Protective Indexed Choice UL Universal Life Flexible Premium Adjustable Life Plan

Transcription

1 A Basic Universal Life Insurance Illustration Protective Indexed Choice UL Universal Life Flexible Premium Adjustable Life Plan Prepared For: d Client Presented By: Financial Professionals Group 2651 Rancho Parkway S.#12 Lake Forest, CA 9263 Tel: (License No. O) Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 1 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

2 Universal Life Flexible Premium Adjustable Life Plan General Information $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Basic Life Insurance Illustration Generic Name: Flexible Premium Adjustable Life Policy Form Number: UL Initial Face Amount: $5, Initial Benefit Option: Level THIS IS AN ILLUSTRATION ONLY. AN ILLUSTRATION IS NOT INTENDED TO PREDICT ACTUAL PERFORMANCE. EXCEPT FOR THOSE ITEMS CLEARLY LABELED GUARANTEED, RATES AND VALUES SET FORTH IN THE ILLUSTRATION ARE NOT GUARANTEED. COVERAGE IS SUBJECT TO THE TERMS AND CONDITIONS OF THE POLICY. THIS ILLUSTRATION IS NOT VALID WITHOUT ALL PAGES. General Information This is an illustration only, not an offer, contract or promise of future policy performance. Coverage is subject to the terms and conditions of the policy. This illustration is not complete without all pages. Although information in this illustration is based on certain tax and legal assumptions, it is not intended to be tax or legal advice. Such advice should be obtained from your own counsel or other expert. Required California Disclosure (Form U-613) This illustration has been provided to help you understand the life insurance policy and to allow you to compare the policy with other policies. If you are considering replacement of an existing life insurance policy, you should consider possible disadvantages (such as surrender charges and new contestable and suicide periods) as well as possible advantages (such as lower cost of insurance rates, lower policy expenses, and higher illustrated interest rates). Replacement of an existing life insurance policy may not be in your best interest. This illustration is based on information that you provided and on certain assumptions that are not guaranteed. Nonguaranteed elements, such as interest and cost of insurance rates, are subject to change by the Company. 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. Though this illustration may include certain policy changes such as loans, withdrawals, changes in death benefit options, and/or changes in face amount, the changes as illustrated will not automatically be processed and will need to be requested in writing at the time you want any changes to occur. Face amount increases and certain death benefit option changes will require additional underwriting subject to our review and approval. Not a Deposit Not Insured By Any Federal Government Agency No Bank or Credit Union Guarantee Not FDIC/NCUA Insured May Lose The policy includes built-in lapse protection that allows you to protect the policy from termination based on the premiums you pay and the formulas described in the Lapse Protection Endorsement. A general description of the Endorsement is included in the Narrative Summary section of this Basic Illustration. While this policy provides a lapse protection, it may provide nonforfeiture benefits, such as cash surrender values, which are less than those that would be provided if the guarantee were issued as a separate policy, such as a term policy. If a separate term policy has higher nonforfeiture benefits, the premiums for the separate policy might be Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 2 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

3 Universal Life Flexible Premium Adjustable Life Plan General Information $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed higher than the premiums for the lapse protection provided in this policy. Therefore, when considering the purchase of this policy, you should compare the value to you of higher nonforfeiture benefits, such as cash surrender values, versus the premiums required to keep your insurance coverage in force. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 3 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

4 Universal Life Flexible Premium Adjustable Life Plan Tabular Detail $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Guaranteed Assumptions Fixed Account 1.% Guaranteed Interest Rate Floor Indexed Interest Rate.% Maximum Policy Charges Non-Guaranteed Assumptions Fixed Account 3.75% Current Interest Rate Alternate Indexed Interest Rate 3.75% Current Policy Charges Non-Guaranteed Assumptions Fixed Account 3.75% Current Interest Rate Illustrated Indexed Interest Rate 5.81% Current Policy Charges Age Year Premium Outlay* Cumulative Premium 9,97 14,955 19,94 24,925 29,91 34,895 39,88 44,865 49,85 54,835 59,82 64,85 69,79 74,775 79,76 84,745 89,73 94,715 99,7 Policy ¹ 1,448 2,77 3,913 4,865 5,566 7,347 8,821 9,968 1,837 11,379 1,672 9,465 7,651 5,136 1, ,776 1,874 Benefit Notes ² 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, Policy ¹ 2,493 5,83 7,774 1,571 13,476 17,94 22,54 27,284 32,25 37,41 42,978 48,692 54,542 6,53 66,664 72,922 79,31 85,79 92,372 99,27 3,984 9,324 14,85 2,57 29,58 38,592 47,812 57,17 66,664 72,922 79,31 85,79 92,372 99,27 Benefit Notes ² 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, Policy ¹ 2,563 5,278 8,156 11,25 14,435 19,283 24,42 29,863 35,63 41,742 48,429 55,443 62,789 7,485 78,554 86,992 95,816 15,34 114, , ,9 11,93 18,23 24,92 34,959 45,343 56,59 67,125 78,554 86,992 95,816 15,34 114, ,678 Benefit Notes ² 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, shown. This is not likely to occur because interest and cost of insurance rates are subject to change by the Company based on various factors such Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 4 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

5 Universal Life Flexible Premium Adjustable Life Plan Tabular Detail $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Guaranteed Assumptions Fixed Account 1.% Guaranteed Interest Rate Floor Indexed Interest Rate.% Maximum Policy Charges Non-Guaranteed Assumptions Fixed Account 3.75% Current Interest Rate Alternate Indexed Interest Rate 3.75% Current Policy Charges Non-Guaranteed Assumptions Fixed Account 3.75% Current Interest Rate Illustrated Indexed Interest Rate 5.81% Current Policy Charges Age Year Premium Outlay* Cumulative Premium 14,685 19,67 114, ,64 124, ,61 134, ,58 144, ,55 154, ,52 164,55 169,49 174, ,46 184, ,43 194, ,4 Policy ¹ Benefit Notes ² 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, Policy ¹ 15, ,45 119,52 125, ,31 138, , , ,214 16, ,51 168,168 17, , , , , , , ,875 15, ,45 119,52 125, ,31 138, , , ,214 16, ,51 168,168 17, , , , , , , ,875 Benefit Notes ² 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, Policy ¹ 135,97 145,98 157,12 168,674 18, ,93 25, ,66 232, ,79 26, ,273 29,54 36, , , , , , , ,97 145,98 157,12 168,674 18, ,93 25, ,66 232, ,79 26, ,273 29,54 36, , , , , , ,844 Benefit Notes ² 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, 5, shown. This is not likely to occur because interest and cost of insurance rates are subject to change by the Company based on various factors such Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 5 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

6 Universal Life Flexible Premium Adjustable Life Plan Tabular Detail $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Guaranteed Assumptions Fixed Account 1.% Guaranteed Interest Rate Floor Indexed Interest Rate.% Maximum Policy Charges Non-Guaranteed Assumptions Fixed Account 3.75% Current Interest Rate Alternate Indexed Interest Rate 3.75% Current Policy Charges Non-Guaranteed Assumptions Fixed Account 3.75% Current Interest Rate Illustrated Indexed Interest Rate 5.81% Current Policy Charges Age Year Premium Outlay* Cumulative Premium 24,385 29,37 214, ,34 224, ,31 234, ,28 244, ,25 254, ,22 264,25 269,19 274, ,16 284, ,13 294, ,1 Policy ¹ Benefit Notes ² 5, 5, 5, 5, 5, 5, 5, P Policy ¹ 125,431 11,32 68,59 24, ,431 11,32 68,59 24,225 Benefit Notes ² 5, 5, 5, 5, 5, 5, 5, P Policy ¹ 439, , , , ,16 569, ,327 63, ,236 74, , ,53 849,848 94, ,661 1,22,486 1,86,844 1,154,942 1,226,996 1,33, , , , , ,16 569, ,327 63, ,236 74, , ,53 849,848 94, ,661 1,22,486 1,86,844 1,154,942 1,226,996 1,33,236 Benefit Notes ² 57,326 53, , ,168 6, , , ,93 P 687,57 74, , ,53 849,848 94, ,661 1,22,486 1,86,844 1,154,942 1,226,996 1,33,236 shown. This is not likely to occur because interest and cost of insurance rates are subject to change by the Company based on various factors such Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 6 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

7 Universal Life Flexible Premium Adjustable Life Plan Tabular Detail $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Guaranteed Assumptions Fixed Account 1.% Guaranteed Interest Rate Floor Indexed Interest Rate.% Maximum Policy Charges Non-Guaranteed Assumptions Fixed Account 3.75% Current Interest Rate Alternate Indexed Interest Rate 3.75% Current Policy Charges Non-Guaranteed Assumptions Fixed Account 3.75% Current Interest Rate Illustrated Indexed Interest Rate 5.81% Current Policy Charges Age Year Premium Outlay* Cumulative Premium Policy ¹ Benefit Notes ² Policy ¹ Benefit Notes ² Policy ¹ Benefit Notes ² ,85 1,383,96 1,383,96 1,383, ,7 1,469,263 1,469,263 1,469, ,55 1,559,579 1,559,579 1,559, ,4 1,655,143 1,655,143 1,655, ,25 1,756,258 1,756,258 1,756, ,1 1,863,249 1,863,249 1,863, ,995 1,976,455 1,976,455 1,976, ,98 2,96,239 2,96,239 2,96, ,965 2,222,983 2,222,983 2,222, ,95 2,357,9 2,357,9 2,357, ,935 2,498,988 2,498,988 2,498,988 **Policy Terminates in policy year 48.** **Policy Terminates in policy year 48.** **Lapse Protection expires in policy year 48.** **Lapse Protection expires in policy year 48.** **Lapse Protection expires in policy year 48.** ¹ Whenever the policy value is shown as zero, it may be zero or less than zero. ² Reference the Additional Information section, following the Tabular Detail section, for definitions of Notes. CP$. CE$. TGT$6,375. MMGP***** MEC$27,494.6 shown. This is not likely to occur because interest and cost of insurance rates are subject to change by the Company based on various factors such Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 7 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

8 Universal Life Flexible Premium Adjustable Life Plan Additional Information $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Notes * Guaranteed Assumptions Current Assumptions P Even if the premium outlay is zero, monthly deductions will continue. Monthly deductions will cease at attained age 121. Under the assumptions of this illustration, the protection from policy termination ceases. For more information, reference the Lapse Protection Endorsement of the policy contract, generally described in the Narrative Summary of this illustration. The Guaranteed columns assume a fixed account guaranteed interest rate of 1.%, a floor indexed interest rate of.%, and guaranteed cost of insurance rates. The Current columns assume a fixed account current interest rate of 3.75%, an alternate indexed interest rate of 3.75%, an illustrated indexed interest rate of 5.81%, and current cost of insurance rates. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 8 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

9 Universal Life Flexible Premium Adjustable Life Plan Internal Rates of Return on Benefit $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Based on Guaranteed Assumptions¹ Age Year Premium Outlay* Benefit IRR on Benefit Specified Tax Rate Pre-Tax Equivalent Probability of ² , 5, 5, 5, 5, 5, 5, 5, 5, 5, Policy Lapsed Policy Lapsed 11.77% 9.52% 7.85% 6.57% 6.2% 5.55% 4.73% 4.6% 3.5% 3.18% -1.% -1.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 18.1% 14.65% 12.8% 1.1% 9.54% 8.54% 7.28% 6.25% 5.39% 4.89% -1.% -1.% 16.87% 23.92% 32.75% 43.38% 47.32% 55.53% 68.13% 79.86% 89.3% 93.32% 98.65% 1.% * Refer to the Notes section for more information. ¹ Under Guaranteed Assumptions, the illustrated policy terminates in year 48. See Additional Information page for assumptions. ² The illustrated life expectancy of age 82 and probability of death are based upon the Select and Ultimate 21 Valuation Basic Table. The values are based on standard mortality and are for illustrative purposes only. Individual mortality rates may vary based on the actual Rate Class. The investment must earn at least 6.2% after-tax to earn greater than or equal to the return on Benefit. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 9 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

10 Universal Life Flexible Premium Adjustable Life Plan Internal Rates of Return $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Guaranteed Assumptions¹ Age Year Premium Outlay * Loans & Withdrawals IRR on Benefit IRR on Benefit % -1.% -1.% -1.% -1.% 5, 5, 5, 5, 5, 9,93.9% % % % % % -1.% -1.% -1.% -1.% 5, 5, 5, 5, 5, 91.19% 7.92% 57.34% 47.66% 4.46% ,776 1,874-1.% -1.% -84.4% % % 5, 5, 5, 5, 5, 34.92% 3.53% 26.98% 24.6% 21.61% % -1.% -1.% -1.% -1.% 5, 5, 5, 5, 5, 19.55% 17.77% 16.24% 14.91% 13.73% % -1.% -1.% -1.% -1.% 5, 5, 5, 5, 5, 12.69% 11.77% 1.94% 1.2% 9.52% % -1.% -1.% -1.% -1.% 5, 5, 5, 5, 5, 8.91% 8.36% 7.85% 7.39% 6.96% % -1.% -1.% -1.% -1.% 5, 5, 5, 5, 5, 6.57% 6.2% 5.86% 5.55% 5.26% Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 1 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

11 Universal Life Flexible Premium Adjustable Life Plan Internal Rates of Return $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Guaranteed Assumptions¹ Age Year Premium Outlay * Loans & Withdrawals IRR on Benefit IRR on Benefit % -1.% -1.% -1.% -1.% 5, 5, 5, 5, 5, 4.99% 4.73% 4.49% 4.27% 4.6% % -1.% -1.% -1.% -1.% 5, 5, 5, 5, 5, 3.86% 3.68% 3.5% 3.34% 3.18% % -1.% -1.% 5, 5, 3.3% 2.89% -1.% * Even if the premium outlay is zero, monthly deductions will continue. Depending on actual results and the status of any protection from policy termination provided under the Lapse Protection Endorsement, additional premiums may be needed to avoid termination of the policy. Monthly deductions will cease at attained age Under Guaranteed Assumptions, the illustrated policy terminates in year 48. See Additional Information page for assumptions. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 11 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

12 Universal Life Flexible Premium Adjustable Life Plan Internal Rates of Return on Benefit $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Based on Current Assumptions¹ Age Year Premium Outlay* Benefit IRR on Benefit Specified Tax Rate Pre-Tax Equivalent Probability of ² , 5, 5, 5, 5, 5, 5, 5, 553,757 6,541 74,116 2,498, % 9.52% 7.85% 6.57% 6.2% 5.55% 4.73% 4.6% 3.89% 3.84% 3.63% 4.48% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 35.% 18.1% 14.65% 12.8% 1.1% 9.54% 8.54% 7.28% 6.25% 5.98% 5.91% 5.59% 6.9% 16.87% 23.92% 32.75% 43.38% 47.32% 55.53% 68.13% 79.86% 89.3% 93.32% 98.65% 1.% * Refer to the Notes section for more information. ¹ Under Current Assumptions, the illustrated policy is guaranteed not to lapse for the lifetime of the insured. Reference the Internal Rates of Return shown under Guaranteed Assumptions. See Additional Information page for assumptions. ² The illustrated life expectancy of age 82 and probability of death are based upon the Select and Ultimate 21 Valuation Basic Table. The values are based on standard mortality and are for illustrative purposes only. Individual mortality rates may vary based on the actual Rate Class. The investment must earn at least 6.2% after-tax to earn greater than or equal to the return on Benefit. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 12 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

13 Universal Life Flexible Premium Adjustable Life Plan Internal Rates of Return $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Non-Guaranteed (Current) Assumptions¹ Age Year Premium Outlay * Loans & Withdrawals IRR on Benefit IRR on Benefit % -1.% -1.% -1.% -1.% 5, 5, 5, 5, 5, 9,93.9% % % % % ,9 11,93 18,23 24, % % % -18.8% % 5, 5, 5, 5, 5, 91.19% 7.92% 57.34% 47.66% 4.46% ,959 45,343 56,59 67,125 78, % -4.35% -2.1% -.52%.61% 5, 5, 5, 5, 5, 34.92% 3.53% 26.98% 24.6% 21.61% ,992 95,816 15,34 114, , % 1.35% 1.63% 1.88% 2.8% 5, 5, 5, 5, 5, 19.55% 17.77% 16.24% 14.91% 13.73% ,97 145,98 157,12 168,674 18, % 2.41% 2.54% 2.65% 2.74% 5, 5, 5, 5, 5, 12.69% 11.77% 1.94% 1.2% 9.52% ,93 25, ,66 232, , % 2.89% 2.95% 3.% 3.4% 5, 5, 5, 5, 5, 8.91% 8.36% 7.85% 7.39% 6.96% , ,273 29,54 36, , % 3.11% 3.14% 3.17% 3.19% 5, 5, 5, 5, 5, 6.57% 6.2% 5.86% 5.55% 5.26% Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 13 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

14 Universal Life Flexible Premium Adjustable Life Plan Internal Rates of Return $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Non-Guaranteed (Current) Assumptions¹ Age Year Premium Outlay * Loans & Withdrawals IRR on Benefit IRR on Benefit , , , , , % 3.23% 3.25% 3.28% 3.31% 5, 5, 5, 5, 5, 4.99% 4.73% 4.49% 4.27% 4.6% , , , , , % 3.39% 3.42% 3.45% 3.47% 57,326 53, , ,168 6, % 3.91% 3.89% 3.87% 3.84% , ,327 63, ,236 74, % 3.52% 3.55% 3.59% 3.63% 623, , ,93 687,57 74, % 3.78% 3.74% 3.69% 3.63% , ,53 849,848 94, , % 3.75% 3.81% 3.86% 3.92% 749, ,53 849,848 94, , % 3.75% 3.81% 3.86% 3.92% ,22,486 1,86,844 1,154,942 1,226,996 1,33, % 4.1% 4.5% 4.1% 4.14% 1,22,486 1,86,844 1,154,942 1,226,996 1,33, % 4.1% 4.5% 4.1% 4.14% ,383,96 1,469,263 1,559,579 1,655,143 1,756, % 4.21% 4.24% 4.28% 4.31% 1,383,96 1,469,263 1,559,579 1,655,143 1,756, % 4.21% 4.24% 4.28% 4.31% ,863,249 1,976,455 2,96,239 2,222,983 2,357,9 4.35% 4.38% 4.4% 4.43% 4.46% 1,863,249 1,976,455 2,96,239 2,222,983 2,357,9 4.35% 4.38% 4.4% 4.43% 4.46% ,498, % 2,498, % * Even if the premium outlay is zero, monthly deductions will continue. Depending on actual results and the status of any Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 14 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

15 Universal Life Flexible Premium Adjustable Life Plan Internal Rates of Return $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed protection from policy termination provided under the Lapse Protection Endorsement, additional premiums may be needed to avoid termination of the policy. Monthly deductions will cease at attained age Under Current Assumptions, the illustrated policy is guaranteed not to lapse for the lifetime of the insured. Reference the Internal Rates of Return shown under Guaranteed Assumptions. See Additional Information page for assumptions. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 15 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

16 Universal Life Flexible Premium Adjustable Life Plan Narrative Summary $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Indexed UL Description Illustrations Assumptions Checklist Indexed Account When you pay a premium, we will deduct a premium expense charge. The resulting net amount, the net premium, will be allocated to the fixed account where it will earn interest, not to be less than the guaranteed fixed interest rate displayed in the policy. Upon the 15 th of each month, you will have the option to allocate a percentage of your net premium, up to 1%, into a segment. There are 12 segments, one corresponding to each of the 12 monthly allocation dates. The sum of the 12 segments values make up the indexed account value. Your total policy value equals the sum of the fixed account value and the indexed account value. Monthly deductions are charged to your total policy value by charging the fixed account and each segment in the same proportion that each bears to the total policy value. This approach to monthly deductions may be advantageous in that we don t require you to hold a minimum amount of funds in the fixed account for the purpose of deducting charges. Interest is applied to each segment at the segment s indexed crediting date, which occurs one year after the allocation date, according to the indexed crediting rate method explained in the indexed account section. This illustration is based upon the following assumptions: ü Initial premium is received on or before the policy effective date ü Illustrated premium outlays are paid on the 15 th of the month. ü The policy effective date is the 15 th of the month ü Premium payments are made at the beginning of each payment period. The policy is guaranteed not to lapse if the accumulated net payments received, less any policy debt, is greater than or equal to the accumulated minimum monthly premiums and policy debt does not exceed the cash value. ü Selected allocation percentages apply for all payments ü No changes are made other than those illustrated ü No additional policy loans or withdrawals are made other than those illustrated When you decide to allocate part of your premium payment to the Indexed Account, an Index Segment is created. Each Segment accrues interest based on the positive performance of the S&P 5 Index (exclusive of dividends and subject to cap and floor rates) between the allocation date and the end of the segment term, which occurs one year after funds are allocated in the segment. This process is referred to as annual point-to-point. Index Segments are created on the 15th of every month, so the Indexed Account may have up to 12 different Indexed Segments in various stages of maturity at any given time. The total Indexed Account value is the sum of these Indexed Segments. Although the Indexed Account can earn interest based on the positive performance of the S&P 5, Protective Index Choice UL is not a security or investment and you are not investing directly in the stock market. If the S&P 5 Index becomes unavailable or if the index calculation is substantially changed, we will notify you of the external financial index. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 16 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

17 Universal Life Flexible Premium Adjustable Life Plan Narrative Summary $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Interest rate credited (subject to interest cap and floor rates) 1% participation rate S&P 5 End of Segment Year 3 S&P 5 Beginning of Segment Year 3 S&P 5 Beginning of Segment Year 3 3 Excluding dividends Fixed Account Transferring Funds Between Accounts Net premiums received will be initially allocated in the fixed account regardless of the allocation percentages selected. The net premiums will earn interest in the fixed account until the 15th, at this time it will be allocated to the indexed account according to the selected allocation percentage. The interest rate credited to the Fixed Account can be changed at the sole discretion of the Company but not below the guaranteed interest rate of 1.%. The current interest rate is 3.75%. The interest rates shown in this illustration are annual effective rates. Interest is earned monthly. You may transfer funds between the Fixed Account and Indexed Account after your first policy year. No transfers are included in this illustration. You may request that up to 1% of your Fixed Account value be transferred to the current indexed segment in the Indexed Account. That transfer will occur on the Monthly Anniversary following the request. Only one transfer from the Fixed Account is allowed in a 12 month period. You may also request that up to 1% of an indexed segment s value be transferred to the Fixed Account. That transfer will occur on the Monthly Anniversary on or following the indexed segment s crediting date. Only one transfer from an indexed segment to the Fixed Account is allowed each year and transfers between indexed segments are not allowed. Premium Outlay Premium outlay is the amount of money assumed to be paid out-of-pocket in addition to any amounts transferred from another insurance company. The amount, timing, and frequency of each premium outlay may be varied and will affect the policy value, the length of coverage, and the status of any protection from policy termination. Because interest and cost of insurance rates can change over time, additional premium outlays may be needed to keep the policy in force or to achieve desired results. Each premium outlay is subject to any minimum requirements of the policy and maximum limits set by Federal Tax Law. This illustration assumes that periodic premium outlays are received by the Company at the beginning of each policy year. The Company will deduct for current assumptions a premium expense charge from each premium outlay of 8.% during the first 1 years and 4.% for all years thereafter. The premium expense charge for guaranteed assumptions will be 8.% during the first 1 years and 25.% for all years thereafter. The first year premium outlay includes a(n) annual premium of $.. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 17 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

18 Universal Life Flexible Premium Adjustable Life Plan Narrative Summary $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Assuming guaranteed interest rates and cost of insurance rates, no policy loans, no partial surrenders, no policy changes, and timely annual payment of $7,23.55 in all years, the policy will not terminate before age 121. This amount does not take into account any lump sum payment. Lapse Protection Benefit Terminal Illness Accelerated Benefit This policy includes Lapse Protection that allows the owner to protect the policy from termination up to the insured s attained age 121. See the Tabular Detail section for Lapse Protection expiration year. Additional, higher premiums are required to maintain Lapse Protection to attained age 121. However, any policy changes, loans, partial surrenders or delinquent premium outlays may cause earlier loss of the protection. If the protection is lost, it may be restored by payment of sufficient additional premiums. Without the protection from policy termination, the policy may continue in force for a period of time as long as there is enough surrender value to cover the monthly deductions. Reference the policy and any endorsements for complete limitations, terms, and conditions. The death benefit is the amount of money payable to the beneficiary if the proposed insured dies while the policy is in force. The death benefit includes the base policy benefit amount plus any additional life insurance rider and term rider benefit amounts, if applicable. The death benefit will be reduced by any policy debt and by any overdue monthly deductions. This illustration shows the death benefit at the end of each policy year. The initial death benefit is shown above. This policy has an Accelerated Benefit feature for a qualifying terminal illness. Subject to a maximum benefit amount, the accelerated death benefit will be based on a portion of the in-force face amount. A lien equal to the accelerated death benefit will be established against the policy and will accumulate interest. The primary impact of the lien and any accumulated interest will be a reduction of the death benefit. The Accelerated Benefit feature may be subject to state variations and may not be available in all states. Consult your representative and review the policy and any endorsements for complete limitations, terms and conditions. Due to possible tax consequences of the Accelerated Benefit feature, please consult your tax advisor. and Policy s The surrender value is the amount of money you will receive if you cancel the policy. In addition, it limits the amounts available to you for policy loans and partial surrenders. The surrender value is equal to the policy value less a surrender charge and less any policy debt. A face decrease, including a decrease resulting from a partial surrender, will result in a surrender charge. There is a surrender charge for the first 14 policy years. The surrender charge will last for an additional 14 years following each face increase. The surrender charge will change if you increase or decrease the face amount of the policy. The policy value will vary based on (1) the amount, timing and frequency of each premium outlay, (2) monthly deductions, (3) credited interest, (4) policy debt, and (5) partial surrenders. Each month, any premiums received (less a premium expense charge) and interest are added to the policy value while monthly deductions and partial surrenders, including surrender charges and fees associated with any partial surrenders are subtracted from the policy value. This illustration shows the policy and surrender values at the end of each policy year. Termination Unless this policy remains in force under the provisions of the Lapse Protection Endorsement, the policy will terminate without value at the end of the grace period if there is not enough surrender value to cover the monthly deductions. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 18 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

19 Universal Life Flexible Premium Adjustable Life Plan Narrative Summary $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Interest Interest Credited Rates (across all segments) Indexed Account Fixed Account Illustrated Rate (Current) 5.81% 3.75% Alternate Rate 3.75% 3.75% Floor Rate (Guaranteed).% 1.% The fixed account current interest rate credited to your policy value can be changed at the sole discretion of the Company but not below the fixed account guaranteed interest rate. The alternate indexed interest rate is set equal to the current credited interest rate for the fixed account. The maximum illustrated indexed interest rate is derived in accordance with applicable indexed universal life insurance regulations. Any future change to the current interest rates will cause the policy's values to deviate from those illustrated. Policy Debt Policy Debt is all outstanding policy loans (i.e. cash borrowed from the surrender value) plus accrued interest. The amount of policy value equal to the policy debt will continue to earn interest at the same rates as if no loan had occurred. An illustrated policy loan may show a reduction in the growth of the policy value. This illustration assumes that any policy loans are taken at the beginning of a policy year, and any policy debt is shown at the end of each policy year. Loan Interest Rates Charged Per Year Compounded Annually Guaranteed Non-Guaranteed 8. % 4.81 % Overloan Protection Endorsement The policy will not lapse and the death benefit will be at least $1, as long as all of the following residual death benefit conditions are met: 1. The policy has been in force for at least 2 years. 2. The insured has attained at least age Withdrawals in an amount equal to the total premiums paid have been taken. 4. The policy debt is at least 95% of the cash value. 5. The policy debt exceeds the face amount of the policy. 6. Accelerated benefits have not been received under any endorsement or rider attached to the policy. 7. Monthly deductions or premiums are not being credited or waived under any endorsement or rider attached to the policy. 8. Invoking this benefit does not result in a death benefit that is not compliant with our reasonable interpretation of the Internal Revenue Code (IRC). 9. The policy is not a modified endowment contract. When all of the conditions are met, any riders will be terminated. In addition, no further premium outlays, withdrawals, policy loans, and face amount changes will be allowed. Any indexed account value will be transferred to the fixed account. No further allocations or transfers will be allowed to the indexed account. There is no charge or cost for the endorsement unless you invoke it. Refer to policy contract for charge details. The Overloan Protection Endorsement may be subject to state variations and may not be available in all states. The Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 19 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

20 Universal Life Flexible Premium Adjustable Life Plan Narrative Summary $. Prepared For: d Client $5,. Endorsement is not illustrated. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Tax Compliance Federal Income Tax Considerations The Internal Revenue Code (IRC) restricts the amount of money which may be paid into life insurance policies. Restrictions imposed by both IRC 772 and IRC 772A (detailed below) must be followed to maintain the full tax benefits associated with life insurance policies: benefits are received income tax free Policy cash values grow on an income tax deferred basis Policy loans and withdrawals may provide tax free distributions during the lifetime of the insured While the illustrated premium outlays have been tested for compliance with current federal tax law, neither nor its representatives may offer legal or tax advice. Any compliance tests applied and any tax-related statements made in this illustration represent our understanding of current federal tax law as it relates to life insurance. In addition, the tax treatment of life insurance is subject to change. Please consult your legal or tax advisor for further information. Generally, a withdrawal will not be taxable except to the extent it exceeds your cost basis in the policy. Different rules described below apply if your policy becomes a modified endowment contract (MEC). Cost basis is illustrated as total premiums paid less any prior untaxed withdrawals. In the case of an IRC Section 135 exchange, the initial cost basis of the new contract will generally equal the cost basis of the replaced contract. Special rules apply to withdrawals and/or face amount decreases in the first 15 policy years. In the case of a withdrawal, you may be taxed on all or a portion of the withdrawal amount. In the case of a face amount decrease or certain other policy changes, a taxable distribution from the policy may be required. Definition of Life Insurance (IRC 772) - Cash Accumulation Test Under the terms of the policy, the death benefit may temporarily increase automatically to the extent necessary to comply with the cash value accumulation test. An increase in the death benefit may increase policy charges. Modified Endowment Contracts (IRC 772A) Life insurance contracts that fail the 7-Pay Test are classified as Modified Endowment Contracts (MECs). MECs receive less favorable income tax treatment of distributions, such as withdrawals and loans, made during the lifetime of the insured. A policy fails the 7-Pay test if, at any time during the first seven policy years, the amount paid into the policy (excluding 135 premiums) exceeds the sum of the 7-Pay annual premiums at that time. At any time after issue, any change you make in policy benefits may require retesting and may begin a new 7-Pay testing period. This policy as illustrated is not a Modified Endowment Contract. Initial 7-Pay Annual Premium: $27,494.6 If a contract fails the 7-Pay test and becomes a MEC, distributions (including loans against the policy and assignments) are taxable to the extent there is a gain in the contract. Distributions from a MEC prior to the policy owner s age 59 1/2 are subject to a Federal Income Tax penalty of 1% of the taxable portion of the distributions, with certain exceptions. Distributions from a trust-owned MEC may also be subject to a 1% tax penalty. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 2 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

21 Universal Life Flexible Premium Adjustable Life Plan Narrative Summary $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Life Insurance Cost Information Indices assume the time value of money to be 5.%. The Net Payment Cost Index and the Cost Index are measures of the relative cost of similar plans of insurance. A low index number generally represents a lower cost than a high index number. For the indices shown below the numbers in the non-guaranteed column are based on current rates of interest and cost of insurance charges. The numbers in the guaranteed column are based on guaranteed rates of interest and cost of insurance charges. The Cost Index assumes the policy is surrendered at the end of the period shown and is useful where cash value is of importance. The Net Payment Cost Index assumes payment of premiums without taking cash value and is useful where the amount of the death benefit is of importance. The actual cost may increase or decrease depending upon future cost of insurance charges and the time when surrender occurs, but will exceed those costs shown as guaranteed for the year indicated. At the end of Cost Index Net Payment Cost Index Guaranteed s Non-Guaranteed s 1 Years 2 Years 1 Years 2 Years Additional Key Terms Age is the issue age plus the number of years the policy is assumed to have been in force. This is the age at the end of the policy year. Allocation Date The allocation date will be the 15th day of each calendar month. If the 15th is a non-business Day, then the next Business Day will be an Allocation Date. Cap Rate is the maximum interest rate allowed for a Segment. It is the maximum rate of interest the policy will earn, regardless of changes to the designated index. The cap rate credited to your policy value can be changed at the sole discretion of the Company but not below the guaranteed cap rate of 3.%. The illustrated cap rate is 9.5%. Cost of Insurance is the amount charged by the Company for providing life insurance coverage under the base policy. The cost of insurance rates may be changed by the Company, but not above the Maximum Monthly Cost of Insurance Rates in the policy schedule. Current Assumptions illustrate values based on alternate and assumed illustrated indexed interest rates, a fixed account current interest rate and current cost of insurance rates. The alternate indexed interest rate is set equal to the current credited interest rate for the fixed account. The maximum illustrated indexed interest rate is derived in accordance with applicable indexed universal life insurance regulations. Fixed account current interest rates are subject to change and are not guaranteed. Floor Rate The minimum interest rate allowed for a Segment. The floor for each Segment will not be less than.%. Guaranteed Assumptions illustrate values based on fixed account guaranteed interest rates, a floor indexed rate, and guaranteed cost of insurance rates. Indexed Account The Indexed Account is made up of 12 Indexed Segments, for which Indexed Interest is based on the performance of external financial index S&P 5, exclusive of dividends. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 21 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

22 Universal Life Flexible Premium Adjustable Life Plan Narrative Summary $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Indexed Segment A division of the Indexed Account. There is a separate Segment for each Allocation Date in the Policy Year. Indexed Segment Term A period of one calendar year beginning on the Allocation Date. Each Segment has its own Segment Term. Issue Age means the age nearest birthday of the proposed insured at the assumed effective date of the illustrated policy. Midpoint Assumptions illustrate values based on interest rates and cost of insurance rates that are the average of the guaranteed and current rates. These assumed rates are not guaranteed. Monthly Deductions are policy charges including the cost of insurance, the cost of any additional benefits and riders, any monthly expense charge, and the monthly administrative charge. Non-Guaranteed Assumptions illustrate the current, alternate, specified and midpoint assumptions. These assumptions are not guaranteed. Non-Guaranteed Elements are the premiums, benefits, values, credits or charges that are not guaranteed or cannot be determined at issue. Participation Rate The participation rate determines what percent of the gain in the designated index will be credited to the policy. The participation rate for each Segment will never be less than its minimum guaranteed participation rate shown on the policy schedule page. A higher participation rate does not necessarily mean a higher crediting rate. Your crediting rate will depend on the S&P 5 performance (excluding dividends) and the cap and floor rate. Rate Class means the risk class of the proposed insured. After the application is underwritten, a revised illustration will be delivered with the policy if the actual rate class differs from the one illustrated. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 22 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

23 Universal Life Flexible Premium Adjustable Life Plan Indexed Interest Rates $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Historical Hypothetical Indexed Interest Rates The Historical Hypothetical Indexed Interest Rates below are derived using historical index returns along with the current annual cap rate of 9.5%, annual floor of %, and participation rate of 1%. Average Indexed Interest Rate: Minimum Indexed Interest Rate: Maximum Indexed Interest Rate: 5.81% 3.74% 7.39% Average Indexed Interest Rate: The arithmetic mean of the set of geometric average annual credited rates for all 25-year periods, beginning on 12/31/1951 and for each 25-year period starting on each subsequent trading day thereafter, ending with the 25-year period that ends on 12/31/216. Minimum Indexed Interest Rate: The minimum of the set of geometric average annual credited rates for all 25-year periods, beginning on 12/31/1951 and for each 25-year period starting on each subsequent trading day thereafter, ending with the 25-year period that ends on 12/31/216. Maximum Indexed Interest Rate: The maximum of the set of geometric average annual credited rates for all 25-year periods, beginning on 12/31/1951 and for each 25-year period starting on each subsequent trading day thereafter, ending with the 25-year period that ends on 12/31/216. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 23 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

24 Universal Life Flexible Premium Adjustable Life Plan Historical S&P 5 $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Hypothetical Example of Indexed Crediting Rate based off of the Historical S&P 5 Return over the Past 2 Years This hypothetical example demonstrates the impact that historical fluctuations in the S&P 5 Index (excluding dividends) would have had on an indexed universal life policy similar to Protective Indexed Choice UL. The crediting rates shown below are based on historical S&P 5 Index performance only and should not be used as an indication of future performance. End of Segment Term Segment Term Percentage Change Final Indexed Interest Rate Credited 12/31/ % 9.5% 12/31/ % 9.5% 12/31/ % 9.5% 12/29/2-1.14%.% 12/31/ %.% 12/31/ %.% 12/31/ % 9.5% 12/31/ % 8.99% 12/3/25 3.% 3.% 12/29/ % 9.5% End of Segment Term Segment Term Percentage Change Final Indexed Interest Rate Credited 12/31/ % 3.53% 12/31/ %.% 12/31/ % 9.5% 12/31/ % 9.5% 12/3/211.%.% 12/31/ % 9.5% 12/31/ % 9.5% 12/31/ % 9.5% 12/31/ %.% 12/31/ % 9.5% Note the effect of an indexed cap rate and a floor rate during swings in the performance of the S&P 5 Index. A fixed account option provides a secure way to accumulate cash and does not depend on performance of the S&P 5 Index. 5% 4% 3% 2% 1% % -1% -2% -3% -4% -5% S&P 5 Return (excluding dividends) Index Rate Credited Fixed Interest Rate (Cap Rate = 9.5%, Floor Rate =.%) (3.75%) Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 24 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda

25 Universal Life Flexible Premium Adjustable Life Plan Hypothetical Example $. Prepared For: d Client $5,. Male Age 5, Preferred Premium Allocation: 1% Indexed, % Fixed Annual Pointto-Point Indexed Crediting Strategy The hypothetical example below illustrates market volatility and its impact on your Protective Indexed Choice UL policy. If 1% is allocated to the S&P 5 Indexed interest crediting strategy, you can earn up to a maximum declared interest rate (Cap Rate), which is determined upon each contract anniversary. Even in Year 3 when Index performance is negative, the contract value is preserved. The result is simply that no interest is earned. Annual Point-to-Point Hypothetical Indexed Interest Crediting Strategy S&P 5 Return (excluding dividends) 15.% Indexed Credited Rate 1.% Cap Rate 9.5% 5.%.% Floor % -5.% -1.% Index Beginning of Year Index End of Year Cap Floor S&P 5 Return Indexed Credited Rate Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 1, , , , , , % 9.5% 9.5% % % % 13.6% 8.5% -8.% 9.5% 8.5% % For this example, with a 1% Participation Rate: In Year 1, the S&P 5 Index performance exceeded the Cap of 9.5%, so the indexed credited rate equals the Cap. In Year 2, the S&P 5 Index performance was less than the Cap and above the Floor, so the indexed credited rate equals the S&P 5 Index performance. In Year 3, the S&P 5 Index performance was less than the Cap and also less than the Floor, so the indexed credited rate equals the Floor. This shows that with a Floor of %, index performance can be negative and yet the result is simply that no interest is credited. This hypothetical example is intended solely to demonstrate the Annual Point-to-Point indexed interest crediting strategy. It is not indicative of the performance of any Protective Indexed Choice UL policy. A % interest credited rate will result in a reduction of the policy s Account due to policy charges. For our product, the participation rate for each Segment will never be less than its Minimum Guaranteed Participation Rate shown on the Policy Schedule. The Cap Rate for each Segment is subject to change at the discretion of the company and will never be less than its Minimum Guaranteed Cap Rate shown on the Policy Schedule. We will determine the Cap Rate for each new Segment on the Allocation Date. Generic Form: UL Thursday, September 7, 217 5:16 PM P. O. Box 266, Birmingham, AL Page 25 of 28 Agent: Financial Professionals Group, O WFe2dd1236-eeb6-48d9-94b-9ceff4bda