For broker/dealer use only. Do not use with consumers.

Understanding Social SecurityA look at the bigger picture

CLBD.1040 (07.13)

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Why is Social Security Important?

• 96% of Americans are entitled to benefits*• Benefits can be more substantial than you

think

Sam, 66Life-long high wage earner

$2,533/month

Sue, 66Non-working

spouse$1,266/month

$45,588Per Year

$1,000,000

*Source: www.ssa.gov

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Talking to your clients about Social Security• Social Security is complex and presents

crucial financial decisions• You don’t have to be a Social Security

expert in order to identify options and potential pitfalls

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Filing for Benefits: Sooner vs. Later

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Sooner or later?

$7,000 difference per yearAdditional $210,000 of income over 30 years

Age 62

Age 66

Age 70

$750/month$9,000/year

$1,000/month$12,000/year

$1,320/month$15,840/year

-25% +32%

+76%

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What’s the Right Decision?

• Individual decision• Everyone’s situation is different• Prepare in advance to make this decision• Look at other income coming in• Will they still be working?

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Planning OpportunitiesReplacing lost income

Stayed a home with children

Life-long high wage earner

Pete’s Social Security Benefit

(monthly)

$2,500 +

Pam’s Spousal Benefit

Equals 50% of Pete’s

$1,250

=

Monthly combined Social Security Income

$3,750

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Planning OpportunitiesReplacing lost income

-

Pam’s survivor benefit

Equal to the greater of Pete’s benefit or her own

$2,500

=

Amount of income Pam needs to replace

$1,250

Monthly combined Social Security

income

$3,750

Ten years later, Pete passes away…

9

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Planning OpportunitiesReplacing lost income

Purchase a Protective Advantage Choice UL with Income Provider

OptionWith a $213,000 death

benefit, the Income Provider Option would

provide monthly payments for 20 years

following Pete’s death. 1

$1,250

Guaranteed Monthly Income

$3,750=

Pam’s survivor benefit

$2,500+

1Assumes a Protective Advantage Choice UL 66 year old male, standard non-tobacco rate class. Monthly IPO benefit of $1,250 for 20 years. All guarantees are subject to the claims-paying ability of Protective Life Insurance Company.

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For broker/dealer use only. Do not use with consumers.

With Understanding Social Security, you can:• Teach your clients how to identify and prepare

for key retirement decisions• Learn how to guide clients through these key

decisions• Educate clients about their options• Enhance client relationships• Help position yourself as the premier retirement

planning resource

11

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Implementing Understanding Social Security in Your Practice• Promote your services with a

direct mailer series• Educate clients with a

consumer seminar and brochure/workbook

• Help your clients assess their situation with support materials like the consumer brochure, client worksheets, and online calculators

12

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Social Security Explorer

13

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Getting started

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Important concepts

• Full retirement age, FRA• File and suspend• Restricted application

Year of Birth FRA

1943-1954 66

1955 66 and 2 months

1956 66 and 4 months

1957 66 and 6 months

1958 66 and 8 months

1959 66 and 10 months

1960 or later 67

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Step 1: Enter ages

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Step 2: Enter monthly benefits

17

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Step 3: Other variables

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Step 4: Client focus

19

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Step 5: Adjust life expectancies

20

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Step 6: Retirement age

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Step 6: Retirement age

22

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Step 7: Additional dropdowns

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Step 7: Additional dropdowns

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Step 8: Optional strategies

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Getting Started

• Request materials from your Protective Life representative.

• Schedule a seminar

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Important InformationProtective and Protective Life refer to Protective Life Insurance Company (PLICO) and its affiliates, including Protective Life & Annuity Insurance Company. Variable annuities are issued by Protective Life Insurance Company in all states except New York and in New York by Protective Life & Annuity Insurance Company (PLAICO). Securities offered by Investment Distributors, Inc. (IDI). IDI is the principal underwriter for registered products issued by PLICO and PLAICO, its affiliates. All three companies are located in Birmingham, AL. Product availability and features may vary by state. Each company is solely responsible for the financial obligations accruing under the products it issues. Product guarantees are backed by the financial strength and claims-paying ability of the issuing company.

Examples presented are hypothetical case studies and are not indicative of the performance of any specific Protective Life product. Results could be higher or lower.

This presentation represents only our current understanding of Social Security and Medicare in general and should not be considered legal or tax advice. Details of the Social Security and Medicare programs are subject to change at any time. Consumers should consult with their tax or legal advisor regarding their individual situations before making any legal or tax-related decisions. Visit www.ssa.gov for additional details.

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For broker/dealer use only. Do not use with consumers.

Important Information

Protective Advantage Choice UL (UL-21) is a universal life insurance policy issued by Protective Life Insurance Company, Birmingham, AL. Policy form numbers, product features and availability may vary by state. Consult policies for benefits, riders, limitations and exclusions. Subject to underwriting. Up to a two-year contestable and suicide period. Benefits adjusted for misstatements of age of sex. In Montana, unisex rates apply. All payments and all guarantees are subject to the claims-paying ability of Protective Life Insurance Company.

This is only a summary of Income Provider Option endorsement benefits. Actual terms and conditions contained in the product policy and the endorsement govern benefits provided. A portion of periodic payments may be reported as taxable income to the beneficiary. Consumers should consult their attorney or tax advisor regarding their individual situations. Please see the endorsement for more detailed information. May not be available in all states or on all currently-marketed UL products. State variations may apply. Income Provider Option (UL-E35) is issued by Protective Life Insurance Company, Birmingham, AL.