agenda

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3. 3 Agenda Advantages Disadvantages Types of Annuities Variable Annuity Features Who Should Purchase a Variable Annuity? Pay-Out Options

4. 4 Advantages Insurance Product Earnings Accumulate Tax-Free until Withdrawn by the Annuitant Single Premium Payment, or Premium Payments over a Period of Time Pay-Outs Based on Single or Multiple Lives

5. 5 Agenda Advantages Disadvantages Types of Annuities Variable Annuity Features to Review Who Should Purchase a Variable Annuity Pay-Out Options

6. 6 Disadvantages Variable Annuity Investment Risk Borne by the Investor Variable Annuity Management Fees May Limit Performance Surrender Charges May Be Imposed on Early Withdrawal Pre-59� Withdrawals Subject to Penalty

7. 7 Agenda Advantages Disadvantages Types of Annuities Variable Annuity Features Who Should Purchase a Variable Annuity? Pay-Out Options

8. 8 Types of Annuities Fixed Annuity

9. 9 Types of Annuities Fixed Annuity

10. 10 Fixed Annuity Earns a Fixed Rate of Return Performance and Principal Guaranteed by an Insurance Company Determining Annuity Payment Amounts

11. 11 Types of Annuities Fixed Annuity

12. 12 Variable Annuity Performance Determined by Underlying Mutual Funds Death Benefit Guarantee by an Insurance Company Determining Annuity Payment Amounts

13. 13 Agenda Advantages Disadvantages Types of Annuities Variable Annuity Features Who Should Purchase a Variable Annuity? Pay-Out Options

14. 14 Variable Annuity Features Expenses Surrender Charges Withdrawal Privileges Fund Transfers Death Benefit Guarantee Subaccount Options

15. 15 Variable Annuity Features Expenses Surrender Charges Withdrawal Privileges Fund Transfers Death Benefit Guarantee Subaccount Options

16. 16 Expenses Contract Charges Fund Expenses Insurance Expense (M & E)

17. 17 Variable Annuity Features Expenses Surrender Charges Withdrawal Privileges Fund Transfers Death Benefit Guarantee Subaccount Options

18. 18 Surrender Charges Start at 5%-7% of the Contract Value Typically Decline Each Year Waived for Death or Medical Expenses

19. 19 Variable Annuity Features Expenses Surrender Charges Withdrawal Privileges Fund Transfers Death Benefit Guarantee Subaccount Options

20. 20 Withdrawal Privileges A Percentage of Withdrawals Should Be Free from Surrender Charge Each Year Withdrawals Subject to Income Tax and Pre-age 59� Penalty

21. 21 Variable Annuity Features Expenses Surrender Charges Withdrawal Privileges Fund Transfers Death Benefit Guarantee Subaccount Options

22. 22 Fund Transfers Ability to Move Funds from One Subaccount to Another Annual Limits Possible Transfer Fees

23. 23 Variable Annuity Features Expenses Surrender Charges Withdrawal Privileges Fund Transfers Death Benefit Guarantee Subaccount Options

24. 24 Death Benefit Guarantee Standard Guarantee Ensures a Death Benefit Which Is the Greater of the Contract or Market Value Stepped-Up Basis at Predetermined Times Rising Floor Death Benefit�Usually Capped

25. 25 Variable Annuity Features Expenses Surrender Charges Withdrawal Privileges Fund Transfers Death Benefit Guarantee Subaccount Options

26. 26 Subaccount Options All Investment Categories Available Evaluating Subaccounts

27. 27 All Investment Categories Available Money Market Government and Corporate Bonds Growth and Aggressive Growth Stock International Stocks and Bonds

28. 28 Evaluating Subaccounts Date Started The Fund Manager The Manager�s Tenure Fund Performance

29. 29 Agenda Advantages Disadvantages Types of Annuities Variable Annuity Features Who Should Purchase a Variable Annuity? Pay-Out Options

30. 30 Who Should Purchase a Variable Annuity? Those Who Have �Maxed Out� IRA and Qualified Plan Contributions

31. 31 Who Should Purchase a Variable Annuity? Those Who Have �Maxed Out� IRA and Qualified Plan Contributions Those Concerned about Inflation and Comfortable with Equity Investments

32. 32 Who Should Purchase a Variable Annuity? Those Who Have �Maxed Out� IRA and Qualified Plan Contributions Those Concerned about Inflation and Comfortable with Equity Investments Those Willing to Hold an Investment at Least 10-15 Years Allowing Time to Overcome Annuity Costs

33. 33 Agenda Advantages Disadvantages Types of Annuities Variable Annuity Features Who Should Purchase a Variable Annuity? Pay-Out Options

34. 34 Pay-Out Options Life Only Joint and Survivor Life and Period Certain Installment Refund Annuity

35. 35 Pay-Out Options Life Only Joint and Survivor Life and Period Certain Installment Refund Annuity

36. 36 Life Only Payments Made over the Annuitant�s Lifetime Nothing Paid to Annuitant�s Estate or Heirs Provides Maximum Income for a Given Principal Amount

37. 37 Pay-Out Options Life Only Joint and Survivor Life and Period Certain Installment Refund Annuity

38. 38 Joint and Survivor Payments Continue over the Lives of the Annuitant and a Surviving Joint Annuitant Payments Are Smaller than Under the Life Only Option

39. 39 Pay-Out Options Life Only Joint and Survivor Life and Period Certain Installment Refund Annuity

40. 40 Life and Period Certain Payments Are Made for the Life of the Annuitant or a Specified Period, Whichever Is Longer Payments Are Less than for the Life Only Option

41. 41 Pay-Out Options Life Only Joint and Survivor Life and Period Certain Installment Refund Annuity

42. 42 Installment Refund Annuity Payments to the Annuitant, the Annuitant�s Estate, or to the Annuitant�s Heirs until the Pay-Out Equals the Amount Originally Paid for the Annuity Payments Will Be Less Than Those Under the Life Only Option