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Covering the Basics of Life Insurance

Life Insurance and You!

Not a Deposit Not Insured by Any Federal Government Agency

No Bank Guarantee Not FDIC Insured May Lose Value

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Planning for your Financial Future

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You’re MarriedLife insurance can cover many different needs:Providing income for basic living expensesMaintaining mortgage paymentsUtility billsCredit-card debtCar loansPaying for final expenses

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Married With Kids

Income protection Day care

College funding Long term financial goals

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Single Parents

Nearly 40% of single parents have no life insurance.

Many with coverage say they need more than they currently have.

Source: “Trillion Dollar Baby” Report, LIMRA International, June, 2005. Updated information is not available as of 2010.

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Stay At Home Parents

On average, $40,000 a year in services provided by a stay at home parent

The LIFE Foundation- www.lifehappens.org

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The Reality…

2010Facts from LIMRA Life Insurance Awareness Month, September 2010

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Agenda

• Life Insurance – What you need to know

• Types Of Life Insurance Policies• Life Insurance Policy Reviews• Frequently Asked Questions

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Life Insurance: What You Need to Know

Provides financial security for dependent family members

Income tax free death benefits

Proceeds direct to beneficiaries

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Life Insurance: What You Need to Know

Life insurance can cover many different needs, including:

Family Mortgage Living Expenses Graduation

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If you’re a business owner, you have just as many to consider: Planning for business continuation Funding a buy-sell agreement Covering a key employee Providing for bonus plans

Life Insurance: What You Need to Know

Did you know 40%1 of American businesses now owned by women?

1 Source: Small Business Administration July 2009

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Types Of Life Insurance Policies

Term or Term-Like Universal Life Variable Universal Life Single Premium Variable

Universal Life

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Life Insurance Flow ChartIs there an insurance need?

Yes No

Is the insurance need greater than 15 years?

Current insurance is sufficient

YesNo

Term Insurance Permanent Insurance

Are you interested in having the potential to maximize cash value in anticipation of using it in the future, thus willing to accept a higher degree of risk?

NoYes

Variable Insurance Fixed Insurance

Do you desire premium payment and death benefit flexibility?

NoYes

Universal Life Whole Life

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About Term or Term-Like Life Insurance

Term or Term-like life insurance is designed to provide pure death benefit protection for a specific period of time, usually 10, 15, 20, 25, or 30 years.

Less expensive than permanent insurance. Choose the amount of coverage needed and

the length of the protection period based on your specific needs.

Typically it can also be renewed upon completion of the initial term period selected.

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About Universal Life Insurance

Universal life insurance is a versatile type of life insurance designed to help solve a variety of long-term needs. Features of universal life include: Flexible premium payments Adjustable death benefit coverage Proceeds payable directly to your named beneficiaries Tax-deferred growth on policy values Access to policy values through policy loans and withdrawals

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Benefits of Universal Life Insurance

Universal Life insurance offers you flexibility in both premium payments and the death benefit your family receives. You can adjust the death benefit and your premium payments, within certain limits, to fit your financial situation.

While universal life is designed to help solve a long-term need, it is not an investment in the strictest sense.

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How Universal Life Works

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About Variable Universal Life Insurance

Because VUL blends both protection and investment features, it provides the potential for long-term accumulation of policy values which may be used for a variety of needs.

Variable universal life insurance involves the risk of investing in stocks, bonds and other securities, including market ,interest rate and credit risk and loss of principal. If the investment performance of underlying investments is poorer than expected (or if sufficient premiums are not paid), the policy may lapse or not accumulate sufficient value to fund the intended application. Investments in variable universal life insurance policies are subject to fees and charges from both the insurance company and the managers of underlying investments. Loans and withdrawals may negatively impact policy value, investment performance, death benefit and any lapse protection.

See prospectus for complete information. Investors should carefully consider the investment objectives, risks, charges, and expenses of a variable universal life insurance policy and its underlying investment options before investing. This and other information is contained in the prospectus for variable universal life insurance options. Investors should read the prospectus carefully before investing.

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Benefits of Variable Universal Life Insurance

Variable Universal Life (VUL) insurance combines protection for beneficiaries through an income tax free* death benefit with significant flexibility for investors.

Permits investors to structure policies to help meet their personal or business objectives through flexibility in premium payments, investment options, and death benefits.

Provides the potential for long-term accumulation of policy values.

* The tax treatment of life insurance is subject to change. Neither Protective Life nor its representatives offer legal or tax advice. Purchasers should consult their attorney or tax advisor regarding their individual situations.

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Variable Universal Life As An Investment

Advisory fees and other fund expenses apply to investments in the variable sub-accounts.

In most policies, loans and withdrawals are available after the first policy year. Just keep in mind that loans and withdrawals may negatively impact policy value, investment performance, death benefit, and any lapse protection features.

Whether loans and/or withdrawals (or other amounts deemed to be distributed) constitute income depends, in part, on whether the policy is considered a Modified Endowment Contract (MEC).

Loans and withdrawals from MECs may be subject to income tax and may be subject to a 10% IRS penalty tax if taken prior to age 59 ½. Taxation may occur upon withdrawal, surrender, lapse, or maturity. See prospectus for more complete information. The death benefit is subject to the claims paying ability of the issuing insurance company.

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How a VUL Policy Works

Premium payment is made

Premium Expense Charge is deducted

Balance of premium payment (net premium payment) is allocated to owner’s choice of

investment options.

Any earnings grow tax-deferred while in the policy.

Policy’s surrender value is accessible

after the first policy year

Monthly deductions

Cost of Insurance, Mortality and

Expense Risk Charge and any other

charges are deducted at issue

and monthly thereafter from the

policy value

Loans or withdrawalsIncome-tax free death benefit is paid upon death of insured

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Determining the Right Type of Life Insurance For You

• Some permanent life insurance products emphasize low premium cost, while others emphasize policy value accumulation.

• Term and term-like products emphasize death benefit coverage for a specific period of time.

Note: A family’s financial needs, ownership, beneficiary, and replacement issues must be considered when choosing the proper life insurance policy.

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Life Insurance Policy Reviews

Why it is so important to have a life insurance policy review?

Your insurance professional or financial advisor can help!

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Frequently Asked Questions

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The tax treatment of life insurance is subject to change. Neither Protective Life nor its representatives offer legal or tax advice. Purchasers should consult their attorney or tax advisor regarding their individual situation.

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Variable universal life policies issued by Protective Life Insurance Company (PLICO). Securities offered by Investment Distributors, Inc. (IDI). Both located at 2801 Highway 280 South, Birmingham, AL 35223.PLICO and IDI are each subsidiaries of Protective Life Corporation. Protective Life Corporation is a separate company and is not responsible for the financial condition or contractual obligations of PLICO or IDI.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a variable universal life insurance policy and its underlying investment options before investing. This and other information is contained in the prospectuses for a variable universal life insurance policy and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting PL ICO at (800) 265-1545.

Questions?

Your insurance professional or financial advisor is available to set up an appointment to discuss your

personal needs in further detail.

Not a Deposit Not Insured by Any Federal Government Agency

No Bank Guarantee Not FDIC Insured May Lose Value

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