement, as well as the amount of your legacy to your family. It s important to include a conservative element in your retirement income strategy now that will give you the future financial flexibility to more effectively manage your retirement income during changing economic conditions. The following case study illustrates how effective planning for the inevitable bear markets that occur over time can help to preserve the long-term value of equity based retirement accounts. 4

5 Meet Dr. Ava Alexander Dr. Ava Alexander plans to retire when she turns age 65. She will have accumulated $2 million dollars in qualified plan assets that she will roll-over into an individual retirement account (IRA) when she retires. Dr. Alexander expects to immediately begin taking annual distributions of $150,000 from the IRA at the start of each year to supplement her other sources of retirement income. She will invest the account in a diversified portfolio of stocks because she believes that investing in the stock market will give her the best long-term return on her account, even if she needs to ride out a couple of bear markets. 5

6 Dr. Alexander s retirement account Let s take a look at Dr. Alexander s hypothetical retirement account, assuming that she takes $150,000 of income from the account at the beginning of each year and her account earnings rates are equal to the actual performance for the S&P 500 Index * from 1973 to The average gross return of the S&P 500 during this 15-year period was over 11.28%. There were four years when returns were negative and during the first two years the index declined in value by more than 36%. This time period was selected to illustrate the impact that varying returns can have on a retirement account during a period when income distributions are being taken. The distributions of income will be taxable as ordinary income to Dr. Alexander, who is in a 33% marginal income tax bracket. As you will note, Dr. Alexander took the $150,000 income distribution from the account each year and she still had over $900,000 left in the account at the end of the 15-year period. Dr. Alexander s retirement account Age Beginning of Balance Systematic Withdrawal on 1/1 Post Withdrawal Balance S&P 500 Return End of Balance 65 $2,000,000 $150,000 $1,850, % $1,576, ,576, ,000 1,426, % 1,048, ,048, , , % 1,233, ,233, ,000 1,083, % 1,340, ,340, ,000 1,190, % 1,103, ,103, , , % 1,016, ,016, , , % 1,027, ,027, , , % 1,149, ,149, , , % 950, , , , % 969, , , , % 1,003, ,003, , , % 905, , , , % 998, , , , % 1,006, $1,006,123 $150,000 $856, % $900,642 Assumptions: Beginning value $2 million; $150,000 Systematic Withdrawal, $100,000 Income Net Taxes 33%; S&P 500 Historical Performance from ; The S&P 500 Index is a list of securities frequently used as a measure of U.S. stock market performance. These investment results and account values are hypothetical. They do not reflect fees and charges associated with an actual investment. Had fees and charges been reflected, the values would be lower. You cannot invest directly in an Index. * The Standard & Poor s 500 Index is an unmanaged measure of common stock total return performance in the U.S. 6

7 An alternative approach Let s take a look at an alternate approach to see if Dr. Alexander could achieve a better result by modifying her distribution strategy. Under this approach, she will avoid taking distributions from the retirement account in those years that follow a negative return on the account assets. By avoiding distributions in these years, the impact of the negative market returns on her account over the period would be far less. In fact, by reducing her distributions in the account by a total of $500,697, Dr. Alexander s account value at the end of the 15-year period has increased from $900,642 to $3,353,353. But this raises a question of where will Dr. Alexander get the supplemental retirement income in those years where she avoided taking income from her retirement account. By reducing her distributions from the retirement account by a total of $500,697, Dr. Alexander s account value at the end of the 15-year period has increased from $900,642 to $3,353,353 an increase of $2,452,711 or about 272% Dr. Alexander s retirement account alternate approach Age Beginning of Balance Systematic Withdrawal on 1/1 Post Withdrawal Balance S&P 500 Return End of Balance 65 $2,000,000 $150,000 $1,850, % $1,576, ,576, ,576, % 1,158, ,158, ,158, % 1,590, ,590, ,000 1,440, % 1,782, ,782, ,000 1,632, % 1,512, ,512, ,512, % 1,612, ,612, ,000 1,462, % 1,734, ,734, ,000 1,584, % 2,077, ,077, ,000 1,927, % 1,833, ,833,276 77, ,756, % 2,126, ,126, ,000 1,976, % 2,419, ,419, ,000 2,269, % 2,408, ,408, ,000 2,258, % 2,982, ,982, ,000 2,832, % 3,359, $3,359,901 $172,303 1 $3,187, % $3,353,353 Assumptions: Beginning value $2 million; $150,000 Systematic Withdrawal, $100,000 Income Net Taxes 33%; S&P 500 Historical Performance from ; The S&P 500 Index is a list of securities frequently used as a measure of U.S. stock market performance. These investment results and account values are hypothetical. They do not reflect fees and charges associated with an actual investment. Had fees and charges been reflected, the values would be lower. You cannot invest directly in an Index. 1 These values represent the required minimum distribution from the IRA in that year under federal tax law. Minimum distributions based on the total value of all IRA assets will be required beginning in the year following the year that the account owner turns age 70 ½. Failure to make the full required minimum distribution will result in an excise tax equal to 50% of the shortfall. 7

8 How can you prepare for a bear market in retirement today? In order to implement this strategy, Dr. Alexander will need an alternate source of income that is not significantly impacted by short-term market volatility. Options might include certificates of deposit (CDs) and other conservative savings vehicles. These types of assets may offer lower overall investment returns over the long run when compared to equities, but they represent a stable source of income that is essential to her retirement income distribution strategy. When Dr. Alexander was in her mid-40 s, her financial professional recommended that she purchase additional life insurance death benefit protection. A whole life insurance policy with a limited premium payment period could provide the pre-retirement income protection that she needed, and accumulate cash value to provide supplemental retirement income. He suggested she purchase a whole life insurance policy with a 10-year premium payment period because it would be fully paid-up after 10 years and accumulate cash values more rapidly than whole life policies with longer premium payment periods. A 10-pay whole life policy is a good choice for individuals who want to fully fund their policy during their peak earning years. Whole life insurance offers guaranteed policy cash values and the potential for additional cash value funded with policy dividends, which are not guaranteed. The policy cash values can provide a stable source of supplemental retirement income that is not impacted by short-term market volatility. A death benefit plus cash accumulation Let s assume at age 45, Dr. Alexander purchased a $1,000,000 whole life policy with premiums payable for 10 years to age 55. She paid the guaranteed annual premium of $36,160 for 10 years, after which the policy is fully paid-up. In addition to meeting her protection needs, the policy will accumulate cash value on a tax-deferred basis for retirement. During retirement, Dr. Alexander will take partial surrenders of cash value from the policy in those years that she wants to avoid taking income from her retirement account. Since the partial surrenders illustrated represent a return of her cost basis in the policy, these payments will be income tax-free. 2 This means that a $100,000 partial surrender from her policy is equivalent to a $150,000 withdrawal from her retirement account on an after-tax basis, assuming a 33% marginal income tax bracket. Whole life insurance can provide tax-deferred accumulation of policy cash values and tax-free retirement income via partial surrenders up to the policy cost basis. In addition, the income tax-free policy death benefit can protect your income during your working years, and ultimately assure your legacy to your family. These advantages make whole life insurance a good choice for individuals who can benefit from the protection, cash accumulation and tax advantages that the product offers. An additional layer of protection You can add an additional layer of protection with the optional Waiver of Premium Rider. MassMutual will waive your policy s premiums if you, as the insured, become totally disabled and cannot work. If your premiums are waived due to disability, your policy s cash value will continue to grow at the same rate as if you were still paying the premiums. The Waiver of Premium Rider is available for an additional cost. 2 Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty. Access to cash values through borrowing or partial surrenders will reduce the policy s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. 8

9 Dr. Alexander s whole life policy Whole life with premiums payable for 10 years Female Age 45, Select Preferred Non-Tobacco $1,000,000 Face Amount premium, including Waiver of Premium Rider: $36,160 Age End Surrender 3 Net Value 4 Net Death Benefit 4 66 $0 $751,170 $1,503, , ,090 1,344, , ,420 1,187, ,697 1,225, ,025 1,265, , ,793 1,121, ,522 1,158, ,240 1,197, ,045 1,237, , ,247 1,196, ,525 1,236, ,819 1,278, ,124 1,321, ,459 1,365, $0 $986,100 $1,411,134 3 Partial surrenders of $100,000 during years following negative performance. Partial surrender at age 75 is less than $100,000 to reflect required minimum distribution from the IRA of $77,000 in that year. The remaining $73,000 of gross income is equivalent to a $49,000 tax-free partial surrender from the policy, assuming a 33% marginal tax bracket. 4 These values include dividends which are neither estimates nor guarantees, but are based on the 2011 dividend scale. The dividend scale is reviewed annually and it is likely that dividends in future years will be lower or higher depending on the Company s actual experience. For this reason, we strongly recommend that you look at a hypothetical lower scale illustration available upon request. 9

10 Whole life insurance vs. alternative options Buying whole life insurance was one way for Dr. Alexander to help meet both her pre-retirement protection and supplemental retirement income needs, but how does this compare to alternative options that were available to her? What if Dr. Alexander had purchased a less expensive term life insurance policy to meet her protection needs, and invested in CDs or other conservative savings vehicles to provide her supplemental retirement income? Let s assume that instead of purchasing the 10-pay whole life policy at age 45, Dr. Alexander purchased a $1,000, year term life insurance policy with guaranteed premiums to age 65. She then invested the difference between the premium and the term premium in a taxable account each year for the first 10 years (until age 55). For the next 10 years (to age 65) the premium was withdrawn from that taxable account. Let s further assume the taxable account earned 5% (before taxes) each year until she turned age 80. The annual premium for the 20-year term policy is $1,665. The whole life 10-pay premium was $36,160. The difference of $34,495 was invested annually over the initial 10 years. Over the next 10 years, the $1,665 annual term premium was withdrawn from the taxable account to keep the term coverage in place until age 65. Let s take a look at how these two alternatives compare at Dr. Alexander s age 65 and beyond. Whole life insurance vs. taxable account & term insurance Age End Surrender 5 Dr. Alexander s whole life policy Net Value 4 Net Death Benefit 4 Side Fund Account Withdrawals 5 Taxable account & term insurance Side Fund Account Balance 6 Term Policy Death Benefit 66 $0 $751,170 $1,503,301 $0 $576,072 $ , ,090 1,344, , , , ,420 1,187, , , ,697 1,225, , ,025 1,265, , , ,793 1,121, , , ,522 1,158, , ,240 1,197, , ,045 1,237, , , ,247 1,196,345 49, , ,525 1,236, , ,819 1,278, , ,124 1,321, , ,459 1,365, , $0 $986,100 $1,411,134 $0 $402,911 $0 Whole Life Legacy 10 Pay Female 45 Select Preferred Non-Tobacco $1,000,000 Face Amount $36,160 Premium. Vantage Term 20 Female 45 Select Preferred $1,000,000 Face Amount $1,665 Premium. Assumes term policy is not renewed at age 65 when the guaranteed level-premium period ends and the annual premium increases. All insurance policy premiums include the cost of Waiver of Premium Rider. 10

11 Summary While the buy term and invest approach may provide the income that Dr. Alexander needs, under the assumptions made in this comparison, she would end up with more cash and a larger net legacy to her family at death in every year illustrated by purchasing the whole life policy. The charts below illustrate these differences at her ages 66 and 80. What if Dr. Alexander had purchased a less expensive term life insurance policy to meet her protection needs and invested in CDs or other conservative savings vehicles to provide her supplemental retirement income? or account value Legacy at death $1,200,000 $1,600,000 $1,000,000 $800,000 Whole life 4 Term with side fund $1,400,000 $1,200,000 $1,000,000 Whole life 4 Term with side fund $600,000 $800,000 $400,000 $200,000 $600,000 $400,000 $200,000 0 Age 66 Age 80 0 Age 66 Age 80 5 Account withdrawals or partial surrenders of $100,000 taken during years following a negative return on IRA assets. Age 75 value reflects the required minimum distribution from the IRA of $77,000 and the remaining $73,000 of gross income that is equivalent to an after-tax value of $49,000 assuming a 33% marginal tax bracket. 6 Taxable side fund account based on 5% annual return after expenses and an income tax rate of 33%. 11

12 Is this strategy right for you? Whole life insurance offers guaranteed policy cash values and the potential for additional cash value funded with policy dividends. The policy cash values can provide a stable source of income that is not impacted by short-term market volatility. This supplemental retirement income strategy could be right for you if: You have a protection need that life insurance can meet and you understand the role of life insurance as part of your overall plan. You recognize the value of a product with guarantees and cash values that you can access on a tax-advantaged basis for supplemental retirement income. You want to assure your legacy to your family by providing an income tax-free death benefit. 12

13 Whole Life Legacy 10 Pay Basic Life Insurance Illustration Prepared for: Dr. Ava Alexander Female, Age 45 Presented by: Dr. Alexander's Financial Professional MA November 22, 2010 CRN: Page 1 of 14

14 Whole Life Legacy 10 Pay Life Insurance Illustration Illustration Summary Prepared for: Underwriting Class: Client Information Dr. Ava Alexander, Female, Age 45 Select Preferred Non-Tobacco All underwriting classes are subject to approval. Policy: Generic Policy Name: Policy Form Number: Policy Information Limited Payment Whole Life with Premiums Payable for 10 s Whole Life Policy WL-CT-2007 Initial Coverage Information Base Policy Face Amount (BPFA): $1,000, Initial Death Benefit: $1,000, Initial Premium Information Premium Payment Mode: Base Premium: Waiver of Premium (WP) Premium: Accelerated Death Benefit Rider: Transfer of Insured Rider: $35, No Premium Charge No Premium Charge Initial Premium: $36, Initial Dividend Option Dividends used to purchase Paid-Up Additions. Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends will change all Non-Guaranteed values shown in this illustration. Important Information This illustration assumes that the currently illustrated non-guaranteed elements will continue unchanged for all years shown. This is not likely to occur, and actual results may be more or less favorable than those shown. Changing the premium payment mode may increase the overall cost of the policy. Please see Premium Payment Options in the Narrative Summary for more information. As illustrated, this policy would not become a Modified Endowment Contract (MEC) under the Internal Revenue Code based on the assumptions in this illustration. Please see the IMPORTANT TAX INFORMATION section of the Narrative Summary for more information. Policy Changes Your Illustration may show Policy Changes such as face amount decreases, dividend option changes, the Alternate Payment Option (APO) strategy, loans, surrenders or changes to certain Rider premiums. Policy changes are not automatic. You must submit a request to our Home Office. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 2 of 14

15 Whole Life Legacy 10 Pay Life Insurance Illustration Narrative Summary What This Illustration Shows This illustration describes the important features of this MassMutual Whole Life Legacy 10 Pay insurance policy and shows values over time on a guaranteed and non-guaranteed basis. It is designed to help you understand how this policy works. It is not a projection of how it will perform. The following pages provide a summary (and year-by-year figures) for required premiums, cash surrender values and death benefits, anticipated out-of-pocket premium payments, and other values for this policy. Many of the current values contained in this illustration depend on non-guaranteed dividends. What is Whole Life Legacy 10 Pay? IMPORTANT INFORMATION ABOUT DIVIDENDS Whole Life Legacy 10 Pay is a permanent life insurance policy providing a guaranteed face amount. Premiums are payable for 10 years. The duration of premiums for riders varies according to the terms of the rider. The policy provides for cash value accumulation and for the payment of dividends as may be determined by the Company. As a MassMutual participating policyholder, you are eligible to receive an equitable portion of the Company's earnings, known as "divisible surplus", in the form of policy dividends. The surplus from which dividends are paid comes primarily from three sources: 1. Mortality Savings - The favorable margin between actual death claim experience and the amount expected based on the mortality table used to determine the premium. 2. Investment Earnings - Earnings on Company investments that exceed the guaranteed interest required to build up death benefit reserves and meet contractual obligations. The guaranteed interest rate for a particular policy or rider is set at issue and does not change over the life of the policy. The guaranteed interest rate is reflected in the policy's guaranteed cash value increases. 3. Expenses - The difference between actual expenses incurred and the expenses assumed in determining the premium. This illustration assumes that the dividend option is Paid-Up Additions for all years shown. The annual dividend, if any, is used to buy additional level paid-up life insurance. "Paid-up" means that no further premiums are required on the additional life insurance. This insurance will be participating, as well. Paid-up additions may be surrendered for their cash value as long as they are not being used as collateral for policy debt. Non-guaranteed values are based on the 2011 dividend scale. This illustration assumes a policy with an adjustable policy loan interest rate provision. It is important to understand that the payment of dividends is not guaranteed; dividends are a reflection of conditions that affect the Company and the cost of insurance. Dividend performance may, and most likely will, change over time. For this reason we strongly recommend that you look at an illustration showing a lower dividend scale to see the impact that this would have on policy values. This illustration is neither a projection nor an estimate of future results. Transfer of policy ownership to a qualified pension or profit sharing plan could result in different dividends. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 3 of 14

16 Whole Life Legacy 10 Pay Life Insurance Illustration Narrative Summary IMPORTANT TAX INFORMATION As illustrated, this policy would not become a Modified Endowment Contract (MEC) under the Internal Revenue Code based on the assumptions in this illustration. Changes to the policy could cause the policy to become a MEC or change the year that the policy is illustrated to become a MEC. A Modified Endowment Contract (MEC) distinguishes between a policy purchased primarily for death protection and a policy purchased primarily for the tax advantages afforded to life insurance cash values. Once a policy is classified as a MEC, it receives less advantageous federal income tax treatment (see below). To determine if a contract is a MEC, a premium limit (the MEC limit) is established for the maximum amount of premium allowed during the first seven years, based upon rules set by the Internal Revenue Code. Under the MEC test, a MEC results if the cumulative amount paid at any time in the first seven years exceeds the cumulative MEC limit applicable in that policy year. Certain changes to the policy can subject the policy to MEC testing beyond the first seven years or can cause premiums already paid to be re-tested. Surrenders and distributions are subject to income tax to the extent they exceed the policy's cost basis. If the policy is a MEC, distributions and loans are taxable to the extent of gain and are subject to a 10% tax penalty. Death benefit proceeds from this policy are generally excludable from the beneficiary's gross income for income tax purposes (IRC Section 101(a)(1)). Policy loans on non-mec policies are not treated as distributions or subject to income tax when taken (IRC Section 72). However, if the policy is not held until death, taxes are generally due on surrender or lapse and may in fact exceed the policy's Net Surrender Value if prior loans and surrenders were extensive. The information provided above is not written or intended as specific tax advice and may not be relied on for purposes of avoiding any federal tax penalty. Individuals are encouraged to seek advice from their own personal tax or legal counsel. Additional Riders Illustrated Accelerated Death Benefit Rider (ABR) Transfer of Insured Rider (TIR) The Accelerated Death Benefit rider allows the policyowner to receive an advance of policy death benefits when MassMutual receives satisfactory proof the insured has a terminal illness, expected to result in death within twelve months. The funds may be used for any purpose. This rider terminates upon acceleration. There is no cost for the addition of this rider however there is a fee if the rider is exercised. The Transfer of Insured Rider provides the policyholder with the right to transfer or exchange a new insured in place of the current insured under the policy, provided an insurable interest exists between the owner and the substitute insured, the new insured is not older than age 75 and evidence of insurability is provided. There is no annual premium for this rider however there is a cost due if the rider is exercised. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 4 of 14

17 Whole Life Legacy 10 Pay Life Insurance Illustration Narrative Summary Waiver of Premium Rider (WP) This rider provides for the waiving of policy premiums for certain periods and under certain circumstances, if the insured becomes totally disabled, as defined in the rider prior to age 60 and remains disabled for at least six months. Temporary waiver benefits also are available for total disability beginning after age 59, but prior to age 65. Premiums are payable to age 65 or the end of the premium paying period of the policy, if earlier. The waiver of premium amount shown assumes no waiver of premium coverage under other individual policies in this Company. The availability of this rider is subject to Company limits. Interest Adjusted Cost (IAC) Comparison Index Life Insurance Surrender Cost Index Life Insurance Net Payment Cost Index 10 $6.08 $33.70 Policy 20 N/A N/A The Interest Adjusted Cost Comparison Indices provide two means of comparing the relative cost of similar plans of insurance issued by the same company or by different companies. A low index number represents a lower cost than a higher one. These indices reflect the time value of money by applying a 5% interest factor to policy premiums, dividends, and for the surrender cost index, the 10 and 20 year cash values. The dividends used in calculating these indices are based on the current year's scale and are neither guarantees nor estimates of future dividends. The indices do not consider: (1) the value of the services of an agent or company; (2) the relative strength and reputation of the Company and its actual dividend performance; or (3) differences in the policy provisions. Additional Information About This Illustration The fully allocated expense method is used to allocate overhead expenses for all illustrations. Net Outlay is based on a tax bracket of 28%. This illustration does not recognize the time value of money and should not be used to compare policy costs. See IAC section of the Narrative Summary page for policy cost information. Column Heading Definitions Age Dividend Net Outlay Outlay The age of the insured at the end of the policy year. The total amount of annual dividend payable. These values are based on the illustrated dividend scale and are not guaranteed. This is the out-of-pocket cost, which is comprised of the contract premium adjusted for any dividends, paid-up additions surrendered, loans taken, loan repayments made or taxes due. The annual outlay at the beginning of the policy year. This is the out-of-pocket cost, which is comprised of the contract premium adjusted for any dividends, paid-up additions surrendered, loans taken and loan repayments made. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 5 of 14

18 Whole Life Legacy 10 Pay Life Insurance Illustration Narrative Summary Surrender Basic Policy Value Value of Additions Contract Premium Guaranteed Value Guaranteed Death Benefit Net Value Net Death Benefit Paid-Up Additions Value Value of Additions Death Benefit Paid-Up Additions Paid-Up Insurance The amount of dividends used and/or paid-up additions surrendered. These values are based on the illustrated dividend scale and are not guaranteed. The cash value of the base policy. This does not include cash value from Paid-Up Additions (PUA) or any other policy riders. The total cash value at the end of the year of the paid-up additions purchased by dividends. These values are based on the illustrated dividend scale and are not guaranteed. The gross premium that is required to be paid under the policy for the benefits shown in this illustration. The cash value which is guaranteed under this policy. The amount of death benefit which is guaranteed to be payable for this policy at death. The cash value at the end of the policy year reduced by outstanding loans and loan interest. These values are based on the illustrated dividend scale and are not guaranteed. The death benefit of the policy at the end of the policy year reduced by outstanding loans and loan interest. These values are based on the illustrated dividend scale and are not guaranteed. The death benefit at the end of the year of additional paid-up insurance purchased with dividends. These values are based on the illustrated dividend scale and are not guaranteed. The total cash value including all guaranteed and non-guaranteed values. These values are based on the illustrated dividend scale and are not guaranteed. The total cash value at the end of the year of the paid-up additions purchased by dividends. These values are based on the illustrated dividend scale and are not guaranteed. This is the amount which would be payable if death occurred at the end of the policy year. These values are based on the illustrated dividend scale and are not guaranteed. The death benefit at the end of the year of additional paid-up insurance purchased with dividends. These values are based on the illustrated dividend scale and are not guaranteed. The amount of fully paid-up insurance which could be purchased if the policy were converted to a fully paid-up policy. These values are based on the illustrated dividend scale and are not guaranteed. The number of years the policy is assumed to have been in force. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 6 of 14

19 Whole Life Legacy 10 Pay Life Insurance Illustration Narrative Summary Key Terms Used in the Illustration Death Benefit Midpoint Assumptions Attained Age The first day of the policy year. All premium payments and other outlays are assumed to be made at the beginning of the year. The last day of the policy year. Dividends are assumed to be credited on this date. All cash values are shown as of the end of the policy year. The amount payable upon death of the insured. Values are calculated assuming that the dividends are reduced by 50% and any policy charges included are an average between the current and guaranteed charges. Issue age plus policy duration years. Premium Payment Options: You may pay premiums once a year (annually), twice a year (semiannually), four times a year (quarterly) or twelve times a year (monthly). You may pay premiums twelve times a year (monthly) only by pre-authorized electronic transfer. If you pay annual premiums by installments, there will be an additional charge. The additional charge is shown in dollars and as annual percentage rates in the table below. Premium Frequency Premium Payment (Including Installment Payment Charge) Number of Payments Per Premium Per Additional Charge (In Dollars) Additional Charge (As the Percentage Rate or APR) $36, $36, $ Semiannual $18, $37, $ % Quarterly $9, $37, $1, % Monthly $3, $37, $1, % Consider Additional Coverage In some cases, the cost per unit of the Whole Life Legacy 10 Pay policy may be lower with a higher Base Policy Face Amount. You should consult with your agent about whether applying for more coverage is appropriate. Additional underwriting requirements may apply to larger face amounts, and premiums may be higher. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 7 of 14

20 Whole Life Legacy 10 Pay Life Insurance Illustration Policy: Limited Payment Whole Life with Premiums Payable for 10 s Base Policy Face Amount: $1,000,000 Riders: ABR TIR WP Premium: $36, Numeric Summary and Signature Page Dividend Option: Dividends used to purchase Paid-Up Additions. Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends will change all Non-Guaranteed values shown in this illustration. To help you understand how changes in non-guaranteed dividends may affect your future policy values, this Numeric Summary and Signature Page shows how your policy would perform based on each of the following dividend scenarios: 1) Guaranteed: The guaranteed policy values, i.e., zero dividends. 2) Non-Guaranteed Midpoint: 50% of the Company's currently illustrated dividend. 3) Non-Guaranteed Current: The Company's currently illustrated dividend. Non-Guarant eed Values Guaranteed Values Midpoint Assumptions Current Assumptions Contract Death Death Death Premium Value Benefit Value Benefit Value Benefit 5 36, ,170 1,000, ,372 1,007, ,632 1,014, , ,770 1,000, ,822 1,035, ,809 1,074, ,390 1,000, ,082 1,209, ,832 1,457,332 Age ,720 1,000, ,382 1,309, ,163 1,703,855 I have received a copy of this illustration and understand that any non-guaranteed elements illustrated are subject to significant fluctuations and could be either higher or lower. The agent has told me they are not guaranteed. I understand that this illustration is not a contract. I also understand that any policy changes reflected in this illustration are not automatic, but must be submitted in writing to the Home Office. The terms of the policy constitute the actual agreement of coverage. I further understand I have the right to request a hypothetical lower scale illustration to see the potential impact of a lower dividend interest rate on my policy values. I have read and understand the IMPORTANT TAX INFORMATION section in the Narrative Summary. Applicant (At time of application) Owner (At time of delivery) 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 this illustration. Agent Date Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 8 of 14

21 Whole Life Legacy 10 Pay Life Insurance Illustration Policy: Limited Payment Whole Life with Premiums Payable for 10 s Base Policy Face Amount: $1,000,000 Riders: ABR TIR WP Premium: $36, Tabular Values Dividend Option: Dividends used to purchase Paid-Up Additions. Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends will change all Non-Guaranteed values shown in this illustration. ====Non-Guaranteed Values==== Age End Contract Premium Guaranteed Value _ Guaranteed Death Benefit Dividend Value of Additions Value Paid-Up Additions Death Benefit Paid-Up Insurance ,160 13,520 1,000, , ,000,000 49, ,160 37,190 1,000, ,570 1,349 1,001, , ,160 73,200 1,000, ,213 74,413 4,165 1,004, , , ,510 1,000,000 1,293 2, ,057 8,458 1,008, , , ,170 1,000,000 1,829 4, ,632 14,336 1,014, , , ,230 1,000,000 2,532 7, ,372 22,213 1,022, , , ,760 1,000,000 3,277 10, ,413 32,084 1,032, , , ,800 1,000,000 4,097 15, ,894 44,039 1,044, , , ,440 1,000,000 4,955 20, ,970 58,049 1,058, , , ,770 1,000,000 5,864 27, ,809 74,125 1,074,125 1,074, ,080 1,000,000 12,215 40, , ,606 1,106, ,560 1,000,000 13,074 54, , ,340 1,140, ,220 1,000,000 13,996 70, , ,398 1,175, ,050 1,000,000 14,894 86, , ,633 1,211, ,080 1,000,000 15, , , ,153 1,249, ,320 1,000,000 16, , , ,002 1,288, ,770 1,000,000 17, , , ,172 1,328, ,430 1,000,000 19, , , ,793 1,369, ,300 1,000,000 20, , , ,839 1,412, ,390 1,000,000 21, , , ,332 1,457, ,680 1,000,000 22, , , ,301 1,503, ,170 1,000,000 24, , , ,870 1,550, ,850 1,000,000 25, , , ,104 1,600, ,700 1,000,000 27, , , ,075 1,651, ,720 1,000,000 29, , , ,855 1,703, ,870 1,000,000 31, ,491 1,000, ,505 1,758, ,130 1,000,000 33, ,419 1,058, ,288 1,815, ,450 1,000,000 35, ,321 1,119, ,251 1,874, ,850 1,000,000 37, ,341 1,184, ,427 1,935, ,280 1,000,000 39, ,557 1,251, ,846 1,998,846 Premiums Coverage Face Amount ly Semi-ly Quarterly Monthly Base Policy Insurance 1,000,000 35, , , , Waiver 1,000, Non-guaranteed values include dividends which are neither estimates nor guarantees, but are based on the 2011 dividend scale. The dividend scale is reviewed annually and it is likely that dividends in future years will be lower or higher depending on the Company's actual experience. For this reason, we strongly recommend that you look at a hypothetical lower scale illustration available upon request. Refer to the Narrative Summary for assumptions, explanations and additional information. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 9 of 14

22 Whole Life Legacy 10 Pay Life Insurance Illustration Policy: Limited Payment Whole Life with Premiums Payable for 10 s Base Policy Face Amount: $1,000,000 Riders: ABR TIR WP Premium: $36, Tabular Values Dividend Option: Dividends used to purchase Paid-Up Additions. Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends will change all Non-Guaranteed values shown in this illustration. ====Non-Guaranteed Values==== Age End Contract Premium Guaranteed Value _ Guaranteed Death Benefit Dividend Value of Additions Value Paid-Up Additions Death Benefit Paid-Up Insurance ,760 1,000,000 42, ,097 1,322,857 1,064,513 2,064, ,260 1,000,000 44, ,735 1,396,995 1,131,971 2,131, ,770 1,000,000 46, ,441 1,474,211 1,201,070 2,201, ,280 1,000,000 48, ,217 1,554,497 1,271,726 2,271, ,800 1,000,000 51, ,759 1,638,559 1,344,818 2,344, ,300 1,000,000 53,931 1,013,190 1,726,490 1,420,426 2,420, ,470 1,000,000 57,699 1,091,016 1,818,486 1,499,740 2,499, ,260 1,000,000 60,879 1,172,576 1,913,836 1,581,869 2,581, ,800 1,000,000 63,886 1,257,881 2,012,681 1,666,510 2,666, ,050 1,000,000 66,926 1,346,889 2,114,939 1,753,647 2,753, ,980 1,000,000 70,047 1,439,611 2,220,591 1,843,339 2,843, ,920 1,000,000 72,724 1,536,188 2,330,108 1,934,940 2,934, ,290 1,000,000 76,240 1,636,363 2,442,653 2,029,497 3,029, ,150 1,000,000 79,621 1,740,054 2,558,204 2,126,815 3,126, ,560 1,000,000 82,846 1,847,166 2,676,726 2,226,682 3,226, ,930 1,000,000 85,538 1,958,022 2,798,952 2,328,400 3,328, ,460 1,000,000 86,831 2,074,027 2,927,487 2,430,140 3,430, ,620 1,000,000 88,976 2,194,984 3,061,604 2,532,810 3,532, ,090 1,000,000 91,613 2,320,714 3,200,804 2,636,905 3,636, ,820 1,000,000 94,294 2,451,212 3,345,032 2,742,401 3,742, ,890 1,000,000 96,898 2,586,696 3,494,586 2,849,130 3,849, ,400 1,000,000 99,066 2,729,953 3,653,353 2,956,414 3,956, ,690 1,000, ,066 2,884,091 3,825,781 3,062,676 4,062, ,410 1,000,000 97,971 3,057,772 4,024,182 3,164,053 4,164, ,000,000 1,000,000 94,319 3,258,372 4,258,372 3,258,372 4,258, ,000,000 1,000, ,070 3,528,442 4,528,442 3,528,442 4,528, ,000,000 1,000, ,003 3,815,445 4,815,445 3,815,445 4,815, ,000,000 1,000, ,998 4,120,444 5,120,444 4,120,444 5,120, ,000,000 1,000, ,122 4,444,566 5,444,566 4,444,566 5,444, ,000,000 1,000, ,444 4,789,010 5,789,010 4,789,010 5,789, ,000,000 1,000, ,041 5,155,051 6,155,051 5,155,051 6,155, ,000,000 1,000, ,992 5,544,043 6,544,043 5,544,043 6,544, ,000,000 1,000, ,381 5,957,424 6,957,424 5,957,424 6,957, ,000,000 1,000, ,300 6,396,725 7,396,725 6,396,725 7,396, ,000,000 1,000, ,845 6,863,569 7,863,569 6,863,569 7,863,569 Non-guaranteed values include dividends which are neither estimates nor guarantees, but are based on the 2011 dividend scale. The dividend scale is reviewed annually and it is likely that dividends in future years will be lower or higher depending on the Company's actual experience. For this reason, we strongly recommend that you look at a hypothetical lower scale illustration available upon request. Refer to the Narrative Summary for assumptions, explanations and additional information. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 10 of 14

23 Whole Life Legacy 10 Pay Life Insurance Illustration Policy: Limited Payment Whole Life with Premiums Payable for 10 s Base Policy Face Amount: $1,000,000 Riders: ABR TIR WP Premium: $36, Tabular Values Dividend Option: Dividends used to purchase Paid-Up Additions. Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends will change all Non-Guaranteed values shown in this illustration. ====Non-Guaranteed Values==== Age End Contract Premium Guaranteed Value _ Guaranteed Death Benefit Dividend Value of Additions Value Paid-Up Additions Death Benefit Paid-Up Insurance ,000,000 1,000, ,116 7,359,685 8,359,685 7,359,685 8,359, ,000,000 1,000, ,222 7,886,907 8,886,907 7,886,907 8,886, ,000,000 1,000, ,279 8,447,186 9,447,186 8,447,186 9,447, ,000,000 1,000, ,409 9,042,595 10,042,595 9,042,595 10,042, ,000,000 1,000, ,741 9,675,336 10,675,336 9,675,336 10,675, ,000,000 1,000, ,414 10,347,749 11,347,749 10,347,749 11,347, ,000,000 1,000, ,574 11,062,323 12,062,323 11,062,323 12,062, ,000,000 1,000, ,378 11,821,701 12,821,701 11,821,701 12,821, ,000,000 1,000, ,991 12,628,691 13,628,691 12,628,691 13,628, ,000,000 1,000, ,589 13,486,280 14,486,280 13,486,280 14,486, ,000,000 1,000, ,360 14,397,640 15,397,640 14,397,640 15,397,640 Non-guaranteed values include dividends which are neither estimates nor guarantees, but are based on the 2011 dividend scale. The dividend scale is reviewed annually and it is likely that dividends in future years will be lower or higher depending on the Company's actual experience. For this reason, we strongly recommend that you look at a hypothetical lower scale illustration available upon request. Refer to the Narrative Summary for assumptions, explanations and additional information. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 11 of 14

24 Whole Life Legacy 10 Pay Life Insurance Illustration Policy: Limited Payment Whole Life with Premiums Payable for 10 s Base Policy Face Amount: $1,000,000 Riders: ABR TIR WP Premium: $36, Supplemental Values Dividend Option: Dividends used to purchase Paid-Up Additions. Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends will change all Non-Guaranteed values shown in this illustration. ====Non-Guaranteed Values==== Age End Outlay Surrender Net Outlay Dividend Basic Policy Value _ Value of Additions _ Net Value Paid-Up Additions Net Death Benefit _ , , , , ,000, , , , ,570 1,349 1,001, , , ,200 1,213 74,413 4,165 1,004, , ,160 1, ,510 2, ,057 8,458 1,008, , ,160 1, ,170 4, ,632 14,336 1,014, , ,160 2, ,230 7, ,372 22,213 1,022, , ,160 3, ,760 10, ,413 32,084 1,032, , ,160 4, ,800 15, ,894 44,039 1,044, , ,160 4, ,440 20, ,970 58,049 1,058, , ,160 5, ,770 27, ,809 74,125 1,074, , ,080 40, , ,606 1,106, , ,560 54, , ,340 1,140, , ,220 70, , ,398 1,175, , ,050 86, , ,633 1,211, , , , , ,153 1,249, , , , , ,002 1,288, , , , , ,172 1,328, , , , , ,793 1,369, , , , , ,839 1,412, , , , , ,332 1,457, , , , , ,301 1,503, , , ,000 21, , , , ,759 1,344, , , ,000 19, ,850 98, , ,094 1,187, , , , , ,629 1,225, , , , , ,548 1,265,548 Premiums Coverage Face Amount ly Semi-ly Quarterly Monthly Base Policy Insurance 1,000,000 35, , , , Waiver 1,000, These illustrated amounts are not guaranteed. They include dividends, which are neither estimates nor guarantees, but are based on the 2011 dividend scale. The dividend scale is reviewed annually and it is likely that dividends in future years will be lower or higher depending on the Company's actual experience. For this reason, we strongly recommend that you look at a hypothetical lower scale illustration available upon request. Refer to the Narrative Summary for assumptions, explanations and additional information. This illustration is not valid unless accompanied by or preceded by a Basic Illustration dated 11/22/2010. Refer to the Basic Illustration for guaranteed elements and other important information. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 12 of 14

25 Whole Life Legacy 10 Pay Life Insurance Illustration Policy: Limited Payment Whole Life with Premiums Payable for 10 s Base Policy Face Amount: $1,000,000 Riders: ABR TIR WP Premium: $36, Supplemental Values Dividend Option: Dividends used to purchase Paid-Up Additions. Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends will change all Non-Guaranteed values shown in this illustration. ====Non-Guaranteed Values==== Age End Outlay Surrender Net Outlay Dividend Basic Policy Value _ Value of Additions _ Net Value Paid-Up Additions Net Death Benefit _ , , ,000 20, ,870 68, , ,158 1,121, , ,130 92, , ,442 1,158, , , , , ,154 1,197, , , , , ,304 1,237, ,000 49,000-49,000 24, , , , ,345 1,196, , , , , ,851 1,236, , , , , ,605 1,278, , , , , ,534 1,321, , , , , ,609 1,365, , , , , ,134 1,411, , , ,801 1,040, ,153 1,458, , , ,090 1,096, ,362 1,507, , , ,973 1,155, ,471 1,558, , , ,402 1,216, ,290 1,611, , , ,387 1,279, ,825 1,665, , , ,979 1,344, ,143 1,722, , , ,094 1,413, ,794 1,779, , , ,934 1,483, ,566 1,839, , , ,441 1,555, ,352 1,901, , , ,560 1,630, ,042 1,965, , , ,249 1,707,179 1,030,108 2,030, , , ,672 1,788,132 1,095,156 2,095, , ,620 1,006,074 1,872,694 1,160,917 2,160, , ,090 1,080,591 1,960,681 1,227,819 2,227, , ,820 1,158,305 2,052,125 1,295,904 2,295, , ,890 1,239,343 2,147,233 1,365,081 2,365, , ,400 1,324,721 2,248,121 1,434,613 2,434, , ,690 1,415,629 2,357,319 1,503,286 2,503, , ,410 1,515,395 2,481,805 1,568,067 2,568, ,303 1,000,000 1,627,370 2,627,370 1,627,370 2,627,370 These illustrated amounts are not guaranteed. They include dividends, which are neither estimates nor guarantees, but are based on the 2011 dividend scale. The dividend scale is reviewed annually and it is likely that dividends in future years will be lower or higher depending on the Company's actual experience. For this reason, we strongly recommend that you look at a hypothetical lower scale illustration available upon request. Refer to the Narrative Summary for assumptions, explanations and additional information. This illustration is not valid unless accompanied by or preceded by a Basic Illustration dated 11/22/2010. Refer to the Basic Illustration for guaranteed elements and other important information. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 13 of 14

26 Whole Life Legacy 10 Pay Life Insurance Illustration Policy: Limited Payment Whole Life with Premiums Payable for 10 s Base Policy Face Amount: $1,000,000 Riders: ABR TIR WP Premium: $36, Supplemental Values Dividend Option: Dividends used to purchase Paid-Up Additions. Dividends are not guaranteed and are subject to significant fluctuations over the lifetime of the policy. Changes in dividends will change all Non-Guaranteed values shown in this illustration. ====Non-Guaranteed Values==== Age End Outlay Surrender Net Outlay Dividend Basic Policy Value _ Value of Additions _ Net Value Paid-Up Additions Net Death Benefit _ ,806 1,000,000 1,795,176 2,795,176 1,795,176 2,795, ,328 1,000,000 1,973,504 2,973,504 1,973,504 2,973, ,509 1,000,000 2,163,012 3,163,012 2,163,012 3,163, ,391 1,000,000 2,364,403 3,364,403 2,364,403 3,364, ,018 1,000,000 2,578,421 3,578,421 2,578,421 3,578, ,437 1,000,000 2,805,858 3,805,858 2,805,858 3,805, ,697 1,000,000 3,047,556 4,047,556 3,047,556 4,047, ,852 1,000,000 3,304,407 4,304,407 3,304,407 4,304, ,956 1,000,000 3,577,364 4,577,364 3,577,364 4,577, ,071 1,000,000 3,867,434 4,867,434 3,867,434 4,867, ,258 1,000,000 4,175,692 5,175,692 4,175,692 5,175, ,586 1,000,000 4,503,278 5,503,278 4,503,278 5,503, ,126 1,000,000 4,851,404 5,851,404 4,851,404 5,851, ,953 1,000,000 5,221,357 6,221,357 5,221,357 6,221, ,149 1,000,000 5,614,506 6,614,506 5,614,506 6,614, ,800 1,000,000 6,032,306 7,032,306 6,032,306 7,032, ,996 1,000,000 6,476,301 7,476,301 6,476,301 7,476, ,834 1,000,000 6,948,135 7,948,135 6,948,135 7,948, ,418 1,000,000 7,449,553 8,449,553 7,449,553 8,449, ,857 1,000,000 7,982,410 8,982,410 7,982,410 8,982, ,267 1,000,000 8,548,677 9,548,677 8,548,677 9,548,677 These illustrated amounts are not guaranteed. They include dividends, which are neither estimates nor guarantees, but are based on the 2011 dividend scale. The dividend scale is reviewed annually and it is likely that dividends in future years will be lower or higher depending on the Company's actual experience. For this reason, we strongly recommend that you look at a hypothetical lower scale illustration available upon request. Refer to the Narrative Summary for assumptions, explanations and additional information. This illustration is not valid unless accompanied by or preceded by a Basic Illustration dated 11/22/2010. Refer to the Basic Illustration for guaranteed elements and other important information. Prepared on: November 22, 2010 Version: MMD DT (CT) Initial TAMRA (7-Pay) Limit: $42, Prepared for: Dr. Ava Alexander (Female, 45, Select Preferred Non-Tobacco) Presented by: Dr. Alexander's Financial Professional Page 14 of 14