Annuity Funded Life Preserving Assets for the Next Generation.

Annuity FundedLife Preserving Assets for the

Next Generation

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

• Tax deferred investment

• Effective way to accumulate assets for retirement

Deferred Annuities Offer

• Accumulate more than they will use and no longer need the annuity to supplement retirement needs

• Consider leaving the annuity to beneficiaries

Many Clients

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

• Can significantly diminish value

• Apply to growth within annuity

Potential estate tax exposure

• 2011: $5M exclusion, indexed for inflation in future years (5.25M in 2013), with a 40% maximum rate

• States may impose estate taxes at lower exemption levels

Income and Estate Tax Obstacles

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

• Uses existing deferred annuities to fund a life insurance policy

• Leverages the value of the annuity to pass assets to beneficiaries

The Annuity Funded Life Strategy

Important Note:

MetLife does not support the purchase of any new annuity with the intention of using the annuity’s income to pay life insurance premiums. MetLife may also place certain restrictions on transfers from one internal product to another. Representatives should refer to the Rewritten Business Rules.

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

• Annuitization

• Withdrawals

Taking Pay-outs from the Annuity

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

• Systematic liquidation of the annuity contract

• Payable for life or predetermined period of time

• Each payment includes tax free recovery of investment and ordinary income

• If payments cease at death, there is no value left in the annuity to pass to beneficiaries — so no estate tax

How Annuitization Works

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

• Taken as needed

• Come from ordinary income first

• Before age 59½ may trigger additional 10% tax

• Remaining annuity death benefit paid to beneficiary

Withdrawals

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

If clients pass the annuity’s full value to their beneficiaries at death:

Risk of Doing Nothing

• Income taxes must be paid on amounts exceeding the contract’s cost basis

• Estate taxes may apply to the value of the annuity (unless passed to the surviving spouse). A deduction for Income in Respect of a Decedent is available to offset a portion of this “double tax”.

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

Don and Kathy

Feel they have plenty of retirement income and wish to pass their annuity’s value to their son Rob

Annuity Value $500,000Cost basis $200,000Other assets value $3,000,000+

Risk of Doing Nothing Example

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

Case Study- Don and Kathy

For illustrative purposes only. Actual results will vary. This calculation does not include state income or inheritance taxes.

Value of Annuity at Death $500,000 ($150,000 cost basis)Estate Taxes (40%) $0

Income Taxes (35% of gain) -$122,050Net to Rob $377,950

Current Approach

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

Case Study- Don and Kathy

For illustrative purposes only. Actual results will vary. This calculation does not include state income or inheritance taxes.

Life Insurance Death Benefit $601,521Remaining Annuity Value $33,162

Estate Taxes (40%) 0Income Taxes (35% of gain) 0Net to Rob $634,683

Annuity Funded Life

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

How Annuity Funded Life Works

4 Loans and withdrawals will decrease the cash value and death benefit. If the policy does not perform as expected it may be necessary to reduce or stop distributions, and/or premium payments may need to be resumed to avoid a policy lapse. There may be tax consequences if the policy lapses or is surrendered prior to the death of the insured.

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

• Replace value of the annuity

• Enhance their legacy

• Provide income tax free asset for beneficiaries

• Keep the assets they will pass to beneficiaries out of their estate for estate tax purposes

• Reduce effect of taxes, since the death benefit can be received income and estate tax free*

*Only if the death benefit is owned by an irrevocable trust or other third party.

Life Insurance Death Benefit Can Help

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

Results

• Reduces or possibly eliminates income and estate taxes on the annuity at the time of death

• Creates an income stream to pay life insurance premiums

• Life insurance death benefit can be free of income and estate taxes if properly structured

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

Important InformationThe information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. Clients should seek advice based on their particular circumstances from an independent tax advisor since any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation.

MetLife, its agents, and representatives may not give legal, tax or accounting advice and this document should not be construed as such. Clients should confer with their qualified legal, tax and accounting advisors as appropriate.

Like most insurance policies, MetLife’s policies contain charges, limitations, exclusions, termination provisions and terms for keeping them in force. Contact your financial representative for costs and complete details.

BDVL23026-1 L0614377672[1115][All States][DC,PR] © 2014 METLIFE, INC. PEANUTS © 2014 Peanuts Worldwide

Insurance Products:• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency

• Not Guaranteed By Any Bank Or Credit Union • May Go Down In Value

Life insurance products are issued by:MetLife Insurance Company USA11225 North Community House RoadCharlotte, NC 28277

And in NY only by:Metropolitan Life Insurance Company200 Park AvenueNew York, NY 10166