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Self-Owned Life and Retirement (S.O.L.A.R.) Insurance
Arrangement
Voya Indexed Universal Life-Global Choice
A Flexible Premium Adjustable Life Insurance Policy(Standard
Form #1186-09/12; may vary by state) SLR-74
Security Life of Denver Insurance Company
Designed for:
Valued Client
Presented by:
Unassigned Agent
Security Life of Denver Insurance Company
8055 East Tufts Avenue, Suite 710
Denver, CO 80237
This analysis is for illustration purposes and is not
guaranteed. It is not a
financial plan and does not address all areas of financial
concern. This
analysis is based upon information provided by the client. The
Voya Life
Companies and their agents and representatives do not give tax
or legal
advice. Please consult with your attorney, accountant, or tax
advisor for
additional information.
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Using Voya Indexed Universal Life-Global Choice withSelf-Owned
Life and Retirement (S.O.L.A.R) Insurance Arrangement
The Voya Indexed Universal Life-Global Choice product is a
flexible premium,universal life insurance product designed to
provide a death benefit and allow for cashvalues. It includes an
Indexed Strategy with 3 different crediting options where
indexcredits are linked in part to increases, if any, in outside
indexes. The S&P 500® 1 YearPoint to Point Index Strategy is
subject to an annual minimum and maximum indexcredit rate. The 2
and 5 Year Global Indexed Strategies are linked to weighted
changesin three indexes – the S&P 500® Index, the EURO STOXX
50® Index, and the HangSeng Index - and calculates an index credit
under a formula employing a look backstrategy where a portion of
the better performing two out of three indexes is used, and
issubject to a Guaranteed Minimum Interest Rate.
While the policy values may be affected by external indexes, the
policy does not directlyparticipate in any index fund, stock or
equity investments, and all policy guarantees arebased solely on
the financial strength and claims-paying ability of Security Life
ofDenver Insurance Company. The product is not a variable product
or any type ofinvestment contract. See IMPORTANT INDEX DISCLAIMERS
for moreinformation about each index.
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A Self-Owned Life And Retirement (S.O.L.A.R.) Insurance
Arrangement is an arrangement where anexecutive purchases a cash
value life insurance policy to provide death benefit protection and
to helpaccumulate funds for retirement. The arrangement can be
funded through employer contributions as IRC § 162bonuses, through
after-tax contributions from the executive, or a combination of
both. While premiumpayments must be treated as ordinary income, the
executive can borrow money from the Voya IUL-GlobalChoice life
insurance policy to pay income taxes. The executive can use the
policy as a potential source ofsupplemental retirement income, as a
source of survivorship benefits for his or her family, or both.
Key Considerations - Potential Advantages and Disadvantages
For the Executive For the Employer
· Supplemental Retirement Income 1-- Bonuses areused to purchase
a life insurance policy whichaccumulates cash values.
· Reduce "Out-of-Pocket Costs" 1-- By taking a policyloan to pay
income taxes, the S.O.L.A.R. InsuranceArrangement can reduce the
current costs to theexecutive.
· Tax-Deferred Growth -- No income tax is payablewhile money is
accumulating inside the life insurancepolicy.
· Tax-Free Income 1-- Provided the life insurancepolicy is not
structured as a modified endowmentcontract (“MEC”), the executive
will be able to attaintax-free income through a combination of
policywithdrawals and loans.
· Income Tax-Free Death Benefit 2-- The lifeinsurance policy
provides protection for theexecutive's family in the event of
death.
· No IRS Distribution Requirements or Penalties --Policy
distributions from a S.O.L.A.R. InsuranceArrangement can occur
before age 59 ½ without apremature distribution penalty from the
IRS, and thereare no required minimum distributions at age 70 ½
orthereafter.
· Immediate Taxation -- Bonus payments made by theemployer are
taxable income to the executive underIRC § 61.
· Immediate Tax Deduction -- Bonus payments made by theemployer
are income tax deductible under I.R.C. § 162 (solong as the
executive’s total compensation is consideredreasonable).
· Flexible Contributions -- There is no required schedule
forcontributions to a S.O.L.A.R. Insurance Arrangement.Premiums can
be designed to meet the changing needs ofthe employer.
· Selective Benefit -- A S.O.L.A.R. Insurance Arrangementcan be
offered on a selective basis. Unlike qualifiedretirement plans,
there is no requirement that the benefit beavailable on a
nondiscriminatory basis.
· Simple Administration -- Some nonqualified benefits canrequire
significant plan administration (maybe evenrequiring a third-party
administrator). A S.O.L.A.R.Insurance Arrangement is a potentially
simple arrangementrequiring little or no plan administration.
· No “Golden Handcuffs” -- Although the bonus may be anincentive
for the executive to remain with the company, theexecutive may
choose to keep the policy after terminationof employment.
· No Cost Recovery to the Employer -- The employer hasno rights
to policy values or death benefits asreimbursement for the
after-tax cost of the bonus.
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Valued Client Age: 45Retirement Age: 65Policy Loan Type: Select
Loans Switching to Traditional Loans in policy year 21
Summary of Values
A Self-Owned Life And Retirement (S.O.L.A.R.) Insurance
Arrangement allows your employer toprovide you with death benefit
protection for your family and a potential source of
supplementalretirement income 1 by paying premiums into an
IUL-Global Choice life insurance policy that you own.The premium
payments by your employer are treated as taxable bonuses. However,
you may borrowfunds from the IUL-Global Choice policy to pay the
income tax associated with these bonuses.Furthermore, cash values
may grow inside the policy tax-deferred, and cash value
accumulation canprovide you a source of tax-free income through a
combination of policy withdrawals and loans. 1
BENEFITS AT RETIREMENT
Based on the current assumptions used in the accompanying
illustration, your S.O.L.A.R. Insurance Arrangement is projected
to
provide total supplemental retirement benefits of : $733,845
TOTAL OUT-OF-POCKET COSTS
Based on the current assumptions used in the accompanying
illustration, your net out-of-pocket costs for this benefit is
projected
to be:
$0
DEATH BENEFIT
In addition, if you die at or before your projected retirement
age
your family would be protected in the event of your premature
death
with death benefits of at least: $627,724
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Summary of Values, continued
You should also keep in mind that the S.O.L.A.R. Insurance
Arrangement is your policy. You are theowner of the life insurance
policy at all times and you can choose when to take distributions
from thepolicy's cash values. There are no IRS requirements that
you leave cash in the policy until retirement ageor that you begin
taking policy distributions at any particular time. The policy
distribution scheduleillustrated here is just a sample of what
might happen. When and whether you take distributions from
thepolicy is entirely up to you.
COST TO EMPLOYER
Premium Bonuses Paid Over 15 Years: $300,000
Tax Savings (34% Tax):** $102,000
Net Cost to Employer: $198,000
COST TO YOU
Premiums Paid Over 15 Years: $300,000
Less Premium Bonuses Received from Employer: $300,000
Plus Tax Incurred on Premium Bonuses (35% Tax): $105,000
Less Policy Loans To Pay Tax: $105,000
Plus Interest on Loans Paid in Cash: $0
Net Cost to You: $0
SUPPLEMENTAL RETIREMENTBENEFITS FROM POLICY DISTRIBUTIONS
Age to Start Cash Value Distribution*: 65
Available Net Surrender Value at Age 65: $323,704
Annual Cash Value Distributions for 35 years: $20,967
Total Cash Value Distributions: $733,845
Cash Value at Age 121: $100,526
DEATH BENEFIT
Year 1 Net Death Benefit: $627,724
Available Net Death Benefit at Age 65: $815,501
Available Net Death Benefit at Age 121: $100,526
The values illustrated are not guaranteed. They assume that the
illustrated non-guaranteed elements of the policy will continue
unchanged forall years shown. This is not likely to occur, and
actual results may be more or less favorable than those shown. This
page must beaccompanied by the accompanying personalized policy
illustration, which includes the guaranteed elements of the policy
and other importantinformation.
*The policyowner must request all policy distributions from the
company.
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Select Loans have the risk that the amount credited to the
account value could be less than the annual interest charged on the
policy loan.Detailed additional information about policy loans is
located in the accompanying personalized policy illustration.
**IRC § 162 states a bonus paid to an employee is generally
deductible in the year paid if the employee's total compensation
(including thebonus) is reasonable and is paid for personal
services actually rendered. Compensation is regarded as
"reasonable" if it is an amount as wouldordinarily be paid for like
services by like enterprises under like circumstances. The amount
of compensation a public-held corporation maydeduct for reasonable
compensation paid to a covered employees is limited to
$1,000,000.
The tax rates illustrated are assumptions based on information
furnished by the employer and executive about their respective
federal (andstate, if included) income tax rates. The actual tax
rates experienced at any time may be more or less than those
illustrated.
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A Self-Owned Life And Retirement (S.O.L.A.R.)Insurance
Arrangement can be used by anemployer for the executive's purchase
of lifeinsurance. It is a simple and straightforwardmethod of
rewarding an executive over andabove the traditional salary and
other benefits.A S.O.L.A.R. Insurance Arrangement fundedwith a Voya
IUL-Global Choice policy can be avaluable selective benefit. It is
selectivebecause the business can legally offer it to someemployees
but not to others.
How it Works
1. The company and the executive agree that personal life
insurance protection and the related cash value accumulation
areimportant components of the executive's overall compensation
package. Depending on the relationship between theparties, this
understanding may be formalized through an optional employment
agreement.
2. The Executive acquires a Voya IUL-Global Choice policy
insuring his or her life.
3. The company makes the premium payments on this policy, which
are taxed as additional compensation to theexecutive and create a
current deduction for the employer. Optionally, the company may
provide an additional cashbonus to the executive to cover the
income tax associated with the premium payment.
4. The executive pays income taxes on the bonused premium
payments either by having the taxes due withheld bypayroll
deduction or by borrowing money from the Voya IUL-Global Choice
policy utilizing Select Loans. SelectLoans have the risk that the
amount credited to the account value could be less than the annual
interest charged on thepolicy loan. 1 The executive who receives a
bonus through payroll with taxes withheld may choose to take a Net
Loanto replace the premium amount equal to the taxes paid. The Net
Loan allows the executive to apply the loan proceedsdirectly to
their policy as an additional premium payment. Once the net loan is
processed and is on the policy, it actsjust like the current
Traditional or Select Loan.
5. The policy cash values are available to supplement the
executive's retirement income through withdrawals and loans. 1The
policy death benefit will be paid income tax free to the
executive's beneficiaries. 2
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Employer Objectives
A Self-Owned Life And Retirement (S.O.L.A.R.) Insurance
Arrangement is a simple tool employers can use to reward their
mostvalued employees. The S.O.L.A.R. Insurance Arrangement can be
offered selectively as a benefit to encourage the retention
ofexecutives the business can't afford to lose.
Tool to Recruit, Reward and Retain Key Executives
Employers today are faced with increased competition for
talented key executives. In the past, employers attracted,
motivated andretained their more talented executives by offering a
combination of salary, incentive bonus, and qualified retirement
benefits.Unfortunately, these traditional compensation strategies
fail to address several important issues:
· The cost of replacing key executives is getting higher;
· Salary increases and bonuses have short-lived impacton
long-term job satisfaction and loyalty to thebusiness.
· Salary increases and bonuses force executives to paytaxes on
income now even though the funds may not beneeded until later;
and
· ERISA makes it difficult to single out and
rewardhighly-compensated executives using qualifiedretirement
plans.
Key Considerations
Potential Advantages Potential Disadvantages
· Immediate Tax Deduction -- Bonus payments madeby the employer
are income tax deductible under IRC §162 (so long as the
executive's total compensation isconsidered reasonable.)
· Flexible Contributions -- There is no requiredschedule for
contributions to a S.O.L.A.R. InsuranceArrangement. Premiums can be
designed to meet thechanging needs of the employer.
· Selective Benefit -- A S.O.L.A.R. InsuranceArrangement can be
offered on a selective basis.Unlike qualified retirement plans,
there is norequirement that the benefit be available on
anondiscriminatory basis.
· Simple Administration -- Some nonqualified benefitscan require
significant plan administration (maybe evenrequiring a third-party
administrator). A S.O.L.A.R.Insurance Arrangement is a simple
arrangementrequiring little or no plan administration.
· No "Golden Handcuffs" -- The policy is owned andcontrolled by
the executive. Although the employerpremium bonus may be an
incentive for the executiveto remain with the company, the
executive may chooseto keep the policy after termination of
employment.
· No Cost Recovery to the Employer -- The employerhas no rights
to policy values or death benefits toreimburse for the after-tax
cost of the bonus.
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Executive Retirement Needs
A Self-Owned Life And Retirement (S.O.L.A.R.) Insurance
Arrangement offers today's executive asolution to one of life's
most intimidating challenges: preparing adequately for retirement.
Americanprofessionals expect to spend up to one-third of their
lives in retirement.* Longer retirements can beattributed to two
major factors:
1. People are generally living longer; and
2. People are retiring earlier to enjoy the fruits of their
labor.
In addition to living longer, there are several other challenges
for executives who want to preparefor a comfortable retirement:
· Social Security Shortfall -- As more and more "baby boomers"
reach retirement age and withfewer workers available to pay Social
Security taxes, government projections indicate theresources of the
system will shrink and reductions in benefits may be necessary.
· Premature Death -- Retirement security means protecting both
the executive and his or her familyduring working and retirement
years. If the executive dies prematurely, his or her loved ones
maybe left without resources needed to cover expenses now or during
retirement. A comprehensiveretirement strategy will include
protection for premature death.
· Reverse Discrimination -- Qualified retirement plans may offer
the best savings opportunity forretirement-- contributions are not
taxed to employees until withdrawn from the plan and
employercontributions are tax deductible. But there is a limit to
how much a participant can contribute to aqualified plan ($18,000
annually for 401(k), 403(b), and 457(b) plans in 2016). The effect
of thislimitation is to discriminate against highly paid
executives.
Example: A highly paid executive who participates in a qualified
retirement plan fails to receive the sameratio of before-to-after
retirement income as the average worker. For example, an employee
making$50,000 a year can contribute up to 36.00% of his or her
income to a qualified plan whereas an executivemaking $200,000 can
only contribute 9.00% of income.
Salary Maximum Pre-Tax Deferral Percentage
$50,000 36.00%
$100,000 18.00%
$150,000 12.00%
$200,000 9.00%
$250,000 7.20%
$300,000 6.00%
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A S.O.L.A.R. Insurance Arrangement provides a potential source
of supplemental retirement income thatis not affected by qualified
plan contribution limits and which also provides protection for an
executive'sloved ones in the event of premature death.
*Voya Retirement Readiness & Middle America Survey,
2004.
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Key Considerations for the Executive
Potential Advantages Potential Disadvantages
· Supplemental Retirement Income 1 -- Bonuses are used to
purchase a life insurancepolicy which accumulates cash values.
· Reduce "Out-of-Pocket Costs" 1 -- By takinga policy loan to
pay income taxes, theS.O.L.A.R. Insurance Arrangement canreduce the
current costs to the executive.
· Tax-Deferred Growth -- No income tax ispayable while money is
accumulating insidethe life insurance policy.
· Tax-Free Income 1 -- Provided the lifeinsurance policy is not
structured as amodified endownment contract ("MEC"), thebusiness
owner will be able to attain tax-freeincome through a combination
of policywithdrawals and loans.
· Income Tax-Free Death Benefit 2 -- The lifeinsurance policy
provides protection for theexecutive's family in the event of
death.
· No IRS Distribution Requirements orPenalties -- Policy
distributions from aS.O.L.A.R. Insurance Arrangement can
occurbefore age 59 ½ without a prematuredistribution penalty from
the IRS, and thereare no required minimum distributions at age70 ½
or thereafter.
· Immediate Taxation to Executive -- Bonuspayments made by the
employer are taxableincome to the executive under IRC § 61.
1 A portion of the policy’s surrender value may be available as
a source of supplemental retirement income through policy loans
andwithdrawals. Income tax free policy distributions may be
achieved by policy loans or withdrawing to the cost basis (usually
premiums paid).This assumes the policy qualifies as life insurance,
is not a modified endowment contract and is not lapsed or
surrendered with an outstandingloan. Policy loans and withdrawals
may reduce or eliminate index credits, generate an income tax
liability, reduce available surrender valueand reduce the death
benefit, or cause the policy to lapse. Additionally, loans may
limit your ability to make elections to the IndexedStrategy; if a
loan results in amounts being deducted from a block prior to its
block maturity date, no elections from the Fixed Strategy to
theIndexed Strategy will be processed in the 18 months following
the loan. Select Loans have the risk that the amount credited to
the accountvalue could be less than the annual interest charged on
the policy loan. Detailed additional information about policy loans
is located in theaccompanying personal policy illustration.
2 Death benefit proceeds from a life insurance policy are
generally income tax-free, and if properly structured, may be free
from estate tax.
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The Voya Life Companies and their agents and representatives do
not give tax or legal advice. This information is general in nature
and notcomprehensive; the applicable laws change frequently and the
strategies suggested may not be suitable for everyone. You should
seek advicefrom your tax and legal advisors regarding your
individual situation.
These materials are not intended to and cannot be used to avoid
tax penalties; and they were prepared to support the promotion or
marketingof the matter addressed in this document. Each taxpayer
should seek advice from an independent tax advisor.
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SELF-OWNED LIFE AND RETIREMENT INSURANCE ARRANGEMENT - COMBINED
VALUESSingle Bonus
The purpose of this supplemental illustration is to show a Voya
Indexed Universal Life-Global Choice policy using the Single
BonusPlan and the corresponding affect on cash value and death
benefit. The values illustrated are not guaranteed. An asterisk
indicates theyear the policy would lapse assuming that since policy
issue the minimum guaranteed interest was credited and the
maximumguaranteed costs were deducted.
Prepared for:
Employer Tax Rate: 34%
Valued Client Male 45 Preferred No Tobacco Tax Rate: 35%State of
Issue: California
Initial Total Face Amount: $621,000Initial Death Benefit Option:
2 (Increasing)Initial Annual Premium: $20,000.00Premium
Election:
HypotheticalAllocation Illustrated Index
Strategy Type Percentage Credit/Interest RateS&P 500® 1 Year
Point to Point Indexed Strategy 25% 7.28%2 Year Global Indexed
Strategy 50% 7.28%5 Year Global Indexed Strategy 25% 7.28%
Policy Loan Type: Select Loans Switching to Traditional Loans in
policy year 21
EMPLOYER COSTS EXECUTIVE COSTS EXECUTIVE BENEFITS
End Total Bonus After-Tax Executive Net Net Netof Yr Policy to
Cost Of Premium Tax on Annual Retirement Surrender Death
Yr Age Premium Executive Bonus Outlay Bonus Outlay Benefits
Value Benefit
1 46 20,000 20,000 13,200 0 7,000 0 0 489 627,7242 47 20,000
20,000 13,200 0 7,000 0 0 8,731 635,9663 48 20,000 20,000 13,200 0
7,000 0 0 16,775 644,0104 49 20,000 20,000 13,200 0 7,000 0 0
25,702 652,7515 50 20,000 20,000 13,200 0 7,000 0 0 35,820
662,627
100,000 100,000 66,000 0 35,000 0 0
6 51 20,000 20,000 13,200 0 7,000 0 0 47,018 673,5337 52 20,000
20,000 13,200 0 7,000 0 0 61,826 687,9568 53 20,000 20,000 13,200 0
7,000 0 0 79,064 703,4989 54 20,000 20,000 13,200 0 7,000 0 0
96,633 719,354
10 55 20,000 20,000 13,200 0 7,000 0 0 116,987 737,987 200,000
200,000 132,000 0 70,000 0 0
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
Adjustable Life Insurance Policy 05/11/2016 02:02 PM
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EMPLOYER COSTS EXECUTIVE COSTS EXECUTIVE BENEFITS
End Total Bonus After-Tax Executive Net Net Netof Yr Policy to
Cost Of Premium Tax on Annual Retirement Surrender Death
Yr Age Premium Executive Bonus Outlay Bonus Outlay Benefits
Value Benefit
11 56 20,000 20,000 13,200 0 7,000 0 0 136,535 757,53512 57
20,000 20,000 13,200 0 7,000 0 0 157,740 778,740
* 13 58 20,000 20,000 13,200 0 7,000 0 0 179,513 800,51314 59
20,000 20,000 13,200 0 7,000 0 0 203,111 824,11115 60 20,000 20,000
13,200 0 7,000 0 0 229,282 850,282
300,000 300,000 198,000 0 105,000 0 0
16 61 0 0 0 0 0 0 0 246,370 839,92017 62 0 0 0 0 0 0 0 263,094
828,93618 63 0 0 0 0 0 0 0 282,403 817,29219 64 0 0 0 0 0 0 0
301,236 804,95020 65 0 0 0 0 0 0 0 323,704 815,501
300,000 300,000 198,000 0 105,000 0 0
21 66 0 0 0 0 0 -20,967 20,967 329,852 803,76522 67 0 0 0 0 0
-20,967 20,967 332,213 785,60923 68 0 0 0 0 0 -20,967 20,967
332,985 765,26424 69 0 0 0 0 0 -20,967 20,967 332,931 744,10825 70
0 0 0 0 0 -20,967 20,967 331,396 721,122
300,000 300,000 198,000 0 105,000 -104,835 104,835
26 71 0 0 0 0 0 -20,967 20,967 331,448 701,35027 72 0 0 0 0 0
-20,967 20,967 330,425 680,45228 73 0 0 0 0 0 -20,967 20,967
329,126 659,78629 74 0 0 0 0 0 -20,967 20,967 326,489 638,01930 75
0 0 0 0 0 -20,967 20,967 323,877 617,182
300,000 300,000 198,000 0 105,000 -209,670 209,670
31 76 0 0 0 0 0 -20,967 20,967 321,883 598,00932 77 0 0 0 0 0
-20,967 20,967 319,701 579,28633 78 0 0 0 0 0 -20,967 20,967
316,184 559,36534 79 0 0 0 0 0 -20,967 20,967 312,139 539,50435 80
0 0 0 0 0 -20,967 20,967 307,001 524,121
300,000 300,000 198,000 0 105,000 -314,505 314,505
36 81 0 0 0 0 0 -20,967 20,967 303,096 512,82237 82 0 0 0 0 0
-20,967 20,967 297,610 499,51238 83 0 0 0 0 0 -20,967 20,967
291,253 485,29239 84 0 0 0 0 0 -20,967 20,967 283,017 468,84440 85
0 0 0 0 0 -20,967 20,967 274,150 451,794
300,000 300,000 198,000 0 105,000 -419,340 419,340
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
Adjustable Life Insurance Policy 05/11/2016 02:02 PM
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EMPLOYER COSTS EXECUTIVE COSTS EXECUTIVE BENEFITS
End Total Bonus After-Tax Executive Net Net Netof Yr Policy to
Cost Of Premium Tax on Annual Retirement Surrender Death
Yr Age Premium Executive Bonus Outlay Bonus Outlay Benefits
Value Benefit
41 86 0 0 0 0 0 -20,967 20,967 265,224 434,89142 87 0 0 0 0 0
-20,967 20,967 255,433 417,25743 88 0 0 0 0 0 -20,967 20,967
243,525 397,49444 89 0 0 0 0 0 -20,967 20,967 230,495 376,89745 90
0 0 0 0 0 -20,967 20,967 215,520 354,531
300,000 300,000 198,000 0 105,000 -524,175 524,175
46 91 0 0 0 0 0 -20,967 20,967 200,935 333,12947 92 0 0 0 0 0
-20,967 20,967 184,009 309,47348 93 0 0 0 0 0 -20,967 20,967
166,335 285,04149 94 0 0 0 0 0 -20,967 20,967 147,345 259,04150 95
0 0 0 0 0 -20,967 20,967 127,804 232,116
300,000 300,000 198,000 0 105,000 -629,010 629,010
51 96 0 0 0 0 0 -20,967 20,967 108,200 204,47452 97 0 0 0 0 0
-20,967 20,967 87,867 174,82453 98 0 0 0 0 0 -20,967 20,967 66,685
141,78854 99 0 0 0 0 0 -20,967 20,967 45,235 104,38955 100 0 0 0 0
0 -20,967 20,967 24,137 60,599
300,000 300,000 198,000 0 105,000 -733,845 733,845
56 101 0 0 0 0 0 0 0 26,581 26,58157 102 0 0 0 0 0 0 0 28,665
28,66558 103 0 0 0 0 0 0 0 30,543 30,54359 104 0 0 0 0 0 0 0 32,417
32,41760 105 0 0 0 0 0 0 0 34,654 34,654
300,000 300,000 198,000 0 105,000 -733,845 733,845
61 106 0 0 0 0 0 0 0 37,129 37,12962 107 0 0 0 0 0 0 0 39,573
39,57363 108 0 0 0 0 0 0 0 42,072 42,07264 109 0 0 0 0 0 0 0 44,720
44,72065 110 0 0 0 0 0 0 0 47,904 47,904
300,000 300,000 198,000 0 105,000 -733,845 733,845
66 111 0 0 0 0 0 0 0 51,403 51,40367 112 0 0 0 0 0 0 0 54,889
54,88968 113 0 0 0 0 0 0 0 58,433 58,43369 114 0 0 0 0 0 0 0 62,215
62,21570 115 0 0 0 0 0 0 0 66,721 66,721
300,000 300,000 198,000 0 105,000 -733,845 733,845
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EMPLOYER COSTS EXECUTIVE COSTS EXECUTIVE BENEFITS
End Total Bonus After-Tax Executive Net Net Netof Yr Policy to
Cost Of Premium Tax on Annual Retirement Surrender Death
Yr Age Premium Executive Bonus Outlay Bonus Outlay Benefits
Value Benefit
71 116 0 0 0 0 0 0 0 71,701 71,70172 117 0 0 0 0 0 0 0 76,638
76,63873 118 0 0 0 0 0 0 0 81,698 81,69874 119 0 0 0 0 0 0 0 87,058
87,05875 120 0 0 0 0 0 0 0 93,478 93,478
300,000 300,000 198,000 0 105,000 -733,845 733,845
76 121 0 0 0 0 0 0 0 100,526 100,52677 122 0 0 0 0 0 0 0 107,810
107,81078 123 0 0 0 0 0 0 0 115,235 115,23579 124 0 0 0 0 0 0 0
123,155 123,15580 125 0 0 0 0 0 0 0 132,538 132,538
300,000 300,000 198,000 0 105,000 -733,845 733,845
* Year 13, Month 10Based on the maximum guaranteed costs, the
assumed premium election, and the guaranteed minimum interest
credit rate of0.00% credited to the Indexed Strategy, and no index
credit, the policy would lapse and cannot be illustrated beyond the
yearshown. Additional premiums would be required to continue the
coverage.
The employer pays a bonus to the executive equal to the employer
paid portion of the illustrated policy premium. The bonus istax
deductible to the employer and results in taxable income to the
executive.
The tax rates illustrated are assumptions based on information
furnished by the employer and executive about their
respectivefederal (and state, if included) income tax rates. The
actual tax rates experienced at any time may be more or less than
thoseillustrated.
The Total Policy Premium illustrated is the amount of premium
which will be billed to the policyowner. It also includes
loaninterest paid by the policyowner, if any.
The Executive Premium Outlay is the amount of policy premium
paid by the executive and is not included in any bonus fromthe
employer.
The Retirement Benefits represent the amount of cash distributed
to the executive from the policy. It could include withdrawalsand
policy loans. Policy loans and partial withdrawals may vary by
state, reduce available surrender value and death benefit orcause
the policy to lapse. Generally, policy loans and partial
withdrawals will not be income taxable if there is a withdrawal
tothe cost basis (usually premiums paid), followed by policy loans
(but only if the policy qualifies as life insurance, is not
amodified endowment contract and is not lapsed or surrendered).
The values illustrated are based on the illustrated policy
interest rate, index credit rate and current cost assumptions.
The values illustrated are not guaranteed. They assume that the
illustrated non-guaranteed elements of the policy will
continueunchanged for all years shown. This is not likely to occur,
and actual results may be more or less favorable than those
shown.This page must be accompanied by the basic Policy
Illustration, which includes the guaranteed elements of the policy
and otherimportant information.
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
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Select Loans have the risk that the amount credited to the
account value could be less than the annual interest charged on
thepolicy loan. Detailed additional information about policy loans
is located in the accompanying personalized policy
illustration.
The net death benefit will generally be received income tax
free. The net death benefit will be subject to estate tax at the
deathof the insured, if the insured was the owner of the policy at
death, or if the insured possessed any ownership rights in the
policywithin three years of death. Loans and withdrawals will
reduce the policy's death benefit and available cash values.
The Voya Life Companies and their agents and representatives do
not give tax or legal advice. This information is general innature
and not comprehensive; the applicable laws change frequently and
the strategies suggested may not be suitable foreveryone. You
should seek advice from your tax and legal advisors regarding your
individual situation.
These materials are not intended to and cannot be used to avoid
tax penalties; and they were prepared to support the promotionor
marketing of the matter addressed in this document. Each taxpayer
should seek advice from an independent tax advisor.
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
Adjustable Life Insurance Policy 05/11/2016 02:02 PM
Designed for Valued Client Page 17 of 76
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EMPLOYER LEDGERSingle Bonus
The purpose of this supplemental illustration is to show a Voya
Indexed Universal Life-Global Choice policy using the Single
BonusPlan and the corresponding affect to the Employer.
Prepared for:
Employer Tax Rate: 34%
Valued Client Tax Rate: 35%State of Issue: California
End Total Afterof Yr Policy Bonus Tax Tax
Yr Age Premiums Paid Savings Cost
1 46 20,000 20,000 6,800 13,2002 47 20,000 20,000 6,800 13,2003
48 20,000 20,000 6,800 13,2004 49 20,000 20,000 6,800 13,2005 50
20,000 20,000 6,800 13,200
100,000 100,000 34,000 66,000
6 51 20,000 20,000 6,800 13,2007 52 20,000 20,000 6,800 13,2008
53 20,000 20,000 6,800 13,2009 54 20,000 20,000 6,800 13,200
10 55 20,000 20,000 6,800 13,200 200,000 200,000 68,000
132,000
11 56 20,000 20,000 6,800 13,20012 57 20,000 20,000 6,800
13,20013 58 20,000 20,000 6,800 13,20014 59 20,000 20,000 6,800
13,20015 60 20,000 20,000 6,800 13,200
300,000 300,000 102,000 198,000
16 61 0 0 0 017 62 0 0 0 018 63 0 0 0 019 64 0 0 0 020 65 0 0 0
0
300,000 300,000 102,000 198,000
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
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End Total Afterof Yr Policy Bonus Tax Tax
Yr Age Premiums Paid Savings Cost
21 66 0 0 0 022 67 0 0 0 023 68 0 0 0 024 69 0 0 0 025 70 0 0 0
0
300,000 300,000 102,000 198,000
26 71 0 0 0 027 72 0 0 0 028 73 0 0 0 029 74 0 0 0 030 75 0 0 0
0
300,000 300,000 102,000 198,000
31 76 0 0 0 032 77 0 0 0 033 78 0 0 0 034 79 0 0 0 035 80 0 0 0
0
300,000 300,000 102,000 198,000
36 81 0 0 0 037 82 0 0 0 038 83 0 0 0 039 84 0 0 0 040 85 0 0 0
0
300,000 300,000 102,000 198,000
41 86 0 0 0 042 87 0 0 0 043 88 0 0 0 044 89 0 0 0 045 90 0 0 0
0
300,000 300,000 102,000 198,000
46 91 0 0 0 047 92 0 0 0 048 93 0 0 0 049 94 0 0 0 050 95 0 0 0
0
300,000 300,000 102,000 198,000
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
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End Total Afterof Yr Policy Bonus Tax Tax
Yr Age Premiums Paid Savings Cost
51 96 0 0 0 052 97 0 0 0 053 98 0 0 0 054 99 0 0 0 055 100 0 0 0
0
300,000 300,000 102,000 198,000
56 101 0 0 0 057 102 0 0 0 058 103 0 0 0 059 104 0 0 0 060 105 0
0 0 0
300,000 300,000 102,000 198,000
61 106 0 0 0 062 107 0 0 0 063 108 0 0 0 064 109 0 0 0 065 110 0
0 0 0
300,000 300,000 102,000 198,000
66 111 0 0 0 067 112 0 0 0 068 113 0 0 0 069 114 0 0 0 070 115 0
0 0 0
300,000 300,000 102,000 198,000
71 116 0 0 0 072 117 0 0 0 073 118 0 0 0 074 119 0 0 0 075 120 0
0 0 0
300,000 300,000 102,000 198,000
76 121 0 0 0 077 122 0 0 0 078 123 0 0 0 079 124 0 0 0 080 125 0
0 0 0
300,000 300,000 102,000 198,000
The employer pays a bonus to the executive equal to the employer
paid portion of the illustrated policy premium. The bonus is
taxdeductible to the employer and results in taxable income to the
executive.
The tax rates illustrated are assumptions based on information
furnished by the employer and executive about their respective
federal(and state, if included) income tax rates. The actual tax
rates experienced at any time may be more or less than those
illustrated.
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
Adjustable Life Insurance Policy 05/11/2016 02:02 PM
Designed for Valued Client Page 20 of 76
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-
The Voya Life Companies and their agents and representatives do
not give tax or legal advice. This information is general in nature
andnot comprehensive; the applicable laws change frequently and the
strategies suggested may not be suitable for everyone. You
shouldseek advice from your tax and legal advisors regarding your
individual situation.
These materials are not intended to and cannot be used to avoid
tax penalties; and they were prepared to support the promotion
ormarketing of the matter addressed in this document. Each taxpayer
should seek advice from an independent tax advisor.
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
Adjustable Life Insurance Policy 05/11/2016 02:02 PM
Designed for Valued Client Page 21 of 76
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EXECUTIVE LEDGERSingle Bonus
The purpose of this supplemental illustration is to show a Voya
Indexed Universal Life-Global Choice policy using the Single
BonusPlan and the corresponding affect on cash value and death
benefit.
Prepared for:
Employer Tax Rate: 34%
Valued Client Male 45 Preferred No Tobacco Tax Rate: 35%State of
Issue: California
Initial Total Face Amount: $621,000Initial Death Benefit Option:
2 (Increasing)Initial Annual Premium: $20,000.00Premium
Election:
HypotheticalAllocation Illustrated Index
Strategy Type Percentage Credit/Interest RateS&P 500® 1 Year
Point to Point Indexed Strategy 25% 7.28%2 Year Global Indexed
Strategy 50% 7.28%5 Year Global Indexed Strategy 25% 7.28%
Policy Loan Type: Select Loans Switching to Traditional Loans in
policy year 21
EmployerEnd Total Bonus Policy Net Net
of Yr Policy to Tax on Value Net Annual Surrender DeathYr Age
Premium Executive Bonus Distributed Outlay Value Benefit
1 46 20,000 20,000 7,000 7,000 0 489 627,7242 47 20,000 20,000
7,000 7,000 0 8,731 635,9663 48 20,000 20,000 7,000 7,000 0 16,775
644,0104 49 20,000 20,000 7,000 7,000 0 25,702 652,7515 50 20,000
20,000 7,000 7,000 0 35,820 662,627
100,000 100,000 35,000 35,000 0
6 51 20,000 20,000 7,000 7,000 0 47,018 673,5337 52 20,000
20,000 7,000 7,000 0 61,826 687,9568 53 20,000 20,000 7,000 7,000 0
79,064 703,4989 54 20,000 20,000 7,000 7,000 0 96,633 719,354
10 55 20,000 20,000 7,000 7,000 0 116,987 737,987 200,000
200,000 70,000 70,000 0
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
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EmployerEnd Total Bonus Policy Net Net
of Yr Policy to Tax on Value Net Annual Surrender DeathYr Age
Premium Executive Bonus Distributed Outlay Value Benefit
11 56 20,000 20,000 7,000 7,000 0 136,535 757,53512 57 20,000
20,000 7,000 7,000 0 157,740 778,74013 58 20,000 20,000 7,000 7,000
0 179,513 800,51314 59 20,000 20,000 7,000 7,000 0 203,111
824,11115 60 20,000 20,000 7,000 7,000 0 229,282 850,282
300,000 300,000 105,000 105,000 0
16 61 0 0 0 0 0 246,370 839,92017 62 0 0 0 0 0 263,094 828,93618
63 0 0 0 0 0 282,403 817,29219 64 0 0 0 0 0 301,236 804,95020 65 0
0 0 0 0 323,704 815,501
300,000 300,000 105,000 105,000 0
21 66 0 0 0 20,967 -20,967 329,852 803,76522 67 0 0 0 20,967
-20,967 332,213 785,60923 68 0 0 0 20,967 -20,967 332,985 765,26424
69 0 0 0 20,967 -20,967 332,931 744,10825 70 0 0 0 20,967 -20,967
331,396 721,122
300,000 300,000 105,000 209,835 -104,835
26 71 0 0 0 20,967 -20,967 331,448 701,35027 72 0 0 0 20,967
-20,967 330,425 680,45228 73 0 0 0 20,967 -20,967 329,126 659,78629
74 0 0 0 20,967 -20,967 326,489 638,01930 75 0 0 0 20,967 -20,967
323,877 617,182
300,000 300,000 105,000 314,670 -209,670
31 76 0 0 0 20,967 -20,967 321,883 598,00932 77 0 0 0 20,967
-20,967 319,701 579,28633 78 0 0 0 20,967 -20,967 316,184 559,36534
79 0 0 0 20,967 -20,967 312,139 539,50435 80 0 0 0 20,967 -20,967
307,001 524,121
300,000 300,000 105,000 419,505 -314,505
36 81 0 0 0 20,967 -20,967 303,096 512,82237 82 0 0 0 20,967
-20,967 297,610 499,51238 83 0 0 0 20,967 -20,967 291,253 485,29239
84 0 0 0 20,967 -20,967 283,017 468,84440 85 0 0 0 20,967 -20,967
274,150 451,794
300,000 300,000 105,000 524,340 -419,340
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
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EmployerEnd Total Bonus Policy Net Net
of Yr Policy to Tax on Value Net Annual Surrender DeathYr Age
Premium Executive Bonus Distributed Outlay Value Benefit
41 86 0 0 0 20,967 -20,967 265,224 434,89142 87 0 0 0 20,967
-20,967 255,433 417,25743 88 0 0 0 20,967 -20,967 243,525 397,49444
89 0 0 0 20,967 -20,967 230,495 376,89745 90 0 0 0 20,967 -20,967
215,520 354,531
300,000 300,000 105,000 629,175 -524,175
46 91 0 0 0 20,967 -20,967 200,935 333,12947 92 0 0 0 20,967
-20,967 184,009 309,47348 93 0 0 0 20,967 -20,967 166,335 285,04149
94 0 0 0 20,967 -20,967 147,345 259,04150 95 0 0 0 20,967 -20,967
127,804 232,116
300,000 300,000 105,000 734,010 -629,010
51 96 0 0 0 20,967 -20,967 108,200 204,47452 97 0 0 0 20,967
-20,967 87,867 174,82453 98 0 0 0 20,967 -20,967 66,685 141,78854
99 0 0 0 20,967 -20,967 45,235 104,38955 100 0 0 0 20,967 -20,967
24,137 60,599
300,000 300,000 105,000 838,845 -733,845
56 101 0 0 0 0 0 26,581 26,58157 102 0 0 0 0 0 28,665 28,66558
103 0 0 0 0 0 30,543 30,54359 104 0 0 0 0 0 32,417 32,41760 105 0 0
0 0 0 34,654 34,654
300,000 300,000 105,000 838,845 -733,845
61 106 0 0 0 0 0 37,129 37,12962 107 0 0 0 0 0 39,573 39,57363
108 0 0 0 0 0 42,072 42,07264 109 0 0 0 0 0 44,720 44,72065 110 0 0
0 0 0 47,904 47,904
300,000 300,000 105,000 838,845 -733,845
66 111 0 0 0 0 0 51,403 51,40367 112 0 0 0 0 0 54,889 54,88968
113 0 0 0 0 0 58,433 58,43369 114 0 0 0 0 0 62,215 62,21570 115 0 0
0 0 0 66,721 66,721
300,000 300,000 105,000 838,845 -733,845
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
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EmployerEnd Total Bonus Policy Net Net
of Yr Policy to Tax on Value Net Annual Surrender DeathYr Age
Premium Executive Bonus Distributed Outlay Value Benefit
71 116 0 0 0 0 0 71,701 71,70172 117 0 0 0 0 0 76,638 76,63873
118 0 0 0 0 0 81,698 81,69874 119 0 0 0 0 0 87,058 87,05875 120 0 0
0 0 0 93,478 93,478
300,000 300,000 105,000 838,845 -733,845
76 121 0 0 0 0 0 100,526 100,52677 122 0 0 0 0 0 107,810
107,81078 123 0 0 0 0 0 115,235 115,23579 124 0 0 0 0 0 123,155
123,15580 125 0 0 0 0 0 132,538 132,538
300,000 300,000 105,000 838,845 -733,845
The employer pays a bonus to the executive equal to the employer
paid portion of the illustrated policy premium. The bonus is
taxdeductible to the employer and results in taxable income to the
executive.
The tax rates illustrated are assumptions based on information
furnished by the employer and executive about their respective
federal(and state, if included) income tax rates. The actual tax
rates experienced at any time may be more or less than those
illustrated.
The Total Policy Premium illustrated is the amount of premium
which will be billed to the policyowner. It also includes loan
interestpaid by the policyowner, if any.
The Policy Value Distributed represents the amount of cash
distributed to the executive from the policy. It could include
withdrawalsand policy loans. Policy loans and partial withdrawals
may vary by state, reduce available surrender value and death
benefit or cause thepolicy to lapse. Generally, policy loans and
partial withdrawals will not be income taxable if there is a
withdrawal to the cost basis(usually premiums paid), followed by
policy loans (but only if the policy qualifies as life insurance,
is not a modified endowmentcontract and is not lapsed or
surrendered).
The values illustrated are based on the illustrated policy
interest rate, index credit rate and current cost assumptions.
The values illustrated are not guaranteed. They assume that the
illustrated non-guaranteed elements of the policy will
continueunchanged for all years shown. This is not likely to occur,
and actual results may be more or less favorable than those shown.
This pagemust be accompanied by the basic Policy Illustration,
which includes the guaranteed elements of the policy and other
importantinformation.
Select Loans have the risk that the amount credited to the
account value could be less than the annual interest charged on the
policy loan.Detailed additional information about policy loans is
located in the accompanying personalized policy illustration.
The net death benefit will generally be received income tax
free. The net death benefit will be subject to estate tax at the
death of theinsured, if the insured was the owner of the policy at
death, or if the insured possessed any ownership rights in the
policy within threeyears of death. Loans and withdrawals will
reduce the policy's death benefit and available cash values.
The Voya Life Companies and their agents and representatives do
not give tax or legal advice. This information is general in nature
andnot comprehensive; the applicable laws change frequently and the
strategies suggested may not be suitable for everyone. You
shouldseek advice from your tax and legal advisors regarding your
individual situation.
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
Adjustable Life Insurance Policy 05/11/2016 02:02 PM
Designed for Valued Client Page 25 of 76
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-
These materials are not intended to and cannot be used to avoid
tax penalties; and they were prepared to support the promotion
ormarketing of the matter addressed in this document. Each taxpayer
should seek advice from an independent tax advisor.
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
Adjustable Life Insurance Policy 05/11/2016 02:02 PM
Designed for Valued Client Page 26 of 76
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You choose with Voya Indexed Universal Life-Global Choice!
The power of Voya Indexed Universal Life-Global Choice is the
valuable death benefit protection supported by policy cash
valuescalculated under a Fixed Strategy and your choice of three
Indexed Strategies. You have the option to choose any of these
strategies or acombination of them to accumulate cash values and
provide the protection you need.
Fixed Strategy · Current fixed interest rate is 4.25% effective
for 12 months. · At each policy anniversary, the rate may be
adjusted for the next year. · Interest rate credited will never be
less than 2.00%
Indexed Strategies
S&P 500® 1 Year Point to Point Indexed Strategy · Simple
strategy with a short time horizon · Annual reset so index credits,
if any, are locked in every year · Based on a U. S. index that is
easily tracked · 100% current participation rate (Guaranteed
Minimum!); 13% current cap
2 Year Global Indexed Strategy · Built in global diversification
by using three indexes from around the world · Only the best
two-out-of-three indexes are used in interest crediting · Benefit
of a multi-index strategy, but with ability to lock in index
credits, if any, every two years vs. five years · 65% current
participation rate and no current cap on index credits
5 Year Global Indexed Strategy · Built in global diversification
by using three indexes from around the world · Only the best
two-out-of-three indexes are used in interest crediting · Has
potential to produce higher returns over long time horizon · 90%
current participation rate and no current cap on index credits
No matter what strategy or combination of strategies you select,
you can choose with confidence knowing that all of them have a
0%Guaranteed Minimum Interest Rate. Meaning even if the Indexes
have negative performance the resulting Index Credit Rate will
neverbe less than 0%.
Experience the Power of Choice 05/11/2016 02:02 PMLife insurance
offered by Security Life of Denver Insurance Company Page 27 of
76
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Global Index Strategies
The Global Index Strategies are based on the finishing positions
of the following three indexes:
S&P 500® Index (S&P 500®) - An index of stock
performance of 500 publicly traded companies. It does not
reflectdividends payable on the underlying stocks.
EURO STOXX 50® Index (EURO STOXX 50®) - An index of blue-chip
stocks that are represented by 50 stocks coveringthe largest sector
leaders in the EURO STOXX 50® Index. It does not reflect dividends
payable on the underlying stocks.
Hang Seng Index - An index of the largest and most liquid stocks
listed on the Stock Exchange of Hong Kong. It does notreflect
dividends payable on the underlying stocks.
See the Explanation of Policy Illustration to learn more about
how the Indexed Strategy works and the IMPORTANT INDEXDISCLAIMERS
for more information about each index.
The Value of Hindsight
Hindsight, as they say, is 20/20 and quite valuable. Voya
Indexed Universal Life-Global Choice with both a two-year and a
five yearlook-back period is designed to provide the benefit of
this hindsight. It calculates the index credit under a formula
using a weightedportion of each index change rate, where the
weighting favors the two better performing of three indexes, as
follows:
· 75% of the highest index change rate, plus · 25% of the next
highest index change rate, plus · 0% of the lowest index change
rate
In essence, at the end of each two or five-year period, the
index change rate for each index is determined and then weighted,
with theresult subject to an index cap and a minimum of 0%. Please
refer to the Indexed Strategy section for more information on how
the indexchange rate is determined. This means that a portion of
the top two indexes are used in the calculation and the index with
the lowestchange rate is not used. There is no need to try and
predict the better performing indexes in the beginning. The result
of this calculationis subject to a participation rate. Accordingly,
once the index change rates are determined for each of the three
indexes, the index creditcan then be calculated for that block.
This continues for each 2 or 5 year block as long as the policy
remains in force. For each block,the participation rate and the
index cap are set on a block’s start date and are guaranteed not to
change for that block. The policy must bein force when a block
matures to receive any index credit.
Please Note: While policy values may be affected by external
indexes, this policy is not an investment in the stock market and
does notparticipate in any index fund, stock or equity investments.
Voya Indexed Universal Life-Global Choice is not a variable product
orany type of investment contract.
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Stock indices can be volatile. The graphs below show the number
of times each of the Indexes has finished 1st, 2nd and 3rd
forhypothetical two-year and five-year blocks maturing during the
period indicated. The 2 Year and 5 Year Global Indexed
Strategiesattempt to minimize that volatility by using three
indexes under a weighted formula.
These unmanaged indexes are not intended to represent specific
investments. This product is not a variable contract or any type of
investment contractwhere cash value is based upon performance of
client selected variable investment options. While your policy
values may be affected by externalindexes, your policy is not an
investment in the stock market and does not directly participate in
any index fund, stock or equity investment. Past indexperformance
does not represent future performance of these indexes. The
finishing positions for each index were determined based on the
changes inthe value of each hypothetical index block between the
block maturity date and the same date two or five years earlier.
The percentages shown reflectthe number of times that each index
had the highest (1st place), second highest (2nd place), and lowest
(3rd place) 2-year or 5-year index change rateduring the period.
The data provided provides only a comparison of the indexes to each
other and provides no information relative to the performanceof the
indexes during the period shown.
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Strategy Results - Block Maturity Historical ReturnsThe
following graphs were developed using historical index data and
current non-guaranteed index parameters that are reflected belowfor
three indexed strategies and the hindsight index crediting
methodology used in the Voya Indexed Universal Life-Global
Choicepolicy. The uneven line reflects what the annualized index
credit rate could have been for each index strategy based on the
blockmaturity date shown and the indexed strategy assumptions
listed below.
S&P 500® 1 Year Point to Point
Simple Strategy - Blocks Mature Annually
Guaranteed Minimum Interest Rate: 0%
Current Index Cap: 13%
Current Participation Rate: 100%
2 Year Global
Diversification – Blocks Mature Every Two Years
Guaranteed Minimum Interest Rate: 0%
Current Index Cap: Unlimited
Current Participation Rate: 65%
5 Year Global
Diversification – Blocks Mature Every Five Years
Guaranteed Minimum Interest Rate: 0%
Current Index Cap: Unlimited
Current Participation Rate: 90%
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Long term strategy results – 20 Year Historical ReturnsThe
following graphs show the hypothetical annualized returns over 20
years periods ending in the month and year shown assumingsequential
hypothetical index blocks for each indexed strategy. Percentiles
are used to give some idea of the variability of historicalindex
returns when measured in 20 year segments within a 35 year overall
timeframe. For example, the line drawn at the 80th percentileon
each graph shows the point at which approximately 80% of the 20
year segment results calculated over this 35 year period equaled
orexceeded that annualized rate over the period shown. Note that
due to the significant overlap in measurement periods used
indeveloping 20 year returns, historical percentile returns should
not be used to provide any confidence concerning the stability
orlevel of future index crediting rates. Nor does the percentile
information reflect the higher volatility returns likely to
beexperienced on individual blocks.
Historical Percentile
100th
90th
80th
70th
60th
50th
Average
Rate
6.67%
7.43%
7.64%
7.81%
7.97%
8.11%
8.11%
Historical Percentile
100th
90th
80th
70th
60th
50th
Average
Rate
7.72%
9.52%
10.59%
11.13%
11.62%
12.09%
12.20%
Historical Percentile
100th
90th
80th
70th
60th
50th
Average
Rate
7.62%
9.35%
10.14%
10.87%
12.08%
12.81%
12.58%
These rates are based on historical information and should not
be used as an indication of future performance.
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LEDGER ILLUSTRATION
Premiums are paid at the beginning of the year. The Cash Value
and Death Benefit are shown as of the end of each policy year.
Prepared for:
Valued Client Male 45 Preferred No TobaccoState of Issue:
CaliforniaAssumed Policy Date: 05/11/2016
Initial Stated Death Benefit: $621,000Initial Death Benefit
Option: 2 (Increasing)Initial Annual Premium: $20,000.00Premium
Election:
HypotheticalAllocation Illustrated Index
Strategy Type Percentage Credit/Interest RateS&P 500® 1 Year
Point to Point Indexed Strategy 25% 7.28%2 Year Global Indexed
Strategy 50% 7.28%5 Year Global Indexed Strategy 25% 7.28%
Policy Loan Type: Select Loans Switching to Traditional Loans in
policy year 21
Rider Benefits Included:
Accelerated Benefit Rider
NON-GUARANTEED ILLUSTRATED
End Total Net Netof Yr Annual Annual Annual Loan Net Account
Surrender Death
Yr Age Premium Withdrawal Loan Interest Outlay Value Value
Benefit
1 46 20,000 0 -7,000 0 13,000 14,144 489 627,7242 47 20,000 0
-7,420 420 13,000 30,251 8,731 635,9663 48 20,000 0 -7,865 865
13,000 46,632 16,775 644,0104 49 20,000 0 -8,337 1,337 13,000
64,210 25,702 652,7515 50 20,000 0 -8,837 1,837 13,000 83,454
35,820 662,627
100,000 0 -39,460 4,460 65,000
6 51 20,000 0 -9,368 2,368 13,000 104,290 47,018 673,5337 52
20,000 0 -9,930 2,930 13,000 129,238 61,826 687,9568 53 20,000 0
-10,525 3,525 13,000 155,937 79,064 703,4989 54 20,000 0 -11,157
4,157 13,000 183,619 96,633 719,354
10 55 20,000 0 -11,826 4,826 13,000 214,788 116,987 737,987
200,000 0 -92,266 22,266 130,000
11 56 20,000 0 -12,536 5,536 13,000 247,624 136,535 757,53512 57
20,000 0 -13,288 6,288 13,000 282,915 157,740 778,74013 58 20,000 0
-14,085 7,085 13,000 319,619 179,513 800,51314 59 20,000 0 -14,931
7,931 13,000 359,043 203,111 824,11115 60 20,000 0 -15,826 8,826
13,000 401,990 229,282 850,282
300,000 0 -162,932 57,932 195,000
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NON-GUARANTEED ILLUSTRATED
End Total Net Netof Yr Annual Annual Annual Loan Net Account
Surrender Death
Yr Age Premium Withdrawal Loan Interest Outlay Value Value
Benefit
16 61 0 0 -9,776 9,776 0 429,440 246,370 839,92017 62 0 0
-10,362 10,362 0 457,148 263,094 828,93618 63 0 0 -10,984 10,984 0
488,101 282,403 817,29219 64 0 0 -11,643 11,643 0 519,275 301,236
804,95020 65 0 0 -12,342 12,342 0 554,826 323,704 815,501
300,000 0 -218,040 113,040 195,000
21 66 0 -20,967 -13,082 13,082 -20,967 565,596 329,852 803,76522
67 0 -20,967 -4,622 4,622 -20,967 572,672 332,213 785,60923 68 0
-20,967 -4,715 4,715 -20,967 578,253 332,985 765,26424 69 0 -20,967
-4,809 4,809 -20,967 583,105 332,931 744,10825 70 0 -20,967 -4,905
4,905 -20,967 586,574 331,396 721,122
300,000 -104,835 -250,174 145,174 90,165
26 71 0 -20,967 -5,004 5,004 -20,967 591,729 331,448 701,35027
72 0 -20,967 -5,104 5,104 -20,967 595,912 330,425 680,45228 73 0
-20,967 -5,206 5,206 -20,967 599,923 329,126 659,78629 74 0 -20,967
-5,310 5,310 -20,967 602,701 326,489 638,01930 75 0 -20,967 -5,416
5,416 -20,967 605,614 323,877 617,182
300,000 -209,670 -276,213 171,213 -14,670
31 76 0 -20,967 -5,524 5,524 -20,967 609,254 321,883 598,00932
77 0 -20,967 -5,635 5,635 -20,967 612,820 319,701 579,28633 78 0
-20,967 -5,747 5,747 -20,967 615,165 316,184 559,36534 79 0 -20,967
-5,862 5,862 -20,967 617,100 312,139 539,50435 80 0 -6,462 -20,485
5,980 -20,967 632,856 307,001 524,121
300,000 -300,000 -319,466 199,961 -119,505
36 81 0 0 -27,356 6,389 -20,967 656,854 303,096 512,82237 82 0 0
-27,903 6,936 -20,967 679,830 297,610 499,51238 83 0 0 -28,461
7,494 -20,967 702,504 291,253 485,29239 84 0 0 -29,031 8,064
-20,967 723,879 283,017 468,84440 85 0 0 -29,611 8,644 -20,967
745,216 274,150 451,794
300,000 -300,000 -461,829 237,489 -224,340
41 86 0 0 -30,204 9,237 -20,967 767,098 265,224 434,89142 87 0 0
-30,808 9,841 -20,967 788,730 255,433 417,25743 88 0 0 -31,424
10,457 -20,967 808,874 243,525 397,49444 89 0 0 -32,052 11,085
-20,967 828,537 230,495 376,89745 90 0 0 -32,693 11,726 -20,967
846,909 215,520 354,531
300,000 -300,000 -619,010 289,835 -329,175
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
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NON-GUARANTEED ILLUSTRATED
End Total Net Netof Yr Annual Annual Annual Loan Net Account
Surrender Death
Yr Age Premium Withdrawal Loan Interest Outlay Value Value
Benefit
46 91 0 0 -33,347 12,380 -20,967 866,339 200,935 333,12947 92 0
0 -34,014 13,047 -20,967 884,108 184,009 309,47348 93 0 0 -34,694
13,727 -20,967 901,821 166,335 285,04149 94 0 0 -35,388 14,421
-20,967 918,928 147,345 259,04150 95 0 0 -36,096 15,129 -20,967
936,205 127,804 232,116
300,000 -300,000 -792,550 358,540 -434,010
51 96 0 0 -36,818 15,851 -20,967 954,155 108,200 204,47452 97 0
0 -37,554 16,587 -20,967 972,128 87,867 174,82453 98 0 0 -38,305
17,338 -20,967 990,017 66,685 141,78854 99 0 0 -39,072 18,105
-20,967 1,008,420 45,235 104,38955 100 0 0 -39,853 18,886 -20,967
1,027,972 24,137 60,599
300,000 -300,000 -984,152 445,307 -538,845
56 101 0 0 -19,683 19,683 0 1,050,493 26,581 26,58157 102 0 0
-20,077 20,077 0 1,073,055 28,665 28,66558 103 0 0 -20,478 20,478 0
1,095,821 30,543 30,54359 104 0 0 -20,888 20,888 0 1,119,000 32,417
32,41760 105 0 0 -21,306 21,306 0 1,142,969 34,654 34,654
300,000 -300,000 -1,086,583 547,738 -538,845
61 106 0 0 -21,732 21,732 0 1,167,610 37,129 37,12962 107 0 0
-22,166 22,166 0 1,192,664 39,573 39,57363 108 0 0 -22,610 22,610 0
1,218,225 42,072 42,07264 109 0 0 -23,062 23,062 0 1,244,396 44,720
44,72065 110 0 0 -23,523 23,523 0 1,271,574 47,904 47,904
300,000 -300,000 -1,199,676 660,831 -538,845
66 111 0 0 -23,994 23,994 0 1,299,546 51,403 51,40367 112 0 0
-24,473 24,473 0 1,327,994 54,889 54,88968 113 0 0 -24,963 24,963 0
1,357,001 58,433 58,43369 114 0 0 -25,462 25,462 0 1,386,754 62,215
62,21570 115 0 0 -25,971 25,971 0 1,417,751 66,721 66,721
300,000 -300,000 -1,324,539 785,694 -538,845
71 116 0 0 -26,491 26,491 0 1,449,752 71,701 71,70172 117 0 0
-27,021 27,021 0 1,482,250 76,638 76,63873 118 0 0 -27,561 27,561 0
1,515,421 81,698 81,69874 119 0 0 -28,112 28,112 0 1,549,456 87,058
87,05875 120 0 0 -28,674 28,674 0 1,585,124 93,478 93,478
300,000 -300,000 -1,462,398 923,553 -538,845
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NON-GUARANTEED ILLUSTRATED
End Total Net Netof Yr Annual Annual Annual Loan Net Account
Surrender Death
Yr Age Premium Withdrawal Loan Interest Outlay Value Value
Benefit
76 121 0 0 -29,248 29,248 0 1,622,005 100,526 100,52677 122 0 0
-29,833 29,833 0 1,659,719 107,810 107,81078 123 0 0 -30,430 30,430
0 1,698,182 115,235 115,23579 124 0 0 -31,038 31,038 0 1,737,761
123,155 123,15580 125 0 0 -31,659 31,659 0 1,779,436 132,538
132,538
300,000 -300,000 -1,614,606 1,075,761 -538,845
The values illustrated are based on the illustrated policy
interest rate, index credit rate and current cost assumptions.
The values illustrated are not guaranteed. They assume that the
illustrated non-guaranteed elements of the policy will
continueunchanged for all years shown. This is not likely to occur,
and actual results may be more or less favorable than those shown.
This pagemust be accompanied by the basic Policy Illustration,
which includes the guaranteed elements of the policy and other
importantinformation.
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EXPLANATION OF POLICY ILLUSTRATIONA Narrative Summary
Policy Introduction: The Voya Indexed Universal Life-Global
Choice product illustrated on the accompanyingpages is a flexible
premium adjustable life insurance policy which can provide a
lifetime
death benefit. The death benefit is adjustable and may depend on
the account value in the
policy. The account value is based on the timing and amount of
your premiums, policy and
rider charges, the index credit rate, index credit, if any, and
the interest credited to the policy.
This illustration assumes all premiums are received by the
Company on the first day of each
illustrated year. This product is offered by Security Life of
Denver Insurance Company, a
member of the Voya® family of companies, and is filed as Policy
Form Series #1186-09/12
(which may vary by state).
This product has two strategies: a Fixed Strategy and an Indexed
Strategy. Premiums paid,
minus any premium expense charges (the net premiums) are
initially credited to the Fixed
Strategy. Thereafter, amounts in the Fixed Strategy can be
elected to the Indexed Strategy.
The Indexed Strategy is made up of three strategies: S&P500®
1 Year Point to Point, 2 Year
Global and 5 Year Global. This illustration assumes 25% of the
premium is elected to the
S&P 500® 1 Year Point to Point Indexed Strategy, 50% of the
premium is elected to the 2
Year Global Indexed Strategy, and 25% of the premium is elected
to the 5 Year Global
Indexed Strategy. This product is not a variable contract or any
type of investment contract
where cash value is based upon performance of client selected
variable investment options.
While your policy values may be affected by external indexes,
your policy is not an
investment in the stock market and does not directly participate
in any index fund, stock or
equity investment. This product is not meant to be an investment
vehicle. Voya Indexed
Universal Life-Global Choice is not a variable product or any
type of investment
contract.
This illustration is not the actual life insurance policy you
will receive nor is it part of the
contract. This illustration is intended only to show you how the
life insurance policy might
react based on the interest rate, index credit rate, index
credit, if any, and premium payment
assumptions contained in the illustration. Due to your
individual circumstances, your policy,
upon issue, may differ from what is illustrated. In that event,
the terms of your policy control.
Following is a description of some of the key terms and features
of this life insurance product.
Guaranteed Values:0.00% Guaranteed Minimum
Interest Rate Indexed Strategy
The guaranteed values are the minimum values that will accrue,
assuming you pay the
premiums as illustrated. These values are calculated based on
the guaranteed minimum
interest rate of 0.00% on the Indexed Strategy, no index credit,
the guaranteed maximum cost
of insurance rates, and the guaranteed maximum expenses in the
policy.
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Non-Guaranteed Values:
Illustrated Hypothetical
Annualized Index Credit Rate(s):
7.28% S&P 500® 1 Year
Point to Point
7.28% 2 Year Global
7.28% 5 Year Global
The non-guaranteed values are based on the illustrated
hypothetical index credit rate(s),
current index cap(s) and participation rate(s), current cost of
insurance rates, and current
expense charges. The actual amount credited to the policy will
vary based on the strategy
described below. The cost of insurance rates, policy expense
charges, index cap(s), index
credit(s), participation rate(s), and the interest crediting
rate are subject to change. This
illustration assumes that the illustrated non-guaranteed
elements will continue
unchanged for all years shown. This is not likely to occur, and
actual results will be
more or less favorable than those shown. Security Life of Denver
Insurance Company
reserves the right to change the non-guaranteed benefits and
values of this illustration.
Alternate Scenario:
Illustrated Alternate Scenario
Hypothetical Annualized Index
Credit Rate(s):
4.25% S&P 500® 1 Year
Point to Point
4.25% 2 Year Global
4.25% 5 Year Global
This illustration also reflects a Non-Guaranteed Alternate
Scenario that is based on the
illustrated Alternate Scenario hypothetical index crediting
rate(s), current index cap(s) and
participation rate(s), current cost of insurance rates, and
current expense charges for each
selected strategy. The Alternate Scenario uses a hypothetical
annualized index credit rate that
is equal to the lesser of the non-guaranteed illustrated
annualized index credit rate and the
non-guaranteed illustrated annual interest rate on the Fixed
Strategy.
Please refer to the Policy Loan section for more details of the
impact illustrating a policy loan
will have on both non-guaranteed scenarios.
Fixed Strategy: The Fixed Strategy credits interest on a
portfolio interest rate basis. This means that yourentire account
value in the Fixed Strategy is credited at the same interest
rate.
The Fixed Strategy offers a guarantee of both principal and
interest at a minimum annual rate
of return of 2.00%. The current credited interest rate declared
by Security Life of Denver
Insurance Company for the Fixed Strategy is 4.25% and is in
effect for the first 12 months.
After the first 12 months, this rate is subject to change, but
changes may not occur to your
contract more frequently than annually. Policy charges are
deducted first from the Fixed
Strategy until depleted and then on a pro rata basis from each
of the Indexed Strategy blocks.
You may elect amounts from the Fixed Strategy to the Indexed
Strategy on the election date.
Your illustration is based on your initial election of premiums
between the Fixed Strategy and
the Indexed Strategy. Details on election restrictions are
contained in your policy.
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Indexed Strategy: The Indexed Strategy is a strategy available
under the policy through which the policyownermay elect to have all
or part of the Account Value receive Index Credits based in part
on
changes in the values of the Indexes. The available indexed
strategies are the S&P 500® 1
Year Point to Point Indexed Strategy, 2 Year Global Indexed
Strategy, and 5 Year Global
Indexed Strategy. The value of the Indexed Strategy equals the
sum of the values of the
indexed strategies.
On each block maturity date, an index credit, if any, is added
to the value of the block(s). The
index credit is subject to an index cap and is based on the
index change rate or weighted index
change rate for each index, the participation rate, and
guaranteed minimum interest rate of
each indexed strategy.
The S&P 500® 1 Year Point to Point Indexed Strategy is based
on the performance of the
S&P 500® Index, which is an index of stock performance of
500 publicly traded companies.
It does not reflect dividends payable on the underlying
stocks.
The 2 Year Global and 5 Year Global Indexed Strategies are
comprised of an index crediting
formula that takes into consideration three different indexes:
EURO STOXX 50® Index,
Hang Seng Index, and S&P 500® Index. EURO STOXX 50® Index is
an index of blue-chip
stocks that are represented by 50 stocks covering the largest
sector leaders in the EURO
STOXX 50® Index. It does not reflect dividends payable on the
underlying stocks. Hang
Seng Index is an index of the largest and most liquid stocks
listed on the Stock Exchange of
Hong Kong. It does not reflect dividends payable on the
underlying stocks. S&P 500® is an
index of stock performance of 500 publicly traded companies. It
does not reflect dividends
payable on the underlying stocks.
See IMPORTANT INDEX DISCLAIMERS for more information about each
index.
Index Change Rate: The index change rate for each index is equal
to (b) minus (a), divided by (a), where: (a) is the value of the
Index at the close of business on the block start date, and
(b) is the value of the Index at the close of business on the
block maturity date.
For the S&P 500® 1 Year Point to Point Indexed Strategy
only, the Index Change Rate will
never be less than zero and will never be more than the Index
Cap.
Weighted Index
Change Rate:
The weighted index change rate is only applicable to the 2 Year
Global Indexed Strategy and
5 Year Global Indexed Strategy. The weighted index change rate
equals the lesser of the
index cap and (a) plus (b) plus (c), where:
(a) is the highest index change rate multiplied by 75%; and
(b) is the next highest index change rate multiplied by 25%;
and
(c) is the lowest index change rate multiplied by 0%.
The weighted index change rate is guaranteed not to be less than
zero and will never be more
than the applicable Index Cap.
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Index Cap: The index cap is a limit on the index change rate for
the S&P 500® 1 Year Point to PointIndexed Strategy and a limit
on the weighted index change rate for the 2 and 5 Year Global
Indexed Strategies. The index cap for each block is set on the
block start date and will not
change for that block. The index cap can be changed by us at any
time for new blocks,
subject to any guaranteed minimum index cap.
Indexed Strategy Guaranteed Current
S&P 500® 1 Year 3.5% 13%
2 Year Global 10% Unlimited
5 Year Global 100% Unlimited
Participation Rate: The participation rate is the percentage of
the index change rate on the S&P 500® 1 YearPoint to Point
Indexed Strategy and the weighted index change rate that will be
recognized in
the calculation of the index credit for the 2 and 5 Year Global
Indexed Strategies. For each
block, the participation rate will be the participation rate on
the block start date and it will not
change for that block.
Indexed Strategy Guaranteed Current
S&P 500® 1 Year 100% 100%
2 Year Global 20% 65%
5 Year Global 15% 90%
Index Credit Rate: The index credit rate equals: · The index
credit rate for the S&P 500® 1 Year Point to Point Indexed
Strategy and
the weighted index change rate for the 2 and 5 Year Global
Indexed Strategies;
multiplied by
· The applicable participation rate.
Index Credit: An index credit is calculated and added to a block
at the close of business on the blockmaturity date only. The index
credit on the block maturity date is equal to (a) divided by
(b)
multiplied by (c), where:
(a) is the index credit rate calculated on the block maturity
date;
(b) is the index credit calculation rate times the index
crediting period; and
(c) is the total index credit calculation interest calculated on
the block from
the block start date to the block maturity date, prior to the
addition of
the index credit.
Index Credit Calculation Interest is calculated on the daily
value of each Block for purposes
of calculating the index credit only. The Index Credit
Calculation Interest is not added to the
Block.
VOYA INDEXED UNIVERSAL LIFE-GLOBAL CHOICEA Flexible Premium
Adjustable Life Insurance Policy 05/11/2016 02:02 PM
Designed for Valued Client Page 39 of 76
This illustration is not valid without all pages.Version P2 M3
2016.04.01, Released 05/02/2016, 7P-29,892 TP-11,178
MP-6,452aa859d03-e8a5-4cf9-b208-3a856459f239-23
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Benchmark Index: The Benchmark Index provides guidance in
setting the maximum hypothetical index creditrate for your policy
illustration. The Benchmark Index for this policy is defined as the
S&P
500® 1 Year Point to Point Indexed Strategy with a 100%
participation rate, a 0% guaranteed
minimum interest rate, and an index cap of 13.00%. An identical
indexed strategy may or
may not be included in your policy. The table below reflects
what the minimum, maximum,
and average of the annualized crediting rates would have been
over the past 66 years using 25
year rolling periods of the Benchmark Index. The hypothetical
index credit rate in your
policy illustration cannot exceed the average annualized return
of these 25 year periods;
however, the maximum hypothetical index credit rate might be
less than the average
Benchmark Index return.
Annualized 25-Year Period
Return Beginning
Minimum 4.55% 4/17/1959
Maximum 9.37% 2/6/1975
Average 7.28% N/A
Hypothetical
Annualized Index
Credit Rate:
The non-guaranteed policy values shown in this life insurance
illustration are based on
hypothetical index credit rates that are selected for each index
that may not exceed the
maximum hypothetical index credit rate for each respective
option. The current maximum
hypothetical annualized credit rate for the S&P 500® 1 Year
Point to Point Indexed Strategy
is 7.28%. The current maximum hypothetical index credit rate for
the 2 Year Global Indexed
Strategy is 15.09%,