SecurePlus VIP: A Fixed Indexed Annuity (FIA) Exclusively for 401(k) Plans Phase 2 Training

1. SecurePlus VIP: A Fixed Indexed Annuity (FIA) Exclusively for 401(k) PlansPhase 2 Training Presented by: Shelby J. Smith, Ph.D.Training/Service/Support by: 401k Marketing For Agent Use Only

2. OVERVIEW • Features & benefits of FIA designed exclusively for 401(k) plans • Level Compensation based on Accumulation Value: maximum available 0.80% annually* • ‘Transfers plus flexible premium accepted from payroll deductions – minimum requirement • Early surrender period for all premiums based on initial premium date • 10% free withdrawals after year 1 – IRS penalty may apply if less that 59½ • Additional withdrawal flexibility available but GLIR may be reduced • Roll-up interest rate period is 30 years – current rate is 6% guaranteed for 10 years • Guaranteed Lifetime Income Rider (“GLIR”) is available and fee taken from accumulation account • 0.70% for first 20 years • 0.80% for all years beyond 20 • Fees continues at “then charged” amount once GLIR is activated • Nursing Home Rider approved in some states& pays enhanced GLIR income if 2 of 6 ADLs lost • GLIR can be stopped and restarted at a later date – additional withdrawal flexibility • Daily valuation, electronic administration & on-line management functionality • *No compensation paid on amounts over $1 million for single annuitant

3. Fixed Indexed Annuity offered by… • Life Insurance Company of the Southwest (Rating current as of 12/21/2012) A.M. Best: A (Excellent) S&P: A (Strong) Moody’s: A2 (Good) • About National Life: • A Fortune 1000 company serving 840,000 customers • Founded in 1848 • FIAs since 1996 (first to issue flex FIA) • LIMRA* recognized: #1 provider of FIAs for employer plans • Source: www.nationallifegroup.com • *LIMRA, U.S. Individual Annuities Executive Summary – Second Quarter 2011

4. Record Keeping & Administration • Ideal arrangement: • ExpertPlan is the record keeper & third party administrator (“TPA”) • You will have advisor’s website to track all your 401(k) plans • Employer/employees will have website access & on-line management • Private label LSW website will brand the relationship • Only ExpertPlan can record keep FIA electronically • Next best arrangement • ExpertPlan will be the record keeper but not the TPA • ExpertPlan and TPA must agree to work together • Other advantages above still available • Worst arrangement • ExpertPlan is not involved • Major disadvantages • Managed brokerage account & higher fees likely

5. Designing Your Marketing Strategy • Define your market boundaries • Geography • Size of Plan • Business specialty or group • Gathering the data on 401(k) sponsors in your market • Larkspur data base available from 401k Marketing • www.freeerisa.com is a great free resource • www.brightscope.com is a useful resource • Become familiar with: www.expertplan.com • Identifying your target prospects • Size matters • New or existing

6. Finding Prospects • Clients that are owners/executives/employees with 401(k) • Businesses you patronize & know owner/executive • Agents/agency providing businesses group health benefits • P&C agency with commercial accounts • Network with life agents serving business clients • CPAs, audit firms, TPAs & consultants servicing 401(k) market • Human resource director at local businesses • Trade organizations, unions & associations • Solo 401(k): 1099 or sole proprietor business w/ high income • What about starting a “Solo 401(k)” for yourself?

7. Attracting Prospects • Larkspur 401(k) data: call 401k Marketing • 401(k) data free: www.freeerisa.com & www.brightscope.com • Direct mail campaign targeting 401(k) sponsoring businesses • 401k Marketing has sample letters: talk to your marketer • Seminars & workshops for local businesses • Volunteer to conduct workshop for Chamber of Commerce members • Luncheon seminar for 401(k) sponsoring businesses • Guest speaker at “businessmen luncheon” or trade group • Advertise on radio, TV, local publications & direct mail • Affiliate with local bank for free 401(k) business seminars • Affiliate with P&C or work site benefits agency

8. Developing Prospects • Getting the appointment • A new development for 401(k) to save money & offer better employee benefits • A short meeting to introduce yourself to owner and/or others at business • You can help take their 401(k) from good to outstanding • Appointment 1: outline shortcomings of most small business 401(k) plan • All investments in the 401(k) are market driven – too risky for some employees • Employees rarely get professional guidance even though they pay for it • Costs are mostly hidden from 401(k) sponsors & participants • Many employees want “defined benefits” but they have “defined contributions” • Biggest fear of retirees is “running out of money before retirement ends” • If offered now the lifetime income option is inflexible & too expensive • Are any of these problems of concern to you and your employees? • If so, second meeting to go into more detail

9. Meeting 2: Developing Prospects • Your strategy • Make good impression, build rapport & establish credibility • Gather information and qualify • Close the sale • Present your solutions • Finding the pain by asking questions • Pick at the pain, but do not offer solutions • Find out what they like and don’t like about their current 401(k) • For a list of questions, call 401k Marketing marketer

10. Closing: Ask 401k Marketing for Instructions • Review the pains you found • No service & investment guidance for employees from current broker • Unknown and/or hidden fees that can be lowered • No guaranteed lifetime income option, or current one is not flexible • Single source investment choices & bundled plan • Market risks unavoidable for those approaching retirement & risk averse • Get a commitment to go the next step if you can solve problems • Presenting • Service you’ll provide as active broker of record • Same or lower fees for administration • Flexible guaranteed lifetime income for those that want • Same or better investment choices – including EFT if RIA • Managing market risks to match risk profile and suitability • Ask for the date when a proposal can be presented • Contact 401k Marketing for written instructions

11. Closing the Loop • If owner/decision maker reluctant, continue to pick at pain • If needed offer to make a presentation to select employees • Older ages that have the most to lose if markets decline • Show FIA video and discuss with them the features & benefits • Stress the flexibility • Highlight that choosing the FIA is voluntarily and GLIR is optional • www.ExpertPlan.com to register as financial partner • Thoroughly familiarize yourself with SecurePlus VIP FIA • Know in detail the ExpertPlan story and website • VIP FIA demo site @ https://www.expertplan.com/secureplusvip.jspCase Sensitive Advisor Username/Password: Secureadvisor/Password1Case Sensitive Sponsor and Employee: Securesponsor/Password1 • Work with your 401k Marketing marketer to prepare the ExpertPlan Proposal • If not using ExpertPlan as the record keeper and TPA • Confirm that TPA will accept FIA as managed account • Follow instructions of TPA to add FIA to 401(k) menu

12. Questions? Call Help Desk at 401k Marketing at 877.319.2078 for details. Talk to your 401k Marketing marketer: Andy Alvis, Celeste duPreez or Rebecca Brundage To do list: Start prospecting for 401(k) plans to add FIA Training session #3: enrollment process Training session #4: follow up & servicing