National Life Group Enters Section 79 Market with New IUL Product

(July 15, 2008) Life Insurance Company of the Southwest (LSW), a member of National Life Group, recently announced the introduction of SecurePlus Advantage 79, an indexed universal life product positioned specifically for the Section 79 market. As only specially designed life insurance contracts produce favorable tax results under the Section 79 formula, there are very few contracts currently available in this marketplace.

LSW developed SecurePlus Advantage 79 to provide a competitive product for the business owner market. According to Mehran Assadi, President, Life and Annuity, National Life Group, it is a multi-solution product for the Section 79 platform. Assadi explains, "It has the unique design flexibility to focus on a higher current tax benefit or to focus on higher cash value accumulation, combined with the upside potential and downside protection of an IUL product."

In many cases, owner-employees and key employees are maximizing qualified plans but are still looking for additional tax advantages. Section 79 provides a way for business owners to recruit, reward, and retain key employees generally with minimal rank and file employee costs and still provide the business with the ability to reduce its tax obligations. Additionally, key employees and owner-employees are provided with substantial life insurance benefits, low reportable income, portable benefits, and supplemental retirement income through policy loans and withdrawals. (Policy loans and withdrawals will reduce the cash value and death benefit.)

SecurePlus Advantage 79, form series 8593/8594/8593ID(0708)/8594ID(0708) is underwritten by Life Insurance Company of the Southwest and may not be available in all states.

National Life Group® is a trade name representing various affiliates, which offer a variety of financial service products.

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