Prepared for                                                                            Flexible Premium Adjustable Univer...
Prepared for                                                                                        Flexible Premium Adjus...
February 28, 2011                                                                                      A Life Insurance Po...
Midland National Life Insurance Company                                             Life Insurance Policy IllustrationPrep...
Midland National Life Insurance Company                                          Life Insurance Policy IllustrationPrepare...
Midland National Life Insurance Company                                           Life Insurance Policy IllustrationPrepar...
Midland National Life Insurance Company                                               Life Insurance Policy IllustrationPr...
Midland National Life Insurance Company                                                 Life Insurance Policy Illustration...
Midland National Life Insurance Company                                                    Life Insurance Policy Illustrat...
Midland National Life Insurance Company                                                  Life Insurance Policy Illustratio...
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Gary 250k Egul

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Gary 250k Egul

  1. 1. Prepared for Flexible Premium Adjustable Universal LifeGary R. Scherr Essential Guaranteed Universal Life LIFE INSURANCE FOR YOUR CHANGING NEEDSLife insurance can provide valuable benefits to your beneficiaries in the event of your untimely death. But are you confident thatyour life insurance needs will be exactly the same in the future as they are today? Will death-benefit protection be your primaryconcern if you are no longer able to care for yourself? With Midland National, your policy provides additional benefits that, atnoadditional premium, are designed to provide you with the flexibility to help meet your changing needs.The following values are based on the non-guaranteed values of the Basic Life Insurance Illustration and are provided todemonstrate the benefits that may be available to you. As you consider these approaches, please be aware that utilizing any of thesebenefits would reduce the values projected in the Basic Life Insurance Illustration from the point of election going forward.Death Benefit The policy provides financial protection for your beneficiary in the event of your death. The generally tax-free Death Benefit can be used for many financial needs such as final expenses, debt repayment and estate taxes. Projected Death Benefit at age 80 $250,000 1Cash-Value Accumulation This policy is designed for death benefit protection rather than cash value accumulation. Taking a loan2 or withdrawal2 may jeopardize your death benefit guarantee. Projected Account Value at age 80 $0 1Accelerated Benefit These riders are automatically included on your Policy at no additional premium; however, there isRiders an administrative fee when benefits are elected. They offer you the flexibility to access a portion of your Death Benefit should you develop a covered chronic or terminal illness. The Death Benefit your beneficiaries receive will be reduced by the amount accelerated. ABR-C (Chronic Illness) - If you become chronically ill (unable to perform at least two activities of daily living 3 or suffering from severe cognitive impairment 4), the ABR-C will allow you to advance a portion of your Death Benefit as frequently as monthly. You can use the benefit in any way that you wish, such as helping to pay for a nursing home or home health care assistance. The maximum amount available to advance at age 80 is $5,000 per month 1, however since this benefit is paid prior to death, the payment you receive will be discounted. Projected Maximum Payment under ABR-C at age 80 $3,979 per month 1 ABR-T (Terminal Illness) - If you become terminally ill (life expectancy of 24 months or less), the ABR-T will allow you to advance a portion of your Death Benefit as a lump sum. The maximum amount available to advance at age 80 is $125,000 1, however since this benefit is paid prior to death, the payment you receive will be discounted. Projected Maximum Payment under ABR-T at age 80 $108,979 1Each of the benefit amounts shown assumes that none of the other benefits described above has been elected or received. Seethe specific conditions and limitations described in each of the Rider forms .1All the numeric values on these pages are derived from projected policy values using current assumptions – in regard to policy charges,cost of insurance rates, interest rates and are subject to change. (Maximum payments of Accelerated Benefits are calculated using a 7%interest rate.) These assumptions are not guaranteed. On a guaranteed basis, the amount of the benefits described may be significantlyreduced. If the policy is a term conversion and the term policy is more than five years old, coverageunder ABR-C requires an Applicationfor Policy Conversion, Change or Reinstatement.11943 Presented by: Robert Elmore February 28, 2011
  2. 2. Prepared for Flexible Premium Adjustable Universal LifeGary R. Scherr Essential Guaranteed Universal Life2Policy loans from life insurance policies generally are not subject to income tax. If the contract is a Modified Endowment Contract, apolicy loan or withdrawal may be taxable upon receipt. Also, in the early years of a universal life policy, a percentage of any amountwithdrawn may be subject to federal income tax. A policy loan or withdrawal will reduce the policy’s ultimate death benefit and cashvalue. Consult with and rely on your tax advisor or attorney for advice on your specific situation. Midla National does not give tax or ndlegal advice.3Activities of daily living: bathing, continence, dressing, eating, toileting, or transferring.4Severe cognitive impairment: requires substantial supervision by another person to protect oneself from threats to health and safety.Essential Guaranteed Universal Life is issued on policy form series L138, Accelerated Benefit Rider-Chronic Illness is issued on riderform series TR137A, and Accelerated Benefit Rider-Terminal Illness is issued on rider form series TR138A by Midland National LifeInsurance Company, Sioux Falls, SD 57193. Products, features, issue ages, endorsements or riders may not be available in alljurisdictions. Limitations or restrictions may apply.11943 Presented by: Robert Elmore February 28, 2011
  3. 3. February 28, 2011 A Life Insurance Policy Illustration Software Version 15.5 Flexible Premium Adjustable Universal Life Essential Guaranteed Universal Life Policy Form Number: L138 Series Issue State: Illinois prepared for Gary R. Scherr presented by Robert Elmore 1947 Lago Vista Blvd Palm Harbor, FL 34685 Bus# (727)781-1602 Fax# (727)432-9331 relmore@tampabay.rr.comFor purposes of this illustration, ‘Policy’ and ‘Policy Owner’ when used herein also applies to ‘Certificate’ and ‘Certificate Holder’, respectively, when coverage is issued on a group basis. This Basic Illustration Is Not A Policy Contract and is not valid unless all pages are includedSIL138 Software Version 15.5 February 28, 2011 Page ## of ## Page 1 of 8
  4. 4. Midland National Life Insurance Company Life Insurance Policy IllustrationPrepared for Flexible Premium Adjustable Universal LifeGary R. Scherr Essential Guaranteed Universal LifeAge 50 Policy ExplanationUniversal Life Insurance The life insurance policy you are considering allows flexible premium payments to age 100. The death benefit is adjustable and ultimately depends on the cash value in the policy. The account value is based on the amount of your premium payments, monthly policy charges, and monthly interest credited to the policy. Interest rates and policy charges are subject to change. The current interest rate at issue is guaranteed for the first policy year and thereafter is guaranteed to never go below 2.50%. Policy charges are guaranteed not to exceed the maximums listed in the policy. The non-guaranteed elements of this policy are described in the following pages.Premium Class Male The premium and policy charges calculated for this illustration are for the Premium Class listed atPreferred Plus the left. Actual amounts will depend on the outcome of the underwriting process, and may vary from what is shown on this illustration.Initial Specified Amount The death benefit at policy issue is the Initial Specified Amount shown on the left. The actual$250,000 amount payable at death may be decreased by Loans or Withdrawals, or increased by additional insurance benefits and/or provisions. The insurance policy will specify how to determine the benefit.Initial Death Benefit The policy provides an option for either a level or increasing death benefit. Under the level deathOption: Level benefit option, the death benefit is the Specified Amount. Under the increasing death benefit option, the death benefit is the Specified Amount plus the Account Value. In the numeric detail section of this illustration, the level option is indicated by Opt 1; increasing by Opt 2.First Year Planned The planned premiums are shown in the yearly detail of this illustration. Be sure to note whenPremium Outlay coverage would cease based on guaranteed or non-guaranteed assumptions. This amount includes$2,450.20 a conversion credit of $295.00.Initial Planned Monthly This is the premium billing frequency and billable premium amount requested.Premium $179.605 Year No Lapse Your policy will stay in effect during the first 5 years if you pay at least the Minimum Premium asGuarantee Minimum required and you have not made any policy Loans or Withdrawals or increased any policy benefits.Premium (Annual) The Minimum Premium may not provide coverage beyond the first 5 years.$1,684.56Extended No Lapse After the 5 Year No Lapse Guarantee Period, the Extended No Lapse Guarantee extends theGuarantee policy’s guaranteed death benefit for any length up to age 120. The guarantee will vary depending on the amount and timing of premium payments. The charges associated with this benefit are defined in the policy. You have chosen to guarantee the death benefit to age 120 by paying the illustrated premium on the applicable due date. Changes in your premium pattern or other policy changes such as loans, withdrawals and death benefit changes may affect the length of the extended no lapse guarantee. This Basic Illustration Is Not A Policy Contract and is not valid unless all pages are includedSIL138 Software Version 15.5 February 28, 2011 Page ## of ## Page 2 of 8
  5. 5. Midland National Life Insurance Company Life Insurance Policy IllustrationPrepared for Flexible Premium Adjustable Universal LifeGary R. Scherr Essential Guaranteed Universal LifeAge 50Maximum Level Annual By paying the Maximum Level Annual Premium to age 100, your policy would have the greatestPremium $7,104.77 values and long term benefit. This premium changes if you change any policy benefits. Paying this premium may cause your policy to become a Modified Endowment Contract. Refer to the definition of 7-Pay Premium.Maximum Single This is the maximum amount that can be paid into the policy on a single payment basis.Premium $81,281.67 (Additional premiums can be paid in the year that this amount is exceeded by the sum of the Maximum Level Annual Premiums.) These maximum premiums are based on the Federal Guideline Premium limits. Paying this premium may cause your policy to become a Modified Endowment Contract. Refer to the definition of 7-Pay Premium. Paying this premium does not guarantee the policy will reach Maturity.7-Pay Premium Exceeding this annual premium in any of the first seven years of the contract, on an accumulated$13,816.41 basis, may result in future Loans and Withdrawals being taxed like annuities. This option is left to the policy holder. After seven years, this amount can be exceeded without affecting the tax status of Loans or Withdrawals. Exceeding this amount during the first seven years does not affect any other policy features. Changing policy benefits after seven years may cause your policy to again be subject to the 7-Pay Premium rules. In all cases, the death benefit will be received income tax free based on the current IRS codes. Contact your financial planner for details.Account Value The Account Value is the accumulation of net premiums paid, plus interest credited, minus policy charges. Policy charges are deducted regardless of premium amount or frequency. Different portions of the Account Value may earn different interest rates. The Account Value is affected by any Loans or Withdrawals.Surrender Charge The Surrender Charge is the amount deducted from the Account Value upon surrender of the policy during the early years. The Surrender Charge amount is described in the insurance policy.Net Cash Surrender The Net Cash Surrender Value is the amount available to you upon surrender of the policy. TheValue Net Cash Surrender Value is the Account Value (reduced by outstanding loans) minus the Surrender Charge, if any.Non-Guaranteed Many aspects of your life insurance contract will be guaranteed, including your minimum interestElements of the Policy and maximum charges. However, the current interest rate credited may exceed the guaranteed rate and current monthly charges may be less than the maximum charges. As a result, these non- guaranteed elements may improve the value of your life insurance policy. The following pages provide snapshots of your policy assuming higher interest and lower charges than those that are guaranteed. Since these elements cannot be predicted, a range of results is illustrated. This illustration assumes that the currently illustrated, non-guaranteed elements used will not change for all years shown. That is not likely to occur and actual results may be more or less favorable than those shown. Variations in these non-guaranteed elements could affect: • Death Benefits • Cash Values, or • The amount available for Loans or Withdrawals.Maturity The Maturity date is age 120 of the insured. If the insured is living at Maturity and the policy is in effect, you may ask us to extend the Maturity date indefinitely as allowed by law. There are no charges, deductions, or premiums beyond age 100. This Basic Illustration Is Not A Policy Contract and is not valid unless all pages are includedSIL138 Software Version 15.5 February 28, 2011 Page ## of ## Page 3 of 8
  6. 6. Midland National Life Insurance Company Life Insurance Policy IllustrationPrepared for Flexible Premium Adjustable Universal LifeGary R. Scherr Essential Guaranteed Universal LifeAge 50Loans and Withdrawals The amount available for loan equals the Net Cash Surrender Value less the loan interest that will accumulate on the next Policy Anniversary. During the first 10 years, the interest charged on loans is currently 4.00% (guaranteed not to exceed 6.00%), and the interest credited on these loans is guaranteed at 2.50% for a current net rate of 1.50%. After 10 policy years, contractually guaranteed Net Zero Cost Loans (loans charged and credited at the same rate for a net zero cost) are available on the full loan amount. Partial withdrawals are available for up to 90% of the Net Cash Surrender Value starting in year 2 (50% in year 1). A withdrawal charge will be deducted from the Account Value, if any Surrender Charges remain at the time of the withdrawal. The first withdrawal in any one policy year is available without a processing fee; a $25 processing fee applies to the second and subsequent withdrawals in each policy year. Access to the Account Value through Loans and Withdrawals will reduce the policys ultimate death benefit and Net Cash Surrender Value.Exchange Privilege During the Exchange Period (through the insured’s attained age 75), you may exchange this policy or a portion of it, without evidence of insurability, to an individual permanent life insurance policy available at that time for exchange from this plan. This policy must be in effect and not have an outstanding loan at the time of exchange. For a partial exchange, policy minimums for both policies still apply. See policy form for details. This Basic Illustration Is Not A Policy Contract and is not valid unless all pages are includedSIL138 Software Version 15.5 February 28, 2011 Page ## of ## Page 4 of 8
  7. 7. Midland National Life Insurance Company Life Insurance Policy IllustrationPrepared for Flexible Premium Adjustable Universal LifeGary R. Scherr Essential Guaranteed Universal LifeAge 50Riders Selected This illustration includes the following rider(s). A general description of each selected rider follows. Detailsconcerning each rider are shown in the Rider Detail portion of this illustration. Costs associated with the selected rider(s) arereflected in the policy values.Accelerated Benefit Rider (ABR) - Accelerates the death benefit if the Primary Insured suffers from a qualifying illness. (FormSeries TR137A and TR138A)Rider DetailAccelerated Benefit Rider (ABR) allows the policy owner to receive an advance sum from the policy if the base insured suffersfrom a qualifying illness. The policy owner specifies the amount to accelerate up to the maximum allowed. There is no premium orcharge for this rider; however, there is an administrative fee when benefits are elected. Since this benefit is paid prior to death, thepayment received will be discounted from the amount accelerated. An election to accelerate benefits will reduce the remainingdeath benefit and account values in the policy. If the policy has a loan balance, a portion of the payment will be used to reduce thepolicy debt.Amounts payable as accelerated benefits could be taxable under some circumstances. We recommend that you consult yourpersonal tax advisor prior to electing an accelerated benefit under this rider to assess the tax treatment in your individualcircumstances.ABR - Chronic Illness (ABR-C): The insured qualifies as chronically ill if a physician has certified that the insured is permanentlyunable to perform, for at least 90 consecutive days, without substantial assistance from another person, at least two Activities ofDaily Living or suffers from severe cognitive impairment. (Activities of Daily Living include bathing, continence, dressing, eating,toileting or transferring.) The maximum Accelerated Death Benefit per year is 24% of the Death Benefit on the initial Election Dateor $240,000, if smaller. Payments can be received as a lump sum, semi-annually, quarterly or monthly. If the policy is a termconversion and the term policy is more than five years old, coverage under ABR-C requires an Application for Policy Conversion,Change or Reinstatement. ABR-C is issued on rider form series TR137A.ABR - Terminal Illness (ABR-T): The insured qualifies as terminally ill if a physician has certified that the insured’s lifeexpectancy is 24 months or less. The maximum Accelerated Death Benefit is 50% of the Death Benefit on the Election Date or$500,000, if smaller. ABR-T is issued on rider form series TR138A. This Basic Illustration Is Not A Policy Contract and is not valid unless all pages are includedSIL138 Software Version 15.5 February 28, 2011 Page ## of ## Page 5 of 8
  8. 8. Midland National Life Insurance Company Life Insurance Policy Illustration Prepared for Flexible Premium Adjustable Universal Life Gary R. Scherr Essential Guaranteed Universal Life Age 50 Premium Class: Male, Preferred Plus Interest and Cost Scenarios: Guaranteed: 3.50% year 1, 2.50% thereafter, Maximum charges Illustrated: 3.50% interest rate, Current charges (The current rate is 3.50%) Non-guaranteed benefits and values are subject to change and may be more or less favorable than shown. This illustration assumes premiums are paid on the Monthly due date. Values and benefits are as of the end of the policy year and will vary depending upon the amount and timing of the premium payments. Guaranteed Non-Guaranteed IllustratedEnd Annualized Net Cash Net Cashof Premium Account Surrender SurrenderYr Age Opt Outlay Type* Value Value Death Benefit Account Value Value Death Benefit1 51 1 2,450.20 PE 310 0 250,000 767 0 250,0002 52 1 2,155.20 P 324 0 250,000 1,288 0 250,0003 53 1 2,155.20 P 247 0 250,000 1,737 0 250,0004 54 1 2,155.20 P 76 0 250,000 2,143 0 250,0005 55 1 2,155.20 P 0 0 250,000 2,503 0 250,0006 56 1 2,155.20 P 0 0 250,000 2,816 0 250,0007 57 1 2,155.20 P 0 0 250,000 3,050 0 250,0008 58 1 2,155.20 P 0 0 250,000 3,203 0 250,0009 59 1 2,155.20 P 0 0 250,000 3,332 0 250,00010 60 1 2,155.20 P 0 0 250,000 3,405 0 250,000 21,847.00 PE11 61 1 2,155.20 P 0 0 250,000 3,451 0 250,00012 62 1 2,155.20 P 0 0 250,000 3,439 0 250,00013 63 1 2,155.20 P 0 0 250,000 3,426 0 250,00014 64 1 2,155.20 P 0 0 250,000 3,293 0 250,00015 65 1 2,155.20 P 0 0 250,000 3,063 0 250,00016 66 1 2,155.20 P 0 0 250,000 2,734 0 250,00017 67 1 2,155.20 P 0 0 250,000 2,330 0 250,00018 68 1 2,155.20 P 0 0 250,000 1,850 0 250,00019 69 1 2,155.20 P 0 0 250,000 1,168 0 250,00020 70 1 2,155.20 P 0 0 250,000 213 0 250,000 43,399.00 PE21 71 1 2,155.20 P 0 0 250,000 0 0 250,00022 72 1 2,155.20 P 0 0 250,000 0 0 250,00023 73 1 2,155.20 P 0 0 250,000 0 0 250,00024 74 1 2,155.20 P 0 0 250,000 0 0 250,00025 75 1 2,155.20 P 0 0 250,000 0 0 250,00026 76 1 2,155.20 P 0 0 250,000 0 0 250,00027 77 1 2,155.20 P 0 0 250,000 0 0 250,00028 78 1 2,155.20 P 0 0 250,000 0 0 250,00029 79 1 2,155.20 P 0 0 250,000 0 0 250,00030 80 1 2,155.20 P 0 0 250,000 0 0 250,000 64,951.00 PE31 81 1 2,155.20 P 0 0 250,000 0 0 250,00032 82 1 2,155.20 P 0 0 250,000 0 0 250,00033 83 1 2,155.20 P 0 0 250,000 0 0 250,00034 84 1 2,155.20 P 0 0 250,000 0 0 250,000 This Basic Illustration Is Not A Policy Contract and is not valid unless all pages are included SIL138 Software Version 15.5 February 28, 2011 Page ## of ## Page 6 of 8
  9. 9. Midland National Life Insurance Company Life Insurance Policy Illustration Prepared for Flexible Premium Adjustable Universal Life Gary R. Scherr Essential Guaranteed Universal Life Age 50 Premium Class: Male, Preferred Plus Interest and Cost Scenarios: Guaranteed: 3.50% year 1, 2.50% thereafter, Maximum charges Illustrated: 3.50% interest rate, Current charges (The current rate is 3.50%) Non-guaranteed benefits and values are subject to change and may be more or less favorable than shown. This illustration assumes premiums are paid on the Monthly due date. Values and benefits are as of the end of the policy year and will vary depending upon the amount and timing of the premium payments. Guaranteed Non-Guaranteed IllustratedEnd Annualized Net Cash Net Cash of Premium Account Surrender SurrenderYr Age Opt Outlay Type* Value Value Death Benefit Account Value Value Death Benefit35 85 1 2,155.20 P 0 0 250,000 0 0 250,00036 86 1 2,155.20 P 0 0 250,000 0 0 250,00037 87 1 2,155.20 P 0 0 250,000 0 0 250,00038 88 1 2,155.20 P 0 0 250,000 0 0 250,00039 89 1 2,155.20 P 0 0 250,000 0 0 250,00040 90 1 2,155.20 P 0 0 250,000 0 0 250,000 86,503.00 PE41 91 1 2,155.20 P 0 0 250,000 0 0 250,00042 92 1 2,155.20 P 0 0 250,000 0 0 250,00043 93 1 2,155.20 P 0 0 250,000 0 0 250,00044 94 1 2,155.20 P 0 0 250,000 0 0 250,00045 95 1 2,155.20 P 0 0 250,000 0 0 250,00046 96 1 2,155.20 P 0 0 250,000 0 0 250,00047 97 1 2,155.20 P 0 0 250,000 0 0 250,00048 98 1 2,155.20 P 0 0 250,000 0 0 250,00049 99 1 2,155.20 P 0 0 250,000 0 0 250,00050 100 1 2,155.20 P 0 0 250,000 0 0 250,000 108,055.00 PEAt age 100, we will no longer accept any premiums and there will be no further charges or deductions.51 101 1 0.00 0 0 250,000 0 0 250,00055 105 1 0.00 0 0 250,000 0 0 250,00060 110 1 0.00 0 0 250,000 0 0 250,00065 115 1 0.00 0 0 250,000 0 0 250,00070 120 1 0.00 0 0 250,000 0 0 250,000 Amounts shown in the Outlay column are annualized, but are illustrated based on the following frequency: *P = Premium (Monthly) E = Extra Premium 2262/TP This Basic Illustration Is Not A Policy Contract and is not valid unless all pages are included SIL138 Software Version 15.5 February 28, 2011 Page ## of ## Page 7 of 8
  10. 10. Midland National Life Insurance Company Life Insurance Policy Illustration Prepared for Flexible Premium Adjustable Universal Life Gary R. Scherr Essential Guaranteed Universal Life Age 50 Policy SummaryPremium Class: Male, Preferred PlusFirst Year Planned Premium Outlay: $2,450.20Interest and Cost Scenarios: Guaranteed: 3.50% year 1, 2.50% thereafter, Maximum charges Midpoint: Interest and charges half way between illustrated & guaranteed Illustrated: 3.50% interest rate, Current charges (The current rate is 3.50%)Non-guaranteed benefits and values are subject to change and may be more or less favorable than shown. Guaranteed Non-Guaranteed Non-Guaranteed Values Midpoint Values Illustrated ValuesYear 5 Cash Value 0 0 0 Death Benefit 250,000 250,000 250,000Year 10 Cash Value 0 0 0 Death Benefit 250,000 250,000 250,000Year 20 Cash Value 0 0 0 Death Benefit 250,000 250,000 250,000Age 70 Cash Value 0 0 0 Death Benefit 250,000 250,000 250,000 Last Policy Year a Death Benefit is Supported* 70 70 70I have received a copy of the illustration and understand that this illustration assumes that the currently illustrated non-guaranteedelements will continue unchanged for all years shown. This is not likely to occur and actual results may be more or less favorablethan those shown. Policy Owner/Applicant Signature DateI have informed the applicant or policyowner that his illustration assumes that the currently illustrated non-guaranteed elementswill continue unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable than thoseshown. Agent Signature Code Date*Unless the Extended Maturity Option is available and exercised. This Basic Illustration Is Not A Policy Contract and is not valid unless all pages are included SIL138 Software Version 15.5 February 28, 2011 Page ## of ## Page 8 of 8

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