internal training only iul/giul basic ying lin, jane fu, anna li smd base internal training

Internal Training Only

IUL/GIUL BasicIUL/GIUL Basic

Ying Lin, Jane Fu, Anna Li SMD Base Internal Training Ying Lin, Jane Fu, Anna Li SMD Base Internal Training


GIULGIUL

GIGI – Global Indexes – Global Indexese.g. WRL adopts 3 indexes:e.g. WRL adopts 3 indexes:

S&P 500 / EuroStoxx 50 / HangSengS&P 500 / EuroStoxx 50 / HangSeng

UU – Universal – Universal Flexible premium paymentFlexible premium payment

LL – Life Insurance – Life Insurance


Why Go Global?Why Go Global?

Participating global market, not US onlyParticipating global market, not US only

Source: American Funds/A world of difference Nov.2009

Why GIUL (cont.)Why GIUL (cont.)$100

13.25%

1%

8-9%

Global Index

Account

Basic InterestAccount

4%

2%

$10-$20COI

$80-$90

Tax Free Cash Accumulation


Why GIUL/IUL Why GIUL/IUL (Cont.)(Cont.)

Never Lose MoneyNever Lose Money GIULGIUL

- Cap, e.g. 13.25% max- Cap, e.g. 13.25% max

- 1% min- 1% min *IUL*IUL

-Cap, 12.5% Max-Cap, 12.5% Max

-1% min-1% min

IUL vs. S&P500IUL vs. S&P500 1/31/19961/31/1996 "10,000""10,000" "10,000""10,000" 00 1000010000 12/31/199612/31/1996 00 "11,891""11,891" 18.9118.91 12.512.5 1125011250 12.512.5 12/31/199712/31/1997 00 "15,859""15,859" 33.3633.36 12.512.5 12656.2512656.25 12/31/199812/31/1998 00 "20,390""20,390" 28.5728.57 12.512.5 14238.2812514238.28125 12/31/199912/31/1999 00 "24,683""24,683" 21.0521.05 12.512.5 16018.0664116018.06641 12/31/200012/31/2000 00 "22,435""22,435" -9.11-9.11 11 16178.2470716178.24707 12/31/200112/31/2001 00 "19,769""19,769" -11.88-11.88 11 16340.0295416340.02954 12/31/200212/31/2002 00 "15,399""15,399" -22.1-22.1 11 16503.4298416503.42984 12/31/200312/31/2003 00 "19,817""19,817" 28.6928.69 12.512.5 18566.3585718566.35857 12/31/200412/31/2004 00 "21,972""21,972" 10.8710.87 10.8710.87 20584.5217420584.52174 12/31/200512/31/2005 00 "23,047""23,047" 4.894.89 4.894.89 21591.1048621591.10486 12/31/200612/31/2006 00 "26,687""26,687" 15.815.8 12.512.5 24289.9929624289.99296 12/31/200712/31/2007 00 "28,154""28,154" 5.495.49 5.495.49 25623.5135825623.51358 12/31/200812/31/2008 00 "17,737""17,737" -37-37 11 25879.7487125879.74871 12/31/200912/31/2009 00 "22,431""22,431" 26.4626.46 12.512.5 29114.717329114.7173 12/31/201012/31/2010 00 "25,811""25,811" 15.0715.07 12.512.5 32754.0569632754.05696

2/28/20112/28/2011 00 "27,328""27,328" 5.885.88 5.885.88 34679.9955134679.99551

0.086438804=8.6%0.086438804=8.6%Internal Training Only


Participating Market & Never Lose MoneyConceptual Illustration using S&P 500 Index

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1995 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

SP 500

With 1-13.25%Crediting Rate

Major FeaturesMajor Features Tax Free Cash Value AccumulationTax Free Cash Value Accumulation Tax Free Access Tax Free Access Death Benefit Death Benefit Income Tax Free to BeneficiaryIncome Tax Free to Beneficiary Education Funding AlternativeEducation Funding Alternative Retirement Supplemental IncomeRetirement Supplemental Income Legal ProtectionLegal Protection Protection Against Market LossProtection Against Market Loss Upside Market PotentialUpside Market Potential


Major Features (cont.)Major Features (cont.)

Policy Owner Gain Greater Control Policy Owner Gain Greater Control • Flexible Premium ContributionFlexible Premium Contribution• No Minimum Age RequirementNo Minimum Age Requirement• No Mandatory Minimum DistributionNo Mandatory Minimum Distribution• Access at Any AgeAccess at Any Age• Does Not Cause Taxation From Social Does Not Cause Taxation From Social

Security IncomeSecurity Income


112/04/19 Internal Use Only15

SegmentsSegments The BIA and GIA are each split into 12 segments The BIA and GIA are each split into 12 segments

in a year. Each segments has its own anniversary. in a year. Each segments has its own anniversary. No Equity Index Interest but only the guaranteed No Equity Index Interest but only the guaranteed interest is credited during the segment year. interest is credited during the segment year. Equity Index Interest is credit at the segment Equity Index Interest is credit at the segment year end.year end.


Participation RateParticipation Rate A certain percentage of index growth A certain percentage of index growth Index Increase X Participation RateIndex Increase X Participation Rate

= Interest Rate credited= Interest Rate credited The higher the Participation Rate is, the lower cap The higher the Participation Rate is, the lower cap

usually. (Historical performance indicates that it is usually. (Historical performance indicates that it is better to choose higher participation rate rather better to choose higher participation rate rather than higher cap)than higher cap)

WRL: 100%WRL: 100% Pacific Life: VariablePacific Life: Variable


Expenses Expenses

1.1. Monthly ExpensesMonthly Expenses

a.a. Cost of Insurance Cost of Insurance

b.b. Administrative fee: $10/month Administrative fee: $10/month

c.c. Per Unit Charge: charge per $1,000 unit; 0 Per Unit Charge: charge per $1,000 unit; 0 after 8 yrs (no M&E charge)after 8 yrs (no M&E charge)

2.2. Premium Expenses: 6%Premium Expenses: 6%

3.3. Surrender Value applicable for the first 10 yrs Surrender Value applicable for the first 10 yrs decreasing to 0 at the end of 10th yr.decreasing to 0 at the end of 10th yr.


Withdrawals and Loans Withdrawals and Loans

1.1. Loans ( available after 1Loans ( available after 1stst year up to 90% surrender year up to 90% surrender value)value)

Minimum $500 each time but not exceeds 90% of the Minimum $500 each time but not exceeds 90% of the policy surrender valuepolicy surrender value

Loan Spread – 0.75% (>10yrs, 0%)Loan Spread – 0.75% (>10yrs, 0%)

3.3. Preferred Loans ( available on gain after year 10 and Preferred Loans ( available on gain after year 10 and entire loan after age 100)entire loan after age 100)Interest rate charged 2% with credited interest 2%Interest rate charged 2% with credited interest 2%

2.2. Withdrawal Withdrawal Minimum $500 each time but cannot reduce the Minimum $500 each time but cannot reduce the surrender value below $500surrender value below $500Interest rate charged is 2.75% in arrears, Credited Interest rate charged is 2.75% in arrears, Credited interest 2% interest 2%

Pacific Life Indexed Pacific Life Indexed AccumulatorAccumulator

SP500 1Yr 0-13%SP500 1Yr 0-13% SP500 2Yr 0-32%SP500 2Yr 0-32% High Par SP500 5Yr 0—No cap High Par SP500 5Yr 0—No cap

(115% Participation)(115% Participation) International 1Yr 0-13%International 1Yr 0-13%

(EURO STOXX, Hang Seng & MSCI (EURO STOXX, Hang Seng & MSCI Emerging Market)Emerging Market)

Basic Account Minimum 2% Current ?Basic Account Minimum 2% Current ?


Cost Cost

Policy loan:Policy loan:

1-6 policy year 0.25% Annually1-6 policy year 0.25% Annually

6 years and after 0%6 years and after 0% Admin charge: $7.75 through age 120Admin charge: $7.75 through age 120 Cost of InsuranceCost of Insurance Coverage Charge Per $1000 based on Coverage Charge Per $1000 based on

Face AmountFace Amount Load: Current 6.6% Guaranteed Max: Load: Current 6.6% Guaranteed Max:

7.6%7.6%


ING GDBULIIING GDBULII

Minimum face amount: 50,000Minimum face amount: 50,000 Current load 12% guaranteed 15%Current load 12% guaranteed 15% Admin fee 10/month guaranteed Admin fee 10/month guaranteed

15/month15/month PUC 0.035/unit to age 121 guaranteed PUC 0.035/unit to age 121 guaranteed

0.15/unit to age 1210.15/unit to age 121 COI based on age, gender, rating and COI based on age, gender, rating and

risk class.risk class.


John Hancock Protection John Hancock Protection UL-GUL-G

Focused on death benefit guaranteesFocused on death benefit guarantees Strong choice for ages 50+with Strong choice for ages 50+with

Guaranteed Life InsuranceGuaranteed Life Insurance Guaranteed Interest Crediting Rate: Guaranteed Interest Crediting Rate:

3%. Current: 4.5%3%. Current: 4.5% Long Term Care RiderLong Term Care Rider

-(similar plan: Pacific UL, ING UL)--(similar plan: Pacific UL, ING UL)-

$$$

Bank

Investment

Life Insurance

SafeInterests

Low returnPay Tax

Potential high return

RiskMay be Taxed

Protection,Earning PotentialFlexibilityTax benefits

Cost of Insurance

Managed GrowthManaged Growth

The 4 cornerstones The 4 cornerstones of strong financial of strong financial future:future:

The 4 cornerstones The 4 cornerstones of strong financial of strong financial future:future:

YOUR FINAL TEST:YOUR FINAL TEST:

Your Plan for the Your Plan for the Future:Future:

Can it potentially Can it potentially GROWGROW to achieve your goal?to achieve your goal?

Is it Is it SAFESAFE enough? enough? Does it have Does it have TAX TAX

ADVANTAGESADVANTAGES?? Does it have the proper Does it have the proper

PROTECTIONPROTECTION for your for your family?family?

Growth Safety

ProtectionTax-

Advantage


Threats To Financial Threats To Financial FutureFuture

Lack of planningLack of planning Market RiskMarket Risk InflationInflation TaxesTaxes

Solution:Solution:Proper PlanningProper PlanningLengthen Time HorizonLengthen Time HorizonReduce the Impact of Inflation and Reduce the Impact of Inflation and TaxesTaxes

internal training only iul/giul basic ying lin, jane fu, anna li smd base internal training

Documents

mininternal training

global market

crediting rateparticipate

crediting rate199510

moneygiul cap

jane fu

moneyconceptual illustration