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Experience the Power of Fixed Index Annuities

Experience the Power of Fixed Index Annuities. The “Yellow Pad” Presentation. Consider the advantages of a Fixed Index Annuity. Returns linked to an index Return of principal* Liquidity features Tax deferred growth Safety * Subject to claims paying ability of issuing institution.

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Experience the Power of Fixed Index Annuities

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  1. Experience the Power ofFixed Index Annuities The “Yellow Pad” Presentation

  2. Consider the advantages of a Fixed Index Annuity • Returns linked to an index • Return of principal* • Liquidity features • Tax deferred growth • Safety * Subject to claims paying ability of issuing institution

  3. The Strength of Tax Deferral • Earnings accumulate tax deferred • No income taxes are due until proceeds are taken out AND the Power of Triple Compounding • Earn interest on your principal • Earn interest on the interest • Earn interest on the money you would have paid in taxes

  4. Help Protect Yourself With the safety and growthpotential of a Fixed Index Annuity If you don’t have the recovery time that may be necessary, a Fixed Indexed Annuity may make sense for a portion of your money

  5. Popular Indices(examples of companies in the index)

  6. Measuring the GainTwo common methods used • Annual Point-to-Point – Annual Reset • Monthly Point-to-Point – Annual Reset

  7. Annual Point-to-PointExamples: • Beginning index value: 1000 • Ending index value on contract anniversary: 1117 • Percentage of change: +11.70% • Annual Cap: 4% X Your Return is 4% Up Year Down Year • Beginning index value: 1000 • Ending index value on contract anniversary: 900 • Percentage of change: -10% • Annual Cap: 4% X Your Return is 0% The annual cap varies depending upon the issuing insurance company.The 4% annual cap quoted is for illustrative purposes only.

  8. Monthly Average Point-to-PointExamples: X Your return is 2.42% X Your return is 0.78% On each monthly anniversary the index gain or loss percentage is calculated from the previous monthly anniversary indexnumber. Percentage gains are recorded up to the cap, percentage losses are not recorded. At the policy anniversary, the recorded changes are averaged together, and if positive, that is the interest credit for the year. If negative, there is not interest credited for the year.

  9. Monthly Sum Point-to-PointExamples: X Your return is 8.5% X Your return is 0% On each monthly anniversary the index gain or loss percentage is calculated from the previous monthly anniversary indexnumber. Percentage gains are recorded up to the cap, percentage losses are recorded with no cap. At the policy anniversary, the recorded changes are added together, and if positive, that is the interest credit for the year. If negative, there is not interest credited for the year.

  10. The Power of Annual ResetYou may reduce your risk during the down years! Annual Point-to-Point -Annual Reset Participation rate is defined ashow much of the increase in the index will be used to calculate the index-linked interest. Annual Reset is defined as the index-linked interest, if any, is determined each year by comparing the index value at the end of the contract with the index value at the start of the contract year. Interest is added to your annuity each year during the term. 100% Participation Rate 8% Cap No Fee The annual cap varies depending upon the issuing insurance company.The 8% annual cap quoted is for illustrative purposes only.

  11. The Power of Annual ResetYou may reduce your risk during the down years! Monthly Point-to-Point -Annual Reset Participation rate is defined ashow much of the increase in the index will be used to calculate the index-linked interest. Annual Reset is defined as the index-linked interest, if any, is determined each year by comparing the index value at the end of the contract with the index value at the start of the contract year. Interest is added to your annuity each year during the term. 100% Participation Rate 2.45% Monthly Cap No Fee The monthly cap varies depending upon the issuing insurance company.The 2.45% monthly cap quoted is for illustrative purposes only.

  12. The Safety of Fixed Indexed Annuities All fixed annuities are backed by the claims paying ability of the insurance company offering them. The insurance companies are subject to strict guidelines established by the National Association of Insurance Commissioners and must strive to conservatively invest the premium funds to provide a minimum return. Additionally individual states may require insurance companies doing business in their state to contribute to the Life and Health Guarantee Association, which may help should an insurance company fail to meet the obligations of their contract holders, up to the guidelines published by the state.

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