PROTECTED RETIREMENT PLAN

1. PROTECTEDRETIREMENTPLAN For UK financial advisers only A new solution from LV= Ease your clients into retirement…

2. For UK financial advisers only Introducing the Protected Retirement Plan Retirement is changing. People are living longer and more complex lives. People in their 60’s can look forward to 20, or even 30 years or more of retirement. Nowadays, they expect more from their retirement plans with the freedom to reassess their needs and provisions as they get older. A solution that allows them a bit of breathing space could be just the thing they need… …and that’s where our Protected Retirement Plan comes in • a changing market … and a new solution • in more detail • about LV= • support for you

3. For UK financial advisers only Market approach… room for innovation annuities drawdown flexible annuities • flexibility, within limits • high minimum investment • investment risk • secure income • upfront decision • lifelong commitment simplified drawdown emerging 3rd way market… unit linked annuities with profit annuities guaranteed drawdown Features of both annuities and unsecured pensions… without the investment risks of unsecured pensions … without tying the client to a set income for life as annuities do… no lifelong decisions … freedom to reassess needs and provisions when they get older.

4. A fixed term plan, written under unsecured pension (USP) rules, offering: term from three to 25 years (must end before your client reaches age 75) any income amount between nil and the maximum limits set by Government Actuary’s Department (GAD) regular fixed or increasing income (up to 8.5% a year) choice of death benefits guaranteed maturity amount, provided your client is still alive when the plan ends no exposure to investment risk investment on a standalone basis or as part of client's existing SIPP/USP factory gate pricing and a choice of remuneration terms Benefits are fixed at outset. Once started, the plan can’t be changed or cashed in. For UK financial advisers only Protected Retirement Plan - basics

5. The plan, which can only be bought using pension savings, including protected rights, allows your client to choose the following at the start: their required plan term any income amount between nil and the maximum limits set by GAD a fixed level or increasing regular income a choice of death benefits. These can provide a lump sum, continued income, or both, if the client dies during the term of their plan. As long as your client lives until the end of the term, the plan provides a guaranteed maturity amount. They can then use this to: buy an annuity buy another Protected Retirement Plan, or invest in an unsecured pension or an alternatively secured pension (ASP) ….whatever suits their circumstances and needs at that time. For UK financial advisers only Breathing space

6. Perhaps your client likes the idea of an annuity, but doesn’t want to lose control of their pension fund? worries that their health may change in the future? doesn’t want to commit to something that may not be suitable in five or ten years time? likes the idea of an income from an unsecured pension, but is nervous about exposing their savings to fluctuations in investment performance? likes more choice and security within their existing pension arrangements, such as a SIPP? has a pension fund that is smaller than would normally be considered for a pension drawdown contract? A retirement income product that allows them a bit of breathing space could be just the thing they need… For UK financial advisers only An ideal solution for…

7. However, your client may be better placed with an annuity, USP or deferred annuity, instead of a Protected Retirement Plan, if they: are currently in poor health and may already benefit from enhanced or impaired rates want the additional flexibility of income drawdown want more investment control want a guaranteed level of income for life, that a traditional annuity can provide are in a final salary pension scheme, where a transfer to a money purchase pension may not be in their best interest For UK financial advisers only Considering other options

8. The Protected Retirement Plan can help to strengthen your business and offer new opportunities for advice and retirement planning, by: offering transparent charging, factory gate pricing and remuneration flexibility allowing you to plan your clients’ retirement income provision more effectively broadening your competitive and propositional advantage over those adviser firms offering only traditional lifetime annuities and retirement solutions supporting treating customers fairly principles and best advice enabling a continued client relationship and greater embedded value for your business providing opportunity for further advice (and remuneration) when the plan matures, based on client situation at that time our money where our mouth is service commitment – tax free cash in five days or £1000 for your client (terms and conditions apply) For UK financial advisers only An attractive option for you

9. PROTECTEDRETIREMENTPLAN For UK financial advisers only In more detail…

10. The Protected Retirement Plan is a fixed plan written under USP rules at outset, client must be aged between 50 (55 from April 2010) and 71 years and six months can invest protected rights and non-protected rights funds minimum investment is £10,000 (after any tax free cash has been taken) no maximum investment limit, bespoke rates available for cases £500,000+ invest on a stand alone basis: by transferring un-crystallised funds or USP monies USP to USP transfers will maintain existing GAD income limits or as part of SIPP/pension wrapper: either LV= Flexible Transitions Account or others (where accepted) As an investment of an existing SIPP/pension wrapper For UK financial advisers only Ways to invest…

11. Your client chooses their income benefits at outset: any regular income amount from nil to 120% of the GAD limit level or yearly increasing income (up to 8.5% a year) payment frequency monthly, quarterly, six-monthly or yearly in advance or arrears we pay income on Pay As You Earn basis, deducting tax at source If we have to restrict income, due to a GAD limit review, we’ll pay the difference when the plan ends For UK financial advisers only Income options…

12. These can provide a lump sum, continued income, or both, if the client dies during the term of their plan. Your client chooses their plan death benefits at outset. a dependant’s income for spouse, civil partner, or financial dependant up to 100% of client’s plan income, subject to GAD limits paid until the earlier of the end of the plan and when they die. plus a maturity value, if dependant is alive at the end of the plan guarantee period income for a minimum period, even if they die during this time. normally paid as a lump sum unless a dependants income is being paid Value Protection protect up to 100% of the fund used to set up the plan, if they die before the maturity date. paid as a lump sum (amount protected less any income paid) death benefit options/beneficiaries are restricted for pension wrapper investments and protected rights For UK financial advisers only A range of death benefits options…

13. At the end of the plan term, provided your client is still alive, we will pay a guaranteed maturity value the guaranteed maturity value is set when the plan starts the value depends on: the size of the pension fund invested the plan term client age and sex amount and frequency of income chosen death benefits chosen our views about current and future investment markets based on their circumstances and requirements at the time, your client can then buy an annuity buy another Protected Retirement Plan invest in an unsecured pension Invest in an alternatively secured pension (ASP) from age 75 For UK financial advisers only At the end of the plan

14. Minimum age at entry:50 (increasing to 55 in April 2010) Maximum age at entry:71 years and six months Minimum term:three years Maximum term:25 years (reducing to 20 in April 2010) Maximum age at maturity:day before the client’s 75th birthday (if a dependant’s income is chosen the dependant must also be under age 75 at maturity) Income Limits: nil and up to 120% of maximum allowable under GAD level or increasing (up to 8.5% a year) Minimum premium:£10,000, after any tax-free cash Maximum premium: no maximum, bespoke terms for cases over £500K Income flexibility:in advance or in arrears monthly, quarterly, half-yearly or yearly basis. Acceptable Monies:protected rights, non protected rights or both Charges: initial charge to cover set up costs and yearly administration costs Remuneration: factory gate pricing basis flexible remuneration and commission arrangements For UK financial advisers only Plan details

15. PROTECTEDRETIREMENTPLAN For UK financial advisers only About LV=

16. For UK financial advisers only Financially strong & stable LV= a compelling choice… • the UK’s largest friendly society • proudly ‘mutual’, with no shareholders eating into profits • looking after members since 1843 • financially strong, rated B+ (very good) by AKG • 19.2%* - an enviable realistic free asset ratio • £7billion assets under management • 3.5 million members and customers *Money Management Survey of Financial Strength August 2009

17. For UK financial advisers only Rich retirement solutions heritage • in early 2008, LV= acquired the new business operations of Tomorrow (formerly GE Life) • with specialist retirement expertise and a history of innovation • first IFA provider to enter the UK drawdown market (as National Mutual Life) • first provider to launch smoker annuities in the UK • first provider to develop a comprehensive drawdown range including protected rights, occupational and fully phased drawdown • one of the first to launch discretionary management for pensions to the mass market • 15 years experience as a SIPP provider • more than ten years experience in the enhanced/impaired annuity market

18. For UK financial advisers only Products, service, support and expertise • personal adviser support • local face to face account development and expertise • telephone account management and business support • quotation and business processing teams • administration centres • e-solutions • Dedicated adviser site LV.com/adviser • regular e-news updates • secure services • retirement • flexible transitions account • enhanced annuities • with profits annuities • equity release • protection • income protection and critical illness • individual life protection • investments • LV= Asset Management • new generation with profits

19. For UK financial advisers only Selecting a retirement solutions provider What makes a good retirement solutions provider? Financial strength Retirement products are normally long term investments, so you need to make sure your provider will be around for the long term. Service Errors and delays cost you and your clients time and money. Therefore, consider only using experienced providers. Personal support Mistakes can happen, but you need the support to make sure these are corrected quickly Product options Make sure your clients aren’t missing out. Not all providers offer enhanced rates for with-profits annuities, and some aren’t able to accept GMP or offer value protected annuities. Flexibility Meeting customer needs often means being flexible, including on commission and rate. Brand Customers must be comfortable with the company you recommend – its going to provide them with income for the rest of their life. Mutuality A mutual can make all the difference, whether it is prioritising the needs of customers over shareholders or making sure that all profits are distributed to with-profits policyholders.       

20. If you would like more information about our Protected Retirement Plan and the breathing space that it can offer your clients, please contact your local LV= sales office: North: 0800 678 1682 South East: 0800 678 1681 South West: 0800 678 1680 call our central quotes team on 0800 169 1111, or email them at annuity.quotes@lv.com quotes also available from the Exchange access and download a full range of Protected Retirement Plan documents and guides at LV.com/adviser Opening times 8.30am – 5.30pm Monday to Friday. For textphone dial 18001 first. We may record and/or monitor your calls for training and audit purposes. For UK financial advisers only To find out more

21. For financial adviser use only. This presentation is based on our understanding of legislation applicable in England and Wales and HM Revenue & Customs practice as at 1 January 2010 which may change in the future. We cannot accept responsibility for any action arising as a result of the information contained in this presentation. LV= is a registered trade mark of Liverpool Victoria Friendly Society Limited (LVFS) and a trading style of the Liverpool Victoria group of companies. LVFS is a member of the ABI, AMI, AFS and ILAG. Authorised and regulated by the Financial Services Authority, register number. 110035. NM Pensions Trustees Limited, (registered in England No. 4299742), act as Trustees and Scheme Administrators. Authorised and regulated by the Financial Services Authority, register number. 463402. Registered address for all companies: County Gates, Bournemouth BH1 2NF. Tel: 01202 292333. 21012918 02/10