LifePoint Catholic Charitable Endowment Impacting the Mission and Ministries

of the Church…

We accept donations of

unwanted life Insurance from senior donors

(age 65+)

We “pool” the policies from

multiple Charities to

achieve actuarial scale

We manage the pool of policies

and pay the ongoing

premiums

We make annual grants from the death proceeds

to donor designated Charities

The CompanyLifePoint is 501(c)(3) Christian Charity founded Nov. 18, 2008. Our mission is to generate long-term sustainable revenue for other charitable organizations to help them to expand their reach and impact. To do this …

Pooling policies from multiple charities

allows the Endowment to achieve scale.

Scale allows the number of deaths within the pool to become actuarially

predictable.

In LifePoint’s pooling design, the charity

exchanges its interest in its specific policies

for a percentage interest in the future

grants from the entire pool.

RESULTS:

Earlier and more predictable grants to all named charities

The “Pooling” Concept is Important

1

3

2

4

Actuarial Science and Scale Create Predictable Results

BA, Mathematics, Physics and Business

Administration, Coe College

MA, Applied Statistics, University of Iowa

Vice President - CAST Management Consultants

23 Years Equity Principal - Milliman Consultants

Member of Life Products Committee of the Society of Actuaries

Fellow, American Academy of Actuaries

Affiliate, Institute of Actuaries

Douglas J. Bennett, FSA, MAAA

Mortality Table

2008 VBT RR 100 ANB

Age Mix 70-85

Premium Ratio

1.5%/face

Average Policy Size

$73,000

Years in-Force

20

Gender 65% /35%

Smoking Status 70%/30%

Independent Consulting Actuary

LifePoint’s Underlying Mortality Model

0

50

100

150

200

250

300

350

400

450

500

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Scale Creates Predictable # of Annual DeathsActuarially Probable # of Deaths Per Year

Based on LifePoint’s Portfolio Composition Assumptions

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Scale Creates Predictable Death Benefits Probabilistic Death Benefit Model Projections

10 Years - $ 134,747,603

20 Years - $ 880,882,157

25 Years - $1,390,365,987

LifePoint Anticipates Reaching Scale by 2015

2012

114 Policies

$21,140,000

2014726 policies

$133,004,000

20151226 policies

$221,324,0002013336 Policies

$62,310,000

The Market Opportunity

Annual policy lapse rate by

seniors is 5% -14% depending

on product

80% age 62+ still own life

insurance

Senior market (12.8% of US

Population) is growing 3X faster

- Estimated to reach 20% by

2050.

An estimated $300 Billion in death benefit is voluntarily terminated

each year by seniors … and is growing!

Life Insurance Donations From Seniors An Overlooked Market Opportunity

2008 U.S. Life Individual Insurance Persistency Update, a Joint Study by the Society of Actuaries and LIMRA

2009 Study by the Insurance Studies Institute

US Census Bureau

37 million to 86 million seniors by

2050!

• Annual lapse rates for seniors range from 5% -14% depending on the product

• $300 Billion in death benefit is terminated eachyear!

Cancel the Policy

• Extremely limited secondary market for small policies

• Most insured’s and policies DO NOT QUALIFYSell the Policy as a Life Settlement

• Most charities DO NOT ACCEPT direct donations of life insurance without a donor commitment to pay the premiumsDonate Directly to

Charity of Choice

• Donor designates the charity to benefit

• Donor receives tax deduction

• LifePoint pays the premiumsDonate to LifePoint

Seniors with Small Policies Have Few Alternatives

Relationship to the CharityCommitted to the Mission

Supportive of the Charity

No Longer Need the PolicyHave outgrown the original purpose

Desire to repurpose policy for eternal impact

Considering Terminating the CoverageWant to stop paying premiums

Desire to Give a “large” GiftBest opportunity to make an “Endowment” sized gift

Income Tax DeductionTax deduction is equal to the cash value or Market Value (in Canada)

Seniors WILL Donate Policies to LifePoint

A gift of an unneeded life insurance policy can allow senior donors to maximize the impact of their lifetime giving.

Give Life Program

Lifetime Giving

Lifetime Giving

$25,000

$25,000 $75,000 (Average policy size)+

LifePoint Allows Senior Donors To MAXIMIZE Their Impact

Example: a 75 year old donor that has given $1,000 per year for 25 years:

LifePoint Overview – Phase I 2009Marketing Consultant - Non-Profit Fund Raising SurveyActuarial Consultant - Researched Mortality Model AssumptionsReceived 501(c)(3) Public Charity Status from IRS

2010 - 2013Raised a $1.08M donation Conducted a Proof of Concept PilotProved the Concept (People WILL donate policies to LifePoint)

• LifePoint currently owns $4.2M face amount across 23 policies benefitting 21 charities

Established predictable direct-marketing response ratesDeveloped relationships with 30+ charities and multiple universities Identified 2M+ current senior donorsIdentified a tremendous tax-incented opportunity in CanadaGained access to a 12,000 Canadian Financial Advisor Network via Canada GivesDeveloped a Charity Marketing ToolkitDeveloped an Expansion Strategy into the Catholic Market

Building An Endowment…Changing Lives…Impacting The Future…

Possibly the number one concern around the country is the sustentation of our Catholic schools-

Catholic Schools are the responsibility of the entire Catholic community…

Catholic Schools afford the best opportunity to realize the fourfold purpose of Christian education, namely,

1) to provide an atmosphere in which the Gospel message is proclaimed; 2) community in Christ is experienced; 3) service to the less fortunate is the norm; and, 4) thanksgiving and worship of God is cultivated and encouraged.

The vitality of the Church is inextricably tied to the health of the Catholic school system and its mission to form holy men and women who make God known, loved and served.

Catholic Schools exemplify how to prepare citizens for full engagement in democracy and commitment to the common good.

Schools – Number 1 Concern

Catholic Schools remain the largest private school system in America providing remarkable, transformative education while at times on a shoestring budget…

Catholic Schools flourished historically because of vision and passion of Bishops, Pastors and Religious…

How much more tuition can be charged? Costs and tuitions are rising while enrollment declines…closures on the increase…

Religious are almost gone. Pastors and Boards are overwhelmed. Mass attendance is down.

Faculty salaries still too low…

Catholic Schools matter now more than ever…

National treasures that must be preserved in spite of the challenges…

The Case for Catholic Education…

LifePoint Charitable Endowment

The Catholic Initiative is to benefit Catholic Education, Humanitarian and Religious endeavors of each Diocese

Health SciencesHumanitarian

Catholic Initiative

A Catholic Initiative

Catholic Statistics Total Age 65+US Catholic Population* 68,115,001 8,854,950Texas Catholic Population** 6,939,045 902,075Diocese of Dallas*** 955,298 124,188Diocese of Ft. Worth*** 450,000 58,500

* Official Catholic Directory, 2009** American Religious Identification Survey*** Diocese of Dallas and Ft. Worth