Consumer LIF PRO powerpoint Compliance Approved 16810 2380310

Life Insurance Funded Personal Retirement Option : 

Life Insurance Funded Personal Retirement Option Presented by:

Slide 2: 

This seminar is for informational purposes only. Attendees should consult with their own professional advisors to determine the appropriateness of any course of action. In order to comply with certain U.S. Treasury regulations, please be advised of the following: Unless expressly stated otherwise, any U.S. Federal tax advice contained in these materials is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service. This seminar is presented by a licensed insurance professional. It discusses life insurance as option for accumulating supplemental retirement funds on a tax advantaged basis. Disclosure

Slide 3: 

A recent Gallup Poll asked individuals about their retirement plans: 46% say they will have enough money to live comfortably once they retire (down from 59% in 2002 – 2004) 34% indicate they will now retire after age 65 27% indicated they will retire at age 65 29% indicated they will retire before age 65 LIF PRO The Situation: Gallup’s “Economy and Personal Finance Poll” (April 29, 2010)

Slide 4: 

When you retire, where will your retirement dollars come from? According to the 2010 Gallup Poll of 1,020 national adults: 45% expect their 401(k), IRA, Keogh or other retirement savings to be a major source of income 34% will rely on Social Security as their main source of income 23% have a work-sponsored pension plan to provide income 22% will use personal savings accounts and CDs 20% will rely on individual stocks and mutual funds or home equity 18% will need to have a part-time job (10% in 2001) LIF PRO The Situation: Gallup’s “Economy and Personal Finance Poll” (April 29, 2010)

Slide 5: 

Market Volatility Social Security LIF PRO The Major Concerns:

Slide 6: 

34% of the surveyed people who have not yet retired expect Social Security to be a major source of retirement income*. For people currently retired, 54% indicate Social Security is the major source of their retirement funds. 2010 Annual Reports from Social Security & Medicare Boards of Trustees: Current outflows will exceed tax receipts this year As “Boomer” continue aging, after 2014 deficits are expected to grow rapidly due to more beneficiaries than covered workers Social Security trust funds exhausted by 2037 No legal authority to continue paying full benefits LIF PRO Social Security * Gallup’s “Economy and Personal Finance Poll” (April 10, 2010)

Slide 7: 

LIF PRO Alternatives Personal Assets Annual Limits on Contributions Tax-Deferred Accumulation Tax-Preferred Distribution Income Tax Free Death Benefit Traditional IRA Yes Yes No No Roth IRA Yes Yes Yes Yes Qualified Plan [401(k)] Yes Yes No No CD No No No No Mutual Funds No No No No Municipal Bond Fund No No No No Individually Owned Deferred Annuity No Yes No No Universal Life Insurance No Yes Yes Yes

Slide 8: 

Tax-deferred accumulation Tax-preferred distributions Income tax-free death benefit No income limits on participation Why INDEXED U.L.? Upside potential Limited downside market risk Tax-free Death Benefit assumes the policy stays in-force; estate taxes may apply. Indexed Universal Life is not a stock market investment and does not directly participate in any stock or equity investments. Market Indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks; a market-indexed insurance product is not comparable to a direct investment in the equity markets. Clients who purchase IUL are not directly investing in a stock market index. LIF PRO Why Life Insurance

Slide 9: 

Select life insurance policy – Aviva’s Indexed Universal Life Insurance You are the Owner and Insured of the life policy Apply for minimum allowable death benefit required under existing law (Amount could increase based upon your specific needs.) Establish appropriate schedule of premiums Usually paid until retirement Policy cash value can be accessed during retirement for supplemental income Beneficiaries will receive a valuable income tax-free death benefit to provide continuing support LIF PRO How It Works

Slide 10: 

LIF PRO Diagram Beneficiaries Death Benefits Owner/Insured Premiums Cash Value Access

Slide 11: 

Steve Smith is currently 45, a Premier risk class (Best) with a 35% effective income tax rate) Already making maximum deferrals to the employer’s 401(k) plan Taxable income is too high to participate in IRA or Roth IRA Wants to find an additional tax-efficient retirement savings opportunity ($500/month) Plans on retiring at age 67 (22 years from now) Can LIF PRO benefit Steve? LIF PRO Hypothetical Example This hypothetical example is for illustration purposes only and is not intended to predict future performance.

Slide 12: 

LIF PRO Example: Lifetime Builder Indexed UL These are projected, non-guaranteed values. Not valid without full basic illustration. $500 monthly premium for 22 years Male, Age 45 Premier (Best) Rating $133,222 Initial Death Benefit Distribution Beginning at Age 67

Slide 13: 

LIF PRO Example: Lifetime Builder Indexed UL These are projected, non-guaranteed values. Not valid without full basic illustration. 20 years distributions beginning at age 67 $28,013 annual income tax-free distributions using the projected interest rate of 7.65%. This rate is not guaranteed. $43,096 before-tax equivalent (35% income tax bracket) $321,728 projected death benefit at age 90. This death benefit is not guaranteed.

Slide 14: 

Helped Steve save additional funds for retirement in a tax-efficient vehicle Tax-deferred accumulation Tax-preferred distributions Income tax-free death benefit to beneficiary $6,000 per year in premiums for 22 years $28,013 annual income tax-free distributions for 20 years $43,096 before-tax equivalent income (assuming 35% income tax bracket) Significant income tax-free death benefit remaining LIF PRO What Did We Accomplish?

Slide 15: 

Questions? Lifetime Builder III [2ECG10] is issued by and all policy benefits are the responsibility of Aviva Life and Annuity Company, and not that of any other insurer or company.