# Presentation: 719522

- How much life insurance
- would it take for your family
-  to maintain their lifestyle if
- something happened to you?

- Has your life insurance coverage kept pace with your family's expenses, goals and life events?

- How long would you want
-  to provide for your
- family if something
-  happened to you?

- Have you considered how you will pay for post-retirement medical expenses?

- Has your life insurance coverage kept pace with your family's expenses, goals and life events?

- Are you looking for
- a tax-advantaged means
-  to supplement your
- 401(k) contributions?

- Have you considered how
- you will achieve your
- retirement savings goals?

- How much would your family
- need to replace your lost
-  earning power if something
- happened to you?

- Have you considered
- the rising cost
- of higher education?

- How long would you want
- to provide for your family
-  if something should
- happen to you?

- Life insurance coverage equal to or less than three years of total household income is considered “underinsured”.*

***As defined in MetLife, Life Insurance—Post-9/11/01 Study, 2002.**

**Notes:**
OPTIONAL SLIDE
SCROLLING QUESTIONS : 
 How much life insurance would it take for your family to maintain their   lifestyle if something happened to you? 
 Has your life insurance coverage kept pace with your family's expenses,    goals and life events? 
 How long would you want to provide for your family if something should   happen to you?
 Have you considered how you will achieve your retirement savings goals?
 How much would your family need to replace your lost earning power if   something happened to you?
 Have you considered how you will pay for post-retirement medical   expenses? 
 Are you looking for a tax-advantaged means to supplement your 401(k)   contributions? 
 Have you considered the rising cost of higher education?Life insurance coverage equal to or less than three years of total household income is considered “underinsured”.  As defined in MetLife, Life Insurance—Post-9/11/01 Study, 2002.

## Slide 2

**Notes:**

SCRIPT B FOR WEB CASES  
Hello and thank you for attending our discussion today.  My name is [YOUR NAME].  I am a(n) [Client Executive/Account Executive] of Metropolitan Life Insurance Company and a registered representative with MetLife Investors Distribution Company.

We are here today to discuss an enhancement to the life insurance program here at [COMPANY NAME].  This enhancement comes in the form of a new life insurance opportunity for [COMPANY NAME] employees called Group Variable Universal Life (GVUL) Insurance.  
Our discussion today is part of a process that involves identifying your life insurance needs, quantifying those needs and then providing for those needs.  As a part of that process, our discussion is geared towards helping you understand and take advantage of the opportunities available within GVUL —opportunities to provide for some of the needs you’ll identify.  I’ve referred to our time today as a discussion so, please feel free to ask questions as we go. 

##    Ask Yourself...

-    Ask Yourself...

- How much life insurance would it take for your family to maintain their lifestyle if something happened to you?
- Has your current life insurance coverage kept pace with your family's expenses, goals and life events?

- 2 As defined in MetLife, Life Insurance—Post-9/11/01 Study, 2002.

**Notes:**
We said that this process begins by identifying needs and then quantifying those needs.  Let’s begin this process by asking yourself some questions to help you identify your potential life insurance needs. 
  How much life insurance would it take for your family to maintain their     lifestyle if something happened to you? 
  Has your current life insurance coverage kept pace with your family's    expenses, goals and life events? The answers to these questions can create an initial picture of what your life insurance needs may be.  While you are thinking about these questions consider an answer we discovered during a recent Post 9/11 Study we conducted, in 2002. We found that 58% of Americans with financial dependents are underinsured  —meaning that, in the event of their death, they will provide less than three years of total household income to their survivors through life insurance.  

##    How Much Coverage?

-  How much life insurance you need is a personal decision based on your individual cumstances.

- Life Insurance Calculator at **gvulenroll.metlife.com**

- Replacement of all current optional term life insurance coverage3
- Guarantee Issue coverage rounded up to the next 1⁄2 multiple
- Optional Coverage in 1⁄2 multiples to 8 times your salary to a
-    maximum of $2,000,000

- 3 Upon enrollment into the program.

**Notes:**
So how do you determine the appropriate amount of coverage?  Let’s first look at the details of the program available to [COMPANY NAME] employees. 
COVERGE AVAILABLE WILL VARY OPTIONAL TEXT: [When you enroll in GVUL, all of your current coverage will be replaced on a guarantee-issue basis.  Your employer provides the premiums for basic coverage of [X] times your salary up to $ [X]. This is an excellent basic benefit provided to you by your employer however, it might not provide enough coverage for your total life insurance needs. [COMPANY NAME] understands this and as a result has structured your benefits to offer the ability to obtain additional coverage from [X] to [X] your salary-available up to $ [X].]  
INCLUDE FOR CASES WITH EMPLOYER PROVIDED PREMIUMS: Please note that employer provided premiums will be taxable to you. 
How much coverage you should provide is a personal decision based on some of the needs we just identified and on your individual circumstances.  We can, however, show you tools that can help you quantify your needs.  One tool that is available to you when you enroll on the enrollment site is a life insurance calculator.

Earlier in our discussion, I mentioned that there are two distinct parts to GVUL.  We’ve discussed how the the life insurance piece can help provide protection for your survivors but before I go further are there any questions regarding the life insurance part of our discussion?    

##    Ask Yourself...

- Would you like to supplement your 401(k) contributions?
- Are you saving for the rising cost of education?
- Are you planning for post-retirement medical expenses?

- By utilizing GVUL’s investment feature, you can access any cash value that is built up in your certificate, *during *your lifetime for expenses such as education, real estate opportunities, post-retirement medical programs or early retirement.

**Notes:**
Let’s continue our discussion into the second component of GVUL.  In addition to providing life insurance protection, GVUL offers the opportunity to help provide for accumulation needs that will occur during your life, on a tax-advantaged basis.  And as we did with the life insurance piece, let us begin this process by asking some of the questions we posed at the beginning of our discussion.  Ask yourself:
 Would you like to supplement your 401(k) contributions?  Currently, according to IRS rules the maximum contribution limit for 401(k)s in 2006 is $15,000 (does not include “catch-up” provisions for qualifying individuals). 
 Are you saving for the rising cost of education? According to The College Savings Board’s 2005 Trends in College Pricing Report —last year alone the average tuition and fees at four-year public college increased 7.1% from the previous year.
 Are you planning for post-retirement medical expenses?  Have you considered the how you will address the potential healthcare costs?  According to a recent study by the Employee Benefit Research Institute even with Medicare, a 65-year-old without employer coverage would need at least $116,000 for out-of pocket costs and supplemental coverage through age 80. (EBRI, “Retiree Health Benefits: Savings Needed to Fund Health Care in Retirement”, February, 2003.)By utilizing GVUL’s investment feature, you can access any cash value that is built up in your certificate, during your lifetime for expenses such as, education, real estate opportunities, post-retirement medical programs or early retirement.  
[FOR CASES WITH CASE TERMINATION PROVISION ONLY: Please note that, in some program designs, if your employers’ MetLife GVUL group contract is terminated, your MetLife GVUL coverage may also be terminated, even after separation from employment or in retirement.]  

##    Tax-Advantaged Investment Opportunity 

**And an Interest Bearing Account currently paying 5.1% (4%guaranteed)****6**

-    Tax-Advantaged Investment Opportunity

- Premium charge: 2.25%
- Average asset charge: 1.52% - will vary depending oninvestments selected

**17  Variable Investment Portfolios**

- 6The current crediting rate on the interest-bearing account is subject to change. Guarantees are subject to the claims-paying ability of Metropolitan Life Insurance Company.

**Notes:**
The investment feature within GVUL can provide you with a tax-advantaged investment opportunity to address your individual financial planning needs. This opportunity offers you the ability to choose among [X] variable investment portfolios.  

OPTIONAL TEXT: [It also offer an interest bearing account option that is currently paying 5.1% —with a guaranteed rate of 4%. All guarantees are based on the claims-paying ability of Metropolitan Life Insurance Company.]  

Money allocated to the investment portfolios within GVUL is subject to market risk and may be worth more or less than your original investment when redeemed.  Please review the prospectus for important information regarding risk, charges and expenses, and the investment objectives, risks and policies of the underlying investment portfolios.

[GVUL premiums are subject to a [X] % premium charge. The average asset charge] [by prospectus is 1.52%/ will vary depending on investments selected.]   

##    Tax-Advantaged Investment Opportunity 

- Potential tax-deferred growth
- No surrender charges
- Tax-free transfers between investment portfolios
- No 59 **1/2** early withdrawal penalties —withdrawals will reduce your cash value and death benefit
- Tax-free withdrawals up to basis7

- 7 In general, if the funding of your certificate exceeds certain limits, it will become a "modified endowment contract" (MEC) and become subject to "earnings first" taxation on withdrawals and loans. An additional 10% penalty for withdrawals and loans taken before age 591/2 will also generally apply.  We will notify you if a contribution would cause your certificate to become a MEC.

**Notes:**
GVUL’s investment feature offers:

 Potential tax-deferred growth
 No surrender charges 
 Tax-free transfers between investment portfolios
 No 59 1/2 early withdrawal penalties. Note, withdrawals will reduce  your cash value and death benefit.
 And, withdrawals can be made without tax consequences up to your     basis.  We will cover basis more in detail in a moment.  Please     note that withdrawals up to basis are tax-free provided that the      contract is not a modified endowment contract. In general, if the funding of   your certificate exceeds certain limits, it will become a "modified   endowment contract" (MEC) and become subject to "earnings first” taxation   on withdrawals and loans.  An additional 10% penalty for withdrawals and   loans taken before age 59 1/2 will also generally apply.  MetLife will notify   you if a contribution would cause your certificate to become a MEC.  

##    Tax-Advantage of GVUL Premiums

- Buying Term Insurance &Investing Elsewhere

- Buying GVUL & Investing Within the Program

- Separate Investment8

- Premiums For Term Life Insurance Coverage

-            Basis = Only Amount of Money Invested In Separate Investment

- Basis =
-  Total GVUL PremiumsPaid

-    Tax-Advantage of GVUL Premiums

- Premiums For GVUL Insurance Coverage

- Extra GVUL Premiums For Investment

*8 **Under current law, most tax payers are subject to a lower rate of tax on qualifying dividends and long-term capital gains than on ordinary income. Taxable distributions from GVUL are subject to ordinary income tax rates.*

**Notes:**
Let’s further discuss the tax-advantage of GVUL premiums.  Let’s assume that you have term life insurance and are investing after-tax dollars outside your life insurance into a separate investment.  The premiums you pay for your term life insurance are an expense and only provide for the life insurance protection. Investment dollars in the separate investment have the potential to generate earnings.  

Let’s look at how GVUL can help you satisfy your life insurance and investment  needs in one product.  The insurance premiums go into the product and provide life insurance protection for your survivors.  The investment dollars also go into GVUL and earnings, if any, grow tax-deferred.

The tax-advantage of GVUL is that if you decide to withdraw from your the cash value, your basis will include your investment dollars and the premium paid for life insurance.  So, GVUL turns an expense, the cost of life insurance, into a potential tax savings by increasing your basis. 

##    Tax-Advantage of GVUL Premiums - Example

**Extra Premium ****For Investment ****$30,000**

** *****(Basis)***

**Premiums **

**Age at Issue: 40****End of 25 Years****$500,000 Coverage **

**    **
**           ****Paid in Total ****        = $80,000**

*The above example is not  indicative of any particular investment. These examples do not reflect any charges. Earnings within your GVUL coverage generally can be withdrawn from your certificate without income tax, as long as the cash value in your certificate is less than the total premium paid into your certificate at the time of withdrawal, less any prior withdrawals, and provided that the contract is not a modified endowment contract.*

**Available ****Cash Value****= $80,000**

**Cash Value ****Subject to Tax = $0**

**Premium For GVUL ****Insurance Coverage**

**$50,000**

**Extra Premium ****For Investment**** **

-    Tax-Advantage of GVUL Premiums - Example

**Withdrawals will reduce the cash value and the death benefit.**

**Premium For GVUL ****Insurance Coverage**

**Notes:**
Now let’s look at how basis works.  For illustration purposes these examples are not indicative of any particular investment and do not reflect any charges and/or fees that may be associated with a particular investment.  Charges may effect performance results. 

Assume that an employee who at 40 years old, identified a need to provide $500,000 of life insurance protection.  Over the course of 25 years, $50,000 in premiums were paid for this coverage.  

This employee also identified a need to participate in the tax-advantaged investment opportunity to help provide for future expenses such as higher education and retirement.  Over the course of 25 years, the total amount of dollars this employee invested was approximately $30,000.  In our previous slide we indicated that premiums for life insurance and investment dollars are both included in this amount we call “basis”. In this example, that amount adds up to $80,000. 

At the end of 25 years, their extra premium for investment and potential earnings totaled to an available cash value of $80,000.  If this employee decided to withdraw their entire cash value, for any reason they could withdraw the entire cash value tax-free, since it is offset by the basis.  Note any withdrawals will reduce the cash value and death benefit. 

##    Tax-Advantage of GVUL Premiums - Example

**Extra Premium ****For Investment ****$100,000**

** *****(Basis)***

**Premiums **

**Age at Issue: 40****End of 25 Years****$500,000 Coverage **

**    **
**           ****Paid in Total ****        = $150,000**

**Available ****Cash Value****= $250,000**

**Premium For GVUL ****Insurance Coverage**

**$50,000**

**Extra Premium ****For Investment**** **

-    Tax-Advantage of GVUL Premiums - Example

**Withdrawals will reduce the cash value and the death benefit.**

**Premium For GVUL ****Insurance Coverage**

**$150,000 of Cash ****Value is Not ****Subject to Income Tax****—Withdrawals exceeding Basis will be subject to ordinary income tax**

*The above example is not  indicative of any particular investment. These examples do not reflect any charges. Earnings within your GVUL coverage generally can be withdrawn from your certificate without income tax, as long as the cash value in your certificate is less than the total premium paid into your certificate at the time of withdrawal, less any prior withdrawals, and provided that the contract is not a modified endowment contract.*

**Notes:**
OPTIONAL SLIDE *MUST INCLUDE SLIDE #13 WHEN PRESENTING SLIDE #12 
Now let’s look at a final example where the same employee decided to invest more money into their GVUL certificate.  Over the course of 25 years (in this example) the employee invested $100,000 into their GVUL certificate.  This amount combined with the premiums that were paid for life insurance coverage resulted in a total basis of $150,000.

At the end of 25 years their extra premium for investment and potential earnings totaled an available cash value of $250,000.  Of this $250,000 in available cash value that the employee could withdraw, for any reason, who can tell me how much could be withdrawn tax-free from this certificate? 

##    Tax-Advantage of GVUL Premiums - Example

*Upon surrender, lapse, or case termination, including those circumstances where termination of the Group GVUL contract results in termination of individual certificates/policies, loans become withdrawals and may become taxable to the certificate owner. The above example is not  indicative of any particular investment. These examples do not reflect any charges. Earnings within your GVUL coverage generally can be withdrawn from your certificate without income tax, as long as the cash value in your certificate is less than the total premium paid into your certificate at the time of withdrawal, less any prior withdrawals, and provided that the contract is not a modified endowment contract. Withdrawals will reduce the cash value and the death benefit of your certificate.*

**Age at Issue: 40****End of 25 Years****$500,000 Coverage ****$150,000  Basis**

**Premium For GVUL ****Insurance Coverage**

**Extra Premium**
**for Investment**
**Available ****Cash Value****$250,000**** **

**$150,000 Not Subject To Income Tax**

**Strategies for Remaining Cash Value Can Include:  **
** ****Loan Provisions**
** ****Payment of Future Premiums**

- Outstanding loan amounts do not participate in the investment experience of the variable investment options and can have a permanent effect on certificate values and benefits.

-    Tax-Advantage of GVUL Premiums - Example

**Notes:**
OPTIONAL SLIDE *MUST INCLUDE SLIDE #12 WHEN PRESENTING SLIDE #13
If you answered $150,000 you are correct.  But what about the rest?  There is still $100,000 of available cash value remaining in their GVUL certificate.  If they withdraw these funds, they would be subject to ordinary income tax at their current tax rate.  However, remember that GVUL offers flexibility. Let’s use this same example and see the flexibility within GVUL.    

We said that $150,000 can be withdrawn tax-free since it matches up with the $150,000 of basis.  Strategies for the remaining $100,000 can include loan provisions or plans to use this remaining cash value towards the payment of future life insurance premiums on a pre-tax basis.  Note, outstanding loan amounts do not participate in the investment experience of the variable investment options and can have a permanent effect on certificate values and benefits.

##    GVUL Summary

-  Enhanced Life Insurance Protection	- Portable coverage5
-  Tax-Advantaged Investment Opportunity	- No surrender charges or early withdrawal 		 	  penalties —withdrawals will reduce your cash value and death 	  benefit.	- Tax-free withdrawals up to basis9
-  Flexibility and Control   	- Access to cash value	- Ability to adjust coverage and/or change investment             decisions

- 9 In general, if the funding of your certificate exceeds certain limits, it will become a "modified endowment contract" (MEC) and become subject to "earnings first" taxation on withdrawals and loans. An additional 10% penalty for withdrawals and loans taken before age 591/2 will also generally apply.  We will notify you if a contribution would cause your certificate to become a MEC.

**Notes:**
At this point, let’s recap some of the special features within GVUL.   

 First, GVUL provides enhanced life insurance protection that you can   continue even if your employment situation changes or you retire. 

 GVUL also offers a tax-advantaged investment opportunity that you can   access for any reason with no surrender charges or early   withdrawal penalties, provided it’s a non-MEC contract.  
 Finally, this program offers you the flexibility and control change with   you as your needs change over time. 

##    Enrollment Deadline [DATE] 

- Determine Your Investment Plan
- Complete Enrollment at **www.metlife.com/mybenefits **   	- To ensure coverage effective **[DATE]**

**Enrollment Specialists ****(800) 846-0124**Monday – Friday • 8 a.m. – 5 p.m. (CT)

-    Enrollment Deadline **[DATE]**** **

**Notes:**
So, now the process continues.  A process we began by identifying and quantifying needs- both from a life insurance standpoint and an investment standpoint.  A process that continues as you determine to what degree you want to take care of those needs through GVUL.  
After you have made these determinations log onto [WEB ADDRESS].  For first time users you will be prompted to create a unique password.  For returning users log on using your user ID and password.  You will need to complete simple six step enrollment process by [DATE HERE] to ensure that your coverage will become effective on [DATE HERE]. 

##    Simple Enrollment Process 

- Investment Election
- Fund Allocation
- Other Elections
- Health Questions
- Review and Submit

-    Simple Enrollment Process** **

**Enrollment Specialists ****(800) 846-0124**Monday – Friday • 8 a.m. – 5 p.m. (CT)

**Notes:**
This simple enrollment process will cover your insurance election, your investment election, fund allocation —where to invest extra premiums if applicable, other elections such as your beneficiaries [,health questions] and finally a review and submission of your selections.  If you have any questions or need assistance in completing your on-line enrollment we have a dedicated staff of licensed professionals to help you. 

## Prospectuses for Group Variable Universal Life insurance must precede or accompany this material.  You should carefully consider the information in the prospectuses about the contract's features, risks, charges and expense, and the investment objectives, risks and policies of the underlying portfolios, as well as other information about the underlying funding choices.  Please read the prospectuses and consider this information carefully before investing.  Product availability and features may vary by state.  All product guarantees are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company.Group Variable Universal Life insurance has limitations. There is no guarantee that any of the variable options in this product will meet their stated goals or objectives.  The account value is subject to market fluctuations so that, when withdrawn, it may be worth more or less than its original value. 

*The information contained in this presentation is not intended to (and cannot) be used by anyone to avoid IRS penalties. This presentation supports the promotion and marketing of GVUL. You should seek advice based on your particular circumstances from an independent tax advisor. *
*Prospectuses for Group Variable Universal Life insurance must precede or accompany this material.  You should carefully consider the information in the prospectuses about the contract's features, risks, charges and expense, and the investment objectives, risks and policies of the underlying portfolios, as well as other information about the underlying funding choices.  Please read the prospectuses and consider this information carefully before investing.  Product availability and features may vary by state.  All product guarantees are subject to the financial strength and claims-paying ability of Metropolitan Life Insurance Company.**Group Variable Universal Life insurance has limitations. There is no guarantee that any of the variable options in this product will meet their stated goals or objectives.  The account value is subject to market fluctuations so that, when withdrawn, it may be worth more or less than its original value.** *

**Notes:**
I hope our discussion today was beneficial in helping you understand the opportunities available to you with GVUL.  As you consider GVUL more carefully, please reference the prospectuses.  They contain more information on the product including charges and expenses.  You should read the prospectuses carefully before investing. 

## A Key Component In A Comprehensive Financial Plan

**A Key Component In A Comprehensive Financial Plan**

*Group Variable Universal Life insurance is distributed by Metropolitan Life Insurance Company, 190 Carondelet Plaza, St. Louis, MO 63105. Policy Form No. 30037 and in NY Policy Form No. 3003731.*

**L0411FHE4(exp1106)PAR-LD**

**Notes:**
Thank you again for participating in our discussion today.  Are there any additional questions at this time?