lsw foundation, harbor & horizon - lifeventures corp · lsw foundation, harbor & horizon...

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For Agent Use Only – Not For Use With The Public

LSW Foundation, Harbor & HorizonFixed Interest Universal Life Insurance

Marketing Guide

Experience Life™

1

LSW’s Fixed UL Product Suite: Foundation, Harbor & Horizon are flexible premium, flexible death benefit universal life policies

designed to help meet changing customer needs. Whether your

customer desires low minimum premiums, tax deferred cash

accumulation or a variety of living benefit riders, we have a great

solution to offer.

Table of ContentsFeatures and Benefits . . . . . . . 3

Products at a Glance . . . . . . 4-7

What is Universal Life? . . . . . . 8

Sales Scenarios . . . . . . . . . 9-15

Product Specifications . . . . 16-18

Available Riders . . . . . . . 19-24


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• Premium and Death Benefit flexibility

• No-additional-cost Accelerated Benefit Riders

• Other Insured Rider

• Death benefit blending options for lower premium outlay available with Horizon

• Waiver of Specified/Target Premium Rider

• For business planning sales, the option for high early cash values through the Balance Sheet Benefit Rider on Horizon

• Highlevelsofguarantees

• Optional Riders for family protection

LSW’s Fixed UL products are … . . . designed to help meet the needs of your clients’ changing lives with such features as:

Riders are optional and may be available at additional cost. Not all riders are available in all states. Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy and may result in a taxable event. Harbor/Horizon, form series 8514(0707)/8515(0707), LSW Foundation UL, form series8640(0708)/8640ID(0708), Universal Life Insurance and applicable riders are underwritten by Life Insurance Company of the Southwest, Dallas, Texas.


3

Features BenefitsFlexibility: Offer premium flexibility, allowing clients the choice to pay more, pay less, skip or stop premium payments.

They also offer the flexibility of either a level death benefit or increasing death benefit.

As your client’s needs change, their policy provides the flexibility to help meet their ever-changing insurance needs, all in a single policy.

Living Benefits:1

Offer a wide range of riders to customize your client’s insurance needs including a variety of living benefits.

We call it “Life Insurance You Don’t Have to Die to Use.” Your clients can access their policy’s benefits while they are still living. Benefits include coverage in case of:

• TerminalIllness •ChronicIllness • CriticalIllness•Disability

Overloan Protection Rider:2 This rider helps prevent your client’s policy from lapsing in situations where loan balances threaten the policy’s ability to stay in force. Available on Harbor and Horizon only.

Policy loans3 are received income-tax free. If the policy lapses, with outstanding policy loans, there could be taxable income to the policy holder. In the event loan balances threaten the policies’s ability to stay in force, and if the terms of the rider are met, the Overloan Protection Rider will restructure the policy so that it is guaranteed not to lapse.

Additional Protection Benefit Rider (APB):APB may increase the total death benefit and/or cash value without significantly increasing the cost. Available on Horizon only.

The APB rider provides additional permanent coverage on the primary insured at a cost that is generally lower than the cost of the base coverage.

Waiver of Specified/Target Premium Rider:Allows your clients to determine how much of their premium will be waived in the event they become disabled. Available on Harbor and Horizon only. Waiver of Target Premium Rider available for Foundation only.

With tax-deferred accumulation, your clients can save for retirement. The Waiver of Specified Premium rider can ensure their premium is paid, in the event disability occurs. Your client chooses the level of premium to be paid upon disability.4

Balance Sheet Benefit Rider: This rider provides early duration enhanced policy surrender values which increase the policy’s collateral value for business accounting. Available on Horizon only.

This rider was designed for use in business planning cases. When funding an employee benefit program, this rider may help where there is a need for higher cash surrender value in the early policy years and can also be used in a premium financing situation.

Guarantees:5 The guaranteed minimum interest rate for Harbor is 5% for the first 10 years and 3% thereafter. The guaranteed minimum interest rate for Horizon and Foundation is 4.00%.

Clients can be assured that, regardless of where interest rates move, their policy values will continue to earn an attractive interest rate.

LSW’s Fixed UL Product Suite

1 If an Accelerated Benefit is paid, the policy cash value and death benefit will be reduced and may result in a taxable event.

2 Limitations apply to exercising the Overloan Protection Rider, including that the policy be in force at least 15 years and the insured having attained the age of 75. Exercising the rider results in a paid-up policy. There is no cost for this optional rider, however, there is a fee when the rider is exercised.

3 Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Except in the case of a Modified Endowment Contract (MEC), withdrawals up to the basis paid into the policy and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon policy lapse or surrender. For MECs, policy loans and withdrawals are considered taxable income.

4 Cannot exceed the planned periodic premium at issue. Refer to Rider Section for additional limitations.

5 Guarantees are dependent upon the claims-paying ability of the issuing company.


Foundation Harbor HorizonProduct Focus: Our lowest cost UL, providing mortgage protection

and flexibilityDeath benefit protection and flexibility with low minimum premium outlay

Cash value accumulation and flexibility, ideal for business planning needs.

Issue Ages: 0-85 (age last birthday) 0–85 (age nearest birthday) 0–85 (age nearest birthday)

Minimum Face Amount: $25,000 Coverage less than $25,000, but not less than $10,000, may be purchased as long as the minimum monthly premium for the entire policy is at least $100.00

$25,000 Coverage less than $25,000, but not less than $10,000, may be purchased as long as the minimum monthly premium for the entire policy is at least $100.00Washington State Minimum face amount is $25,000 in all cases

$100,000 (Base Face Amount plus APB Face Amount)Washington State Minimum face amount is $25,000 in all cases

Minimum Premium: $25.00/month $25.00/month $25.00/month

Minimum Additional Protections Benefit (APB) Face Amount Not available Not available $25,000

Maximum APB Face Amount Not available Not available Nine times base face amount

No-Lapse Guarantee Rider Not available Not available Available for issue ages 0-85

Rate Classes: - Preferred Non-Tobacco (issue ages 15–85)- Verified Standard Non-Tobacco (issue ages 0–85)- Express Standard Non-Tobacco (issue ages 0–85) - Preferred Tobacco (issue ages 15–85)- Standard Tobacco (issue ages 15–85)The Verified Standard Non-Tobacco or Express Standard Non-Tobacco Class will be used for insureds ages 0–14.

- Elite Preferred Non-Tobacco (issue ages 20–75)- Preferred Non-Tobacco (issue ages 20–85)- Verified Standard Non-Tobacco (issue ages 0–85)- Express Standard Non-Tobacco (issue ages 0–85) - Preferred Tobacco (issue ages 20–85)- Standard Tobacco (issue ages 20–85)The Verified Standard Non-Tobacco or Express Standard Non-Tobacco Class will be used for insureds ages 0–19. Tobacco users will have a 200% rating applied.

- Elite Preferred Non-Tobacco (issue ages 20–75)- Preferred Non-Tobacco (issue ages 20–85)- Verified Standard Non-Tobacco (issue ages 0–85)- Preferred Tobacco (issue ages 20–85)- Standard Tobacco (issue ages 20–85)The Verified Standard Non-Tobacco Class will be used for insureds ages 0–19. Tobacco users will have a 200% rating applied.

Substandard: - Table ratings and flat extras are available with •StandardNon-Tobacco•StandardTobaccoclasses- Temporary flat extras are available with the Verified Standard

Non-Tobacco, Express Standard Non-Tobacco and Standard Tobacco Classes.

- Table ratings and flat extras are available with •StandardNon-Tobacco•StandardTobaccoclasses- Temporary flat extras are available with any rate class.


Pension Initial Face Amount: Not available - Standard Rate Classes $5,000- Preferred Rate Classes $25,000- Pension Increase in Face Amount $2,000Washington State Minimum face amount is $25,000 in all cases

- Standard Rate Classes $5,000- Preferred Rate Classes $25,000- Pension Increase in Face Amount $2,000Washington State Minimum face amount is $25,000 in all cases

Pension Underwriting: Not available - Automatic Issue- Guaranteed Issue- Simplified Issue

- Automatic Issue- Guaranteed Issue- Simplified Issue


Products at

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Foundation Harbor HorizonProduct Focus: Our lowest cost UL, providing mortgage protection

and flexibilityDeath benefit protection and flexibility with low minimum premium outlay

Cash value accumulation and flexibility, ideal for business planning needs.

Issue Ages: 0-85 (age last birthday) 0–85 (age nearest birthday) 0–85 (age nearest birthday)

Minimum Face Amount: $25,000 Coverage less than $25,000, but not less than $10,000, may be purchased as long as the minimum monthly premium for the entire policy is at least $100.00

$25,000 Coverage less than $25,000, but not less than $10,000, may be purchased as long as the minimum monthly premium for the entire policy is at least $100.00Washington State Minimum face amount is $25,000 in all cases

$100,000 (Base Face Amount plus APB Face Amount)Washington State Minimum face amount is $25,000 in all cases

Minimum Premium: $25.00/month $25.00/month $25.00/month

Minimum Additional Protections Benefit (APB) Face Amount Not available Not available $25,000

Maximum APB Face Amount Not available Not available Nine times base face amount

No-Lapse Guarantee Rider Not available Not available Available for issue ages 0-85

Rate Classes: - Preferred Non-Tobacco (issue ages 15–85)- Verified Standard Non-Tobacco (issue ages 0–85)- Express Standard Non-Tobacco (issue ages 0–85) - Preferred Tobacco (issue ages 15–85)- Standard Tobacco (issue ages 15–85)The Verified Standard Non-Tobacco or Express Standard Non-Tobacco Class will be used for insureds ages 0–14.

- Elite Preferred Non-Tobacco (issue ages 20–75)- Preferred Non-Tobacco (issue ages 20–85)- Verified Standard Non-Tobacco (issue ages 0–85)- Express Standard Non-Tobacco (issue ages 0–85) - Preferred Tobacco (issue ages 20–85)- Standard Tobacco (issue ages 20–85)The Verified Standard Non-Tobacco or Express Standard Non-Tobacco Class will be used for insureds ages 0–19. Tobacco users will have a 200% rating applied.

- Elite Preferred Non-Tobacco (issue ages 20–75)- Preferred Non-Tobacco (issue ages 20–85)- Verified Standard Non-Tobacco (issue ages 0–85)- Preferred Tobacco (issue ages 20–85)- Standard Tobacco (issue ages 20–85)The Verified Standard Non-Tobacco Class will be used for insureds ages 0–19. Tobacco users will have a 200% rating applied.

Substandard: - Table ratings and flat extras are available with •StandardNon-Tobacco•StandardTobaccoclasses- Temporary flat extras are available with the Verified Standard

Non-Tobacco, Express Standard Non-Tobacco and Standard Tobacco Classes.



Pension Initial Face Amount: Not available - Standard Rate Classes $5,000- Preferred Rate Classes $25,000- Pension Increase in Face Amount $2,000Washington State Minimum face amount is $25,000 in all cases

- Standard Rate Classes $5,000- Preferred Rate Classes $25,000- Pension Increase in Face Amount $2,000Washington State Minimum face amount is $25,000 in all cases

Pension Underwriting: Not available - Automatic Issue- Guaranteed Issue- Simplified Issue

- Automatic Issue- Guaranteed Issue- Simplified Issue


a Glance

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Foundation Harbor HorizonInterest Rate Crediting Method: Portfolio Portfolio Portfolio

Minimum Guaranteed Interest Rate: 4.00% 5.00% for 10 years and 3.00% thereafter

4.00%

Surrender Schedule: Level first five years, grades down to zero at the end of year 15 15–year declining surrender charge 10–year declining surrender charge

Policy Loans: Wash loans available after five policy years with evidence of purchasing or refinancing a home (terms vary by state).

Wash loans available in all policy years on a current basis. Wash loans available in all policy years on a current basis.

Withdrawals: Available after the first policy year. A $25 withdrawal fee will apply. Available after the first policy year. $25.00 withdrawal fee will apply. Available after the first policy year. $25.00 withdrawal fee will apply.

1035 Exchanges: Not available with loans Available loan balances can account for up to 50% of the gross transferred amount.

Available loan balances can account for up to 50% of the gross transferred amount.

Expense Charges: Policy fee: $6.15 per monthPremium load: 7.5% of premium

Monthly expense charge is based on issue age, gender, rate class, and face amountPolicy fee: $5 per monthPremium load: 6% of premium

Monthly expense charge is based on issue age, gender, rate class, and face amount.Policy fee: $5 per monthPremium load: 6% of premium

Banding: Not available Determined at issue based on the total face amount. Only monthly expense charges and MMP rates will vary by band.Band 1: Min. face amount up to $249,999Band 2: $250,000-$999,999Band 3: $1,000,000 and up

Determined at issue based on the total face amount including APB. Only monthly expense charges and MMP rates will vary by band.Band 1: Min. face amount up to $249,999Band 2: $250,000-$999,999Band 3: $1,000,000 and up

Riders available (where approved):

Accelerated Benefits Rider (Chronic, Critical and Terminal Illness) Accelerated Benefits Rider (Chronic, Critical and Terminal Illness) Accelerated Benefits Rider (Chronic, Critical and Terminal Illness)

Accidental Death Benefit Rider Accidental Death Benefit Rider Accidental Death Benefit Rider

Children’s Term Rider Children’s Term Rider Children’s Term Rider

Disability Income Rider (2–year and 5–year) Disability Income Rider (2–year and 5–year) Disability Income Rider (2–year and 5–year)

Extension of Benefits Rider Extension of Benefits Rider Extension of Benefits Rider

Guaranteed Insurability Rider Guaranteed Insurability Rider Guaranteed Insurability Rider

Long-Term Care Rider Long-Term Care Rider Long-Term Care Rider

Other Insured Rider Other Insured Rider No-Lapse Guarantee Rider

Unemployment Rider Unemployment Rider Other Insured Rider

Waiver of Target Premium Overloan Protection Rider Unemployment Rider

Qualified Plan Exchange Privilege Rider Overloan Protection Rider

Waiver of Specified Premium Rider Qualified Plan Exchange Privilege Rider

Waiver of Specified Premium Rider

Additional Protection Benefit Rider

Balance Sheet Benefit Rider

For Agent Use Only – Not For Use With The Public6

Products at

Foundation Harbor HorizonInterest Rate Crediting Method: Portfolio Portfolio Portfolio

Minimum Guaranteed Interest Rate: 4.00% 5.00% for 10 years and 3.00% thereafter

4.00%

Surrender Schedule: Level first five years, grades down to zero at the end of year 15 15–year declining surrender charge 10–year declining surrender charge

Policy Loans: Wash loans available after five policy years with evidence of purchasing or refinancing a home (terms vary by state).

Wash loans available in all policy years on a current basis. Wash loans available in all policy years on a current basis.

Withdrawals: Available after the first policy year. A $25 withdrawal fee will apply. Available after the first policy year. $25.00 withdrawal fee will apply. Available after the first policy year. $25.00 withdrawal fee will apply.

1035 Exchanges: Not available with loans Available loan balances can account for up to 50% of the gross transferred amount.

Available loan balances can account for up to 50% of the gross transferred amount.

Expense Charges: Policy fee: $6.15 per monthPremium load: 7.5% of premium

Monthly expense charge is based on issue age, gender, rate class, and face amountPolicy fee: $5 per monthPremium load: 6% of premium

Monthly expense charge is based on issue age, gender, rate class, and face amount.Policy fee: $5 per monthPremium load: 6% of premium

Banding: Not available Determined at issue based on the total face amount. Only monthly expense charges and MMP rates will vary by band.Band 1: Min. face amount up to $249,999Band 2: $250,000-$999,999Band 3: $1,000,000 and up

Determined at issue based on the total face amount including APB. Only monthly expense charges and MMP rates will vary by band.Band 1: Min. face amount up to $249,999Band 2: $250,000-$999,999Band 3: $1,000,000 and up

Riders available (where approved):

Accelerated Benefits Rider (Chronic, Critical and Terminal Illness) Accelerated Benefits Rider (Chronic, Critical and Terminal Illness) Accelerated Benefits Rider (Chronic, Critical and Terminal Illness)

Accidental Death Benefit Rider Accidental Death Benefit Rider Accidental Death Benefit Rider

Children’s Term Rider Children’s Term Rider Children’s Term Rider

Disability Income Rider (2–year and 5–year) Disability Income Rider (2–year and 5–year) Disability Income Rider (2–year and 5–year)

Extension of Benefits Rider Extension of Benefits Rider Extension of Benefits Rider

Guaranteed Insurability Rider Guaranteed Insurability Rider Guaranteed Insurability Rider

Long-Term Care Rider Long-Term Care Rider Long-Term Care Rider

Other Insured Rider Other Insured Rider No-Lapse Guarantee Rider

Unemployment Rider Unemployment Rider Other Insured Rider

Waiver of Target Premium Overloan Protection Rider Unemployment Rider

Qualified Plan Exchange Privilege Rider Overloan Protection Rider

Waiver of Specified Premium Rider Qualified Plan Exchange Privilege Rider


Additional Protection Benefit Rider

Balance Sheet Benefit Rider

For Agent Use Only – Not For Use With The Public 7

a Glance

What is Universal Life?Consider the following features shared by all universal life policies…

Flexibility A policy holder can decide how much life insurance he or she needs (subject to certain requirements and limitations). The death benefit and premium payment can be adjusted to accommodate changing needs.

Security Beneficiaries are protected against possible financial hardship in the event of the insured’s death.

Tax-deferred account value growth The policy’s account value earns an interest crediting rate which accumulates income-tax deferred.

Tax-free death benefit Under current tax laws, life insurance proceeds are generally paid income-tax free to the beneficiary.

Tax-free distributions Under current tax laws, life insurance cash values accessed via loans are generally paid income-tax free. Interest Crediting Interest is credited based on the performance of investments made by the insurance company (usually in high quality bonds and mortgages). For Foundation and Horizon, the minimum guaranteed interest rate is 4%. For Harbor, the minimum guaranteed interest rate for the first 10 years is 5% and then 3% thereafter.

The interest rate for Foundation, Harbor and Horizon is credited on a portfolio basis.

8 For Agent Use Only – Not For Use With The Public

Multiple Needs, One Affordable Solution

LIFE INSURANCE YOU DON’T HAVE TO DIE TO USE

Multiple Needs, One Affordable SolutionMultiple Needs, One Affordable SolutionMultiple Needs, One Affordable Solution

Disability Income

Money to help pay your bills .

Cash ValueAccumulationMoney for future plans .

Accelerated Living BenefitsChronic, Critical,or Terminal Illness Riders . Life

InsuranceMoney for your family .

Specifically, consumers who want:• premium and death benefit flexibility; • a low premium outlay for their death benefit protection; • to accumulate tax-deferred cash value to access at

a later date; • guarantees in the form of interest rates.

Individual Insurance Planning with Harbor

Harbor is ideal for individuals who are looking for a low premium insurance policy for survivor protection. Generally, the individual is looking for permanent insurance but is not necessarily planning to fund the policy heavily. Harbor provides a death benefit that is flexible. Your clients can increase or decrease the death benefit coverage as their needs change. Additionally, it offers the ability to change premium payments or skip payments altogether. Furthermore, by paying additional premium payments, individuals can potentially increase death benefit and cash value.

Mortgage Protection with Foundation

Foundation is an alternative to term for mortgage protection that offers the option to provide permanent benefits and the potential for cash value growth. Foundation provides high death benefit protection with a low premium outlay. It also offers premium and death benefit flexibility so as your clients needs change, their policy can too. Foundation UL is ideal for family’s looking for mortgage protection in the event they should die prematurely.

Based on current illustration assumptions, paying the minimum premium will provide at least 20 years of coverage.

Business Planning with Horizon

Horizon is ideal for individuals who are looking for death benefit protection with the potential to build cash value accumulation. This product should be used in situations where the client is looking for permanent insurance and is planning to heavily fund the policy. Life Insurance is also the preferred choice to fund buy-sell agreements, executive bonus plans and non-qualified deferred compensation arrangements. Additionally, qualified plans offer a great opportunity to use tax deductible dollars to pay life insurance premiums. By providing premium flexibility, cash value accumulation and optional benefits to help protect key employees and their families, Horizon is ideal for business planning situations

Sales ScenariosUniversal Life – Who Are Your Clients?Consumers who are looking for a policy with the potential for high tax-deferred cash value accumulation or a high death benefit for low premium.

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On the following pages, we highlight hypothetical “client” scenarios which explain how Foundation, Harbor and Horizon can help your clients achieve their individual and business insurance planning objectives. We have also included sample point-of-sale and illustration output pages for use in these scenarios.



Compare Foundation to a traditional mortgage insurance plan:

Death Benefit:

• Will be paid directly to the named beneficiary under the policy versus the mortgage holder.

• Beneficiary has options as to whether to pay off the mortgage or to use death proceeds to help meet monthly mortgage obligations.

Tax-Deferred Cash Value: *

• Can be accessed during lifetime.• Can help meet unexpected emergencies, pay off the

mortgage balance before scheduled, or provide supplemental retirement income. Traditional mortgage insurance plans often decrease the death benefit and don’t offer cash value.

Disability Protection:• Provides fixed monthly payments, should the insured become

disabled and unable to work, benefits that can be used to help meet monthly mortgage obligations. This benefit is not typically available in traditional mortgage insurance plans.

Accelerated Living Benefits: **

• Provides money in the event of a terminal, chronic or critical illness to help pay for nursing home care, home health care, adult day care, medical procedures, drug therapies, household expenses and other quality of life expenditures. Traditional Mortgage insurance plans typically do not provide these types of living benefits.

Foundation Focus on Mortgage Protection

A house is one of the largest purchases most individuals will ever make, and their home mortgage will likely be their largest financial obligation . Maintaining adequate insurance protection will help allow their family to keep their home in the event of a premature death .

Foundation can help your clients protect their home, family and income – all in one policy. In addition to providing protection against premature death, Foundation offers a host of lifetime living benefit riders to help protect against losses from unemployment, disability or long-term care expenses. Additionally, if your clients rely on two incomes, as so many families do, there is the option for both spouses to be insured under one policy.

This product is a great place to begin to build their financial future.

Consumer brochure available for presentation on mortgage protection needs – catalog #62686 – that highlights both Term and Permanent Insurance Options.

Point of Sale Materials

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Harbor Focus on Survivor Protection

Harbor can be designed as a high death benefit, low premium policy ideal for individuals who need death benefit protection and premium flexibility .

Your clients may be purchasing a home, raising children and saving for college. They understand the need to protect their families and assets against financial loss brought on by premature death.

They want life insurance protection that can change as their needs change, and the safety that goes with permanent protection.

Protecting the ones who depend on you

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Permanent life insurance provides:

• An income tax-free death benefi t for your family should you die prematurely;

• Access to cash values, through loans and withdrawals,�• Access to cash values, through loans and withdrawals,�• Access to cash values, through loans and withdrawals, to meet emergencies, take advantage of opportunities,

or draw an income stream;

• Tax-deferred build-up of policy cash values.

Protect the people who depend on you today, plus,

build a solid foundation for the future

Experience Life™

Protect

You may need a strategy that helps protect your family

in the event of your premature death by providing an

income tax-free death benefi t.

Bills

Education expensesMortgage

Final expenses

Life insurance death benefit


Sample selling system output:

Consumer flyer available for presentation on survivor needs – catalog #63731.

to meet emergencies, take advantage of opportunities,

Experience Life™™

Protecting The Ones Who Depend On YouHere’s how your premium dollars can providefinancial security for your family.

• Your beneficiary will receive the death benefit income-tax free and without the delay of probate.• The death benefit can be received either:- In a single lump sum, or

- As a stream of income, or

- Some combination of both — a partial lump sum to cover final expenses with the balance used toprovide a monthly income.

Protect your future today — your loved ones depend on you

BillsMortgage

Educationexpenses Final expenses

Initial Annual Premium$816


Distribution Option 2:Monthly income for 15 years*

$765


$765


$765

Distribution Option 1:Lump Sum

$100,000


$100,000


$100,000

Assumes Death At Age 65$100,000

Death Benefit


Death Benefit


Death Benefit

*Income calculated based on Contract Settlement Rates in effect as of the date of this illustration. Amount illustrated is based on a 15 year period certain payout,

payable monthly.


payable monthly.Policies are underwritten by National Life Insurance Company, Montpelier, VT. The benefits and values are not guaranteed, the assumptions of which they are

based are subject to change by the insurer, and actual results may be more or less favorable. This summary is not valid without the accompanying illustration

which provides more details and disclosure regarding policy values and benefits and is an integral part of this presentation.

Policies are underwritten by National Life Insurance Company, Montpelier, VT. The benefits and values are not guaranteed, the assumptions of which they are






Harbor for Survivor Protection

Death Benefit Protection • Provide cash the family needs to pay off debt, meet

monthly obligations and maintain their lifestyle.

• Ensure that funds will be there to help pay the children’s future college expenses.

Access to Cash Values During Lifetime*

• Cash value which can be accessed to pay for un-planned expenses or to meet short term income needs.

• Supplement retirement income.

• Waiver of Specified Premium upon total disability.

Benefits for an unexpected Illness**

• Money for a terminal, chronic or critical illness.

• Pay for costs associated with home health care, medical procedures, drug therapies and other quality of life expenditures.

* Policy loans and withdrawals, and receipt of ABR Benefits, will reduce the policy’s cash value and death benefit.

** Benefits received from exercising the Accelerated Benefits Rider may be used for any purpose and are not limited to illness-related expenses. 11

Horizon Focus on Cash Value Accumulation

Horizon is a cash value policy that’s ideal for successful individuals who need both protection and a strategy for accumulating assets on a tax-efficient basis .

Your clients may be looking for a tax-favored way to further diversify their savings. Horizon can be a way to ensure both death benefit protection as well as tax-efficient growth of policy cash value, cash value that your clients can access, when they need it, on a tax-favorable basis.

This product is a great way to plan for what’s on the horizon for business owners.

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Helping achieve lifetime income needs

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Put the power – and tax advantages – of permanent

life insurance to work for you today

Experience Life™

Build

Each Premium Payment You Make:

Builds cash value income-tax deferred

Provides your family with an income-tax free death benefit that they

can use to:

Cash value you can use during your lifetime, through income-tax free

policy loans� and withdrawals, for such needs as:

• Meeting financial emergencies

• Paying for a child’s college expenses, and

• Creating a stream of income for retirement

How permanent life insurance can help you

achieve your present and future fi nancial goals:

Pay taxes and other final expenses

Pay education expenses for your children

Maintain their lifestyle

and protect their future

financial security

Experience Life™


Permanent life insurance, an important part of helping youachieve your present and future financial goals

How it works:• Total premiums paid into your life insurance policy provide build-up of cash values – income tax deferred.• Income during your lifetime is provided through loans and withdrawals from you policy’s cash values and

are received income-tax free.• The policy death benefit can also be received income-tax free during lifetime in the case of a critical or

terminal condition.

• Your remaining death benefit, less benefits received during lifetime, will be paid to your beneficiaryincome-tax free.

Life Insurance – helping make your financial goals a reality

Life InsuranceHelping achieve lifetime income needs

Total Premiums PaidThrough Age 64

$37,300


$37,300


$37,300

ProjectedTotal Tax-Free Income Distributions

starting at age 65 for 20 years

$208,840



$208,840



$208,840



$208,840

Remaining Tax FreeDeath Benefit

at end of income period:

$32,486



$32,486



$32,486



$32,486

Total Combined Benefit

$241,326Total Combined Benefit

$241,326










Survivor Protection plus tax-efficient Cash Value accumulation

• Death Benefit Protection completes this aspect of the retirement funding in the event of premature death.

• Funding at the maximum levels will provide optimal cash value accumulation potential.

• Policy loans and withdrawals may be received income-tax free.*

• Overloan Protection Rider prevents a policy from lapsing when loan balances threaten the policy’s ability to stay in force.**

* Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. For MECs, policy loans and withdrawals are considered taxable income.

** Exercising the Overloan Protection Rider requires that the policy be in force at least 15 years and the insured having attained the age of 75. Refer to Rider section for additional requirements.For Agent Use Only – Not For Use With The Public

There is no restriction placed on the use of the benefit received and these riders can provide cash for: • Living Expenses • Nursing Home Care • Home Health Care • Adult Day Care • Medical Procedures • Drug Therapies • Household Expenses, and • Quality of Life Expenditures

Protecting against financial loss brought on by the death of an income earner can be crucial . One of the biggest risks for financial loss is the possibility of a chronic, critical, or terminal illness .

Health insurance plans may not cover costs associated with a chronic, critical, or terminal illness.

How can you help your clients plan for the “What ifs” in life? LSW’s Living Benefits makes it possible to prepare financially against potential chronic, critical or terminal illness, but also gives them options if they never require that protection.

Did you know:

• Every 26 seconds, someone suffers from a coronary event.1

• Every 45 seconds, someone suffers a stroke.1

• At age 65 the odds are nearly one in two that you will require nursing home services for at least 21/2 years.2

• An extreme illness can cost well over $100,000 in out-of-pocket expenses.3

Liv ing Benef i ts

A Key to Life Insurance

62824 MK2333(0307) TC30498(0307)

Point of Sale MaterialsConsumer brochure available for presentation on living benefit needs – catalog #62824.

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1 American Heart Association, Heart and Stroke Statistical Update, 2007.

2 The Looming Crisis, American Health Care Association, 2000.

3 “Illness And Injury As Contributors To Bankruptcy,” Harvard Study, 2004.

* Receipt of the Accelerated Benefits will reduce the contract’s cash value and death benefit and may result in a taxable event. All forms of these riders may not be available in all states.


Life Insurance You Don’t Have to Die to Use

Focus on Living Benefits

Funding a Qualified Plan with Horizon:

• Death Benefits complete the plan for beneficiaries in the event of a premature death.

• Premiums are paid with pre-tax plan dollars.

• Insurance Death Benefit Received Income-Tax Free.

• An alternative to group insurance.

Horizon Focus on Pre-Retirement Death Benefit Protection Funded Through Qualified Plans

Employer–sponsored qualified plans such as 401(k), Profit Sharing, Money Purchase and Defined Benefit Plans allow for plan contributions to be used to pay the life insurance premium for plan participants .

Life insurance inside a qualified plan is purchased with employer tax deductible plan contributions and is an affordable way of providing death benefit protection. Should a plan participant die before reaching retirement, life insurance ensures the retirement plan will “self-complete” - paying not only the value in the participant’s account but an additional income-tax free death benefit.

Through the use of the Balance Sheet Benefit (BSB) rider, Horizon can also be structured to maintain a high ratio of cash surrender value to premiums paid. This feature protects employers who sponsor Defined Benefit Advantage plans from having to make unplanned additional contributions.

Life Insurance

in your quali� ed plan can help protect the goals

and future you are working so hard to achieve.

Make your plan the best it can be by including life insurance

along with the investments in your plan.Make Your Plan the Best it Can Be

Your plan is not the best it can be until your bene� ts are guaranteed.

Whether it’s cost ef� ciency, protection for bene� ciaries, making your

retirement program guaranteed*, or potentially larger income during

retirement, the advantages for adding life insurance to your plan are many.

68014(0307)

TC33034(0307)

MK10199

National Life Group®

National Life Group has been designing and administering quali� ed retirement

plans for businesses for more than 65 years. During those 65 years our focus has

been on providing quali� ed retirement plan solutions for closely held businesses.

We understand what matters to business owners and we have the expertise to

� nd effective and ef� cient retirement plan solutions that provide tax savings and

wealth accumulation. In 1999 we created National Retirement Plan Advisors, an

af� liate, dedicated exclusively to providing quali� ed retirement plan services for

our clients. Today, we are a leader in 412(i) de� ned bene� t plans and innovative

design and insurance strategies. To fund our quali� ed plans, National Life, with

its af� liates, offers a broad portfolio of life insurance, asset accumulation and

retirement products.

Learn more about buying life insurance inside your quali� ed plan today.

Your National Life Insurance Company (National Life) � nancial services

representative will be happy to answer any questions you may have.

The use of this strategy involves complex tax rules and regulations. Consider enlisting the counsel of an estate

planning professional and your legal and tax advisors prior to implementing such sophisticated strategies.

The cost and availability of life insurance will depend on factors such as age, health and the type and

amount of insurance purchased.

National Life Group® is a trade name of National Life Insurance Company and its af� liates. Each company of the

National Life Group is solely responsible for its own � nancial condition and contractual obligations.

LSW is not authorized to sell insurance in New York and does not do any insurance business in New York.

Home Office: One National Life Drive, Montpelier, VT 05604 • 800-277-9929 • www.nationallife.com

LSW Home Office: 1300 West Mockingbird Lane, Dallas, TX 75247 • 800-579-2878 • www.lifeofsouthwest.com

Montpelier, Vermont

* Guarantees are dependent upon the claims

paying ability of the issuing company.

Consumer brochure available for presentation of life insurance in qualified plans – catalog #68014.


14 For Agent Use Only – Not For Use With The Public

Business Insurance Planning with a Focus on High Early Cash Value

The Balance Sheet Benefit Rider is ideal for such business insurance planning as:

• Executive Bonus plans

• Leveraged Bonus plans

• Key Person

• Buy-Sell

Horizon Focus on Employee Fringe Benefit Planning

Horizon combined with the Balance Sheet Benefit Rider is structured for fringe benefit planning .

Your business owner clients may be considering a non-qualified retirement plan to supplement (or as an alternative to) a qualified plan. Horizon combined with the Other Insured Rider or the Balance Sheet Benefit Rider could be the funding solution for their plan.

Through the use of the Other Insured Rider, Horizon is an ideal product solution for funding a buy/sell agreement between two or more parties - eliminating the need for multiple policies.

For fringe benefit plans, the Balance Sheet Benefit rider provides the ability to have a high ratio of cash surrender value to premiums paid.




15For Agent Use Only – Not For Use With The Public

Deferred Compensation Planning

6390

5 /

MK3

147(

0408

) /

TC41

057(

0408

)

The advantages of this strategy:

• Key employee is able to defer income taxes to a future year.

• Provides employee benefi ts on a discriminatory basis.

• Compensates key employee for inadequate 401(k) deferral opportunities.

• May be used to attract and retain key employees.

• Can provide supplementary retirement benefi ts through policy loans.

Business and key

employee enter

into deferred compensation

agreement

Business purchases a permanent life insurance policy

insuring the life of the key employee

Policy cash value

can be a source

of benefits paid

to key employee

at retirement�,�

At employee’s death, life insurance company

pays tax free death benefit to business�

Business can use the death benefit to continue

paying benefits to key employee’s beneficiary

Experience Life™

Optimize

The success of your business depends on the expertise

of a few key employees…

How do you reward and retain the people who are essential to keeping your business successful?

Business can use the death benefit to continue

paying benefits to key employee’s beneficiary

Experience Life™




terminal condition.





$37,300


$37,300


$37,300



$208,840



$208,840



$208,840



$208,840



$32,486



$32,486



$32,486



$32,486



$241,326










Policy Protection Period

The Policy Protection Period helps protect the policy against lapse during the first 5 policy years for Horizon and the first 15 years for Harbor and Foundation. During this period, the policy will not enter a grace period, even if the cash surrender value is not sufficient to cover the monthly deductions, as long as:

• the sum of premiums paid, less all withdrawals made and less any policy debt, is greater than or equal to the total minimum monthly premiums in effect since the date of issue, and

• theaccumulatedvaluelessanypolicydebtissufficientto cover the monthly deductions.

The Policy Protection Period does not restart after an increase in face amount.

Surrender Charges

Surrender charges apply during the first ten years of the policy for Horizon and first 15 years for Harbor and Foundation. The surrender charge will be based on issue age, gender, rate class, policy duration and face amount. A face amount increase will have its own surrender charges associated with it.

Policy Charges

Monthly Expense Charge: based on issue age, gender, rate class and face amount.

Policy fee: $5.00 per month for Harbor and Horizon $6.15 per month for Foundation

Premium load: 6% of premium for Harbor and Horizon 7.5% of premium for Foundation

Banding

Harbor and Horizon Only

Banding is determined at issue based on the total face amount including APB. Only monthly expense charges and MMP rates will vary by band.

Band 1: Min. face amount up to $249,999 Band 2: $250,000-$999,999 Band 3: $1,000,000 and up

Premiums

Harbor, Horizon and Foundation all have minimum and commissionable target premiums. A premium equal to one minimum monthly premium for each monthly policy date between the effective date and the issue date is due on the date of issue. The commissionable target premium (CTP) is the maximum premium on which the higher compensation rate will apply. The minimum monthly and commissionable target premium will be based on face amount, age, rate class and gender.

Payment Mode: Annual, semi-annual, quarterly or check-o-matic. The minimum billed premium amount is $25.00/month. Unscheduled premiums may be paid into the policy at any time.

The “target” premium for the Unemployment Rider and the Waiver of Target Premium is defined as the policy holder’s planned periodic premium, up to the policy CTP.

Under Section 7702 of the Internal Revenue Code, a policy will be treated as life insurance for federal income tax purposes if it meets the requirements of the guideline premium test (GPT) or the cash value accumulation test (CVAT). Both tests impose a minimum death benefit per dollar of accumulated value (corridor factors). In addition, the guideline premium test imposes limits on the amount of premium that may be paid.

If the policy is classified as a modified endowment contract at issue, the policyholder may choose between using the GPT or the CVAT.* This choice is made on the application and is irrevocable. If the policy is not a modified endowment contact at issue, the GPT will be used.

Death Benefit Options

The policyholder may elect an Option A (level) or Option B (increasing) death benefit.

Option A – the death benefit is equal to the greater of 1. the face amount, or

2. the accumulated value multiplied by the applicable corridor factor

Option B – The death benefit is equal to the greater of 1. the face amount plus the accumulated value; or 2. the accumulated value multiplied by the applicable

corridor factor

16

* CVAT is not available with Foundation policies.


Product Specifications

Change in Death Benefit Option

The policy’s death benefit option can be changed from Option A to B, or B to A, once each policy year after the first policy anniversary. If a change would cause the policy to no longer qualify as life insurance for federal income tax purposes, or if the resulting face amount is less than the minimum face amount, the change will not be allowed.

Changing from Option A (level) to Option B (increasing): The face amount of the policy will be reduced by the accumulated value just prior to the effective date of the change.

Change from Option B to A: The face amount will increase by an amount equal to the accumulated value just prior to the effective date of the change.

In both cases listed above, the death benefit is the same before and after the change.

Changes in Face Amount

Increase in Face Amount: After the first policy anniversary the policyholder may apply for an increase in coverage subject to the following terms:

• Satisfactory proof of insurability.

• The requested increase satisfies the minimum face amount requirements.

• The change will be effective on the monthly date on or following the approval of the application.

• Each increase will have its own effective date, set of surrender charges, and monthly expense charge.

Decreases in Face Amount: After the first policy anniversary the policyholder may request a decrease in face amount in coverage subject to the following terms.

• The decrease becomes effective on the monthly policy date or the day following our receipt of the request at the home office.

• Decreases cannot result in a face amount less than the minimum face amount.

• Decreases will not be permitted if the decrease causes the policy to no longer qualify as life insurance for federal income tax purposes.

• The total face amount of the policy following the reduction may be no less than 75% of the largest total face amount in force at any time in the twelve months prior to the request.

• Decreases do not affect the level of surrender charges on the monthly expense charge.

Each change in coverage will cause the Commissionable Target Premium (CTP) and Minimum Monthly Premium (MMP) to be adjusted accordingly.

Loans

Loans are available at any time after the first policy year. For pension owned policies, loans are available in the first policy year. The policy will serve as the sole collateral for the loan. The amount available for loan on any day will be the surrender value, less three times the monthly deductions due on the last monthly policy date.

For Harbor and Horizon, the interest rate charged on the loan will be a variable rate that is based on the Moody’s Corporate Bond Yield Average - Monthly Corporates, subject to a minimum rate of 5%. Loaned values are segregated in a Loan Collateral Fund, and credited with the Variable Loan Rate (VLR) less an interest spread. The current interest spread is zero. Preferred loans are available in all policy years on Harbor and Horizon.

For Foundation, the interest rate charged on the loan will be a variable rate that is based on Moody’s Corporate Bond Yield Average -Monthly Corporates, subject to a minimum rate of 5%. Loaned values are segregated in a Loan Collateral Fund and credited with 4%.

Preferred Loans are available beginning on the fifth policy year with verification of refinancing or purchasing a home (terms vary by state). The interest rate charged on preferred loans is 4%. Interest credited on the loan collateral is 4%.

17

Note: increases and decreases in face amounts for pension owned policies can be done in the first year of the policy.


18

Product SpecificationsLoans (continued)

All or any loan amount may be repaid at any time prior to the death of the insured or the surrender of the policy. The exception is if the policy is in the grace period, the loan repayment would be considered a premium payment to keep the policy in force unless the policyholder specifies it as a loan repayment.

The Overloan Protection Rider, available on Harbor and Horizon, guarantees that the policy will not lapse in situations where loan balances threaten the policies’ ability to stay in force.*

Withdrawals

At any time after the first policy year, or during the first policy year for pension owned policies, the policyholder may make a withdrawal of the policy’s cash surrender value subject to the following terms:

• The amount of withdrawal may not exceed the cash surrender value minus three monthly deductions due on the last monthly policy date.

• The accumulated value will be reduced by the amount of the withdrawal.

• The face amount will be reduced by an amount equal to the withdrawal, for option A (level) policies.

• The Company will charge a $25 fee for each withdrawal made.

1035 Exchanges

The effective date of 1035 exchanges will be the date the funds are received into the home office. 1035 Exchanges with loans will be permitted for Harbor and Horizon only, as long as the loan transferred does not exceed 50% of the total policy value transferred. Available with Harbor and Horizon only.

* Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Except in the case of a Modified Endowment Contract (MEC), withdrawals up to the basis paid into the policy and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon policy lapse or surrender. For MECs, policy loans and withdrawals are considered taxable income.


19

ACCELERATED BENEFIT RIDERS

The Accelerated Benefits Riders 1, 2, and 3 all allow accelerated payment of up to 100% of the policy death benefit. Accelerated Benefits Rider 1 (ABR 1) is available in case of a terminal illness; Accelerated Benefits Rider 2 (ABR 2) is available in case of chronic illness; Accelerated Benefits Rider 3 (ABR 3) is available in case of critical illness.

The actual payment amount under any of the riders is discounted (the benefit payment is the actuarially discounted value of the death benefit being accelerated less a pro rata portion of any policy debt).

• Thereisnolimitonhowthefundscanbeused.

• ThereisnoadditionalpremiumforanyoftheAccelerated Benefits Riders.

• Ridersstayinforceaslongasthebasepolicyremains in force.

All Accelerated Benefit Riders are available at no additional cost.

ABR 1 - Terminal Illness

Gives the policy owner the option of receiving an accelerated benefit if the insured is terminally ill. Terminal illness is expected to result in death within two years (one year in PA, CT or VT). All or part of the death benefit may be requested early (lump sum).

ABR 2 - Chronic Illness

Available when the insured is diagnosed as chronically ill:

• Unabletoperformtwoofthesixactivitiesofdailyliving –bathing, continence, dressing, eating, toileting, and transferring without assistance, or

• Withdeteriorationorlossinintellectualcapacity(cognitive impairment).

Provides for the payment of the accelerated death benefit in periodic payments.

The maximum monthly amount that can be accelerated is 2% of the death benefit.

ABR 2 must be in force for two years before benefits are available.

ABR 3 - Critical Illness

Available when the insured experiences one of the following:

• Heartattack

• Majororgantransplant

• Stroke

• DiagnosisofALS(amyotrophiclateralsclerosisorLou Gehrig’s Disease)

• Diagnosisofcancer

• Diagnosisofendstagerenalfailure

• Blindness(correctedvisionofnobetterthan 20/200 in both eyes)

ABR3 will not pay benefits for qualifying events that occur within 30 days of the effective date unless the qualifying event is directly caused by accidental injury.

All qualifying events may not be available in all states.

All or part of the death benefit may be requested early (lump sum). The actual payment will vary due to the severity of the disease. If the insured also meets the definition of a terminal illness it will likely be more beneficial to the policy-owner to accept benefits under ABR 1 rather than ABR 3. ABR 3 is not available for substandard policies.

Any qualifying event occurring during the first 30 days the rider is in force is not covered, unless it is the result of an accident. These restrictions may not apply in all states. Please see the ABR disclosure forms for more information.

The Company reserves the right to set a maximum on the total death benefit that may be accelerated under all accelerated benefits riders. The current limit is $1,000,000 and applies to all accelerated benefit riders applying to the same insured. The limit will be no less than $500,000. Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy. Receipt of Accelerated Benefits may be a taxable event and may affect your clients’s eligibility for public assistance programs. They should consult their personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment will affect them, their spouse and their family’s eligibility for public assistance.

For more information about Rider availability in Qualified plans, see Retirement Services Newsletter “Product Availability Pension: Profit Sharing Plans”.


Available Riders

ACCIDENTAL DEATH BENEFIT RIDER (ADB)

The ADB pays an additional death benefit if the insured’s death results from an accident. It is not available on insureds rated higher than 200% or a flat rate of more than $5 per thousand for 2 or more years. Not available with certain hazardous occupations.

• Issueages0–60.

• ADBisavailabletothePrimaryInsuredaswellasthePrimary Other Insured (see the Other Insured Rider description).

• Riderstaysinforceuntilthepolicyanniversaryfollowing the insured’s 70th birthday, as long as the insured’s life insurance coverage and the base policy remain in force.

• Minimumrideramountis$10,000.

• Maximumrideramountisthelesserof$250,000 or the insured’s life insurance face amount, including Additional Protection Benefit Rider (APB) amounts.

• Premiumsarealevelamountperthousand, based on issue age.

ADDITIONAL PROTECTION BENEFIT RIDER (APB)Available on Horizon Only

The APB Rider is a non-commissionable rider which provides additional permanent coverage on the primary insured. The maximum ratio of APB face amount to base face amount for a single policy will be 9 to 1. The APB rider will be available for all issue ages and rate classifications. The minimum APB face amount is $25,000. For a policy with APB, the maximum Death Benefit eligible for accel eration through use of the Accelerated Benefits Rider (ABR) is equal to the Policy Death Benefit minus 50% of the APB face amount at the time of initial acceleration, subject to maximum benefit amounts. Policies that utilize the APB rider will have slightly lower guaranteed values than policies utilizing all base coverage.

BALANCE SHEET BENEFIT RIDER (BSB)Available on Horizon Only

The Balance Sheet Benefit Rider eliminates all surrender charges on the units of insurance to which it applies. There will be a monthly charge, based on issue age, sex, and rate class per unit of coverage for the rider. Commissions on units of insurance with the BSB rider will be paid using a different schedule which levelizes the compensation.

20

* In South Carolina, “Disability” is defined as the insured’s inability to perform the duties of his or her own occupation during the first year of disability and the inability to perform the duties of any occupation for which he or she is suited thereafter.


Available Riders

21

CHILDREN’S TERM RIDER (CTR)

The Children’s Term Rider provides term life insurance on all of the insured’s children until they reach age 23. Each child is covered for the same selected benefit amount. Children born or adopted after issue (after they reach the age of 15 days), and dependent stepchildren living in the insured’s home will be covered as well. The children’s coverage is convertible without underwriting at any time while the rider is in force for an individual whole life or universal life policy with the same face amount. The children’s coverage is convertible for double the rider face amount when the child reaches age 23 or marries, or at the death of the primary insured.

• Issueages15days–16years.

• Riderstaysinforceuntilthepolicyanniversaryfollowing the last covered child’s 23rd birthday, as long as the base policy remains in force.

• Minimumrideramountis$5,000.

• Maximumrideramountis$25,000.

• Premiumsarealevelamountper$1,000regardless of the number of children covered.

DISABILITY INCOME RIDER (DIR)

Two different DIRs are available, distinguished by a two-year or a five-year benefit period. Both options provide for a fixed monthly benefit if the insured is totally disabled and unable to work. Both provide coverage for disabilities due to either sickness or accident. DIR coverage is not available on rated classes. Certain occupations are not eligible for coverage. Policy premiums are not automatically waived under the DIR; the Waiver of Specified Premium Rider/Waiver of Target Premium Rider must be in force to waive policy premiums.


• DIRisavailabletothePrimaryOtherInsured(see the Other Insured Rider description) as well as to the primary insured under the policy.

• Coveragestaysinforceuntilthepolicyanniversaryfollowing the insured’s 65th birthday, as long as the insured’s life insurance coverage and the base policy remain in force.

• Minimumbenefitamountis$300/month.

• Maximumbenefitamountis$2,000/month,subjectto underwriting and any state limitations. The DIR benefit amount cannot exceed 66% of gross monthly income (40% in California) or $20 per $1,000 of life insurance. (For example, a $2,000 DIR must be attached to a base policy of at least $100,000).

• Premiumsvarywithissueageandremainlevelfor the term of the rider.

• Riderbenefitamountscannotbeincreasedordecreased after issue. However, an additional DIR may be added after issue, subject to underwriting and the maximum benefit limits .

The DIR with the two-year maximum benefit period has a 3-month waiting period. Benefits are paid retroactively after the waiting period, from the date of disability. “Disability” is defined as the insured being unable to perform the duties of his or her own occupation.*

The DIR with the five-year maximum benefit period has a 6-month elimination period with no retroactive payment. “Disability” is defined as the insured being unable to perform the duties of his or her own occupation for a period of two years, and as unable to perform the duties of any occupation for which he or she is suited for the remaining three years.

After-issue changes between the two-year and five-year riders are not permitted.

If the insured is receiving benefits under the DIR when he or she reaches age 65, the benefit payments will continue until the end of the disability or the end of the benefit period.

Note: An Attending Physician’s Statement of Disability from a licensed medical physician will be required for all claims.


Available Riders Available Riders

ExTENSION OF BENEFITS RIDER1 (EBR)This is an optional rider that provides the policy owner benefits to help cover expenses incurred for qualified long-term care services once a chronically ill2 insured’s death benefit under the policy has been depleted due to payments made under the Long-Term Care Rider or the Accelerated Benefits Rider. This rider is not available on Horizon policies that have the APB rider. Once benefits are initiated under this rider, they will continue during the lifetime of the insured as long as the insured remains eligible for benefits. The rider pays benefits equal to the actual expenses for covered services, subject to a maximum monthly limit (up to 1% of the policy face amount for nursing home or home health care – up to 0.5% for adult day care). Coverage under this rider may be purchased with or without Inflation Protection. This rider provides a non forfeiture benefit for any coverage that lapses after being in force for 3 years. The cost per unit of coverage under this rider is level and is guaranteed not to change.

See Issue Guidelines in Long-Term Care Rider section

GUARANTEED INSURABILITY RIDER (GIR)The GIR allows the insured to increase insurance coverage without evidence of insurability, during specified option periods. Regular option periods run from the 60th day before to the 31st day after the policy anniversary on which the insured reaches age 25, 28, 31, 34, 37, or 40. Additional option periods are available based on marriage, the birth/ adoption of a child, or purchase or refinancing of a home; there is a limit of two additional options. The GIR is not available on rated cases.


• GIRisavailabletothePrimaryOtherInsured(see the Other Insured Rider description) as well as to the primary insured under the policy.

• Riderstaysinforceuntilthepolicyanniversaryfollowing the insured’s 40th birthday, as long as the base policy remains in force.

• Minimumoptionamountis$5,000.

• Maximumoptionamountisthelesserof$50,000 or the insured’s life insurance amount.

• Premiumsarealevelamountperthousandof option amount, based on issue age.

LONG-TERM CARE RIDER1 (LTC)

This is an optional rider that allows the policy owner to receive a chronically ill2 insured’s death benefit in periodic payments, while such insured is still living, to help reimburse such insured’s expenses for qualified long-term care services. Benefits under this rider begin accruing after a 90-day elimination period and will continue, as long as the insured remains eligible, until the insured’s death benefit under the policy has been exhausted. The rider pays benefits equal to the actual expenses for covered services, subject to a maximum monthly limit (up to 2% of the policy death benefit for nursing home or home health care – up to 1% for adult day care). Each benefit payment will reduce the insured’s death benefit by the same amount. While benefits are being paid under this rider, policy premiums and monthly deductions will be waived. The cost per unit of coverage under this rider is level and is guaranteed not to change.

22

1 Rider names may vary by state.

2 An insured is chronically ill if a licensed health care practitioner has certified the insured as: (1) being unable to perform (without substantial assistance from another person) at least two activities of daily living for a period of at least 90 consecutive days due to a loss of functional capacity; or (2) requiring substantial supervision for a period of at least 90 consecutive days by another person to protect oneself from threat to health and safety due to severe cognitive impairment.

The activities of daily living are defined as bathing, continence, dressing, eating, toileting and transferring.


Available Riders

Issue Guidelines

The Long-Term Care Rider and Extension of Benefits Rider are subject to the following issue guidelines:

• Issueages:0–70

• AvailableonthePrimaryInsuredaswellasthe Primary Other Insured who is covered under an Other Insured Rider.

• CoverageunderanExtensionofBenefitsRiderisonly available to a primary insured or primary other insured who also has coverage under either a Long-Term Care Rider or ABR2.

• EBRisnotavailableonHorizonpoliciesthatincludethe Additional Protection Benefit Rider (APB) or the No-Lapse Guarantee (NLG) rider.

• Totallifeinsurancecoverageappliedforunderthepolicy may not exceed $1,000,000.

• Notratableandnotavailableonratedpolicies.

Please refer to the Agent Guide for LSW Long-Term Care Rider and LSW Extension of Benefits Rider, MK2582(0901), Catalog No. 63181, for more in-depth information about the rider benefits, suitability, and disclosure requirements.

NO-LAPSE GUARANTEE RIDER (NLG)Available on Horizon only.

This optional rider guarantees that the policy, including any riders, will not lapse regardless of the policy’s accumulated value so long as the policy is funded at or above the Monthly Guaranteed Premium specified by the rider. This rider does not put any additional restrictions on the loan options available to the policyholder and this rider can be terminated by the policyholder at any time.

• Issueages0-85.

• Thereisamonthlychargeassociatedwiththeriderwhich varies by issue age, sex and rate class

• TheNLGriderisavailableonpoliciesissuedwith a substandard rating

• ThisriderisonlyavailableonpolicieswithDeathBenefit Option A. Any change in the Death Benefit Option from A to B will terminate the NLG Rider

• TheOtherInsuredRider(OIR)BalanceSheetBenefitRider (BSB) and Additional Protection Benefit Rider (APB) are not available on policies with the NLG Rider

• Ridercannotbeaddedafterissue

OVERLOAN PROTECTION RIDER (OPR)Available on Harbor and Horizon only.

This rider protects your client’s policy from lapsing in situations where loan balances threaten the policy’s ability to stay in force.

If the following terms of the rider are met, the Overloan Protection Rider will restructure the policy as a “paid-up” policy so that it is guaranteed not to lapse:

• Policymustbeincorridor.

• Insuredisage75orolder.

• Policymustbeinforceforatleast15years.

•Loanmustexceedfeeamount.

•Loanexceeds95%oftheaccountvaluelessanysurrender charge.

The policy holder will be notified when eligibility require ments are met. The rider must be exercised within 60 days of the date we mail the notification. There is no additional cost until rider is exercised. Not available with CVAT.

OTHER INSURED RIDER (OIR)

The OIR provides low-cost annual renewable term insurance on an individual. The other insured may have any of the following relationships to the primary insured:

• PrimaryInsured

• Spouse

• Child

• Businesspartner

Ineligible relationships for OIR coverage include parents, grandparents, siblings and grandchildren. Up to five OIR may be added to the same base policy. One of these OIRs (spouse or business partner only) may be designated as a “Primary OIR”; additional riders are available options to the Primary OIR.

The OIR is convertible to a permanent policy without evidence of insurability at any time while the rider is in force, or upon the death of the primary insured.

23For Agent Use Only – Not For Use With The Public

Available Riders

OTHER INSURED RIDER (OIR) (continued)

• Riderstaysinforceuntiltheotherinsured’sage100,as long as the base policy remains in force.

• MinimumOIRamountmaybelessthan$25,000,but not less than $10,000, if the entire policies’ MMP is greater than $100.

• MinimumOIRamountis$25,000(ortheprimaryinsured’s face amount, if less than $25,000), for Harbor and Horizon the minimum amount is $5,000 for pension owned policies.

• WhentheinsuredunderanOIRisthesameastheinsured under the base policy, the maximum OIR face amount is two times the base face amount. Otherwise, the maximum OIR face amount is equal to the base face amount.

• Premiumsarebasedongender,rateclassand age; the same rate classes are available as for the base policy.

Benefits Available by Rider on Other InsuredsPrimary

Other Insured Rider

Non-primary Other Insured

RiderAccelerated Benefits Rider 1

Yes Yes

Accelerated Benefits Rider 2

Yes Yes

Accelerated Benefits Rider 3

Yes Yes

Accidental Death Benefit Yes No

Children’s Term Rider No No

Disability Income Rider Yes No

Guaranteed Insurability Rider

Yes No

Unemployment Rider No No


No No

Waiver of Target Premium Rider

No No

Long-Term Care Rider Yes No

Extension of Benefits Yes No

QUALIFIED PLAN ExCHANGE PRIVILEGE (QPEP) RIDERAvailable on Harbor and Horizon only.

For Qualified Pension and Profit Sharing Plan trust owned life insurance, the QPEP rider allows the policy to be surrendered while owned under the qualified plan and elect to have a new policy written outside of the qualified retirement. The face amount of the new Policy cannot be more than the face amount, less the policy’s cash value, of the policy being surrendered on the date of exchange. The maximum face amount under the new policy cannot exceed $2,000,000 and must be at least $25,000.

No evidence of insurability will be required and the new policy will be issued based on the age the insured has attained on the date of the exchange. The class of risk under the new Policy will be the same as under the pension policy. The new policy date will be the date of the exchange. The new Policy will be issued on a policy form and at a premium rate for the insured’s attained age in use by the Company on the New Policy Date.

UNEMPLOYMENT RIDER (UR)

The Unemployment Rider provides for a one-time lump sum payment into the policy after the insured has been involuntarily unemployed from full-time employment. This rider is automatically included on all non-pension universal life policies issued in states where it is approved. When the primary insured is involuntarily unemployed for three consecutive months, and submits proof such as state or federal unemployment certification, a termination notice or union certification, we will pay three months’ “target” premium into the policy’s accumulated value. (The target premium is the monthly planned premium, up to 1/12 of the policy CTP.) The policy must be in force when the unemployment begins, and must remain in force during the waiting period.


• Riderstaysinforceuntilthepolicyanniversaryfollowing the insured’s 65th birthday, as long as the base policy remains in force.

• Thebenefitwillbepaidonlyonce.

• Thereisnopremiumforthisrider.

For Agent Use Only – Not For Use With The Public24

Available Riders

WAIVER OF SPECIFIED PREMIUM (WSP) RIDERAvailable on Harbor and Horizon only.

Waiver of Specified Premium Rider, available on Harbor and Horizon, allows your client to determine how much of their premium will be waived in the event they become totally disabled. The WSP Rider has a six month elimination period. Thereafter, the monthly benefit amount will be paid as a premium into the accumulated value of the policy during the continuance of the disability.

• IssueAges:15-55(agenearestbirthday)

• MinimumAnnualBenefit: Annualized minimum monthly premium less the annualized minimum monthly premium for the Waiver of Specified Premium Rider.

• MaximumAnnualBenefit: Face Amount <$250,000: lesser of Planned Periodic premium and the CTP excluding the waiver rider. Face amount ≥$250,000: Lesser of planned periodic premium and the guideline level premium (GLP) excluding the waiver rider.

• Themonthlychargeforthisriderwillbethe specified rate multiplied by the waiver of premium benefit amount.

• Thisriderstaysinforceuntilthepolicyanniversaryfollowing the date the insured reaches age 60.

• Notavailableonsinglepremiumpolicies.

• Notavailablewithatableratinggreaterthan200% or on policies with a flat extra greater than $5.00 per thousand.

After Issue Changes

The waiver benefit amount will be increased after issue if additional optional benefits results in a minimum benefit amount that exceeds the current benefit amount. Whenever this happens, the waiver benefit amount will be increased to the new minimum benefit amount. The original premium rate will continue to apply to the increased benefit amount.

WAIVER OF TARGET PREMIUM (WTP)Available on Foundation only.

Waiver of Target Premium, available on Foundation, pays a waiver of premium benefit as a premium into the policy’s accumulated value – when the insured is totally disabled. If the policy lapses while this benefit is being paid, the benefit will be paid directly to the policy owner until the disability ends. There is a six-month elimination period from the date of disability before benefits begin. The benefit amount is the “target” premium (the monthly planned premium, up to 1/12 of the policy CTP).

•Issueages15-55

•Riderstaysinforceuntilthepolicyanniversaryfollowing the insured’s 60th birthday, as long as the base policy remains in force

•Thebenefitamountistheentirepolicytargetpremium, including any attached riders.

•Premiumsarealevelamountperdollaroftargetpremium, based on age

If the policy holder has the WTP Rider on a policy, any application for an increase on face amount should include additional WTP coverage also, unless the insured is past the WTP age limit.

Benefits may not be mutually exclusive and the use of one benefit may affect the availability of another.

For Agent Use Only – Not For Use With The Public 25

Life Insurance Company of the Southwest was incorporated in 1955. We are licensed in 49 states and the District of Columbia, with our home office in Dallas, Texas.

LSW specializes in life insurance and annuity products. Our rating from A.M. Best Company, the oldest rating agency in the industry, is a good reflection of LSW’s strength.

Best ratings represent an independent opinion of a company’s financial strength and ability to meet its obligations to policyholders. Best gives LSW an

“A” (Excellent) rating; this is the third highest of 16 rating categories.*

LSW is a wholly owned affiliate of National Life Insurance Company based in Montpelier, Vermont. National Life was founded in 1848 and for over a century and a half has provided insurance protection to individuals, families and businesses.

*As of 11/08, ratings are subject to change without notice.

HomeOffice:Dallas,TX;AdministrativeOffice:OneNationalLifeDrive,Montpelier,VT05604•(888)297-3990 www.nationallife.com

National Life Group® is a trade name of National Life Insurance Company and its affiliates. Each company of the National Life Group is solely responsible for its own financial condition and contractual obligations. LSW is not authorized to sell insurance in New York and does not do any insurance business in New York.


63933MK3179(0808)TC40166(0808) For Agent Use Only – Not for Use with the Public

SecurePlus Paragon MarKeTing gUiDe

• designedtocomplementtheexistingLSWindexedproductportfolio

• apotentialsolutionforthemostcompetitivepersonalsalessituations

• hastheflexibilitytomeetmanydemandingbusinesscasescenarios

• forproducersandtheirclientswhoexpectmorefromlife

TableofContents

SecurePlus Paragon

Features and Benefits ......................5

Product at a Glance ........................ 6

What is Indexed Universal Life?..... 7

Sales Scenarios ............................... 8

Who Are Your Clients? ................... 8

Interest Crediting Methodology .... 15

Product Specifications ..................18

Available Riders .............................21

3For Agent Use Only – Not for Use with the Public

SecurePlus Paragon, the latest addition to the Life Insurance Company of the Southwest (LSW) Indexed Product Portfolio.

SecurePlus Paragon offers…•�Aflexiblepremiumuniversallifepolicywithanindexedinterestcreditingfeature

•�HighlycompetitivelifetimerollingTargetPremiums

� •��Fiveinterestcreditingstrategieswiththechoiceofafixed intereststrategyandfourindexstrategies

� •��Forbusinessplanningsales,theoptionforhighearlycashvaluesthroughthe BalanceSheetBenefitRider

� •��DeathBenefitBlendingOptionsforlowerpremiumoutlaythroughthe AdditionalProtectionBenefitRider

� •�1035Exchangeswithloans

� •�Revolutionaryno-additional-costAcceleratedBenefitRiders

� •�Tenyearsurrenderchargeschedule

� •�VariableandFixedLoanOptionswiththeOverloanProtectionRider

� •�Fullcustomizationwithavailableriders

SecurePlus Paragon

4 For Agent Use Only – Not for Use with the Public

Ridersareoptionalandmaybeavailableatadditionalcost.Ridersarenotavailableinallstates.PaymentofAcceleratedBenefitswillreducetheCashValueandDeathBenefitotherwisepayableunderthepolicyandmayresultinataxableevent.

SecurePlus Paragon

Five Interest Crediting Strategies: SecurePlusParagonoffersfivechoicesofinterest creditingoptions:

• OneFixedInterestcreditingstrategy

• FourIndexCreditingstrategiesbasedonthechangesintheS&P500® Index.

Yourclientscanselectoneormultipleindexstrategies.RegardlessofhowtheyfeeltheIndexwillmove,theycanselectstrategiesthattheythinkwillworkbestforthem.

Overloan Protection Rider: Thisriderhelpspreventyourclient’spolicyfromlapsinginsituationswhereloanbalancesthreatenthecontract’sabilitytostayin-force.

Policyloans*fromSecurePlusParagonaregenerallyreceivedincome-taxfree.Ifthepolicylapses,withoutstandingpolicyloans,therecouldbetaxableincometothepolicyholder.Intheeventloanbalancesthreaten thecontract’sabilitytostayinforce,andifthetermsoftherideraremet,theOverloanProtectionRiderwillrestructurethepolicysothatitisguaranteednottolapse.

Additional Protection Benefit Rider (APB): APBmayincreasethetotaldeathbenefitandcashvaluewithoutsignificantlyincreasingthecost.

TheAPBriderprovidesadditionalpermanentcoverageontheprimaryinsuredatacostthatisgenerallylowerthanthecostofthebasecoverage.

Balance Sheet Benefit Rider: Thisriderprovidesearlydurationenhancedpolicy surrendervalueswhichincreasethepolicy’scollateral valueforbusinessaccountingassurrenderchargesmayreducethepolicy’scashvalueinearlyyears.

Thisriderwasdesignedforuseinbusinessplanningcases.Whenfundinganemployeebenefitprogram,thisridermayhelpwherethereisaneedforhighercashsurrendervalueintheearlypolicyyears.

Guarantees:** Aguaranteedminimuminterestrateof2.5%. Clientscanbeassuredthatregardlessofthechanges

intheS&P500®index,policyvalues,atdeathorfullsurrenderwillreflectaguaranteedaccumulatedvaluecalculatedat2.5%***.

Features & Benefits


SecurePlus Paragon

*Policyloansandwithdrawalsreducethepolicy’scashvalueanddeathbenefitandmayresultinataxableevent.ExceptinthecaseofaModifiedEndowmentContract(MEC),withdrawalsuptothebasispaidintothecontractandloansthereafterwillnotcreateanimmediatetaxableevent,butsubstantialtaxramificationscouldresultuponcontractlapseorsurrender.ForMECs,contractloansandwithdrawalsareconsideredtaxableincome.

**Guaranteesaredependentupontheclaims-payingabilityoftheissuingcompany.

***Minusanyapplicablesurrendercharges.

6

Product at a GlanceIssueages: 0–85(agenearestbirthday)

MinimumFaceAmount: $100,000(BaseFaceAmountplusAPBFaceAmount)

MinimumAPBFaceAmount: $25,000

MaximumAPBFaceAmount: Ninetimesbasefaceamount

MaximumFaceAmount: Amountsgreaterthan$3,000,000subjecttopriorapproval

RateClasses: ElitePreferredNon-TobaccoUser(issueages20–75) PreferredNon-TobaccoUser(issueages20–85) StandardNon-TobaccoUser(issueages0–85) PreferredTobaccoUser(issueages20–85) StandardTobaccoUser(issueages20–85) StandardNon-TobaccoUserwillbeusedforinsuredsages0–19

Substandard: TableratingsandflatextrasareavailablewithStandard Non-TobaccoUserandStandardTobaccoUserclasses.

Temporaryflatextrasareavailablewithanyrateclass.

MinimumPremium: $25.00/month

SurrenderSchedule: 10yearchargeschedule

ExpenseCharges: Basedonage,sex,rateclass,andfaceamount Policyfee:$5permonth Premiumload:6%ofpremium

PolicyLoans: Availableafterthefirstpolicyyear,bothvariableandfixed

Withdrawals: Availableafterthefirstpolicyyear

1035ExchangeswithLoans: Availableloanbalancescanaccountforupto50%ofthegrosstransferredamount

Ridersavailable (whereapproved):

AcceleratedBenefitsRiders(Terminal,Chronic,andCriticalIllness) AccidentalDeathBenefitRider AdditionalProtectionBenefitRider BalanceSheetBenefitRider Children’sTermRider DisabilityIncomeRider(2-yearand5-year) ExtensionofBenefitsRider GuaranteedInsurabilityRider Long-TermCareRider OtherInsuredRider OverloanProtectionRider UnemploymentRider WaiverofTargetPremium

For Agent Use Only – Not for Use with the Public

Consider the following features shared by all universal life contracts…

Flexibility–Acustomercandecidehowmuchlifeinsuranceheorsheneeds(subjecttocertainrequirementsandlimitations).Thedeathbenefitandpremiumpaymentcanalsobeadjustedtoaccommodatechangingneeds.

Security–Beneficiariesareprotectedagainstpossiblefinancialhardshipintheeventoftheinsured’sdeath.

Tax-deferred account value growth–Thecontract’saccountvalueearnsaninterestcreditingratewhichisaccumulatedincome-taxdeferred.

Tax-free death benefit–Undercurrenttaxlawsgoverningindividuallifeinsurance,lifeinsuranceproceedsaregenerallypaidincome-taxfreetothebeneficiary.

Tax-free distributions–Undercurrenttaxlawsgoverningindividuallifeinsurance,lifeinsurancecashvaluesaccessedvialoansaregenerallypaidincome-taxfree.

IUL Interest Crediting (Upside Potential)InatraditionalULcontract,interestiscreditedbasedontheperformanceofinvestmentsmadebytheinsurancecompany(usuallyinhighqualitybondsandmortgages).InanIULcontract,thecustomerhasthisfixedinterestoptionaswellastheoptiontohaveinterestcreditedbasedonthechangesintheS&P500®Index.*

IUL Guarantees (Downside Protection)EachIndexSegmenthasa1-yearterm.DuringthatperioditisexpectedthatthevalueoftheS&P500®willchange,eitherpositivelyornegatively.Intheeventthatmarketvaluesdecline,SecurePlusParagonhasabuilt-in0%interestcreditingfloor.ThismeansthatnomatterwhathappenstothechangeintheS&P500®valueseachyear,policyvaluescanneverbelostduetoadeclineintheIndex.SecurePlusParagonprovidesadditionaldownsideprotectionwithalifetime2.5%guaranteedinterestcreditingratewhichwillbeappliedincaseofdeathorfullsurrenderonlyifthepolicyreturnislessthanthe2.5%guarantee.

At its very basic, indexed universal life (IUL)

is the same as traditional universal life (UL)

with a different way to credit interest.

What is Indexed Universal Life?

7For Agent Use Only – Not for Use with the Public*ThePolicydoesnotdirectlyparticipateinanystockorequityinvestment.

Specifically, customers who have a need for life insurance, and who:

•focusoncashvaluewiththepossibilityofaccessingpolicycashvaluesatalaterdate,ifavailable;

•arewillingtogiveupsomeguaranteesoftenfoundinotherfixedlifeinsurancecontractsfortheupsideinterest-creditingpotentialanddownsideriskprotection.

IULhasacustomerriskprofilethatliessomewherebetweenafixedULcontractandavariableULcontract.Becauseofthis,anIULcontractisgenerallylessvolatilethanavariableULcontract.

Individual Insurance PlanningClientswhoarelookingfordeathbenefitprotectionandtheaccumulationofcashvaluetoassistwitheducationcosts,and/orprovidesupplementalretirementincomearecandidatesforthisproduct.Thetax-deferredaccumulationofcashvalueandtax-favoreddistributionsmakesSecurePlusParagonaneffectivevehicletobuildcashvalue.Clientsalsomaywanttousetheircashvaluetoreducepremiumpaymentsduringtheirretirementyearsandthepotentialforhighercashvalueaccumulationcanimprovetheirabilitytodoso.

Estate PlanningLargeestatescanbeexposedtosignificantsettlementcostswhetherthroughgiftorestatetaxes,probateexpenseorcoststoadministertheestate.SecurePlusParagon’sdeathbenefitprovidesliquiditytohelpcoverthesecostsandprotectassetsthatmayotherwisehavetobesoldinlessthanidealconditions.

Onthefollowingpageswehighlighthypothetical“client”scenarioswhichexplainhowSecurePlusParagoncanhelpyourclientsachievetheirindividualandbusinessinsuranceplanningobjectives.

Business MarketLifeinsuranceisoftenthepreferredchoiceinfundingbuy-sellagreements,executivebonusplans,andnon-qualifieddeferredcompensationarrangements.Byprovidingpremiumflexibility,upsidecashvalueperformancethroughtheindexedstrategyaccountsandoptionalbenefitstohelpprotectkeyemployeesandtheirfamilies,SecurePlusParagonisidealforbusinessplanningsituations.

“ Upside Potential with Downside Protection.”

Indexed Universal Life – Who Are Your Clients?

Sales Scenarios


SecurePlus Paragon for Survivor ProtectionDeath Benefit Protection•Providecashthefamilyneedstopayoffdebt,meetmonthlyobligations,andmaintaintheirlifestyle.

•Ensurethatfundswillbetheretohelppaythechildren’sfuturecollegeexpenses.

Lifetime Access to Cash Values•Cashvaluewhichcanbeaccessedtopayforunplannedexpensesortomeetshorttermincomeneeds.

•Supplementretirementincome.

•WaiverofTargetPremiumRiderupontotaldisability.

Benefits for Chronic or Terminal Illness*

•Moneyforaterminal,chronic,orcriticalillness.

•Payforcostsassociatedwithhomehealthcare,medicalprocedures,drugtherapiesandotherqualityoflifeexpenditures.

*BenefitsreceivedfromexercisingtheAcceleratedBenefitsRidermaybeusedforanypurposeandarenotlimitedtoillness-relatedexpenses.

SecurePlus Paragon can be designed as a high death benefit contract ideal for successful individuals who need a substantial amount of protection.

Yourclientsareraisingfamilies,savingforcollege,andplanningforretirement.Theyalsounderstandtheneedtoprotecttheirfamiliesandassetsagainstfinanciallossbroughtonbyprematuredeath.

However,theywantlifeinsuranceprotectionthatcanchangeastheirneedschange.

UseoftheAPBridermayincreasethetotaldeathbenefit andcashvaluewithoutsignificantlyincreasingthecost.

SecurePlusParagonFocusonSurvivor Protection

Consumerflyeravailableforpresentationonsurvivorneeds–catalog#63731.


Protecting the ones who depend on you

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Permanent life insurance provides:• An income tax-free death benefi t for your family should you die prematurely;• Access to cash values, through loans and withdrawals,�• Access to cash values, through loans and withdrawals,�• Access to cash values, through loans and withdrawals, to meet emergencies, take advantage of opportunities,

or draw an income stream;• Tax-deferred build-up of policy cash values.

Protect the people who depend on you today, plus, build a solid foundation for the future

Experience Life™

Protect

You may need a strategy that helps protect your family in the event of your premature death by providing an income tax-free death benefi t.

Bills Education expenses

MortgageFinal expenses

Life insurance death benefit

to meet emergencies, take advantage of opportunities,

Experience Life™

Protecting The Ones Who Depend On YouHere’s how your premium dollars can providefinancial security for your family.

• Your beneficiary will receive the death benefit income-tax free and without the delay of probate.• The death benefit can be received either:- In a single lump sum, or

- As a stream of income, or

- Some combination of both — a partial lump sum to cover final expenses with the balance used toprovide a monthly income.

Protect your future today — your loved ones depend on you

BillsMortgage

Educationexpenses Final expenses




$765


$765


$765


$100,000


$100,000


$100,000


Death Benefit


Death Benefit


Death Benefit


payable monthly.


payable monthly.Policies are underwritten by National Life Insurance Company, Montpelier, VT. The benefits and values are not guaranteed, the assumptions of which they are









SampleICSoutput:

For Agent Use Only – Not for Use with the Public 9

Survivor Protection plus tax-efficient Cash Value accumulation •DeathBenefitProtectioncompletesthisaspectofthe

retirementfundingintheeventofprematuredeath.

•Fundingattheguideline/MEClevelswillprovideoptimalcashvalueaccumulationpotential.

•Policyloansandwithdrawalsmaybereceivedincome-taxfree.

•ChoicebetweenFixedandVariablenetcostloanoptions.

•OverloanProtectionRiderforwhenloanbalancesthreatenthecontract’sabilitytostayin-force.

SecurePlus Paragon can also be structured as a cash value contract that can be ideal for successful individuals who need both protection and a strategy for accumulating assets on a tax-efficient basis.

Yourclientsmaybelookingforatax-favoredwaytofurtherdiversifytheirsavings.SecurePlusParagoncanbeawaytoensurebothdeathbenefitprotectionaswellastax-efficientgrowthofpolicycashvalue.Cashvaluethatyourclientscanaccess,whentheyneedit,onatax-favorablebasis.

SecurePlusParagonFocusonCash Value Accumulation

Consumerflyeravailableforpresentation oncashvalueaccumulation–catalog#63733.


Helping achieve lifetime income needs

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Put the power – and tax advantages – of permanent life insurance to work for you today

Experience Life™

Build

Each Premium Payment You Make:

Builds cash value income-tax deferred

Provides your family with an income-tax free death benefit that they can use to:

Cash value you can use during your lifetime, through income-tax free policy loans and withdrawals, for such needs as:• Meeting financial emergencies• Paying for a child’s college expenses, and• Creating a stream of income for retirement

How permanent life insurance can help you achieve your present and future fi nancial goals:

Pay taxes and other final expenses

Pay education expenses for your children

Maintain their lifestyle and protect their future financial security

Experience Life™





terminal condition.





$37,300


$37,300


$37,300



$208,840



$208,840



$208,840



$208,840



$32,486



$32,486



$32,486



$32,486



$241,326










SampleICSoutput:

For Agent Use Only – Not for Use with the Public10

Providing for heirs and protecting assets from expenses associated with a chronic, critical or terminal illness with: AcceleratedBenefitsRider(ABR)* • Chronic • Critical • Terminal

Riderbenefitsthatcanprovidecashfor: • LivingExpenses • NursingHomeCare • HomeHealthCare • AdultDayCare • MedicalProcedures • DrugTherapies • HouseholdExpenses,and • QualityofLifeExpenditures

Thereisnorestrictionplacedontheuseofthebenefitreceived.

*ReceiptoftheAcceleratedBenefitswillreducethecontract’scashvalue anddeathbenefit.

Protecting against financial loss brought on by the death of an income earner can be crucial. One of the biggest risks for financial loss is the possibility of a chronic, critical, or terminal illness.

Healthinsuranceplansmaynotcovercostsassociatedwithachronic,critical,orterminalillness.

Whichexplainswhyindividualsarelookingforastrategythatwillnotonlyhelpprotectthemfinanciallyagainstpotentialterminal,chronic,orcriticalillness,butalsogivethemoptionsiftheyneverrequirethatprotection.

SecurePlusParagonFocusonLiving Benefits

Consumerbrochureavailableforpresentationonlivingbenefits–catalog#62824.


Did you know:•Aboutevery26seconds,anAmericanwillsufferacoronaryevent,andabouteveryminutesomeonewilldiefromone1.

•Onaverage,every40secondssomeoneintheUnitedStateshasastroke1.

•Atage65,theoddsarenearlyoneintwothatyouwillrequirenursinghomeservicesforatleast2.5years2.

1AmericanHeartAssociation,AmericanStrokeAssociation, HeartDiseaseandStrokeStatistics,2008update.

2Medicare,USDepartmentofHealthandHumanServices,2007.

Liv ing Benef i ts A Key to Life Insurance

62824 MK2333(0307) TC30498(0307)


SecurePlus Paragon can provide them with similar benefits as an annuity but with the added protection of:1

•Anincome-taxfreedeathbenefitthatwillbesubstantiallygreaterthanthepremiumdollarsusedtopayforit,allowingthemtoprovideagreaterlegacytotheirheirs;and

•Ridersthatallowaccesstothedeathbenefitifdiagnosedwithachronicorterminalillness.2

Withoutproperplanning,asmuchas70%3ofyourclient’sassetscouldbelosttotaxes.SecurePlusParagonprovidesanincome-taxfreedeathbenefitthatcanleveragetheirassetsandincreasetheamounttheyleavetotheirfamily.

1Onlyanannuityguaranteestheprincipalpaidintothecontract. Withthelifeinsurancepolicy,itcouldlapsefromnotpayingthepremiums.

2UseoftheAcceleratedBenefitswillreducethepolicy’scashvalueand deathbenefit.

3Assumesqualifiedasset;currentincometaxbracketof36%;post2010estatetaxbracketof55%;applicableexclusionisnotappliedtothisasset.

As they approach retirement, most people want to ensure that the assets they’ve accumulated will not only last for the rest of their lives, but upon their death, will be passed to their heirs quickly, privately, and as tax-efficiently as possible.

Thatputsclientswho’veaccumulatedsizeableretirementassets–andwhodon’tneedthemtomeettheirongoinglivingexpenses–inadifficultposition.

Byusingdistributionsfromaccumulatedassets,whetherqualifiedornon-qualified,topurchaseaSecurePlusParagonpolicy,clientscanleveragethoseassets,whichmaylosesubstantialvalueatdeathduetotaxes,allowingthemtoincreasetheamounttheyleavetotheirfamily.

SecurePlusParagonFocusonWealth Transfer

Consumerflyeravailableforpresentation onLeveragedAssetTransfer–catalog#63745.


Dol

lars

Years

1 5 10 15 20 25

Without Planning Leveraged Asset Transfer Plan

Leveraged Asset Transfer

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Leverage your assets through the purchase of life insurance.By leveraging your asset transfer plan with life insurance, you can replace assets that may lose substantial value at your death due to taxes, allowing you to increase the amount you leave to your family.

Experience Life™

Transfer

Without proper planning, as much as 70% of your assets could be lost to taxesAssumes qualifi ed asset; current income tax bracket of 36%; post 2010 estate tax bracket of 55%; applicable exclusion is not applied to this asset.

You want your family to enjoy the benefi t of your assets, while retaining control over how and when they receive them.

Experience Life™

* Life policy is owned outside of insured’s estate.

Leverage Asset TransferPermanent Life InsurancePreserving your assets and creating greater wealth transfer

Insuring Your Wealth Transfer Plan:• Withdrawals are taken from the account and gifted outside of your estate.• Gifts are then used to pay an insurance premium.• Insurance provides an income tax free death benefit – and is not included in your taxable estate.• Insurance proceeds replace assets used to pay taxes and final expenses.• Remaining proceeds are paid to your family or favorite charity.

If your wealth transfer plan is not insured…the assets you intend to leave your family may need to be used to paytaxes and final expeneses — resulting in a smaller legacy for your family

1 11 22 34 45

$400,000$360,000$320,000

$280,000$240,000$200,000

$160,000$120,000

$80,000$40,000

0

Current Net To Heirs Proposed Net To Heirs*

YearCurrent

Net To HeirsProposed

Net To Heirs1st $ 56,980 $211,66511th 81,155 223,39522th 108,149 243,94234th 81,647 206,86545th 45,204 155,881

The use of gifts and trusts involves complex tax rules and regulations. You are advised to consult with your legal or tax advisor prior to implementing

any estate planning strategy.





























SampleICSoutput:


SecurePlus Paragon for Key Person ProtectionDeath Benefit:

•��Providesfundsneededtohireandtrainnewemployees. •��Replaceslostprofits.

Tax-Deferred Cash Value which can be: •��Accessedtofundunplannedbusinessexpenses. •��Usedforsupplementalretirementincome.

Disability Protection •��WaiverofTargetPremiumRiderupontotaldisability

oftheKeyEmployeewillcontinuetofundthepolicy.

Benefits for Chronic or Terminal Illness •��AcceleratedDeathBenefitifthekeyemployee

becomeschronicallyorterminallyill*.

•��CompanycanchoosetokeepABRbenefitspaidorpayKeyEmployee.BenefitspaidtoKeyEmployeewillbereceivedasordinaryincome.

*ReceiptoftheAcceleratedBenefitswillreducethecontract’scashvalue anddeathbenefit.

Much of a business’ success depends on their key people. Whether it is a part owner or an important employee, the business must plan for the continued success in the event of the loss of their key person’s expertise.

Youcanhelpyourclientsindemnifythefinanciallosstheirbusinesswouldexperienceattheprematuredeathofakeyemployee.KeyPersoninsurancecanbeusedtokeeplinesofcreditopen,trainanotheremployeeforthesamespecializedskillsandexpertise,andhelpassurethecompletionofongoingprojectsandinitiatives.

ConsidertheuseoftheBalanceSheetBenefitRiderforwhenthecompanyneedstodemonstrateahighratioofCashSurrendervalueforpremiumoutlayonthecompany’sbalancesheet.

SecurePlusParagonFocusonKey Person Protection

Consumerflyeravailableforpresentation onKeyPersonProtection–catalog#63866.


Key Person Life Insurance

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You want to make sure that your business continues to be successful, even if you lose their expertise.

The advantages of this strategy:• Life insurance lets you reduce, or even eliminate, some of the risk your business may face following the death

of a key employee.

• The costs, expenses, and potential loss of revenue resulting from the death of a key employee are no longer unexpected or unmanageable.

• Funds are available to hire and train a new employee.• The plan is completely selective – cover only those employees you feel are most important to the ongoing success

of your business.

• Life insurance benefi ts are received income-tax free by the business.

Business purchases life insurance policy on key employee

Life insurance company issues policy covering key employee

At death of key employee, income-tax free death benefit paid to business

Experience Life™

If the success of your business depends on a few key people…

Protect

f the risk your business may face following the death

esulting from the death of a key employee are no longer

ployees you feel are most important to the ongoing success

Experience Life™

Protecting Your BusinessHere’s how your premium dollars can providefinancial security for your business.

A stategy to help:• Reduce the risk your business will face following the death of a key employee.• Cover costs, expenses and potential loss of revenue.• Provide funds to recruit, hire and train a new employee.

Protect your business today against the future loss of a key employee

Recruit and hirereplacement Use for business

cash needs

Replacelost profits

Collateralfor securingfuture loans

Supplement keyemployeeretirement

Keep creditlines open

OR

EmployerAnnual Outlay

$816


$816


$816

Assumes Client’s Death At Age 65$100,000

Death Benefit


Death Benefit


Death Benefit

In Year 10

$3,976Projected Cash Value

In Year 10


In Year 10











SampleICSoutput:


Business Insurance Planning with a Focus on High Early Cash ValueTheBalanceSheetBenefitRiderisalsoidealforsuchbusinessinsuranceplanningas: •ExecutiveBonusplans

•LeveragedBonusplans

•KeyPerson

•Buy-Sell

TheBalanceSheetBenefitRideroffersapermanentinsurancesolutiontobusinessplanning.

SecurePlus Paragon combined with the Balance Sheet Benefit Rider is structured for fringe benefit planning.

Yourbusinessownerclientsmaybeconsideringanon-qualifiedretirementplantosupplement(orasanalternative)theirqualifiedplan.SecurePlusParagoncombinedwiththeBalanceSheetBenefitriderisafundingsolutionfortheirplan.

Lifeinsuranceisoneoftheonlyfinancialvehiclesthatacompanycanownandhavecashvaluesgrowtax-deferred.ThroughtheadditionoftheBalanceSheetBenefitrider,thepolicycanbedesignedtohaveacashsurrendervalueashighas90%ofthepremiumspaidwhichishighlydesiredforbusinessaccountingpurposes.

SecurePlusParagonFocusonEmployee Fringe Benefit Planning

BusinessLifeCycleFlyer–catalog#63905:


Deferred Compensation Planning

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057(

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)

The advantages of this strategy:• Key employee is able to defer income taxes to a future year.• Provides employee benefi ts on a discriminatory basis.• Compensates key employee for inadequate 401(k) deferral opportunities.• May be used to attract and retain key employees.• Can provide supplementary retirement benefi ts through policy loans.

Business and key employee enter into deferred compensation agreement

Business purchases a permanent life insurance policy insuring the life of the key employee

Policy cash value can be a source of benefits paid to key employee at retirement

At employee’s death, life insurance company pays tax free death benefit to business

Business can use the death benefit to continue paying benefits to key employee’s beneficiary

Experience Life™

Optimize

The success of your business depends on the expertise of a few key employees…

How do you reward and retain the people who are essential to keeping your business successful?

Business can use the death benefit to continuepaying benefits to key employee’s beneficiary

Experience Life™




terminal condition.





$37,300


$37,300


$37,300



$208,840



$208,840



$208,840



$208,840



$32,486



$32,486



$32,486



$32,486



$241,326










SampleICSoutput:

Sales Scenarios


Basic StrategyAllpremiumspaidbytheclientareallocatedintotheBasicStrategyandarateofinterestdeclaredbythecompanyiscreditedtotheaccount.ThisratefortheBasicStrategyisguaranteedtobenotlessthan2.5%.

TheBasicStrategymustmaintainaminimumvalue.Thisminimumvalueisdeterminedatthestartofeachpolicyyearandisanestimateoftheamountrequiredtofundthemonthlydeductionsforthepolicyyear.Thisamountwillchangeeachpolicyyearonthepolicyanniversary.

Oncepermonth,onthe21st,anyBasicStrategyvalueinexcessoftheBasicStrategyminimumvaluewillbetransferredtotheotherstrategiesbasedontheallocationspecifiedbythepolicyholder.

Interest Crediting StrategiesLSW’sSecurePlusParagoncontracthasfivedifferentinterestcreditingstrategiesavailabletoprovidemaximumflexibilityforyourcustomer.Thesestrategiesare:

1.TheFixed-TermStrategy

2.Point-to-Point,CapFocusIndexStrategy

3.Point-to-Point,ParticipationRateFocusIndexStrategy

4.Point-to-Point,NoCapIndexStrategy

5.Point-to-AverageIndexStrategy

Fixed-Term StrategyEachtransfertotheFixed-TermCreditingStrategycreatesadistinctfixed-termsegment.

Eachfixed-termsegmentwillhaveacreditingperiodofoneyear.Arateofinterestdeclaredbythecompanyiscreditedtotheaccountdaily.Theminimumrateofinterestcreditedis2.5%.Attheendofeachfixed-termsegmentperiod,thefundswillbetransferredbacktothebasicstrategy.

Available Index StrategiesPoint-to-Point, Cap Focus Index Strategy TheCapFocusIndexStrategyguaranteesthattheParticipationRatewillalwaysbegreaterthanorequalto100%.ThisstrategywillalwaysprovideahigherCapthantheParticipationRatefocusedIndexstrategy.TheguaranteedminimumCapis3.1%.

Point-to-Point, Participation Rate Focus Index StrategyTheParticipationRateFocusIndexstrategyguaranteesthattheParticipationRatewillbeatleast110%.SincethisstrategyisdesignedtoprovideahigherParticipationRate,itwillhavealowerCap.TheguaranteedminimumCapis3.0%.

Point-to-Point, No Cap Index StrategyTheNoCapIndexstrategyappliesnoCapandis,therefore,balancedbyalowerParticipationRate.TheguaranteedminimumParticipationRateis25%.

The Point-to-Average Index StrategyThePoint-to-AverageIndexStrategyisguaranteedtohavenoCap.TheguaranteedminimumParticipationRateis30%.

Interest Crediting Methodology



Index StrategiesEachtransfertoanIndexStrategycreatesadistinctIndexSegment.EachIndexSegmentwillhaveacreditingperiodofoneyear.IndexEarningsarecreditedtoeachIndexSegmentattheendofthecreditingperiod.EachIndexSegmentwillhaveaParticipationRateandaCap,whichisdeterminedinadvanceforeachcreditingperiod.

TheIndexforthestrategieswillbetheS&P500®.OneachanniversaryofanIndexSegment,theIndexGrowthforthatsegmentwillbecalculatedasafunctionofthechangesintheIndexoverthecreditingperiod.

InterestEarningsforeachIndexSegmentarecalculatedattheendofthecreditingperiodofsuchsegmentasfollows:

1. IndexGrowthmultipliedbythesegment’sParticipationRate,adjustedsothattherateisnogreaterthanthesegment’sCap,andnolessthan0%;multipliedby

2.ThevalueintheapplicableIndexSegment.

SecurePlusParagonhasthreePoint-to-PointIndexStrategiesandaPoint-to-AverageIndexStrategy.

The Point-to-Point methodmeasuresthechangeintheindexvaluefromthestartofthesegment(StartingIndexValue)tothevalueoftheIndex12monthslater(EndingIndexValue).ThechangeintheindexvalueisdividedbytheStartingIndexValuetodeterminetheIndexGrowth.

TheIndexGrowthisthenmultipliedbytheParticipationRate(theresultingvaluewillneverbelessthanzero).TheParticipationRateistheratethatthepolicyholdersharesintheIndexGrowth.OncetheParticipationRateisappliedtotheIndexGrowth,theresultiscomparedtotheCap.InnoinstancewilltheearningsforthesegmentexceedtheCap.

Forexample,let’sassumeanIndexSegmenthasaParticipationRateof100%andaCapof12%.IftheIndexGrowthis10%,theIndexSegmentwouldbecredited10%(10%increasetimesa100%ParticipationRatefallsbelowthe12%Cap).

The Point-to-Average methodmeasuresthechangeinindexvaluefromtheStartingIndexValuetotheDailyAverageoftheIndexoverthenext12-monthperiod.ThedifferencebetweentheDailyAverageoftheIndexandtheStartingIndexValueisdividedbytheStartingIndexValuetodeterminetheIndexGrowth.

TheIndexGrowthisthenmultipliedbytheParticipationRate(theresultingvaluewillneverbelessthanzero).ThereisnoCapforthisstrategy.

Forexample,assumeanIndexSegmenthasaParticipationRateof110%.IftheIndexGrowth,comparingtheStartingIndexValuetotheDailyAverageoftheIndex,is10%,thatIndexSegmentwouldbecredited11%(10%increasetimes110%ParticipationRatewithnoCap).

Annual ResetAttheendofeachindexsegmentperiod,thefunds,includinganyinterestcredits,willbetransferredbacktothebasicstrategyforreallocation.

TheStartingIndexValuesareresetaftereachreallocation.ThisensuresthatdecreasesintheS&P500®Indexdonothavetobemadeupbeforeadditionalinterestcanbeearned.


Indexed Interest Crediting – Glossary of TermsAnnual Reset:meansthatattheendofeachIndexSegmentYear,theStartingIndexValueforthatPolicySegmentwillberesettotheEndingIndexValuefromtheprioryear.

Basic Strategy: theaccountwhereallpremiumsareinitiallydeposited.ChargesaretakenfromtheBasicStrategy.IfvalueintheBasicStrategyisnotenoughtocoverthecharges,chargeswillbeallocatedtotheFixed-TermStrategyandthentheIndexStrategies.

Basic Strategy Sweep Date: the21stofthemonth.ThisisthedatethatfundsintheBasicStrategy,inexcessoftheminimumvalue,willbeallocatedtothechosenInterestCreditingStrategies.

Cap: themaximumannualeffectiveinterestratethatcanbecreditedtoanIndexSegment.

Daily Average of the Index:thearithmeticaverageof allthepublisheddailyendingvaluesoftheIndexfora 12-monthperiod.

Ending Index Value:thevalueoftheIndexattheendof thedayanIndexSegmentends.

Fixed-Term Strategy:arateofinterestdeclaredby thecompanywillbecreditedtotheaccountdaily.

Guaranteed Interest Rate:is2.5%.

Index:forSecurePlusParagon,theIndexisdefinedastheS&P500®Index,excludingdividends.

Indexed Interest:theinterestcreditedtoanIndexSegmentusingeitherthePoint-to-PointorPoint-to-Averagestrategy.

Interest Crediting Strategy:oneofthefiveavailablemethodsusedtocalculatehowinterestiscreditedtothePolicy. ThefivechoicesareFixed-Term,Point-to-AverageandthreePoint-to-Pointstrategies.

Participation Rate: thepercentageappliedtotheIndexGrowthusedintheformulatocalculatetheIndexedInterestforanIndexSegment.

Point-to-Average Strategy:comparestheStartingValueoftheIndextotheDailyAverageoftheIndextodeterminetheIndexGrowth.

Point-to-Point Strategy:comparestheStartingValueof theIndextotheEndingValueoftheIndextodetermine theIndexGrowth.

Index Segment:eachtimepremiumsaretransferredfromtheBasicStrategyintoanIndexStrategyanewIndexSegment iscreated.

Policy Segment Year:the12-monthperiods,beginningwhenanIndexSegmentiscreated,usedtodeterminetheIndexedInterestearnedonthevalueoftheIndexSegment.

Starting Index Value:thevalueoftheIndexattheendof thedayanIndexSegmentbegins.



Product SpecificationsPolicy Protection PeriodThePolicyProtectionPeriodhelpsprotectthepolicyagainstlapseduringthefirst5policyyears.Duringthisperiod,thepolicywillnotenteragraceperiod,evenifthecashsurrendervalueisnotsufficienttocoverthemonthlydeductions,aslongas: •thesumofpremiumspaid,lessallwithdrawalsmadeand

lessanypolicydebt,isgreaterthanorequaltothetotalminimummonthlypremiumsineffectsincethedateofissue,and

•theaccumulatedvaluelessanypolicydebtissufficienttocoverthemonthlydeductions

ThePolicyProtectionPeriodappliestothefirst5policyyearsonly,anddoesnotrestartafteranincreaseinfaceamount.

Monthly Cost of InsuranceEachmonththecostofinsurance(COI)isdeductedfromtheaccumulatedvalue.GuaranteedmaximumCOIratesshowninthepolicyarebasedonthe2001CSOmortalitytablesandarehigherthanwhatwecurrentlycharge.CurrentCOIratesareselectandultimate,andvarybyage,sex,andrateclass.ThecurrentCOIrateisguaranteedforthefirsttenyears.

Surrender ChargesSurrenderchargesapplyduringthefirsttenyearsofthepolicy.Adollaramountperthousandoffaceamountwillbebasedonissueage,sex,rateclass,andpolicyduration.Afaceamountincreasewillhaveitsownsurrenderchargesassociatedwithit.Thesurrenderchargewillbecappedatonetargetpremiuminyearone.

Expense ChargesBasedonage,sex,rateclass,andfaceamount. Policyfee:$5.00permonth. Premiumload:6%ofpremium.

PremiumsThisuniversallifepolicyhasbothminimumandcommissionabletargetpremiums.Apremiumequaltooneminimummonthlypaymentisdueonthedateofissue.Thecommissionabletargetpremium(CTP)isthemaximumpremiumonwhichthehighercompensationratewillapply.Theminimummonthlyandcommissionabletargetpremiumwillbebasedonthefaceamount,age,rateclass,andgender.

Theminimumbilledpremiumamountis$25.00/month.

Paymentoftheminimumpremiumforthefirstfiveyearsguaranteesthatthepolicywillstayin-forceduringthattime,unlesstheminimumpremiumisreducedastheresultinareductionincoverage.

Unscheduledpremiumsmaybepaidintothepolicyat anytime.

The“target”premiumfortheWaiverofTargetPremiumRiderandtheUnemploymentRiderisdefinedasthepolicyholder’splannedperiodicpremium,uptothepolicyCTP.

Theminimummonthlypremiumwillbebasedonthefaceamount,age,rateclass,andgender.

WithSecurePlusParagonthecustomermaychoosewhichpremiumtestwillbeusedtokeepthecontractwithinthefederaldefinitionoflifeinsurance.UnderSection7702oftheInternalRevenueCode,apolicywillgenerallybetreatedaslifeinsuranceforfederaltaxpurposesifatalltimesitmeetseither(1)the“guidelinepremiumtest”or(2)the“cashvalueaccumulationtest”.Ingeneral,thecashvalueaccumulationtestwillallowyoutomakehigherpremiumpaymentsduringearlyyears.ThecashvalueaccumulationtestwillonlybeavailableifthepremiumpaymentscreateaModifiedEndowmentContract(MEC)atissue.Theguidelinepremiumtestmayallowyoutomaintainahighercashvalueinrelationtothefaceamount.Customersmustchooseeithertheguidelinepremiumtestorthecashvalueaccumulationtestwhenthepolicyisissued.Oncethepolicyisissued,thecustomermaynotchangetoadifferenttest.


Death Benefit OptionsThepolicyholdermayelectanOptionA(level)orOptionB(increasing)deathbenefitoption.

Option A –thedeathbenefitisequaltothegreaterof 1.thefaceamount;or 2.theaccumulatedvaluemultipliedbytheapplicable

corridorfactor

Option B –Thedeathbenefitisequaltothegreaterof 1.thefaceamountplustheaccumulatedvalue;or 2.theaccumulatedvaluemultipliedbytheapplicable

corridorfactor

Change in Death Benefit OptionThepolicy’sdeathbenefitoptioncanbechangedfromOptionAtoB,orBtoA,onceeachpolicyyearafterthefirstpolicyanniversary.Ifachangewouldcausethecontracttonolongerqualifyaslifeinsuranceforfederalincometaxpurposes,thechangewillnotbeallowed.

ChangingfromOptionA(level)toOptionB(increasing):Thefaceamountofthepolicywillbereducedbytheaccumulatedvaluejustpriortotheeffectivedateofthechange.

ChangefromOptionBtoA:Thefaceamountwillincreasebyanamountequaltotheaccumulatedvaluejustpriortotheeffectivedateofthechange.

Inbothcaseslistedabove,thedeathbenefitisthesamebeforeandafterthechange.

Changes in Face AmountIncrease in Face Amount:Afterthefirstpolicyanniversarythepolicyholdermayapplyforanincreaseincoveragesubjecttothefollowingterms: •Satisfactoryproofofinsurability.

•Therequestedincreasemeetsorexceeds$25,000.

•Thechangewillbeeffectiveonthemonthlydateonorfollowingtheapprovaloftheapplication.

Eachincreasewillhaveitsownsetofsurrenderchargesandmonthlyperthousandoffaceamountadministrationcharges.

Decreases in Face Amount:Afterthefirstpolicyanniversarythepolicyholdermayrequestadecreaseinfaceamountincoveragesubjecttothefollowingterms: •Thedecreasebecomeseffectiveonthemonthlypolicydateonorafterthereceiptoftherequestatthehomeoffice.

•Decreasescannotresultinafaceamountlessthan$25,000.

•Decreaseswillnotbepermittedifthedecreasecausesthepolicytonolongerqualifyaslifeinsuranceforfederalincometaxpurposes.

•Thetotalfaceamountofthepolicyplusanyadditionalridersmaybenolessthan75%ofthelargesttotalfaceamountin-forceatanytimeinthetwelvemonthsprior totherequest.

•Decreasesdonotaffectthelevelofsurrendercharges.

EachchangeincoveragewillcausetheCommissionableTargetPremium(CTP)andMinimumMonthlyPremium(MMP)tobeadjustedforeachnewsegmentofcoverage.



LoansLoansareavailableatanytimeafterthefirstpolicyyear. Thepolicywillserveasthesolecollateralfortheloan.

Theamountavailableforloanonanydaywillbethesurrendervalue,lessthreetimesthemonthlydeductionsdueonthelastmonthlypolicydate.

TheinterestratechargedontheloanwillbeavariableratethatisbasedontheMoody’sCorporateBondYieldAverage–MonthlyCorporates,subjecttoaminimumrateof3%.

SecurePlusParagonofferstwoloanoptions: 1.VariableNetCostLoan 2.FixedNetCostLoan

Bothoptionswillbeavailableatthestartofpolicyyear2 (atissueforloansresultingfrom1035exchanges).

Theloanoptionisselectedbythepolicyholderatthetimealoanisfirsttaken.Alloutstandingloansmustusethesameoption.Thepolicyholdermayswitchallexistingloansfromoneoptiontotheotheronthepolicyanniversary.

Interestcreditedonloanedfunds 1.VariableNetCostLoans–loanedvaluescontinuetoearn

interest/indexearningsasifnoloanhadbeentakenfromthepolicy.

2.FixedNetCostLoans–loanedvaluesareremovedfromthecreditingstrategiesandsegregatedinaLoanCollateralFund,andcreditedwith: a.TheVariableLoanRate(VLR)minus1.25%

inyear1-10;and

b.TheVariableLoanRate(VLR)inyears11+ (“WashLoan”).

Loansreducecashsurrendervalueanddeathbenefit.

Alloranyloanamountmayberepaidatanytimepriortothedeathoftheinsuredorthesurrenderofthepolicy.Theexceptionisifthepolicyisinthegraceperiod,theloanrepaymentwouldbeconsideredapremiumpaymenttokeepthepolicyin-forceunlessthepolicyholderspecifiesitasadebtrepayment.

Overloan Protection RiderThisriderguaranteesthatthepolicywillnotlapseinsituationswhereloanbalancesthreatenthecontract’sabilitytostayin-force.

PolicyloansfromSecurePlusParagonarereceivedincome-taxfree.Ifthepolicylapses,withoutstandingpolicyloans,therecouldbetaxableincometothepolicyholder.Intheeventloanbalancesthreatenthecontract’sabilitytostayin-force,andifthetermsoftherideraremet,theOverloanProtectionRiderwillrestructurethepolicysothatitisguaranteednottolapse.

WithdrawalsAtanytimeafterthefirstpolicyyear,thepolicyholdermaymakeawithdrawalofthepolicy’scashsurrendervaluesubjecttothefollowingterms:

•Theamountofwithdrawalmaynotexceedthecashsurrendervalueminusthreemonthlydeductionsdueon thelastmonthlypolicydate.

•Theaccumulatedvaluewillbereducedbytheamountof thewithdrawal.

•Thefaceamountwillbereducedbyanamountequalto thewithdrawal,foroptionA(level)contracts.

•TheCompanywillchargea$25feeforeachwithdrawalmade.

1035 ExchangesTheeffectivedateof1035exchangeswillbethedatethefundsarereceivedintothehomeoffice.1035Exchangeswithloanswillbepermitted,aslongastheloantransferreddoesnotexceed50%ofthetotalpolicyvaluetransferred.



ACCELERATED BENEFIT RIDERS

TheAcceleratedBenefitsRiders1,2,and3allallowacceleratedpaymentofupto100%ofthepolicydeathbenefit.AcceleratedBenefitsRider1(ABR1)isavailableincaseofaterminalillness;AcceleratedBenefitsRider2(ABR2)isavailableincaseofchronicillness;AcceleratedBenefitsRider3(ABR3)isavailableincaseofcriticalillness.

Theactualpaymentamountunderanyoftheridersisdiscounted(thebenefitpaymentistheactuariallydiscountedvalueofthedeathbenefitbeingacceleratedlessaprorataportionofanypolicydebt).

•��Thereisnolimitonhowthefundscanbeused.

•��Thereisnoadditionalpremiumforanyofthe AcceleratedBenefitsRiders.

•��Ridersstayin-forceaslongasthebasepolicy remainsin-force.

AllAcceleratedBenefitRidersareavailableatno additionalcost.

ABR 1Givesthepolicyownertheoptionofreceivingthedeathbenefitearlyiftheinsuredisterminallyill.Terminalillnessisexpectedtoresultindeathwithintwoyears(oneyearinPA,CTorVT).Allorpartofthedeathbenefitmayberequestedearly(lumpsum).

ABR 2Availablewhentheinsuredisdiagnosedaschronicallyill:

•��Unabletoperformtwoofthesixactivitiesofdailyliving–bathing,continence,dressing,eating,toileting,andtransferringwithoutassistance,or

•��Withdeteriorationorlossinintellectualcapacity (cognitiveimpairment).

Providestheoptionofreceivingthedeathbenefitinperiodicpaymentsaftera90-daywaitingperiod.

Themaximummonthlyamountthatcanbeacceleratedis 2%ofthedeathbenefit.

ABR2mustbein-forcefortwoyearsbeforebenefits areavailable.

Available Riders

Disability Income

Money to help pay your bills.

RetirementIncomeMoney for a secure retirement.

Accelerated Living BenefitsChronic, Critical,or Terminal Illness Riders. Life

InsuranceMoney for your family.


LIFE INSURANCE YOU DON’T HAVE TO DIE TO USE

Available Riders

ABR 3Availablewhentheinsuredexperiencesoneofthefollowingqualifyingevents:

•��Heartattack

•��Majororgantransplant

•��Stroke

•��DiagnosisofALS(amyotrophiclateralsclerosisor LouGehrig’sDisease)

•��Diagnosisofcancer

•��Diagnosisofendstagerenalfailure

•��Blindness(correctedvisionofnobetterthan20/200 inbotheyes)

Allqualifyingeventsmaynotbeavailableinallstates. Allorpartofthedeathbenefitmayberequestedearly(lumpsum).Theactualpaymentwillvaryduetotheseverityofthedisease.IftheinsuredalsomeetsthedefinitionofaterminalillnessitwilllikelybemorebeneficialtothepolicyownertoacceptbenefitsunderABR1ratherthanABR3.ABR3isnotavailableforsubstandardSecurePlusParagonpolicies.

Anyqualifyingeventoccurringduringthefirst30daystheriderisin-forceisnotcovered,unlessitistheresultofanaccident.*

*Theserestrictionsmaynotapplyinallstates.PleaseseetheABRdisclosureformsformoreinformation.

TheCompanyreservestherighttosetamaximumonthetotaldeathbenefitthatmaybeacceleratedunderallacceleratedbenefitsriders.Thelimitwillbenolessthan$500,000.

ACCIDENTAL DEATH BENEFIT RIDER (ADB)TheADBpaysanadditionaldeathbenefitiftheinsured’sdeathresultsfromanaccident.Itisnotavailableonratedpolicies.

•��Issueages0–60

•��ADBisavailabletothePrimaryOtherInsured(seetheOtherInsuredRiderdescription)aswellastotheprimaryinsuredunderthepolicy

•��Riderstaysin-forceuntilthepolicyanniversaryfollowingtheinsured’s70thbirthday,aslongastheinsured’slifeinsurancecoverageandthebasepolicyremainin-force

•��Minimumrideramountis$10,000

•��Maximumrideramountisthelesserof$250,000ortheinsured’slifeinsurancefaceamount

•��Premiumsarealevelamountperthousand,based onissueage

ADDITIONAL PROTECTION BENEFIT RIDER (APB)TheAPBRiderisanon-commissionableriderwhichprovidesadditionalpermanentcoverageontheprimaryinsured.ThemaximumratioofAPBfaceamounttobasefaceamountforasinglepolicywillbe9to1.TheAPBriderwillbeavailableforallissueagesandrateclassifications.TheminimumAPBfaceamountis$25,000.ForapolicywithAPB,themaximumDeathBenefiteligibleforaccelerationthroughuseoftheAcceleratedBenefitsRider(ABR)isequaltothePolicyDeathBenefitminus50%oftheAPBfaceamountatthetimeofinitialacceleration,subjecttomaximumbenefitamounts.PoliciesthatutilizetheAPBriderwillhaveslightlylowerguaranteedvaluesthanpolicy’sutilizingallbasecoverage.


BALANCE SHEET BENEFIT RIDER (BSB)TheBalanceSheetBenefitRidereliminatesallsurrenderchargesontheunitsofinsurancetowhichitapplies.Therewillbeamonthlycharge,basedonissueage,sex,andrateclassperunitofcoveragefortherider.CommissionsonunitsofinsurancewiththeBSBriderwillbepaidusingadifferentschedulewhichlevelizesthecompensation.

CHILDREN’S TERM RIDER (CTR)TheChildren’sTermRiderprovidestermlifeinsuranceonalloftheinsured’schildrenuntiltheyreachage23.Eachchildiscoveredforthesameselectedbenefitamount.Childrenbornoradoptedafterissue(aftertheyreachtheageof15days),anddependentstepchildrenlivingintheinsured’shomewillbecoveredaswell.Thechildren’scoverageisconvertiblewithoutunderwritingatanytimewhiletheriderisin-forceforanindividualwholelifeoruniversallifepolicywiththesamefaceamount.Thechildren’scoverageisconvertiblefordoubletheriderfaceamountwhenthechildreachesage23ormarries,oratthedeathoftheprimaryinsured.

•��Issueages15days–16years

•��Riderstaysin-forceuntilthepolicyanniversaryfollowingthelastcoveredchild’s23rdbirthday,aslongasthebasepolicyremainsin-force

•��Minimumrideramountis$5,000

•��Maximumrideramountis$25,000

•��Premiumsarealevelamountper$1,000regardless ofthenumberofchildrencovered

DISABILITY INCOME RIDER (DIR)TwodifferentDIRsareavailable,distinguishedbyatwo-yearorafive-yearbenefitperiod.Bothoptionsprovideforafixedmonthlybenefitiftheinsuredistotallydisabledandunabletowork.Bothprovidecoveragefordisabilitiesduetoeithersicknessoraccident.DIRcoverageisnotavailableonratedclasses.Certainoccupationsarenoteligibleforcoverage.PolicypremiumsarenotautomaticallywaivedundertheDIR;theWaiverofTargetPremiumRidermustbein-forcetowaivepolicypremiums.

•��Issueages18–55

•��DIRisavailabletothePrimaryOtherInsured(seetheOtherInsuredRiderdescription)aswellastotheprimaryinsuredunderthepolicy

•��Coveragestaysin-forceuntilthepolicyanniversaryfollowingtheinsured’s65thbirthday,aslongastheinsured’slifeinsurancecoverageandthebasepolicyremainin-force

•��Minimumbenefitamountis$300/month

•��Maximumbenefitamountis$2,000/month,subjecttounderwritingandanystatelimitations.TheDIRbenefitamountcannotexceed66%ofgrossmonthlyincome(40%inCalifornia)or$20per$1,000oflifeinsurance. (Forexample,a$2,000DIRmustbeattachedtoabasepolicyofatleast$100,000.)

•��Premiumsvarywithissueageandremainlevelforthetermoftherider

•��Riderbenefitamountscannotbeincreasedordecreasedafterissue.However,anadditionalDIRmaybeaddedafterissue,subjecttounderwritingandthemaximumbenefitlimits

TheDIRwiththetwo-yearmaximumbenefitperiodhasa3-monthwaitingperiod.Benefitsarepaidretroactivelyafterthewaitingperiod,fromthedateofdisability.“Disability”isdefinedastheinsuredbeingunabletoperformthedutiesofhisorherownoccupation.*

*InSouthCarolina,“Disability”isdefinedastheinsured’sinabilitytoperformthedutiesofhisorherownoccupationduringthefirstyearofdisabilityandtheinabilitytoperformthedutiesofanyoccupationforwhichheorsheissuitedthereafter.

Available Riders


TheDIRwiththefive-yearmaximumbenefitperiodhasa6-montheliminationperiodwithnoretroactivepayment.“Disability”isdefinedastheinsuredbeingunableto performthedutiesofhisorherownoccupationfora periodoftwoyears,andasunabletoperformtheduties ofanyoccupationforwhichheorsheissuitedfortheremainingthreeyears.

After-issuechangesbetweenthetwo-yearandfive-yearridersarenotpermitted.

IftheinsuredisreceivingbenefitsundertheDIRwhenheorshereachesage65,thebenefitpaymentswillcontinueuntiltheendofthedisabilityortheendofthebenefitperiod.

Note:AnAttendingPhysician’sStatementofDisabilityfromalicensedmedi-calphysicianwillberequiredforallclaims.

EXTENSION OF BENEFITS RIDER1 (EBR)Thisisanoptionalriderthatprovidesthepolicyownerbenefitstohelpcoverexpensesincurredforqualifiedlong-termcareservicesonceachronicallyill2insured’sdeathbenefitunderthepolicyhasbeendepletedduetopaymentsmadeundertheLong-TermCareRiderortheAcceleratedBenefitsRider2.Oncebenefitsbeginaccruingunderthisrider,theywillcontinueduringthelifetimeoftheinsuredaslongastheinsuredremainseligibleforbenefits.Theriderpaysbenefitsequaltotheactualexpensesforcoveredservices,subjecttoamaximummonthlylimit(upto1%ofthepolicyfaceamountfornursinghomeorhomehealthcare–upto0.5%foradultdaycare).CoverageunderthisridermaybepurchasedwithorwithoutInflationProtection.Thisriderprovidesanonforfeiturebenefitforanycoveragethatlapsesafterbeingin-forcefor3years.Thecostperunitofcoverageunderthisriderislevelandisguaranteednottochange.

Issue GuidelinesTheLong-TermCareRiderandExtensionofBenefitsRider aresubjecttothefollowingissueguidelines:

•��Issueages:0–70(agelastbirthday).

•��Availableontheprimaryinsuredaswellastheprimaryotherinsured(coveredunderanOtherInsuredRider).

•��CoverageunderanExtensionofBenefitsRiderisonlyavailabletoaprimaryinsuredorprimaryotherinsuredwhoalsohascoverageundereitheraLong-TermCareRiderorAcceleratedBenefitsRider2.

•��ExtensionofBenefitsRiderisnotavailablewhenusingthe AdditionalProtectionBenefitRider.

•��Totallifeinsurancecoverageappliedforunderthepolicymaynotexceed$1,000,000.

•��Notratableandnotavailableonratedpolicies.

PleaserefertotheAgent Guide for LSW Long-Term Care Rider and LSW Extension of Benefits Rider,MK2582(0901),CatalogNo.63181,formorein-depthinformationabouttheriderbenefits,suitability,anddisclosurerequirements.

1Ridernamesmayvarybystate.

2Aninsuredischronicallyillifalicensedhealthcarepractitionerhascertifiedtheinsuredas:(1)beingunabletoperform(withoutsubstantialassistancefromanotherperson)atleasttwoactivitiesofdailylivingforaperiodofatleast90consecutivedaysduetoalossoffunctionalcapacity;or(2)requiringsubstantialsupervisionforaperiodofatleast90consecutivedaysbyanotherpersontoprotectoneselffromthreattohealthandsafetyduetosevere cognitiveimpairment.Theactivitiesofdailylivingaredefinedasbathing,conti-nence,dressing,eating,toileting,andtransferring.

**MaypurchaseDIRuptomonthlyhomemortgageamount.

***OnlyDIR5available.

Available Riders

Actor/ActressAirTrafficControllerAmusementParkEmployeeArmedForcesorCoastGuardArtist/MusicianAsbestosWorkerAthleticCoachorInstructorAutoBodyRepairBlasterBowlingAlleyEmployeeBridgeorDamWorkerBusBoyBusDriverCabDriverCarpet/FloorInstallerCasinoEmployeeChauffeur/LimoDriverCircusEmployeeDeliveryPersonDishwasherDiverDomesticServant (Maid,Butler,etc.)ExoticDancerFBIAgentFederalorMunicipalEmployee**

FiremanFisherman/SeamanFlightAttendantForestRangerGameWardenGolfPro

HousewifeImmigrationOfficerLifeguardLoggingEmployeeMigrantWorkerMineWorkerMovieIndustryEmployeeNature/AdventureGuideNurse)PeddlerPianoMover/SafeMoverPilotPolicemanPrisonEmployeeProfessionalAthleteRacingEmployee (DogorHorse)RodeoRiderorClownRooferSchoolTeacher*** (PublicorPrivate)SecurityGuard(Armed)SelfEmployed (callwithspecificinfo)SkatingRinkEmployeeSteeplejack(BillboardWorker)StructuralIronWorkerSubwayorTunnel ConstructionWorkerTheaterIndustryEmployeeTruckDriverVendingMachineWorker

Occupations ineligible for DIR


GUARANTEED INSURABILITY RIDER (GIR)

TheGIRallowstheinsuredtoincreaseinsurancecoveragewithoutevidenceofinsurability,duringspecifiedoptionperiods.Regularoptionperiodsrunfromthe60thdaybeforetothe31st dayafterthepolicyanniversaryonwhichtheinsuredreachesage25,28,31,34,37,or40.Additionaloptionperiodsareavailablebasedonmarriage,thebirth/adoptionofachild,orpurchaseorrefinancingofahome;thereisalimitoftwoadditionaloptions.TheGIRisnotavailableonratedcases.

•��Issueages0–37.

•��GIRisavailabletothePrimaryOtherInsured(seetheOtherInsuredRiderdescription)aswellastotheprimaryinsuredunderthepolicy.

•��Riderstaysin-forceuntilthepolicyanniversaryfollowingtheinsured’s40thbirthday,aslongasthebasepolicyremainsin-force.

•��Minimumoptionamountis$5,000.

•��Maximumoptionamountisthelesserof$50,000ortheinsured’slifeinsuranceamount.

•��Premiumsarealevelamountperthousandofoptionamount,basedonissueage.

LONG-TERM CARE RIDER1 (LTC)

Thisisanoptionalriderthatallowsthepolicyownertoreceiveachronicallyill2insured’sdeathbenefitinperiodicpayments,whilesuchinsuredisstillliving,tohelpcoversuchinsured’sexpensesforqualifiedlong-termcareservices.Benefitsunderthisriderbeginaccruingaftera90-dayeliminationperiodandwillcontinue,aslongastheinsuredremainseligible,untiltheinsured’sdeathbenefitunderthepolicyhasbeenexhausted.Theriderpaysbenefitsequaltotheactualexpensesforcoveredservices,subjecttoamaximummonthlylimit(upto2%ofthepolicydeathbenefitfornursinghomeorhomehealthcare–upto1%foradultdaycare).Eachbenefitpaymentwillreducetheinsured’sdeathbenefitbythesameamount.Whilebenefitsarebeingpaidunderthisrider,policypremiumsormonthlydeductionswillbewaived.Thecostperunitofcoverageunderthisriderislevelandisguaranteednottochange.

OVERLOAN PROTECTION RIDER

Thisriderguaranteesyourclient’spolicywillnotlapseinsituationswhereloanbalancesthreatenthecontract’sabilitytostayin-force.

Ifthefollowingtermsoftherideraremet,theOverloanProtectionRiderwillrestructurethecontractasa“paid-up”policysothatitisguaranteednottolapse:

•��Policymustbeincorridor.

•Loansmustequal95%ofpolicy’saccumulatedvalue.

•Insuredisage75orolder.

•Policymustbein-forceforatleast15years.

Thepolicyholderwillbenotifiedwhenelegibilityrequirementsaremet.Thereisnoadditionalcostuntilriderisexercised.NotavailablewithCVAT.

OTHER INSURED RIDER (OIR)

TheOIRprovideslow-costannualrenewableterminsuranceonanindividual.Theotherinsuredmayhaveanyofthefollowingrelationshipstotheprimaryinsured:

•��Spouse

•��Child

•��Businesspartner

IneligiblerelationshipsforOIRcoverageincludeparents,grandparents,siblingsandgrandchildren.UptofiveOIR maybeaddedtothesamebasepolicy.OneoftheseOIRs(spouseorbusinesspartneronly)maybedesignatedasa“PrimaryOIR”;additionalridersareavailableoptionstothePrimaryOIR(seechartonpage26forrideravailability).

TheOIRisconvertibletoapermanentpolicywithoutevidenceofinsurabilityatanytimewhiletheriderisin-force,oruponthedeathoftheprimaryinsured.

•��Issueages0–85(agelastbirthday).

•��Riderstaysin-forceuntiltheotherinsured’sage100,aslongasthebasepolicyremainsin-force.

•��MinimumOIRamountis$25,000(ortheprimaryinsured’sfaceamount,iflessthan$25,000).

•��MaximumOIRamountisthebasepolicyfaceamount.

•��Premiumsarebasedonsex,rateclassandage;thesamerateclassesareavailableasforthebasepolicy.

Available Riders


1Ridernamesmayvarybystate.

2Aninsuredischronicallyillifalicensedhealthcarepractitionerhascertifiedthe insuredas:(1)beingunabletoperform(withoutsubstantialassistancefromanother person)atleasttwoactivitiesofdailylivingforaperiodofatleast90consecutivedays duetoalossoffunctionalcapacity;or(2)requiringsubstantialsupervisionfora periodofatleast90consecutivedaysbyanotherpersontoprotectoneselffromthreattohealthandsafetyduetoseverecognitiveimpairment.Theactivitiesofdailylivingaredefinedasbathing,continence,dressing,eating,toileting,andtransferring.

Benefits Available by Rider on Other Insureds

Primary OtherInsured Rider

Non-primary OtherInsured Rider

AcceleratedBenefitsRider1 Yes Yes



AccidentalDeathBenefit Yes No

Children’sTermRider No No

DisabilityIncomeRider Yes No

GuaranteedInsurabilityRider Yes No

UnemploymentRider No No

WaiverofTargetPremiumRider No No

Long-TermCareRider Yes No

ExtensionofBenefits Yes No

UNEMPLOYMENT RIDER (UR)TheUnemploymentRiderprovidesforaone-timelumpsumpaymentintothepolicyaftertheinsuredhasbeeninvoluntarilyunemployedfromfull-timeemployment.Thisriderisautomaticallyincludedonalluniversallifepoliciesissuedinstateswhereitisapproved.Whentheprimaryinsuredisinvoluntarilyunemployedforthreeconsecutivemonths,andsubmitsproofsuchasstateorfederalunemploymentcertification,aterminationnoticeorunioncertification,wewillpaythreemonths’“target”premiumintothepolicy’saccumulatedvalue.(Thetargetpremiumisthemonthlyplannedpremium,upto1/12ofthepolicyCTP.)Thepolicymustbein-forcewhentheunemploymentbegins,andmustremainin-forceduringthewaitingperiod.

•��Issueages0–60(agelastbirthday).


•��Thebenefitwillbepaidonlyonce.

•��Thereisnopremiumforthisrider.

WAIVER OF TARGET PREMIUM RIDER (WTP)TheWTPRiderwaivesthepolicypremium–actuallypaysawaiverofpremiumbenefitintothepolicy’saccumulatedvalue–whentheinsuredistotallydisabled.Ifthepolicylapseswhilethisbenefitisbeingpaid,thebenefitwillbepaiddirectlytothepolicyowneruntilthedisabilityends.Thereisasix-montheliminationperiodfromthedateofdisabilitybeforebenefitsbegin.Thebenefitamountisthe“target”premium(themonthlyplannedpremium,upto1/12ofthepolicyCTP).

•��Issueages15–55.


•��Thebenefitamountistheentirepolicytargetpremium,includinganyattachedriders.

•��Premiumsarealevelamountperdollaroftargetpremium,basedonage.

IfthepolicyholderhastheWTPRideronapolicy,anyapplicationforanincreaseinfaceamountshouldincludeadditionalWTPcoveragealso,unlesstheinsuredispasttheWTPagelimit.

26

Available Riders

For Agent Use Only – Not for Use with the Public

27

SecurePlus Paragon

©Copyright 2008, Life Insurance Company of the Southwest. All Rights Reserved.

A member of

Life Insurance Company of the Southwest

LIFE INSURANCE COMPANY OF THE SOUTHWEST was incorporated in 1955. We are licensed in 49 states and the District of Columbia, with our home office in Dallas, Texas.

LSW specializes in life insurance and annuity products. Our rating from A.M. Best Company, the oldest rating agency in the industry, is a good reflection of LSW’s strength.

A.M. Best ratings represent an independent opinion of a company’s financial strength and ability to meet its obligations to policyholders. A.M. Best gives LSW an “A” (Excellent) rating; this is the third highest of 15 rating categories.*

LSW is an affiliate of National Life Insurance Company based in Montpelier, Vermont. National Life was founded in 1850 and for over a century and a half has provided insurance protection to individuals, families, and businesses.

* As of 06/07. Ratings are subject to change without notice. LSW SecurePlus Paragon, form series8387(0606)/ 8387ID(0606), Indexed Universal Life Insurance and applicable riders are underwritten by Life Insurance Company of the Southwest, Dallas, Texas. An additional premium is charged for some riders. Product is not available in all states. Riders are optional and may not be available in all states. Benefits and terms may vary by state.

“Standard and Poor’s®, “S&P®, Standard and Poor’s 500”, and “500” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Life Insurance Company of the Southwest. The product is not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability of investing in this Product.

The S&P 500® Index does not reflect dividends paid on the stocks underlying the index.

National Life Group® is a trade name of National Life Insurance Company and its affiliates. Each company of the National Life Group is solely responsible for its own financial condition and contractual obligations.

Home Office: Dallas, TX Administrative Office: Montpelier, VT 1-800-536-5934 www.nationallife.com

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