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INDEXED UNIVERSAL LIFE INSURANCE is more than mostpeople might expect. It provides you with income-tax-free death benet protection for your beneciaries.It can also help …• Diversify your taxes and assets• Provide nancial help to your family in a time of need• Supplement your retirement income, generally tax-free, via policy loans• Pay medical bills during an illness• Pay off debts like credit cards and student loans• Pay down — or pay off — a mortgage• Pay college tuition• Assist with charitable giving• Assist with legacy planningIt can help you get the most from your life insurance. 2

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4INDEXED UNIVERSAL LIFE INSURANCE: HOW IT WORKSAn indexed universal life insurance policy falls under Section 7702 of the IRS tax code. Section 7702 was created by the IRS to ensure that only actual life insurance policies receive the tax-advantaged treatment afforded to life insurance, such as income-tax-free death benets and income-tax-deferred cash value growth within the policy.In addition to the tax advantages provided in life insurance, a properly structured indexed universal life (IUL) policy can deliver the benet of asset accumulation through the power of index interest crediting while safeguarding against any market losses. This means an IUL policy can be a powerful product to consider for anyone with a need for death benet protection and a goal of accumulating wealth for retirement. Features and Benets Indexed Universal Life InsuranceTraditional Retirement AccountsIncome-Tax-Free Death Benet1Market VolatilityIncome-Tax-Free DistributionsContribution LimitsEarly Withdrawal IRS Tax PenaltyAnnual Income LimitsRequired Minimum DistributionsYesProtectedYesNoNoNoNoNoExposedNoYesYesYesYes

Market volatilityThe cash value of an IUL insurance policy can be allocated to xed or indexed accounts. Interest earnings in an indexed account are linked to the performance of an external market index, like the S&P 500®. This means you are earning interest without actually participating in the stock market.2 The policy also has a “oor.” This oor is the minimum guaranteed rate for the interest credited to the cash value of the policy, which ensures the policy cannot lose value due to poor index performance. Income-tax-free distributions Distributions from an IUL insurance policy are typically taken as loans, which are not considered income by the IRS, unlike distributions from traditional IRAs and 401(k)s, 403(b)s and 457(b)s.3Contribution limitsThere are no IRS-imposed contribution limits on IUL policies, unlike the contribution limits on IRAs, Roth IRAs and other traditional retirement accounts. However, contributions are subject to both federal guideline rules and death benet amount issued by the insurance carrier.Early withdrawal IRS tax penaltiesIUL policies do not have IRS early withdrawal tax penalties, unlike traditional IRAs and 401(k)s, which carry substantial penalties for withdrawals made before age 59 ½. Keep in mind that life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender charges.Annual income limitsThere are no annual income limits on IUL policies, unlike traditional retirement savings accounts and Roth IRAs.Required minimum distributionsIUL insurance policies do not have required minimum distributions (RMDs), unlike employer-sponsored qualied retirement plans, which generally require minimum distributions at age 70 ½ and thereafter.An IUL insurance policy can be especially useful for those who are likely to max out traditional retirement products or who earn too much income to participate in them, as well as for anyone concerned about their tax liability during their retirement years. IUL provides a way to build tax-free income during retirement, to help with college tuition or a home purchase, and to have cash on hand for emergency use. It’s important to remember that most life insurance policies are subject to medical underwriting, and in some cases, nancial underwriting, and the costs of a life insurance policy, including premiums and cost of insurance charges, are dependent on your age and health at the time of application.1 If properly structured, proceeds from life insurance are generally income-tax-free.2 Indexed universal life insurance is not a registered security or stock market investment and does not directly participate in any stock or equity investments, or index. The index used is a price index and does not reect dividends paid on the underlying stocks.3 Policy loans and withdrawals will reduce the available cash value and death benet and may cause the policy to lapse or affect guarantees against lapse. Additional premium payments may be required to keep the policy in force. Withdrawals made during a surrender charge period may be subject to surrender charges.5

THREE BUCKETSWHAT YOU NEED TO KNOWTAX DIVERSIFICATION IN A simple way to visualize the impact of taxes on money is to divide assets into three buckets.1. The Taxable Bucket representsaccounts for which you typicallyreceive a Form 1099 each year.Here are some examples:• Interest from certicates ofdeposit (CDs)• Dividends and taxabledistributions from mutual fundsheld in nonqualied accounts• Dividends and capital gainsfrom stocks• Interest and capital gainsfrom bonds• Reinvested dividends2. The Tax-Deferred Bucketmay include:• Traditional IRAs• 401(k), 403(b) or 457(b) accounts• Qualied and nonqualiedannuities• Appreciation of unsold mutualfunds and securities• Savings bonds6

WHAT YOU NEED TO KNOWTAX DIVERSIFICATION IN THREE BUCKETS A simple way to visualize the impact of taxes on money is todivide assets into three buckets.3. The Income-Tax-FreeBucket includes:• Roth IRAs• Municipal bonds• Appreciation of capital assetsheld until death• Life insurance (if properlystructured)Most nancial professionals recommend diversifying retirement assets, so retirees can make sensible choices regarding how to position those assets to generate retirement income. Part of the diversication process should include tax diversication — placing some retirement assets into each of the available tax buckets.7

8SOLUTIONS FOR TAXING SITUATIONSDue to reduced tax rates as a result of the Tax Cuts and Jobs Act, consumers have a window of opportunity to leverage the tax advantages of IUL insurance products for retirement planning. With the tax breaks set to expire Dec. 31, 2025, unless Congress acts, tax rates will see an increase in 2026 and beyond. You may be able to convert tax-deferred qualied funds that are currently not being used for retirement into an IUL insurance policy — paying taxes now, when tax rates are low, rather than paying taxes later when tax rates will almost certainly be higher. You should consult with a qualied tax advisor to determine the best approach for paying those taxes. It is important that you understand how the taxes will be paid and how it could impact your retirement accounts. It is also important to keep in mind that increased taxable income from the conversion may have several consequences, including (but not limited to) a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benets and higher Medicare premiums. Also, keep in mind that any recommendation to liquidate funds held in a securities product, including those within an IRA, 401(k) or other retirement plan, can be conducted only by individuals currently registered to provide investment advice. You should speak with a nancial advisor for guidance.

9HISTORY OF U.S. TAX RATES (1913-2019)Source: https://bradfordtaxinstitute.com/Free_Resources/Federal-Income-Tax-Rates.aspx Accessed on July 2, 2020.0%10%20%30%40%50%60%70%80%90%100%19171920192319261929193219351938194119441947195019531956195919621965196819711974197719801983198619891992199519982001200420072010201320162019PercentGreat Depression (1929-1939)Great Recession (2007-2009)U.S. enters WWII (1941)U.S. enters WWI (1917)

INDEXED UNIVERSAL LIFE INSURANCE …… can provide protection and opportunity for growth when you may need it the most.It combines the traditional death benet protection and tax advantages provided by life insurance, plus the potential for cash value growth linked to the performance of a stock market index with a minimum guaranteed interest rate oor.Strengthen your nancial strategy with IUL and the power of indexing. 10

110.00%Above is a hypothecal illustraon of the following:1. The red line represents a $100,000 investment in the stock market that tracks the performance of the S&P 500 Index, including dividends.2. The green line represents $100,000 used to purchase an IUL policy and allocated to an index interest creding method ed to the performance of the S&P 500 Index, assuming a hypothecal cap rate of 10% and an interest rate floor of 0%. 3. The blue line represents the interest rate floor. Even if the market performs poorly, your policy will never receive interest credits less than the minimum guaranteed interest rate of 0%.Indexed universal life insurance is not a direct investment in the stock market. It is an insurance product that provides death benefit protecon, first and foremost, with guarantees backed by the financial strength and claims-paying ability of theissuing company. It provides the potenal for interest to be credited based in part on the performance of specific indexes, without the risk of loss of premium due to market downturns or fluctuaon. It may not be appropriate for everyone.This informaon is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice to meet the parcular needs of an individual’s situaon. Please note, it is not possible to invest directly into the S&P 500® Index; this measure is provided solely as a benchmark of overall market performance. Past performance of the S&P 500® is not an indicaon of future performance and is not guaranteed.Standard & Poor’s: “Standard & Poor’s®,” “S&P®,” and “S&P 500®” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”). S&P 500® returns based on informaon obtained from Yahoo Finance GSPC Historical Prices & Standard and Poors.com (January 2, 2019).The power of Index Interest Creding & the Benefits of Downside ProteconIf you have a need for death benefit protecon, you may want to consider a life insurance product called IUL. One of the many benefits of IUL is the ability to accumulate significant cash value through the power of index interest creding. The illustraon below is for informaonal purposes and intended only to demonstrate how a hypothecal IUL policy might have performed had it existed over the period depicted in the chart and based on the stated assumpons. Actual performance would have been higher or lower than assumed and likely would have fluctuated based on product guarantees and carrier rate-seng procedures. This illustraon does not represent any specific product and does not reflect the costs of any oponal riders or the effects of any withdrawals on policy values.The Power of Index Interest Creding & the Benefits of Downside Protecon Using Indexed Universal Life Insurance (IUL)745797-2$100,0000.00% 0.00% 0.00% 10.00%8.99% 3.00% 10.00% 3.53%0.00%10.00% 10.00% 10.00%10.00% 10.00%0.00%9.54%10.00% -9.10% -11.89%-22.10% 28.68% 10.88% 4.91%15.79% 5.49% -37.00%26.46% 15.06% 2.11% 16.00% 32.39%13.69% 1.38%11.96% 21.83%$40,000$60,000$80,000$100,000$120,000$140,000$160,000$180,000$200,000$220,000$240,000$260,000$280,000$300,000$320,000$340,00000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18Annual Change in the S&P 500 w/Growth Cap (10%) and Growth Floor (0%) Annual Total Return of the S&P 500$246,507 4.86% average annual return $272,911 5.43% average annual interest Interest Rate Floor0.00%-4.38%THE POWER OF INDEX INTEREST CREDITING & Above is an illustration of how a hypothetical IUL policy might have performed had it existed over the period depicted, based on the following assumptions. It does not reect the costs of any optional riders or the effects of any withdrawals on policy values.1. The light blue line represents a $100,000 investment in the stock market that tracks the performance ofthe S&P 500 Index, including dividends.2. The green line represents $100,000 used to purchase an IUL policy and allocated to an index interestcrediting method tied to the performance of the S&P 500 Index, assuming a hypothetical cap rate of 10% and an interest rate oor of 0%.3. The blue line represents the interest rate oor. Even if the market performs poorly, the policy will neverreceive interest credits less than the minimum guaranteed interest rate of 0%.Indexed universal life insurance is not a direct investment in the stock market. Please note, it is not possible to invest directly into the S&P 500® Index. Past performance of the S&P 500® is not an indication of future performance and is not guaranteed.Standard & Poor’s: “Standard & Poor’s®,” “S&P®,” and “S&P 500®” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”). S&P 500® returns based on information obtained from Yahoo Finance GSPC Historical Prices & Standard and Poors.com (January 2, 2019).THE POWER OF INDEX INTEREST CREDITING & THE BENEFITS OF DOWNSIDE PROTECTION USING INDEXED UNIVERSAL LIFE INSURANCE

12MORE THAN YOU MIGHT EXPECTWith cash value accumulation potential, an income-tax-free death benefit, tax-free distributions via policy loans and tax-free accelerated death benets, which can be used for long-term care and chronic illness expenses, IUL can provide:• Death benet protection• Income-tax-free supplemental retirement income• Benets to help address health care costs• Legacy solutionsFINANCIAL FLEXIBILITY WHEN YOU NEED ITWhether it’s supplementing your retirement or providing cash during an unexpected emergency, IUL can help support you when you need it most.

13Living benefitsThe main benet of life insurance is the death benet protection it provides, but most IUL insurance policies also offer accelerated death benets. This means you may be able to utilize a portion of the death benet while you’re living. With accelerated death benets, the owner can accelerate a portion of the death benet should the insured be diagnosed with a qualifying event, typically a terminal illness diagnosis. The funds can be used for any purpose the owner chooses, such as assisting with illness expenses. Accelerated death benets are subject to eligibility requirements. An administrative fee may be required at the time of election. The death benet will be reduced by the amount of the death bene t accelerated. Because benets are paid before death, a discount may be applied to the death benet accelerated. As a result, the actual amount received could be less than the amount of the death benefit accelerated. Policy loansPolicy loans allow you to borrow money on an income-tax-free basis by using your cash value accumulation — even before age 59 ½. Though, policy loans are not recommended early in the policy as it can cause the policy to lapse. Depending on the product, xed and variable loan interest options may be available. The difference between these loans lies in how the interest rate charge and interest rate credited for the loan balance are determined. It’s important to remember that policy loans will reduce the available cash value and the death benet and may cause the policy to lapse or affect guarantees against lapse.Partial surrendersWith partial surrenders, you can generally withdraw money from the policy income-tax-free based on the amount of premiums paid. This will reduce the policy’s cash value as well as the death benet. Your policy’s cash value growth is credited on an income-tax-deferred basis. Partial surrenders up to your cost basis may generally be taken tax-free as long as your policy remains in force and is not a modied endowment contract. Surrender charges apply to your contract for a specied number of years based on the product used if you make withdrawals or surrender your policy. For surrender charges specic to your policy, refer to your policy illustration. Policy loans are not subject to surrender charges typically after the first policy year.Long-term care and chronic illness ridersMany IUL insurance policies offer riders and benets that can assist with unexpected health care costs. These riders allow policy owners to use a part of the death benet to help pay for long-term care and expenses related to chronic illness. Policy charges and availability depend on the product. Long-term care and chronic illness riders are subject to eligibility and generally come with an additional cost.

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