[Presenter Name][Date]

Old Way of Thinking

Life insurance is…

•“Just a necessary expense”

•“Another bill I have to pay”

•“Never going to benefit me”

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Mortgage Utilities Food Clothing Kids Education Fun Auto Insurance Disability Insurance Health Insurance Life Insurance

Bills to pay

ASSET

A resource having economic value that an individual…owns or controls with the expectation that it will provide future benefit.

Investopedia.com

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New Way of Thinking - New Look on Life

Cash value life insurance can help you…

• Protect your family in the event you die prematurely.

• Accumulate wealth by providing cash value, which can be used for college, emergencies or during retirement without tax implications, as long as the policy is properly structured and funded.1

• Transfer wealth created over a lifetime.

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Life insurance is more than just a necessary expense — it should be a key component of any financial portfolio.

1 Loans and withdrawals will reduce cash value and death benefit.

An Asset with Advantages

The benefits of a cash value life insurance policy include…• Generally, an income tax-free death benefit

paid to beneficiary

• The potential to accumulate funds through tax-deferred growth of policy cash values

• No funding limits based on income1

• Potential for income tax-free withdrawals and policy loans2

• No 10% penalty tax on cash value distributions prior to age 59½2

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1 Premiums paid into the policy have to fall within applicable federal income guidelines and are subject to certain limitations. However, these limits are not based on income.2 Loans and withdrawals will reduce cash value and death benefit . For a policy that is considered a modified endowment contract under the Internal Revenue Code, withdrawals are subject to income tax liability, and, if amounts are withdrawn before age 59½, a 10% federal income tax penalty may apply. Different rules apply in the first fifteen policy years, when distributions accompanied by benefit reductions may be taxable prior to basis recovery.

A Note About Life Insurance Distributions

• Cash value life insurance can offer tax-free distributions, but the policy must

be properly funded and certain criteria must be met– Amounts can be distributed through withdrawals up to basis (premiums paid) and then non-

taxable loans (as long as the policy remains in force)

– Withdrawals above basis would be subject to income tax liability

– In the first 15 policy years, distributions accompanied by benefit reductions may be taxable

prior to full recovery of premiums paid

• If policy becomes a Modified Endowment Contract (MEC), distributions can

become taxable and 10% penalties assessed if taken prior to age 59½ – An insurance professional can help to properly structure and fund your policy to avoid MEC

status and resulting adverse tax consequences

• Loans and withdrawals will reduce the policy’s cash value and death benefit

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Range of Options for Cash Value Life Insurance

• Universal Life– Cash value growth is based on interest rates

• Variable Universal Life– Cash value is generally based on the performance of

investments in selected options under the policy

• Whole Life– Offers guaranteed cash value growth

– For policies with the potential for non-guaranteed dividends, cash value can grow

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Potential Tax Advantages of Life Insurance

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This slide is designed to provide introductory educational information on the subject matter. MetLife does not provide tax and legal advice.You should consult your attorney and /or tax advisor before making financial investment or planning decisions.1 Distributions from a life insurance policy through withdrawals of certain policy values (up to cost basis) and loans are generally not taxed as income, provided you follow certain premium limits which prevent your policy from becoming a Modified Endowment Contract (MEC). Distributions taken during the first fifteen years may be subject to tax. Loans and withdrawals will generally reduce the cash value available and the death benefit payable. If policy loans are taken, there may be income tax consequences if you permit the policy to lapse or if the policy is surrendered or exchanged.2 Traditional IRA contributions may be deducted if certain criteria are met.3 Assuming the funds have been held in the account for at least five years and owner has reached age 59½ at the time withdrawals are taken.4 Municipal bond interest is generally tax-free for regular federal income tax purposes.

Cash value life insurance offers the advantage of a tax-free death benefit and the potential for income tax-free withdrawals and policy loans provided the policy is properly structured and remains in force.1

Evaluating Your Options

• Qualified retirement plans, IRAs and personal savings are the backbone of any successful retirement savings program

• Due to limits on contributions to qualified retirement plans and IRAs, some individuals may find they need to explore other opportunities

• Some may find the potential tax advantages of cash value life insurance appealing while offering death benefit protection

• Life insurance, although not an alternative to traditional retirement arrangements, is important for families who need life insurance’s death benefit protection; cash value policies provide the ability to protect one’s family now as well as the potential to supplement income, if needed, in the future

Current Environment

• Economic uncertainty

• People are living longer

– May need to plan to spend more money in retirement

• Future of social security is unclear

• Taxes can have a significant impact on future withdrawals from retirement plans

• Stock market volatility

• More important than ever for individuals to take control of planning for their future

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Current Environment - Tax Considerations• With cash value life insurance, you can protect your loved ones financially in the event of your

premature death.

• While the future of income taxes is unpredictable, as an added benefit, you can help minimize exposure to adverse tax impact by purchasing an asset with potential tax advantages.

• Taxes can have a significant impact on how much of any remaining assets are received by your beneficiaries.

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Internal Revenue Service, Statistics of Income Bulletin (Publication1136), Winter 2002-2003. Updated annually with current rates.

In the last thirty years, U.S. income taxes have been comparatively low. The top Marginal Tax Rate for the highest income earners is currently 39.6%, but the average top rate over the last one hundred years has been nearly 60%.

Current Environment – Retirement Considerations

• Shifting from defined benefit plans to defined

contribution plans1

• Many employer matches in retirement plans have been

reduced2

• Federal income tax limits restrict contributions. 2014

limits as follows:

• $17,500 for those under 50 in 401(k) and certain other

qualified plans ($23,000 if 50 or older)

• $5,500 for those under 50 in IRAs ($6,500 if 50 or

older)

• Cash value life insurance may be able to help

supplement retirement income for those who may have

exhausted the amount they can contribute to a qualified

retirement plan

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1 Traditional Pensions Hit Record Low, U.S. News, August 12, 20112 Why did some employers suspend their 401(k) match?, Alicia H. Munnell and Laura Quinby, Center for Retirement Research at Boston College, February 2010

Current Environment – Equities Markets

• Stock market volatility

• Investor returns have trailed the benchmarks over the last 20 years

• Many may need save additional money to help make up for the poor market performance– Cash value life insurance may be able to help supplement retirement income

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4.25%

6.05%

-0.84%

7.83%

15.56%

8.21%

2.41%1.80%

10.87%

15.98%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

20 Years 10 Years 5 Years 3 Years 12 Months

Average Equity Investor S&P 500

2012 Quantitative Analysis of Investor Behavior, DALBAR, Inc., March 2012

Whole Life Insurance

• With so much uncertainty, many may look to vehicles that do not fluctuate in value based on market performance.

• In addition to providing death benefit protection, a whole life policy can build guaranteed cash value1

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1 Guarantees are subject to the claims-paying ability and financial strength of the issuing company

For illustrative purposes only.

Dividends and Whole Life

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1 Dividends are not guaranteed.2 Loans and withdrawals will reduce cash value and death benefit.

For illustrative purposes only.

• With the potential for dividends1

– The death benefit can grow over time

– The policy cash value may increase over time

• Cash value can be accessed through partial withdrawals or loans2

Supplemental Income

• In addition to the primary purpose of providing financial protection at the insured’s death, common goals for life insurance include providing supplemental income, if needed.

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Whole Life Example

• Male, age 35, wants $500,000 of life insurance

• Likes the guaranteed growth of whole life

• Purchases MetLife Promise Whole Life policy and pays a premium of $6,240 every year

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AgeTotal

Premiums PaidGuaranteed Cash Value

Assuming Current Dividends

Cash ValueInternal Rate

of Return

55 $116,000 $116,000 $180,628 3.40%

65 $203,500 $203,500 $386,994 4.35%

75 $298,000 $298,000 $649,876 4.21%

85 $383,500 $383,500 $962,884 3.91%

For illustrative purposes only. Please request a full product illustration from your financial representative for more details. Assumptions: Male, age 35, preferred, non-smoker, $6,240premium paid annually through age 100federal income tax rate = 28%Current dividend crediting rate of 5.10% and dividend scale are not guaranteed and are likely to be changed by Metropolitan Life Insurance Company over time. The policy’s actual non-guaranteed values and benefits will be more or less favorable than those shown.

Summary

• While the primary purpose of life insurance is death benefit protection, cash value life insurance can also help you accomplish other financial goals– Provide emergency funds

– Help purchase a home/vacation property

– Help supplement retirement income

– Any other purpose

• The more educated you are about life insurance, the better it can serve your needs

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Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their qualified legal, tax and accounting advisors as appropriate.

MetLife, its agents, and representatives may not give legal, tax or accounting advice and this document should not be construed as such. Clients should confer with their qualified legal, tax and accounting advisors as appropriate.

Like most insurance policies, MetLife’s policies contain charges, limitations, exclusions, termination provisions and terms for keeping them in force. Contact your financial representative for costs and complete details.

Permanent life insurance products are issued by MetLife Insurance Company USA, Charlotte, NC 28277 and in New York only by Metropolitan Life Insurance Company. New York, NY 10166. All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company. Variable products are distributed by MetLife Investors Distribution Company (member FINRA). All are MetLife companies.

Life 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

Metropolitan Life Insurance Company200 Park AvenueNew York, NY 10166metlife.com

MetLife Insurance Company USA11225 North Community House RoadCharlotte, NC 28277

CLVL23972 L1014394057[1116] © 2014 METLIFE, INC. PEANUTS © 2014 Peanuts Worldwide