Lifetime Legacy

04-064-12 (10/05) For Agent Use Only

Lifetime LegacyLifetime Legacy

Americo Financial Life and Annuity Insurance Company

Product Training


Life Insurance

What is Life Insurance? Peace of Mind Business Tool Family Protection Retirement Tool


Life Insurance

Life Insurance Questions How much life insurance does a client need? What kind of life insurance should your client buy? When is the best time for your client to purchase life

insurance? Which company should you represent?


Life Insurance

How much life insurance does a client need? How much of a legacy do they want to leave

behind? How much debt do they want to pay off for family? How long do they want to subsidize the lost

income from their death? What responsibilities do they have that may

become a burden on family?


Life Insurance

What kind of life insurance should your client buy?

Term or Permanent


Life Insurance

When is the best time for your client to purchase life insurance? Younger and healthier clients usually get lower

rates. If you wait too long, you take the risk of not

qualifying for any insurance.


Life Insurance

Which company should you represent? A company that offers:

• Strong Ratings• Competitive Products• Great Service


This is a summary overview of the product. Please refer to the Product Agent Guide and the policy for specific details.

Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give tax or legal advice. Clients should consult with a qualified, professional legal or tax advisor regarding the information and concepts contained in this material.

The product availability may vary by state. Please refer to the Product Ready for Sale Guide on Agent Café for specifics.

Any materials not provided by Americo that are used in presenting Lifetime Legacy to clients or agents must be approved in writing by Americo prior to use.

Lifetime Legacy is a flexible premium universal life insurance product. It is not a bank product, nor is it FDIC insured. It is not a LONG-TERM CARE product.

Agent Training Presentation Disclosures

This presentation was designed to assist Americo agents in understanding and presenting Lifetime Legacy. Please review and take note of the following general disclosures:

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Market Product Positioning How It Works Features & Benefits Simple Underwriting Sales Ideas Marketing Package

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Lifetime Legacy


Senior market Growing market

*Insurance Advisory Board, “Generations as Markets,” January, 2003

The US Senior market (individuals above 65) is expected to nearly double between 2000 and 2020.*

Senior Market Projected Growth (millions)

33

53

0

10

20

30

40

50

60

2000 2020

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Lifetime Legacy Market


From 1998 to 2052, the amount of wealth transferred as a result of death is projected to be between $41 and $136 trillion.*

Total annuity consideration is over $2 trillion in the last 10 years.

Only a small percentage annuitize.

LIMRA estimates that 80% of policyholders die with their annuities in the accumulation stage.

* Boston College Social Welfare Research Institute, “Why the $41 trillion Wealth Transfer Estimate is still Valid: A review of Challenges and Question.”, January 6, 2005

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Annuities and other financial vehicles are being used to transfer wealth from one generation to the next. By design By accident May not be the most efficient transfer method

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Client Profile Money in CDs, Money Market Accounts,

annuities, cash value life insurance, etc. Don’t need this money for income Worried about health emergencies…nursing

home confinement Want to leave the greatest possible legacy

How many times have you asked your clients if they have an asset that is specifically meant for loved ones?

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Where are seniors storing their savings?

CDs, Money Market Accounts,

Cash

Annuities

Life Insurance

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The problem: Annuities are excellent accumulation tools Not the best vehicles to transfer wealth to loved

ones Beneficiaries pay the taxes May significantly reduce the amount of wealth

transferred

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Lifetime Legacy – How it works


The solution: Lifetime Legacy puts the control over taxes back in

the hands of the client Provides the beneficiaries with a guaranteed death

benefit generally free from income taxes May substantially increase the amount of wealth

transferred

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Other major concerns for seniors Losing their retirement “nest egg” Losing their independence Becoming a burden on the family Emergencies

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Common “Emergency” Needs for Cash

Medical Bills A New Car Vacations Nursing Home Expenses

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Lifetime Legacy


In 2002, nursing home care cost, on average, was roughly $50,000 per year.*

The older population (ages 65 or older) was numbered 35.6 million in 2003, an increase of 3.3 million, or 10.2% since 1992.**

*“Beyond 50: A Report to the Nation on Trends in Health Security,” AARP, May 2002

**”A Profile of Older Americans: 2003”, Administration on Aging

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Lifetime Legacy


Efficient Transfer to Loved Ones Immediate increase in the value of the asset Passes generally income tax-free Avoid the costs & delays of probate

Guaranteed Minimum Death Benefit for Life No additional premiums necessary Assuming no loans or withdrawals

Guaranteed Cash Surrender Value Guaranteed to never be less than the initial premium after the 5th policy

year

The minimum guaranteed death benefit is equal to the initial specified amount assuming no loans, withdrawals or accelerations are taken.

Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give legal or tax advice. Consult a qualified legal or tax advisor regarding the information and concepts contained in this material .

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Lifetime Legacy - Highlights


Accelerated Benefit Rider Up to 80% of the Guaranteed Minimum Death

Benefit available*• Permanent confinement to a nursing home

– Skilled, intermediate care or custodial care– 90 Day elimination period

• Terminal Illness (12 months life expectancy) Lump sum available Quarterly or semi-annual Not Long Term Care Insurance

*80% of the guaranteed minimum death benefit less any policy loans

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Access to Cash Withdrawals after the 5th policy year

• Reduces the Guaranteed Minimum Death Benefit by a proportional amount

• Guarantees stay intact Policy loans after the 1st year

• Net 2.5% to the client

The minimum guaranteed death benefit is equal to the initial specified amount assuming no loans, withdrawals or accelerations are taken.

Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give legal or tax advice. Consult a qualified professional legal or tax advisor regarding the information and concepts contained in this material.

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Target issue ages 55 to 85 Minimum single premium $15,000 Maximum single premium

Premium that generates no more than $150,000 Net Amount at Risk

NAR over $150,000 with Home Office approval

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What is Net Amount At Risk?For underwriting purposes, the Net Amount at Risk is the difference between the Initial Guaranteed Minimum Death Benefit

and the Initial Single Premium.

For example: Female, Non-Nicotine, Age 65

(+) Initial Guaranteed Minimum Death Benefit: $115,207

(-) Initial Single Premium: $50,000

(=) Net Amount at Risk (NAR): $65,207

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No commission chargeback at death or surrender

Non-qualified money only

Beneficiary payout options No restriction payout – lump sum or any other payout option available by contract Monthly restriction payout – monthly payments of death benefit over a period of no less

than 60 months

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No NAIC illustration required Quoting guarantees only Simple Comparative funding

Repositioning from annuities – tax-deferred accounts

Repositioning from CDs – taxable accounts Sales-oriented output

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Lifetime Legacy - Software

2704-064-12 (10/05) For Agent Use Only Policy Series 258



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2904-064-12 (10/05) For Agent Use Only Policy Series 258



Policy Summary Benefits Graphical Comparison

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Policy Summary Summary of assets

repositioned What is the real value

today? Comparison to Lifetime

Legacy

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Policy Summary Guaranteed values Run to age 100 or for 6

years Will show loans and

withdrawals

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Underwriting Requirements Case specific

information Forms by state Underwriting

requirements

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Worksheet & Disclosure Required disclosure Optional worksheet Summarizes software

input Available at Relizon and

on Agent Café

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Specially designed Senior market Fast & efficient

Simplified Issue – Standard through Table 4

Specially designed application Minimal health questions MIB Authorization & Accelerated Benefit Disclosure

included

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Lifetime Legacy - Underwriting


Simplified Issue Based on Net Amount at Risk

81-85

76-80

71-75

66-70

61-65

55-60

$100,000 – 150,000$0 – 100,000Age

Net Amount at Risk

Telephone Interview

APS (if necessary)

Telephone Interview & APS - Paramed & HOS if necessary

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Teleunderwriting Point of Sale Toll-free number Complete details in Agent Guide

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Underwriting tools Impairment Guide Combination Impairment Guide

• Both on Agent Café & in Agent Guide Prescription Drug Guide on Agent Café Direct Access to your underwriter

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Our goal: Easy to do business Paper

Application Disclosure & Benefit Worksheet Transfer & replacement forms by state

All on Super Agent Kit & Agent Café

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Guarantees Death Benefit Cash Values

High Death Benefit Competitive Commissions Accelerated Death Benefit Simplicity

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Lifetime Legacy


Variety of product types Variety of benefits Lifetime Legacy takes the best of all

worlds Death Benefit Guarantees Commissions Underwriting

Competitive

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Lifetime Legacy


Lifetime Legacy Kit Agent Guide Q&A for clients and agents Client Brochure Client Video Software New Agent CD – Special edition

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Lifetime Legacy


Your Clients that may… Have reached retirement age.

(ages 55 to 85). Already have sufficient retirement income. Have sufficient assets to maintain desired lifestyle. Have no need for complicated estate planning. Want to leave the greatest possible legacy to heirs. Be in reasonably good health. Have assets that are earmarked for loved ones or

charities.

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Lifetime Legacy


Earmarked assets are in Annuities CDs Money Market Accounts Outdated cash value life insurance policies

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Lifetime Legacy


Case #1

Single Premium

$50,000 $115,207

Example: A 65 year old female, non-nicotine purchasing the Lifetime Legacy with an initial premium of $50,000.

1

Initial Guaranteed Minimum

Death Benefit

For Illustrative Purposes OnlyPolicy Series 258

Lifetime Legacy


Case #1

Single Premium

Initial Guaranteed Minimum

Death Benefit1

Accelerated Benefit Amount

Available

$50,000 $115,207$92,166

Example: A 65 year old female, non-nicotine purchasing the Lifetime Legacy with an initial premium of $50,000.

2

For Illustrative Purposes Only

Accelerated Benefit RiderSeries 2149

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Lifetime Legacy


Case #2

1

2

For Illustrative Purposes Only

65 year old female, non-nicotine

$50,000 In CD’s

$15,000 In Money Market Funds

$60,000 In Mutual Funds

$125,000 Total Estate at Death

$115,207 Lifetime Legacy Death Benefit

$15,000 In Money Market Funds

$60,000 In Mutual Funds

$190,207

Total Estate at Death

Current Portfolio

Portfolio with the $50,000 CD repositioned to Lifetime Legacy

1

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Lifetime Legacy


Case #3

Lifetime Legacy

Your client has two grandchildren. She would like to leave a legacy in the amount of $100,000 to each child. She has $100,000 in an annuity earning 5.5%. She is 69 years old and is disappointed that she may not make her goal.

$100,078 Single Premium = $200,000 Lifetime Legacy

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Specifically designed for the senior wealth transfer market Guaranteed lifetime death benefit Guaranteed cash surrender values Easy to understand Competitive commissions Simplified underwriting

Living Benefits Access to cash

Lifetime Legacy – The Package

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Quote software with comparative capabilities

No NAIC illustration required Agent training and recruiting materials Sales ideas Client video and sales materials Personalized sales support


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Direct access to your underwriter Fax your app program Competitive portfolio of annuities and life

insurance Agent Café Americo.com Daily EFT of commission


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Lifetime Legacy (Policy Series 258) is underwritten by Americo Financial Life and Annuity Insurance Company and may vary in accordance with state laws. Some products and benefits may not be available in all states. Certain restrictions apply. Benefits under the Accelerated Benefit Payment Rider (Series 2149) may vary by state and will not be available in all states. Certain limitations and exclusions apply. For further information, please refer to the policy or contract.

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Neither Americo Financial Life and Annuity Insurance Company nor any agent representing Americo Financial Life and Annuity Insurance Company is authorized to give legal or tax advice. Please consult a qualified, professional legal or tax advisor regarding the information and concepts contained in this material.

Products are underwritten by Americo Financial Life and Annuity Insurance Company, Kansas City, MO, and may vary in accordance with state laws. Some products and benefits may not be available in all states. Certain restrictions apply. For further information, please refer to the policy or contact Sales Support at 1-800-231-0801 x8410.

LIFE PRODUCTS

Lifetime Legacy

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