Offered by National Western Life Wealth Transfer.

Offered by National Western Life

Wealth Transfer

Mechanics for Leaving a Legacy

$100 K (Qualified) Wealth Transfer

67 Y/O F N/TLTRS LTRS Solutions 5Solutions 5 Solutions 10Solutions 10

$67 K buys policy $100 K into 5 yr SPIA

$100 K into 10 yr SPIA

$33 K paid to the IRS

@33% tax rate

$6.9 K taxes per year for 5 years @

33 % tax rate

$3.8 K taxes per year for 10 years @

33% tax rate

Guaranteed DB

$127,376Guaranteed DBGuaranteed DB

$192,046$192,046Guaranteed DBGuaranteed DB

180, 337180, 337

Old Concept w/ Some New Features

Fits into Jack Marrion’s New New FINANCIAL PYRAMID

Plan Designed for Today’s Seniors seeking discounted bequeaths

Growing Legacy in terms of DB and CASH VALUETax payments spread--using the governments $$ to

buy a bigger DB!ROTH Conversion offers 3 years to spread tax

payments Wealth Transfer offers up to 10!

Estate/Estate/BequestBequest

Additional Income

Essential Income

Qualified Plans Asset or Liability?

Most folks hate the idea of an RMD

Most Seniors Want to Leave a Legacy not a tax bill

Savings Products yield next to nothing currently (8-1-2010)

Many Investment Products could be Losing Money

Taxes going up or down in the future?

October (Fiscal 2009) $164,827 $320,360 ($155,533)

November $144,769 $269,970 ($125,201)

December $237,785 $289,540 ($51,755)

January $226,090 $289,547 ($63,457)

February $87,312 $281,171 ($193,859)

March $128,924 $320,513 ($191,589)

April $266,205 $287,112 ($20,907)

May $117,217 $306,868 ($189,651)

June $215,339 $309,671 ($94,332)

July $151,480 $332,160 ($180,680)

August $145,529 $249,083 ($103,554)

September $218,880 $264,087 ($45,207)

Total 2009 $2,104,357 $3,520,082 ($1,415,725)

October (Fiscal 2010) $135,294 $311,657 ($176,363)

November $133,564 $253,851 ($120,287)

December $218,918 $310,328 ($91,410)

January $205,239 $247,873 ($42,634)

February $107,520 $328,429 ($220,909)

March $153,358 $218,745 ($65,387)

April $245,260 $327,950 ($82,690)

May $146,794 $282,721 ($135,927)

June $251,048 $319,470 ($68,422)Source: Department of the Treasury Financial Management Service Summary of Federal Government Receipts versus Outlays Fiscal 2009& 2010 in $ Millions

Market Potential $2 Trillion Dollars of in force annuities: (IRI) Questions:

How much goes to beneficiaries?

How much will pass tax free?

65% Qualifed35% Non-QualifiedRMD’s must be taken at 70 ½ from Qualified PlansA significant tax burden can be redirected if life

insurance is used to transfer Qualified WealthQualified Wealth

Why Wealth Transfer Now?

There is little in the way of guaranteed growth with treasuries at 2.9% for 10 years

Small tax burden addressed now versus larger burden for beneficiaries later

Agents, Clients & Beneficiaries WIN

If you Don’t….

Less Goes to Heirs;More to the IRS!

IRS WASHINGTON

Two things are certain: Death & Taxes ?

Good Agents help Beneficiaries avoid excess taxes!

Overcoming the Underwriting Obstacle!APS/ Dr.’s Exam/ Blood Test/ EKG’s—NO APS/ Dr.’s Exam/ Blood Test/ EKG’s—NO MOREMORE

Wealth Transfer Made Easy

Point Of SalePoint Of Sale Underwriting

Quick Decision made during 14 minute call

Pivot to an annuity if declined

Transition of qualified funds to life insurance if client is comfortable with a tax bill spread out over 5-10 years

NWL Applies Premium or Requests Transfer

POLICY ISSUED!

COMMISSIONS PAID!!

ESP

14

Lifetime Returns Select or Solutions

Point of Sale Interview

MIB searched

Inteli-Script

Fraud statement reviewed

Decision is made – Approve/Decline

Agent Sends Paperwork Either Way!

Agent & Applicant

12 Minutes to Success

Agent & Applicant

Call ESP

14 Minutes to Success!

Elite Sales ProcessingIdentified as National Western Life

Open for Calls until 9:30 PM CST, Monday thru Thursday! 5:00 PM on Fridays

Will Call Prospect at Agent’s Direction

No Exams, No APS: Instant Approval!

Application Questions are central to the Application Questions are central to the phone interview!phone interview!

Agent Critical PathwayAgent Critical Pathway1. Agent and Applicant complete the application

2. Agent calls Elite Sales Processing, Inc. (ESP) 1-888-367-9008

3. The ESP interviewer talks with the NWL® agent then asks for permission to record the interview w/ the client

4. The Interviewer asks for permission to research MIB (Medical Information Bureau) and IntelliScript (Prescription History)--the results will be back during the interview

5. Interviewer asks medical questions + additional information FROM the applicationFROM the application

6. If all questions are “No” in the medical history section, and MIB, IntelliScript are within NWL® guidelines, the application is accepted!

7. Agent sends application to NWL (accepted or declined) process complete!

8. ESP notifies Home Office on decision, forwards interview for processing

Lifetime Returns Solutions

Instant Approval Underwriting Guaranteed Death BenefitCash Value Growth through IndexingDeath Benefit Growth through

IndexingEfficient Wealth TransferA Rated CarrierDouble Digit Street Commission to age

80

Looking for Prospects?

Look at book of ANNUITY CLIENTS!ANNUITY CLIENTS!Cash value life policy holders might

want to 1035 to LTRS not solutions?(if non guaranteed DB set to implode)

Whole life policy owners with cash above or = DB

Case Study 1: Mrs. Smith is 65 years old and has $100,000 in a Tax-

deferred Annuity with ABC Ins. Company. She is concerned that if she passes away her two sons have to pay taxes on the $30,000 of gain she has in her annuity contract. Mrs. Smith is healthy with a few minor health issues. Does not need money to live on.

Using NWL’s Lifetime Solution's she could transfer the Annuity’s tax liable DB into a Tax-Free DB of $194,635.

The $30,000 gain would be spread out over 10 years. If she should pass away prior to the 10 year period the proceeds of the contract would be paid out to her two sons tax-free.

Note: Mrs. Smith would receive a 1099 each year that the SPIA funds

the life insurance.

An Upgrade?Annuity Lifetime Returns Solutions

Death Benefit Death Benefit

$100,000 $194,635

Taxable gain $30,000 Tax Free

Net to Heirs after taxes Net to Heirs

$91,600 $194,635(Assuming 28% tax bracket)

Case Study 2: Mr. Johnson is 75 y/o. He has $150,000 in a Tax-qualified

IRA. He is concerned that if he passes away his daughter will have to pay ordinary income tax on the $150,000. Mr. Johnson has a pension and Social Security to live on.

He could transfer the IRA into Lifetime Solutions giving him a Tax-Free Death Benefit of $199,979.

Income tax on the IRA is spread out over 10 years. And his doaughter could gift him the funds to pay these taxes. If he should pass away during the SPIA’s payout phase he is no longer on the hook for any taxation as NWL is the irrevocable beneficiary of those payments.His daughter Immediately becomes the beneficiary of nearly $200 K tax free at the death of Mr Johnson!

Note: Mr. Johnson would receive a 1099 each year for the amount funding the life insurance.

An Upgrade?IRA Lifetime Returns

Solutions

Death Benefit Death Benefit

$150,000 $199,979

Taxable gain $30,000 Tax Free

Net to Heirs after taxes Net to Heirs

$108,000 $199,979(Assuming 28% tax bracket)

Lifetime Returns Select Solutions

Issue Ages 45-85

$25,000 Minimum Face

5/10 or life SPIA (NWL Irrevocable Beneficiary)

GUARANTEED DEATH BENEFIT

Indexed Linked Interest grows account value and DB

10% Liquidity

Guaranteed Table Shave….Table 5!

Make an extra $100,000

10 cases per year

Less than 1 case per month

Average case size $100,000

Avg. Comp. $11,000 per case $11,000 x $10 cases = $110,000