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Introducing A New Life Insurance Partnership. Presented by Biff Baker, CFP, CLU, ChFC National Sales Manager October 15, 2012. For Producer Use Only. The Phoenix Companies. Corporate and Product Highlights. Founded as American Temperance Life Insurance Company, Hartford, CT. 1851. 1865.

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introducing a new life insurance partnership

Introducing A New Life Insurance Partnership

Presented by Biff Baker, CFP, CLU, ChFC

National Sales Manager

October 15, 2012

For Producer Use Only

the phoenix companies
The Phoenix Companies

Corporate and Product Highlights

Founded as American Temperance Life Insurance Company, Hartford, CT

1851

1865

Insured President Abraham Lincoln

1926-50

Known as the “Retirement Income Company”

1955

First to reduce life insurance premiums for women

1967

First to lower life insurance premiums for nonsmokers

First survivorship life insurance policy offered by an American company

1982

Annual Phoenix Wealth Survey monitors financial trends, behaviors and needs of the market

2000-2010

2001

The Phoenix Companies, Inc. goes public (NYSE: PNX)

2005

First spousal guaranteed minimum withdrawal benefit rider

2006

One of the first variable products to offer actively-managed ETF asset allocation funds

2008

First to launch a guaranteed income feature for managed money

phoenix simplicity index life
Phoenix Simplicity Index Life

Why Simplicity Index Life?

  • Simplified issue – no medical exams, no lab tests
  • Only 3 “knock-Out” questions
  • Simple straightforward product
  • Tracks only one index
  • Flexibility
  • Speed to Issue

Why IUL?

  • Tax favored Death Benefit protection
  • Potential for tax favored cash value accumulation
  • Protection from market downturns
  • Tax favored access to cash value through loans/withdrawals
  • Flexible premium payment options

Benefit to You = High Compensation

simplified issue
Simplified Issue

Full service without full underwriting

  • NO medical exam
  • NO lab tests
  • NO complicated paperwork
  • Table D to Preferred/Standard
  • 72 Hour turn around
  • Ease of doing business
product overview
Product Overview

Issue ages and face amount limits

1All based on age last birthday

5

product overview1
Product Overview

Choice of Death Benefit Options

Option B:

Increasing Death Benefit

Death Benefit = Face Amount + Policy Value

Option A:

Level Death Benefit

Death Benefit = Face Amount

6

product overview2
Product Overview

Crediting methods

7

special features
Special Features
  • Persistency Bonus – Beginning in year 11, a 0.5% annual bonus will be credited to qualifying policies on unloaned policy value in the Indexed Accounts. Bonus will be applied as an increase to the growth rate of each Indexed Account segment on the segment maturity date
  • Overloan Protection – helps prevent a heavily-loaned policy from lapsing. May be exercised for loans taken under a fixed loan interest option when insured is at least 65 years old, policy has been in force for 15 years, loan balance is equal to 96% of the total policy value and premiums paid have been withdrawn.(Transaction charge applies at time of exercise)
policy charges
Policy Charges

Premium Expense Charge: 7% of all premiums paid in all years

Administrative Charge: Currently $5 per month; $7 guaranteed

Coverage Charge: Per $1,000 rate of face amount charged monthly for 10 policy years

Cost of Insurance (COI): Guaranteed COI rates based on 125% of the 2001 CSO Mortality Tables

Surrender Charge: Decreasing schedule over 10 policy years; amount varies by gender, age and risk class

9

product overview3
Product Overview

How it works

Indexed account rate credited to the cash value:

Hypothetical S&P 500 Index return:

Assumptions:

A-Cap: 10% B-Participation: 50%

A = 10.0% B = 15.0%

30%

A = 10.0% B = 5.0%

10%

Fixed Account

Indexed Account

A = 0.0% B = 0.0%

-30%

Applied to average segment balance

Annual Point-to-Point Segment

Premium Payment

Sweep on 18th of the month

12 months after sweep date

This hypothetical illustration is meant to demonstrate only how the account crediting method is designed to work, and is not a promise or projection of future returns. Past index performance does not guarantee future results. It is possible to receive a 0% index credit. Index values used to determine credits always exclude dividends. The value of the cap and participation rates used in this example is hypothetical and for illustration purposes only. Future rates are determined by the company and are not guaranteed. You should consult a company representative to ascertain current cap and participation rates for these indexed accounts.

10

sales ideas
Sales Ideas

Legacy Building Strategies

  • James Johnson, age 65
  • $50,000 CD yielding 1.5% net
  • Never “but maybe” money
  • Wants to leave a legacy to his grandchildren
  • Wants flexibility to access cash if needed
  • Does not want to subject the asset to downside market risk

Client

11

sales ideas1
Sales Ideas

Legacy Building Strategies

  • Redeploy CD to purchase Phoenix Simplicity Index Life*
  • Solve to endow at maturity to optimize death benefit
  • $50,000 single premium

Assumptions: Return Allocation

Index A Rate: 6.50% 50% Fixed Rate: 4.50% 50%

Strategy

25-year average annual return for Indexed Account A based on historical S&P 500 performance (ex-dividend) and a 10% cap rate which is not guaranteed

*Policy assumptions: male, age 65, preferred non-tobacco, $50,000 single premium, 10% cap Indexed Account A, policy becomes a Modified Endowment Contract (MEC) in year one.

12

sales ideas2
Sales Ideas

Legacy Building Strategies

  • Death benefit leverage
  • Potential for growth with downside protection
  • Flexibility to surrender policy for available cash value if needed
  • Simplified underwriting

Benefits

Let’s compare the results…

The client should carefully consider the income tax consequences prior to liquidating any fixed income asset. Performance is not guaranteed and the policy may lapse as a result of underperformance. If the funds from the fixed income asset become insufficient to cover policy charges, funds from other sources may be required to keep the policy in force. Loans and withdrawals will reduce the policy’s cash value and death benefit and may be taxable on a LIFO basis when policy is classified as a MEC. Income taxes may be due to the extent of gain upon full surrender. Guarantees are based on the claims-paying ability of the insurance company.

13

sales ideas3
Sales Ideas

Legacy Building Strategies

Life expectancy based on 2001 CSO Mortality Table

Value to Heirs (Death Benefit)

Age:

Assumptions: Return Allocation

Index A Rate: 6.50% 50% Fixed Rate: 4.50% 50%

This hypothetical illustration is meant to demonstrate only how the account crediting method is designed to work, and is not a promise or projection of future returns. Past index performance does not guarantee future results. It is possible to receive a 0% index credit. Index values used to determine credits always exclude dividends. The value of the cap and participation rates used in this example is hypothetical and for illustration purposes only. Future rates are determined by the company and are not guaranteed. You should consult a company representative to ascertain current cap and participation rates for these indexed accounts.

14

benefits to you
Benefits to You

Simplified process

Unique product

Competitive edge

15

next steps
Next Steps

We’re here to help you:

Contact the Phoenix Sales Desk for help with the following:

Running illustrations

Obtaining Applications & Forms

Ordering marketing materials

Walk-through of the PartnerCenter

888-794-4447, Option 1

slide17

Questions?

“Standard & Poor’s®,” “S&P®,” “S&P 500®” and “Standard & Poor’s 500TM” are trademarks of Standard & Poor’s Financial Services LLC (“Standard and Poor’s”) and have been licensed for use by Phoenix Life Insurance Company and its affiliates. Phoenix Simplicity Index Life is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing Phoenix Simplicity Index Life.

The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s).

Phoenix Simplicity Index Life is issued by PHL Variable Insurance Company (PHLVIC) (Hartford, CT) in all states except Maine and New York. PHLVIC is not authorized to conduct business in Maine and New York.

Members of the Phoenix Companies, Inc.