UNDERSTANDING AND BENEFITING FROM

INDEXED ANNUITIES

Ideal Producers Group 2014

• Your choice of interest credits based on changes in a Market Index or Fixed-Interest option

• Safety of principal and interest – No risk if held to term

• Minimum interest rate GUARANTEED!

• Tax-Deferred growth• Access to you money• Probate-free death benefit• Income options• Asset allocation capabilities

WHO BENEFITS FROM THE INDEXED ANNUITY?Individuals seeking the opportunity for market-linked interest credits, without market risk.

WHAT DO INDEXED ANNUITIES OFFER?

• Track a market index for a period of time (usually one contract year).

• Apply a formula to determine a gain in the market index.

• Credit interest at the end of the period (usually each contract year). Interest can never be taken away due to poor market performance.

• Interest compounds annually.

HOW DO YOUEARN INTEREST?

• A downturn in the market will not hurt potential growth in following years.

• Any adjustment applied can never cause the annuity to lose previously credited interest.

• Limited withdrawals without surrender charge are available.

• The Death Benefit may avoid the costs, delay and publicity of probate.

• Several tax favored income options are available, if desired.

OTHERIMPORTANT BENEFITS!

CHOOSE THE RISK/REWARD PROFILEOF YOUR MONEY!

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Mutual Funds/StocksVariable Annuities

IndexedAnnuities

BondsCDs Traditional FixedAnnuities

SAFETY/STABILITY

POTENTIAL RETURN

RISK PROTECTION: YOUR CHOICES

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ONE YEAR PERIOD IN THE S&P 500 INDEX

Monthly average (-15.70%)

1517.68

1133.58(-25.31%)

8/31/2000 8/31/2001

Source: Standard & Poor’s, a division of The McGraw-Hill Companies

$100,000

S&P 500 INDEXMONTHLY AVG.

S&P INDEX BUCKET IN INDEX ANNUITY‘FIXED ACCOUNT” BUCKET

IN INDEXED ANNUITY

$100,000$100,000

GAIN:-25.31%

ACCUMULATED VALUE: $74,690

GAIN:+3.00%

ACCUMULATED VALUE: $103,000

GAIN:0%

ACCUMULATED VALUE: $100,000

To match the Account Value of the fixed account, the following returns would be needed on the $74,690 remaining balance in the S&P 500:

RECOVERING FROM MARKET LOSS . . .

This sample calculation and all assumptions are purely hypothetical and are not an indication of any annuity’s past or future activity. Annuities contain limitations, including surrender charges, which may affect policy values.

S&P 500 RETURN REQUIRED TO

RECOVER 25% LOSSEND OF YEAR

ANNUITY FIXED ACCOUNT VALUE$100,000 AT 3.00%

+42%

+20.95% + 20.95%

+14.6% + 14.6% + 14.6%

$106,090

$109,272

$112,550

2

3

4

ANNUAL WITH CAPStart in the Index today . . . and end on the same day next year . . . You get 100% of the S&P 500 performance for the one-year period, up to and including X%**(X% = declared cap)

POINT-TO-POINT

This sample calculation and all assumptions are purely hypothetical and are not an indication of any annuity’s past or future activity. Annuities contain limitations, including surrender charges, which may affect policy values.

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gc-p2pHOW IS THE GAIN CALCULATED: POINT-TO-POINT

ANNUAL POINT-TO-POINT WITH CAP

• Start Point = 1,050 • End Point = 1,124 • Point-to-Point Gain = 7% Gain = 1124 1050

NEXT YEAR’S START POINT + 1,124MONTH 1 2 3 4 5 6 7 8 9 10 11 12

1,050

1,022

1,000

1,044 1,040

1,060

1,100 1,090

1,055 1,050 1,057

1,070

1,124

ISSUE POINT

END POINT

-1 = 7%

Start in the Index today . . .

Take the closing point in the S&P 500, on this date, for each of the next 12 months . . .

Add them up, divide the sum by 12

You get 100% of the average S&P 500 performance unlimited for the year, with an X%* fee subtracted.

*X% fee to be determined at contract inception and policy anniversaries. Fee cannot reduce interest credit below Zero.

MONTHLY AVERAGE WITH FEE

MONTHLY AVERAGING

This sample calculation and all assumptions are purely hypothetical and are not an indication of any annuity’s past or future activity. Annuities contain limitations, including surrender charges, which may affect policy values.p2p

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HOW IS THE GAIN CALCULATED: MONTHLY AVERAGEANNUAL RESET WITH FEE

• Sum of 12 months = 14,784 • Average of 12 months = 1,232 • Issue Start Point = 1,100 • Gain % and Interest Credit= 1232 1100

NEXT YEAR’S START POINT + 1,200MONTH 1 2 3 4 5 6 7 8 9 10 11 12

1,1001,124

1,1581,196

1,2271,243

1,2981,335

1,390

1,253

1,237

1,123

1,200ISSUE POINT

END POINT

-1 = 12% - 3% = 9%

Start in the Index today . . . Take 12 individual monthly performances up to X%* monthly cap . . . Add up capped monthly performances . . . *X% = monthly cap declared

MONTHLY POINT-TO-POINTMONTHLY POINT-TO-POINT WITH CAP

This sample calculation and all assumptions are purely hypothetical and are not an indication of any annuity’s past or future activity. Annuities contain limitations, including surrender charges, which may affect policy values. *X% cap determined at contract inception and on policy anniversaries.

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gc-p2pHOW IS THE GAIN CALCULATED: MONTHLY POINT-TO-POINT100% PARTICIPATION, 3%* CAP

MONTH 1 2 3 4 5 6 7 8 9 10 11 12

1,061

1,112

1,1321,148

1,1281,110

1,1171,139

1,0981,102

1,1201,130

1,177

THE 12 INDIVIDUAL MONTHLY PERFORMANCES ARE CALCULATED FOR THE POLICY YEAR.

+4.8%

+1.8%+1.4%

-1.7% -1.6%

-3.6%

+4.2%

+0.6%

+2.0%

+0.4%

+1.6%+0.9%

This sample calculation and all assumptions are purely hypothetical and are not an indication of any annuity’s past or future activity. Annuities contain limitations, including surrender charges, which may affect policy values. Cap is determined at contract inception and policy anniversaries. For this example we use 3%.

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HOW IS THE GAIN CALCULATED: MONTHLY POINT-TO-POINT100% PARTICIPATION, 3%* CAP

MONTH 1 2 3 4 5 6 7 8 9 10 11 12

1,061

1,112

1,1321,148

1,1281,110

1,1171,139

1,0981,102

1,1201,130

1,177

Any individual monthly gains greater than the declared monthly cap (i.E., 3%*) are reduced to the cap, and the 12 monthly performances are summed up.

+3.0%

+1.8%+1.4%

-1.7% -1.6%

-3.6%

+3.0%

+0.6%

+2.0%

+0.4%

+1.6%+0.9%

3.0%CAP

MONTHLY CAP POLICY GAIN = 7.77%

The questions listed below help you decide which type of annuity, if any, meets your retirement planning and financial needs. You should consider what your goals are for the money you put in the annuity. You need to think about how much risk you’re willing to take with the money and ask yourself:

• How long can you leave your money in the annuity?

• How do you expect to use the money in the future?

• Are you willing to have higher risk with the possibility achieving higher returns?

• Is a lower guaranteed interest rate more important to you? (Fixed, Declared Rate Annuity)

HOW DO YOU KNOW IF AN EQUITY INDEXED ANNUITY IS RIGHT FOR YOU?

• What is the guaranteed interest rate?• What is the range of possible interest

rates for my contract?• What charges, if any, are deducted

from my premium?• How long is the term?• For how long is the participation rate

guaranteed?• Is there a minimum participation rate?• Does my contract have a cap?• Is averaging used and if so, how does

it work?• Is interest compounded during a

term?• Which indexing method is used in my

contract?

• Is there a margin, spread, or administrative fee? Is that in addition to or instead of a participation rate?

• What are the surrender charges or penalties if I want to end my contract early and take out all of the money?

• Can I get a partial withdrawal without paying charges or losing interest?

• Does my contract have vesting?• Does my annuity waive withdrawal

charges if I am confined to a qualified care facility or diagnosed with a terminal illness?

• What annuity income payment options do I have?

• What is the death benefit?

QUESTIONS YOU SHOULD ASK YOUR AGENT OR THE COMPANY

All product features, charges and rates described in the presentation, Understanding and Benefiting from Indexed Annuities, are not product or company specific. Please contact your agent or company representative to request information on a particular annuity.“Standard & Poor’s,” “S&P,” “S&P 500” and “500” are trademarks of The McGraw-Hill Companies, Inc. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing the product.