secureplus marquee 8 & marquee 8 glir

Life Insurance Company of the Southwest™National Life Group® is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison, TX and their affiliates. Each company of NLGroup is solely responsible for its own financial condition and contractual obligations. LSW is not an authorized insurer in New York and does not conduct insurance business in New York.

Form No. 11316(0413); LR12296(0413)

SecurePlus Marquee 8 & Marquee 8 GLIR

Life Insurance Company of the Southwest™

Form No. 11316(0413); LR12296(0413)

For Agent Use Only - Not For Use With The Public

The Challenges of Retirement Income

• Economic Recovery is slow

– Market has recovered losses and is climbing, but Boomers on the cusp of retirement do not have the time horizon to make up losses from 2008/2009

• 44% of Boomer and GenX households could be at risk of running short of retirement money*.

– On the average Americans will need an additional $48,000 at retirement age 65 to ensure they do not run out of money

*Employee Benefit Retirement Institute—An Expanded Perspective on Retirement Readiness. November 2012, EBRI Notes, Vol. 33, No. 11


Form No. 11316(0413); LR12296(0413)


• Low Interest rates are here to stay

– Clients looking for safety and security face very low rates of return.

• Traditional income solutions are undesirable

– Annuitization requires relinquish of control

– 4% withdrawal philosophy is not guaranteed

The Challenges of Retirement Income


Form No. 11316(0413); LR12296(0413)


I Want it ALL!

• Protection from market loss

• A bonus to make up for lost time

Most of AllIncome I Cannot Outlive!


Form No. 11316(0413); LR12296(0413)


SecurePlus Marquee 8 Delivers!

• 8% Bonus Accumulation Value – vests 1/5th per year in years 11-15

– BAV included in the death benefit day one

• Guaranteed never to lose a penny due to a downturn in the stock market**

• Guaranteed Lifetime Income Rider*

– The SecurePlus Marquee 8 GLIR – includes 8% BAV Beginning Day

One

*Guarantees are based on the claims paying ability of the issuing Company. GLIR currently required on all sales **Assumes no withdrawals that would be subject to MVA


Form No. 11316(0413); LR12296(0413)


• Extra Features for Big Picture Benefits

– Special Enhanced Lifetime Income Option, Nursing Care Rider and Terminal Illness Rider, all at no additional cost.

– Enhanced Death Benefit options

• Great for Clients, Great for YOU

– Very competitive commissions

SecurePlus Marquee 8 Delivers!


Form No. 11316(0413); LR12296(0413)

8% Bonus Accumulation Value


Form No. 11316(0413); LR12296(0413)


Bonus Accumulation Value (BAV)

• Equals 8% of accumulation value in years 1-10

• Transfers automatically to the accumulation value on the 11-15 policy anniversaries

• Withdrawals from the accumulation value proportionally reduce the BAV

• If the policy is surrendered prior to the 15th policy anniversary, any portion of the BAV not yet transferred to the accumulation will be forfeited.

• Paid premium, credited interest and BAV are fully liquid after the 15th policy anniversary.

• BAV included in the Benefit Calculation Base

Policy Anniversary 11 12 13 14 15

Percent Transferred 20% 25% 33.33% 50% 100%


Form No. 11316(0413); LR12296(0413)


SecurePlus Marquee 8Crediting Options

1. Declared Rate

2. S & P 500 Index Pt-to-Pt Option 1: 100% Index Rate & Cap

3. S & P 500 Index Pt-to-Pt Option 2: 140% Index Rate & Cap

4. S & P 500 Index Pt-Daily Average

5. Russell 2000 Index Pt-to-Pt Option 1: 100% Indexed Rate & Cap

6. Russell 2000 Index Pt-to-Pt Option 2: 140% Index Rate & Cap


Form No. 11316(0413); LR12296(0413)


SecurePlus Marquee 8 HighlightsPlan Types Qualified or Non-qualified except 412(i)

Bonus Accumulation Value 8% of the Accumulation Value vesting in years 11 -15

Issue Ages 0-80 (Actual Age)

Minimum Premium $10,000

Maximum Premium $ 500,000 (0-75), $ 250,000 (76-80)

Free Withdrawals 10% of the Accumulation Value each year after the first Policy Year

Withdrawal Charge % 10, 9, 8, 7, 6, 5, 4, 3, 2, 1, 0 (Reduced for age 59+ in some states)

Riders (where approved) Nursing Care and Terminal Illness at no additional cost

Income Riders Marquee 8 GLIR at an additional cost (required on all sales for issue age 40+)

Special Enhanced Life Income (SELI)- in approved states

Available after 5th Policy Year if Annuitant is at least 55 and cannot perform 2 of 6 ADLs permanently – annuitization benefit

Loans Yes 403(b) and 457(b), up to 50% of cash value if plan permits

Guaranteed Minimum 87.5% of the premium paid growing at a rate between 1-3% based on formula on file at state department of insurance.

Policy Form Number 8965 (0411) with rider forms 8966(0411) and 8967 (0411)


Form No. 11316(0413); LR12296(0413)


Marquee SPDA Series – Market Value Adjustment (MVA)• Benefit of the MVA on SecurePlus Marquee

– Potential for Higher rates than without an MVA

– Lowers the reserve/capital requirements

– Limits the companies exposure to disintermediation risk

– Stabilizes our product offerings – more competitive

• Only applicable during the first 10 years

• Only applies to withdrawals over the free amount

• Not applicable on death

• Can’t invade the minimum contractual guaranteed values (Policy Value Account)

• Can be positive or negative


Form No. 11316(0413); LR12296(0413)


How the MVA Works

• Insurance companies buy fixed income investments (mainly bonds) to support their fixed annuity liabilities.

• When an annuity is surrendered, the company incurs a gain or a loss on the underlying asset.

Scenario 1: Decreasing Rates

10 Year Treasury at issue 4%

10 Year Treasury at surrender 2%

Results in a Positive MVA

Scenario 2: Increasing Rates

10 Year Treasury at issue 4%

10 Year Treasury at surrender 6%

Results in a Negative MVA


Form No. 11316(0413); LR12296(0413)


What's to Like About:The SecurePlus Marquee 8• 10 Year Surrender Charge Term

• Lower Surrender Charges = available nearly everywhere & BD friendly

• 8% Bonus Accumulation Value

– Immediately Vested at Death

– Immediately credited to the Marquee 8 GLIR Benefit Calculation Base

– Vested Years 11-15 for Cash Surrender

• Strong Interest Rates (Afforded by the MVA)

• LSW’s Excellent Reputation Renewal Rates

– Strong Ratings

• The Marquee 8 GLIR (Rider Form 8969(0411) and 8970(0411))

Marquee 8 is Policy Form 8965(0411) with rider forms 8966(0411) and 8967(0411)


Form No. 11316(0413); LR12296(0413)

Income for LIFE! SecurePlus Marquee 8

Guaranteed Lifetime Income Rider


Form No. 11316(0413); LR12296(0413)


SecurePlus Marquee 8 GLIR

• Features and Benefits– Same Great Roll-up: 6% Compounding

• Guaranteed Years 1-8 (or to age 85, whichever is earlier)– Roll-up Automatically Continues in Years 9-20: 3% Guarantee– Current 6% Roll-up May Continue – Guaranteed Withdrawal Percentage beginning at 4% at age 60

increasing 10 bps each year income is differed up to age 90.– Income can begin after the first policy year– Same Start/Stop Flexibility– Same Enhanced (ADL) Benefit in approved states for single life

level income


Form No. 11316(0413); LR12296(0413)


Ultimate Protection:The Marquee 8 GLIR• Added Features for Increased Benefits

– 8% BAV is IMMEDIATELY reflected in the Benefit Calculation Base

• Better Income than the standard GLIR

– 3% annual increasing Guaranteed Withdrawal Payment option

– Enhanced death benefit options before election of income

– Roll-up Ceases at 20 years or age 85 if earlier

– Charge Increases to 90 bps of AV


Form No. 11316(0413); LR12296(0413)


Example - Accumulation Phase

55-year-old purchases $100,000 SecurePlus Marquee 8 with the Marquee 8 GLIR

SecurePlus Marquee 8

Accumulation Value

Day One - $100,000

3%* Average Interest Credited Annually Net Of

Rider Charges (*This is a hypothetical rate, and itis not guaranteed. The rate will vary.)

AV End of Year 10 - $134,392


Benefit Calculation Base

Day One - 108,000

6% Compounding

Roll Up Rate

End of Year 10 - 193,411


Form No. 11316(0413); LR12296(0413)


Guaranteed Withdrawal Payments are elected at Age 65, Level Income Option

Example - Distribution Phase

SecurePlus Marquee 8Accumulation Value (example only)

End of Year 10 $134,392

GWP - $ 8,703

AV after Withdrawal $125,689

3.75% interest* + $ 4,713(*Hypothetical rate)

Rider Charge - $ 1,173

$129,229

GWP - $ 8,703

BAV Transfer + $ 1,932

AV end of yr 11 $122,458



End of Year 10 193,411

Lifetime Income Calculation193,411X 4.5% (Guaranteed Withdrawal Percentage @attained age of

65)

$8,703 Guaranteed Income for Life

The greater of the Accumulation Value or



Form No. 11316(0413); LR12296(0413)


3% Annual Increasing Guaranteed Withdrawal

Payment Option


Form No. 11316(0413); LR12296(0413)


Increasing Guaranteed Withdrawal Payment Option• Selected when income is elected – not at issue

• Increases the Guaranteed Withdrawal Payment by 3% per year

• Uses a lower Guaranteed Withdrawal Percentage than the level income option

– Age 60 increasing GWP is 3% (vs. 4% level income option)

– GWP increases 10 bps per year income is deferred

• Guaranteed Withdrawal Payments stop increasing once the accumulation value is depleted– Payments continue at the level preceding the accumulation value

depletion until death of the annuitant


Form No. 11316(0413); LR12296(0413)


The Marquee 8 GLIR Death Benefit Options

The Benefit Calculation Base Is Available at Death!


Form No. 11316(0413); LR12296(0413)


SecurePlus Marquee 8 GLIRThe Death Benefit

• Before now, the Income Calculation Base was available for income only• Now, the Benefit Calculation Base is Available as a Death Benefit

– 100% of Benefit Calculation Base payable over 5 Years, or– Beneficiary can choose lump-sum death benefit that is the greater of:

• Policy Death Benefit• 75% of Benefit Calculation Base

• Special Death Benefit ceases when lifetime income is elected• No Underwriting• No 5-year wait


Form No. 11316(0413); LR12296(0413)


Marquee 8 GLIR Death BenefitGuaranteed assumptionsInitial Premium $100,000; No Lifetime Withdrawals

Deferral Benefit Calc. 5-Pay Lump-Sum Lump-Sum

Years Base Option Option Yield At Death

10 $182,618 $36,523 $136,963 3.20%

15 $211,705 $42,341 $158,778 3.13%

20 $245,424 $49,084 $184,068 3.10%

Assumes 6% Roll-up years 1-8Assumes 3% Roll-up years 9-20


Form No. 11316(0413); LR12296(0413)


Marquee 8 GLIR Death Benefit Current assumptionsInitial Premium $100,000; No Lifetime Withdrawals

Deferral Benefit 5-Pay Lump-Sum Lump-Sum

Years Base Option Option Yield At Death

10 193,411 $38,682 $145,058 3.79%

15 258,828 $51,765 $194,121 4.52%

20 346,370 $69,274 $259,777 4.89%

Assumes 6.0% Roll-up years 1-20


Form No. 11316(0413); LR12296(0413)

Feel the Power !

SecurePlus Marquee 8 &

Marquee 8 GLIR


Form No. 11316(0413); LR12296(0413)


Maximize Money Saved!

Steve is a 62-year old and plans on retiring in a year.

He saved $250,000 in an IRA

If he earns 3% over the next year, his estimated income would be $10,300 using 4% withdrawals.

He wants something better.

Marquee 8 GLIR will generate a level income at age 63 of:

$12,306 for LIFE

That is an additional income of $2,006 per year!


Form No. 11316(0413); LR12296(0413)


Same Income for Less Money!

Susan is a 55-year old and plans on retiring at age 63.

After looking at all her sources of income, she realizes she will need her savings to generate $8,000 a year to reach her income goal.

If she earns 4% over the years, she will have to set a side $146,138 today to withdraw the $8,000 needed using the 4% withdrawal method.

She is looking for a more efficient solution.

Marquee 8 GLIR will generate $8,000 with a contribution of only:

$108,082

That is $38,056 less to get the same income!

PLUS it is Guaranteed for Life!


Form No. 11316(0413); LR12296(0413)


SecurePlus Marquee 8 Delivers

• 8% Bonus Accumulation Value– Immediately credited to the Benefit Calculation Base– Included in the death benefit day one

• 10/10 withdrawal charge schedule• Strong rates with LSW’s reputation for maintaining rates (no 1st yr teasers)• Marquee 8 GLIR

– More income than standard GLIR– Compounding roll up rate– 3% increasing income option– Benefit Calculation Base is payable as a death benefit

• Full amount over 5 years, or• 75% of Benefit Calculation Base paid as a lump sum


Form No. 11316(0413); LR12296(0413)

Questions

Contact the National Life Group Sales Desk at

1-800-906-3310

secureplus marquee 8 & marquee 8 glir

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