For Producer or Broker/Dealer Use Only. Not for Public Distribution. [Presenter Name] [Date]

For Producer or Broker/Dealer Use Only. Not for Public Distribution.

[Presenter Name][Date]


Agenda

• Current Environment

• Tax Diversification

• Life Insurance as an Asset

2


Current Environment - Overview

• Limitations on Traditional Retirement Vehicles

• Changing Retirement Benefits

• Current Interest Rate Environment

• Taxation

3


Agenda




4


Tax Diversification – Tax Control Triangle

5

1 Distributions from a life insurance policy through withdrawals of certain policy values (up to cost basis) and loans are generally not taxed as income provided you follow certain premium limits which prevent your policy from becoming a Modified Endowment Contract (MEC). Distributions taken during the first fifteen years may be subject to tax. Loans and withdrawals will generally reduce the cash value available and the death benefit payable. If policy loans are taken, there may be income tax consequences if you permit the policy to lapse or if the policy is surrendered or exchanged.2 Traditional IRA contributions may be deducted if certain criteria are met.3 Assuming the funds have been held in the account for at least five years and owner has reached age 59½ at the time withdrawals are taken.4 Municipal bond interest is generally tax-free for regular federal income tax purposes.


Agenda




6


Life Insurance as an Asset - Overview

• Tax-Free Death Benefit– Primary purpose of life insurance

– Income and estate tax-free1

• Tax-Deferred Growth

• Potential for Tax-Free Distributions– Policy loans and withdrawals

• Flexible Asset– No contribution limits based on income

– Distributions prior to age 59 ½

7

1 Depending on the ownership structure, life insurance can be estate tax free.Loans and withdrawals will decrease the cash value and death benefit. Distributions are generally treated first as tax-free recovery of basis and then as taxable income, assuming the policy is not a Modified Endowment Contract (MEC). However, different rules apply in the first fifteen policy years, when distributions accompanied by benefit reductions may be taxable prior to basis recovery. Non-MEC loans are generally not subject to tax but may be taxable when the policy lapses, is surrendered, exchanged or otherwise terminated. In the case of a MEC, loans and withdrawals are taxable to the extent of policy gain and a 10% penalty may apply if taken prior to age 59 ½. Always confirm the status of a particular loan or withdrawal with a qualified tax advisor. Cash value accumulation may not be guaranteed depending on the type of product selected. Investments in variable life insurance are subject to market risk, including loss of principal.


Range of Options

8

Annual Premiums

$0

$10,000

$20,000

$30,000

$40,000

$20,170

GLT (20-Year)

EAVUL

(GMDBto 85)

EAVUL (GMDB

to 121)

PWL 120 (50% FTR G85)

PWL (50% FTR

G85)

EAVUL (Target)

PWL 120 (All Base)

PWL (All Base)

Male, Age 40, 2nd Best Class Non-Smoker, $1M Face

OYT (with CRO)

PWL Select

65

PWL Select

20

PWL Select

10

$22,570

$35,030

$15,370$12,720

$7,849$9,234

$12,185

$7,560$7,080$5,464

$879$490

Rates are current as of 9/3/2013 and are subject to change. EAVUL figures assume an 8% gross (7.26% net) rate of return. EAVUL target example will lapse at age 74 assuming 0% and maximum charges.

Provider UL (CCB to

95)


Life Insurance as an Asset - Incremental Premiums

MetLife Promise Whole Life 120

No-Lapse UL from Company A

Incremental Rate of Return (IRR)

50% Base / 50% Term Lifetime Death Benefit Guarantee

Total Annual Premium $17,509 $12,941 $4,568

Base Annual Premium $11,940 -

Term Annual Premium $5,569 -

Guaranteed 10-Year Cash Value

$110,600 $0 15.63%

Guaranteed 20-Year Cash Value

$226,000 $0 8.01%

10-Year Current Cash Value

$143,849 $45,309 13.62%

20-Year Current Cash Value

$353,804 $121,987 8.22%

9

Male, Age 55, 2nd Best Class Nonsmoker, $1M total face amount. For MetLife Promise Whole Life 120, non-guaranteed cash values are based on a 5.10% dividend scale interest rate, which is not guaranteed and subject to change. All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.


Life Insurance as an Asset - Focus on Cash Value

10

$1,000,000 MetLife Promise Whole Life Select 20 Policy

Male, Age 40, 2nd Best Class Nonsmoker, $1M face amount. Assumes annual premiums of $22,570 paid each year for 20 years and dividend interest crediting rate of 5.10%, which is not guaranteed.

Hypothetical example. For illustrative purposes only.


Life Insurance as an Asset - Focus on Death Benefit

11

$1,000,000 MetLife Promise Whole Life Select 20 Policy

Male, Age 40, 2nd Best Class Nonsmoker, $1M face amount. Assumes annual premiums of $22,570 paid each year for 20 years and dividend interest crediting rate of 5.10%, which is not guaranteed.



Summary

12





Appendix

13


Current Environment - Shifting Expectations

14

Origination

Origination Accumulation Distribution Death

Origination Accumulation Distribution Death


Current Environment - Retirement

• Higher income earners are often more restricted

• Example:

15

Age 45

$100,000 income

$17,500 max 401(k) contribution

17.5% savings rate

Age 45

$300,000 income

$17,500 max 401(k) contribution

5.8% savings rate


TAX RATETAX RATE

Tax Diversification - Tax-Equivalent Yield

16

This means that, given our assumptions, if cash value life insurance has an IRR of 4.00%, then your client would have to earn 6.15% in an investment subject to a 35% tax rate. This example and hypothetical tax rates are for illustrative purposes only. It assumes the policy is not a MEC and that loans and withdrawals do not cause the policy to lapse and the policy is held until death.


New Look on Life – Supplemental Income Strategy

• Client Profile– Ages 40-60

– Good health

– Life insurance need

– Looking for additional vehicles to possibly supplement retirement income

• MetLife Promise Whole Life Select products can be especially attractive– Shortened premium duration (10 years, 20 years or to age 65)

– Competitive IRRs on cash value and income at retirement

17


New Look on Life – Supplemental Income

18

Male, Age 43, 2nd Best Class Nonsmoker. Assumes annual premiums of $50,000 paid each year for 20 years and dividend interest crediting rate of 5.10%, which is not guaranteed. Please refer to the complete basic illustration for other important information.


New Look on Life – Supplemental Income

19

Male, Age 43, Elite NonsmokerAnnual Distribution From Age 66-851 :$140,926IRR at Age 65: 4.25%Taxable Equivalent Yield on IRR: 7.04%

1 Through loans and/or withdrawals. Loans and withdrawals will generally reduce the cash value available and death benefit payable. If policy loans are taken, there may be income tax consequences if you permit the policy to lapse or if the policy is surrendered or exchanged.

2 These illustrative values are based on the life insurance policy presented here and are entirely hypothetical. No adjustment is made for lost use of funds. It is assumed that all funds received from the life insurance policy are free of income taxation. All numbers are based on the non-guaranteed values and are not projection of future policy performance. Please see the basic illustration for greater detail, guaranteed values, as to the underlying assumptions and risks associated with life insurance policy. Also see the Assumptions and Important Information pages of the ePresentation for other information about the values and concept presented here. Any changes to any of the assumptions can have a significant impact on every other number or value shown.

Illustrative Gain Analysis2

Assumed Age at Death: 90

Death Benefit in Assumed Year of Death: $852,279

Total Cash Received from Policy: $2,921,820

Total Policy Benefits: $3,670,799

Less Cumulative Premiums: $1,000,000

Net Gain in Assumed Year of Death: $2,670,799

Cumulative Premiums

27%

Net Gain73%



New Look on Life - Longevity

20

• Client Profile– Ages 45-65

– Good health

– Life insurance need

– Worried about outliving retirement income

• Whole life insurance can create options– If additional retirement income is not needed, leverage death benefit

– If other retirement assets have been exhausted, income may be drawn from the policy


New Look on Life - Longevity

• Two Options at Age 85

– #1 – Cash value not needed so death benefit is $2,633,481

– #2 – Retirement income needed from age 86 to 95

Male, Age 50, 2nd Best Class Nonsmoker. Assumes annual premiums of $49,999.98 paid each year for 10 years and dividend interest crediting rate of 5.10%, which is not guaranteed. Please refer to the complete basic illustration for other important information.


Option # 2 – Income From 85-95

222222

Male, Age 50, Preferred NonsmokerAnnual Distribution From Age 86-951: $233,783IRR at Age 86: 4.87%Taxable Equivalent Yield on IRR: 8.06%




Total Cash Received from Policy: $2,337,830

Total Policy Benefits: $2,984,531

Less Cumulative Premiums: $500,000

Net Gain in Assumed Year of Death: $2,484,531

Cumulative Premiums

17%

Net Gain83%


2 These illustrative values are based on the life insurance policy presented here and are entirely hypothetical. No adjustment is made for lost use of funds. It is assumed that all funds received from the life insurance policy are free of income taxation. All numbers are based on the non-guaranteed values and are not projections of future policy performance. Please see the basic illustration for greater detail, guaranteed values, as to the underlying assumptions and risks associated with life insurance policy. Also see the Assumptions and Important Information pages of the ePresentation for other information about the values and concept presented here. Any changes to any of the assumptions or the non-guaranteed dividends can have a significant impact on the values shown



New Look on Life – Smaller Cases Work Too

• Immediate Death Benefit Protection

• Cash Value Creates Options Along the Way

– College funding in earlier years

– Supplemental retirement income, if needed

– Longevity income

23



24

Male, Age 32 Best Class Nonsmoker. Assumes annual premiums of $5,000 paid every year until age 65 and dividend interest crediting rate of 5.10%, which is not guaranteed. Please refer to the complete basic illustration for other important information.



25

Male, Age 32 Best Class Nonsmoker. Assumes annual premiums of $5,000 paid every year until age 65 and dividend interest crediting rate of 5.10%, which is not guaranteed. Please refer to the complete basic illustration for other important information.


New Look on Life – Smaller Cases Summary

26262626

Male, Age 32, Preferred, Non SmokerAnnual Distribution From Age 53-561: $25,000Annual Distribution at Age 661: $50,000Annual Distribution From Age 76-851: $13,747




Total Cash Received from Policy: $287,470

Total Policy Benefits: $485,252

Less Cumulative Premiums: $145,000

Net Gain in Assumed Year of Death: $340,252

Cumulative Premiums

30%

Net Gain70%


2 These illustrative values are based on the life insurance policy presented here and are entirely hypothetical. No adjustment is made for lost use of funds. It is assumed that all funds received from the life insurance policy are free of income taxation. All numbers are based on the non-guaranteed values and are not projection of future policy performance. Please see the basic illustration for greater detail, guaranteed values, as to the underlying assumptions and risks associated with life insurance policy. Also see the Assumptions and Important Information pages of the ePresentation for other information about the values and concept presented here. Any changes to any of the assumptions can have a significant impact on every other number or value shown.



Flexibility of MetLife Promise Whole Life Portfolio

27

See specific Product Guides for additional details.

For Producer or Broker/Dealer Use Only. Not for Public Distribution. 28

For Provider Universal Life, the Coverage Continuation Benefit (CCB) guarantees that the policy will remain in force, as long as the required premiums are paid, until the end of the elected guarantee period, but no later than age 95. Policy changes, withdrawals, or loans not accounted for at the time the CCB premium was determined will affect the CCB guarantee’s duration or cause the policy to lapse. If the CCB terminates, the policy will stay in force as long as either its cash value is sufficient to pay for the policy’s monthly charges or a premium payment sufficient to pay those charges is made within the policy’s grace period. The CCB does not guarantee the policy’s cash value. If only the premium to maintain the CCB guarantee is paid, the policy cash value could become a negative amount. In that situation, the monthly deductions for policy charges will be accumulated without interest. This amount must be repaid before any cash value can be accumulated.

Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. Clients should seek advice based on their particular circumstances from an independent tax advisor.

MetLife, its agents and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. Clients should consult with and rely on their own independent legal and tax advisors regarding their particular set of facts and circumstances. MetLife insurance policies have limitations, exclusions, charges, termination provisions and terms for keeping them in force.

Equity Advantage Variable Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-46-06 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-46-06-NY-1. MetLife Provider Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-36-12 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-36-12-NY. Guarantee Advantage Universal Life is issued by MetLife Investors USA Insurance Company on Policy Form 5E-34-07 and in New York only by Metropolitan Life Insurance Company on Policy Form 1E-34-07-NY. MetLife One Year Term is issued by MetLife Investors USA Insurance Company, 5 Park Plaza, Suite 1900 Irvine, CA 92614 on Policy Form 5E-24-12 and in New York only by Metropolitan Life Insurance Company, 200 Park Avenue New York, NY 10166 on Policy Form 1E-24-12-NYU.Guaranteed Level Term is issued by MetLife Investors USA Insurance Company on Policy Form 5E-21-04 and in New York only by First MetLife Investors Insurance Company on Policy Form 5E-21-04-NY. MetLife Promise Whole Life, MetLife Promise Whole Life 120, MetLife Promise Whole Life Select 10, MetLife Promise Whole Life Select 20 and MetLife Promise Whole Life Select 65 are generally issued by MetLife Investors USA Insurance Company generally on Policy Form 5E-12-10 in all jurisdictions except New York, where they are issued by Metropolitan Life Insurance Company generally on Policy Forms 1E-12-10-NY and 1E-12-10-NY-A. Variable products are distributed by MetLife Investors Distribution Company (member FINRA). All are MetLife companies. All product guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company. November 2013

Life Insurance Products:• Not A Deposit • Not FDIC-Insured • Not Insured By Any Federal Government Agency

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

Metropolitan Life Insurance CompanyFirst MetLife Investors Insurance Company200 Park AvenueNew York, NY 10166metlife.com

MetLife Investors USA Insurance CompanyMetLife Investors Distribution Company5 Park Plaza, Suite 1900Irvine, CA 92614

BDWL22373 L0613330432[0714] © 2013 METLIFE, INC. PEANUTS © 2013 Peanuts Worldwide

For Producer or Broker/Dealer Use Only. Not for Public Distribution. [Presenter Name] [Date]

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