ING INDEXED UNIVERSAL LIFE-GLOBAL CHOICE A Flexible Premium Adjustable Life Insurance Policy (Standard Form # /12; may vary by state)

Transcription

1 Retirement Extra using Life Insurance ING INDEXED UNIVERSAL LIFE-GLOBAL CHOICE (Standard Form # /12; may vary by state) Designed for: Valued Client Presented by: Unassigned Agent 8055 East Tufts Avenue, Suite 650 Denver, CO This analysis is for illustration purposes and is not guaranteed. It is not a financial plan and does not address all areas of financial concern. This analysis is based upon information provided by the client. The ING Life Companies and their agents and representatives do not give tax or legal advice. Please consult with your attorney, accountant, or tax advisor for additional information. LIFE RX-74 Page 1 of 34

2 Using ING Indexed Universal Life-Global Choice with Retirement Extra The ING Indexed Universal Life-Global Choice product is a flexible premium, universal life insurance product designed to provide a death benefit and allow for cash values. It includes an Indexed Strategy with 3 different crediting options where index credits are linked in part to increases, if any, in outside indexes. The S&P Year Point to Point Index Strategy is subject to an annual minimum and maximum index credit rate. The 2 and 5 Year Global Indexed Strategies are linked to weighted changes in three indexes the S&P 500 Index, the EURO STOXX 50 Index, and the Hang Seng Index - and calculates an index credit under a formula employing a look back strategy where a portion of the better performing two out of three indexes is used, and is subject to a Guaranteed Minimum Interest Rate. While the policy values may be affected by external indexes, the policy does not directly participate in any index fund, stock or equity investments, and all policy guarantees are based solely on the financial strength and claims-paying ability of Security Life of Denver Insurance Company. The product is not a variable product or any type of investment contract. See IMPORTANT INDEX DISCLAIMERS for more information about each index. This presentation is not valid without an accompanying personalized policy illustration. Version M HO, Released 04/01/2013 Page 2 of 34

3 Retirement Extra Using Life Insurance Summary Your Number $2,456,863 Following is a summary of the benefits of Retirement Extra Using Life Insurance, based on the assumptions in the accompanying illustration. Valued Client, Age: 45 Retirement Age: 70 Age to Start Cash Value Distribution*: 70 Policy Loan Type: Select Loans PREMIUM Initial Annual Policy Premium: $6,000 Number of Years to Pay Policy Premium: 25 Total Policy Premiums over 25 Years: $150,000 CASH VALUE DISTRIBUTIONS Available Net Surrender Value at Age 70: $353,936 Annual Cash Value Distribution for 20 years: $36,702 Total Cash Value Distribution: $734,033 Cash Surrender Value at Age 121: $6,818,246 DEATH BENEFIT Year 1 Net Death Benefit: $177,422 Available Net Death Benefit at Age 70: $526,936 Available Net Death Benefit at Age 121: $6,991,246 YOUR NUMBER $2,456,863 Your life insurance policy can both help you reach Your Number by accumulating cash value that may potentially be used as supplemental retirement income and protect Your Number by providing a death benefit that can be used as income for your family if you die prematurely. The values illustrated are based on the illustrated policy interest rate, index credit rate and current cost assumptions. The values illustrated are not guaranteed. They assume that the illustrated non-guaranteed elements of the policy 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. This page must be accompanied by the basic Policy Illustration, which includes the guaranteed elements of the policy and other important information. A portion of the policy's surrender value may be available as a source of supplemental retirement income through policy loans and withdrawals. Income tax free policy distributions may be achieved by policy loans or withdrawing to the cost basis (usually premiums paid). This assumes the policy qualifies as life insurance, is not a modified endowment contract and is not lapsed or surrendered with an outstanding loan. Policy loans will reduce the policy's death benefit and available net surrender value. This presentation is not valid without an accompanying personalized policy illustration. Version M HO, Released 04/01/2013 Page 3 of 34

4 Retirement Extra Using Life Insurance Summary Select Loans have the risk that policy performance may be lower than projected in the illustration if the amount credited to the account value in the Fixed Strategy and/or Indexed Strategy is less than the fixed 6% interest charged on the policy loan. Detailed additional information about policy loans is located in the accompanying personalized policy illustration. * Policyowner must request distributions from the company. Your Number $2,456,863 This presentation is not valid without an accompanying personalized policy illustration. Version M HO, Released 04/01/2013 Page 4 of 34

5 The Cost of Waiting Your Number $2,456,863 The benefits below are projections based on the hypothetical rate of return, current policy cost assumptions, sex, premium class, death benefit option, and state of issue for the ING Indexed Universal Life-Global Choice life insurance illustration that accompanies this page. Initial Annual Policy Premium Annual Cash Value Distributions at Age 70 Total Cash Value Distributions at Age 90 If You Start Today At Age 45 $6,000 $36,702 $734,033 If You Wait One Year At Age 46 $6,000 $33,298 $665,952 The values illustrated are based on the illustrated policy interest rate, index credit rate and current cost assumptions. The values illustrated are not guaranteed. They assume that the illustrated non-guaranteed elements of the policy 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. This page must be accompanied by the basic Policy Illustration, which includes the guaranteed elements of the policy and other important information. A portion of the policy's surrender value may be available as a source of supplemental retirement income through policy loans and withdrawals. Income tax free policy distributions may be achieved by policy loans or withdrawing to the cost basis (usually premiums paid). This assumes the policy qualifies as life insurance, is not a modified endowment contract and is not lapsed or surrendered with an outstanding loan. Policy loans will reduce the policy's death benefit and available net surrender value. Select Loans have the risk that policy performance may be lower than projected in the illustration if the amount credited to the account value in the Fixed Strategy and/or Indexed Strategy is less than the fixed 6% interest charged on the policy loan. Detailed additional information about policy loans is located in the accompanying personalized policy illustration. * Policyowner must request distributions from the company. This presentation is not valid without an accompanying personalized policy illustration. Version M HO, Released 04/01/2013 Page 5 of 34

6 EXPLANATION OF POLICY ILLUSTRATION A Narrative Summary Policy Introduction: The ING Indexed Universal Life-Global Choice product illustrated on the accompanying pages is a flexible premium adjustable life insurance policy which can provide a lifetime death benefit. The death benefit is adjustable and may depend on the account value in the policy. The account value is based on the timing and amount of your premiums, policy and rider charges, the index credit rate, index credit, if any, and the interest credited to the policy. This illustration assumes all premiums are received by the Company on the first day of each illustrated year. This product is offered by, a member of the ING family of companies, and is filed as Policy Form Series # /12 (which may vary by state). This product has two strategies: a Fixed Strategy and an Indexed Strategy. Premiums paid, minus any premium expense charges (the net premiums) are initially credited to the Fixed Strategy. Thereafter, amounts in the Fixed Strategy can be elected to the Indexed Strategy. The Indexed Strategy is made up of three strategies: S&P500 1 Year Point to Point, 2 Year Global and 5 Year Global. This illustration assumes 25% of the premium is elected to the S&P Year Point to Point Indexed Strategy, and 75% of the premium is elected to the 2 Year Global Indexed Strategy. This product is not a variable contract or any type of investment contract where cash value is based upon performance of client selected variable investment options. While your policy values may be affected by external indexes, your policy is not an investment in the stock market and does not directly participate in any index fund, stock or equity investment. This product is not meant to be an investment vehicle. ING Indexed Universal Life-Global Choice is not a variable product or any type of investment contract. This illustration is not the actual life insurance policy you will receive nor is it part of the contract. This illustration is intended only to show you how the life insurance policy might react based on the interest rate, index credit rate, index credit, if any, and premium payment assumptions contained in the illustration. Due to your individual circumstances, your policy, upon issue, may differ from what is illustrated. In that event, the terms of your policy control. Following is a description of some of the key terms and features of this life insurance product. Guaranteed Values: 0.00% Guaranteed Minimum Interest Rate Indexed Strategy The guaranteed values are the minimum values that will accrue, assuming you pay the premiums as illustrated. These values are calculated based on the guaranteed minimum interest rate of 0.00% on the Indexed Strategy, no index credit, the guaranteed maximum cost of insurance rates, and the guaranteed maximum expenses in the policy. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 6 of 34

7 Non-Guaranteed Values: Illustrated Hypothetical Annualized Index Credit Rate(s): 6.53% S&P Year Point to Point 8.25% 2 Year Global Fixed Strategy: The non-guaranteed values are based on the illustrated hypothetical index credit rate(s), current index cap(s) and participation rate(s), current cost of insurance rates, and current expense charges. The actual amount credited to the policy will vary based on the strategy described below. The cost of insurance rates, policy expense charges, index cap, index credit, participation rate, and the interest crediting rate are subject to change. This illustration assumes that the illustrated non-guaranteed elements will continue unchanged for all years shown. This is not likely to occur, and actual results will be more or less favorable than those shown. reserves the right to change the non-guaranteed benefits and values of this illustration. The Fixed Strategy credits interest on a portfolio interest rate basis. This means that your entire account value in the Fixed Strategy is credited at the same interest rate. The Fixed Strategy offers a guarantee of both principal and interest at a minimum annual rate of return of 2.00%. The current credited interest rate declared by Security Life of Denver Insurance Company for the Fixed Strategy is 4.35% and is in effect for the first 12 months. After the first 12 months, this rate is subject to change, but changes may not occur to your contract more frequently than annually. Policy charges are deducted first from the Fixed Strategy until depleted and then on a pro rata basis from each of the Indexed Strategy blocks. You may elect amounts from the Fixed Strategy to the Indexed Strategy on the election date. Your illustration is based on your initial election of premiums between the Fixed Strategy and the Indexed Strategy. Details on election restrictions are contained in your policy. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 7 of 34

8 Indexed Strategy: The Indexed Strategy is a strategy available under the policy through which the policyowner may elect to have all or part of the Account Value receive Index Credits based in part on changes in the values of the Indexes. The available indexed strategies are the S&P Year Point to Point Indexed Strategy, 2 Year Global Indexed Strategy, and 5 Year Global Indexed Strategy. The value of the Indexed Strategy equals the sum of the values of the indexed strategies. On each block maturity date, an index credit, if any, is added to the value of the block(s). The index credit is subject to an index cap and is based on the index change rate or weighted index change rate for each index, the participation rate, and guaranteed minimum interest rate of each indexed strategy. The S&P Year Point to Point Indexed Strategy is based on the performance of the S&P 500 Index, which is an index of stock performance of 500 publicly traded companies. It does not reflect dividends payable on the underlying stocks. The 2 Year Global and 5 Year Globaly Indexed Strategies are comprised of an index crediting formula that takes into consideration three different indexes: EURO STOXX 50 Index, Hang Seng Index, and S&P 500 Index. EURO STOXX 50 Index is an index of blue-chip stocks that are represented by 50 stocks covering the largest sector leaders in the EURO STOXX 50 Index. It does not reflect dividends payable on the underlying stocks. Hang Seng Index is an index of the largest and most liquid stocks listed on the Stock Exchange of Hong Kong. It does not reflect dividends payable on the underlying stocks. S&P 500 is an index of stock performance of 500 publicly traded companies. It does not reflect dividends payable on the underlying stocks. See IMPORTANT INDEX DISCLAIMERS for more information about each index. Index Change Rate: The index change rate for each index is equal to (b) minus (a), divided by (a), where: (a) is the value of the Index at the close of business on the block start date, and (b) is the value of the Index at the close of business on the block maturity date. For the S&P Year Point to Point Indexed Strategy only, the Index Change Rate will never be less than zero and will never be more than the Index Cap. Weighted Index Change Rate: The weighted index change rate is only applicable to the 2 Year Global Indexed Strategy and 5 Year Global Indexed Strategy. The weighted index change rate equals the lesser of the index cap and (a) plus (b) plus (c), where: (a) is the highest index change rate multiplied by 75%; and (b) is the next highest index change rate multiplied by 25%; and (c) is the lowest index change rate multiplied by 0%. The weighted index change rate is guaranteed not to be less than zero and will never be more than the applicable Index Cap. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 8 of 34

9 Index Cap: The index cap is a limit on the index change rate for the S&P Year Point to Point Indexed Strategy and a limit on the weighted index change rate for the 2 and 5 Year Global Indexed Strategies. The index cap for each block is set on the block start date and will not change for that block. The index cap can be changed by us at any time for new blocks, subject to any guaranteed minimum index cap. Indexed Strategy Guaranteed Current S&P Year 3.5% 12% 2 Year Global 10% Unlimited 5 Year Global 100% Unlimited Participation Rate: The participation rate is the percentage of the index change rate on the S&P Year Point to Point Indexed Strategy and the weighted index change rate that will be recognized in the calculation of the index credit for the 2 and 5 Year Global Indexed Strategies. For each block, the participation rate will be the participation rate on the block start date and it will not change for that block. Indexed Strategy Guaranteed Current S&P Year 100% 100% 2 Year Global 20% 55% 5 Year Global 15% 75% Index Credit Rate: Index Credit The index credit rate equals: The index credit rate for the S&P Year Point to Point Indexed Strategy and the weighted index change rate for the 2 and 5 Year Global Indexed Strategies; multiplied by The applicable participation rate. An index credit is calculated and added to a block at the close of business on the block maturity date only. The index credit on the block maturity date is equal to (a) divided by (b) multiplied by (c), where: (a) is the index credit rate calculated on the block maturity date; (b) is the index credit calculation rate times the index crediting period; and (c) is the total index credit calculation interest calculated on the block from the block start date to the block maturity date, prior to the addition of the index credit. Index Credit Calculation Interest is calculated on the daily value of each Block for purposes of calculating the Index Credit only. The Index Credit Calculation Interest is not added to the Block. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 9 of 34

10 Hypothetical Annualized Index Credit Rate: The non-guaranteed policy values shown in this life insurance illustration are based on hypothetical index credit rates that are selected for each index that may not exceed the maximum hypothetical index credit rate for each respective indexed strategy. The current maximum hypothetical annualized credit rate for the S&P Year Point to Point Indexed Strategy is 7.39% The current maximum hypothetical index credit rate for the 2 Year Global Indexed Strategy is 18.81%, which corresponds to an annualized rate of 9.00%. The current maximum hypothetical index credit rate for the 5 Year Global Indexed Strategy is 61.05%, which corresponds to an annualized rate of 10.00%. Index credits, if any, are applied to an index block at block maturity. This illustration assumes that non-guaranteed illustrated elements, including the hypothetical index credit rate, current index caps and current participation rates will continue for all years shown. This is not likely to occur, and actual results will be more or less favorable than those shown. In addition, hypothetical rates cannot be relied upon as an indication of future performance and there is no guarantee that future index performance will generate index credits. The actual index credit rate for any particular index block under the policy may vary from the hypothetical index credit rates allowed to be shown in this illustration. Actual future credits depend on future index performance, performance caps, and participation rates applicable to future index blocks. To be sure this is the right type of life insurance product for you, you should consider alternative scenarios using multiple hypothetical index credit rates below the maximums including variation in short term and long term performance to see the effect that changing hypothetical index credit rate assumptions will have on the policy s Account Value, Net Surrender Value, Net Death Benefit and the premiums required to continue your insurance coverage. Premium Outlay: First-Year Scheduled Premium: $6, Guideline Level Premium: $6, The premium outlay is the net annualized outlay to the policyowner. It is equal to scheduled premium payments and loan repayments less any partial withdrawals and policy loans. In general, a negative value in this column indicates that more money was distributed from the policy, either as a loan or partial withdrawal, than was paid as premium in that year. The scheduled premiums are shown in the yearly detail of this illustration. Note that coverage may end at different times under guaranteed and non-guaranteed illustrated assumptions. The guideline level premium is the maximum premium that can be paid into the policy, based on current tax law, if level premiums are paid each year. This guideline level premium will change if any coverage increases, decreases, or changes are made to the policy. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 10 of 34

11 Minimum Monthly Premium: $ Rider Benefits Included: Accelerated Benefit Rider: Overloan Lapse Protection Rider: Net Death Benefit: Initial Stated Death Benefit: $173,000 The minimum monthly premium is the minimum premium required to issue the policy. The minimum monthly premium must be paid during each of the first 9 policy years to qualify for the special continuation period. The special continuation period guarantees that your policy will not lapse if the following two conditions are met: the policy account value less any policy loan must be positive and the sum of the premiums paid since the policy date, less all partial withdrawals, and less any policy loans, must be equal to or greater than the sum of the Minimum Monthly Premiums. This minimum monthly premium does not include, if applicable, scheduled increases and will change if increases or decreases are made in any of the policy benefits. Following this period, premium payments higher than this minimum premium may be required to keep the policy in force. Paying only the minimum premium does not guarantee continuation of the policy. In addition, you may be foregoing the advantage of potentially building the policy's account value. Listed below are rider benefits illustrated on this policy illustration. Charges for these benefits, unless otherwise stated, reduce the account value. The Accelerated Benefit Rider allows a portion of the death benefit to be paid to the policyowner prior to the death of the insured in the event the insured becomes terminally ill or in the event of other catastrophic Qualifying Conditions. There is no cost associated with this rider unless the option to accelerate the death benefit is exercised. For additional details please see the accompanying Accelerated Benefit Rider Disclosure Form. The Overloan Lapse Protection Rider is designed to keep your policy in force when loan balances approach 100% of the account value. There is no cost for this rider unless the option is exercised. This illustration assumes that the Overloan Lapse Protection Rider was not exercised. The proceeds are the amount paid to the beneficiary upon the death of the insured. The initial stated death benefit amount plus any policy account value is the death benefit at issue. The death benefit amounts illustrated are shown as of the end of the year and reflect the stated death benefit provided by the policy less any outstanding policy loans and accrued loan interest, minus policy charges incurred, but not yet deducted. Under Option 1 (Level), the death benefit is equal to the stated death benefit. Under Option 2 (Increasing), the death benefit is equal to the stated death benefit plus the account value. Under both options, a greater death benefit will apply if the minimum death benefit to qualify as life insurance based on the Death Benefit Qualification Test exceeds the amounts described above. The initial Death Benefit Option assumed in this illustration is 2 (Increasing). After attained age 121, only Option 1 will be available. All policies will be converted to Option 1 policies and the stated death benefit will be equal to the death benefit immediately prior to the policy anniversary nearest to attained age 121. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 11 of 34

12 Account Value: The account value is the sum of the Fixed Strategy, the Indexed Strategy, and the policy loan account. Deductions from the account value are made every month throughout the life of the policy until attained age 121, regardless of whether premiums are paid or not paid. Deductions are subtracted from the Fixed Strategy until depleted and then on a pro rata basis from each of the Indexed Strategy blocks. The account value will vary based on the timing and amount of your premiums, policy and rider charges, index credit, if any, and the interest credited to the policy. See your policy for details. This policy also has an Alternate Guaranteed Account Value. The Alternate Guaranteed Account Value is the value that, if greater than the account value, is used instead of the account value only at the time of death or surrender in the calculation of the base death benefit or surrender value. The Alternate Guaranteed Account Value is calculated in the same manner as the account value except that it uses a cumulative Alternate Guaranteed Account Value Interest Rate of 1.00% per year. See your policy for details. The Alternate Guaranteed Account Value is not reflected in this illustration's Account Value or Surrender Value. However, it is reflected in the net death benefit amount when applicable. Net Surrender Value: Policy Loans: This illustration includes a proposed loan using the Select Loans. The net surrender value is equal to the account value of the policy reduced by the amount of any surrender charges and any outstanding policy loan amounts including accrued but unpaid policy loan interest, less any unpaid monthly deductions. This is the amount payable on surrender. Because the index credit is applied on the block maturity date, upon surrender, blocks that have not matured will not receive an index credit. A portion of the net surrender value may also be available for partial withdrawals or policy loans. Two types of policy loans are available; Traditional Loans and Select Loans. These are available anytime on or after the first policy month. Policy loans will reduce the policy s available net surrender value. The annual interest expense is charged in arrears. If loan interest is not paid in cash, it is added to the outstanding loan amount. The unpaid loan interest will then increase the amount borrowed and, in turn, result in increased loan interest charges. If the insured dies while there is an outstanding loan, the loan amount will be deducted from the death proceeds. The policy may only have one loan type at a time. The loan type is selected the first time a policy loan is requested and each time Select Loans are requested. Once the owner chooses Traditional Loans, the owner may never change to Select Loans. The owner may switch from Select Loans to Traditional Loans only one time during the life of the policy, but may never change back to Select Loans. See Select Loans below for additional detail on changing the loan type. Policy loans (and withdrawals) may reduce or eliminate index credits, generate an income tax liability, reduce available surrender value and reduce the death benefit, or cause the policy to lapse. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 12 of 34

13 Select Loans: Select Loans are policy loans in which an amount equal to each new loan or loan interest due is added to the loan amount while the account value remains in the Fixed Strategy and/or Indexed Strategy as elected by the policyowner. With Select Loans the loan amount is not added to the Policy Loan Account. The interest rate charged on the outstanding loan amount is fixed at 6% per year in arrears, regardless of the indexed credits earned and/or the credited interest rates. The loan interest charge accrues daily. Interest is credited to the Fixed Strategy on a daily basis. Index Credits, if any, are applied when blocks mature creating a timing mismatch between accrual of loan interest and potential index credits. Please note that this mismatch is greater when premiums are allocated to index blocks with longer Index Crediting Periods. Select Loans have the risk that policy performance may be lower than projected in the following illustration if the amount credited to the account value in the Fixed Stategy and/or Indexed Strategy is less than the fixed 6% interest charged on the policy loan. Policy performance may be higher or lower than projected. If the policy performance is lower than projected the policy could lapse without additional premium or loan interest payments. For Select Loans the maximum difference between the amount credited to the account value and the interest charged on the policy loan each year is 6%. For Traditional Loans the guaranteed maximum difference is 1%. With Select Loans, the result of having a policy loan varies depending on the index credits earned and/or the credited interest rates, and if you pay loan interest in cash or allow it to accrue. For example, if the account value grows over time at an annualized average of 9%, the cost of Select Loans is a net gain of 3% (6% charged rate less 9% annualized earned rate). On the other hand, if the account value grows over time at the guaranteed annual rate of 0%, the net cost of Select Loans is 6% (6% charged rate less 0% earned rate). This is a hypothetical example and not intended to represent the actual financial impact of Select Loans. The straight line in the following graph shows the 6% level loan interest rate which will be charged to the policy loan amount for Select Loans. The uneven line represents what the index credit rate would have been for the S&P Year Point to Point Indexed Strategy, including the current index cap. The dark shaded areas below the 6% line show when loan interest charged for Select Loans would have been more than would have been credited to the index strategy on a current basis. See the Historical Returns and Percentiles page of this illustration for more detail about the assumptions underlying the graph. These rates are based on historical information and should not be used as an indication of future performance. The actual amount credited to the policy will vary. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 13 of 34

14 The owner may switch from Select Loans to Traditional Loans only one time during the policy but may never change back to Select Loans. If switching from Select Loans to Traditional Loans results in amounts being deducted from a Block prior to its Block Maturity Date, elections from the Fixed Strategy to the Indexed Strategy will not be allowed in the 18 months following the switch. All premium payments will be applied to the Fixed Strategy in the 18 months following the switch. If the policy is in force when the insured reaches attained age 121 Select Loans will be converted to Traditional Loans regardless of the loan selection. Traditional Loans: Traditional Loans may be taken from the policy by securing the loan amount with the cash value in the life insurance policy in the policy loan account. Once the owner chooses Traditional Loans, the owner may never change to Select Loans. The loan interest expense on the loan is charged in arrears at the rate of 2.75% years 1-10 (3.00% guaranteed), and 2.00% thereafter (2.15% guaranteed). The policy loan account values are credited with interest at a current and guaranteed rate of 2.00% in all years. If a Traditional Loan results in amounts being deducted from a Block prior to its Block Maturity Date, elections from the Fixed Strategy to the Indexed Strategy will not be allowed in the 18 months following the loan. All premium payments will be applied to the Fixed Strategy in the 18 months following the loan. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 14 of 34

15 HISTORICAL RETURNS AND PERCENTILES Strategy Results - Block Maturity Historical Returns The following graphs were developed using historical index data and current non-guaranteed index parameters that are reflected below for three indexed strategies and the hindsight index crediting methodology used in the ING IUL-Global Choice policy. The uneven line reflects what the annualized index credit rate could have been for each index strategy based on the block maturity date shown and the indexed strategy assumptions listed below. S&P Year Point to Point Simple Strategy - Blocks Mature Annually Guaranteed Minimum Interest Rate: 0% Current Index Cap: 12% Current Participation Rate: 100% 2 Year Global Diversification Blocks Mature Every Two Years Guaranteed Minimum Interest Rate: 0% Current Index Cap: Unlimited Current Participation Rate: 55% 5 Year Global Diversification Blocks Mature Every Five Years Guaranteed Minimum Interest Rate: 0% Current Index Cap: Unlimited Current Participation Rate: 75% GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 15 of 34

16 Long term strategy results 20 Year Historical Returns The following graphs show the hypothetical annualized returns over 20 years periods ending in the month and year shown assuming sequential hypothetical index blocks for each indexed strategy. Percentiles are used to give some idea of the variability of historical index returns when measured in 20 year segments within a 31 ½ year overall timeframe. For example, the line drawn at the 80th percentile on each graph shows the point at which approximately 80% of the 20 year segment results calculated over this 31 ½ year period equaled or exceeded that annualized rate over the period shown. Note that due to the significant overlap in measurement periods used in developing 20 year returns, historical percentile returns should not be used to provide any confidence concerning the stability or level of future index crediting rates. Nor does the percentile information reflect the higher volatility returns likely to be experienced on individual blocks. Historical Percentile 100th 90th 80th 70th 60th 50th Average Rate 6.36% 7.02% 7.23% 7.40% 7.56% 7.70% 7.69% Historical Percentile 100th 90th 80th 70th 60th 50th Average Rate 7.47% 9.22% 9.69% 10.09% 10.46% 10.95% 10.99% Historical Percentile 100th 90th 80th 70th 60th 50th Average Rate 6.98% 9.17% 10.08% 10.79% 11.29% 11.65% 11.59% GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 16 of 34

17 These rates are based on historical information and should not be used as an indication of future performance. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 17 of 34

18 IMPORTANT INDEX DISCLAIMERS EURO STOXX 50 Index An index of blue-chip stocks that are represented by 50 stocks covering the largest sector leaders in the EURO STOXX 50 index. It does not reflect dividends payable on the underlying stocks. STOXX Limited, Zurich, Switzerland and its licensors (the Licensors ) have no relationship to ( Security Life ), other than the licensing of the EURO STOXX 50 index and the related trademarks for use in connection with the ING Indexed Universal Life-Global Choice ( ING IUL-Global Choice ) insurance policy. STOXX and its Licensors do not: (1) Sponsor, endorse, sell or promote the ING IUL-Global Choice policy; (2) Recommend that any person invest in the ING IUL-Global Choice policy or any securities; (3) Have any responsibility or liability for or make any decisions about the timing, amount or pricing of the ING IUL-Global Choice policy; (4) Have any responsibility or liability for the administration, management or marketing of the ING IUL-Global Choice policy; or (5) Consider the needs of the ING IUL-Global Choice policy or the owners of the ING IUL-Global Choice policy in determining, composing or calculating the EURO STOXX 50 index or have any obligation to do so. STOXX and its Licensors will not have any liability in connection with the EURO STOXX 50 index. Specifically, STOXX and its Licensors do not make any warranty, express or implied and disclaim any and all warranty about: (1) The results to be obtained by the ING IUL-Global Choice policy, the owner of the ING IUL-Global Choice policy or any other person in connection with the use of the EURO STOXX 50 index and the data included in the EURO STOXX 50 index; (2) The accuracy or completeness of the EURO STOXX 50 index and its data; or (3) The merchantability and the fitness for a particular purpose or use of the EURO STOXX 50 index and its data. STOXX and its Licensors will have no liability for any errors, omissions or interruptions in the EURO STOXX 50 index or its data. Under no circumstances will STOXX or its Licensors be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if STOXX or its Licensors knows that they might occur. The licensing agreement between the Security Life and STOXX is solely for their benefit and not for the benefit of the owners of the ING IUL-Global Choice policy or any other third parties. The Hang Seng Index (the Index ) is published and compiled by Hang Seng Indexes Company Limited pursuant to a license from Hang Seng Data Services Limited. The mark and name "Hang Seng Index are proprietary to Hang Seng Data Services Limited. Hang Seng Indexes Company Limited and Hang Seng Data Services Limited have agreed to the use of, and reference to, the Index by Security Life of Denver Insurance Company ( Security Life ) in connection with this indexed universal life insurance policy (the Policy ), BUT NEITHER HANG SENG INDEXES COMPANY LIMITED NOR HANG SENG DATA SERVICES LIMITED WARRANTS OR REPRESENTS OR GUARANTEES TO ANY BROKER OR HOLDER OF THE POLICY OR ANY OTHER PERSON (i) THE ACCURACY OR COMPLETENESS OF THE INDEX AND ITS COMPUTATION OR ANY INFORMATION RELATED THERETO; OR (ii) THE FITNESS OR SUITABILITY FOR ANY PURPOSE OF THE INDEX OR ANY COMPONENT OR DATA COMPRISED IN IT; OR (iii) THE RESULTS WHICH MAY BE OBTAINED BY ANY PERSON FROM THE USE OF THE INDEX OR ANY COMPONENT OR DATA COMPRISED IN IT FOR ANY PURPOSE, AND NO WARRANTY OR REPRESENTATION OR GUARANTEE OF ANY KIND WHATSOEVER RELATING TO THE INDEX IS GIVEN OR MAY BE IMPLIED. The process and basis of computation and compilation of the Index and any of the related formula or formulae, constituent stocks and factors may at any time be changed or altered by Hang Seng Indexes Company Limited without notice. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NO RESPONSIBILITY OR LIABILITY IS ACCEPTED BY HANG SENG INDEXES COMPANY LIMITED OR HANG SENG DATA SERVICES LIMITED (i) IN RESPECT OF THE USE OF AND/OR REFERENCE TO THE INDEX BY SECURITY LIFE IN CONNECTION WITH THE POLICY; OR (ii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES OR ERRORS OF HANG SENG INDEXES COMPANY LIMITED IN THE COMPUTATION OF THE INDEX; OR (iii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES, ERRORS OR INCOMPLETENESS OF ANY INFORMATION USED IN CONNECTION WITH THE COMPUTATION OF THE INDEX WHICH IS SUPPLIED BY ANY OTHER PERSON; OR (iv) FOR ANY ECONOMIC OR OTHER LOSS WHICH MAY BE DIRECTLY OR INDIRECTLY SUSTAINED BY ANY BROKER OR HOLDER OF THE POLICY OR ANY OTHER PERSON DEALING WITH THE POLICY AS A RESULT OF ANY OF THE AFORESAID, AND NO CLAIMS, ACTIONS OR LEGAL PROCEEDINGS MAY BE BROUGHT AGAINST HANG SENG INDEXES COMPANY LIMITED AND/OR HANG SENG DATA SERVICES LIMITED IN CONNECTION WITH THE POLICY IN ANY MANNERWHATSOEVER BY ANY BROKER, HOLDER OR OTHER PERSON DEALING WITH THE POLICY. Any broker, holder or other person dealing with the Policy does so therefore in full knowledge of this disclaimer and can place no reliance whatsoever on Hang Seng Indexes Company Limited and Hang Seng Data Services Limited. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder or other person and Hang Seng Indexes Company Limited and/or Hang Seng Data Services Limited and must not be construed to have created such relationship. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 18 of 34

19 The S&P 500 Index is an Index of the stock performance of 500 publicly traded companies that does not reflect the dividends payable on the underlying stocks. Standard & Poor s, S&P, S&P 500, are registered trademarks of Standard & Poor's Financial Services LLC and have been licensed for use by. The Policy is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the Policy. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 19 of 34

20 NUMERIC SUMMARY Prepared for: Valued Client Female 45 Super Preferred No Tobacco State of Issue: Minnesota Assumed Policy Date: 04/12/2013 Initial Stated Death Benefit: $173,000 Initial Death Benefit Option: 2 (Increasing) Premium Mode: Annual Initial Annual Premium: $6, Premium Election: Allocation Hypothetical Index Strategy Type Percentage Credit/Interest Rate S&P Year Point to Point Indexed Strategy 25% 6.53% 2 Year Global Indexed Strategy 75% 8.25% Policy Loan Type: Select Loans Rider Benefits Included: Accelerated Benefit Rider Overloan Lapse Protection Rider This summary is based on the premium outlay in the life insurance policy illustration. The Net Surrender Value and Net Death Benefit are shown as of the end of the year. This illustration assumes that the illustrated non-guaranteed elements will continue unchanged for all years shown. This is not likely to occur, and actual results will be more or less favorable than those shown. GUARANTEED 0% Index Strategy Interest Rate, No Index Credit, Maximum Charges NON-GUARANTEED MIDPOINT Interest and charges halfway between guaranteed and non-guaranteed NON-GUARANTEED ILLUSTRATED Hypothetical Rate Rate Information Listed Above, Current Charges Year 5, Age 50 Net Surrender Value: 16,812 20,955 25,695 Net Death Benefit: 191, , ,203 Year 10, Age 55 Net Surrender Value: 35,323 50,200 69,598 Net Death Benefit: 210, , ,598 Year 20, Age 65 Net Surrender Value: 62, , ,845 Net Death Benefit: 243, , ,845 Year 25, Age 70 Net Surrender Value: 74, , ,936 Net Death Benefit: 258, , ,936 Projected Age when Net Death Benefit Ends: Does not end You may adjust your payment amounts, within limits, to extend or increase the cash value and death benefit. By signing this form, you agree that you have read, understand, and agree to the following statements: (1) I have received a copy of this illustration and understand that any non-guaranteed elements illustrated are subject to change and could be either higher or lower. The agent has informed me they are not guaranteed. Policy performance may be lower than projected if the amount credited to the account value in the Fixed Strategy and/or Indexed Strategy is less than projected. The policy could lapse without additional premium or loan interest payments. (2) I have reviewed the Alternate Hypothetical Index Credit Rate Assumptions page which shows the effect of changing the hypothetical annualized index credit rate assumptions for the Indexed Strategy. GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 20 of 34

21 (3) Regarding policy loan selection on the ING Indexed Universal Life-Global Choice policy: a. The ING Indexed Universal Life-Global Choice policy offers two types of loans (as described above in the Explanation of Policy Illustration, Policy Loan section) and I am solely responsible for the selection of the loan type. b. To compare the hypothetical, non-guaranteed effect on the policy of the two types of policy loans, I am advised to request alternate illustrations, including but not limited to an illustration of any Select Loans where the annualized index credits earned and/or the credited interest rates are less than the 6.00% interest rate charged on Select Loans. c. The interest rate charged on the loan amount for Select Loans is fixed at 6.00% per year, regardless of the index credits earned and/or the credited interest rates. Select Loans have the risk that the amount credited to the account value will be less than the annual interest charged on the policy loan. As a result, the policy performance may be lower than projected. Without additional premium or loan interest payments, the policy could lapse. d. I understand that if I choose Traditional Loans at any time, Select Loans will no longer be available on the policy. e. Any policy loans (and withdrawals) may reduce or eliminate index credits, generate an income tax liability, reduce available surrender value and reduce the death benefit, or cause the policy to lapse. Additionally, loans may limit my ability to make elections into the Indexed Strategy. If a loan results in amounts being deducted from a block prior to its block maturity date, no elections from the Fixed Strategy to the Indexed Strategy will be processed in the 18 months following the loan. f. I release and agree to hold the Company harmless from and against any claims, losses, liabilities, damages, and expenses directly or indirectly related to the suitability or any tax and legal consequences of my policy loan selection. Signature of Applicant (or Policyowner, if other than insured) Date I certify that this illustration has been presented to the applicant and that I have explained that any non-guaranteed values and benefits illustrated are subject to change. I have made no statements that are inconsistent with the illustration. Unassigned Agent 8055 East Tufts Avenue, Suite 650 Denver, CO Date GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 21 of 34

22 POLICY ILLUSTRATION Tabular Detail Prepared for: Valued Client Female 45 Super Preferred No Tobacco State of Issue: Minnesota Assumed Policy Date: 04/12/2013 Initial Stated Death Benefit: $173,000 Initial Death Benefit Option: 2 (Increasing) Premium Mode: Annual Initial Annual Premium: $6, Premium Election: Allocation Alternate Index Hypothetical Index Strategy Type Percentage Credit/Interest Rate Credit/Interest Rate S&P Year Point to Point Indexed Strategy25% 4.53% 6.53% 2 Year Global Indexed Strategy 75% 6.00% 8.25% Policy Loan Type: Select Loans Rider Benefits Included: Accelerated Benefit Rider Overloan Lapse Protection Rider Premiums are paid at the beginning of the year. The Account Value, Net Surrender Value and Net Death Benefit are shown as of the end of each policy year. GUARANTEED ALTERNATE RATE ILLUSTRATED NON-GUARANTEED ILLUSTRATED 0% Index Strategy Interest Rate, Hypothetical Rate Hypothetical Rate No Index Credit, Maximum Charges Information Listed Above, Information Listed Above**, Current Charges Current Charges End Net Net Net Net Net Net of Yr Premium Account Surrender Death Account Surrender Death Account Surrender Death Yr Age Outlay Value Value Benefit Value Value Benefit Value Value Benefit , ,737 2, ,781 4,398 2, ,398 4,422 2, , , ,444 5, ,569 9,463 7, ,463 9,698 8, , , ,112 9, ,356 14,567 12, ,567 15,062 13, , , ,741 13, ,141 20,076 18, ,076 21,042 19, , , ,321 16, ,916 25,692 24, ,692 27,203 25, ,203 30, GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 22 of 34

23 GUARANTEED ALTERNATE RATE ILLUSTRATED NON-GUARANTEED ILLUSTRATED 0% Index Strategy Interest Rate, Hypothetical Rate Hypothetical Rate No Index Credit, Maximum Charges Information Listed Above, Information Listed Above**, Current Charges Current Charges End Net Net Net Net Net Net of Yr Premium Account Surrender Death Account Surrender Death Account Surrender Death Yr Age Outlay Value Value Benefit Value Value Benefit Value Value Benefit , ,849 20, ,676 31,759 30, ,759 34,071 32, , , ,321 23, ,416 38,657 37, ,657 41,872 40, , , ,727 27, ,128 46,080 45, ,080 50,526 49, , , ,062 31, ,806 53,732 53, ,732 59,549 59, , , ,323 35, ,446 62,002 62, ,002 69,598 69, ,598 60, , ,503 38, ,041 70,539 70, ,539 80,088 80, , , ,591 41, ,580 79,763 79, ,763 91,769 91, , , ,583 44, ,057 89,286 89, , , , , , ,469 47, ,463 99,578 99, , , , , , ,254 50, , , , , , , ,722 90, , ,931 52, , , , , , , , , ,493 55, , , , , , , , , ,933 57, , , , , , , , , ,243 60, , , , , , , , , ,411 62, , , , , , , , , , ,104 65, , , , , , , , , ,629 67, , , , , , , , , ,970 69, , , , , , , , , ,107 72, , , , , , , , , ,021 74, , , , , , , , , GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 23 of 34

24 GUARANTEED ALTERNATE RATE ILLUSTRATED NON-GUARANTEED ILLUSTRATED 0% Index Strategy Interest Rate, Hypothetical Rate Hypothetical Rate No Index Credit, Maximum Charges Information Listed Above, Information Listed Above**, Current Charges Current Charges End Net Net Net Net Net Net of Yr Premium Account Surrender Death Account Surrender Death Account Surrender Death Yr Age Outlay Value Value Benefit Value Value Benefit Value Value Benefit , ,585 32, , , , , , , ,397 * , , , , , , , , , , , , , , , , , , , , , , , , , , , ,831-33, , ,447 81, , , , , , ,296 45, , , , ,553 * , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,046, , , , , ,122, , , , ,208, , , , ,295, , , , ,394, , , , ,495, , , , GL: 6,028 GS: 37,113 7P: 7,362 TP: 2,595 MP: 1,617 Page 24 of 34