clarifying life s choices Life Insurance Selector Made Easy Producer Guide LIFE INSURANCE

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1 LIFE INSURANCE SM Life Insurance Selector Made Easy Producer Guide clarifying life s choices For Producer or Broker/Dealer Use Only. Not for Public Distribution.

2 CoNtENtS Getting Started with the Life Insurance Selector...1 How to Present and Administer the Life Insurance Selector.. 2 I. How Much?... 2 II. Insurance Portfolio Allocation... 5 III. Permanent Insurance Allocation cov2 For Producer or Broker/Dealer Use Only. Not for Public Distribution.

3 Getting Started with The Life Insurance Selector As a financial professional, you understand the importance of motivating your clients to take action to make conscious, deliberate decisions about the futures of those who depend on them, rather than leave their futures to chance and good luck. Studies have shown half of American households (58 million) readily admit they currently don t have adequate life insurance coverage the highest level ever. 1 To help make it easier for you to motivate your clients to quickly take action, MetLife brings you the Life Insurance Selector. What is the Life insurance selector? Designed to quickly uncover the coverage amount as well as policy type(s) that clients should consider based on the feedback they provide. The Life Insurance Selector will take your client s responses to a few brief questions and generate a personalized life insurance policy that can be designed to meet needs for his or her specific situation. This simple, straightforward tool is designed to help financial professionals make appropriate recommendations for all clients to address their financial needs, regardless of their stage in life. Packaged with the MetLife Life Insurance Income Simplifier, you now have one tool that will help you determine the right amount of insurance for your clients, and the most appropriate products that meet their objectives. the Life insurance selector: What s included There are three components to the Life Insurance Selector: 1. the Life Insurance Selector Brochure This tri-fold brochure is designed to give your client an overview of the process while informing him or her of what you will accomplish during the interview. You may want to walk your client through each part of this brochure, or verbally summarize the main points covered in each step of the Life Insurance Selector process (more details in the next section of this guide). This is an excellent piece to leave behind with your client, helping reinforce the discussion you had during your meeting. 2. the Life Insurance Selector Questionnaire This is the actual questionnaire that you will complete with your client. It is enclosed in the tri-fold brochure. Record your client s response to each question in the questionnaire. Upon completion, you have the option of manually scoring each section to uncover what policy clients should consider based on their answers. Once complete, you may take this booklet with you and use the illustration software to generate a personal recommendation. 3. the Life Insurance Selector Insurance Portfolio Allocation This is a personalized report generated by the illustration software U.S. Life Ownership Study - Household Ownership, Limra International, 2010 For Producer or Broker/Dealer Use Only. Not for Public Distribution. 1

4 Life Insurance Selector Questionnaire How to Present and Administer the Life Insurance Selector This guide outlines each step of the Life Insurance Selector process, detailing the purpose of each question and how each answer impacts the type of coverage your clients should consider. In addition, this guide will provide scripted language that will facilitate discussion of each question with your client. The Life Insurance Selector follows a three step process: I. How Much? II. Insurance Portfolio Allocation III. Permanent Insurance Allocation I. How Much? The purpose of this step is to help your clients understand how much life insurance they may need to meet their financial goals. While the Life Insurance Selector has integrated the MetLife Life Insurance Income Simplifier into the process, it s important to recognize that other methods may be used to determine an appropriate amount of coverage. There may be special circumstances and considerations that need to be factored into the calculation on a case-bycase basis. If you are using a method other than the MetLife Life Insurance Income Simplifier, and you have already determined an appropriate amount of coverage for your client, record this amount in the space provided labeled Additional Life Insurance Needed Today and continue to the next section of the Life Insurance Selector. Each step in the Life Insurance Selector process is detailed on the following pages, along with annotated instructions on how to administer the questionnaire. 2 For Producer or Broker/Dealer Use Only. Not for Public Distribution.

5 opening Script for the MetLife Life Insurance Income Simplifier: Probably one of the easiest ways to estimate how much life insurance is appropriate for your situation is to use the MetLife Life Insurance Income Simplifier. You can read about this in the brochure I just went over with you, but to review, the MetLife Life Insurance Income Simplifier focuses on how much money would be necessary to replace your monthly income in the case of death. By providing your family with a monthly income in your absence, your family may be able to keep the lifestyle they have grown accustomed to and cover any other obligations your monthly income may now cover. We can estimate your life insurance need by using this quick chart. Of course, we re making a number of assumptions here and I can create a more customized report for you in my office, but for the sake of our discussion today let s use these steps as a starting point. Instructions for MetLife s Life Insurance Income Simplifier: Determine your client s monthly income, the amount they wish to protect and how many years they wish to protect it. For protected monthly income levels and a duration of years protected other than what s shown, use the illustration software for a customized report. step 1 What is your monthly income? $ step 2 How much of this income do you want to provide for your family in the event something happens to you? step 3 How long would your family need this income in the event something happens to you? years step 4 Use the MetLife Insurance Income Simplifier chart to the right to determine how much life insurance you would want to provide to your family in the event something happens to you. step 5 Determine the amount of additional life insurance you may need today. Life insurance needed Write the amount of life insurance needed on this line. minus current Life insurance coverage equals Write the amount of life insurance your client currently has in place. additional Life insurance needed today If you are using the MetLife Life Insurance Income Simplifier, subtract to find the amount of additional life insurance your client needs today. If you are using Profiles or another method to determine a proper amount of life insurance, record that amount here. For Producer or Broker/Dealer Use Only. Not for Public Distribution. 3

6 Begin the Life Insurance Selector Interview: This chart represents the amount of money your client would need to receive today in order to replace a lifetime of earned income. While the chart makes several assumptions, it provides a good basis for each client s specific situation. Amount of Protected Monthly Income Years Protected $2,000 $197,540 $270,384 $330,044 $378,905 $418,922 $451,697 $478,539 $3,000 $296,311 $405,576 $495,066 $568,357 $628,384 $677,545 $717,809 $4,000 $395,081 $540,769 $660,087 $757,810 $837,845 $903,394 $957,079 $5,000 $493,851 $675,961 $825,109 $947,262 $1,047,306 $1,129,242 $1,196,348 $6,000 $592,621 $811,153 $990,131 $1,136,715 $1,256,767 $1,355,091 $1,435,618 $7,000 $691,391 $946,345 $1,155,153 $1,326,167 $1,466,229 $1,580,939 $1,674,888 $8,000 $790,161 $1,081,537 $1,320,175 $1,515,620 $1,675,690 $1,806,788 $1,914,157 $9,000 $888,932 $1,216,729 $1,485,197 $1,705,072 $1,885,151 $2,032,636 $2,153,427 $10,000 $987,702 $1,351,921 $1,650,219 $1,894,525 $2,094,612 $2,258,485 $2,392,697 It s important to note that the results in this table are based on a number of assumptions. $15,000 $1,481,553 $2,027,882 $2,475,328 $2,841,787 $3,141,919 $3,387,727 $3,589,045 $20,000 $1,975,403 $2,703,843 $3,300,437 $3,789,050 $4,189,225 $4,516,969 $4,785,393 $25,000 $2,469,254 $3,379,804 $4,125,546 $4,736,312 $5,236,531 $5,646,212 $5,981,742 $30,000 $2,963,105 $4,055,764 $4,950,656 $5,683,574 $6,283,837 $6,775,454 $7,178,090 $35,000 $3,456,956 $4,731,725 $5,775,765 $6,630,837 $7,331,143 $7,904,697 $8,374,438 $40,000 $3,950,807 $5,407,686 $6,600,874 $7,578,099 $8,378,450 $9,033,939 $9,570,787 $45,000 $4,444,658 $6,083,647 $7,425,984 $8,525,362 $9,425,756 $10,163,181 $10,767,135 $50,000 $4,938,509 $6,759,607 $8,251,093 $9,472,624 $10,473,062 $11,292,424 $11,963,484 Values in this table represent the present value of a future income stream and are based on a hypothetical rate of return of 4%. If the rate of return were higher or lower a different value would result. This MetLife Insurance Income Simplifier represents the amount of life insurance needed to replace your income or a percentage of income for a period of time. While the chart makes several assumptions, a custom report can be created for your specific situation. 4 For Producer or Broker/Dealer Use Only. Not for Public Distribution.

7 II. Insurance Portfolio Allocation The next step in the Life Insurance Selector process evaluates your client s preferences between the benefits offered by term insurance and permanent insurance. The purpose of this step is to make a personalized recommendation of the combination that best meets your client s objectives. This section consists of eight questions. Next to each question you will find an explanation of the purpose of the question. Next to each question you will also find a scripted response you may want to use as a guide to share with your client. This scripted response is designed to help you either introduce a question, or explain the purpose of the question to your client. These responses will help facilitate discussion with your client. This appears in green text. Review each question with your client and record his or her responses in the space provided. For Producer or Broker/Dealer Use Only. Not for Public Distribution. 5

8 opening Script for Insurance Portfolio Allocation Presentation: Follow the introductory script shown at the beginning of Section II. II. Insurance Portfolio Allocation Question 1 This question asks about your client s desire to leave an inheritance or legacy. Life insur ance can play an important part in doing this efficiently. scripted response: Many people want to be remembered by leaving an inheritance for their family, those who depend on them financially, or a favorite charity, and life insurance can play a role in making that happen. Depending on how you feel about this, it ll be factored into your recommendation. BEGIN THE INSURANCE PORTFOLIO ALLOCATION Some people feel they need life insurance for a certain period of time just long enough to meet their responsibilities for those who depend on them. This is typically done with term insurance. Others, however, recognize that owning some form of life insurance for their entire lives can provide them with added protection and flexibility as they prepare for life s possibilities. This is typically done with permanent insurance. Many people find their objectives are best met with a combination of term and permanent insurance. 1. The idea of leaving an inheritance is important to me either for my family or a charitable organization. I would want to do this in an efficient manner. 2. In the future my adult children and/or parents may rely on me for financial support. I want to make sure my life insurance policy is there if they need it. 3. I would prefer the least expensive type of life insurance, even though my benefits will expire at some point in the future. CIRCLE YOUR PREFERENCE Question 2 This question addresses the possibility of someone unexpectedly relying on your client in the future for financial support, such as a parent, adult child or both. scripted response: If your parents are still alive, there s a good chance they ll live long and healthy lives. And as people get older, it s reasonable to believe that they may get sick and need your help. At the same time, while you hope for the best for your children, there may come a time when they move back home or look to you for additional financial support later in life. While no one plans for this, some people feel it s important to take this into account when planning for the future. Question 3 This question is designed to illustrate the short-term limitation found in term insurance, and to reveal any budgetary constraints that may impact your client s decision. scripted response: While some types of insurance like term come at a very low initial cost, these policies usually only last for a limited period of time. Other types of insurance, however, come at a higher price but they would last longer and be in place when you really need it, regardless of how long you may live. 6 For Producer or Broker/Dealer Use Only. Not for Public Distribution.

9 CIRCLE YOUR PREFERENCE 1. The idea of leaving an inheritance is important to me either for my family or a charitable organization. I would want to do this in an efficient manner. 2. In the future my adult children and/or parents may rely on me for financial support. I want to make sure my life insurance policy is there if they need it. 3. I would prefer the least expensive type of life insurance, even though my benefits will expire at some point in the future. 4. I only want life insurance for a limited period of time (i.e., until my mortgage is paid, children finish college, or other financial obligations are met). Question 4 This question highlights some of the reasons why people may only want their insurance coverage to last a limited period of time. An response indicates that they feel their current insurance needs are only temporary. Use any conversation that may follow this question to help determine the length of any term protection that may be part of their insurance portfolio allocation. scripted response: These may be some of the responsibilities you have today that you re going to protect with life insurance. What you may want to ask yourself is when if ever will these responsibilities go away? Or, if you are concerned about new, unexpected obligations that may come up in the future. 5. If I die prior to my spouse during retirement, I want to ensure he or she receives a life insurance death benefit. 6. If I were to die during my working years, I would want my family to receive a life insurance benefit that would replace the full value of my income. Question 5 Your client and his or her spouse may have substantial assets and one may not need any addi tion al support during retirement when the other passes. This question seeks to determine your client s desire to provide a source of retirement income for his or her spouse. scripted response: One of the top reasons why people own life insurance during their working years is to replace their income for their family and others who de pend on them if they died unex pect edly. During retirement, many people rely on income from annuities or a pension this income could stop at your death. You may want to ask yourself how your spouse would manage financially should he or she lose this source of retirement income at your death. Would your spouse have adequate income from other sources? Question 6 This question asks how your client feels about protecting his or her full insurance need, whether it was derived by MetLife Life Insurance Income Simplifier, Human Life Value, Profiles or some other needs analysis method. scripted response: We ve just discussed the proper amount of life insurance for your specific situation. What you may want to think about is what would happen if we didn t move forward today with the full amount of coverage. For Producer or Broker/Dealer Use Only. Not for Public Distribution. 7

10 1. The idea of leaving an inheritance is important to me either for my family or a charitable organization. I would want to do this in an efficient manner. 2. In the future my adult children and/or parents may rely on me for financial support. I want to make sure my life insurance policy is there if they need it. 3. I would prefer the least expensive type of life insurance, even though my benefits will expire at some point in the future. 4. I only want life insurance for a limited period of time (i.e., until my mortgage is paid, children finish college, or other financial obligations are met). 5. If I die prior to my spouse during retirement, I want to ensure he or she receives a life insurance death benefit. 6. If I were to die during my working years, I would want my family to receive a life insurance benefit that would replace the full value of my income. Question 7 This question asks your client how he or she feels about ensuring his or her family receives a benefit from his or her life insurance policy, should he or she live to a very old age. scripted response: Some people own life insurance throughout their working years, and feel they may want to drop the coverage later in life. Others, however, would prefer to know that after paying life insurance premiums for many years, they would be assured that their family would receive a benefit when they die, no matter how long they live. 7. Regardless of how long I may live, it s important for me to have my life insurance in place when I die. 8. I don t want to commit to permanent insurance today, however I d like to have the right to convert term coverage into permanent coverage in the future should my situation change without having to undergo additional medical screening. Question 8 Recognizing that many people will appreciate the benefits of a permanent type of policy, this question gives your client the opportunity to reserve the right to purchase it in the future if he or she is not ready to commit to it today. This can be done with the conversion privileges available in MetLife s term insurance portfolio. scripted response: Some people may hesitate when making a decision on something they expect to own their entire lives. Waiting to make this decision usually increases their total out-of-pocket expenses. For these people, through term insurance, we can lock in their good health rating today and make permanent insurance available at specific option dates in the future regardless of how their health may change. 8 For Producer or Broker/Dealer Use Only. Not for Public Distribution.

11 Circle your client s responses for each question in the table. Write the score for each selected answer under the Score column. Add these results to find your client s total score for Section II. Write the score in the row labeled Insurance Portfolio Allocation Score. Find the allocation that matches your client s score. Based on how your client answered the questions in Section II, an insurance portfolio allocation is recommended. The suggestions will be one of five insurance portfolio allocations: 100 percent term insurance 75 percent term and 25 percent permanent insurance 50 percent term and 50 percent permanent insurance 25 percent term and 75 percent permanent insurance 100 percent permanent insurance The corresponding scripts will offer suggestions on how to share the questionnaire results with your clients based on their Insurance Portfolio Allocation score. INSTRUCTIONS: Circle your answers from Section II in the table to the right. Add the scores to determine the type of policy or policies that should be considered based on your situation. 0 POINTS 100% Term 100% Term Clearly you re concerned about protecting those who depend on you; however, today you feel you only want coverage for a limited period of time. Based on your answers, a 100% term portfolio with the option of future conversion should be considered based on your answers. The next section will help you understand which permanent policy you may want to consider converting to in the future. 1-2 POINTS 75% Term 25% Permanent 75% Term 25% Permanent You recognize the importance of owning life insurance throughout your entire life; however, you also acknowledge that your biggest concern is protecting those who depend on you during your working years. An insurance portfolio with mostly term insurance and a small amount of permanent insurance should be considered based on your answers. 50% Term 50% Term 3-5 points 50% Permanent 50% Term 50% Permanent Your answers show that you appreciate both the benefits of permanent insurance and term insurance. An insurance portfolio consisting of equal amounts of term and permanent protection should be considered based on your answers. Question Score INSURANCE PORTFOLIO ALLOCATION SCORE 25% Term 6-7 POINTS 75% Permanent 25% Term 75% Permanent Protecting those who depend on you for your entire lifetime regardless of how long you may live is most important to you. Your preferences indicate that an insurance portfolio consisting mostly of permanent insurance should be considered based on your answers. 8 POINTS 100% Permanent 100% Permanent You want lifetime protection, to leave a legacy and to protect your spouse s retirement income. An insurance portfolio of 100% permanent life insurance should be considered based on your answers. AVAILABLE TERM PRODUCTS: MetLife and its affiliates offer term policies with guaranteed level premiums 1 for a specific For Producer or Broker/Dealer Use Only. Not for Public Distribution. 9

12 In the event your client s recommenda tion is for 100 percent term insurance, you may still want to complete the next section to educate your client and illuminate the benefits of permanent insurance. Discussing the benefits of permanent insurance with your client today even if only term insurance is purchased will make future conversions to permanent insurance easier. 0 POINTS 100% Term 100% Term Clearly you re concerned about protecting those who depend on you; however, today you feel you only want coverage for a limited period of time. Based on your answers, a 100% term portfolio with the option of future conversion should be considered based on your answers. The next section will help you understand which permanent policy you may want to consider converting to in the future. 1-2 POINTS 75% Term 25% Permanent 75% Term 25% Permanent You recognize the importance of owning life insurance throughout your entire life; however, you also acknowledge that your biggest concern is protecting those who depend on you during your working years. An insurance portfolio with mostly term insurance and a small amount of permanent insurance should be considered based on your answers. 50% Term 50% Term 3-5 points 50% Permanent 50% Term 50% Permanent Your answers show that you appreciate both the benefits of permanent insurance and term insurance. An insurance portfolio consisting of equal amounts of term and permanent protection should be considered based on your answers. INSURANCE PORTFOLIO ALLOCATION SCORE 25% Term 6-7 POINTS 75% Permanent 25% Term 75% Permanent Protecting those who depend on you for your entire lifetime regardless of how long you may live is most important to you. Your preferences indicate that an insurance portfolio consisting mostly of permanent insurance should be considered based on your answers. 8 POINTS 100% Permanent 100% Permanent You want lifetime protection, to leave a legacy and to protect your spouse s retirement income. An insurance portfolio of 100% permanent life insurance should be considered based on your answers. AVAILABLE TERM PRODUCTS: MetLife and its affiliates offer term policies with guaranteed level premiums 1 for a specific period of time. After the level premium period, the premiums increase significantly each year. During the level period you can convert your term policy to a permanent policy with no additional medical questions. Term Policy Type Description These are the generic names for the various term products available through MetLife and its affiliates. Work with your client to determine the best product that fits his or her situation. 10 and 15 Year Term 20 Year Term The more affordable choices, generally most appropriate for short-term needs or when the owner expects to convert to a permanent policy in the future. The most popular choice. Provides coverage for longer term needs and the flexibility to convert over a longer period of time than 10 or 15 year term. 30 Year Term 2 Costs more than 10, 15 or 20 year term insurance and provides the longest term coverage duration. 1 All Guarantees are subject to the financial strength and claims paying ability of the issuing company 2 Not available in Washington Now that you ve determined if your client should consider a combination of term and permanent insurance, the following section Permanent Insurance Allocation is designed to help you determine which type of permanent policy is most appropriate. 10 For Producer or Broker/Dealer Use Only. Not for Public Distribution.

13 III. Permanent Insurance Allocation The final step in the Life Insurance Selector process evaluates your client s preferences between the different benefits offered by various types of permanent insurance. The purpose of this step is to make a personalized recommenda tion of the type of permanent insurance that best meets your client s objectives. This section consists of six questions. Next to each question you will find an explanation of the purpose of the question. Next to each question you will also find a scripted response you may want to use as a guide and share with your client. This scripted response is designed to help you either introduce a question, or explain the purpose of the question to your client. These responses will help facilitate discus sion with your client. This appears in green text. Review each question with your client and record his or her responses in the space provided. For Producer or Broker/Dealer Use Only. Not for Public Distribution. 11

14 opening Script for Permanent Insurance Allocation Presentation: Follow the introductory script shown at the beginning of Section III. Question 1 This question measures your client s feelings toward guarantees. If the response is, or Unsure the result points toward whole life. If the response is or the result points toward variable universal life. III. Permanent Insurance Allocation BEGIN THE PERMANENT INSURANCE ALLOCATION Many people find that owning some term insurance is an effective way to protect their families and others who depend on them, particularly for the short-term. Many of these same people, however, also want the added protection and flexibility of permanent insurance but are unsure as to which type is right for their situation. The most appropriate type of permanent insurance for you is based on your preferences and attitudes toward a range of factors such as risk preference, flexibility, guarantees and your retirement and legacy objectives. scripted response: Some policies offer more guarantees than others, like a fixed premium guaranteed to never increase. This gives you a degree of certainty with your cash flow, but you usually can t make any changes to it in the future. These guarantees typically have a cost associated with them. 1. I prefer the guarantee of knowing exactly what my insurance policy premium and death benefit will be, even though I may not be able to change it in the future. 2. I would like to have the flexibility to increase or decrease my premium payment, even though doing so may have an impact on my policy s performance and guarantees (if applicable). 3. I would like my life insurance policy cash value to grow and eventually be worth more than the cumulative premiums that I ve paid, even though it may require a higher initial premium outlay. CIRCLE YOUR PREFERENCE Unsure Unsure Unsure Question 2 This question measures your client s feelings toward flexibility of premium payments. If the response is or the result points toward variable universal life. If the response is Unsure, or the result points toward whole life. scripted response: Some policies give you the flexibility to change your premium payment. For example, you could increase your payment one year, decrease it the next, or even skip a payment one year if you needed to. Now, it s important to understand that if you make these kinds of changes to your payments it will have an impact on your policy. If you lowered a payment one year it may mean an even higher payment is required in later years. At the same time, paying extra in one year may relieve you of a payment years down the road. Probably most important, you need to understand that making any kinds of changes to your premium payments usually means losing any guaranteed protection you may have initially requested. 12 For Producer or Broker/Dealer Use Only. Not for Public Distribution.

15 III. Permanent Insurance Allocation BEGIN THE PERMANENT INSURANCE ALLOCATION Many people find that owning some term insurance is an effective way to protect their families and others who depend on them, particularly for the short-term. Many of these same people, however, also want the added protection and flexibility of permanent insurance but are unsure as to which type is right for their situation. The most appropriate type of permanent insurance for you is based on your preferences and attitudes toward a range of factors such as risk preference, flexibility, guarantees and your retirement and legacy objectives. CIRCLE YOUR PREFERENCE Question 3 This question measures your client s feelings toward cash value accumulation and the possibility of owning a policy that someday may have an accumulated cash value worth more than what he or she has paid in premiums. If the response is or the result points toward both whole life and variable universal life. If the response is Unsure, or the result points toward universal life with a guaranteed death benefit. scripted response: There are basically two types of policies, those that have some type of cash value and those that don t. Policies that have value may someday be worth more than the total amount of money you ve paid for it. This may sound like an attractive feature, and it usually is, but you should understand that these types of policies typically come at a slightly higher initial cost. 1. I prefer the guarantee of knowing exactly what my insurance policy premium and death benefit will be, even though I may not be able to change it in the future. 2. I would like to have the flexibility to increase or decrease my premium payment, even though doing so may have an impact on my policy s performance and guarantees (if applicable). 3. I would like my life insurance policy cash value to grow and eventually be worth more than the cumulative premiums that I ve paid, even though it may require a higher initial premium outlay. 4. It s important for me to find additional ways to set money aside on a tax-free or tax-deferred basis to meet my long term retirement goals. 5. I prefer the type of policy that has cash value. Question 4 This question measures your client s desire to set aside additional money on a tax-favored basis for his or her retirement. If the response is or the result points toward both whole life and variable universal life. If the response is Unsure, or the result points toward universal life with a guaranteed death benefit. Unsure Unsure Unsure Unsure scripted response: Some people look at the cash value of their life insurance policy as money they may be able to use later in life. For example, you may have enough value in your policy to help out in case of emergencies, to pay for a child s or grandchild s college education, or even to supplement your retirement income. A policy can be structured in a specific way in order to provide tax-free access to cash value. I can explain in more detail how it works if this is the option that you ultimately choose. For Producer or Broker/Dealer Use Only. Not for Public Distribution. 13

16 CIRCLE YOUR PREFERENCE 1. I prefer the guarantee of knowing exactly what my insurance policy premium and death benefit will be, even though I may not be able to change it in the future. Unsure 2. I would like to have the flexibility to increase or decrease my premium payment, even though doing so may have an impact on my policy s performance and guarantees (if applicable). Unsure 3. I would like my life insurance policy cash value to grow and eventually be worth more than the cumulative premiums that I ve paid, even though it may require a higher initial premium outlay. Unsure Question 5 This question measures your client s feelings toward guaranteed cash value growth. If the response is, or Unsure the result points toward whole life. If the response is or the result points toward universal life. 4. It s important for me to find additional ways to set money aside on a tax-free or tax-deferred basis to meet my long term retirement goals. 5. I prefer the type of policy that has cash value. I would like to know that my policy cash value is guaranteed regardless of future performance of interest rates and stock markets. 6. I prefer the type of policy that has cash value. I am willing to accept some risk for more potential policy cash value growth; I understand, however, that a declining market may require additional premium in the future to keep my policy in place and that any investment into a variable insurance policy is subject to market risk including loss of principal. Unsure Unsure Unsure scripted response: There s a type of policy available that offers guaranteed cash value. That means, regardless of what happens with the stock market, or interest rates, your cash value is guaranteed to grow. In addition, non-guaranteed policy dividends may significantly increase that growth over time. Question 6 This question measures your client s feelings toward the equities market. If the response is, or Unsure the result points toward variable universal life. If the response is or the result points toward universal life or whole life. scripted response: There s a type of policy available that offers cash value growth tied to the stock market s performance. And, just as the stock market goes up and goes down, the growth of your policy s cash value will likely vary from year to year. While this means you have some great potential for cash value growth, you should also be prepared for the impact of any possible declines in the market. 14 For Producer or Broker/Dealer Use Only. Not for Public Distribution.

17 Upon completion of the questions in this section, you may manually score your client s responses to find his or her appropriate Permanent Insurance Allocation. The result will be one of five permanent insurance recommendations: Universal Life with Coverage Continuation Rider Current assumption Universal Life or Whole Life Whole Life Whole Life or Variable Universal Life Variable Universal Life Alternatively, you may wait on scoring this section and enter the results into the illustration software for an automated report. Circle your client s responses for each question in the table. Write the score for each selected answer under the Score column. Add these results to find your client s total score for Section III. Write the score in the row labeled Permanent Insurance Allocation Score. INSTRUCTIONS: Circle your answers from Section III in the table to the right. Add the scores to determine the type of permanent policy that should be considered for the permanent portion of your insurance portfolio. BELOW 59 POINTS: POINTS: POINTS: Question Unsure PERMANENT INSURANCE ALLOCATION SCORE Your answers show that you favor guaranteed death benefit protection over the potential for cash value growth. You should discuss with your financial representative how universal life insurance with secondary guarantees should be considered based on your situation. Your answers show that you generally prefer guaranteed death benefit protection, yet you may want to consider a policy that has some element of cash value growth. Working with your financial representative, you should consider universal life or whole life insurance to determine what policy best fits your situation. Your answers show that you prefer a policy that has both guaranteed death benefit protection as well as a guaranteed form of cash value growth. You should discuss with your financial representative how whole life insurance should be considered based on your situation. Score Share the results by reading the corresponding script based on your client s Permanent Insurance Allocation score POINTS: OVER 72 POINTS: You said you would prefer a policy with the potential for cash value growth, yet you also may be unsure about taking risk with your policy values. Working with your financial representative, you should consider whole life insurance. In addition, you can also discuss the potential risks, benefits and investment options available with variable universal life to determine what policy best fits your situation. You clearly prefer a policy that has cash value with the potential for growth associated with the stock market. Working with your financial representative, you should discuss the potential risks, benefits and investment options available with variable universal life insurance. For Producer or Broker/Dealer Use Only. Not for Public Distribution. 15

18 For all sections, it is up to you to work with your client in order to make a final determination of the most appropriate policy for his or her situation. If your client s score is in this point range, you should help him or her understand the differences between universal life and whole life. One of these types of policies should be considered based on how your client answered the questions POINTS: POINTS: POINTS: OVER 72 POINTS: Your answers show that you generally prefer guaranteed death benefit protection, yet you may want to consider a policy that has some element of cash value growth. Working with your financial representative, you should consider universal life or whole life insurance to determine what policy best fits your situation. Your answers show that you prefer a policy that has both guaranteed death benefit protection as well as a guaranteed form of cash value growth. You should discuss with your financial representative how whole life insurance should be considered based on your situation. You said you would prefer a policy with the potential for cash value growth, yet you also may be unsure about taking risk with your policy values. Working with your financial representative, you should consider whole life insurance. In addition, you can also discuss the potential risks, benefits and investment options available with variable universal life to determine what policy best fits your situation. You clearly prefer a policy that has cash value with the potential for growth associated with the stock market. Working with your financial representative, you should discuss the potential risks, benefits and investment options available with variable universal life insurance. AVAILABLE METLIFE LIFE POLICIES BASED ON YOUR ANSWERS ABOVE If your client s score is in this point range, review how your client answered each question to get an understanding of which policy is most appropriate for his or her situation. For clients who feel strongly about guarantees, a whole life policy or universal life with a coverage continuation rider should be considered. For clients who feel strongly for flexibility and equity growth, a variable universal life policy with a balanced asset allocation should be considered. Be sure to explain the differences between these two types of policies. Permanent Policy Type Universal Life 3 Whole Life Variable Universal Life 4 Description Universal life generally provides a guaranteed premium and can be designed to provide a guaranteed death benefit and typically does not focus on cash value accumulation. Whole life insurance has guaranteed level premiums, guaranteed cash value and guaranteed death benefits. Whole life is also eligible to receive annual dividends. Dividends are not guaranteed; however, if paid they may increase the cash value and death benefits over time. Variable universal life features an equity component which permits the allocation of premiums among professionally managed funding options. The performance of these funding options may affect the cash value and death benefit amounts. Investments in variable universal life are subject to market risk including loss of principal. The policy s 5 year no-lapse guarantee remains in force provided required premiums are paid and values are not taken out of the policy. If the guarantee terminates, These are the generic names for permanent insurance products available through MetLife and its affiliates. Work with your client to determine the best policy for his or her situation. 16 For Producer or Broker/Dealer Use Only. Not for Public Distribution.

19 NotES For Producer or Broker/Dealer Use Only. Not for Public Distribution. 17

20 Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. Your clients should seek advice based on their particular circumstances from an independent tax advisor. MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. Your clients should consult with and rely on their own independent legal and tax advisors regarding their particular set of facts and circumstances. Prospectuses for Equity Advantage Variable Universal Life, and for the investment portfolios offered thereunder, are available from MetLife. The policy prospectus contains information about the policy s features, risks, charges and expenses. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The investment objectives, risks and policies of the investment options, as well as other information about the investment options, are described in their respective prospectuses. Clients should read the prospectuses and consider this information carefully before investing. Product availability and features may vary by state. MetLife life insurance policies have limitations, exclusions, charges, termination provisions and terms for keeping them in force. There is no guarantee that any of the variable investment options in this product will meet its stated goals or objectives. The cash value is subject to market fluctuations so that, when withdrawn, it may be worth more or less than its original value. Guarantees are subject to the claims paying ability and financial strength of the issuing insurance company. Life insurance products are issued by MetLife Investors USA Insurance Company, Irvine, CA, Metropolitan Life Insurance Company, New York, NY, and in New York only by First MetLife Investors Insurance Company, New York, NY. All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company. Variable products are distributed by MetLife Investors Distribution Company, Irvine, CA. All are MetLife companies. January 2012 Insurance Products are: Not A Deposit Not FDIC Insured Not Insured By Any Federal Government Agency Not Guaranteed By Any Bank Or Credit Union May Go Down In Value Metropolitan Life Insurance Company First MetLife Investors Insurance Company 200 Park Avenue New York, NY metlife.com MetLife Investors USA Insurance Company MetLife Investors Distribution Company 5 Park Plaza, Suite 1900 Irvine, CA BDVL22200 L [0213] 2012 METLIFE, INC. PEANUTS 2012 Peanuts Worldwide For Producer or Broker/Dealer Use Only. Not for Public Distribution.