Gary 250k Egul

Prepared for Flexible Premium Adjustable Universal LifeGary R. Scherr Essential Guaranteed Universal Life

11943 Presented by: Robert Elmore February 28, 2011

LIFE INSURANCE FOR YOUR CHANGING NEEDS

Life insurance can provide valuable benefits to your beneficiaries in the event of your untimely death. But are you confident that your life insurance needs will be exactly the same in the future as they are today? Will death-benefit protection be your primary concern if you are no longer able to care for yourself? With Midland National, your policy provides additional benefits that, at no additional premium, are designed to provide you with the flexibility to help meet your changing needs.

The following values are based on the non-guaranteed values of the Basic Life Insurance Illustration and are provided to demonstrate the benefits that may be available to you. As you consider these approaches, please be aware that utilizing any of these benefits would reduce the values projected in the Basic Life Insurance Illustration from the point of election going forward.

Death Benefit The policy provides financial protection for your beneficiary in the event of your death. The generally tax-free Death Benefit can be used for many financial needs such as final expenses, debt repayment and estate taxes.

Projected Death Benefit at age 80 $250,000 1

Cash-Value Accumulation This policy is designed for death benefit protection rather than cash value accumulation. Taking a loan2 or withdrawal2 may jeopardize your death benefit guarantee.

Projected Account Value at age 80 $0 1

Accelerated Benefit Riders

These riders are automatically included on your Policy at no additional premium; however, there is an administrative fee when benefits are elected. They offer you the flexibility to access a portion of your Death Benefit should you develop a covered chronic or terminal illness. The Death Benefit your beneficiaries receive will be reduced by the amount accelerated.

ABR-C (Chronic Illness) - If you become chronically ill (unable to perform at least two activities of daily living 3 or suffering from severe cognitive impairment 4), the ABR-C will allow you to advance a portion of your Death Benefit as frequently as monthly. You can use the benefit in any way that you wish, such as helping to pay for a nursing home or home health care assistance. The maximum amount available to advance at age 80 is $5,000 per month 1, however since this benefit is paid prior to death, the payment you receive will be discounted.

Projected Maximum Payment under ABR-C at age 80 $3,979 per month 1

ABR-T (Terminal Illness) - If you become terminally ill (life expectancy of 24 months or less), the ABR-T will allow you to advance a portion of your Death Benefit as a lump sum. The maximum amount available to advance at age 80 is $125,000 1, however since this benefit is paid prior to death, the payment you receive will be discounted.

Projected Maximum Payment under ABR-T at age 80 $108,979 1

Each of the benefit amounts shown assumes that none of the other benefits described above has been elected or received. See the specific conditions and limitations described in each of the Rider forms.

1All the numeric values on these pages are derived from projected policy values using current assumptions – in regard to policy charges, cost of insurance rates, interest rates and are subject to change. (Maximum payments of Accelerated Benefits are calculated using a 7% interest rate.) These assumptions are not guaranteed. On a guaranteed basis, the amount of the benefits described may be significantly reduced. If the policy is a term conversion and the term policy is more than five years old, coverage under ABR-C requires an Application for Policy Conversion, Change or Reinstatement.

Prepared for Flexible Premium Adjustable Universal LifeGary R. Scherr Essential Guaranteed Universal Life

11943 Presented by: Robert Elmore February 28, 2011

2Policy loans from life insurance policies generally are not subject to income tax. If the contract is a Modified Endowment Contract, a policy loan or withdrawal may be taxable upon receipt. Also, in the early years of a universal life policy, a percentage of any amount withdrawn may be subject to federal income tax. A policy loan or withdrawal will reduce the policy’s ultimate death benefit and cash value. Consult with and rely on your tax advisor or attorney for advice on your specific situation. Midland National does not give tax or legal advice.

3Activities of daily living: bathing, continence, dressing, eating, toileting, or transferring.

4Severe cognitive impairment: requires substantial supervision by another person to protect oneself from threats to health and safety.

Essential Guaranteed Universal Life is issued on policy form series L138, Accelerated Benefit Rider-Chronic Illness is issued on rider form series TR137A, and Accelerated Benefit Rider-Terminal Illness is issued on rider form series TR138A by Midland National Life Insurance Company, Sioux Falls, SD 57193. Products, features, issue ages, endorsements or riders may not be available in all jurisdictions. Limitations or restrictions may apply.

This Basic Illustration Is Not A Policy Contractand is not valid unless all pages are included

SIL138 Software Version 15.5 February 28, 2011 Page ## of ##

February 28, 2011

A Life Insurance Policy IllustrationSoftware Version 15.5

Flexible Premium Adjustable Universal Life

Essential Guaranteed Universal LifePolicy Form Number: L138 Series

Issue State: Illinois

prepared for

Gary R. Scherr

presented by

Robert Elmore1947 Lago Vista Blvd

Palm Harbor, FL 34685Bus# (727)781-1602Fax# (727)432-9331

[email protected]

For purposes of this illustration, ‘Policy’ and ‘Policy Owner’ when used herein also applies to ‘Certificate’ and ‘Certificate Holder’, respectively, whencoverage is issued on a group basis.

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Midland National Life Insurance CompanyLife Insurance Policy Illustration

Prepared for Flexible Premium Adjustable Universal LifeGary R. Scherr Essential Guaranteed Universal LifeAge 50



Policy Explanation

Universal Life Insurance The life insurance policy you are considering allows flexible premium payments to age 100. The death benefit is adjustable and ultimately depends on the cash value in the policy. The account value is based on the amount of your premium payments, monthly policy charges, and monthly interest credited to the policy. Interest rates and policy charges are subject to change. The current interest rate at issue is guaranteed for the first policy year and thereafter is guaranteed to never go below 2.50%. Policy charges are guaranteed not to exceed the maximums listed in the policy. The non-guaranteed elements of this policy are described in the following pages.

Premium Class Male Preferred Plus

The premium and policy charges calculated for this illustration are for the Premium Class listed at the left. Actual amounts will depend on the outcome of the underwriting process, and may vary from what is shown on this illustration.

Initial Specified Amount $250,000

The death benefit at policy issue is the Initial Specified Amount shown on the left. The actual amount payable at death may be decreased by Loans or Withdrawals, or increased by additional insurance benefits and/or provisions. The insurance policy will specify how to determine the benefit.

Initial Death Benefit Option: Level

The policy provides an option for either a level or increasing death benefit. Under the level death benefit option, the death benefit is the Specified Amount. Under the increasing death benefit option, the death benefit is the Specified Amount plus the Account Value. In the numeric detail section of this illustration, the level option is indicated by Opt 1; increasing by Opt 2.

First Year Planned Premium Outlay $2,450.20

The planned premiums are shown in the yearly detail of this illustration. Be sure to note when coverage would cease based on guaranteed or non-guaranteed assumptions. This amount includes a conversion credit of $295.00.

Initial Planned Monthly Premium $179.60

This is the premium billing frequency and billable premium amount requested.

5 Year No Lapse Guarantee Minimum Premium (Annual) $1,684.56

Your policy will stay in effect during the first 5 years if you pay at least the Minimum Premium as required and you have not made any policy Loans or Withdrawals or increased any policy benefits. The Minimum Premium may not provide coverage beyond the first 5 years.

Extended No Lapse Guarantee

After the 5 Year No Lapse Guarantee Period, the Extended No Lapse Guarantee extends the policy’s guaranteed death benefit for any length up to age 120. The guarantee will vary depending on the amount and timing of premium payments. The charges associated with this benefit are defined in the policy. You have chosen to guarantee the death benefit to age 120 by paying the illustrated premium on the applicable due date. Changes in your premium pattern or other policy changes such as loans, withdrawals and death benefit changes may affect the length of the extended no lapse guarantee.

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Maximum Level Annual Premium $7,104.77

By paying the Maximum Level Annual Premium to age 100, your policy would have the greatest values and long term benefit. This premium changes if you change any policy benefits. Paying this premium may cause your policy to become a Modified Endowment Contract. Refer to the definition of 7-Pay Premium.

Maximum Single Premium $81,281.67

This is the maximum amount that can be paid into the policy on a single payment basis. (Additional premiums can be paid in the year that this amount is exceeded by the sum of the Maximum Level Annual Premiums.) These maximum premiums are based on the Federal Guideline Premium limits. Paying this premium may cause your policy to become a Modified Endowment Contract. Refer to the definition of 7-Pay Premium. Paying this premium does not guarantee the policy will reach Maturity.

7-Pay Premium$13,816.41

Exceeding this annual premium in any of the first seven years of the contract, on an accumulated basis, may result in future Loans and Withdrawals being taxed like annuities. This option is left to the policy holder. After seven years, this amount can be exceeded without affecting the tax status of Loans or Withdrawals. Exceeding this amount during the first seven years does not affect any other policy features. Changing policy benefits after seven years may cause your policy to again be subject to the 7-Pay Premium rules. In all cases, the death benefit will be received income tax free based on the current IRS codes. Contact your financial planner for details.

Account Value The Account Value is the accumulation of net premiums paid, plus interest credited, minus policy charges. Policy charges are deducted regardless of premium amount or frequency. Different portions of the Account Value may earn different interest rates. The Account Value is affected by any Loans or Withdrawals.

Surrender Charge The Surrender Charge is the amount deducted from the Account Value upon surrender of the policy during the early years. The Surrender Charge amount is described in the insurance policy.

Net Cash Surrender Value

The Net Cash Surrender Value is the amount available to you upon surrender of the policy. The Net Cash Surrender Value is the Account Value (reduced by outstanding loans) minus the Surrender Charge, if any.

Non-Guaranteed Elements of the Policy

Many aspects of your life insurance contract will be guaranteed, including your minimum interest and maximum charges. However, the current interest rate credited may exceed the guaranteed rate and current monthly charges may be less than the maximum charges. As a result, these non-guaranteed elements may improve the value of your life insurance policy.

The following pages provide snapshots of your policy assuming higher interest and lower charges than those that are guaranteed. Since these elements cannot be predicted, a range of results is illustrated. This illustration assumes that the currently illustrated, non-guaranteed elements used will not change for all years shown. That is not likely to occur and actual results may be more or less favorable than those shown. Variations in these non-guaranteed elements could affect:• Death Benefits• Cash Values, or• The amount available for Loans or Withdrawals.

Maturity The Maturity date is age 120 of the insured. If the insured is living at Maturity and the policy is in effect, you may ask us to extend the Maturity date indefinitely as allowed by law. There are no charges, deductions, or premiums beyond age 100.

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Loans and Withdrawals The amount available for loan equals the Net Cash Surrender Value less the loan interest that will accumulate on the next Policy Anniversary. During the first 10 years, the interest charged on loans is currently 4.00% (guaranteed not to exceed 6.00%), and the interest credited on these loans is guaranteed at 2.50% for a current net rate of 1.50%. After 10 policy years, contractually guaranteed Net Zero Cost Loans (loans charged and credited at the same rate for a net zero cost) are available on the full loan amount.

Partial withdrawals are available for up to 90% of the Net Cash Surrender Value starting in year 2 (50% in year 1). A withdrawal charge will be deducted from the Account Value, if any Surrender Charges remain at the time of the withdrawal. The first withdrawal in any one policy year is available without a processing fee; a $25 processing fee applies to the second and subsequent withdrawals in each policy year.

Access to the Account Value through Loans and Withdrawals will reduce the policy's ultimate death benefit and Net Cash Surrender Value.

Exchange Privilege During the Exchange Period (through the insured’s attained age 75), you may exchange this policy or a portion of it, without evidence of insurability, to an individual permanent life insurance policy available at that time for exchange from this plan. This policy must be in effect and not have an outstanding loan at the time of exchange. For a partial exchange, policy minimums for both policies still apply. See policy form for details.

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Riders Selected This illustration includes the following rider(s). A general description of each selected rider follows. Details concerning each rider are shown in the Rider Detail portion of this illustration. Costs associated with the selected rider(s) are reflected in the policy values.

Accelerated Benefit Rider (ABR) - Accelerates the death benefit if the Primary Insured suffers from a qualifying illness. (Form Series TR137A and TR138A)

Rider Detail

Accelerated Benefit Rider (ABR) allows the policy owner to receive an advance sum from the policy if the base insured suffers from a qualifying illness. The policy owner specifies the amount to accelerate up to the maximum allowed. There is no premium or charge for this rider; however, there is an administrative fee when benefits are elected. Since this benefit is paid prior to death, the payment received will be discounted from the amount accelerated. An election to accelerate benefits will reduce the remaining death benefit and account values in the policy. If the policy has a loan balance, a portion of the payment will be used to reduce the policy debt.

Amounts payable as accelerated benefits could be taxable under some circumstances. We recommend that you consult your personal tax advisor prior to electing an accelerated benefit under this rider to assess the tax treatment in your individual circumstances.

ABR - Chronic Illness (ABR-C): The insured qualifies as chronically ill if a physician has certified that the insured is permanently unable to perform, for at least 90 consecutive days, without substantial assistance from another person, at least two Activities of Daily Living or suffers from severe cognitive impairment. (Activities of Daily Living include bathing, continence, dressing, eating, toileting or transferring.) The maximum Accelerated Death Benefit per year is 24% of the Death Benefit on the initial Election Date or $240,000, if smaller. Payments can be received as a lump sum, semi-annually, quarterly or monthly. If the policy is a term conversion and the term policy is more than five years old, coverage under ABR-C requires an Application for Policy Conversion, Change or Reinstatement. ABR-C is issued on rider form series TR137A.

ABR - Terminal Illness (ABR-T): The insured qualifies as terminally ill if a physician has certified that the insured’s life expectancy is 24 months or less. The maximum Accelerated Death Benefit is 50% of the Death Benefit on the Election Date or $500,000, if smaller. ABR-T is issued on rider form series TR138A.

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Premium Class: Male, Preferred PlusInterest and Cost Scenarios:

Guaranteed: 3.50% year 1, 2.50% thereafter, Maximum chargesIllustrated: 3.50% interest rate, Current charges (The current rate is 3.50%)

Non-guaranteed benefits and values are subject to change and may be more or less favorable than shown. This illustration assumes premiums are paid on the Monthly due date. Values and benefits are as of the end of the policy year and will vary depending upon the amount and timing of the premium payments.



Guaranteed Non-Guaranteed IllustratedEnd of Yr Age Opt

AnnualizedPremium

Outlay Type*Account

Value

Net CashSurrender

Value Death Benefit Account Value

Net CashSurrender

Value Death Benefit1 51 1 2,450.20 PE 310 0 250,000 767 0 250,0002 52 1 2,155.20 P 324 0 250,000 1,288 0 250,0003 53 1 2,155.20 P 247 0 250,000 1,737 0 250,0004 54 1 2,155.20 P 76 0 250,000 2,143 0 250,0005 55 1 2,155.20 P 0 0 250,000 2,503 0 250,0006 56 1 2,155.20 P 0 0 250,000 2,816 0 250,0007 57 1 2,155.20 P 0 0 250,000 3,050 0 250,0008 58 1 2,155.20 P 0 0 250,000 3,203 0 250,0009 59 1 2,155.20 P 0 0 250,000 3,332 0 250,00010 60 1 2,155.20 P 0 0 250,000 3,405 0 250,000

21,847.00 PE

11 61 1 2,155.20 P 0 0 250,000 3,451 0 250,00012 62 1 2,155.20 P 0 0 250,000 3,439 0 250,00013 63 1 2,155.20 P 0 0 250,000 3,426 0 250,00014 64 1 2,155.20 P 0 0 250,000 3,293 0 250,00015 65 1 2,155.20 P 0 0 250,000 3,063 0 250,00016 66 1 2,155.20 P 0 0 250,000 2,734 0 250,00017 67 1 2,155.20 P 0 0 250,000 2,330 0 250,00018 68 1 2,155.20 P 0 0 250,000 1,850 0 250,00019 69 1 2,155.20 P 0 0 250,000 1,168 0 250,00020 70 1 2,155.20 P 0 0 250,000 213 0 250,000

43,399.00 PE

21 71 1 2,155.20 P 0 0 250,000 0 0 250,00022 72 1 2,155.20 P 0 0 250,000 0 0 250,00023 73 1 2,155.20 P 0 0 250,000 0 0 250,00024 74 1 2,155.20 P 0 0 250,000 0 0 250,00025 75 1 2,155.20 P 0 0 250,000 0 0 250,00026 76 1 2,155.20 P 0 0 250,000 0 0 250,00027 77 1 2,155.20 P 0 0 250,000 0 0 250,00028 78 1 2,155.20 P 0 0 250,000 0 0 250,00029 79 1 2,155.20 P 0 0 250,000 0 0 250,00030 80 1 2,155.20 P 0 0 250,000 0 0 250,000

64,951.00 PE

31 81 1 2,155.20 P 0 0 250,000 0 0 250,00032 82 1 2,155.20 P 0 0 250,000 0 0 250,00033 83 1 2,155.20 P 0 0 250,000 0 0 250,00034 84 1 2,155.20 P 0 0 250,000 0 0 250,000

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Premium Class: Male, Preferred PlusInterest and Cost Scenarios:

Guaranteed: 3.50% year 1, 2.50% thereafter, Maximum chargesIllustrated: 3.50% interest rate, Current charges (The current rate is 3.50%)

Non-guaranteed benefits and values are subject to change and may be more or less favorable than shown. This illustration assumes premiums are paid on the Monthly due date. Values and benefits are as of the end of the policy year and will vary depending upon the amount and timing of the premium payments.

Guaranteed Non-Guaranteed IllustratedEnd of Yr Age Opt

AnnualizedPremium

Outlay Type*Account

Value

Net CashSurrender

Value Death Benefit Account Value

Net CashSurrender

Value Death Benefit



35 85 1 2,155.20 P 0 0 250,000 0 0 250,00036 86 1 2,155.20 P 0 0 250,000 0 0 250,00037 87 1 2,155.20 P 0 0 250,000 0 0 250,00038 88 1 2,155.20 P 0 0 250,000 0 0 250,00039 89 1 2,155.20 P 0 0 250,000 0 0 250,00040 90 1 2,155.20 P 0 0 250,000 0 0 250,000

86,503.00 PE

41 91 1 2,155.20 P 0 0 250,000 0 0 250,00042 92 1 2,155.20 P 0 0 250,000 0 0 250,00043 93 1 2,155.20 P 0 0 250,000 0 0 250,00044 94 1 2,155.20 P 0 0 250,000 0 0 250,00045 95 1 2,155.20 P 0 0 250,000 0 0 250,00046 96 1 2,155.20 P 0 0 250,000 0 0 250,00047 97 1 2,155.20 P 0 0 250,000 0 0 250,00048 98 1 2,155.20 P 0 0 250,000 0 0 250,00049 99 1 2,155.20 P 0 0 250,000 0 0 250,00050 100 1 2,155.20 P 0 0 250,000 0 0 250,000

108,055.00 PE

At age 100, we will no longer accept any premiums and there will be no further charges or deductions.

51 101 1 0.00 0 0 250,000 0 0 250,00055 105 1 0.00 0 0 250,000 0 0 250,00060 110 1 0.00 0 0 250,000 0 0 250,00065 115 1 0.00 0 0 250,000 0 0 250,00070 120 1 0.00 0 0 250,000 0 0 250,000

Amounts shown in the Outlay column are annualized, but are illustrated based on the following frequency:*P = Premium (Monthly)E = Extra Premium

2262/TP

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Policy Summary

Premium Class: Male, Preferred PlusFirst Year Planned Premium Outlay: $2,450.20Interest and Cost Scenarios:

Guaranteed: 3.50% year 1, 2.50% thereafter, Maximum chargesMidpoint: Interest and charges half way between illustrated & guaranteedIllustrated: 3.50% interest rate, Current charges (The current rate is 3.50%)

Non-guaranteed benefits and values are subject to change and may be more or less favorable than shown.

GuaranteedValues

Non-GuaranteedMidpoint Values

Non-GuaranteedIllustrated Values

Year 5Cash Value 0 0 0Death Benefit 250,000 250,000 250,000



Age 70Cash Value 0 0 0Death Benefit 250,000 250,000 250,000

Last Policy Year a Death Benefit is Supported* 70 70 70

I have received a copy of the illustration and understand that this illustration assumes that the currently illustrated non-guaranteed elements will continue unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable than those shown.

Policy Owner/Applicant Signature Date

I have informed the applicant or policyowner that his illustration assumes that the currently illustrated non-guaranteed elements will continue unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable than those shown.

Agent Signature Code Date

*Unless the Extended Maturity Option is available and exercised.

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Gary 250k Egul

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