The Primerica G.O.O.D. Loan TM Program

The Primerica G.O.O.D. Loan TM Program Your Way to Financial Freedom

Agenda G e t O u t O f D e b t The Primerica G.O.O.D. Loan Your Way to Financial Freedom Debt in America Impact of Revolving Debt PFS Business Opportunity Personal Loan Product Overview PFS Requirements Target Clients Why is it G.O.O.D.? Personal Loan Processing PFS Rep Record Keeping Compensation Lessons Learned Success Stories Support / Contact Information Required Forms -2-

Debt in America U.S. Households are being squeezed by debt, jeopardizing the chances of future financial freedom and security Consumer debt (not including mortgages and home equity) has been increasing steadily since 2000 increasing 25% from $1.7T in 2000 to $2.13T or $20,000 per household in 2005. -- Federal Reserve Data, April 2005 Member households have debts that represent from 21% to 60% of assets - half of the households spend $2,500 to $5,000 / month on debt payments. -- Financial Planning Association Survey, March 2005 Adults ages 18 to 24 spend approximately 30 cents of each dollar of household income servicing debt in 2005, twice the amount in 1992. -- Federal Reserve Survey of Consumer Finances, April 2005 Americans owe a record $9,000 per household on credit cards, and hold 16 different cards. -- Money, September 2003 In 2004, non-business bankruptcies soared to 1.62 million, up from only 287,570 in 1980. -- U.S. Bankruptcy Courts Database, March 2005 The typical household, with decision-makers 43-years-old on average, has put aside only $18,750 for retirement and is banking on Social Security and pension benefits. -- Fidelity Household Survey, June 2005 40% of people over the age of 55, and 52% of all workers, have less than $25,000 in the bank for retirement (excluding value of primary residence). -- Employee Benefit Research Institute Survey, May 2005 Many credit card issuers raise the required monthly minimum payment amount from 2% to 4% of the outstanding balance. -- USA Today, December 2005-3-

Impact of Revolving Debt The Revolving Debt Trap Revolving Debt $15,000 @ 15% $525 month* 15 years, 0 months $8,200 interest Personal Loan $15,000 @ 15% $525 month fixed** 3 years, 0 months $3,700 interest Revolving credit card debt takes significantly longer to pay down AND can cost 2.2 times more in interest payments than a fixed rate personal loan * Assumes revolving payment (minimum) is 3.5% of the remaining balance or $20, whichever is greater. First month s payment is shown and term assumes continued payment of minimum amount, no additional debt incurred and payment decrease over time period. ** Assumes payment of 3.5% of initial loan amount, no additional debt incurred and payment amount remains fixed throughout term of loan. The amounts borrowed, amounts of interest paid and total cost illustrated above were rounded to the nearest $100. This illustration is hypothetical only. Each debt situation will vary. -4-

PFS Business Opportunity Adding Value to Your Business 1. Build your business Easy to start selling Easy to sell and originate (non collateralized) - No Application or Prepayment Fees charged by Citibank $.M.A.R.T. Loans start at $15,000 minimum and secured by the clients residence. - The Primerica G.O.O.D. Loan starts at $2,000 minimum 2. Expands the financial services products available through Primerica Offers a new financial option for existing clients Offers a lead product for new clients 3. Generate additional product sales Proven lead product for long term relationship building 4. Create an easy-to-execute new revenue stream for your business Competitive rates Fast, centralized application entry and processing Credit Decisions usually 2 Business Days Clients do not have to go to a Branch Office to close their loan documentation handled via the mail -5-

Personal Loan Product Overview The Product Unsecured, non-collateralized Loan Available in terms from 24-60 months Loan amounts of $2,000 $25,000 36 month term requires $2,500 minimum; 48 or 60 months, $5,000 minimum For loan amounts over $15,000, Citibank may conduct a phone interview directly with client as part of the loan process. Risk Based Priced Fixed Rate Loan Product Competitive Rates Rates are the same for homeowners and renters Rates are as low as 12.99% 0.50% rate reduction with Automatic Monthly Payments either through Citibank or ACH if enrolled prior to closing $1,000 maximum cash to client, loan is designed to consolidate debt -6-

PFSHMI Licensing Requirements What you need to do so you can begin offering the Primerica G.O.O.D. Loan Become Debt Certified Trained and Approved Where required ensure you are fully licensed or registered Submit an Independent Business Application (IBA) Upon approval you will be issued a Solution Number The Solution Number identifies you as a writing representative Must receive an approval letter from PFSHMI BEFORE taking any applications Remember The Primerica G.O.O.D. Loan is ONLY available to clients RESIDING in states where the G.O.O.D. Loan is available You MUST be authorized by PFSHMI in that state and be licensed if required To determine if you are approved for the program: RVP s call the RVP Hotline at 800-737-5596 Option 4 Future RVP s call 770-381-5885 Option 4 Email us at US_HMILICENSING@PRIMERICA.COM Check Debt Management section of POL for the most current listing of participating states -7-

Target clients Who is it G.O.O.D. for? Renters and Homeowners who want to consolidate all types of verifiable debt into one monthly payment this could result in significant monthly savings New Homeowners in home for less than 12 months with no equity This client may have renovation or furniture and appliance expenses to consolidate $.M.A.R.T. Loan clients who did not have enough equity to consolidate all debts through the $.M.A.R.T. Program Types of debt to consider when consolidating: Credit Cards (Bank and Retail) Loans (Auto, Credit Union, Finance Company, Retail Installment) Small Mortgage Balances Medical, Hospital and Funeral Expenses Other verifiable debt -8 -

Why is it G.O.O.D? The G.O.O.D. Loan Competitive Rates As low as 12.50% with Automatic Monthly Payment either through Citibank or ACH if enrolled prior to closing No processing or closing fees charged by Citibank Centralized processing and servicing Entire closing process executed through the mail No need to visit a CitiFinancial Office Client cannot be up sold to a Real Estate Loan Superior and Predictable Service -9 -

Personal Loan Processing Personal Loan Process Flow 1. PFS rep helps client complete application and gathers checklist items, i.e., copy of pay stub, signed state specific disclosures, etc. Complete the entire application including the PFS Rep Info Section. Do not forget the client communication box near the bottom of the last page. Important note: clients must have a Social Security Number TIN s (Tax Identification Numbers) are not acceptable. Clients must also RESIDE in rollout STATE, cannot just be in Representative s Territory. Obtaining income and other documents early in the process will expedite the credit review process. Note: You will need supporting information for each applicant if 2 people apply. 2. PFS rep faxes completed application and all documents to Citibank Fax to 1-800-753-7070 3. Application is reviewed by underwriting for qualification Credit score pulled Debt burden ( ATP ) and qualifying loan amount confirmed For loan amounts over $15,000, Citibank may conduct a phone interview directly with client as part of the loan process. 4. Credit decision made by underwriting usually within 2 Business Days -10-

Personal Loan Processing Personal Loan Process Flow 5. PFS rep may contact Citibank for status 1 Business Day after application submitted If the application is declined, a decline letter is sent to client (client will receive letter 7-10 days after decision). PFS reps may communicate decline to client. If the PFS rep communicates to the client that the request is declined, the reps cannot give the reasons for the decline to the client. If the application is approved for requested amount and PFS rep requested no processing contact with client: - The PFS rep is informed of approval status and terms & conditions (e.g., approval amount, interest rate, required pay-offs, docs required) - The PFS rep should contact the client with approval status and terms & conditions - Citibank will mail loan note via overnight delivery to client for signature If the application is approved for an amount lower than the requested amount ( counteroffer ) and PFS rep requested no processing contact with client, then: - The PFS rep is informed of the counteroffer approval status and terms & conditions (e.g., approval amount, interest rate, required pay-offs, docs required) - The PFS rep should contact the client with approval status and terms & conditions, get approval for counteroffer amount - The PFS rep needs to contact Citibank and advise that the counteroffer has been accepted - The closing process is identical to any other approval. Client is mailed a loan note via overnight delivery, returns it in the enclosed pre-paid 2-day return envelope, then receives the payoff checks from Citibank to mail to creditors 6. Closing / Creditor Payoff Process Citibank sends the client a loan note outlining the terms and payoffs. Client signs and returns the loan note to Citibank Citibank sends the payoff checks to the client Clients write accounts numbers on checks and send to creditors It is critical that clients be advised to mail all checks to creditors promptly. Loans accrue interest the day Citibank receives and books the signed note, not when the checks are cashed. Prompt mailing of checks will ensure their payoffs are received in a timely fashion and that they receive full benefit of the G.O.O.D. Loan. -11-

Personal Loan Processing Acceptable forms of client income verification Employed Applicants Recent Paystubs W-2 s Self-Employed Applicants 2 most recent Years tax returns including schedules PFS RVPs Rolling 12s Acceptable non-employment related income Social Security Award letter or Bank Statements Retirement Plan Income Monthly Statements Disability Income Award Letter or Statements Pension Plan Income Monthly Statements Rental Income Tax Returns - 12 -

Personal Loan Processing Loan Payment Options Clients with Auto-Deduct (ACH) from a bank will have the minimum monthly payment posted to their account from the deposit account they provided at application clients selecting this option prior to closing will receive a.50% rate reduction. Clients without Auto-Deduct (ACH) will receive a monthly statement indicating the minimum monthly payment they must remit clients can choose to change the payment method after closing on the loan to include Auto-Deduct but will not receive the.50% rate reduction benefit. In either case the client can submit additional payments via their coupon provided with the monthly statement. These amounts will be posted as principal payments and reduce their loan balance unless interest or fees on the account have accrued There is no bi-weekly payment option There is no prepayment penalty - 13 -

PFS Rep Record Keeping File Retention Record Keeping Requirements ACTUAL RECORD KEEPING REQUIRED FOR LOAN PRODUCTS FOR WHICH APPLICATIONS WERE WRITTEN Items to be reviewed On Hand Missing PFSHMI Disclosure Statement Loan Application Forms Any correspondence from client or CBNA, if applicable Loan log (Manually Maintained) It is critical that you retain copies of all loan related documents. Provide them to your branch office in SEPARATE files for each client. Do not file them with other loan program ($.M.A.R.T. or H.O.M.E. Loan) files. Check POL for record retention requirements for your State -14-

Personal Loan Compensation Primerica G.O.O.D. Loan Commission Schedule LOAN COMMISSION SCHEDULE Personal Production RVP Generational Overrides Representative 0.312% First Generation 0.227% Senior Representative 0.364% Second Generation 0.105% District Leader 0.442% Third Generation 0.080% Division Leader 0.573% Fourth Generation 0.031% Regional Leader 0.827% Fifth Generation 0.031% Regional Vice President 1.245% Sixth Generation 0.031% All commissions are paid to field representatives based on the schedule above. Compensation is paid only if the loan closes. Compensation is paid on renewals at the rate associated with your level at the time of the renewal. -15-

Personal Loan Compensation Getting Paid! Commission Example Example for $10,000 Loan Amount Writing Rep Level Writing Rep Title % Commission Amount 1 Representative 0.312% $31.20 5 Senior Representative 0.364% $36.40 10 District Leader 0.442% $44.20 15 Divisional Leader 0.573% $57.30 20 Regional Leader 0.827% $82.70 25/26 RVP 1.245% $124.50 30 First Generation 0.227% $22.70 35 Second Generation 0.105% $10.50 40 Third Generation 0.080% $8.00 45 Fourth Generation 0.031% $3.10 46 Fifth Generation 0.031% $3.10 47 Sixth Generation 0.031% $3.10-16-

Lessons Learned Important things to keep in mind ONLY submit COMPLETED applications fax application checklist and both application pages FAX disclosures and all supporting documentation with the application Incomplete applications or missing data will be faxed back to the RVP office whenever possible Ensure that your client provides new and updated loan payoff information with the application If your client is approved, FOLLOW UP with your client to ask that they sign and return the loan note promptly, write account numbers on the payoff checks when received, and then send the payoff checks to their creditors immediately - 17 -

Success Stories Daron Wohlgemuth, Regional Leader under Shane Rudman. Daron tells us he took a call from an existing life insurance client wanting to add a child rider to their coverage. The young couple came into the office and during the discussion and paperwork we discovered that they had almost $13,000 of outstanding debt in addition to their car payment. They had experienced the loss of $2,500/month of income just before Christmas. They had taken on several new lines of credit and charges to enjoy their 1st holiday celebration with their 6-month-old baby. We submitted a G.O.O.D. Loan Application to see what we could do for them with the anticipation of saving $800 a month. The outcome was that we were able to save them $865 a month. Plus, all of this led to the possibility of recruiting them and the applicant s father who is retired and looking for part-time opportunities. Kendra Odom in Steele, Missouri Kendra tells us she has submitted about 15 G.O.O.D. Loan Applications since we started the Primerica G.O.O.D. Loan Pilot Program and that she has had great success with it. One story she wanted to tell us about was with regard to the Stinnett Family. This family had a lot of consumer credit card debt. She was able to consolidate all their debt with a $15,000 G.O.O.D. Loan to be paid off in 5 years. With this new program, she was able to save them $700 a month. Kendra has told us she really appreciates all the hard work we put into this program. It s helped a lot of families already. - 18 -

Frequently Asked Questions What will happen if the loan application is incomplete? It will be returned if at all possible to the RVP s office. How can I find out the status of my client s application? You should contact Citibank at 1-800-925-2484, Option 8, 1 business day after submitting an application for the status. How long does the G.O.O.D. Loan process take? Most credit decisions are completed within 2 business days of receipt of the application. Clients will generally have the payoff checks in their possession in 14 days. It is critical that clients return signed loan notes to Citibank as quickly as possible. Clients should place their appropriate account number on all checks and mail them IMMEDIATELY to their creditors. What can the loan be used for? A G.O.O.D. Loan is for debt consolidation. The loan proceeds check can be used to payoff verifiable debt. This includes things like Taxes and Medical Expenses. Qualified clients may also receive up to $1,000 cash out. What should the client do when they receive the proceeds checks? The client should write the account number on the check and mail it to the creditor immediately. This will help ensure timely posting to their account. The client should be mindful that interest begins to accrue on their G.O.O.D. Loan when Citibank receives their loan note and the checks are mailed to them - NOT when they mail the checks to the creditor. Prompt payoffs to creditors will limit their interest expense. Does Citibank pull a credit report on each applicant? Yes, a credit report is retrieved to assist in our ATP calculations and to review the client s credit history. - 19 -

Frequently Asked Questions (con t) What costs are associated with the G.O.O.D. Loan? There are no upfront or prepayment fees associated with this loan charged by Citibank. The client is offered an interest rate based on their credit rating. The client can reduce the interest rate charged on their loan by.50% if they sign up for automatic monthly payment PRIOR to closing. What can we use to verify income? It depends on the type of income the applicant receives. For example: Self Employed Individuals Tax Returns and Schedules Salaried or Hourly Workers Recent Pay Stubs/W-2s Retired Pension or Social Security Documentation Investment Income Bank or Account Statements PFS RVP s Rolling 12 month cash flow obtained from PFS Home Office Will all clients who have a $.A.F.E. or $.M.A.R.T. Loan qualify for a G.O.O.D. Loan? No, Citibank lending criteria differs from that of CitiFinancial and Citicorp Trust Bank. If the client does not sign up for automatic payments when they close the loan can they add the option at a later date? Yes. They can add automatic payments at any time but clients will NOT receive the.50% rate reduction after the loan closes. Where can I get program supplies? All information is available on Debt Management section of POL. -20 -

Frequently Asked Questions (con t) How many G.O.O.D. Loans can a client have at a time? A client who already has a G.O.O.D. Loan may apply for an additional G.O.O.D. Loan after 6 months from the time he or she first obtained a G.O.O.D. Loan. A client will not be approved for 2 separate G.O.O.D. Loans within a 6 month period, whether it is a joint or an individual application. However, a client may apply to refinance an existing G.O.O.D. Loan at anytime up to $25,000 (Maximum G.O.O.D. Loan Amount, if the client qualifies for it). For loan amounts over $15,000, Citibank may conduct a phone interview directly with client as part of the loan process. How many trade lines must a client have to qualify for a G.O.O.D. Loan? A client must have at least 1 trade line (evidence of existing credit) reporting on the credit bureau for at least 12 months. Qualification for a G.O.O.D. Loan is all Risk Based, meaning that loan approval depends on information that Citibank obtains from the client s Credit Report and his or her ability to repay the loan. -21-

Contact Information Contacts Fax: 1-800-753-7070 PFS Status Line: 1-800-925-2484 (M-F, 8 am 7 pm Central Time) Option 8 Call for status within 1 business day after faxing application kit Reps must provide solution # and client name or SSN Notes: Unless noted on the application in the PFS Use Only section, Citibank operations will contact the client directly regarding application information and credit decision PFS rep may only communicate lender s specified offer / counteroffer information to client PFS rep may not negotiate credit decision (decline, rate or amount) with Citibank POL: Program related materials and other information are available on Debt Management section of POL. -22-

Required Forms Required Forms Exhibit 1: Application Exhibit 2: Application Checklist Exhibit 3: Sample Disclosure Statement Exhibit 4: Loan Log -23-

Exhibit 1 Personal Loan Application -24-

Exhibit 2 Application Checklist -25-

Exhibit 3 Sample Disclosure -26-

Exhibit 4 Loan Log PRIMERICA G.O.O.D. LOAN TM LOG RVP Name: Solution No.: FOR MONTH OF, 20 DATE OF APPLICATION APPLICANT S NAME AND ADDRESS SOLICITING REP S NAME & SOLUTION NUMBER AMOUNT OF LOAN REQUEST DISPOSITION OF LOAN (B, DL, DA) DATE OF DISPOSITION AMOUNT OF LOAN BOOKED COMMISSION AMOUNT Disposition Options: ONE MONTH PER PAGE B = Approved by Lender If no business in one month, please fill in the Log stating: DL = Denied by Lender No business this month DA = Declined by Applicant All Loans Submitted To and Funding Provided by Citibank, N.A. 5.2006 Primerica Financial Services Home Mortgages, Inc. is the Broker. Broker Accepts No Payments Whatsoever; Fees and Charges Are Collected by Lender. Lender Pays Broker a Commission if and only if the Loan is Closed. Loan Numbers for Booked Loans Are Created by Lender. -27-