Marketing Guide Benefit Universal Life UL6

Marketing Guide Benefit Universal Life UL6 F8108, Rev. 3-11

Table of Contents Benefit UL6 - Universal Life Insurance Policy... 3 Target Markets... 4 Bi-Weekly Benefit Plan... 4 Pension Maximization... 4 Farm Market... 5 The Business Market... 5 Product Highlights... 6 Ideal Solution... 6 Issue Ages... 6 Policy Minimum Face Amount... 6 Premium Classes... 6 Policy Fee... 6 Premiums... 6 Policy Loans and Withdrawals... 7 Surrender Charges... 7 Guaranteed Coverage Monthly Premium Test... 8 Product Riders... 10 Accidental Death Benefit Rider... 10 Additional Term Insurance Rider... 10 Children s Term Insurance Rider... 10 Cost of Living Rider... 10 Guaranteed Insurability Option Rider... 11 Living Benefit Rider (Accelerated Death Benefit Rider)... 11 Other Insured Level Term Insurance Benefit... 11 Waiver of Monthly Deduction/Cost of Insurance Benefit... 12 Waiver of Premium Benefit... 12 Page 2 of 12

Introducing National Mutual Benefit s Benefit UL6 - Universal Life Insurance Policy Benefit UL6 offers outstanding benefits for policyholders; chief among them is its flexibility. Policyholders can vary the premiums deposited into the program to meet their individual goals. Over-funding the plan, subject to guidelines, can permit cash accumulation for retirement. Funding at a minimum level can offer advantages no term program can match. In fact, should there ever be a need to skip a premium, the Benefit UL6 can accommodate that too. It s important to remember, that potential future values depend on the client funding their policy optimally. They should always be encouraged to make scheduled premium payments at the target premium level or above. The whole idea behind the target premium is the concept of selling with the best interest of the client in mind. Members expect that their policy will be there when they need it in the future. By getting in the habit of paying premiums at the target level or above, there should never be a future problem with an under funded policy. The Benefit UL6 offers the traditional tax advantages of life insurance with tax-deferred accumulation of cash values. It can also provide versatility and flexibility by utilizing loan or withdrawal privileges. As family and/or business needs grow, the policy can grow along with those changing needs. Since Universal Life s introduction in the 80's, it has proven its durability and adaptability to the changing life insurance market. The product has maintained an increasing growth rate since its inception. The strong feature of cash accumulation holds it in good stead to meet the current and future needs of policyholders. Page 3 of 12

Target Markets The Bi-Weekly Benefit Plan This program can be a valuable niche market for you to work in. Many Americans have monthly mortgage payments and many of these same Americans may have a need for adequate life insurance. The Bi-Weekly Benefit Plan is a program that can help with both of these needs. Most of the time this program is sold to families with a mortgage. But it also works well for couples without children, two people (friends or family) that own a home together or even two business partners. In addition, this program works well for a single person. Basically, any person that has a long term debt obligation would benefit from this program. Because the bi-weekly payment structure is combined with a universal life policy, members should take advantage of this program. The potential cash value and death benefit of a universal life policy will be available for a variety of needs before and/or after they die. When meeting with a potential Bi-Weekly Benefit Plan member, be sure to highlight the program s benefits. Minimizes the number of bills paid by combining mortgage payment and life insurance payment. Payments coincide with a bi-weekly pay schedule for convenient budgeting. Works with any mortgage loan. No refinancing, re-qualifying, credit checks or closing costs are necessary. Provides the opportunity to accumulate cash value in a life insurance policy. Cash value can be used for many purposes, including paying the mortgage faster. Protects the financial security of their loved ones with a life insurance policy. (The beneficiary will receive an income tax-free benefit in the event of death.) Pension Maximization This is another excellent market for NMB s Benefit UL policy. When someone retires, he or she has two retirement income options: life-only or life with survivor options. The lifeonly option produces a much greater income to the retiree than the life with survivor option, but no payments continue to the spouse upon the retiree s death. Pension Maximization is achieved by selecting the life-only option and using some earned income to purchase a Benefit UL policy with a death benefit large enough to provide the same retirement income to the spouse that the life with survivor s option would have paid. By taking this approach, the couple gets the best of both worlds - higher retirement income while both are living and, the same income at the retiree s death had the survivor option been elected at retirement. Page 4 of 12

Farm Market The cost of getting into a farming operation today is astronomical. It is cost prohibitive for a child to generate the necessary cash to buy into a family farm. If other children are in the family, it may be impractical to transfer the farm by gifting. NMB s Benefit UL6, as part of an overall estate plan, can be that funding vehicle providing the dollars necessary to effect that transfer. In addition, the Benefit UL6 is ideal for farmers who may find that from year to year, cash flow may be irregular. During boom years, the farm policyholder can deposit excess funds while during a drought year, premiums may be reduced. No other life product brings the flexibility in premiums like the Benefit UL6. The Business Market A multitude of applications are available to the Benefit UL6 in the small business market. It fits economically into the plans of business owners who are looking for a way to provide for business continuation at a cost that s level and predictable. The account value also helps to secure the business operation. In addition, the Benefit UL6 is well suited to provide coverage for important individuals in the business, protecting the loss of the important employees by the business (with a Key Person Program) or for protecting an important employee s family (in a Preferred Employee Bonus Program). Page 5 of 12

Product Highlights Ideal Solution NMB s Benefit Universal Life (UL6) is the ideal product for clients who want insurance that can be custom-tailored to their needs and budget. UL s flexibility allows it to be adapted to a wide variety of financial goals and payment plans. Insureds can pay a higher or lower premium amount (subject to contract requirements) and can adjust death benefits through increases or reductions. Issue Ages: 0-85 Policy Minimum Face Amount: $25,000 Premium Band 1 - Policy amounts under $100,000 Premium Band 2 - Policy amounts $100,000 and higher For amounts above $500,000, submit applications on a COD basis. UL policies are issued either Option A (level death benefit) or Option B (increasing death benefit). Premium Classes Juvenile (0-19) Tobacco use (20-85) Non-Tobacco use (20-85) Policy Fee: $48 Premiums Three kinds of premiums are important with Universal Life policies. 1. Target premium is the premium that an agent will receive full first year commissions on. Any premiums above target will be considered excess premium and therefore receive a lower commission percentage. 2. The minimum premium is the lowest premium that needs to be paid into the policy for each of the first five contract years. At least five times the minimum premium is required to have been paid into the policy by the fifth policy anniversary. 3. The planned premium is simply the premium amount the insured pays into the contract. It is important that the insured be aware of the effect to the policy should they alter premiums. They should monitor their policy s performance, with your help, through a review of annual statements. Policyowners have flexibility with premium payments. They can overfund the policy (pay more than the target premium), subject to guideline limits or they can reduce or even skip payments at their option. It is important that the insured be aware of the effect to the policy should they alter premiums. They should monitor their policy s performance (with your help) through a review of annual statements. Page 6 of 12

Policy Loans and Withdrawals Cash can be accessed by the policyowner in two ways. Withdrawals, which reduce the cash value and the death benefit by the amount withdrawn, and loans, which are subject to an 8% interest rate. Withdrawals cannot be paid back. Loans may be paid back and repayment is encouraged. Surrender Charges Part of the design of the Universal Life product is the inclusion of a surrender period and surrender charges. The UL6 has a 15-year surrender charge period. The specific charges are shown in the policy. The surrender charge decreases uniformly over the first 15 years from issue or an increase in death benefit amount. Page 7 of 12

Guaranteed Coverage Monthly Premium Test This policy provides for a 5-year Guaranteed Coverage Monthly Premium test. The Guaranteed Coverage Monthly Premium test assures the policy will remain in force for at least 5 years, regardless of the level of the surrender value. The Guaranteed Coverage Monthly Premium is based on the face amount of the policy and varies by sex, risk class and issue age. The monthly premium is one-twelfth of the annual premium. Under the Guaranteed Coverage Monthly Premium Test, the policy is guaranteed to stay in force during the first 5 policy years, even if the surrender value is not sufficient to cover the next monthly deduction and monthly cost of insurance, provided that the sum of the premiums paid to date, less any withdrawals and partial surrender charges, and less any indebtedness, equals or exceeds the Guaranteed Coverage Monthly Premium time the number of months from the policy issue date through the current month. Five Year Guaranteed Coverage The total 5 year Guaranteed Coverage Monthly Premium for the policy and all attached riders is the monthly amount needed to ensure this policy and all riders stay in force during the first five policy years. Five year Guaranteed Monthly Premiums are also shown separately for the policy and each rider. We guarantee this policy and all attached riders will stay in force during the first five policy years provided that: the sum of the premiums paid to date, less any indebtedness, and less any withdrawals and partial surrender charges; equals or exceeds the accumulated 5 year Guaranteed Coverage Monthly Premium. On the date of issue the accumulated 5 year Guaranteed Coverage Monthly Premium is the total 5 year Guaranteed Coverage Monthly Premium as shown in the policy. On each subsequent policy monthly date the accumulated 5 year Guaranteed Coverage Monthly Premium is increased by the total 5 year Guaranteed Coverage Monthly Premium in effect for that policy month as shown in the policy. Page 8 of 12

Policy Changes By written request the policyholder can make the following changes: a. increase the face amount; or b. decrease the face amount; or c. change the death benefit option. The effective date of any change will be the monthly date on, or next following, the date we approve the request. Increase the Face Amount You must apply for any increase in face amount on a supplemental application. We will require evidence of insurability. Both insureds must be under age 81. Each increase must be equal to or greater than $10,000. Additional surrender charges will be imposed with each increase in face amount. We will send a supplement showing the increase and the additional surrender charges. Decrease the Face Amount The face amount remaining in effect after a decrease must be such that the death benefit amount is never less than $50,000. The face amount will be decreased in the following order: a. against the most recent increase in the face amount; b. against the next most recent increases; c. against the initial face amount The effective date of any change will be the monthly date on, or next following, the date we approve the request. Change the Death Benefit Option The following changes listed below may be made at any time. Option A Level Death Benefit or Option B Increasing Death Benefit. Option A to Option B This will decrease the face amount by the account value on the effective date of the change. We will not make this change if the death benefit amount after the change would be less than the minimum death benefit amount. Option B to Option A This will increase the face amount by the account value on the effective date of the change. We will send you a supplement showing the change. Page 9 of 12

Product Riders Accidental Death Benefit Rider This rider provides for an additional death benefit in the event the insured s death occurs as a result of an accident. Rider issue ages are 0-60. The rider terminates at age 65. Issue amounts are from $10,000 through $200,000, but not greater than twice the base policy face amount. Additional Term Insurance Rider This rider provides for level term insurance coverage on the primary insured. Issue ages for this rider are 18 through 65. Coverage terminates at age 70. The rider may be issued for amounts from $10,000 up to an amount equal to five times the base policy face amount. Premiums are based on the $100,000 and above mortality cost band. (See rate tables for details.) Children s Term Insurance Rider This rider provides for convertible term insurance coverage on all insured children between 15 days and 18 years of age at the time of issue, or born to or adopted by the insured after the date of application. Coverage continues until each child's age 25. The coverage is issued between insureds actual ages 20 and 55 and terminates at the oldest insured's actual age 65. The amount of coverage must be $5,000 or $10,000. Conversion may be made at each child's age 25, for up to $5,000 for each $1,000 of children's insurance. Cost of Living Rider This provides for an automatic increase in face amount on the first policy anniversary and every year thereafter while the rider is in force without evidence of insurability, between ages 20 and 65. This coverage terminates upon the earliest of a) the 10th policy anniversary; b) the policy anniversary following the oldest insured s 65 th birthday; or c) when the total cost of living rider increases equal 50% of the policy face amount on the date of issue. This coverage carries no extra monthly cost of insurance or minimum premium. However, if the owner rejects any increase, the rider is terminated. Page 10 of 12

Guaranteed Insurability Option Rider This rider guarantees the right to purchase additional insurance without evidence of insurability on the policy anniversaries following the insured s 22nd, 25th, 28th, 31st, 34th, 37th and 40th birthdays, as well as certain other alternate option dates. The rider is issued at ages 0-37 and terminates at age 40. The rider may be issued for a minimum face amount of $10,000 and a maximum face amount that varies by issue age. Issue Age 0-24 25-27 28-30 31-37 Maximum per option $15,000 $20,000 $25,000 $30,000 Living Benefit I & II Rider (Accelerated Death Benefit Rider) This rider allows for access to advance funds from a life insurance policy. There is no cost for this rider. For members age 59 and under, a $50,000 minimum death benefit is required to be eligible. For members age 60 and older, a $25,000 minimum death benefit is required to be eligible. If exercised, a $250 administration fee is charged, payout is reduced by various factors as stated in the contract, and will continue with a reduced death benefit and lower premiums. LB I - Terminal Illness Option. Up to 60% of death benefit available in determining the lump sum payout amount. Available on most term policies. LB II - Terminal Illness Option and Nursing Home Option. Up to 90% of death benefit available in determining the lump sum payout amount. Available on most currently issued whole life and universal life policies. Other Insured Level Term Insurance Benefit This rider provides for convertible term insurance coverage on the insured s spouse or other insured if death occurs prior to the other insured s age 70. The coverage is issued between the other insured s ages 20 and 65 and terminates at the other insured s age 70. The amount of coverage must be at least $10,000 and be for no more than the base face amount. The guaranteed and current monthly cost of insurance rates for this coverage is based on the other insured s attained age, sex and risk class. Conversion may be made at any time prior to the other insured s age 65. Page 11 of 12

Waiver of Monthly Deduction/Cost of Insurance Benefit This rider provides for waiver of all monthly cost of insurance and monthly deductions during a specified insured's period of total and permanent disability (if such disability has continued for at least six months). The rider is issued between the named covered insured s age 20 through 55, based on the age of the covered insured. The rider monthly cost is a percentage of the monthly cost of insurance and monthly deduction. The rates are based on the attained age of the covered insured. The minimum premium is a percentage of the policy commissionable premiums, based however on the named covered insured s age at issue. The rider terminates at (and disability must occur before) age 60. Waiver of Premium Benefit This rider provides for the monthly crediting of a specified premium benefit during a named covered insured s period of total disability as defined by the rider. This coverage is issued between ages 20 and 55, based on the age of the covered insured. The monthly cost of insurance rates for this rider are per $10 of monthly disability benefit. The rates are based on the attained age of the covered insured. The minimum premium rates for this rider are per $10 of monthly disability benefit based on named covered insured s age at issue. The rider terminates at (and disability must occur before) age 60. If we are providing benefits due to the disability of the covered insured which began before age 60, we will continue to provide such benefits until such time that the covered insured ceases to qualify for the benefit. Page 12 of 12