Determining your family’sfinancial needs

Family

Legacy

Lifestyle

Career

Retirement

Education

Live life your way.

How do you get started?• One in four Americans say they need

more life insurance*

80% of people overestimate the cost*

And…

• Only one in five are very likely to recommend it to a friend, family member, or colleague*

*LIMRA, 2014 Insurance Barometer Study

Life insurance: pain or promise?• What would you rather do…

– Go to the DMV?– Have a root canal?– Baby sit sextuplets?– Talk about life insurance?

The flexibility of life insurance• ProtectProtect loved ones with what is generally an income

tax free death benefit

• Potentially transfer wealth without federal estate taxes if life insurance is purchased within a properly structuredstructured irrevocable life insurance trust

• Accumulate a tax-deferredtax-deferred cash value, with certain policies1

1 Distributions are generally treated first as tax-free recovery of basis and then as taxable income, assuming the policy is not a Modified Endowment Contract (MEC). However, different rules apply in the first fifteen policy years, when distributions accompanied by benefit reductions may be taxable prior to basis recovery. Non-MEC loans are generally not subject to tax but may be taxable when the policy lapses, is surrendered, exchanged or otherwise terminated. In the case of a MEC, loans and withdrawals are taxable to the extent of policy gain and a 10% penalty may apply if taken prior to age 59 1/2. Always confirm the status of a particular loan or withdrawal with a qualified tax advisor. Cash value accumulation may not be guaranteed depending on the type of product selected. Investments in variable life insurance are subject to market risk, including loss of principal.

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

How much life insurance do I need?

• Capital Needs Analysis - analyzes your family’s future financial needs

Capital Needs Analysis

Determine the primary breadwinner’s total income contributionAdd the other spouse’s income, if applicableMultiply the total family income by the percentage of income necessary to support the family if the primary breadwinner diesSubtract the surviving spouse’s income from the assets required to support the family to determine the income gap to be replaced

How does it work?

Hypothetical Example of Capital Needs Analysis Hypothetical Example of Capital Needs Analysis Case Study –

Chris’ salary - age 35

Jennifer’s salary – age 34

Total annual income

Percentage of income necessary to continue standard of living

Actual income needed to maintain standard of living

Jennifer’s salary

INCOME GAP TO BE REPLACED

$150,000

+ $50,000

$200,000

x 80%

$160,000

– $50,000

$110,000

Chris and Jennifer

Married Couple of 7 years:

This Example Is For Illustration Purposes Only. Actual Results Will Vary.

Hypothetical Example of Capital Needs Analysis Hypothetical Example of Capital Needs Analysis

This hypothetical is for illustration purposes only, actual results will vary. These calculations assume a 5% return on assets. Growth rate is a hypothetical growth rate, selected by clients and based on what they believe is a reasonable rate of return for their risk tolerance. The Liquidation Approach in this example uses a 20 year timeframe.

Income Gap to be replaced 2,200,000(Add one time expenses) + $570,000

$2,770,000(Less existing assets) – $780,000

DEATH BENEFIT $1,990,000

NO LIQUIDATION APPROACHSet aside funds, preserve principal, survivors live off earnings

Income Gap to be replaced 1,439,385(Add one time expenses) + $570,000

$2,009,385(Less existing assets) – $780,000

DEATH BENEFIT $1,229,385

LIQUIDATION APPROACHLiquidate assets over a period of years

Case Study – Chris and Jennifer

Types of Life Insurance

Premiums

Cash Value

Loans/Withdrawals3

Coverage4

Investment Risk

Commonly Used For

PERMANENTTERM

Term Life

Level premiums for term of policy.

No

No

Specific term is defined by the policy selected. Generally 10, 15, 20 or 30 years.

None

Income replacement

Whole Life

Guaranteed level premiums for life.

Yes

Yes

Life

Insurance company bears risk.

Income replacement/ supplemental income strategy

Universal Life

Flexible premiums for life.

Yes

Yes

Life

Insurance company bears risk.

Estate planning/ legacy planning

Variable Universal Life1

Flexible premiums for life.

Yes2

Yes

Life

Policy owner bears risk.

Supplementalincome strategy

Term vs. Permanent

1 Investments in variable life insurance are subject to market risk, including loss of principal.2 Cash value accumulation of variable life insurance is not guaranteed.3 Loans and withdrawals will decrease the cash value and death benefit. Tax-favored distribution assumes that the life insurance policy is properly structured and not classified as a Modified Endowment Contract (MEC). Withdrawals are made up to the cost basis and policy loans thereafter. If the policy is a MEC, cash value is taxable upon withdrawal and if withdrawn before age 59½, a 10% federal income tax penalty may apply. If a policy should lapse or be surrendered prior to the death of the insured, there may be significant tax consequences. Loans and withdrawals will decrease the cash value and death benefit.4 Coverage is subject to adequate policy funding.

Term Life Insurance

Low cost death benefit protection

Purchased for a specified period of time

Annual premium typically remains level

No cash value feature

Conversion privileges

Level premium versus yearly increasing

Level premiums for term of policy

No

No

Specific term is defined by the policy selected. Generally 10, 15, 20 or 30 years.

None

Income replacement

Term Life

TERM

Premiums

Cash Value

Loans/Withdrawals

Coverage

Investment Risk

Commonly Used For

Whole Life Insurance

Guaranteed level premiums

Guaranteed cash values*

Guaranteed death benefits

*Guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company. Coverage is subject to adequate policy funding. Policy dividends are not guaranteed.

Whole Life

Premiums

Cash Value

Loans/Withdrawals

Coverage

Investment Risk

Commonly Used For

Guaranteed level premiums for life.

Yes

Yes

Life

Insurance company bears risk.

Income replacement/ supplemental income

PERMANENT

Universal Life InsuranceFlexible premium payments and death benefit1

Tax-Advantaged access to cash values -Through Loans and Withdrawals2

Potential for guaranteed3 death benefit2

Permanent death benefit coverage for - Wealth Transfer

- Income Protection

Premiums

Cash Value

Loans/Withdrawals

Coverage

Investment Risk

Commonly Used For

Flexible premiums for life.

Yes

Yes

Life

Insurance company bears risk.

Estate planning/ legacy planning

PERMANENT

Universal Life

1 Subject to certain restrictions and limitations. Coverage is subject to adequate policy funding.

2 Loans and withdrawals will decrease the cash value and death benefit. Tax-free distributions assume that the life insurance policy is properly structured, is not a Modified Endowment Contract (MEC) and distributions are made up to the cost basis and policy loans thereafter. If the policy has not performed as expected, distributions may need to be reduced, stopped and/ or premium payments may need to be resumed to avoid a policy lapse. There may be tax consequences.

3 If guaranteed Universal Life coverage is purchased loans and withdrawals could negatively impact the policy's duration.

Variable Universal Life Insurance

Death benefit coverage with equity based investment options

Premium and death benefit flexibility

Tax-advantaged access to cash values through policy loans and withdrawals.2

Premiums

Cash Value

Loans/Withdrawals

Coverage

Investment Risk

Commonly Used For

Flexible premiums for life.

Yes

Yes

Life

Policy owner bears risk.

Supplemental income

Variable Universal Life1

PERMANENT

1Investments in variable life insurance are subject to market risk, including loss of principal. Cash value accumulation is not guaranteed. Coverage is subject to adequate policy funding.

2Loans and withdrawals will decrease the cash value and death benefit. Tax-free distributions assume that the life insurance policy is properly structured, is not a Modified Endowment Contract (MEC) and distributions are made up to the cost basis and policy loans thereafter. If the policy has not performed as expected, distributions may need to be reduced, stopped and/ or premium payments may need to be resumed to avoid a policy lapse. There may be tax consequences.

Tax-Advantaged Access to Cash ValuesNon-Modified Endowment Contract• Withdrawals are subject to income tax to extent that they exceed basis in the policy• Generally tax-free loans

Modified Endowment Contract• Distributions and loans subject to Federal income tax to extent of gain• If withdrawn before age 59 ½, subject to a 10% penalty tax• May be penalties associated with loans/ withdrawals

Loans and withdrawals will decrease the cash value and death benefit. Tax-free distributions assume that the life insurance policy is properly structured, is not a modified endowment contract (MEC), and distributions are made up to the cost basis and policy loans thereafter. If the policy has not performed as expected and to avoid a policy lapse, distributions may need to be reduced, stopped and/or premium payments may need to be resumed. Should the policy lapse or be surrendered prior to the death of the insured, there may be tax consequences.

What are your goals? Protecting your family

Accumulating funds

Supplementing your income

Transferring wealth

Reducing estate taxes

Continuing a business

Action Steps:Identify your motivations/ goals for purchasing insurance

Calculate how much insurance you might need

Determine the type of insurance policy to purchase

Apply for insurance

Review annually with a financial professional

Identify your motivations/ goals

how much

type

Apply

annually

Where to find help?

Seek professional advice

Reputable insurance company

Carrier ratings are important

Consider MetLife

Primary Factors to ConsiderIs your need for insurance temporary?

Do you ever anticipate accessing the policy’s cash value?

How long do you want to pay premiums?

Do you want the premiums to stay the same for the life of the policy?

Do you want the flexibility to increase your death benefit?

Do you feel more comfortable with a guaranteed death benefit?

How much investment risk are you willing to bear?

Equity Advantage Variable Universal Life is offered by prospectus only, which is available from your registered representative. You should carefully consider the product’s features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well as other information about the underlying choices. This and other information is available in the product prospectus and in the prospectuses for the underlying funding choices, which you should read carefully before investing. Product availability and features may vary by state. All product guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.

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

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

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

MetLife Promise Whole Life Select 10, MetLife Promise Whole Life Select 20, and MetLife Promise Whole Life Select 65 are issued by MetLife Investors USA Insurance Company generally on Policy Form 5E-12-10 and in New York only by Metropolitan Life Insurance Company generally on Policy Form 1E-12-10-NY. MetLife Promise Whole Life 120 is issued by MetLife Investors USA Insurance Company generally on Policy Form 5E-12-10 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-12-10-NY. MetLife Promise Whole Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-12-10 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-12-10-NY. Guaranteed Level Term is issued by MetLife Investors USA Insurance Company on Policy Form 5E-23-12 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-23-12-NY. Legacy Advantage Survivorship Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-32-05 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-32-05. Guarantee Advantage Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-34-07 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-34-07-NY. MetLife Provider Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-36-12 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-36-12-NY. Equity Advantage Variable Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-46-06 and in New York only, by Metropolitan Life Insurance Company on Policy Form 1E-46-06-NY-1. Variable products are distributed by MetLife Investors Distribution Company (member FINRA). Variable products are offered through MetLife Securities, Inc. at 1095 Avenue of the Americas, New York, NY 10036 (member FINRA/SIPC). • Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency

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

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