TFLIC Financial Foundation IUL

• Choose from three Account Options.
• An available Long Term Care Rider.
• No-Lapse Protection.
• Flexible Premium payment options.
• Preferred loans available after 10 years.

*Any guarantees associated with this policy are based on the claims paying ability of TFLIC.
Additional tabs provide a brief summary of some of the features. For further details refer to the Agent Guide.

For Agent Use Only. Not For Use With The Public.
TFLICWEBPOFFIUL-0513

Age Last Birthday 0-85

• Preferred Elite - Non-Tobacco use
• Preferred Plus - Non-Tobacco use
• Preferred - Non-Tobacco use
• Non-Tobacco
• Preferred Tobacco
• Tobacco
• Juvenile

Band 1: $25,000 - $99,999
Band 2 $100,000 - 499,999
Band 3: $500,000+

Policyowners have the flexibility to select the death benefit option that meets their objectives. If their situation changes, the death benefit option can be changed, subject to certain limitations.

Level: Face Amount
Increasing: Face Amount plus policy value

These amounts may be increased to meet IRS guidelines

Global Index Account: 0.75%

S&P 500^® Account: 0.75%

Basic Interest Account: 2%

The Policy Value is the starting point for calculating important values under the policy, such as the Cash Surrender Value and the net death benefit. There is no guaranteed minimum Policy Value. The policy may lapse if there is not sufficient Policy Value to pay the Monthly Deductions, the surrender charge and/or any outstanding loan amount and accrued loan interest. The Policy Value is comprised of the value of the Basic Interest Account, the Global Index Account, and the S&P 500^® Index Account and the policy loan reserve.

• Charge
  Per $1,000 of the initial Face Amount and for each increase in face amount.
• Period for Charge
  The surrender charge applies for the first 15 policy years and for 15 years from the date of any Face Amount increase.
• Basis for Charge
  Face Amount, Insured's issue age, gender and risk class.

These charges may be significant and should be carefully considered before surrendering the contract.

If the policy is surrendered, the Cash Surrender Value of the policy is equal to the policy value less any applicable surrender charges and any loan balance. A surrender charge may result in the Cash Surrender Value of the policy being zero. As a result, this policy is not intended for short term savings or short term insurance needs. Excess Index Interest is not credited for partial years on any Index Account Segment.

• Minimum
  $500
• Maximum
  Cash Surrender Value minus $500.
• Charge
  $25

Excess Index Interest for a Segment Period will not be credited on amounts taken as withdrawals from an Index Account Segment prior to the end of the Segment Period.

• Minimum 
  $500
• Maximum
  Cash Surrender Value minus loan interest that will accrue prior to the next anniversary.
• Availability
  After the free look period ends.

Excess Index Interest for a Segment Period will not be credited on amounts taken as loans from an Index Account Segment prior to the end of the Segment Period.

Transfers from an Index Account to any other account are only allowed at the end of the Index Account Segment Period. Transfers from the Basic Interest Account to an Index Account are only allowed on the first day of a policy month, which generally does not correspond to the calendar month.

Automatic Transfer Rule

• By default, renewing segments roll over to the same account type (for example S&P 500^® Index Account rolls over to S&P 500^® Index Account, Global Index Account rolls to the Global Index Account, and the Basic Interest Account rolls to the Basic Interest Account) unless the owner gives specific transfer instructions prior to the segment renewal. The owner can submit the Index Universal Life Insurance Automatic Transfer Request Form (at issue or anytime thereafter) to override the default with a specified Index Account Automatic Transfer Rule (ATR), which allows transfers to happen automatically upon renewal of the Segment.

Monthly Deductions are taken from the policy value on each Monthly Policy Date. The Monthly Policy Date is the same day of each month as the Policy Date. The Monthly Deduction consists of the cost of insurance, Monthly Policy Fee, Monthly Expense Charge, charges for additional benefits provided by riders and any charges for substandard class ratings. Monthly Deductions will be taken from the Basic Interest Account, the S&P500^® Index Account and Global Index Account in proportion to the values of those accounts on the Monthly Policy Date the deduction is taken. Monthly Deductions will first be taken from the highest numbered Segment and then from the next highest numbered Segment.

Current: $10

Guaranteed: $12

A charge per thousand of the Face Amount of the Base Policy and Additional Insured Rider. This charge varies by gender, tobacco use, age of the Insured and the Face Amount band.

Base:
On a current basis, the charge applies for ten years from issue and ten years from the date of any Face Amount increase.

On a guaranteed basis, the charge applies for ten years from issue or increase date for ages 0-60 and through age 120 for issue ages 61-85.

AIR:
This charge applies to any Additional Insured Rider for eight years from rider issue date and eight years from the date of any increase in rider face amount.

Charge varies based on the Insured's Age, Underwriting Classification and gender, and the Policy's Face Amount and duration.

Current
Year 1: 4.0%
Years 2-10: 6.0%
Years 11+: 2%

Guaranteed
All Years: 6.0%

0.06% per month (0.72% annually) of the Index Account Value. Taken on the monthly policy date through age 120, from the highest numbered segment first.

*Loans and withdrawals can only be made if the policy has been in force long enough and has accumulated sufficient value. Loans and withdrawals will reduce the cash value and death benefit and loans are subject to interest charges. Policy loans are generally not taxable when taken.  If a policy is surrendered or lapses while a loan is outstanding, adverse tax consequences may result. Cash withdrawals are also not generally taxable until they exceed basis in the policy. However, if the policy is treated as a modified endowment contract (MEC) by IRC Sec. 7702A, withdrawals and loans are taxable at an ordinary income tax rate when taken to the extent of gain then in the contract and may also be subject to a 10% federal income tax penalty if taken prior to age 59½. Cash distributions associated with benefit reductions, including reductions caused by withdrawals during the first 15 years, may be taxable. Consult with your tax advisor regarding your particular situation.

**The Company has the right to change current charges and cost of insurance rates. The Company may not charge more than the guaranteed maximum charges or rates. Any changes to charges or rates will be based on our expectations as to future cost factors. Such cost factors may include, but are not limited to, mortality, interest, persistency, expenses, reinsurance costs and state and federal taxes.

Issue ages: 18-85. This rider provides additional level term insurance coverage at term insurance rates. The minimum purchase amount is $100,000, and the maximum is 10 times the base Face Amount. Termination of the Base Insured Rider is at the insured's age 100 or as specified in the rider. This rider does not build Policy Value and is not subject to surrender charges. Rider coverage may be reduced or cancelled without reducing coverage of or canceling the base policy. This rider will not increase the Target. This rider is not available if the Long Term Care Rider is elected.

Issue ages: 18-85. Provides coverage on a spouse, dependent child, or other individual in whom the owner has an insurable interest. Insurable interest must be explained at the time of application. The minimum purchase amount is $100,000; the maximum is the lesser of $1,000,000 or total coverage on the base insured. This rider may be converted to a permanent policy upon written request prior to the additional insured's 86th birthday. It terminates at the earliest of the base insured's age 121, the additional insured's age 100, the date the rider is converted, or as specified in the rider. Up to five Additional Insured Riders may be added.This rider is not available if the Long Term Care Rider is elected.

Issue ages: 15 days-18 years old. Provides level term insurance coverage for insured's children. The minimum purchase amount is $5,000; the maximum is $25,000. This rider may be converted to a permanent policy for a face amount up to the lesser of five times the rider's face amount, or $50,000 at the earlier of the child's age 25 or the child's marriage. Upon the death of the policy's insured, the face amount of the rider may be converted. Rider coverage terminates on the policy anniversary following each insured child's 25th birthday, the child's marriage or as specified in the rider. The cost for this rider is $6.00 per thousand annually. This rider is not available if the Long Term Care Rider is elected.

Issue ages: 0-37. This rider provides the option to purchase additional life insurance without evidence of insurability at the same underwriting class that currently applies to the base policy. Regular option dates are policy anniversaries following the insured's 22nd, 25th, 28th, 31st, 34th, 37th, and 40th birthdays. Alternate option dates are available after the Insured's marriage, birth or adoption of a child, or college graduation. This rider is not available if the Long Term Care Rider is elected.

Issue ages: 18-55. Subject to certain conditions, this rider applies the rider benefit amount shown in the policy as if it were a premium payment into the policy, when we receive proof that while the rider was in force, the insured became totally disabled (as defined in the rider), the insured�s total disability began before the policy anniversary on or following the Insured�s Age 65, and the insured�s total disability has existed continuously for at least six months. This rider will not cover any premiums that were due more than one year before we receive a written claim. The rider terminates at the Insured�s Age 65, unless at that time we have been waiving premiums continuously since before the Insured�s Age 60, or as specified in the rider.Not available with the Disability Waiver of Monthly Deductions Rider or the Long Term Care Rider.

Issue ages: 15 - 55. Subject to certain conditions, applies the rider benefit amount shown in the policy as if it were a premium payment into the policy, when we receive proof that while the rider was in force the insured became totally disabled (as defined in the rider), that the insured's total disability began before the policy anniversary on or following the insured's 60th birthday, and that the insured's total disability has existed continuously for at least 6 months. This rider will not cover any premiums that were due more than one year before we receive a written claim. The rider terminates on the anniversary following the insured's 60th birthday or as specified in the rider. Not available with the Disability Waiver of Monthly Deductions Rider or the Long Term Care Rider.

Issue ages: 15-55. The minimum rider face amount is $10,000 and the maximum is $150,000. This benefit pays the face amount of the rider if the insured's death results directly from an accidental bodily injury, independent from all other causes. The death must occur within 90 days of the accidental bodily injury and the injury must occur on or before the Policy Anniversary following the insured's 70th birthday. The rider will terminate on the Policy Anniversary after the insured attains age 70 or as specified in the rider. This rider is not available if the Long Term Care Rider is elected.

This endorsement is issued automatically on each policy at no charge until the endorsement is exercised.  This endorsement allows the owner to access up to 75% of the available death benefit on the insured or $500,000 of aggregate accelerated death benefit on the life of the Insured, whichever is less, prior to the death of a terminally ill insured. The minimum amount allowed is $10,000.

The policy owner can request multiple accelerations, up to the maximum. There is an administration charge for each acceleration deducted from the proceeds when the endorsement is exercised. The charge is $350 for the calendar year 2013 and is subject to increase with the Consumer Price Index after 2013.

This no-cost feature provides the policy owner the option to structure the death benefit with an initial lump sum ($10K minimum), monthly income payments ($100/mo. minimum), and/or a final lump sum ($10K minimum). The monthly income payments can be extended over a period between 5 and 25 years. Beneficiaries cannot alter timing or amount of the IPO.

As long as certain requirements are met, the OPR provides the policy owner with an option to prevent a policy lapse from occurring due to excessive loans. If such requirements are met and the policy owner chooses to exercise the option, the policy will become a paid up policy keeping the policy in force, preventing loans from being taxable while still providing a small death benefit to the insured's beneficiaries.

The OPR is automatically included at issue on all GPT, non-MEC policies and there is no charge for this rider unless it is exercised. Once the OPR is exercised, there is a one-time charge assessed as a percentage of the policy value, based on the age of the insured (see chart).

The Long Term Care (LTC) Rider is designed to accelerate the face amount of the base policy to provide policy owners with certain benefits to help offset expenses that arise in connection with long term care for the insured. The rider provides a lifetime benefit for long term care equal to the base face amount selected by the policy owner. Available only at issue, the minimum LTC rider specified amount is $100,000 ($112,500 in Vermont, $150,000 in South Dakota), and the maximum is $1,000,000. No other optional riders are available in conjunction with this rider.

* It is possible that additional payments will be required to keep a policy in force while the monthly deductions are being waived. For example, loan interest accruing on an outstanding loan may require additional payments.

** It is possible that additional payments will be required to keep a policy in force while the Waiver of Premium Benefit is being paid. For example, an increase in monthly deductions or decrease in Policy Value may require additional payments.

*** Eligibility for the Terminal Illness Accelerated Death Benefit is determined by a condition resulting from injury or illness which, as determined by a physician, has reduced life expectancy to not more than 12 months from the date of the physician’s statement. The policy’s benefits and values will be reduced proportionally in accordance with the benefits advanced under this endorsement. Benefits paid under this rider are generally federal income tax-free but may be subject to taxation under some business related policies. Clients should consult their tax advisor.

**** The election to exercise the OPR is irrevocable. Once the Rider Benefit has been exercised, all other riders attached to the policy will terminate and no further policy activity will be allowed. Also, no further loans will be allowed, but loan interest will continue to accrue.

Riders are available at an additional cost. Riders and rider benefits have specific limitations. For complete details including the terms and conditions of each rider and exact coverage provided.

This product is only available for sale in New York.

All optional riders are available for sale in New York.

The TFLIC Financial Foundation Long Term Care Rider (FFIUL LTC Rider) is designed to accelerate the death benefit of the base policy to provide policy owners with certain benefits to help offset expenses that arise in connection with long term care services for the insured.

An overview of the LTC Rider's features is listed below. For more information, please select the Product Material link located in the page footer.