BUSINESS FACT SHEET

Financial Strength RatingsFor National Life Insurance Company and Life Insurance Company of the Southwest as of August 12, 2016.

A.M. BestA (Excellent)Third highest of 16 rankings

Standard & Poor’sA+ (Strong)Fifth highest of 21 rankings

Moody’sA2 (Good)Sixth highest of 21 rankings

Ratings are subject to change.

At National Life, our story is simple: for more than 167 years we’ve worked hard to deliver on our promises to millions of people with our vision of delivering peace of mind in times of need. It’s our cause, stemming from a deep passion to live our values to do good, be good and make good, every day.

National Life Group® is a trade name of National Life Insurance Company, Montpelier, VT, - founded in 1848, Life Insurance Company of the Southwest, Addison, TX, - chartered in 1955, and their affi liates. Each company of National Life Group is solelyresponsible for its own fi nancial condition and contractual obligations. Life Insurance Company of the Southwest is not anauthorized insurer in New York and does not conduct insurance business in New York.TC91593(0816)1 Cat No 68825(0816)

“ We take to heart National Life’s value to Do Good. The long term needs of our policy holders must be the primary focus of our investments, but within that philosophy we have the ability to do good throughout the nation, investing in our communities through affordable housing and solar projects and providing long-term capital for American businesses.”

Tom BrownellChief Investment Offi cer

Investment Asset AllocationNational Life Group is committed to its long-standing conservative investment philosophy that seeks tocreate value for the enterprise over the long term whileminimizing investment losses in the short term.

CorporateBonds54%

Mortgage-Backed

Securities20%

Consolidated Data Total Assets Under Management ($ in billions)

2011 29.602012 29.962013 30.402014 31.402015 31.07

Operating Revenue ($ in millions)

2011 1,634.32012 1,664.92013 1,691.12014 1,736.12015 1,796.3

Core Earnings ($ in millions)

2011 156.22012 165.82013 177.82014 193.82015 190.0

Statutory Capital and Surplus ($ in millions)

2011 1,286.32012 1,454.82013 1,607.82014 1,752.82015 1,948.4

Insurance Inforce ($ in millions)

2011 64,523.82012 68,458.02013 74,975.92014 83,211.22015 93,769.2

Cash andEquivalents 2%

Other8%

Consolidated results of the National Life Group Companies as of 12/31/15, which include National Life Insurance Company, Life Insurance Company of the Southwest, Equity Services, Inc., Sentinel Investments, National LIfe Distribution, andNLV Financial Corporation. Sentinel Investments is the unifying brand name for Sentinel Financial Services Co., Sentinel Asset Management, Inc., and Sentinel Administrative Services, Inc. Equity Services, Inc., Member FINRA/SIPC, is aBroker/Dealer and Registered Investment Adviser. National Life Distribution, LLC also conducts business as NationalLife or, in some states, National Life Insurance Agency.

$22 billion investment portfolio as of Dec. 31, 2015 represents the invested asset component of Assets Under Managementof National Life Insurance Company, Life Insurance Company of the Southwest and NLV Financial Corporation.

Governments and Municipal Bonds 4%

CommercialReal Estateand Mortgage Loans12%

FINANCIALS

National Life Group FoundationGiving $750,000 annually to nonprofi ts that focuson supporting those in need.

LifeChanger of the Year ProgramThis national program recognizes school employeesfor making a positive diff erence in the lives of students.With over one million views to LifeChangeroftheYear.comin the 2015-16 school year alone, we are humbled by thegood so many school employees do.

VolunteerismAt National Life, we know donating money is important, but so is donating time. That’s why we encourage our employees to take 40 hours of paid volunteer time annually.

“ I also just want to say THANK YOU to National Life Group. To do something so ‘life changing’ for all of the people in education...words can’t express how much that means. I think it is fantastic to see you honor so many people for doing what they do every day. And while I may have not been chosen as the ‘grand prize winner’ during my nomination year, I sure feel like I was. I will hold and cherish being named a ‘life changer of the year’ for the rest of my career. Honored. Humbled. The highlight of my 12 years. I just can’t say ‘thank you’ enough!”

Justin Zoellick2014-15 LifeChanger of the Year fi nalist

Do Good FestWe’re proud to be “diff erent.” One of the ways we celebrate that is through our annual Do Good Fest, a music festival we hold on our back lawn in Montpelier.The public is invited to bring their blankets and chairs and enjoy the live music throughout the day, not to mention our unbelievable view of the Green Mountains! We also invite local nonprofi ts to bring awareness to their causes, and host food trucks that off er some amazing Vermont dishes.

All proceeds from the Do Good Fest go to the National Life Cancer Treatment Center Patient Fund at Central Vermont Medical Center.

All of us at National Life understand that strong communities build strong people, families and businesses. That’s why we think it’s so important to give back. Some of the ways in which we do that include through the:

BENEFITS TO POLICY HOLDERS. BENEFITS TO OUR COMMUNITIES.

Centralized Mailing Address: One National Life Drive, Montpelier, VT 05604 | 800-732-8939 | www.NationalLife.com

BENEFITS TO OUR ENVIRONMENT

“ The people of National Life are grounded in timeless principles – love and friendship, assuring the American Dream and making good on a promise. They live these principles out loud daily because the noble, heroic cause for which they fi ght depends on it. They are not just a company, they are a movement that is growing stronger one relationship at a time.”

Jackie and Kevin FreibergAuthors of Cause!

At National Life, we’ve been working with Mother Nature long before it was considered the right thing to do. We retrofi tted our headquarters that was built in 1958 to become LEED Certifi ed. We installed a biomass boiler to not only save on our heating bills but to also reduce our reliance on fossil fuels. We have solar arrays on our roof and adjacent property that provide more than 15% of our Vermont campus’ electricity. We encourage alternative transportation by incenting our employees to take the bus, to walk, or to bike to work. And yes, we even have granola in our cafeteria.

At National Life, our story is simple: for more than 167 years we’ve worked hard to deliveron our promises to millions of people with our vision of providing peace of mind in times of need. It’s our cause, stemming from a deep passion to live our values to do good, be good and make good, every day.

Learn more at NationalLife.com