Life Insurance Review Fact Finder MetLife Investors Note to Financial Professional: Please work with your clients to complete this fact finder. Then work with your life insurance design specialists or MetLife Investors Sales Support Desk who will develop a life insurance illustration and an epresentation on this concept that is customized to your clients situation. Client Information Name(s): Address: City, State, Zip Code: Life. your way Phone: Cell Phone: Advisor Name: Advisor Company: Advisor Office Address: Advisor e-mail: Advisor Phone: Advisor Fax: Life Insurance Information Client s Birthdate: Health Status: Smoker? (N/Y) Spouse s Birthdate: Health Status: Smoker? (N/Y) What type of coverage is required? survivorship coverage insuring both lives single life coverage insuring client s life single life coverage insuring spouse s life Type/Name of Product? If VUL, what hypothetical gross rate % (Name Product, or state type, e.g. universal life, variable life) (Cannot be higher than 12%) How much Death Benefit is required? $ level increasing For Producer and Broker/Dealer Use Only. Not for Use with the General Public.
Do you want Death Benefit Guarantees? (N/Y) How will premiums be paid? level premiums for life level premiums for years level premiums for minimum years possible other (please describe) Avoid Modified Endowment Contract (MEC) statute? Yes No If this is a section 1035 exchange - fill in the amount that is being exchanged into the contract $ Do you want to illustrate Death Benefit Guarantees? Yes No Other info and comments Information Needed to Present this Concept to Clients What is the Current Life Insurance Need? $ You will have the ability to compare the proposed MetLife Investors policy to the current life insurance in three (3)different years, the current year and two (2) other years that you select.what summary years do you want to show? Current year, and What is the reason this life insurance was purchased? (check one) Survivor Needs Business Continuation Estate Planning Key Person Protection Retirement Income Other Help us determine which pages you want to feature. Do you want to print? Yes No Yes No Yes No Yes No Yes No Yes No A Performance Summary page detailing the proposed MetLife Investors policy. A page comparing the MetLife Investors death benefits to the existing policies. A page comparing the MetLife Investors cash values to the existing policies. A page comparing the MetLife Investors premium costs to the existing policies. A page comparing the MetLife Investors death benefit guarantees to the existing policies. A section comparing UL based contracts to Par life insurance contracts. If this is Trust Owned Life Insurance (TOLI)? Yes No If so, do you want: Yes No A page that addresses issues that would concern trustees? For Producer and Broker/Dealer Use Only. Not for Use with the General Public.
NOTE: For a Life Insurance Review - You Must Fully Complete the Policy Information Below Information on Your Client s Existing Life Insurance A separate sheet should be prepared for each existing policy. MetLife Investor s Life Insurance Review epresentation can compare up to nine (9) current contracts. Name of the Current Company: What is the Current Premium? $ What is the Policy Issue Date: / / Type of Policy (check one): Universal Life Variable Universal Life Term Group Term Participating Whole Life Non-Participating Whole Life Graded Premium Other Is this policy Single Life, or Joint Life? Who is the Owner of the Contract? (check one): Insured Spouse Other Family Irrevocable Trust Business If the existing contract is a permanent contract: Are there any loans on the existing contract?: No Yes If yes the loan amount: $ Is this Policy a MEC?: Yes No What is the current crediting rate that the inforce ledger is based on?: % If there is a guaranteed crediting rate, enter it here: % Illustrated Values for the Current Life Insurance We compare your client s current life insurance policies to a proposed MetLife Investors policy.we always show the current year, plus two additional years. You select the two additional years.where the policies are permanent contracts, this should be based off an in-force ledger that is obtained from the existing insurance carrier. Be certain to fill this out, even if the policies are term. Where term policies are shown, enter zero in fields where there are no insurance values, or show the anticipated future costs based on the term life insurance illustration. Note: If you are comparing more than one policy, be certain to keep the years you are comparing consistent across all policies. Years to Compare: Current Year Year Death Benefit: $ $ $ Cash Value: $ $ $ Account Value: $ $ $ Cumulative Premiums Paid (to date): $ $ $ Guaranteed Death Benefit: $ $ $ For Producer and Broker/Dealer Use Only. Not for Use with the General Public.
Rider Information RIDER ONE RIDER TWO RIDER THREE Rider Name: Type of Rider (check one): Death Benefit Guarantee Death Benefit Guarantee Death Benefit Guarantee Return of Premium Return of Premium Return of Premium Beyond Age 100 Beyond Age 100 Beyond Age 100 Child Death Benefit Child Death Benefit Child Death Benefit Spousal Death Benefit Spousal Death Benefit Spousal Death Benefit Other Other Other $ Cost or Included/Free $ Cost or Included/Free $ Cost or Included/Free Source of Information on this Policy Check all that apply: From the Policy/Actual Contract Employer In-Force Ledger Other 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. Your 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. Your clients should consult with and rely on their own independent legal and tax advisers regarding their particular set of facts and circumstances. Life insurance products are issued by MetLife Investors Insurance Company, MetLife Investors USA Insurance Company (collectively and singly, MetLife Investors), MetLife Life and Annuity Company of Connecticut, MetLife Insurance Company of Connecticut and in New York, only by First MetLife Investors Insurance Company (MetLife Investors) and MetLife Insurance Company of Connecticut. Products are distributed by MetLife Investors Distribution Company, Irvine, CA. Prospectuses for variable life insurance issued and/or distributed by MetLife Investors Distribution Company, and for the investment portfolios offered thereunder, are available from MetLife. The contract prospectus contains information about the contract s features, risks, charges and expenses. The investment objectives, risks and policies of the investment options, as well as other information about the investment options, are described in their respective prospectuses. Clients should read the prospectuses and consider this information carefully before investing. Product availability and features may vary by state. MetLife variable life insurance policies have limitations, exclusions, charges, termination provisions and terms for keeping them in force. There is no guarantee that any of the variable investment options in this product will meet their stated goals or objectives. The account value is subject to market fluctuations so that, when withdrawn, it may be worth more or less than its original value. All product guarantees are based on the claims-paying ability and financial strength of the issuing insurance company. For Producer and Broker/Dealer Use Only. Not for Use with the General Public. 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 0609-2388 BDVL20073 L05079205 (exp. 06/09) 2007 METLIFE, INC. PEANUTS United Feature Syndicate, Inc. Metropolitan Life Insurance Company 200 Park Avenue MetLife New Investors York, NY Distribution 10166 Company 5 Park Plaza, Suite 1900 www.metlife.com Irvine, CA 92614 www.metlifeinvestors.com
MetLife Investors Life Insurance Review Ensuring life insurance coverage meets today s goals Life. your way SM
Life. your way Preserve your lifestyle. Live your dream. Build financial freedom with confidence and certainty. Discover the flexibility of life insurance protect, accumulate and transfer wealth now and in the future. Be free to live life, your way. MetLife Investors
ARE YOU CONCERNED ABOUT preserving the assets THAT YOU SPENT YEARS ACCUMULATING? HAVE YOU RECENTLY had a life changing event? ARE YOU ADEQUATELY protecting the economic value OF YOUR LIFE? Have you properly planned FOR THE UNEXPECTED? Life insurance offers unique benefits. A life insurance death benefit can avoid probate and income tax and can provide considerable leverage. With the appropriate life insurance policy, you may have a source of income tax-free funds that can be used to satisfy a variety of objectives. With life insurance, you can fulfill your promises to yourself, your family and your business. THE BENEFITS LIFE INSURANCE MAY PROVIDE: If the policy is a Modified Endowment Contract (MEC), income taxes are due upon withdrawal, and, if withdrawn before age 59 1 2, a 10% penalty tax may apply. For a non-mec contract, income taxes are due upon withdrawal, only to the extent that they exceed basis. Loaned amounts are generally not subject to income taxation. Loans and withdrawals will decrease the cash value and death benefit. A substantial benefit in exchange for a relatively low amount of premium dollars An income tax-free death benefit to your beneficiaries Estate tax-free proceeds, with proper planning Cash death benefit for taxes, or living expenses while estate is settled The potential to accumulate assets on a tax-deferred basis A source of tax-free funds to satisfy a variety of objectives, including education and retirement 1
What is a LIFE Changing? Event HAVE YOU FULLY EVALUATED THE ECONOMIC VALUE OF YOUR LIFE? Over time the economic value of your life may have increased. Do you understand the factors that you may need to consider? Some of these factors may include the following: Continuing financial responsibilities to your family or community Debts or other financial obligations Educational funding for children or grandchildren Changes in income or net worth Divorce, child support or blended family obligations Continuation of your family or community responsibilities Desire to protect your business assets, partners or key persons 2
COMMON LIFE CHANGING EVENTS INCLUDE: 1. MARRIAGE OR DIVORCE 2. BIRTH OF A CHILD OR GRANDCHILD 3. PURCHASE OF A NEW HOME 4. DISABILITY 5. OWNING A BUSINESS 6. CHANGE IN BUSINESS VALUATION 7. RETIREMENT 8. EDUCATION FOR YOUR CHILDREN 9. ELDER CARE FOR YOUR PARENTS 3
Having already purchased life insurance, you understand that there are expenses your loved ones have that they may be counting on you to provide after your death, or that you simply wish to provide for them even though you may have used great care and forethought when purchasing your coverage. Life insurance isn t an asset that can be purchased and forgotten. You should review all the aspects of your policy approximately every 1-2 years as well as any time you experience a life changing event. Most of the time, you will find that the coverage you have already purchased still meets your needs, but you may need to make certain changes like investment subaccounts or beneficiary designations. Sometimes you will find that your need for insurance coverage has either increased or decreased. You may occasionally find that due to changes in your health, medical advances or industry competition you may be able to purchase the same death benefit for quite a bit less premium. It is extremely important to review your life insurance coverage with your financial professional regularly to ensure that the coverage you have purchased is still providing the intended protection at a reasonable cost. case study #1 YOUNGER CLIENTS Jim & Laurie Our lifestyle has changed so quickly in the last few years that we didn t consider our life insurance needs. theconcern thesolution Jim and Laurie bought a term contract to pay off their mortgage in the event Jim died unexpectedly. Since then, the couple had two children and Laurie stopped working. Due to changed circumstances, their financial professional recommends a life insurance review and points out several things to them. The term policy they purchased and Jim s group term contract through his employer is not enough to pay off the mortgage, help Laurie raise the children and pay college tuition. Moreover, their term coverage, even though level, is scheduled to have a jump in premium based on the guarantees in the contract. 4
thebenefit Through a life insurance review, their financial professional shows them how they can meet all of their needs by setting coverage at appropriate levels. Jim and Laurie now understand the importance of reviewing their protection coverage periodically and have committed to meet with their financial professional with greater frequency. This example is hypothetical, actual results may vary. 5
case study #2 BUSINESS OWNERS George & Spencer Building this business has been our focus. Now that we have a financial professional to focus on our business planning needs, we can get back to what we do best. theconcern thesolution George and Spencer are co-owners in a business. Some years ago they established a cross-purchase business continuation plan where each planned to buy-out the other in the event of a death. They funded the insurance with a combination of permanent and term coverage. The permanent coverage was variable universal life, intended to provide a source of supplemental income if the policies were not needed by retirement. The term was intended to cover any gaps in the cost of the business. Now, the business has increased tremendously in value. Their financial professional discovers that their current coverage is not sufficient to accomplish their goals. He also points out that the variable universal life insurance is underperforming and recommends reviewing current investment options. 6 Because George and Spencer have each decided to sell their share of the business to the surviving partner, even after retirement, a term policy designed to expire at retirement is no longer suitable for their needs. Fortunately, their current term policy has a conversion privilege that can be used to fund part of a new universal life insurance policy with a higher death benefit to fund their plans for the continuation of the business. At this time, they also review the investment options in the variable policies and make some changes to the subaccounts they have chosen.
thebenefit By converting their existing term insurance to universal life insurance policies that will last for their lifetimes, the survivor will be able to purchase the other half of the business no matter when the first partner dies. They are also hopeful that the changes they have made to the variable policies subaccounts will provide the potential for higher returns. This example is hypothetical, actual results may vary. 7
case study #3 CLIENTS UTILIZING A TRUST Paul & Margaret We thought our trust was on auto-pilot, but our financial professional opened our eyes to the need for a regular review. theconcern thesolution Paul and Margaret set up their estate plan ten years ago. As part of the plan they set up an irrevocable trust and the trustee purchased two second-to-die policies on their lives from two different companies. One was a participating whole life contract; the other was a universal life contract. The couple has diligently made gifts for premium payments each year, and the trust is in good shape. However, no one including the trustee has reviewed the life insurance policies during that time. At the urging of their financial professional and CPA, Paul and Margaret contacted the trustee and asked to have the policies reviewed. After a thorough analysis, it was determined that both policies were not performing as expected. Both were sold using assumptions that, while normal for life insurance policies ten years ago, are unrealistically high in today s environment. The participating whole life policy had experienced dividend cuts over the last ten years. Because the universal life policy was being credited over 500 basis points (5%) lower than the illustration upon which the policy was sold, the policy would now require premiums be paid an additional 12 years over the original period. 8
thebenefit By evaluating the newer policies on the market, it is determined that they can obtain slightly more coverage than the original policies while preserving the original premium schedule illustrated ten years ago. They were then pleased to discover that Paul is now eligible for the preferred nonsmoker class where the existing contracts had rated him Table B and as a smoker. Paul quit smoking several years ago, but never even thought to inform his existing carriers. With the new policy and improved ratings from underwriting, Paul and Margaret s trust now owns life insurance with an approximately 20% higher death benefit, and a reduced period of premium payments. This example is hypothetical, actual results may vary. 9
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. You should seek advice based on your 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. You should consult with and rely on your own independent legal and tax advisers regarding your particular set of facts and circumstances. MetLife Variable Life Policy Form #TL-15598(L-15598 in New York), MetLife Variable Life Accumulator Policy Form #TL-15598 (L-15598 in New York) and MetLife Variable Survivorship Life II Policy Form #TL-15847 (L-15847 in New York) is issued by MetLife Life and Annuity Company of Connecticut and MetLife Insurance Company of Connecticut, One Cityplace, Hartford, CT 06103-3415, depending on jurisdiction. Variable universal life insurance (VUL) is issued by MetLife Investors Insurance Company on Policy Form Series CLP001 and CP002. Guaranteed Advantage Universal Life (GAUL) is issued by MetLife Investors USA Insurance Company on Policy Form Series 5E-30-04 and, in New York only, by Metropolitan Life Insurance Company, New York, 200 Park Avenue, New York, NY 10166 on Policy Form Series 1E-30-04-NY. Legacy Advantage Survivorship Universal Life (LASUL) is issued by MetLife Investors USA Insurance Company on Policy Form Series 5E-32-05 and, in New York only, by Metropolitan Life Insurance Company on Policy Form Series 1E-32-05-NY. Universal Advantage Universal Life (UAUL) is issued by MetLife Investors USA Insurance Company on Policy Form Series 5E-31-05, and in New York only, by Metropolitan Life Insurance Company on Policy Form Series 1E-31-05-NY. Products are distributed by MetLife Investors Distribution Company (MetLife Investors), 5 Park Plaza, Suite 1900, Irvine, CA 92614. A prospectus for variable life insurance issued and/or distributed by MetLife Investors Distribution Company and for the investment portfolios are available from your financial professional or in the life insurance sales kit. The contract prospectus contains information about the contract s features, risks, charges and expenses. The investment objectives, risks and policies of the investment options, as well as other information about the investment options, are described in their respective prospectuses. Please read the prospectuses and consider this information carefully before investing. Product availability and features may vary by state. MetLife variable life insurance policies have exclusions, limitations and conditions for keeping them in force. Your financial professional can provide you with details and information related to costs. There is no guarantee that any of the variable investment options in this product will meet their stated goals or objectives. The account value is subject to market fluctuations so that, when withdrawn, it may be worth more or less than its original value. All product guarantees are subject to the terms of the policy and are based on the claims-paying ability and financial strength of the issuing insurance company. Life insurance is medically underwritten. You should not cancel your current coverage until your new coverage is in force. Surrender charges may be due on an exchange of one contract for another. A change in policy may require an examination. Surrenders may be taxable. You should consult your own tax advisors regarding tax liability on surrenders. 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 0708-5463 CLVL20075 L05079950(exp. 06/09) 07-3059A 2007 METLIFE, INC. PEANUTS United Feature Syndicate, Inc. MetLife Investors Distribution Company 5 Park Plaza, Suite 1900 Irvine, CA 92614 www.metlife.com