Letter from the President

Kirby

September 1, 2017

Dear Beneficial Policyholder,

Beneficial Life Insurance Company is pleased to share with you an update on our financial operations for the year ending 2016. You'll be pleased to see we continue to demonstrate financial strength and stability.

Specifically, our completed financial statements, for the year ending December 31, 2016, show Beneficial Life with operating earnings of $28.5 million for the year. We reported statutory assets of $2.3 billion, backing policyholder liabilities of $2.12 billion, leaving $177 million of adjusted capital and surplus. Our ratio of capital and surplus (money that exceeds our contractual obligations to our policyholders) continues to be among the strongest in the life insurance industry. I credit this outstanding performance to the skill and expertise of our investment team, as well as strong leadership and employee engagement in all areas of risk management, finance and company operations. Thank you for your loyalty to Beneficial Life - we work hard every day to keep your trust.

While you can rest assured that Beneficial Life is on solid financial footing, we recognize you may have questions or concerns about your life insurance or annuity policy. Your Beneficial Life financial professional is always a helpful resource to turn to, and we have a fully staffed customer service department ready and anxious to answer any question or help with any need you may have regarding your life insurance or annuity. You may reach a trained Beneficial Life customer service representative by calling (800) 233-7979 between the hours of 8:00 a.m. and 5:00 p.m. (MST) Monday, Tuesday, Thursday and Friday and Wednesday from 9:00 a.m. to 5:00 pm. You may also access information about your account on our website, www.BeneficialFinancialGroup.com. If you need help accessing your account online, simply call a customer service representative to assist you.

We are always pleased when a customer decides to come directly to our customer service office, and you are certainly welcome to do so. If you'd like to meet with a customer service representative in person, please come to 150 Social Hall Avenue, Salt Lake City, Utah 84111. When visiting the Social Hall location, one of the easier places to park is just across the street to the North in the multistory parking garage.

In summary, Beneficial Life has the financial strength to deliver on the commitments made to you when you bought your life insurance policy or annuity. We are steadfast in our commitment to meet all of our contractual obligations to you, our policyholders. Thank you for your continued confidence in us.

Sincerely,

Kirby's signature

T Kirby Brown Jr.

President and CEO

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