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IULFlexLife IULIndividual Insurance StrategiesProspect Profile #1:Prospects who are looking for death benefit protectionand the accumulation of cash value to assist withlifetime expenses such as education costs, and orsupplemental retirement income.The tax-deferred accumulation of cash value and taxfavored distributions make FlexLife an effective vehicleto build cash value in the simplest to most complexsituations. From a distribution perspective, FlexLifeperforms very well in the market and it offers strongdistribution options, including the Lifetime IncomeBenefit Rider. Couple this with the Tax-Free RetirementStrategy and you have a powerful story to tell yourclients!When death benefit is the focus, the AdditionalProtection Benefit Rider provides some flexibility inpremium cost while still maintaining a permanentproduct that offers potential cash value accumulation.Clients may also want to use their cash value to reducetheir premium payments during their retirement years.In order for clients to take complete advantageof FlexLife’s flexibility and the exciting planningopportunities it offers, they should be encouragedto pay more than the minimum premium (full pay/overfund). By doing so, they will have the potential forhigher cash values allowing them to make the most outof their policy, whether it be for: College expenses for children1 Tax-free retirement2For individuals making a large annual premiumpayment, the Systematic Allocation Rider providesthe opportunity to spread the premium over multiplecrediting periods. This rider also would make giftingto an IUL more attractive since most gifting includessingle sum premiums or large annual premiums. Lifetime Income, guaranteed, once the rider hasbeen exercised3 Premium flexibility during retirement1continued on next pageProducts issued byNational Life Insurance Company Life Insurance Company of the Southwest 1 Policy loans and withdrawals reduce the policy’s cash value and death benefit and may be a taxable event. Surrender charges may reduce thepolicy’s cash value in early years. It is possible that coverage will expire when either no premiums are paid following the initial premium, orsubsequent premiums are insufficient to continue coverage.2 The use of cash value life insurance to provide a tax-free resource for retirement assumes that there is first a need for the death benefit protection.There are options for removing values from the insurance contract that will not result in an immediate taxable event, but there is also a risk thatsubstantial tax ramifications could result upon contract lapse or surrender.3 The Lifetime Income Benefit Rider provides a benefit for the life of the insured if certain conditions are met, including but not limited to theinsured’s attained age being between age 60 and 85, and that the policy has been inforce at least 15 years. Insufficient policy values, outstandingpolicy loans and other considerations may also restrict exercising the rider. Exercising the rider and receiving an income benefit will reduce thepolicy’s cash value and death benefit and may terminate other riders or reduce their benefits. Guarantees are dependent upon the claims-payingability of the issuing company.National Life Group is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison,TX and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. LSW isnot an authorized insurer in New York and does not conduct insurance business in New York.Centralized Mailing Address: One National Life Drive, Montpelier, VT 05604 800-906-3310 www.NationalLifeGroup.com69485 MK11263(0911) TC63880(0911)For Agent Use Only – Not For Use With The Public

Business MarketEstate Planning StrategyProspect Profile #2:Prospect Profile #3Business owners who have a business partner or keyemployee. The Business owner may be interested inways to:Individuals in their retirement years who have hadsuccessful careers, built significant assets and areinterested in developing a strategy that will allow themto pass on their assets in the most tax-efficient way. Protect the business against the loss of the businesspartner or key employee Provide benefits to the business partner, keyemployee(s) Build retirement security for themselves Attract, retain and reward top talent Create a business transition planFlexLife may be the ideal solution for business ownerswho want to fund a buy-sell agreement, executivebonus plan, and non-qualified deferred compensationarrangements.Large estates can be exposed to significant settlementcosts whether through gift and estate taxes, probateexpenses or costs to administer the estate.FlexLife provides liquidity to help cover these costsand protect assets that may otherwise have to be soldin less than ideal conditions. Plus, clients have accessto Accelerated Benefits Riders4 in the event they arediagnosed with a terminal, chronic or critical illness.These living benefits will provide funds to help meetexpenses associated with the illness which in turnprotects their assets from possible expense erosionrelated to a long-term or terminal illness.The death benefit provides funds to support thebusiness during a loss of a key player or through atransition.By providing premium flexibility, upside cash valueaccumulation through the indexed strategies, andoptional benefits in the event of a long-term illness,FlexLife is ideal for business planning situations.4 Payment of Accelerated Benefits will reduce the policy’s cash value and death benefit, may be a taxable event and may affect eligibility for publicassistance programs.For Agent Use Only – Not For Use With The Public

IULIndexed Universal LifeInterest crediting strategiesInterest Crediting StrategiesFive Interest Crediting Strategies - One Fixed and fourIndexed based on the S&P500We offer five different interest crediting strategiesto provide maximum flexibility for your client. Thesestrategies are: Fixed Strategy – Fixed Interest Crediting Rate Index Strategy 1 – Point-to-Point, Cap Focus Index Strategy 2 – Point-to-Point, ParticipationRate Focus Index Strategy 3 – Point-to-Point, No Cap Index Strategy 4 – Point-to-Average1. The Fixed Term Strategy2. Point-to-Point, Cap Focus Index Strategy3. Point-to-Point, Participation Rate FocusIndex Strategy4. Point-to-Point, No Cap Index Strategy5. Point-to-Average Index StrategyInterest crediting methodologyNot all strategies may be available on all products.Basic StrategyFixed-Term StrategyAll premiums paid by the client are paid into the BasicStrategy and a rate of interest declared by the companyis credited to the account.Each transfer to the Fixed-Term strategy creates adistinct fixed-term segment. Each Fixed-Term Segmentwill have a crediting period of one year. A rate of interestdeclared by the company is credited to the accountdaily. At the end of each Fixed-Term Segment period,the funds will be transferred back to the Basic Strategy.The Basic Strategy must maintain a minimum value.This minimum value is determined at the start of eachpolicy year and is an estimate of the amount requiredto fund the monthly deductions for the policy year.This amount will change each policy year on the policyanniversary.continued on next pageOnce per month, on the 21st, any Basic Strategy valuein excess of the Basic Strategy minimum value willbe transferred to the other strategies based on theallocation specified by the policyholder.Products issued byNational Life Insurance Company Life Insurance Company of the Southwest Guarantees are dependent on the claims paying ability of the issuing company.“Standard & Poor’s ”, “S&P ”, “S&P 500 ”, “Standard & Poor’s 500”, and “500” are trademarks of The McGraw-Hill Companies, Inc. and have beenlicensed for use by National Life Insurance Company and Life Insurance Company of the Southwest. The product is not sponsored, endorsed, sold orpromoted by S&P and S&P makes no representation regarding the advisability of investing in the product.National Life Group is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison,TX and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. LSW isnot an authorized insurer in New York and does not conduct insurance business in New York.Centralized Mailing Address: One National Life Drive, Montpelier, VT 05604 800-906-3310 www.NationalLifeGroup.com69484 MK11212(0911) TC63329(0911)For Agent Use Only – Not For Use With The Public

Index StrategiesPoint-to-AverageEach transfer to an Index Strategy creates a distinctIndex Segment. Each Index Segment will have acrediting period of one year. Index earnings are creditedto each Index Segment at the end of the creditingperiod. Each Index Segment will have a ParticipationRate and a Cap, which is determined in advance foreach crediting period.The Point-to-Average method measures the change inIndex value from the Starting Index Value to the DailyAverage of the Index over the next 12 month period. Thedifference between the Daily Average of the Index andthe Starting Index Value is divided by the Starting IndexValue to determine the Index Growth.The Index for the strategies will be the S&P 500. Oneach anniversary of an Index Segment, the IndexGrowth for that segment will be calculated as a functionof the Index changes over the crediting period. Interestearnings for each Index Segment are calculated at theend of the crediting period of such segment as follows:1. Index Growth multiplied by the segment’sParticipation Rate, adjusted so that the rate is nogreater than the segment’s Cap, and no less than 0%;multiplied by2. The value in the applicable Index Segment.There are three Point-to-Point Index Strategies and aPoint-to-Average Index Strategy.Point-to-PointThe Index Growth is then multiplied by the ParticipationRate (the resulting value will never be less than zero).There is no Cap for this strategy.ExampleLet’s assume an Index Segment has a Participation Rateof 110%. If the Index Growth, comparing the StartingIndex Value to the Average Daily Value of the Index, is10%, that Index Segment would be credited 11% (10%increase times 110% Participation Rate and no Cap).Available Index StrategiesPoint-to-Point, Cap Focus Index StrategyThe Cap Focus Index Strategy guarantees that theParticipation Rate will always be greater than or equalto 100%. This strategy will always provide a higherCap than the Participation Rate focused strategy. Theguaranteed minimum Cap is 3.1%.The Point-to-Point method measures the change inthe index value from the start of the segment (StartingIndex Value) to the value of the Index 12 months later(Ending Index Value). The change in the index value isdivided by the Starting Index Value to determine theIndex Growth.Point-to-Point, Participation Rate Focus Index StrategyThe Participation Rate Focus Index Strategy guaranteesthat the Participation Rate will be at least 110%.Since this strategy is designed to provide a higherParticipation Rate, it will have a lower Cap. Theguaranteed minimum Cap is 3.0%.The Index Growth is then multiplied by the ParticipationRate (the resulting value will never be less than zero).The Participation Rate is the rate that the policy holdershares in the Index Growth. Once the Participation Rateis applied to the Index Growth, the result is comparedto the Cap. In no instance will the earnings for thesegment exceed the Cap.Point-to-Point, No Cap Index StrategyThe No Cap Index Strategy applies no Cap and is,therefore, balanced by a lower Participation Rate. Theguaranteed minimum Participation Rate is 25%.ExampleLet’s assume an Index Segment has a ParticipationRate of 100% and a Cap of 12%. If the Index Growth is10%, the Index Segment would be credited 10% (10%increase times 100% Participation Rate falls below the12% Cap).Point-to-Average Index StrategyThe Point-to-Average Index Strategy is guaranteed tohave no Cap. The guaranteed minimum ParticipationRate is 30%.For Agent Use Only – Not For Use With The Publiccontinued on next page2

Indexed Interest Crediting Glossary of TermsBasic StrategyThe account where all premiums are initially paid.Charges are taken from the Basic Strategy. If value inthe Basic Strategy is not enough to cover the charges,charges will be taken from the Fixed-Term Strategy andthe Index Strategies.Basic Strategy Sweep DateThe 21st of the month. This is the date that funds in theBasic Strategy, in excess of the minimum value, will beallocated to the chosen interest crediting strategies.CapThe maximum annual effective interest rate than can becredited to an Index Segment.Daily Average of the IndexThe arithmetic average of all the published daily endingvalues of the Index for a 12 month period.Point-to-AverageCompares the Starting Index Value of an Index Segmentto the Daily Average of the Index Segment to determinethe Index Growth.Point-to-PointCompares the Starting Value of an Index Segmentto the Ending Value of that same Index Segment todetermine the Index Growth.Policy Segment YearThe 12-month periods, beginning when an IndexSegment is created, used to determine the IndexedInterest earned on the value of the Index Segment.Starting Index ValueThe value of the Index at the end of the day an IndexSegment begins.Ending Index ValueThe value of the Index at the end of the day an IndexSegment ends.Fixed-Term StrategyA rate of interest declared by the company will becredited to this account daily.Guaranteed Interest RateThis is the predetermined minimum rate ofinterest earned.IndexThe Index used for National Life and Life InsuranceCompany of the Southwest is the S&P 500 Index.Index SegmentEach time premiums are transferred from the BasicStrategy to an Index Strategy a new Index Segmentis created.Indexed InterestThe interest credited to an Index Segment using eitherthe Point-to-Point or Point-to-Average strategy.Participation RateThe percentage applied to the Index Growth used inthe formula to calculate the Indexed Interest for anIndex Segment.For Agent Use Only – Not For Use With The Public3

IULFlexLife IULDeath Benefit OptionsComparisonBoth Option A and Option B Death Benefits areavailable.Death Benefit Option AThe death benefit will be paid in a lump sum unless asettlement option is elected. If the death benefit is paidin a lump sum, it will be increased with interest fromthe date of the insured’s death to the date of payment.The rate of interest will be declared periodically bythe company, but not less than 2.5% per year or asmandated by law.The policyholder may elect an Option A (level) orOption B (increasing) death benefit option.Option A: Under Option A, the death benefit is equal tothe greater of1. the face amount; or2. the accumulated value multiplied by the applicablecorridor factorOption B: The death benefit is equal to the greater of1. the face amount plus the accumulated value; or2. the accumulated value multiplied by thecorridor factorThe death benefit remains level and generally allows forthe maximum potential growth in the accumulated value.Death Benefit Option BThe death benefit equals the initial amount of coverageplus the accumulated value. The death benefit will varybased on the growth or decline in the accumulatedvalue. This option is for clients who want additional lifeinsurance protection. Also, Option B generally allowsfor more premium for those clients wishing to overfund their policies.Change in Death Benefit OptionThe policy’s death benefit option can be changed fromOption A to Option B, or B to A, once each policy yearafter the first policy anniversary. If a change would causea policy to no longer qualify as life insurance for federalincome tax purposes, the change will not be allowed.Change from Option A (Level) toOption B (Increasing)The face amount of the policy will be reduced by theaccumulated value just prior to the effective date ofthe change.Change from Option B (Increasing) toOption A (Level)The face amount will increase by an amount equal tothe accumulated value just prior to the effective date ofthe change.In both cases listed above, the death benefit is thesame before and after the change.Products issued byNational Life Insurance Company Life Insurance Company of the Southwest National Life Group is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest (LSW), Addison,TX and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. LSW isnot an authorized insurer in New York and does not conduct insurance business in New York.Centralized Mailing Address: One National Life Drive, Montpelier, VT 05604 800-906-3310 www.NationalLifeGroup.com69480 MK11258(0911) TC63299(0911)For Agent Use Only – Not For Use With The Public

Change in Face AmountsAfter the first policy anniversary the policy holder mayapply for an increase or decrease in coverage subject tothe following terms:Increase in Face Amount: Satisfactory proof of insurability. The requested increase meets or exceeds theminimum increase amount of 25,000. Each increase will have its own surrender chargesand monthly per thousand of face amountadministration charges.Decrease in Face Amount: Decreases which would reduce the face amount ofthe policy below the minimum face amount will notbe permitted. During the first nine policy years, the total faceamount of the policy, plus any additional protectionbenefit riders, may be no less than 75% of thelargest total face amount in force at any time in the12 months prior to the request. Decreases do not affect the level of surrendercharges or administrative charges. A decrease will not be permitted if it causes thepolicy to fail the definition of life insurance test.Each change in coverage will cause the CommissionableTarget Premium (CTP) and Minimum MonthlyPremium (MMP) to be adjusted.For Agent Use Only – Not For Use With The Public

IULFlexLife IULLoans, Withdrawals and 1035 ExchangesLoansLoans are available at any time after the first policy year.The policy will serve as the sole collateral for the loan.The amount available for a loan on any day will be the loanvalue of the policy minus the amount of any debt securedby the policy. The loan value is equal to the accumulatedvalue on the valuation date, less the surrender chargeon the valuation date, less three times the monthlydeductions due on the last monthly policy date.The interest rate charged on the loan will be a variablerate based on Moody’s Corporate Bond Yield Average –Monthly Corporates, subj

Indexed Universal LIfe Insurance Product Guide National Life Insurance Company Life Insurance Company of the Southwest FlexLife Indexed Universal Life Insurance, form series 8971/8972(0911), ICC11-8971/8972(0911), and associated riders are underwritten by National Life Insurance Company, Montpelier, VT.