Designed for growth. Destined to provide. ULTRA INDEX SM UNIVERSAL LIFE INSURANCE LBL7376-2

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1 Designed for growth. Destined to provide. PRODUCT OVERVIEW ULTRA INDEX SM UNIVERSAL LIFE INSURANCE

2 Designed for growth. Destined to provide. Taking care of your family means more than protecting them. It means taking smart steps toward building a financially successful future. Indexed universal life insurance gives you: affordable, tax-advantaged death benefit upside potential and protection from downside market risk cash value accumulation tied to the performance of the S&P 500 Composite Stock Index (S&P 500) 1 guaranteed minimum interest rate access to your cash value 2 tax-deferred accumulation flexible policy options multiple death benefit options It makes sense to buy life insurance to protect us in case something happens. But we also want to take advantage of opportunities to help make our money grow. Karen Table of Contents: 01 Indexed Life Insurance 03 Protecting with Life Insurance 05 Growing Cash Value Indexed Account Providing Flexibility 11 Custom Coverage Options 12 Why LBL?

3 01 Ultra Index Product Overview INDEXED LIFE INSURANCE Protect your family and prepare them financially. You need life insurance to protect your family if something should happen to you. Meanwhile, you also want to pursue financial growth to prepare for the realities of a good, long life. Ultra Index SM from Lincoln Benefit Life Company may help you accomplish both of these goals at the same time. This innovative universal life insurance policy gives you the security you expect from life insurance and the opportunity you want from the promise of the markets. Universal life insurance provides the security of a death benefit to your family while also allowing you to build cash value in a taxadvantaged way. Ultra Index gives you this dual benefit then goes one step further to provide access to a powerful tool for potential financial growth. The cash value in your policy grows at a rate tied to the positive changes in the S&P 500, a well-known benchmark of stock market value. 1 Ultra Index allows you to take advantage of growth potential without exposing your premium payments to downside market risk. This is because your policy is guaranteed to deliver a minimum interest rate. You can rest assured that the cash value in your policy is protected. To ensure that Ultra Index suits you and your family, you can customize your policy s death benefit and payment schedule, and access your cash value through partial withdrawals and loans. 2 It s a policy that adapts to the changes in your life. Designed for growth. Destined to provide. That s what Ultra Index is all about. It s a policy you hold onto, from a company you trust. 1 Please note that you cannot invest directly in the S&P 500. S&P 500 does not reflect dividends paid on the stocks underlying the S&P Partial withdrawals and surrenders from life policies are generally taxed as ordinary income to the extent the withdrawal exceeds your investment in the contract, which is also called the basis. In some situations, partial withdrawals during the first 15 policy years may result in taxable income prior to recovery of the investment in the contract. Loans are generally not taxable if taken from a life insurance policy that is not a modified endowment contract. However, when cash values are used to repay a loan, the transaction is treated like a withdrawal and taxed accordingly. If a policy is a modified endowment contract, loans are also taxable, and loans, withdrawals and surrenders are treated first as distributions of the policy gain subject to ordinary income taxation, and may be subject to an additional 10% federal tax penalty if made prior to age Loans, if not repaid, and withdrawals reduce the contract s death benefit and cash surrender value. All guarantees are based on the claims-paying ability of Lincoln Benefit Life Company.

4 02 Ultra Index Product Overview Karen and I have a lot of plans. I want to make sure they become reality especially if something were to happen to me. Alan Alan enjoys a challenge. As regional manager for a growing company, he understands that prudent risks are essential to success. He also believes in having a backup plan.when it comes to preparing for the future, Alan wants to ensure that his money has a chance to grow over the years as well as provide safeguards that protect his wife, Karen.

5 03 Ultra Index Product Overview PROTECTING WITH LIFE INSURANCE Sheltering your loved ones. Ultra Index SM gives you the security of life insurance at a competitive premium, providing a death benefit that could give your family ready financial support if you weren t there to take care of them. You can tailor Ultra Index to deliver the blend of cash value and death benefit you need. For example: OPTION 1: If you want to build your policy s cash value while ensuring adequate death protection, you can choose a level death benefit, which stays constant over time. As a universal life policy, Ultra Index provides permanent coverage. This means that, unlike life insurance policies that cover you for 10 or 20 years then run out, your Ultra Index policy is one you can keep for life the policy remains in force provided sufficient premiums are paid. Life s full of surprises; so Ultra Index is designed to adjust to your financial situation as it changes. You have opportunities to increase or lower your death benefit, accelerate or slow down your premium payments, take loans from your cash value, and even access your death benefit, in certain circumstances, while you are still alive. 3 If you re more interested in a rising death benefit, you can pick one of our increasing death benefit options. OPTION 2: This option will provide your beneficiaries with the specified death benefit plus the policy value. Excellent coverage at an affordable price: that s where the value of Ultra Index begins. But there s much more to this innovative policy including an opportunity to tie into potential increases in the S&P 500. OPTION 3: The other increasing death benefit option will provide the specified death benefit, plus total premiums paid, reduced by any partial withdrawals. 3 Partial withdrawals and surrenders from life policies are generally taxed as ordinary income to the extent the withdrawal exceeds your investment in the contract, which is also called the basis. In some situations, partial withdrawals during the first 15 policy years may result in taxable income prior to recovery of the investment in the contract. Loans are generally not taxable if taken from a life insurance policy that is not a modified endowment contract. However, when cash values are used to repay a loan, the transaction is treated like a withdrawal and taxed accordingly. If a policy is a modified endowment contract, loans are also taxable, and loans, withdrawals and surrenders are treated first as distributions of the policy gain subject to ordinary income taxation, and may be subject to an additional 10% federal tax penalty if made prior to age Loans, if not repaid, and withdrawals reduce the contract s death benefit and cash surrender value.

6 04 Ultra Index Product Overview Alan and I are realistic about our responsibilities. I feel like we ve planned for what lies ahead. It s that peace of mind that means we have more time to enjoy today. Karen After running a business for 15 years, Karen understands the balance between protecting what you have and seizing opportunities to grow. She wants to make sure she receives solid value for her money.

7 05 Ultra Index Product Overview GROWING CASH VALUE Nurture your financial future through indexed and fixed accounts. Ultra Index SM helps you build cash value by setting aside part of your premium and by letting you choose whether you d like it placed in a fixed account, an indexed account, or any combination of the two. As your financial needs and risk tolerance change over time, you can transfer between the two accounts. 4 The Fixed Account in Ultra Index works similar to traditional universal life policies. It accumulates value for you at a declared interest rate that is guaranteed never to be below 2%. While the Indexed Account interest will fluctuate more than a fixed account from year to year, over a long time horizon the upside potential of the equity market may make the Indexed Account an attractive option. The Indexed Account credits interest using a calculation tied to the performance of the S&P 500 5, providing a powerful tool for potential financial growth. For the portion of your policy value allocated to the Indexed Account, interest is linked to the upward movement of the S&P 500, subject to an annual cap. Meanwhile, you are protected from downside market risk through an annual floor built into the policy. Over the years, you might build cash value you can access through loans or withdrawals to help cover emergency expenses or help supplement your savings for retirement or your children s education. 6 Your policy value is based on the amount and timing of your premium payments, monthly deductions, and interest credited to your policy. Cost factors are subject to change but will never exceed the maximums listed in your policy. Interest is subject to change and will depend on the allocation of policy value between the Indexed Account and Fixed Account but will never be less than the minimums listed in your policy. 4 Transfers are subject to the policy terms and conditions. 5 Please note that you cannot invest directly in the S&P 500. S&P 500 does not reflect dividends paid on the stocks underlying the S&P Loans are generally not taxable if taken from a life insurance policy that is not a modified endowment contract. However, when a policy is surrendered, the cash values are used to repay a loan, and the transaction is treated like a withdrawal and taxed accordingly. Partial withdrawals and surrenders from life policies are generally taxed as ordinary income to the extent the withdrawal exceeds your investment in the contract, which is also called the basis. In some situations partial withdrawals during the first 15 policy years may result in taxable income prior to recovery of the investment in the contract. If a policy is a modified endowment contract, loans are treated as taxable distribution to the extent of policy gain. Loans and surrenders are treated first as distribution of the policy gain subject to ordinary income taxation, and may be subject to an additional 10% federal tax penalty if made prior to age Loans, if not repaid, reduce the contract s death benefit and cash value.

8 06 Ultra Index Product Overview How does the Indexed Account work? When you choose to allocate a portion of your premium to the Indexed Account, you trigger the creation of what is called an Indexed Segment. An Indexed Segment accrues interest based on the S&P 500 performance between the start date of the segment (investment date) and its maturity date, which is one year after its creation. Indexed Segments are created on the 15 th of every month, which means you can have as many as 12 different IndexedSegments in various stages of maturity at any given time. Your Indexed Account is the combined value of these Indexed Segments. Interest is credited on each individual Indexed Segment with interest applied to the Indexed Segment on the maturity date. Here is how this interest is calculated: Index interest is credited by taking the change in the S&P 500 from the investment date to one year later and multiplying it by a participation rate of 100% to determine the interest that is credited. The credited interest is subject to a cap that is guaranteed never to be less than 3%. In addition, money allocated to the Indexed Account will never be credited less than the guaranteed minimum interest rate of 0%. Any amount deducted from an Indexed Segment between the investment date and the Indexed Segment s maturity date (due to a partial surrender, face amount decrease, policy loan, or monthly deduction) will not receive the interest that might have been credited had such deductions not occurred. However, for any monthly deductions for cost of insurance and expense charges taken from the Indexed Account, a fixed interest credit will be applied to that amount at the time of the deduction. This credit will provide interest from the investment date for that Indexed Segment to the date the deduction was taken at a rate equal to the current interest rate for the Fixed Account.

9 07 Ultra Index Product Overview What happens to my premiums? New premium you allocate to the Indexed Account will transfer to the Indexed Account on the 15 th of the month on or following receipt of this premium. In addition, transfers you request from the Fixed Account to the Indexed Account will occur on the 15 th of the month. Transfers from your Indexed Account can only occur on the Indexed Segment Maturity Date of a specific Indexed Segment. Deductions are taken from accounts using this process: Deductions for cost of insurance, expenses and rider charges will first be taken from the Fixed Account if sufficient funds exist. If there is not enough unloaned Fixed Account value to cover the entire deduction, the deduction will be assessed pro-rata against the unloaned Fixed and Indexed Accounts. Within the Indexed Account, the most recently renewed or created Indexed Segment will be assessed with deductions first. If that Indexed Segment is depleted, the next most recently renewed or created Indexed Segment will be assessed the remainder of the deductions. The deductions will continue in a similar manner until all deductions have been charged. Guaranteed minimum interest rate for Ultra Index SM Fixed Account For values allocated to your Fixed Account, the minimum annual interest rate is 2%. Indexed Account For values allocated to your Indexed Account, the minimum annual interest is equal to the floor, which is 0%. Ultra Index also provides a Cumulative Guarantee Value across the combined Indexed and Fixed Accounts. This guarantees that at the time of death or surrender, the policy will provide a benefit at least equal to what would be paid had a 2% interest rate been applied both to the Fixed and Indexed Accounts in all policy years.

10 08 Ultra Index Product Overview Alan and Karen have spent their adult lives running and managing businesses. Having contingency plans in place was always a smart practice at work. So being prepared in life is just natural for them. PROVIDING FLEXIBILITY Designed to adapt as your life changes. Ultra Index SM is a flexible policy that lets you customize your coverage and payments as your life and family s needs change. The only thing that s certain is change; so it s important that Karen and I are prepared for the unpredictable. Life insurance can help us with the what-ifs that life throws our way. Alan After your policy s first year, you may raise or lower your death benefit to reflect your changing circumstances. 7 Once you ve accumulated sufficient cash value to cover the expense charges in the policy, Ultra Index lets you make less frequent payments if you find you re unable to pay your entire premium. 8 On the other hand, if you ever want to accelerate your payments to build cash value faster, you have the flexibility to do that as well. Loans, Withdrawals and 9, 10, 11 Accelerated Benefits If you ever need the cash value in your policy, you can take withdrawals or loans. Withdrawals and loans may be treated as a taxable event; so consult your tax advisor. You may take partial withdrawals from the cash surrender value of the policy. The cash value and the death benefit of the policy will decrease by the amount of the withdrawal. A $25 administration fee applies to each partial withdrawal request. 7 Increases in death benefit are subject to underwriting approval. 8 The length of time your policy is in effect will be subject to change if you elect to make less frequent premium payments. Please contact your agent for details. 9 Loans are generally not taxable if taken from a life insurance policy that is not a modified endowment contract. However, when a policy is surrendered, the cash values are used to repay a loan, and the transaction is treated like a withdrawal and taxed accordingly. Partial withdrawals and surrenders from life policies are generally taxed as ordinary income to the extent the withdrawal exceeds your investment in the contract, which is also called the basis. In some situations partial withdrawals during the first 15 policy years may result in taxable income prior to recovery of the investment in the contract. If a policy is a modified endowment contract, loans are treated as taxable distribution to the extent of policy gain. Loans and surrenders are treated first as distribution of the policy gain subject to ordinary income taxation, and may be subject to an additional 10% federal tax penalty if made prior to age Loans, if not repaid, reduce the contract s death benefit and cash value.

11 09 Ultra Index Product Overview For additional flexibility, Ultra Index also lets you take out loans from your policy. If you take out a policy loan, the loaned amount will grow (interest is charged) until it is repaid. However, the loaned amount also is treated as part of your total policy value at the same time; so it grows at a guaranteed rate of 2%. Your net cost for the loan is the difference between the loan interest rate and the 2% rate you are earning on the loaned funds. Under certain conditions you can tap into the death benefit itself. For example the Terminal Illness Rider (UL0619 series) provides up to 80% of your death benefit or $250,000, whichever is less, if you are diagnosed with a 10, 11 terminal illness. The Permanent Confinement Rider (UL0416 series)* lets you access up to 80% of your death benefit or $250,000, whichever is less. To qualify for the benefit, an insured must have been confined to a nursing care facility for at least 12 months, be expected to remain there for the rest of his or her life and have been certified as 10, 11 chronically ill. Passing on your estate Generally, Ultra Index allows your beneficiaries to receive the death benefit with no state or federal income taxes due so your family, and not the government, reaps the policy s benefits. With proper planning, your policy may even provide your beneficiaries with ready funds to pay estate taxes. Talk with your tax advisor. 10 The Accelerated Death Benefit may or may not qualify for favorable tax treatment under the Internal Revenue Code of 1986.This depends on factors such as your life expectancy at the time benefits are accelerated or whether you use the benefits to pay for required qualified long-term care expenses. If the Accelerated Death Benefit qualifies the Benefit will not be subject to federal income taxation.tax laws relating to the Accelerated Death Benefits are complex. You should consult with a tax advisor about how you can receive the Accelerated Death Benefit excludable from income under federal law. In addition, receipt of the Accelerated Death Benefit may affect your or your family s eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children (AGDC), supplementary social security income (SSI) and drug assistance programs. You should consult with social service agencies concerning how receipt of such a payment will affect eligibility for public assistance. 11 Please see rider for terms, conditions and restrictions. Subject to state specific terms and availability. Administrative expense charged if benefit is exercised. Consult your tax advisor for additional information. *Permanent Confinement Rider (UL0416) is not available in MA.

12 10 Ultra Index Product Overview Now that we have some answers to the tough questions, we are ready to move on. Even if we haven t thought of everything, we feel more confident because of the decisions we ve made. Alan Alan and Karen are planning for a long life together a life that is filled with dreams and opportunities for growth. They also know they may face some challenges ahead. Alan has planned carefully to assure their future is protected. He ll tell you that what s important is having security both physically and fiscally.

13 11 Ultra Index Product Overview 12, 13 Custom coverage options. COVERAGE OPTION Accidental Death Benefit Rider (UL0613 series) Additional Insured Rider (UL0725 series) Children s Level Term Rider (UL0615 series) Continuation of Premium Rider (UL0614 series) Prime Term Rider (UL0726 series) Guaranteed Insurability Rider (UL0706 series) Overloan Protection Rider (UL0716 series) DESCRIPTION Provides additional coverage if the insured dies accidentally. Provides life insurance coverage on an additional insured related to the primary insured, such as a spouse, grandchild, sibling, child or parent. Provides up to $20,000 in coverage for children of the insured up to age 17.This coverage can be exchanged for a new policy, without evidence of insurability; up to the child s age 25 or the primary insured s age 65, if earlier. Ensures that premium payments continue if the primary insured becomes totally disabled. Provides additional coverage on the primary insured. Allows you to increase your policy face amount without additional medical exams on scheduled dates or upon the occurrence of certain life events. Available to insured s ages 0 to 38 who are classified as standard or better. Prevents your loan obligations from unintentionally triggering a policy lapse or taxable withdrawal event. Certain conditions must be met prior to exercising this rider.there is a charge for this rider if the benefit 14, 15 is exercised. 12 Terms and limitations will apply. Additional costs may apply. Subject to state availability. 13 Guarantees are based on the claims-paying ability of Lincoln Benefit Life. 14 The rider is attached to the policy when it is issued. If the rider benefit is exercised, the policy will not lapse even if policy loans exceed the surrender value. If the benefit is exercised, a one-time charge of 4.5% of the policy value will be deducted.the rider benefit is only available if certain conditions are met.these conditions include, but are not limited to, the requirement that the policy be in force for 15 years, the insured has attained age 75, the sum of all withdrawals must be at least equal to the sum of all premiums paid, and the death benefit selected under the policy must be death benefit option 1.The rider benefit is not available if the policy is a Modified Endowment Contract (MEC) or would become a MEC upon exercise. Please consult your tax advisor before exercising benefits under the Rider. For more information on the terms, conditions, and use of the rider please refer to the policy contract and prospectus. 15 Partial withdrawals and surrenders from life policies are generally taxed as ordinary income to the extent the withdrawal exceeds your investment in the contract, which is also called the basis. In some situations, partial withdrawals during the first 15 policy years may result in taxable income prior to recovery of the investment in the contract. Loans are generally not taxable if taken from a life insurance policy that is not a modified endowment contract. However, when cash values are used to repay a loan, the transaction is treated like a withdrawal and taxed accordingly. If a policy is a modified endowment contract, loans are also taxable, and loans, withdrawals, and surrenders are treated first as distributions of the policy gain subject to ordinary income taxation, and may be subject to an additional 10% federal tax penalty if made prior to age Loans, if not repaid, and withdrawals reduce the contract s death benefit and cash surrender value.

14 12 Ultra Index Product Overview Why choose Lincoln Benefit Life for my life insurance needs? Experience You want to entrust your financial security where you feel confident, and a company s history can help give you that confidence. Lincoln Benefit Life has a track record of more than 70 years in providing customers with responsive insurance and annuity products through our agency partners. Strength There is strength in our numbers. Lincoln Benefit Life is a large, stable company and is a subsidiary of Allstate Life Insurance Company (Allstate Life). Allstate Life had nearly $68.0 billion in investments, including Separate Account Assets, as of December 31, * Our financial strength and ability to meet our obligations to our policyholders have earned us high rankings from independent analysts. Just as important, we pride ourselves on the strength of our products and services, which provide an exceptional value to our customers. Relationships When you re facing decisions this important, it can help to rely on the assistance of someone you trust. You may want a company with a proud history of helping people just like you. Lincoln Benefit Life is proud to be an Allstate company. * Substantially all of Lincoln Benefit Life Company s contract-related assets are transferred under reinsurance agreements to Allstate Life and such assets are owned and managed by Allstate Life. Allstate Life s commitments under the reinsurance agreements support our general account obligations, but provide no direct contractual relationship between you and Allstate Life.

15 13 Ultra Index Product Overview How do you protect your family? How do you prepare financially for the future? These are essential questions we encounter as we move through life, and they deserve our prudent and informed decision-making. By working with professionals such as your financial representative and Lincoln Benefit Life you can clarify your goals, and get answers to your questions. You also can secure protection and financial growth solutions designed to meet your needs today as well as tomorrow. The careful planning you do today may help you to better protect and provide for your loved ones.

16 The Strength of Lincoln Benefit Life For more than 70 years, Lincoln Benefit Life Company (Lincoln Benefit Life) has been an innovator in bringing insurance and annuity products to policyholders nationwide. Lincoln Benefit Life was acquired in 1984 by Allstate Life Insurance Company (Allstate Life). Lincoln Benefit Life and Allstate Life have more than 120 years of combined experience and are subsidiaries of the Allstate corporation, a Fortune 100 company, that provide insurance protection to approximately 17 million U.S. families. Lincoln Benefit Life prides itself on strength, stability and integrity, as well as its ability to provide product solutions and professional assistance to help you and your family achieve your lifelong dreams Not FDIC, NCUA/NCUSIF insured Not insured by any federal government agency Not a deposit Not guaranteed by the bank or credit union May go down in value Please note that neither Lincoln Benefit Life Company nor its agents and representatives can give legal or tax advice. Ultra Index SM is a flexible premium universal life insurance policy issued by Lincoln Benefit Life Company, Home Office: Lincoln, NE, a wholly owned subsidiary of Allstate Life Insurance Company, Home Office, Northbrook, Illinois. Ultra Index is available in most states with contract series UL0730. Standard & Poor s, S&P, Standard and Poor s 500, S&P 500, and 500 are trademarks of The McGraw-Hill Companies, Inc., and have been licensed for use by Lincoln Benefit Life Company. Ultra Index SM is not sponsored, endorsed, sold or promoted by Standard & Poor s, and Standard & Poor s makes no representation regarding the advisability of purchasing this product. Date of first use 09/ Allstate Insurance Company Rev 07/09