hij abc CareShield : Benefits you can depend on Care for your clients. Protection for their family.

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1 CareShield Universal Life Individual Life Insurance hij abc Products issued by: Minnesota Life Insurance Company CareShield : Benefits you can depend on Care for your clients. Protection for their family. Financial Professional

2 GOOD RELATIONSHIPS get better with time Securian Financial Group is one of the nation s largest and strongest financial services providers. For over 135 years, clients have entrusted us with protecting their loved ones. We continue to stand behind our clients, helping them meet their financial objectives through every stage of life. For more information about our company and the clients we serve, visit securian.com. WHAT S INSIDE A new solution for aging clients 3 What is chronic illness? 3 Your sales opportunity 4 Simplicity, guarantees and flexibility 4 Helping clients understand their options 5 Chronic illness benefits 6 Calculating death benefits after chronic and terminal illness claims 7 CareShield product summary 8 2

3 A new solution for aging clients According to the National Council on Aging, approximately 80% of older adults have at least one chronic disease. 1 As these illnesses progress, clients may have difficulty performing everyday activities. CareShield was developed to provide a solution for aging clients who may develop one or more chronic illnesses. By combining a universal life insurance policy with built-in living benefits for chronic and terminal illness, CareShield allows clients to receive benefits regardless of whether they require care. 2 Clients may receive chronic or terminal illness benefits, 3 a death benefit or both. These benefits, along with a built-in return of premium feature, offer distinct advantages for your current and prospective clients. What is chronic illness? Unlike some products with chronic illness benefits, there is no requirement that the insured have a permanent condition in order to be eligible for benefits. 4 When your client becomes eligible for benefits, the money received can be used for any purpose no evidence of expenses is necessary. To be considered a "chronically ill individual," a licensed health care practitioner must certify within the preceding twelve-month period that the insured: 1. Is unable to perform, without substantial assistance from another person, at least two activities of daily living (bathing, getting dressed, eating, continence, toileting, transferring) due to a loss of functional capacity for a period of at least 90 days; or 2. Requires substantial supervision to protect the insured from threats to health and safety due to severe cognitive impairment. CareShield can protect your clients THROUGHOUT THEIR LIFETIME 1 National Council on Aging Fact Sheet, 2 While the policy remains in force. Insurance policy guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company. 3 Paid as an acceleration of the death benefit. 4 Confinement due to medical condition is required to be permanent in Connecticut. 3

4 Your sales opportunity CareShield is ideally suited for clients preparing for or enjoying retirement, who desire: Death benefit protection. More than just chronic illness coverage. Guaranteed benefits for chronic illness, terminal illness or death. Premiums with rates guaranteed to never increase. The option to drop coverage later with the return of some or all premium paid. Simplicity, guarantees and flexibility Provide the protection your clients need with the simplicity, guarantees and flexibility they want CareShield offers: Simplicity A streamlined, online application and underwriting process with straightforward benefits Guarantees Premium rates will never increase and benefits are guaranteed. 5 As long as they pay the required premiums to keep their policy from lapsing, CareShield can protect your clients throughout their lifetime. Flexibility CareShield offers benefits to align with your clients changing needs: Clients can choose whether to use their policy for chronic or terminal illness benefits, or preserve the death benefit for their beneficiaries. Clients can choose to take less than the maximum monthly chronic illness benefit, extending the length of time they have coverage. Clients can terminate coverage and receive a partial or full refund of the premiums paid, depending on how long they ve had their policy. 5 Guarantees are based on the financial strength and claims-paying ability of the issuing insurance company, as well as the continued payment of premium to keep the policy in force. 4

5 Helping clients understand their options CareShield allows the ability to pay multiple years while letting clients choose how they want to use their face amount. How CareShield works Your client pays premiums CareShield provides benefits: Death Chronic illness Terminal illness Return of premium Tax-free death benefit paid to your client s beneficiaries 4% of face amount paid out monthly 6 upon insured's certification as a chronically ill individual Partial death benefit advancement upon certification of insured s terminal condition caused by accident or sickness resulting life expectancy of 12 months or less Client may elect to discontinue coverage and receive a premium refund: 7 After 15 years: 50% of premiums paid After 20 years: 75% of premiums paid After 25 years: 100% of premiums paid If all terminal illness benefits are accelerated: $10,000 tax-free death benefit paid to beneficiaries upon your client s death 6 If the 4% accelerated benefit exceeds the IRS per diem limits, the policyholder would be required to take the lesser of the two IRS limits: $10,200/month or $124,100/ year. Based on $340/day for 30-day month and 365-day year. Limits are subject to change. 7 Only available at given premium refund anniversaries extending 60 days beyond each premium refund anniversary. The premium refund may not equal the sum of premiums paid. Currently, the premium refund cannot exceed 85% of the policy face amount. Insurance coverage terminates if the premium refund is exercised. 5

6 Chronic illness benefit amounts Chronic illness benefits are paid monthly. The monthly benefit is 4% of the policy face amount, subject to the IRS per diem limits. For example, a policy with a $150,000 face amount will pay a monthly benefit of $6,000 ($150,000 X.04 = $6,000). At 4% per month, benefits will continue for 25 months (4% x 25 months = 100% of face amount). If monthly benefits are capped as a result of the IRS per diem limits or the owner elects to receive lower benefit payments, benefits will last longer than 25 months. Sample CareShield chronic illness benefit amounts Life insurance face amount 4% Monthly chronic illness benefit $50,000 $2,000 $75,000 $3,000 $100,000 $4,000 $125,000 $5,000 $150,000 $6,000 $175,000 $7,000 $200,000 $8,000 $225,000 $9,000 $250,000 $10,000 $275,000-$500,000 $10,200 No matter how clients use CareShield, they re covered While your client is receiving chronic or terminal illness benefits, CareShield will help lessen the financial burden: 1. Premiums no longer have to be paid. 2. Acceleration of death benefit for chronic or terminal illness is generally tax-free Any unused death benefit will be paid to beneficiaries upon the insured s death. 8 Based on current federal tax law, there is uncertainty as to whether some or all chronic or terminal illness benefit payments from this policy are taxed when received. We cannot assure you that chronic or terminal illness benefit payments will be treated as tax-free death benefits. Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender, and will reduce both the surrender value and death benefit. Clients should consult a tax advisor before requesting chronic or terminal illness payments from this policy, or before taking a policy loan or withdrawal. 6

7 Calculating death benefits after chronic and terminal illness claims The tables below shows the annual impact of chronic illness and terminal illness benefit payments on a hypothetical policy. The accumulation value, surrender value, loan value and death benefit will be reduced by a chronic or terminal illness benefit payment under this agreement. Chronic illness example Chronic illness claim: Age 80 Initial death benefit face amount: $150,000 Chronic illness benefit amount: 4% of the initial death benefit ($6,000/month or $72,000 per year) Age Face amount Total chronic illness accelerated death benefit payments available Remaining face amount after payment Death benefit 80 $150,000 $72,000 $78,000 $78, $78,000 $72,000 $6,000 $6, $6,000 $6,000 $0 Policy ends Terminal illness example Initial death benefit face amount: $150,000 Terminal illness claim amount: Maximum allowable benefit 9 Age Death benefit Terminal illness accelerated death benefit Death benefit 80 $150,000 $140,000 $10,000 9 The maximum allowable terminal illness benefit is the remaining death benefit in the contract less a terminal illness residual amount (currently equal to $10,000) and less any loan balance (including unpaid loan interest). 7

8 CareShield product summary Policy type Issue ages Minimum and maximum face amount Death benefit option Chronic illness benefit Terminal Illness benefit Return-of-premium feature Universal life policy with accelerated death benefits for chronic and terminal illnesses based on age nearest birthday $50,000 minimum; $500,000 maximum Level Maximum monthly benefit is equal to the lesser of 4% of the death benefit or IRS per diem limit. As long as the insured is certified as a chronically ill individual, the full chronic illness benefit payment will be paid after a 90-day elimination period. Benefits can be used for any purpose the policyholder chooses. Chronic illness does not require an expectation of a permanent condition; however, confinement due to medical condition is required to be permanent in Connecticut. Allows for advance payment of the death benefit if the insured is certified as having a terminal condition (a condition caused by sickness or accident which directly results in a life expectancy of 12 months or less) Policyholder can elect to terminate coverage and receive a refund of a portion of premiums paid. After 15th policy anniversary: 50% of premiums returned After 20th policy anniversary: 75% of premiums returned After 25th policy anniversary: 100% of premiums returned No-lapse guarantee If the policyholder pays the no-lapse-guarantee premium set at issue, coverage is guaranteed to age 121. Underwriting issue classes Surrender charge Premium mode Monthly benefit termination Preferred, Standard, Table Ratings A-H Male, Female Tobacco, Non-Tobacco Applies for the first 15 years after issue or face amount increase Annual, semi-annual, quarterly and monthly Chronic illness benefits end upon: Depletion of dedicated CI benefit face amount Insured s death Policy surrender Failure to meet eligibility requirements Indebtedness exceeding accumulation value Receipt of policyowner's written cancellation CareShield offers your clients a unique combination of life insurance and chronic illness protection. To learn how CareShield can provide your clients benefits they can depend on, contact your Life Sales Support Team today: (Securian and Broker-Dealer) , Option 1 (Independent Brokerage) Please keep in mind that the primary reason to purchase a life insurance product is the death benefit. CareShield is a life insurance policy that provides an option to accelerate the death benefit in the event the insured becomes chronically or terminally ill. Other terms and conditions apply. The accumulation value, surrender value, loan value, and death benefit will be reduced by a chronic or terminal illness benefit payment under this agreement. The policy may not cover all of the costs associated with chronic or terminal illness. This product is generally not subject to health insurance requirements, and does not provide long-term care insurance subject to state long-term care insurance law. This product is not a state-approved Partnership for Long Term Care Program product, and is not a Medicare Supplement policy. Receipt of chronic or terminal illness benefit payments under this product may adversely affect eligibility for Medicaid or other government benefits or entitlements. Securian Financial Group, Inc. Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues. 400 Robert Street North, St. Paul, MN Securian Financial Group, Inc. All rights reserved. F DOFU For financial professional use only. Not for use with the public. This material may not be reproduced in any form where it would be accessible to the general public.