Agents offering, marketing, or selling accelerated death benefits for chronic illness in California must be able to describe the differences between benefits provided under an accelerated death benefit for chronic illness and benefits provided under long-term care insurance to clients. You must provide clients with the ADBE Consumer Brochure for California that includes this comparison. Comparison is for solicitation purpose only, not for conversions.

1. Subject to premium payment requirements.

2. For UL products and the fixed account on Indexed UL products, the interest bonus is conditionally guaranteed and may be earned when we declare a current interest rate that exceeds the guaranteed interest rate. Interest Bonus percentages are not guaranteed and subject to change; however, once a policy is issued, the percentage will not change. In Texas, interest bonuses are available on Indexed UL products only.

3. Net Zero Cost Loans are loans charged and credited at the same interest rate percentage for a net zero cost.  The policy year and amount available vary by product.  Please refer to the specific product marketing guide or contact the marketing department for details. 

4. Some living benefits cannot be elected simultaneously. If the overloan protection benefit is elected, the accelerated death benefits and the protected death benefit cannot be elected. If Policy has a Premium Guarantee Rider attached to it, such rider will be terminated upon the election of the Protected Death Benefit.  

5. Subject to eligibility requirements. The death benefit will be reduced by the amount of the death benefit accelerated. Since benefits are paid prior to death, a discount will be applied to the death benefit accelerated. As a result, the actual amount received will be less than the amount of the death benefit accelerated. An administrative fee applies to each terminal and chronic election. There is no administrative fee for critical illness. 

6. In some situations loans and withdrawals may be subject to federal taxes. Midland National does not give tax or legal advice. Clients should be instructed to consult with and rely on their own tax advisor or attorney for advice on their specific situation. Income and growth on accumulated cash values is generally taxable only upon withdrawal. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to surrender charges and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year

7.  The net cost of a variable interest rate loan could be negative if the credits earned are greater than the interest charged. The net cost of the loan could also be larger than under standard policy loans if the amount credited is less than the interest charged. In the extreme example, the amount credited could be zero and the net cost of the loan would equal the maximum interest rate charged on variable interest loans. In brief, Variable Interest Rate Loans have more uncertainty than Standard Policy Loans in both the interest rate charged and the interest rate credited.

8. The tax-deferred feature of the indexed universal life policy is not necessary for a tax-qualified plan. In such instances, your client should consider whether other features, such as the death benefit and optional riders make the policy appropriate for your client's needs. Before purchasing this policy, your client should obtain competent tax advice both as to the tax treatment of the policy and the suitability of the product.

9. Allows policy owner the right to exchange policy, without evidence of insurability and surrender charges, to one of our cash value accumulation universal life policies available at the time of exchange.  The Cash Surrender Value on the new policy may not be greater than the Cash Surrender Value on the policy being exchanged.  Not available for policy ages 76 and above or if there is an outstanding policy loan.

10. Subject to conversion requirements. Partial conversions receive a prorated credit. Conversion Credit applies to the Base Plan only. It does not apply to other Term riders. 100% of base premiums can be recaptured in the first five years by applying them to conversion, and a percentage of these five-year premiums is applied on conversion in years six through eight.

11. Premiums are guaranteed to remain level for the initial 10, 15, 20, or 30 year period. After the premium guarantee period, premiums will increase annually but will never exceed the Guaranteed Annual Renewal Premium.

12. Allowed during level premium period of policy, or policy age 75 (whichever is earlier) (Age 70 for 30 year) but never less than five years. 

13. Available for an additional charge per $1,000 of face amount per month, depending on issue age and underwriting class. Surrender charges will be waived upon a full surrender or partial surrender. Surrender charges will not be waived if the policy is surrendered under a 1035 Exchange (except in Florida). A decrease charge will be assessed if a reduction in the policy face amount is requested during the Waiver of Surrender Charge Period.  However for XL-EC4/5, if a partial withdrawal results in a reduction of the face amount, the withdrawal charge is waived.

14. When a person applies for life insurance coverage, his or her health is evaluated and a corresponding underwriting rating is applied. This product’s table shaving features allow certain substandard underwriting rates (known as “table ratings”) to be improved to a “standard” rating. A “standard” rating generally indicates average health and involves a lower life insurance premium than do substandard ratings.

15.Guaranteed convertible to an individual permanent life insurance policy then available from Midland National for Conversion, subject to the terms of the policy.

16. Conditionally Guaranteed Interest Bonus for UL-CV & UL-DB - If we are crediting interest in excess of the guaranteed interest rate and your client's policy is in effect after the 10th policy anniversary, your client's policy will receive an Interest Bonus. The Interest Bonus is 1.0% above the then current interest rate in years 11-20, increasing to 1.15% in years 21 and thereafter.  The Interest Bonus percentages are not guaranteed and subject to change; however, once a policy is issued, the percentage will not change. Not available in Texas.

Legacy Guaranteed SIUL -If we are crediting interest in excess of the guaranteed interest rate and your client's policy is in effect after the 10th policy anniversary, your client's policy will receive an Interest Bonus. The Interest Bonus is 0.50% above the then current interest rate in years 11-20, increasing to 0.75 % in years 21 and thereafter. 

17.  For XL-EC4/5 - If we are crediting interest in excess of the guaranteed interest rate and your client’s policy is in effect after the 15th policy anniversary, your client’s policy will receive an Interest Bonus. The Interest Bonus is 0.75% above the then current interest rate in years 16 and thereafter. The Interest Bonus percentages are not guaranteed and subject to change; however, once a policy is issued, the percentage will not change.

18. Although XL Heritage is filed as a Flexible Premium Universal Life and allows additional premiums, the product is designed for a single premium payment. There are limited benefits to adding premiums after policy issue - for example, the Account Value will increase with additional premium payments, but the guaranteed death benefit and the Return of Premium Value will NOT. Therefore, clients should carefully consider whether additional premiums should be paid.

19. Neither Midland National nor its agents give tax or legal advice. Please advise your clients to consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.

20. Coverage is subject to health questions and pharmaceutical check.

21. Penalty free withdrawals for amounts up to 10% of the Account Value beginning in policy year 2. Only one withdrawal per year is permitted. Withdrawals in excess of the 10% will be subject to a Withdrawal Charge.

22. Return of Premium is available in policy years 5+ when the policy is surrendered.

Indexed Universal Life products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.

Executive Term CS3 (policy form series T082E1), Premier Term (policy form series T142), Essential Guaranteed UL 4 (policy form series L138), UL-DB (policy form series L137), UL-CV (policy form series L136), XL-DB3 (policy form series L143 - California Only), XL-DB4 (policy form series L143), XL-EC4 (policy form series L144, L144W with the Waiver of Surrender Charge - California Only), XL-EC5 (policy form series L144, L144W with the Waiver of Surrender Charge), XL-CV4 (policy form series L140 - California Only), and XL-CV5 (policy form series L140), Legacy Guaranteed SIUL (policy form series L139 without Waiver of Surrender Charge and L139W with Waiver of Surrender Charge), XL Heritage (policy form series L145) and Return of Premium Endorsement (form series TR201), Accelerated Benefit Endorsement for Critical, Chronic and Terminal Illness (form series TR169), Accelerated Benefit Endorsement for Chronic and Terminal Illness (form TR153, TR155, and TR184), Accelerated Death Benefit Endorsement for Chronic Illness (form series TR193 – California only), Accelerated Death Benefit - Critical Illness (form TR197, CA only), Accelerated Benefit Rider - Chronic Illness TR137B (Florida Only), Accelerated Death Benefit Endorsement for Terminal Illness (form series, TR154, TR156, TR164 and TR185), Accelerated Benefit Rider - Terminal Illness (form series TR138A - Florida Only), Premium Guarantee Rider (form series TR174), Estate Preservation Rider (form series TR149), Survivorship Policy Split Exchange Endorsement (form series TR150) and the Graded Conversion Credit Rider (form series TR127), are underwritten and issued by Midland National Life Insurance Company, Administrative Office, One Sammons Plaza, Sioux Falls, SD, 57193. Products, features, endorsements, riders or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply.

221ML 6/17. FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.