For Registered Representative Use Only. Not For Public Distribution. *Disclaimer: Regulations do NOT allow unlike products to be compared, so this demonstration CANNOT be given to customers under any circumstances. This piece is highlighting a feature available on Nationwide’s illustration software. 

Nationwide’s EDBG VUL to GUL: Due to low interest rates and increased reserve requirements with AG38, no-lapse guarantee (NLG) VUL has become competitively priced compared to GUL. BGAs and advisors are starting to discuss NLG VUL as a potential alternative to GUL when it is suitable. Built into Nationwide’s Protection VUL illustration software is an option to compare their Protection VUL w/ the Extended Death Benefit Guarantee rider (EDBG) to their No-Lapse Guaranteed UL product*. This doesn’t provide you with a printable report, but it does give you a snapshot comparison of the comparable data (see screen shot below). In this particular example, a comparison using the same premium was used:

The most significant observation here is that you have comparable guarantees (Age 100 vs. 120), but with the variable contract, you have the potential benefit of cash value accumulation you can’t get with a traditional, guaranteed UL. Not to mention a higher target premium amount. So for the same premium, this particular client could opt for the VUL contract instead of the GUL, and still maintain a death benefit guarantee.

Attached: Nationwide’s VUL Product Offering Presentation

Solution Focus

Nationwide VULNationwide VUL Product Offering

1NFM-11583AO.1 (5.14) For Broker Dealer Use Only

IMPORTANT DISCLOSURESBoth product prospectuses and underlying fund prospectuses for variable universal life insurance can beobtained by writing to Nationwide Life Insurance Company, P.O. Box 182150, Columbus, Ohio 43218-2150.

IMPORTANT DISCLOSURESy g p y, , ,

Clients should carefully consider the fund’s objectives, risks, charges and expenses.

As your clients’ personal situations change (i.e., marriage, birth of a child or job promotion), so will theirlife insurance needs. Care should be taken to ensure these strategies and products are suitable for theirlong-term life insurance needs. Clients should weigh their objectives and time horizon as well as anyassociated costs before making a purchasing decision. Life insurance has fees and charges associatedwith it that include costs of insurance that vary with such characteristics of the insured as sex, health andage, underlying fund charges and expenses, and additional charges for riders that customize a policy to fi tindividual needs.

Variable universal life insurance is an investment so market volatility could mean your clients need to putVariable universal life insurance is an investment, so market volatility could mean your clients need to putmore premium in at some point and can result in the possible loss of principal

Guarantees are subject to the claims paying ability of Nationwide Insurance

Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company,y p y y p y,Columbus, Ohio. The general distributor for variable life insurance policies is Nationwide Investment ServicesCorporation, member FINRA. In MI Only: Nationwide Investment Svcs. Corporation.Nationwide, the Nationwide framemark, Nationwide Financial Network and On Your Side are service marks ofNationwide Mutual Insurance Company.© 2014 Nationwide Financial Services, Inc. All rights reserved

The Leaders Group is not affiliated with Nationwide or any of its subsidiaries.

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IMPORTANT BENCHMARKING

• All competitive information is believed to be current as of April 2014.

INFORMATION

Information was compiled from the latest company software. AXA AEGIS 7.9.3; Prudential using WinFlex web version 2.142.0; Lincoln 16.0; Pacific Life 13.40.5050.21720; John Hancock 9.0.1; Minnesota Life’s web based software; John Hancock 9 4 1-317; Nationwide 3 1 0 7software; John Hancock 9.4.1 317; Nationwide 3.1.0.7

• All information presented is reliable as at the date of comparison and Nationwide has made every effort to make sure it is reliable; however, it's y ; ,possible that there are differences between the products compared which are not reflected and/or of which we are unaware. For this reason, it's completeness and accuracy cannot be guaranteed. These are mere hypothetical scenarios and not intended to represent any specific client orhypothetical scenarios and not intended to represent any specific client or situation.

AGENDAAGENDA

Variable Universal Life Market TrendsS- Market Share

- Product Trends

Nationwide's YourLife Protection VUL- Product & Competitive View- Sales Applications- Policy Management

Nationwide's YourLife Accumulation VUL- Product & Competitive View- Sales Applications

Policy Management- Policy Management

Nationwide's Long Term Care Rider- LTC Rider

Rid C i

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- Rider Comparison

LIFE SALES BY PRODUCT:2013 YEAR ENDS UL REPRESENTS 38% VUL 7%2013 YEAR ENDS:  UL REPRESENTS 38%, VUL 7%

Market Share History by Product Type1976 - 2013

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VUL MARKET TRENDSVUL MARKET TRENDS VUL Sales Represent 7% of Total Life Sales Ending (4Q’13) and 6% (4Q’12) per LIMRA

Hypothetical Question: Were Declines in VUL Sales Magnified by: - Market Volatility after “9/11” 2001? - Market Correction in 2008?- Consumer Reactions: “flight to safety”?- Consumer Reactions: flight to safety ?- Indexed UL as Alternative for life insurance accumulation?

Hypothetical Question: Could slight Increase in VUL Sales for 2013 be attributed to:- Some Companies re-pricing VUL with NLG?- Some Companies re-pricing VUL with NLG?- Stock Market Returns in 2013?- Opportunity for unlimited growth in VUL with “no cap” limits as seen on IUL?

Industry Product TrendsIndustry Product Trends- Addition of Chronic Illness Riders, Accelerated Death Benefit Riders- Fixed Account Enhancements & Promotions- Policy Management Programs which Monitor Policy - Addition of Optional Death Benefit Guarantees (NLG Riders)

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Addition of Optional Death Benefit Guarantees (NLG Riders)

NATIONWIDE’S YOU’RE LIFE PROTECTION VULPROTECTION VUL

Nationwide’s YourLife Protection VUL Highlights:• Optional Lifetime Extended Death Benefit Guarantee Rider (EDBG)

- Flexibility: Dial the Duration from yr 20 to age 120; Dial the Percentage: 50% to 100%

- Required Allocations: Asset Allocation Funds or Fixed AccountRequired Allocations: Asset Allocation Funds or Fixed Account

- EDBG is Premium Based Design (not shadow account)

- EDBG offers Unlimited Catch-Up (Cumulative missed premiums)

• Advanced Pay Premium EDBG: This is different from EDBG option. Advanced Pay Premium EDBG features discounted price if total cumulative premiums are paid within the first 10 years. Therefore, any catch up premium must also be made during the first 10 years.

• Table C to Standard

• When using EDBG rider, software allows comparisons to: GUL, and IUL

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• Policy Management: Automated Premium Monitor

NATIONWIDE YOURLIFE PROTECTION VUL PRICEPROTECTION VUL PRICE

Nationwide YourLife Protection using our OptionalExtended Death Benefit Guarantee Rider:

StrengthsStrengths• Ages 45-65• Level Pay Premium Patterns• 10 Pays Premium (Advanced Pay Premium EDBG)

Weakness• 1035’s or Single Premium (SP)• 1035’s or SP with Level Premium Solves• Short Pays: 2 Pay, 3 Pay, 5 Pay

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PROTECTION VUL BENCHMARKINGBENCHMARKING

Protection VUL Extended Death Benefit Solves:

Male, 55, NT, 10 Pay, $1,000,000 DB, NLG to age 100

Male, 55, NTP, Level Pay to age 100, $1,000,000 DB, NLG to age 100

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PROTECTION VUL BENCHMARKINGBENCHMARKING

Protection VUL Extended Death Benefit Solves:

Male, NTP, 55, Single Premium, $1,000,000 DB, NLG to age 100

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PROTECTION VULILLUSTRATION INPUT SCREENILLUSTRATION INPUT SCREENView of Advisor Input Screens: Male, 45, NTP, $500,000 Face; EDBG duration to age 100

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PROTECTION VULCATCH-UP PREMIUM SALES IDEA

Addition of optional Extended Death Benefit Guarantee Rider

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NATIONWIDE POLICY MANAGEMENT

How can offering Policy Management programs be helpful in servicing YourLife Protection VUL policies?

• Automated Premium Monitor: (APM) If Nationwide’s Extended Death Benefit Guarantee Rider (EDBG) is selected on Protection VUL, or on our Indexed UL, this service communicates the status of the guarantee

_______________________________________________________________

• Automated Income Option: (AIM) In payout phase – communicate status of income compared to targeted objective

• Automated 2/1 Switch Notification: In payout phase – we send notification of option to switch from Death Benefit Option 2 to Option 1 as issued (to help maximize

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p p p ( pincome)

NATIONWIDE’S ACCUMULATION VUL

Nationwide’s Accumulation VUL Highlights:

• Funds, Funds, Funds: See our Latest Fund Performance

• No M/E charges current basis

Enhanced DCA Program: 8% ( i d t l d bj t t h t l b i )• Enhanced DCA Program: 8% (reviewed quarterly and subject to change on a quarterly basis)

• Customer Loyalty Credit beginning in yr. 11 (0.20 % non-guaranteed)

• Ability to Direct Policy Charges

• Advanced Premium Deposit Account (total premium limit $250,000)

• Policy Management Features

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NATIONWIDE YOURLIFE ACCUMULATION VUL PRICEACCUMULATION VUL PRICE

Nationwide Accum VUL Income Solves:

• Strengths• Ages 35-55• Ages 35-55• Recurring premium of $10,000+ per year• Min Non-Mec Option 1 (Level) DB, especially if solve at least $500k+• Large short pays (ex. $50,000 per year, for 5 Pay)

• Weakness• Under age 35 • Option 2/1 Death Benefit Solves for Maximum Income • Lower bands (under $500k DB)• Lower bands (under $500k DB)• Females

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ACCUMULATION VUL BENCHMARKING OPT 1 DBBENCHMARKING OPT 1 DBMale, 45, NTP, $50k premium 10 yrs, Income ages 66 - 85Option 1 Death BenefitOption 1 Death Benefit

Male, 45, NTP, $100k premium 5 yrs, Income ages 66 - 85Option 1 Death Benefit

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ACCUMULATION VUL BENCHMARKING OPT 2/1 DBBENCHMARKING OPT 2/1 DBMale, 45, NTP, $10k premium 20 yrs, Income ages 66 - 85Option 2/1 Death BenefitOption 2/1 Death Benefit

Male, 45, NTP, $50k premium 10- yrs, Income ages ages 66 - 85 Option 2/1 Death Benefit

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ACCUM VUL SALES APPLICATIONS

Recognize Accumulation VUL Appeals to Specialized Market

A l t S l t G f Ad i• Appeal to Select Group of Advisors

• Appeal to Select Group of Clients

• Using Life Insurance to Supplement Retirement Income

Changes in Federal Tax Laws: Comparing 2012 to 2013

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LIFE ILLUSTRATOR SOFTWAREPERSONALIZED SALES IDEASPERSONALIZED SALES IDEAS2 sales ideas can be incorporated into the illustration output of Life Illustrator:

o Insurance Based Retirement Plan 

o VUL as a ROTH IRA Supplement 

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NATIONWIDE POLICY MANAGEMENT

How can offering Policy Management programs be helpful in servicing YourLife Accumulation VUL policies?servicing YourLife Accumulation VUL policies?

• Automated Income Option: (AIM) In payout phase – communicate status of income p ( ) p y pcompared to targeted objective

• Automated 2/1 Switch Notification: Send notification that have option to switch• Automated 2/1 Switch Notification: Send notification that have option to switch Death benefit to Option 1 as illustrated at issue (to help maximize income)

O l L P t ti B fit t t ’ li f t i ti h• Overloan Lapse Protection Benefit: protects you’re policy from terminating when you have taken loans; there are certain requirements to invoke it, and there is no charge until you do

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ACCUM VUL SALES APPLICATIONS

Nationwide Policy Management

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Nationwide Long Term Care Rider

Long Term Care rider• Indemnity style – tax-free payments made directly to the policy owner, and no bills

or receipts need to be submitted

• Eligibility Requirements – unable to perform two or more of the activities of daily Eligibility Requirements unable to perform two or more of the activities of daily living for a period of 90 days (elimination period); or have a cognitive impairment

• Qualified LTC Services include – Nursing Home Care, Home Health Care and Hospice Assisted Living and Adult Day CareHospice, Assisted Living, and Adult Day Care

• Monthly Benefit is the lesser of:• - 2% of the long-term care specified amount or2% of the long term care specified amount or• - Daily amount allowed by HIPAA ($330/day in 2014) x number of days in

the month

• International Claims – Eligible to Collect benefits outside United States subject to • International Claims – Eligible to Collect benefits outside United States subject to certain provisions

22 For Insurance professional use only

COMPARING INDEMNITY STYLE LONG TERM CARE RIDERS TO

CHRONIC ILLNESS RIDERSCHRONIC ILLNESS RIDERS

P i f R id l P f P f P f f Bill bl

IUL Indemnity Style LTC and Chronic Illness RidersPremium for Rider is due beginning

Residual Death Benefit*

Pays for Permanent Conditions

Pays for Temporary Conditions

Proof of Billable Services Required Each Month

Nationwide At issue Yes Yes Yes NoNationwide At issue Yes Yes Yes No

AXA At issue Yes Yes Yes No

Minnesota Life At issue Yes Yes Yes Yes

Transamerica At issue Yes Yes Yes YesTransamerica At issue Yes Yes Yes Yes

Prudential At Issue No Yes No No

Pacific Life At acceleration No Yes No No

National Life At acceleration No Yes No No

AVIVA At acceleration No Yes No No

23For Insurance professional use only

* Residual Death Benefit in Excess of Initial LTC Face Amount

QUESTIONS OR COMMENTSQUESTIONS OR COMMENTS

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