Innovation in Life Insurance!

1. Innovation in Life Insurance! Life & Accident Assurance Co. Vernon U. Lawrence

2. Let’s Preface the Presentation • Catch the highpoints • Don’t worry about getting confused, Screw U may have sophisticated and unconventional definitions to terms you may have heard before. • For example. • Savings • Dividends • Death Benefits • Lapse (not what you take around the pool) • Tax Premiums (not necessarily what our ins. costs) • Advantaged LETS BEGIN THE JOURNEY TO DISCOVER V.U.L.!

3. Variable Universal Life Insurance • Not your Parent’s Whole Life or Universal Life • Among the most flexible products on the market today. It is permanent insurance that provides guaranteed lifetime protection, combining the adjustable premium and adjustable coverage of universal life with the incredible growth potential of variable investments.

4. Variable Universal Life Insurance • Your clients control nearly every aspect of the policy, including when and how much they pay in premiums, the amount of the death benefit, how to allocate their money with in the policy. • Guarantees are subject to the claims paying ability of Screw U Life and Accident Assurance Co. • Although there is premium flexibility, there are premium minimum requirements. • Cost of Insurance are not guaranteed now or in the future as Screw U Life and Accident Assurance Co. is a Mutual Society and capital deficiencies may be assessed proportionately to policyholders.

5. Variable Universal Life Insurance • How does this innovative exciting program work? • There is no fixed, required premium that must be paid on a VUL policy. Instead, clients must simply pay in enough money to cover the insurance company’s expenses and the cost of the “term” or “pure” insurance, known as the mortality cost. Generally, however, they’ll instruct the company to send them a notice for planned premiums. They may skip, pay or increase the planned premium depending on the performance of the variable savings account.

6. Variable Universal Life Insurance • Each time you make a payment Screw U deducts its sales and administrative expenses related to your contract. The remainder is credited to the Variable Savings account. Then Screw U deducts our monthly cost for insuring a client’s life. • Client’s need to be vigilant in monitoring your variable savings balance to ensure that there is sufficient balance to pay monthly expenses or the policy may lapse.

7. Variable Universal Life Insurance • Tax Deferred Savings / Tax Free Withdrawals • If clients pay in more than is required to keep the policy in force, the excess is deposited into the variable savings and not the insurance companies general fund. • Unlike outdated cash value policies a VUL’s savings fund is controlled by the policy owner.

8. Variable Universal Life Insurance • Since the policyowner controls the assets in a separate account, they have the options of investing the savings into stock funds, bond funds and money market funds. Screw U will allow clients to allocate to as many subaccount funds as they wish! • Of course with variable options come greater volatility and possible loss of value and affect the need to pay in additional premiums. • The policyowner may only reallocate funds to different subaccount options once a year.

9. Variable Universal Life Insurance • You can change your death benefit! • Your client’s situation changes and so can their death benefit (with in the guidelines that regulations and Screw U allow). • Death benefits of course can only ever be lowered. Once lowered underwriting is required to increase coverage……the client may be dying for heaven’s sake!

10. Variable Universal Life Insurance • Our innovative VUL offers the ability to get an enhanced Death Benefit. • Option 1 or A offers a level benefit. If a client’s variable savings grows, the amount they are charged for insurance is reduced accordingly. • Ex. $200,000 policy has $50,000 in savings, they pay for $150,000 of ins.

11. Variable Universal Life Insurance • Enhanced death benefit option 2 or B • The value of a client’s variable savings fund is added to the face amount of coverage. They GET BOTH! • Previous ex. $200,000 policy with $50,000 in savings would = $250,000 death benefit • There is additional cost for this incredible benefit!!!

12. Variable Universal Life Insurance • Incredible Personal Banking System available! • Clients can use part of their savings as collateral to secure from Screw U a tax free loan. Savings is moved into a fixed account, guaranteed to earn 4% (where can you get that today?) and will only incur interest of 6%! Where can client’s get a loan for a net 2% cost? • Current loan rates of 6% are illustrated, however, Screw U reserves the right to change applicable loan rates to not more than 8% without prior notice.

13. Variable Universal Life Insurance • Accessing funds through partial withdrawals • Subject to our rules, clients can make withdrawals from their savings without a loan. • This of course voids every single policy hypothetical and illustration as it is not encouraged, due to not being able to predict withdrawals at the time of application. • Also, may be taxable if the contract qualifies as a Modified Endowment Contract or the withdrawal exceeds premiums paid.

14. Variable Universal Life Insurance • Screw U will collect a sales charge on every premium payment. This charge is usually used to pay income to agents and is not sufficient for Screw U to be able to pay all of the costs incurred in the acquisition of the policy. • Screw U will recover these costs from ongoing profits we earn on the policy. • If clients cancel their policies before we recover all of these costs, we will impose a surrender charge to recover these costs. Of course the mutual fund managers will have costs of their own.

15. Variable Universal Life Insurance • Doesn’t it make sense? • Incredible combination of term insurance and tax advantage savings into mutual fund investments • Flexibility not offered in Term itself or normal Whole Life products • Incredible Compensation. Higher premiums = Higher Compensation for you.

16. Variable Universal Life Insurance Thank you for your attention Vernon U. Lawrence Available to present at your next Primerica Function!