Capital Formation/ValMark Trustee Life Insurance Review & Management

62 WALNUT ST.  WELLESLEY, MA 02481  781.237.0123  CAPITALFORMATIONGROUP.COM

62 WALNUT STREET  WELLESLEY, MA 02481  781.237.0123  CAPITALFORMATIONGROUP.COM
1 Executive Summary
2 Proposal
3 Team Biographies
4A Annual Policy Review
4B Annual Policy Review  Possible Life Settlement Case
5A Industry Financial Data  STAR Rankings
5B Industry Financial Data  Vital Signs
6 Life Assurance 360 Blueprint  And Life Expectancy Analysis
7A Underwriting Advocacy  Overview
7B Underwriting Advocacy  PURE: Private Underwriting Ration Evaluation
7C Underwriting Advocacy  Underwriting Advocacy Team
8A Life Settlement Advocacy  Policy Appraisal Report
8B Life Settlement Advocacy  Six Questions Regarding Life Settlements
8C Life Settlement Advocacy  Advisor Briefing
8D Life Settlement Advocacy  Case Study
9 Options for Undesired Life Insurance Policies

62 WALNUT STREET  WELLESLEY, MA 02481  781.237.0123  CAPITALFORMATIONGROUP.COM  ONE
We are pleased to provide a proposal to apply our Professional Process in helping you analyze your
firm’s trust-owned life insurance policies and obtain meaningful statistical data on the longevity of
life policies.
OUR EXPERIENCE
I will be directly accountable to you and bring decades of relevant experience to assist you in the
following areas:
1. Understanding the planning process and the role of life insurance
2. Understanding the life insurance marketplace, its providers and incentives
3. A commitment to placing clients’ needs first
I am backed by an experienced, dedicated team that includes my colleagues at Valmark who bring
the following areas of expertise: (SEE TAB 3: TEAM BIOGRAPHIES)
1. Policy and Carrier Analysis
2. Underwriting Advocacy through a team of senior underwriters employed by Valmark (not the
carriers) who work on behalf of the client; and in turn, are able to negotiate the best possible
results for the client
3. Policy Management which includes maintenance and monitoring of life policies to ensure
optimum performance over the long term
4. Life Settlement Advocacy which is an alternative solution to obtain maximum value for policy
owners when policies are no longer needed or wanted
OUR PROCESS
PHASE 1: Our process first examines the plan, policies and carriers. In addition, we gather your
knowledge regarding the original reasons for the policy purchase, any interim changes, and desires
for the policy now and in the future.
PHASE 2: Based on our analysis, we will provide final recommendations along the following general
courses of action:
1. Keep the existing policy (in some cases, with modification)
2. Exchange the existing policy for one that is likely to perform better
3. Obtain maximum value for the existing policy if it is no longer needed
#1 IF KEEPING THE INSURANCE COVERAGE: We will use the Life Assurance 360 Blueprint™ as a tool
and deliverable to show the essential aspects of the policy as well as any recommendations for
modification, or research about better polices in the marketplace worth pursuing.

62 WALNUT STREET  WELLESLEY, MA 02481  781.237.0123  CAPITALFORMATIONGROUP.COM  TWO
#2 IF SEEKING A BETTER POLICY: In these situations, our Underwriting Team will initiate the process
utilizing their professional Underwriting Advocacy process to determine the best possible policy
options. (SEE TAB 7: UNDERWRITING ADVOCACY)
#3 IF THE DEATH BENEFIT IS NO LONGER NEEDED: Our Life Settlement Team will analyze and
quantify the policy and the policy owner’s situation to determine whether that option should be
pursued. (SEE TAB 8A: POLICY APPRAISAL REPORT)
DELIVERABLES
Each policy will receive a full analysis and recommendation(s) in a consolidated summary. The
insured will only be asked for health information if the decision is to proceed with risk-changing
modifications, new insurance or a life settlement.
We are able to control most of the steps. The one we do not control is the timeliness of insurance
carrier responsiveness to the firms’ specific authorizations. However, we anticipate that this will be
made easier because the firm is the trustee and policy owner.

62 WALNUT STREET  WELLESLEY, MA 02481  781.237.0123  CAPITALFORMATIONGROUP.COM  ONE
INTRODUCTION
We are pleased to have the opportunity to assist you in reviewing trust-owned life insurance policies
held in trusts; as well as providing statistical information on the likelihood of policies to remain in force
long enough to pay a death claim.
This proposal will outline (and show sample deliverables) for:
1. The analysis we will provide
2. How we will be guided by you
3. The various roles of the team involved
OUR EXPERIENCE
I will be responsible for managing this project and will be directly accountable to you. While my full
industry credentials are included in my biography, a few salient points include:
• Over 35 years of experience in the life insurance business
• An understanding of the various product types and their respective strengths and weaknesses
• An understanding of the differing incentives inherent in the systems/business models of the
providers of life insurance products from the captive agency/employee model to the independent
model
• I have always viewed life insurance as part of an overall plan (financial/estate) and never as a
stand-alone product to be sold
• My approach from a moral/ethical point of view is very simple: put the client’s needs first, truthfully
provide recommendations accordingly, and compensation will follow one way or another
• I choose to be a Member Firm of ValMark Financial Group whose guiding principle has been
explicitly The Golden Rule (http://www.valmarkfg.com/site/our-story/ )
OUR PROCESS
There are three facets of the review process that must be considered individually and in light of the
other two:
1. The Plan (in which the insurance trust plays a role)
2. The Carrier
3. The Product
There are three questions foundational to the review process. We will ask for your guidance with
answers to:
1. What was original purpose and plan?
2. What, if anything, has changed?
3. What is the desired outcome/purpose/plan going forward?

62 WALNUT STREET  WELLESLEY, MA 02481  781.237.0123  CAPITALFORMATIONGROUP.COM  TWO
PROCESS: WHEN THE TRUST AND INSURANCE ARE STILL DESIRABLE ACCORDING TO THE PLAN
1. Analysis of inforce ledgers
• Authorization(s) by Trustee/Owner to request inforce ledgers
• Request cost basis/cost of insurance
2. Policy performance review:
• “As sold” comparison to current (if available)
• Request illustrations of any reasonable policy modifications
• Deliverable is the Annual Policy Review (SEE TAB 4A: ANNUAL POLICY REVIEW)
3. Carrier Financial Analysis Report
• Identify potential issues carriers face, such as weakness or cost of insurance increases to blocks of
carrier products
• Deliverables are STAR Rankings and Vital Signs (SEE TAB 5: INDUSTRY FINANCIAL DATA)
4. Market comparison
• Internal rate of return based on premiums required to keep policy in force through life expectancy
• Life expectancy projection based on original underwriting rating and current age
• Probability of outliving coverage based on guarantees and projected lapse age
• Projected death benefit and premium outlay based on current inforce projections
• 360 Blueprint (SEE TAB 6: 360 BLUEPRINT)
5. Final recommendations to:
• Keep in place (option to utilize Policy Management Company)
• Modify and keep in place (recalibrate)
• Underwrite and exchange for new policy (SEE TAB 7: UNDERWRITING ADVOCACY)
PROCESS: WHEN THE INSURANCE IS NO LONGER WANTED DUE TO PLANNING CHANGE;
OPTIONS ANALYZED WILL INCLUDE:
1. Analysis of inforce ledgers
• Authorization(s) by Trustee/Owner to request inforce ledgers
• Request cost basis/cost of insurance
2. Life settlement preliminary study (SEE TAB 8A: POLICY APPRAISAL REPORT)
3. Final recommendations to:
• Allow lapse
• Surrender policy for cash value and gain recognition as ordinary income
• Distribution to Beneficiary (ies) and exchange to income-producing annuity (SEE TAB 9: OPTIONS FOR
UNDESIRED LIFE INSURANCE POLICIES)
• Pursue Life Settlement when higher net value seems likely (SEE TAB 8D: LIFE SETTLEMENT CASE STUDY)

62 WALNUT STREET  WELLESLEY, MA 02481  781.237.0123  CAPITALFORMATIONGROUP.COM  THREE
INVOLVEMENT OF INSURED
1. If substantial modifications are to be made to the existing policy, medical underwriting may
be required.
2. If a new policy is to be acquired, underwriting will be required.
3. If a Life Settlement is pursued, medical information will be required.
4. In all cases, the analysis involving the above-recommended outcomes will be performed
before the insured is asked to do anything; i.e., a 360 Blueprint™ (for keeping or exchanging
policies) and a Policy Appraisal Report (for Life Settlement potential). Our working
assumptions, unless known to be different by you, will be based on the underwriting status
of current policy (ies).
SUMMARY
1. Each policy (ies) per Trust will receive a recommended course of action as deliverables are
completed.
2. A consolidated summary of all policies and recommendations will be provided.

John Williams is a thirty-five-year veteran of the financial services industry. He is
one of the original co-founders of Capital Formation Group. He holds ChFC® and
CLU® designations from The American College, a Registered Trust and Estate
Practitioner (TEP #255854) designation from The Society of Trust and Estate
Practitioners, a BA from Creighton University and an MA in Theological Studies
from the Boston College School of Theology.
He is a member of the Boston Estate Planning Council, The American Society of
Financial Service Professionals and The Society of Trust and Estate Practitioners.
John and his wife Mary Ann have two grown children, Jonathan and Anna. John ran
for and was elected to three terms, serving nine years as a Selectman in his
hometown of Carlisle, MA. Avocations include running and classical guitar.
JOHN D. WILLIAMS
CLU
 ChFC
 TEP*
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
LEARN MORE ABOUT OUR PROFESSIONAL DESIGNATIONS
https://www.theamericancollege.edu/designations-degrees/CLU
https://www.theamericancollege.edu/designations-degrees/ChFC
https://www.step.org/

James Lee joined Capital Formation Group in 1996 and has 20 years of experience
in the financial services industry. He provided comprehensive financial and estate
plans for high net worth clients in his former role as Director of Planning. He
continues to handle the ‘core’ of CFG's clients’ financial/estate plans in
coordination with other members of the planning department as well as CFG's sub-
advisor, Ingalls & Snyder.
In addition, he oversees the daily operations, execution and administration of
complete client services. James holds a BA from the University of Nevada. James
enjoys all outdoor sports including hiking, mountain biking, kayaking, snowboarding
and rock climbing. He lives in Newton, MA with his wife Anne and daughter Cai Lin.
JAMES D. LEE
CHIEF OPERATIONS OFFICER

Larry J. Rybka joined Valmark in 1987 and became President and Chief Executive
Officer twelve years later in 1999. Under his leadership, the company has experienced
revenue growth of 15 times. Larry’s tenure at Valmark has been marked by working
with advisors in creating innovative solutions to better serve clients and proactively
anticipating difficult regulatory challenges impacting how these services are delivered.
Larry’s industry leadership includes terms on the Boards of AALU, the MDRT
Foundation and the University of Akron Foundation. He has also served as the Chair
for various committees in the industry, including twice as the AALU Chair of the
Regulatory Reform Committee and CFP Board of Examiners. His industry advocacy is
also evidenced by testimony before legislative bodies and lobbying on behalf of
advisors with FINRA, SEC and several state Insurance Commissioners.
Larry is a noted speaker and author and his articles have been published in numerous
industry journals. Two of his articles were recognized with industry awards: the Journal
of the American Society of CLU and ChFC’s Author Award as well as the CFP Board’s
Article Award. He is also co-author of one of the CCH Tools and Techniques Books with
Steven Leimberg.
Larry is credited locally with working alongside the University of Akron to create one of
the first CFP programs within the Finance Department at the University of Akron’s
College of Business. Over the years, Larry and Valmark have worked closely with the
University of Akron to improve and grow the program. Valmark has been rewarded for
that effort with 38 professionals joining Valmark’s internal team from the program.
Larry and his wife, Wendy, reside in the Akron area with their four children.
LAWRENCE J. RYBKA
JD  CFP®
PRESIDENT AND CHIEF EXECUTIVE OFFICER
LEARN MORE ABOUT OUR PROFESSIONAL DESIGNATIONS: HTTPS://WWW.CFP.NET/

Michael Michlitsch brings to the ValMark Policy Management Company over 15 years
of experience working with advisors and firms to grow, develop and efficiently manage
their businesses.
Michael comes to ValMark from Securian Financial where he built and led a practice
management team focused on helping advisors increase productivity and enhance the
client experience. His team helped advisors implement strategies and best practices
through practice management consultations, training and support on leveraging
technology tools, and building investment advisory business. Prior to Securian,
Michael was with Woodbury Financial, where he coached experienced advisors to
maximize the suite of technology tools. Earlier in his career, Michael was a sales
manager at Ameriprise Financial, and helped create a new distribution channel
focusing on providing life insurance and other financial solutions to more than
500,000 orphan clients. Additionally, throughout his career, he has worked directly
with clients as an Advisor to help them achieve their financial goals.
Michael earned a Master of Business Administration (MBA) from the University of St.
Thomas in Minnesota and holds a number of professional designations from the
Institute of Business and Finance, the College for Financial Planning, and Kaplan
University. Michael’s financial education and entrepreneurial spirit is complemented
with sales experience, participation in Toastmasters, and training in the Richardson
Sales Consulting model. He holds securities registrations 7, 24, and 66 and an
insurance license.
MICHAEL MICHLITSCH
MBA  CFS  CRPC*
DIRECTOR OF POLICY MANAGEMENT
https://www.finra.org/investors/professional-designations/cfs
http://www.cffpinfo.com/crpc

Mark Armstrong is the Vice President of Insurance Marketing for our partner, ValMark
Financial Group. He has more than 25 years of financial services management
experience, including 20 years as an executive-level consultant, specializing in product
analysis and development and advanced case design.
He is also a published author and lecturer who has been featured in publications and
at venues including the Journal of Practical Estate Planning; Best’s Review; Journal of
Financial Services Professionals; Million Dollar Round Table International Convention;
and the Palm Beach Estate Planning Forum.
Mark earned both a B.A. and an M.A. in Economics from the University of Akron. His
designations and professional affiliations include Chartered Life Underwriter and
Charter Financial Consultant (American College); Fellow with Distinction (Life
management Institute); FINRA Series 7, 24, 63 registrations; and Life, Health, Variable
Life Insurance and Annuity Licenses.
MARK ARMSTRONG
CLU
 ChFC
VICE PRESIDENT – INSURANCE MARKETING
https://www.theamericancollege.edu/designations-degrees/CLU
https://www.theamericancollege.edu/designations-degrees/ChFC

Pamela Bancsi is the Vice-President of Life Settlements for ValMark Financial Group
where she is responsible for the operations, education and marketing of ValMark’s life
settlements business line. She has over 30 years of experience within the financial
services industry, working with advanced market case design and management. Her
background also includes 10 years of legal experience.
Most recently, Pam worked at Life Settlements Insights where she directed the
marketing efforts for one of the nation’s largest life settlement brokers. Prior to that,
she was an Agency Sales Director for MetLife Insurance, managing the hiring,
supervision and training of financial advisers. Pam was also a Regional Director of
Financial Planning and Investments for Lincoln Financial, responsible for managing
the financial planning department and consulting some of the nation’s top financial
advisors on advanced planning and investment ideas.
In addition to her FINRA series 7, 24 and 63 registrations as well as life, health,
variable life and annuity licenses, Pam is a Certified Financial Planner® and holds a
Juris Doctorate from Case Western University School of Law.
PAMELA BANCSI
JD  CFP®
VICE PRESIDENT – LIFE SETTLEMENTS
LEARN MORE ABOUT OUR PROFESSIONAL DESIGNATIONS: HTTPS://WWW.CFP.NET/

Chris Bottaro is the Vice President of Insurance Services for our partner, ValMark
Financial Group. He is responsible for the vision, strategy and execution of life
insurance underwriting and new business initiatives.
Formerly, Chris was an Underwriting Account Executive at Lincoln Financial Group
where he led a team of 25 underwriters and new business associates through
strategic initiatives aimed at making the life insurance process simpler and more
efficient for advisors and their clients.
Chris has an MBA from the Isenberg School of Management at the University of
Massachusetts and holds FINRA Series 6 and 26 securities registrations.
CHRIS BOTTARO
VICE PRESIDENT – INSURANCE SERVICES

Eric Johnson is the Vice President of Underwriting for our partner, ValMark Financial
Group. In his role, he is responsible for the risk assessment appraisal, consultation,
and negotiation of underwriting offers on behalf of ValMark Member Offices. He has
over 25 years of experience in the underwriting industry and speaks nationally to
professional groups on topics such as challenging underwriting impairments and
jumbo business.
ERIC JOHNSON
VICE PRESIDENT – UNDERWRITING

Annual Policy Review
Policy Contacts
Executive Summary
Primary Insured Insured Name
Riders2
Policy Date
Carrier
STAR Ranking1
Product
Product Details
#####
7/20/2005
John Hancock
4 Stars
Survivorship UL
Policy #
Prepared On:
Bridging Expectations with Results
Prepared For:
Prepared By:
Owner Name
Advisor Name
10/27/2016
Secondary Insured Name
Owner Name
Trustee Name
Beneficiary Name
Policy Protection, Age 100 Advantage
Secondary Insured
Owner
Beneficiary
Trustee
Commentary
Recommendations
Page 1 of 3
Current Values3
$0.00Loan Amount
Cash Surrender Value $159,540.59
$1,000,000 Annualized Premium $14,991.00
Cash Value $185,439.60
Death Benefit
• All annual premiums have been paid to date as planned. Initial 1035 was $13,327.44 less than projected.
• Current crediting rate is at 4.55%, down from 5.25% at issue but above guaranteed rate.
• Cash value is behind original design because of 1035 amount and crediting rate.
• Projected lapse age reduced from 120 to 99 due to Age 100 Advantage rider not being triggered.
• Adjust future annual premium payments to $17,446 to guarantee coverage to age 120.
• Monitor cash value and interest crediting rate to ensure policy performs as designed.
• Complete a LADQ and perform a current market comparison.
Sample Annual Policy Review

Policy Design
Premium Analysis
Coverage Duration Analysis
Policy Performance Analysis
Page 2 of 3
Cash Value
Cash Surrender Value
Probability of Outliving Coverage12
18.69%
Assumed Rate of Return
Original Design Current Performance Indicator8
Guaranteed Coverage Age9
120
Death Benefit
Original Design13
$1,000,000
Difference (Paid-Planned)
13.91
99
Projected Coverage Age10
120 99
Underwriting Class
Age
D.O.B.
Client 2
3/27/1931
85
Standard Non-Tobacco
Client 1
3/22/1936
80
Standard Non-Tobacco
Joint Life Expectancy (Years)11
Cumulative Premiums Paid7
Year 1 Lump Sum/1035
Annualized Premium
Through age 100Premium Structure
$226,574
$14,991.00
Purpose of Coverage: Wealth Protection
No Blueprint5
Completed? No NoIs this Policy a MEC6
?LADQ4
Completed?
Last Premium Paid 7/25/2016
Current Plan
$61,673
$14,991.00
Through age 99
$226,574
$0
Indicator8
Original Plan
$75,000
Indicator8
5.25%
$201,842
$190,781
Current Performance14
$1,000,000
4.55%
$160,937
$172,077

Desired Acceptable Unacceptable*
Lapse Age 120 - 119
Death Benefit $1,000,000 - $999,999
Cash Value* $201,842.00 - $191,749.90
Annualized Premium $14,991.00 - $14,992.00
Premium Structure** Through age 100 - N/A
Securities offered through ValMark Securities, Inc. Member FINRA, SIPC.
ValMark Securities, 130 Springside Drive, Suite 300, Akron, OH 44333 |(800) 765-5201
Page 3 of 3
9
Guarantee provisions are complex. See policy contract for language and guarantee mechanics. Original guaranteed lapse age taken from
the as- sold illustration. Current guaranteed lapse age taken from current inforce illustration.
10
Illustrated policy design lapse age taken from original sales illustration and assumes original annualized premium and original illustrated
return. Current policy lapse age taken from current in force illustration and assumes current annualized premium and current illustrated
return.
11
All values taken from the Life Expectancy Analysis report from the TOLI Vault. All values derived from the 2008 VBT Mortality Table based
off of the insured's original underwriting class. Indicator is based off of youngest insured's age plus joint life expectancy compared to
projected coverage age. If projected to outlive coverage, unacceptable (red), or if projected to not outlive coverage, acceptable (green).
12
Probability of outliving coverage is calculated using the projected policy lapse age, giving an indication of the probability of the policy not
being paid out, assuming all illustrated rates hold and premiums are paid on time. Indicator shows unacceptable (red) when probability of
outliving coverage is over 50%, acceptable (yellow) when probability of outliving coverage is between 50% and 10%, and desired (green)
when probability of outliving coverage is below 10%.
13
Original design values taken from the projected values at the end of the most recent policy year from the as- sold illustration and assumes
original planned premium structure, policy charges from when the policy was issued, and the rate of return the as-sold illustration was run
14
Current performance values taken from the current annual statement and inforce illustration provided by the carrier.
**Premium structure compares original required premium payments to what is now required for the same coverage duration and death
benefit.
Footnotes
1
STAR Ranking™ - The Strength Tracking and Assessment Report™ (STAR) is a 41-point data analysis of the relative claims paying ability of
life insurance companies that maintain a selling agreement with ValMark Securities. The underlying data for the Strength Tracking and
Assessment Report™ is updated and reviewed on a quarterly basis and includes insurance statutory financials and ratios, information on
availability and cost of capital, financial strength ratings, and relevant market data. The rankings created as a result of the data are not
guaranteed and are in no way intended to be a replacement or substitute for the financial strength ratings provided by the Nationally
Recognized Statistical Ratings Organizations, AM Best, Standard & Poor’s, Moody’s, and Fitch. The rankings are provided by ValMark
Securities as an incidental service to its affiliated insurance professionals to aid in the selection of carriers. The STAR Rankings™ for the life
insurance companies referenced in this document may change at any time; therefore, such information is valid only as of the date provided
on page one of this document.
2
See policy contract for information on policy riders.
3
Current values are taken from carriers website or through direct feed on report date.
4
Life Assurance Design Questionnaire- Life Assurance 360™ is a goals-based process for designing, implementing, and managing life
5
Blueprint- is designed to incorporate the information you provided us in your life assurance design questionnaire into a sustainable plan.
6
Stands for modified endowment contract. Please refer to the policy prospectus and consult with a tax professional for details regarding the
tax consequences of a modified endowment contract.
7
Cumulative premiums paid for the original design assumes the original planned 1035 amount, plus the annualized premium multiplied by
the number of policy years since issue. Cumulative premiums paid for the current plan is taken from the total premiums paid figure
provided by the insurance carrier as of the date of this report.
8
Performance indicator shows either red (unacceptable), yellow (acceptable), or green (desired) as defined in the Monitoring and
Management Guidelines established when the policy was first managed by The ValMark Policy Management Company. Guidelines for this
policy are listed below.
*Currently the Guideline is set to be unacceptable (red) if the current cash value falls more than 5% below the desired value. Acceptable is
the area between desired and unacceptable.

4B
ANNUAL POLICY REVIEW
POSSIBLE LIFE SETTLEMENT CASE

Annual Policy Review
Irrevocable Trust
Owner
Trustee
Beneficiary
Commentary
Recommendations
Irrevocable Trust
Advisor
10/1/2016
Current Values3
Loan Amount $0.00
$40,095.58Cash Surrender Value
Valued Client
Prepared On:
Bridging Expectations with Results
Prepared For:
Prepared By:
Executive Summary
Product Details
Policy #
Policy Contacts
Primary Insured
Policy Date
123456789
10/6/2000 Irrevocable Trust
Cash Value $41,204.89
Death Benefit
Riders2
Coverage Protection
$500,000 Annualized Premium $0.00
STAR Ranking1
Product
MetLife
3 Stars
Universal Life (MVP)
Carrier Trustee Name
• Review guaranteed and projected coverage ages based on duration of coverage needed. Determine future
premium requirements to extend coverage.
• Complete a LADQ and perform a current market comparison to obtain new or replacement coverage.
• Submit a life settlement E-Filter to receive a Policy Appraisal Report.
• Premiums have not been paid as originally planned. First four premiums were paid as designed and lower than
planned premium paid since year 4.
• Assuming $0 future premium, 4% gross, and current charges, the policy is projected to lapse within three years
at age 87 of the insured. The policy does not currently have a guaranteed death benefit.
• Life expectancy is beyond the projected coverage age with a high probability of outliving coverage.
• Future annual premium payments of $28,674 through age 100 projects coverage to age 120.
Page 1 of 3
Sample Policy Review

$29,779
LADQ4
Completed?
10/7/1931
Coverage Duration Analysis
$114,170
($90,005)
All Pay10-Pay
$204,174
Difference (Paid-Planned)
Valued Client
Annualized Premium
Indicator8
$0
$0.00
Cumulative Premiums Paid
7
Premium Structure
Original Plan
$0
$20,417.42
Year 1 Lump Sum/1035
Current Plan
D.O.B.
Projected Coverage Age
10
Policy Design
Purpose of Coverage: Wealth Protection
No Blueprint5
Completed? No Is this Policy a MEC6
? No
Last Premium Paid 10/6/2008
Premium Analysis
85
Standard Non-TobaccoUnderwriting Class
87
Age
Life Expectancy (Years)11
9.29
Current Performance Indicator8
Guaranteed Coverage Age9
108 84
108
Original Design
89.53%Probability of Outliving Coverage12
Indicator8
Current Performance14
Original Design13
Policy Performance Analysis
Cash Surrender Value
Unknown
Unknown
Death Benefit
Assumed Rate of Return
$500,000
4.00%
Cash Value
$500,000
4.00%
$29,779
Page 2 of 3

Desired Acceptable Unacceptable*
Lapse Age 108 - 107
Death Benefit $500,000 - $499,999
Cash Value* Unknown - Unknown
Annualized Premium $20,417.42 - $20,418.42
Premium Structure** 10-Pay - Additional Premium
14
Current performance values taken from the current annual statement and inforce illustration provided by the carrier.
Securit+A1:F28ies offered through ValMark Securities, Inc. Member FINRA, SIPC.
ValMark Securities, 130 Springside Drive, Suite 300, Akron, OH 44333 |(800) 765-5201
13
Original design values taken from the projected values at the end of the most recent policy year from the as- sold illustration and assumes
original planned premium structure, policy charges from when the policy was issued, and the rate of return the as-sold illustration was run at.
11
All values taken from the Life Expectancy Analysis report from the TOLI Vault. All values derived from the 2008 VBT Mortality Table based off
of the insured's original underwriting class. Indicator is based off of youngest insured's age plus joint life expectancy compared to projected
coverage age. If projected to outlive coverage, unacceptable (red), or if projected to not outlive coverage, acceptable (green).
12
Probability of outliving coverage is calculated using the projected policy lapse age, giving an indication of the probability of the policy not
being paid out, assuming all illustrated rates hold and premiums are paid on time. Indicator shows unacceptable (red) when probability of
outliving coverage is over 50%, acceptable (yellow) when probability of outliving coverage is between 50% and 10%, and desired (green) when
probability of outliving coverage is below 10%.
Footnotes
6
Stands for modified endowment contract. Please refer to the policy prospectus and consult with a tax professional for details regarding the
tax consequences of a modified endowment contract.
7
Cumulative premiums paid for the original design assumes the original planned 1035 amount, plus the annualized premium multiplied by the
number of policy years since issue. Cumulative premiums paid for the current plan is take from the total premiums paid figure provided by the
insurance carrier as of the date of this report.
1
STAR Ranking™ - The Strength Tracking and Assessment Report™ (STAR) is a 41-point data analysis of the relative claims paying ability of life
insurance companies that maintain a selling agreement with ValMark Securities. The underlying data for the Strength Tracking and
Assessment Report™ is updated and reviewed on a quarterly basis and includes insurance statutory financials and ratios, information on
availability and cost of capital, financial strength ratings, and relevant market data. The rankings created as a result of the data are not
guaranteed and are in no way intended to be a replacement or substitute for the financial strength ratings provided by the Nationally
Recognized Statistical Ratings Organizations, AM Best, Standard & Poor’s, Moody’s, and Fitch. The rankings are provided by ValMark
Securities as an incidental service to its affiliated insurance professionals to aid in the selection of carriers. The STAR Rankings™ for the life
insurance companies referenced in this document may change at any time; therefore, such information is valid only as of the date provided
on page one of this document.
2
See policy contract for information on policy riders.
3
Current values are taken from carriers website or through direct feed on report date.
4
Life Assurance Design Questionnaire- Life Assurance 360™ is a goals-based process for designing, implementing, and managing life insurance.
5
Blueprint- is designed to incorporate the information you provided us in your life assurance design questionnaire into a sustainable plan.
9
Guarantee provisions are complex. See policy contract for language and guarantee mechanics. Original guaranteed lapse age taken from the
as- sold illustration. Current guaranteed lapse age taken from current inforce illustration.
10
Illustrated policy design lapse age taken from original sales illustration and assumes original annualized premium and original illustrated
return. Current policy lapse age taken from current in force illustration and assumes current annualized premium and current illustrated
return.
8
Performance indicator shows either red (unacceptable), yellow (acceptable), or green (desired) as defined in the Monitoring and
Management Guidelines established when the policy was first managed by The ValMark Policy Management Company. Guidelines for this
policy are listed below.
*Currently the Guideline is set to be unacceptable (red) if the current cash value falls more than 5% below the desired value. Acceptable is the
area between desired and unacceptable.
**Premium structure compares original required premium payments to what is now required for the same coverage duration and death
benefit.
Page 3 of 3

5A
INDUSTRY FINANCIAL DATA
STAR RANKINGS

êêêêê SUPERIOR CLAIMS PAYING ABILITY Carriers
• The highest ratings from all major rating agencies with generally positive or stable outlooks
• Infrequent exposure to troubled assets and some exposure to interest rate sensitive products
• For publicly traded stock companies, a high return on equity, a relatively high price-to-book ratio
and low volatility in the stock price
• Strong capital position
• Able to raise capital (Equity or Debt) on favorable terms with evidence of excess capital
• Life insurance is a primary focus of the company and there is no risk of divestiture from the parent company
• New York Life
êêêê EXCELLENT CLAIMS PAYING ABILITY Carriers
• High ratings from all major rating agencies with generally stable or positive outlooks
• Occasional exposure to troubled assets and moderate exposure to interest rate sensitive products
• For publicly traded stock companies, a generally positive return on equity, an average price-to-book
ratio, and relatively low volatility in the stock price
• Strong capital position
• Able to raise capital (Equity or Debt) on favorable terms
• Life insurance is one of the primary focuses of the company and there is a very low risk of divestiture
from the parent company
• Minnesota Life
• Prudential
êêê VERY GOOD CLAIMS PAYING ABILITY Carriers
• High or moderately high ratings from most major rating agencies with generally stable outlooks
• Occasional exposure to troubled assets and moderate exposure to interest rate sensitive products
• For publicly traded stock companies, a generally positive return on equity, an average price-to-book
ratio, and relatively low volatility in the stock price
• Average or acceptable capital position
• Able to raise capital (Equity or Debt), but sometimes on less favorable terms than stronger peers
• Life insurance is one of the primary focuses of the company and there is a low risk of divestiture from
the parent company
• Great-West
• Lincoln
• Nationwide
• Principal
• Protective
êê GOOD CLAIMS PAYING ABILITY Carriers
• High or moderately high ratings from most major agencies with stable or occasionally negative
outlooks
• Frequently has high exposure to troubled assets and interest rate sensitive products
• For publicly traded stock companies, sometimes a low or negative return on equity, frequently a low
price-to-book ratio, and high volatility in the stock price
• Weaker capital position than stronger peers
• Able to raise capital (Equity or Debt) but on less favorable terms than stronger peers
• Life insurance is typically not a primary focus of the company and/or there is a high risk of divestiture
from the parent company
• Allianz
• American General
• AXA
• Brighthouse Financial
• Jackson National
• John Hancock
• Ohio National
• Symetra
• United of Omaha
ê LIMITED CLAIMS PAYING ABILITY Carriers
• Relatively lower ratings from most major rating agencies with significant downgrades in the past and
stable or negative outlooks for the future
• Frequently has significant exposure to troubled assets and interest rate sensitive products
• For publicly traded stock companies, usually a low or negative return on equity, frequently a very
low price to book ratio, and high volatility in the stock price
• Further weakening of capital position prompting regulatory action
• Frequently unable to raise capital
• Life insurance is frequently not a primary focus of the company and divestiture either has occurred
or there is a high risk of divestiture from the parent company
• Athene Annuity (formerly Aviva US)
• Accordia Life (formerly Aviva US)
• Banner
• Delaware Life (formerly SunLife US)
• Friends Life (formerly LBL)
• Genworth
• Transamerica
• Voya
• Zurich
The STAR Rankings 5 through 1 are based upon data provided by Nationally Recognized Statistical Ratings Organizations (NRSROs) and other third parties including: AM Best, Standard and Poors, Fitch, and
Moody’s ratings agencies, ALIRT, and SNL Financial. Each rating agency is considered equally in the STAR Rankings process. The ratings provided by these ratings agencies are not guaranteed and each
of the insurance companies listed is subject to a ratings downgrade at any time. This summary does not measure life insurance company performance or is it intended to make a recommendation of any life
insurance company. ValMark Securities, Inc. maintains a selling agreement with each of the insurance companies listed. This advice is being provided solely as an incidental service to our affiliated insurance
professionals, financial planners, and investment advisors. The Individuals interested in purchasing life insurance should consult their insurance advisor.
COMPANY STAR RANKINGS™
Strength Tracking Assessment Report September 2017
Securities offered through ValMark Securities, Inc. Member FINRA, SIPC
Advisory Services offered through ValMark Advisers, Inc. A SEC registered investment advisor
130 Springside Drive, Akron, OH 44333 800.765.5201
V.09.2017

5B
INDUSTRY FINANCIAL DATA
VITAL SIGNS

Life Insurer Financial Profile
Company Avg of Largest
25 Companies
New York Life
Ins Co
Minnesota Life
Ins Co
Prudential Ins Co
of America
Lincoln National
Life Ins Co
John Hancock
Life Ins Co USA
Principal Life Ins
Co
Nationwide Life
Ins Co
Page 1 of 1 Powered by VitalSales Suite, a product of EbixExchange.
Data for Year-End 2016 from the life insurance companies' statutory annual statements. All dollar amounts are in thousands. All ratings shown are current as of November 17, 2017.
Presented by: John D. Williams, Valmark Securities, 130 Springside Drive, Suite 300, Akron, OH 44333 Phone: 330-576-1234 Email: phil.jackson@valmarksecurities.com
A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company's financial strength and ability to meet its obligations to policyholders.
View our Important Notice: Best's Credit Ratings for a disclaimer notice and complete details at http://www.ambest.com/ratings/notice.
Ratings
A.M. Best Company (Best's Rating, 15 ratings)
Standard Poor's (Financial Strength, 20 ratings)
Moody's (Financial Strength, 21 ratings)
Fitch Ratings(Financial Strength, 21 ratings)
Weiss (Safety Rating, 16 ratings)
Comdex Ranking (Percentile in Rated Companies)
n
n
n
n90
n AA+ (2)
nAaa (1)
nAAA (1)
nA- (3)
n100
A++ (1)
n A+ (5)
nAa3 (4)
nAA (3)
nB+ (4)
n93
A+ (2)
n AA- (4)
nA1 (5)
nAA- (4)
nB (5)
n92
A+ (2)
n AA- (4)
nA1 (5)
nA+ (5)
nB (5)
n90
A+ (2)
n AA- (4)
nA1 (5)
nAA- (4)
nB (5)
n92
A+ (2)
n A+ (5)
nA1 (5)
nAA- (4)
nB+ (4)
n90
A+ (2)
n A+ (5)
nA1 (5)
n
nB- (6)
n89
A+ (2)
n
Assets Liabilities
Total Admitted Assets
Total Liabilities
Separate Accounts
As % of general Account Assets
Total Surplus AVR
170,689,943
161,853,235
74,366,987
10,117,226
10.5%
170,761,835
150,654,274
13,796,694
22,283,029
14.2%
40,438,053
37,466,451
21,889,758
3,244,324
17.5%
260,294,334
249,120,638
136,302,599
13,444,415
10.8%
221,258,928
213,785,949
126,169,294
8,497,430
8.9%
229,892,290
223,738,548
131,146,764
8,259,487
8.4%
171,337,718
166,693,927
104,434,866
5,396,732
8.1%
133,344,875
128,136,433
90,776,291
5,558,179
13.1%
Invested Asset Distribution Yield
Total Invested Assets
Bonds(%)
Stocks(%)
Real Estate(%)
Mortgages(%)
Policy Loans(%)
Cash Short-Term(%)
Other Invested Assets(%)
2016 (Industry Average 4.01%)
Net Yield on Mean Invested Assets
5 Year Average (Industry Average 4.1%)
92,196,849
69.9%
3.3%
13.0%
0.8%
3.5%
1.9%
7.6%
5.10%
5.02%
142,785,726
65.2%
6.9%
10.4%
1.1%
7.4%
2.1%
6.9%
4.42%
4.71%
17,688,696
70.5%
4.6%
14.3%
0.0%
2.4%
1.3%
6.8%
4.34%
4.62%
116,783,049
65.4%
5.4%
15.5%
0.5%
2.5%
3.7%
7.0%
7.16%
5.37%
91,430,225
78.8%
3.5%
9.7%
0.1%
2.1%
1.8%
4.0%
4.64%
4.82%
91,753,487
49.3%
4.9%
12.7%
6.8%
3.0%
4.2%
19.1%
4.82%
4.80%
64,965,459
71.9%
1.3%
18.6%
0.7%
1.2%
1.1%
5.2%
4.66%
4.78%
41,115,052
73.3%
2.5%
17.8%
0.0%
2.2%
0.9%
3.1%
4.74%
4.49%
Non-Performing Assets as % of Surplus AVR
Bonds In or Near Default
Problem Mortgages
Real Estate Acquired by Foreclosure
Total Non-Performing Assets
As a percent of Invested Assets
0.9%
0.2%
0.1%
1.2%
0.1%
0.3%
0.2%
0.1%
0.6%
0.1%
0.2%
0.0%
0.0%
0.2%
0.0%
1.4%
0.0%
0.0%
1.4%
0.2%
1.1%
0.0%
0.0%
1.1%
0.1%
0.5%
0.0%
0.0%
0.5%
0.0%
1.1%
0.0%
0.0%
1.1%
0.1%
1.0%
0.1%
0.0%
1.1%
0.1%
Bond Quality
Total Value of Bonds
Class 1-2: Highest Quality
Class 3-5: Lower Quality
Class 6: In or Near Default
Weighted Bond Class
66,028,922
93.2%
6.7%
0.1%
1.5
96,041,954
93.2%
6.7%
0.1%
1.5
12,732,244
94.8%
5.2%
0.1%
1.5
79,722,279
93.6%
6.2%
0.2%
1.4
73,795,333
95.6%
4.3%
0.1%
1.5
49,752,007
94.1%
5.8%
0.1%
1.4
47,367,809
93.1%
6.7%
0.1%
1.4
30,157,975
93.6%
6.3%
0.2%
1.6
Income Earnings
Total Income
Net Premiums Written
Earning Before Dividends and Taxes
Net Operating Earning
17,727,577
12,401,580
2,160,622
1,342,543
21,919,451
15,440,137
2,388,118
606,698
7,316,194
6,239,201
261,677
150,246
35,359,532
25,550,197
6,180,403
5,720,009
24,568,738
17,172,036
939,452
879,316
12,425,035
13,226,552
972,264
962,318
12,045,235
7,808,454
1,475,070
1,143,297
14,213,074
9,868,056
1,015,255
1,028,772

Lincoln National Life Ins Co
Page 1 of 1 Powered by VitalSales Suite, a product of EbixExchange.
Data for Year-End 2016 from the life insurance companies' statutory annual statements. All dollar amounts are in thousands. All ratings shown are current
as of November 17, 2017.
Presented by: John D. Williams, Valmark Securities, 130 Springside Drive, Suite 300, Akron, OH 44333 Phone: 330-576-1234 Email:
phil.jackson@valmarksecurities.com
A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a
company's financial strength and ability to meet its obligations to policyholders. View our Important Notice: Best's Credit Ratings for a disclaimer notice
and complete details at http://www.ambest.com/ratings/notice.
Group Affiliation:
Address:
Phone:
Lincoln Financial Group
1500 Market Street Suite 3900
Philadelphia PA 19102-2112
215-448-1400
Ratings
A+ (2)
nAA- (4)
nA1 (5)
nA+ (5)
nB (5)
n90
A.M. Best Company(Best's Rating, 15 ratings)
Standard Poor's(Fin. Strength, 20 ratings)
Moody's(Fin. Strength, 21 ratings)
Fitch Ratings(Fin. Strength, 21 ratings)
Weiss(Safety Rating, 16 ratings)
Comdex Ranking(Percentile in Rated Companies)
Invested Asset Distribution
91,430,225Total Invested Assets
Non-Performing Assets
Bonds In or Near Default
Problem Mortgages
Real Estate Acquired by Foreclosure
Total Non-Performing Assets/Surplus AVR
As a Percent of Invested Assets
1.1%
0.0%
0.0%
1.1%
0.1%
Income Earnings
Total Income
Net Premiums Written
Earnings Before Dividends and Taxes
Net Operating Earnings
24,568,738
17,172,036
939,452
879,316
Domicile:
NAIC Number:
Year Established:
IN
65676
1905
Company Type: Stock
Assets Liabilities
Total Admitted Assets
Total Liabilities
Separate Accounts
Total Surplus AVR
As % of General Account Assets
221,258,928
213,785,949
126,169,294
8,497,430
8.9%
5 Year Investment Yields
4.82%5 Year Average
Bond Quality

6
LIFE ASSURANCE
360 BLUEPRINT
AND LIFE EXPECTANCY ANALYSIS

Prepared For:
Presented By:
Valued Client
John D. Williams
January 31, 2017
Securities offered through ValMark Securities, Inc. Member FINRA, SIPC | Advisory services available through affiliation with ValMark Advisers, Inc.,
an SEC Registered Investment Advisor | 130 Springside Drive, Suite 300 Akron, Ohio 44333 1-800-765-5201

Coverage Priorities
Details personal information, purpose for coverage, and design priorities.
Product Recommendations
Custom plans designed according to your unique needs and coverage priorities.
Recommendation Comparison
Comparison of how recommended products address your coverage priorities.
Policy Management Statement
Guidelines for on-going policy management and measurement.
an SEC Registered Investment Advisor | 130 Springside Drive, Suite 300 Akron, Ohio 44333 1-800-765-5201

C O V E R A G E P R I O R I T I E S
Length of Premium Payments:
P E R S O N A L P R O F I L E
Client
Age:
State of Residence:
Purpose of Coverage:
Desired Length of Coverage:
Mode of Premium Payments:
69 years / to age 120
Annually
Valued Client
51
Massachusetts
Estate Liquidity
C O V E R A G E P R I O R I T I E S
5 PREMIUM: The out of pocket expense for your coverage design, chosen features, and risk level.
Based upon your responses to the LADQ®, we have designed your custom blueprint around the following
elements in the order that your indicated were most important to you.
2 FLEXIBILITY: The ability to change your plan, delay a premium or alter a death benefit.
3 EQUITY: The ability to build accessible cash value in your policy.
4 CERTAINTY: The degree of confidence that policy design specifications will perform as expected.
1 SAFETY: The financial strength of the carrier(s), diversification among carriers, and protection from carrier's creditors.

RECOMMENDATION 1 Valued Client: Female age 51 Preferred NonTobacco
Nationwide Life Insurance Co. YourLife No-Lapse Guarantee UL
P R O D U C T S P E C I F I C A T I O N S D E A T H B E N E F I T A N A L Y S I S
D E T E R M I N A N T S O F D E A T H B E N E F I T
I N T E R N A L R A T E O F R E T U R N ( I R R )
Moody's (1-10) Fitch (1-10)
Income tax rate 28.00%; Estate tax rate 40.00%; Illustrated rate 3.00%
Comdex (100-1) STAR™ (5-1) () after agency name shows the available non-
vulnerable ratings range from best to worst.
(2) A+ (5) A+ (5) A1 Not Rated 91 
Carrier
Ratings
AM Best (1-6) SP (1-10)
The number shown in () before the rating indicates where that rating ranks within that agency's available ratings scale (1 being highest). v indicates the rating is considered a vulnerable rating.
Life Expectancy - 10 years
(year 28)
Life Expectancy + 10 years
(year 48)
3.57% 4.96% 8.26%
Age 100
(year 50)
3.30% 4.58% 7.64%
Life Expectancy
(year 38)
$10,000,000
$10,000,000
$10,000,000
Initial Death Benefit $10,000,000
Policy Premium $78,547 for 69 years
Projected Length of Coverage 69 years / to age 120
Death Benefit Guarantee
Length
Avg. Life Expectancy 38 years / age 89.04
Non-Guaranteed Cash
Surrender Values*
Year 10 Year 20 Year 30
$0 $0 $0
*Cash value is non-guaranteed and represents the policy earnings less charges. Earnings rate is subject to change by the insurer. Actual results may be more or less favorable. **Additional Death Benefit signifies illustrated death benefit in
excess of either the initial or guaranteed death benefit depending upon the product’s structure. Earnings are based on the carrier’s declared interest rate, which is subject to change. Charges are determined by the carrier and are also
subject to change. Please see the attached illustration for further details.
Guaranteed Death Benefit
$10,000,000
Life Expectancy
(year 38)
(year 48)
Age 100
(year 50)
Notes
(IRR on Death Benefit)
Unadjusted
Income Tax
Adjusted
Income
Estate Tax
Adjusted
(year 28)
9.18% 12.75% 21.25%
5.49% 7.63% 12.71%
$9
$10
$10
$11
$11
$12
$12
Life Expectancy -
10
Life Expectancy Life Expectancy +
10
Age 100
Millions
Guaranteed Death Benefit Additional Death Benefit**

John Hancock Life Insurance Company USA Protection UL 13
Age 100
(year 50)
3.30% 4.58% 7.64%
5.33% 7.40% 12.34%
12.46% 20.76%
(year 48)
-$
Carrier
Ratings
AM Best (1-6) SP (1-10) Moody's (1-10) Fitch (1-10) Comdex (100-1) STAR™ (5-1) () after agency name shows the available non-
(2) A+
(year 28)
8.97%
(4) AA- (5) A1 (4) AA- 93 
Life Expectancy
(year 38)
(year 48)
3.44% 4.78% 7.96%
Length
Avg. Life Expectancy 38 years / age 89.04
Non-Guaranteed Cash
Surrender Values*
$458,507 $1,006,492 $1,456,408
Notes
Unadjusted
Income Tax
Adjusted
Income
Estate Tax
Adjusted
Projected Length of Coverage
Guaranteed
Death Benefit
Death Benefit Death Benefit
4.00% 4.50%
*Cash value is non-guaranteed and represents the policy earnings less charges. Earnings rate is subject to change by the insurer. Actual results may be more or less favorable. **Additional Death Benefit signifies illustrated death benefit in
excess of either the initial or guaranteed death benefit depending upon the product’s structure. Earnings are based on the carrier’s declared interest rate, which is subject to change. Charges are determined by the carrier and are also
subject to change. Please see the attached illustration for further details.
Initial Death Benefit $10,000,000
Policy Premium $81,623 for 74 years
-$ 10,000,000$
Age 100
(year 50)
-$
(year 28)
10,000,000$ 10,000,000$ 10,000,000$
Life Expectancy
(year 38)
-$ 10,000,000$ 10,000,000$
-$ 10,000,000$
$0
$2
$4
$6
$8
$10
$12
Life Expectancy -
10
10
Age 100
Millions

Lincoln National Life Insurance Company VULone-2012
Non-Guaranteed Cash
Surrender Values*
Notes
Income
Estate Tax
AdjustedUnadjusted
Income Tax
Adjusted
*Cash value is non-guaranteed and driven by market returns less policy charges. Actual results may be more or less favorable. **Additional Death Benefit signifies illustrated death benefit in excess of either the initial or guaranteed death
benefit depending upon the product’s structure. Earnings are market driven and charges are subject to change by the carrier. Please see attached illustration for further details. Securities offered through ValMark Securities, member FINRA,
SIPC. 130 Springside Drive, Akron Ohio 44333. 330-576-1234.
Age 100
(year 50)
10,000,000$

(year 48)
Age 100
(year 50)
8.06%
7.44% 12.41%
5.03%
Avg. Life Expectancy
11.57%
(year 28)
$391,903 $2,061,865 $5,122,048
38 years / age 89.04
Life Expectancy
(year 38)
10,000,000$
Carrier
Ratings
6.99%
19,167,425$
$96,012 for 75 years
$10,000,000Initial Death Benefit
10,000,000$
Guaranteed
Death Benefit
Death Benefit Death Benefit
7.00% 8.00%
(year 28)
11,533,759$ 19,989,559$
Life Expectancy
(year 38)
10,000,000$ 10,000,000$ 11,826,949$
(year 48)
11,102,417$
10,000,000$ 10,000,000$
Policy Premium
Projected Length of Coverage
Length
() after agency name shows the available non-
11.19% 18.66%
5.36%
Comdex (100-1)AM Best (1-6) SP (1-10) Moody's (1-10) Fitch (1-10) STAR™ (5-1)
(2) A+ (4) AA- (5) A1 (5) A+ 91
11.64%
5.00% 6.94%
$0
$2
$4
$6
$8
$10
$12
Life Expectancy -
10
10
Age 100
Millions

R E C O M M E N D A T I O N C O M P A R I S O N
The death benefit guarantee in this policy is
backed solely by the claims paying ability of the
carrier. If premiums are paid in-full, on-time, and
exactly as scheduled, the policy should perform
as designed.
$78,547 for 69 years $96,012 for 75 years
¢¢¢¢¢
¢££££
Highest
Lowest
$81,623 for 74 years
RECOMMENDATION 3
VULone-2012
Excellent claims paying ability. High ratings from all
major rating agencies. Strong capital position. Life
insurance is a primary focus.
If this policy is adequately funded, you may alter the
amount, duration, and frequency of premiums.
However, this may have an adverse impact on the
policy’s benefits. Therefore, careful monitoring of
policy performance is advised.
This policy’s equity accumulation is driven by the
carrier’s declared interest rate less policy charges,
which are both subject to change at the carrier’s
discretion. There may be contractual limitations on
accessing the equity in this policy. See illustration
for further details. The death benefit guarantee in
this policy is for a limited time, short of your life
expectancy.
Nonguaranteed elements are relied upon to support
the policy’s benefits at this projected premium level.
Should they not occur or are less favorable than
anticipated, you will need to increase premium.
The death benefit guarantee in this policy is backed
solely by the claims paying ability of the carrier and
supported by the policy's cash value. Performance
of non-guaranteed design parameters, including
cash value, are dependent upon the allocation
decisions you make and the returns of the
investment subaccounts.
PRODUCT
RATING
PRODUCT
RATINGYourLife No-Lapse Guarantee UL
RECOMMENDATION 2
Protection UL 13
COVERAGE
PRIORITIES
PRODUCT
RATING
RECOMMENDATION 1
DISCLOSURE: Recommendations presented may include variable life insurance products as well as fixed life insurance products; however, this page is not intended to explain any material differences between the products, their cost
structures, specific features, benefits, risk factors, liquidity or performance. The function of this page is to summarize products that may meet the coverage priorities that are unique to you. Please discuss each recommendation with your
insurance advisor and carefully read and consider all disclosure materials provided, including the product illustration and policy prospectus before investing.
¢¢¢¢£¢¢¢¢£¢¢¢¢£¢¢¢££
¢¢¢¢£¢¢¢¢¢¢¢¢££¢¢£££
¢¢¢££¢¢£££¢¢£££¢¢¢¢£
Very good claims paying ability. High or
moderately high ratings from most major rating
agencies. Average or acceptable capital
position. Life insurance is a primary focus.
Due to this policy's limited ability to accumulate
cash value and strict contractual requirements,
any alteration to the amount, timing or frequency
of premiums will have an adverse impact on
guarantees. Therefore, careful monitoring of the
amount and timing of premium payments is
essential.
1. SAFETY
2. FLEXIBILITY
3. EQUITY
4. CERTAINTY
5. PREMIUM
This policy accumulates equity at a rate below
comparable fixed income vehicles and cash
value is typically depleted early in the policy,
providing only a death benefit in later years.
Very good claims paying ability. High or moderately
high ratings from most major rating agencies.
Average or acceptable capital position. Life
insurance is a primary focus. The safety of this
recommendation is enhanced by the separate
account protection of the policy's cash values.
If this policy is adequately funded and investment
performance is favorable, you may alter the amount,
duration and frequency of premiums. However, this
may have an adverse impact on the policy’s
benefits. Therefore, careful monitoring of policy
performance is advised.
This policy's equity accumulation is driven by the
investment allocation decisions you make and the
performance of the securities market. There may be
contractual limitations on accessing the equity in
this policy. See illustration and prospectus for
further details.

D E F I N I T I O N S D I S C L O S U R E S
DISCLOSURES:
Information Provided by You - Information that you provided to your insurance professional on the Life Assurance Design Questionnaire™ about your goals, priorities and preferences are key assumptions for the
recommendations in this presentation. Please review your answers to the Life Assurance Design Questionnaire™ to verify their accuracy. If any of these assumptions are incorrect, you should notify your insurance
professional.
Accompanying Documents - Recommendations are incomplete without the accompanying Life Assurance Design Questionnaire™, STAR Rankings™, product illustration(s), and prospectus for variable insurance products.
The product illustration(s) contains information about the product’s features, risks, charges, and expenses. Please read and consider the information in the illustration and prospectus (if applicable) before investing.
Product availability and features may vary by state.
Guarantees - Death benefit guarantees are backed by the general account of the issuing life insurance company and availability of benefits may be dependent on the company’s financial strength.
Non-Guaranteed Assumptions - Attached illustration(s) may contain hypothetical policy performance scenarios based on non-guaranteed assumptions including policy earnings and costs of insurance. These assumptions
are subject to change and can either be higher or lower than illustrated. See illustration(s) for further details.
STAR Ranking™ - The Strength Tracking and Assessment Report™ (STAR) included as an attachment to your blueprint is a 41-point data analysis of the relative claims paying ability of life insurance companies that maintain
a selling agreement with ValMark Securities. The underlying data for the Strength Tracking and Assessment Report™ is updated and reviewed on a quarterly basis and includes insurance statutory financials and ratios,
information on availability and cost of capital, financial strength ratings, and relevant market data. The rankings created as a result of the data are not guaranteed and are in no way intended to be a replacement or
substitute for the financial strength ratings provided by the Nationally Recognized Statistical Ratings Organizations, AM Best, Standard Poor’s, Moody’s, and Fitch. The rankings are provided by ValMark Securities as an
incidental service to its affiliated insurance professionals to aid in the selection of carriers. The STAR Rankings™ for the life insurance companies referenced in this document may change at any time; therefore, such
information is valid only as of the date provided on page one of this document.
Carrier Ratings - Reflect the carrier financial strength and claims paying ratings assigned by one of four Nationally Recognized Statistical Ratings Organizations (NRSROs): AM Best, Standard Poor's, Moody's and Fitch.
Comdex (if included) is available through VitalSigns software. The Comdex is not a rating, but a calculated composite of carrier ratings. Due to the calculation methodology, it may produce results which favor companies
that are not rated by all four NRSROs and experience variations without changes in a given carrier's ratings. The carrier ratings listed on this presentation are current as of the date listed on page one of this presentation,
and as such, we make no representation as to the validity of such ratings beyond that date.
GENERAL DEFINITIONS:
Safety – The degree of protection around your plan. The safety of your policy is measured by three areas: the financial strength of the life insurance carrier that you choose, the degree to which we include additional
carriers in your plan to diversify the risk of insurance company default, and the protection your accumulated earnings have from your creditors and the creditors of the insurance company.
Flexibility – The ability to modify your plan as needs and circumstances change. Certain life insurance policies will allow for greater changes than others to the amount, timing, and duration of premium payments as well as
changes to the amount of coverage while you are insured.
Equity – The ability to accumulate accessible cash value in your policy. Equity in your policy functions as a tax advantaged savings account that may be accessed at your discretion to reduce future premium payments,
increase coverage, borrow against, or even supplement retirement income, subject to certain pre-defined contractual provisions. Depending upon the type of policy you have, equity may accumulate from premiums in
excess of policy charges, declared dividends, investment returns of the insurance carrier, or investment returns from exposure to the equity markets. Equity also represents a terminal sum that will be returned if the policy
is surrendered or exchanged.
Certainty – The degree of confidence that policy design parameters will perform as expected. Your policy may be designed initially to last a lifetime or a certain number of years depending upon your goals and the design
parameters you set. However, the actual length of your policy will be determined by factors such as the amount of premiums paid, the actual earnings rates received, policy charges applied, and other contractual
provisions. If you choose a policy with lower projected premiums that in turn create a lower degree of certainty around the plan, and the economic assumptions underlying the policy do not materialize as illustrated, the
policy may require an increase in premiums or a decrease in benefits in order to prevent lapse.
Premium – Premium does not represent the cost of the product, but rather the funding level necessary to sustain the death benefit under current economic assumptions. The necessary funding level shown in the
attached illustration(s) may fluctuate over time as a result of carrier profitability and policy performance.
Death Benefit - The Death Benefit illustrated is the Face Amount plus any Required Additional Death Benefit necessary to comply with federal tax law (Section 7702 of the Internal Revenue Code). This is the value that is
payable upon the death of the insured.
Lapse Age/Length of Coverage – The length of time that the policy will remain in force without insurance company guarantees. This projection is dependent upon the performance of non-guaranteed earnings
assumptions which may be more or less favorable and policy charges which are subject to change at the discretion of the insurance company.
Average Life Expectancy – The average survival experienced by a particular gender given age, smoking, and relative health/morbidity statistics. These values are determined by the 2008 Valuation Basic Table published by
the Society of Actuaries.
Internal Rate of Return (IRR) - The IRR is the interest rate that the premium payment schedule would have to earn in order to equal the amount of death benefit assuming a death claim in that year. As death benefits are
generally received free of income tax, the income tax adjusted IRR shows an estimate of the taxable equivalent IRR. The estate tax adjusted IRR (if shown) assumes the policy ownership allows the death benefits to avoid
inclusion in a taxable estate.

Prepared by: Capital Formation Group
Individual Life Expectancy
Name Valued Client
Age 51
Gender Female
Probability of Survival
UW Class Preferred NonTobacco
Life Expectancy 38.04 Years / Age 89
Year 33
Duration (Age) 61 71 76 79 84
Duration (Years) Year 10 Year 20 Year 25 Year 28
97.90% 92.84% 87.54% 82.77% 71.33%
Life Expectancy – The average survival experienced by a particular gender given age, smoking, and relative health/morbidity statistics. These values are determined by the 2008 Valuation Basic Table published by the Society of Actuaries.
Life Expectancy Analysis
Valued Client
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99 102 105 108 111 114 117
Probability of Death in a Given Year
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99 102 105 108 111 114 117
Probability of Survival

7A
UNDERWRITING ADVOCACY
OVERVIEW

WHAT IS UNDERWRITING ADVOCACY?
Using our knowledge of how carrier underwriters make decisions,
we proactively position your life insurance application in the most
favorable light. Underwriting Advocacy increases the potential for
positive underwriting results through a unique approach that adds
detail, expertise and clarity to the process. Our underwriters
leverage their strong technical abilities and deep relationships
across the industry while “humanizing” your case to help ensure
the best possible outcome.
Underwriting Advocacy is the art of packaging,
clarifying and negotiating to obtain the best
possible underwriting class.
HOW DOES THE UNDERWRITING
ADVOCACY PROCESS WORK?
Underwriting Advocacy leverages our insight into how decisions are
made at the carrier level by confidentially gathering your medical
information and presenting your case to multiple carriers. This
competitive bidding process gives you the control to choose what
outcome is in your best interest, even in the earliest stages of the
insurance application process.
OVERVIEW

Since 1963, ValMark has served as one of the
nation’s leading, independent life insurance
resources. With an estimated $50 billion
of in-force life insurance with the industry’s
top carriers, ValMark has preferred access
and leverage to negotiate arrangements on
behalf of clients. It has also enabled ValMark
to attract best-in-class talent from across the
industry in order to provide an underwriting
capability that rivals that of most carriers.
Your Underwriting Advocacy Team Includes:
Two former insurance company
underwriting directors
A former insurance company medical
director and licensed physician
A dedicated Underwriting Advocate to
provide central management for your
case, five of whom carry the top
underwriting designation in the industry
A senior staff of new business and
policy service specialists
WHO’S WORKING FOR YOU?
OVERVIEW
HOW IS THE COST OF INSURANCE DETERMINED?
The price of a policy is determined by the length of the contract, your gender,
your tobacco use and your underwriting class. The only real opportunity for price
negotiation is the underwriting class.
HOW IS THE UNDERWRITING CLASS DETERMINED?
Carrier underwriters gather information on your health, finances and lifestyle.
Underwriting leans heavily on the information provided on the application, as well
as information gathered throughout the process including, but not limited to:
Paramedical Examination (blood, urine, vitals EKG)
Medical Records
Driving Record
Prescription Database
MIB (Medical Information Bureau)
Financial Statements/Tax Documents
Avocation, Aviation and/or Occupational Hazards
We can gather and review this information up front on your behalf to help choose
the solution that fits you best. Also, sometimes the above sources can present
incomplete, inaccurate or incorrect information. Underwriting Advocacy can help
address these potential pitfalls to help you secure the most aggressive offer.

ADVOCACY IN ACTION
Having all the facts upfront allows us
to take full advantage of carrier niches.
Example: A 59-year-old male was
applying for $10M of coverage and
admitted to “social” cigarette use. At
face value, this automatically results in
Smoker rates across the board – you
smoke cigarettes, you’re a smoker. We
knew, however, that one carrier could
potentially offer some forgiveness
provided we met a number of
different caveats.
So, we worked to quantify his use,
scoured his medical records for any
contradictory statements (in regards
to tobacco), and proved that his use
was, indeed, “social” via a negative
nicotine screen. Although we were
technically a few uses over their
typical threshold, we were able to
leverage our strong carrier relationship
to secure an exception. At the end of
the day, we placed $10M of coverage
at Preferred NON-Tobacco rates.
Advocacy letters are used to provide
additional clarification or correct
inaccurate information in the medical
records. These letters and MD
responses can significantly impact
the underwriting outcome.
Example: A 50-year-old female
was declined for $8M of coverage
because her medical records stated
she had a history of a “lymphoma
(cancer) in her left arm”. In reviewing
the details, we noticed that this
record had been dictated and that
it appeared incorrect when looking
at the treatment plan.
We addressed an advocacy letter
to her MD who responded that there
was a misprint and that she was seen
for a lipoma (benign fatty lesion),
not a lymphoma. Once we had this
clarification in writing from her MD,
she received an offer of best class.
A couple in their early 60’s with a
net worth in excess of $100 million
needed $50 million of coverage at
a more efficient price. They had $30
million in force.
Coordinating the applications for
coverage with multiple companies
was essential in this case in order to
avoid reinsurance limits and diversify
coverage. The ValMark Underwriters
first used a unique, private inquiry
process to secure initial offers from
the companies. Secondly, they
coordinated three applications in
phases to avoid exceeding carrier
capacity limits. Lastly, they arranged
to have the clients examined only
once for all three applications.
The result was $50 million of joint
coverage at Preferred rates which
increased the overall efficiency of
the couple’s insurance profile.
A 64-year-old female was applying
for $5M of coverage. Her cardiac
history was notable for an abnormal
echocardiogram and holter monitor.
The insurance medicine view of her
cardiac history was complicated by
the fact that she had not had any
cardiac follow up showing stability
in over three years.
Our product design was very intricate
and the plan only worked with a product
from one carrier. Upon review, she was
approved at Table 4, which given her
premium tolerance, was not viable.
We shopped the file to two other
companies who we knew to be
aggressive with cardiac risks, and
they quoted Standard rates. Once we
received this feedback, we were able
to pivot back to our carrier of choice
and leverage our original Table 4 quote
to Standard rates based on our strong
relationship and the carrier’s desire
to find a creative solution for a good
business partner of theirs.
A NON-TOBACCO
CIGARETTE USER?
BEWARE OF
TYPED RECORDS!
RELATIONSHIPS
ARE EVERYTHING
STRATEGIC APPROACH
TO MULTIPLE COMPANIES

TESTIMONIALS
We’ve utilized Underwriting Advocacy
with all of our high net worth clients. It’s
given us control and has allowed us to
anticipate and address any potential
problems upfront.”
Underwriting Advocacy allowed us to
do a complete evaluation and put the
best product in place for each client,
for each situation.”
Not only does Underwriting Advocacy
setusapartfromthecompetition,butour
clients appreciate that their information
is protected and we have the carriers
compete for their business.”
“ ““
proactive unique
The reason Valmark’s underwriting
process is the best in the industry is
because their foundation was in life
insurance – negotiating on behalf of
the client is in their DNA.”
“
proven
optimized
“
innovative
Valmark’s life insurance underwriting
offers a real competitive advantage.
Valmark takes ownership of the
underwriting process. But where they
really excel is in the human skills of
interpreting and communicating those
results to prospective carriers to obtain
the lowest rates.”
Valmark’s in-house medical directors
work magic in helping underwriters
accurately interpret the medical files
to eliminate risk, uncertainty and non-
conclusive results. They’re amazing
advocates for reducing my clients’ rates.”
“
precise
REACTION FROM VALMARK AGENTS WHOSE CLIENTS
HAVE BENEFITED FROM UNDERWRITING ADVOCACY

7B
PURE: PRIVATE UNDERWRITING RATING EVALUATION

PURE: Private Underwriting Risk Evaluation
Securities offered through ValMark Securities, Inc. Member FINRA, SIPC
Advisory Services offered through ValMark Advisers, Inc. A SEC registered investment advisor
130 Springside Drive, Akron, OH 44333 800.765.5201 V.08.2017
WHEN APPLYING FOR LIFE INSURANCE,
IT IS IMPORTANT TO SEEK:
· The best possible underwriting outcome
· Optimal premium costs
· Full-access to the top carriers in the market
· Privacy and confidentiality
OUR PURE PROCESS DELIVERS!
Through Valmark Financial Group, your
representative has access to an on-staff medical
physician, a dedicated team of professional
underwriters and relationships with the nation’s
leading paramedical providers and laboratories.
These resources allow us to privately evaluate
your life insurance qualification options before a
formal application for coverage is submitted to a
carrier, protecting your identity and insurability while
also giving us tremendous leverage to negotiate
underwriting offers among competing carriers.
A COMPLETE EVALUATION OF INSURANCE ELIGIBILITY
1. To start the process, Valmark privately builds an underwriting file, including medical records, a prescription
database report, driving records and an electronic inspection report.
2. An insurance paramedical exam is scheduled and completed. This process could include a physical examination,
lab work (blood and urine), a resting EKG and a mature assessment.
3. We review, analyze and assess the assembled information. Then, we determine which insurance companies to
target based on carrier underwriting niches and your unique goals.
4. Knowing first impressions are important, we proactively address any abnormalities or concerns and submit the
file to carriers with an advocacy letter. This process helps set proper expectations for all parties and provides us
with leverage to negotiate with multiple carriers.”
5. Once the insurance company underwriters review the file, our dialogue with them allows for clarification of any
questions and additional advocacy. When informal offers are received, our team selects the best possible offer,
assists with assembling any outstanding items and helps to turn your informal file into a formal application.
Our PURE process ultimately enables us to better anticipate any personal underwriting challenges and proactively find
solutions that include the most optimal premiums, while best meeting your unique life insurance needs and goals.

7C
THE UNDERWRITING ADVOCACY TEAM

UNDERWRITING ADVOCACY TEAM
Chris Bottaro, Vice President, Insurance Services
Chris Bottaro is the Vice President of Insurance Services for our
partner, ValMark Financial Group. He is responsible for the vision,
strategy, and execution of life insurance underwriting and new
business initiatives. Formerly, Chris was an Underwriting Account
Executive at Lincoln Financial Group where he led a team of 25
underwriters and new business associates through strategic
initiatives aimed at making the life insurance process simpler and
more efficient for advisors and their clients. Chris received a BA
in Economics from Boston College, an MBA from the University of
Massachusetts and holds FINRA Series 6 and 26.
Lauren Heinz Ballantine, Senior Underwriter
Lauren Heinz Ballantine is responsible for the design and
management of underwriting for special risk cases and serves
as escalation contact for any new business issues. Lauren has
held previous positions with ValMark Financial Group as an
underwriter and technical advisor, and has presented at industry
conferences. She earned a BA in Biology and Art at the College
of St. Benedict and St. John’s University, where she won a
President’s Scholarship. She is a Fellow with the Academy of
Life Underwriting (FALU); serves on the Program Committee
and is a member of the Twin Cities Association of Home Office
Underwriters (TCAHOU); and holds life and health insurance
licenses.
Bridget Burtzel, Director, New Business
Bridget M. Burtzel (FALU) is responsible for the management of
the new business team. She also serves as an escalation contact
for any new business items. Bridget received a B.A., Magna
Cum Laude, in Business Management from Gustavus Adolphus
College, where she earned a Dean’s Scholarship. She is a Fellow
at the Academy of Life Underwriting (FALU) and a member of the
Twin Cities Association of Home Office Underwriters (TCAHOU).
Eric Johnson, Vice President, Underwriting
Eric Johnson is responsible for risk assessment appraisal,
consultation, and negotiation on behalf of ValMark members
and its clients. With extensive experience with impaired risk and
jumbo case underwriting, reinsurance operations, sales and
brokerage operations, Eric has a strong reputation throughout
the home office underwriting community as well as more than 25
years of underwriting leadership experience.
Michael Noss, Senior Underwriter
Michael Noss is responsible for the design and management
of underwriting for special risk cases and serves as escalation
contact for any new business issues. Michael has served as an
underwriter and technical advisor with ValMark Financial Group
and has presented at industry conferences. Michael earned a BA,
Philosophy and Communication, from St. John’s University, and a
President’s Scholarship. He is a Fellow with the Academy of Life
Underwriting (FALU) and a Member of the Twin Cities Association
of Home Office Underwriters (TCAHOU).
Barry Reed, MD, JD, Consulting Medical Director
Dr. Barry Reed’s experience in Underwriting Management
includes positions as Vice President, Medical Underwriting, for
MetLife; Medical Director and General Manager in the Medical
Services Department, for Prudential Life Insurance Company;
and Medical Director for Empire Blue Cross/Blue Shield. His
clinical medicine experience includes positions as Emergency
Department Chief at Calvert, St. Mary’s and Charles County
Community Hospitals, Maryland; and at the New York Hospital/
Cornell Medical Center, NYC. Dr. Reed worked on insurance
litigation and legal and medical tort cases at Swartz Reed, New
Albany, OH. His education includes a BA in Political Science from
the University of Washington; an MD from George Washington
University; and a JD from the Catholic University of America.

8A
LIFE SETTLEMENT ADVOCACY
LIFE SETTLEMENT  POLICY APPRAISAL REPORT

The amount of time it takes to complete a typical life settlement may range
between 3 and 5 months. While we are limited in our ability to reduce the amount
of time it takes to complete a case, what we can do is help identify the likelihood
that a particular case will receive offers in the secondary market. The goal is to
eliminate going through this lengthy process only to receive an unfavorable result.
This report helps to identify the probability that a case will be a success, based on
the criteria you provide.
The statistics on the following page are derived from a third-party life settlement
pricing model, Price-First, that was developed by Welcome Life Financial Group,
LLC. Mortality assumptions provided herein, including 2008 VBT's* and mortality
percentages are purely hypothetical estimates. The parties are not life expectancy
providers and do not determine life expectancies nor mortality ratings used to
determine life expectancies. The following page summarizes the results of these
calculations. ValMark Securities is not affiliated with or a part of Welcome Life
Financial Group. ValMark Securities does not guarantee the accuracy of the
projections and cannot verify the accuracy or completeness of assumptions upon
which any calculation is based. All data, valuations, calculations, forecasts and
projections contained herein are for illustrative and educational purposes only.
We are pleased to provide you this report aimed at increasing the efficiency of the
services we provide to you, our valued client. In order to properly advise you, we
must be able to identify both promising opportunities as well as any obstacles that
may be involved in your case. This report is intended to sketch a picture of your
potential life settlement. With such a picture in hand, together, we can evaluate
whether or not a life settlement is worth pursuing based on its likely outcome. We
trust you will find it helpful in planning your financial future.
PLEASE NOTE THAT THE FOLLOWING SUMMARY IS NOT INTENDED TO PREDICT THE WORTH OF ANY POLICY. THERE IS NO
GUARANTEE THAT YOUR POLICY WILL RECEIVE AN OFFER ON THE SECONDARY MARKET.
INTRODUCTION
MEASURING YOUR POLICY'S POTENTIAL
PART OF THE LIFE SETTLEMENT ADVOCACY PROGRAM. © COPYRIGHT VALMARK SECURITIES 2015

CLIENT INFORMATION
SEX AGE
Female 87
POLICY INFORMATION
PROBABILISTIC PRICING ANALYSIS
2008 VBT
200%
60 mos | 5.0 yrs
$247,481
*VBT - Valuation Basic Tables prepared by Society of Actuaries
MORT %
© COPYRIGHT Price-First 2015 All rights reserved
2008 VBT
125% 150% 175%
2008 VBT 2008 VBT
$198,315
ESTIMATED
GROSS OFFER
In a life settlement agreement, the current life insurance policy owner transfers the ownership and beneficiary designations to a third party, who
receives the death proceeds at the passing of the insured. As a result, this buyer has a financial interest in the seller’s death. When an individual
decides to sell their policy, he or she must provide complete access to his or her medical history, and other personal information, that may affect
his or her life expectancy. This information is requested during the initial application for a life settlement. After the completion of the sale, there
may be an ongoing obligation to disclose similar and additional information at a later date. A life settlement may affect the seller’s eligibility for
certain public assistance programs, such as Medicaid, and there may be tax consequences. Individuals should discuss the taxation of the
proceeds received with their tax advisor. ValMark Securities supervises life settlements as a security transaction. ValMark and its registered
representatives act as brokers on the transaction and may receive a fee from the purchaser that will reduce the final settlement offer significantly,
as determined by the compensation schedule.
MORTALITY
ASSUMPTION
*In situations where the providers' offers will not exceed the cash value of your policy, no offer will be made. You may then choose to retain your
policy or surrender it to the issuing company. Please note that the preceding summary is not intended to predict the worth of any policy. There is no
guarantee that your policy will receive an offer on the secondary market.
- UL
MEAN LE
DEATH BENEFIT
$23,700
SMOKER
No
$625,000
NAME
CASH SURRENDER VALUE
$82,000
$224,846
81 mos | 6.7 yrs 72 mos | 6.0 yrs 65 mos | 5.4 yrs
$166,722
CARRIER ILLUSTRATION DATE POLICY ISSUE DATE MATURITY AGE
ANNUAL PREMIUM
DATE OF BIRTH
11/29/1928
POLICY NUMBER / TYPE
Securities Offered Through ValMark Securities, Inc., Member FINRA, SIPC
130 Springside Dr., Suite 300 ▪ Akron, OH 44333-2431 ▪ (800) 765-5201
AVS Underwriting, LLC (American Viatical Services), 21st Life Expectancy Co. and Fasano Associates are independent third party companies that
provide life expectancy underwriting calculations (average number of years a person is expected to life) based upon their age, gender, lifestyle,
smoking status, family history and medical conditions (based upon medical records).
Hartford Life 8/23/2016 12/22/2006 110
Valued Client
1234567

8B
SIX QUESTIONS REGARDING LIFE SETTLEMENTS

1. DOES THE BROKER YOU ARE USING SUPERVISE THIS TRANSACTION AS A SECURITY?
OVERVIEW
SIX QUESTIONS TO CONSIDER
WHY IS THIS IMPORTANT? When a company supervises this transaction as a security, it means that it is not only
held to state insurance regulations governing the business but also must adhere to laws and practices relating
to security transactions. This requires the company to perform such tasks as due diligence on all funding
sources, full disclosure of both compensation and offers, and employ a negotiating process that assures best
execution on every transaction. Simply put, by supervising the transaction as a security, a company can
minimize the risks associated with conducting a life settlement.
WHY IS THIS IMPORTANT? In a life settlement transaction, the policy is being sold to a third party. Because the
third party receives its return on investment only when the insured passes away, it is extremely important to
know who is buying the policy since they have an interest in the insured’s passing. With institutional buyers,
these policies are held in large blind trusts to assure client confidentiality.
These trusts may own hundreds of millions of dollars of life insurance so that performance is not based solely
on the longevity of a single insured. Investors experience returns based on the performance of the entire pool of
assets. With this in mind, you can see how important it is to ensure you are selling policies only to institutional
funds that have undergone a rigorous due diligence process. The requirement that providers are licensed in your
state may also add an additional level of due diligence, as conducted by the state.
See Fourth Circuit Court of Appeals Life Partners v. Morrison Case No. 06-1370 and National Underwriter, August 6, 2007, “Settlement Firms
Say Policyholder Information Is Safeguarded”.
WHY IS THIS IMPORTANT? Life settlement offers may vary widely among providers and are very sensitive to
variables such as the insured’s life expectancy (LE), the policy’s premium requirements, market interest rates,
and the status of each funder’s current portfolio of policies.
For example, at any given time, one company may have a large inventory of policies insuring individuals with
short life expectancies. To balance its portfolio, the company will need to buy policies where the insureds have
long LEs. Thus, for a limited period, the company will have “strong money” and will make more aggressive offers
on long LE policies.
There are numerous circumstances that cause one company to have “strong money” at one point in time, and
then a completely different company to have “strong money” only weeks later. For this reason it is important to
shop policies among a large number of institutional providers in order to capture the “strong money” in the
market at any given point in time.
See National Association of Insurance Commissioner’s 2007 Amendments to Viatical Settlements Model Act  4th Circuit Court of Appeals
Life Partners v. Morrison Case No. 06-1370  and Morningstar, June 2006, “Our Take on the Secondary Market for Life Insurance.”
 2015 VALMARK SECURITIES, INC.  ALL RIGHTS RESERVED  130 SPRINGSIDE DR., STE. 300  AKRON, OH 44333  800.765.5201  MEMBER FINRA, SIPC.  09.09.15 1
2. ARE THE COMPANY’S FUNDING SOURCES EXCLUSIVELY INSTITUTIONAL? ARE THEY LICENSED IN YOUR STATE?
WHEN EVALUATING LIFE SETTLEMENT OPPORTUNITIES
3. DOES THE COMPANY WORK WITH SEVERAL DIFFERENT LICENSED LIFE SETTLEMENT PROVIDERS?

OVERVIEW
WHY IS THIS IMPORTANT? Because it is impossible to predict exactly which providers will have the strongest money
at any given point in time, it is crucial to have a consistent and written process that finds this money for you. A
formal, systematic bid process that forces all providers to play on the same level playing field and awards cases
strictly on the merit of the provider making the highest offer – allows consumers to know they are receiving a true
fair market value for the sale of their policy.
Also, an informal survey at ValMark Securities uncovered several cases in which initial offers were only 25% of the final high offers made
via a formal bidding process. The finding underscores the importance of a formal bidding process among multiple, institutional funding
sources in order for clients to be confident they are receiving a fair market value for the sale of their policies.
WHY IS THIS IMPORTANT? Uniform and capped compensation assures that the interests of the broker and your
advisor are aligned with obtaining and presenting the highest offer for the client. For this reason, both clients and
their advisors should insist that the broker demonstrate in writing that compensation is both uniform and capped.
For example, if compensation is not uniform with all providers, the broker you are using may have an incentive to
push business to the provider that offers them higher compensation, which may or may not be the provider that
offers the client the most money.
Capped compensation should be required as well to ensure that the company has a ceiling for the level of
compensation it receives for brokering a transaction.
The recent regulatory actions by some governmental agencies, such as a task force investigating life settlements,
were prompted by providers that offered bribes (called co-brokering fees) to steer business their way at a lower price
than the client would have otherwise received. This is an unacceptable practice and the reason why the broker
should be asked to demonstrate in writing that compensation is both uniform and capped.
See formal complaint issued by the People of The State of New York (by Eliot Spitzer) v. Coventry First; Florida Office of Insurance
Regulation’s Notice and Order To Show Cause (Case No. 88270-06) issued to Coventry First; and Section 7 Uniform Prudent Investor Act.
WHY IS THIS IMPORTANT? In addition to requiring uniform and capped compensation, consumers should demand
that all offers and total compensation to all parties be fully disclosed. Full disclosure is perhaps the most important
way to assure that your interests are protected and that you are making an informed decision. Currently, only a few
states require full disclosure and while the NAIC has passed model regulation to require this in the future, it will likely
take years for all states to enact the law. In the interim, clients should be proactive in seeking full disclosure of all
offers on the table as well the compensation paid to agents and brokers facilitating the life settlement transaction.
Only a company willing to disclose this information should be worthy of your business.
See NASD Notice 06-38; Section 7 – Uniform Prudent Investor Act; National Association of Insurance Commissioner’s 2007 Amendments
to the Viatical Settlements Model Act; and National Underwriter, March 2006, “NASD Chairman Eyes Secondary Life Market”.
4. DOES THE COMPANY NEGOTIATE OFFERS THROUGH A FORMAL, WRITTEN BID PROCESS?
5. IS THE COMPANY’S COMPENSATION UNIFORM AND CAPPED WITH ALL PROVIDERS?
6. ARE BOTH THE OFFERS AND THE TOTAL COMPENSATION FULLY DISCLOSED?

OVERVIEW
In a life settlement agreement, the current life insurance policy owner transfers the ownership and beneficiary
designations to a third party, who receives the death proceeds at the passing of the insured. As a result, this buyer
has a financial interest in the seller’s death. When an individual decides to sell their policy, he or she must provide
complete access to his or her medical history, and other personal information, that may affect his or her life
expectancy. This information is requested during the initial application for a life settlement. After the completion of
the sale, there may be an ongoing obligation to disclose similar and additional information at a later date. A life
settlement may affect the seller’s eligibility for certain public assistance programs, such as Medicaid, and there
may be tax consequences. Individuals should discuss the taxation of the proceeds received with their tax advisor.
ValMark Securities supervises all life settlements like a security transaction. ValMark and its registered
representatives act as brokers on the transaction and may receive a fee from the purchaser.
SECURITIES OFFERED THROUGH VALMARK SECURITIES, INC., MEMBER FINRA, SIPC ▪ 130 SPRINGSIDE DR., SUITE 300 ▪ AKRON, OH 44333 ▪ (800) 765-5201
IMPORTANT INFORMATION

8C
LIFE SETTLEMENTS  ADVISOR BRIEFING

ADVISOR BRIEFING
THE FOURTH OPTION
A growing number of life insurance policyholders are seeing
their annual premiums suddenly double or triple in size. As
a result, many have felt compelled to surrender or lapse
their policies. Some have recently joined class-action
lawsuits against their insurance carriers. However, a fourth
option exists, which has the potential to help policyholders
recover a portion of their policy’s value: a Life Settlement.
Advisors may find this fourth option to be the most prudent
choice for their clients. This paper explains why.VALMARK LIFE SETTLEMENTS
LIFE SETTLEMENTS

CARRIERS SUED BY POLICYHOLDERS OVER INCREASED RATES
“Transamerica Sued By Policyholders Over Rate Hikes”
This headline has been making its rounds in the financial
media for the better part of a month. The well-publicized
lawsuit comes on the heels of a similar lawsuit against
AXA and it’s only a matter of time before a handful of
other carriers1 find themselves in court facing similar
complaints.
The controversy stems from announcements in late 2015
by Transamerica and others that they were increasing the
expenses assessed against mostly older policies issued
in the 1980s and 1990s. In letters to its customers,
Transamerica said the rate increases were based “on our
current expectations regarding future costs of providing
this coverage.” These increases have been significant,
soaring to 80% or higher than the original planned
premiums on the policies.
1 These carriers include Banner, William Penn, Voya, and Lincoln Financial.
JUNE 2016
Why Is This Happening?
The policies at risk for these rate hikes fall into the
category of Current Assumption Universal Life policies.
These were developed in the 1980s during a period of
high interest rates. The earlier versions of these policies
had high guaranteed crediting rates, many at 4%.
Insurance carriers make their money on the interest rate
spread in the policy and on the cost of insurance rates.
For example, if the carrier is crediting a 4% rate to a
policy, it needs to generate higher returns than 4% to
make money.
In today’s low interest rate environment, the carriers are
not only NOT making money on the interest rate spread,
they are, in fact, losing money. The result is that carriers
have raised cost-of-insurance rates to offset the low
interest rates and to attempt to increase their profits on
these older blocks of business. Continued on next page.
Jon Smith, 1 an 83-year-old entrepreneur, had a $1.3 million
Universal Life policy on his life that was owned by a Limited
Partnership. The policy was purchased in 1995 when the
planned premium was $13,000. The insurance carrier had
unexpectedly increased the cost of insurance on this policy.
The new premium to maintain the policy to age 100 was raised
to $95,000—over seven times the original planned premium.
ValMark’s life settlement team worked with multiple providers
through a bidding process to negotiate an optimum life
settlement offer. This resulted in a total gross offer of
$315,000 2 (before commissions and expenses).
POLICY TYPE Universal Life
DEATH BENEFIT $1,300,000
CASH SURRENDER VALUE $173,000
ORIGINAL PLANNED PREMIUM $13,000
ANNUAL PREMIUMS $95,264 to Age 100
LIFE EXPECTANCY 55 to 79 Months
LIFE SETTLEMENT OFFER $315,000 Gross2
1Client name has been changed to protect confidentiality.  2 The gross offer will be reduced by commissions and expenses related to the sale.
2016 VALMARK SECURITIES, INC.  ALL RIGHTS RESERVED  06.17.16 PAGE 2 0F 4

Capital Formation/ValMark Trustee Life Insurance Review & Management

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