Single Pay & Flexible Pay Longevity Annuities Refreshing NEW look at Longevity Annuities

2 Big retirement fear: Outliving your savings USA TODAY USA TODAY September 24, 2014 Almost half of investors are worried they'll run out of their own money in retirement. Longevity Risk in the News For Training Purposes Only – Not To Be Used With The Public

3 Life expectancy continues to increase! Source: National Geographic Magazine - May, 2013 Longevity Risk For Training Purposes Only – Not To Be Used With The Public

4 Longevity Risk For Training Purposes Only – Not To Be Used With The Public

5 65 Female Couple % chance of living beyond 25% chance of living beyond 65 Male Source: AAA/Society of Actuaries 2012 Individual Annuity Reserve Table Longevity For Training Purposes Only – Not To Be Used With The Public

6 By a margin of more than 2 to1, people fear outliving their money in retirement more than death. Source: Wells Fargo/Harris Poll Survey –August, 2014 Longevity Concerns For Training Purposes Only – Not To Be Used With The Public Which do people fear most? Death Running out of money in retirement 22% 48%

7 By a margin of 7 to 1, adults past the age of 45 say their focus today is on peace of mind – not wealth accumulation. Source: Americans Perspectives on New Retirement Realities Study by Merrill Lynch and Age Wave – Jan Longevity Concerns For Training Purposes Only – Not To Be Used With The Public

8 In a BlackRock ‘Investor Pulse’ Survey: 62% are concerned about having enough income from investments in retirement 54% are worried about outliving their savings 73% said keeping my money safe is more important than trying to generate returns Source: BlackRock – May 2013 (Investors with $50,000 or more investable assets – all ages) Longevity Concerns For Training Purposes Only – Not To Be Used With The Public

9 How can a longevity annuity help make sure your money doesn’t die before you do? Longevity Annuity For Training Purposes Only – Not To Be Used With The Public

10 Longevity Annuity Income Annuity Deferred Fixed Annuity Longevity Annuity For Training Purposes Only – Not To Be Used With The Public

11 Longevity Risk For Training Purposes Only – Not To Be Used With The Public

12 Peace of Mind When a longevity annuity is purchased, you will know exactly how much income will be received each year. Payments will continue as long as the annuitant lives or, if the Joint & Survivor option is elected, the annuitant or his or her spouse live. Longevity Risk For Training Purposes Only – Not To Be Used With The Public

13 Peace of Mind Longevity annuities are not pension plans, however, they will provide guaranteed “pension-like” income for the life of the annuitant, and if the Joint & Survivor option is elected, the lives of the annuitant or his or her spouse. Longevity Risk For Training Purposes Only – Not To Be Used With The Public

Longevity Risk Peace of Mind Longevity annuities are not Social Security plans, however, they will provide guaranteed “Social Security Like” income for the life of the annuitant, and if the Joint & Survivor option is elected, the lives of the annuitant or his or her spouse. 14

Transfer the Risk 15 Less Risk Greater Income ‘Transfer the Risk’ Longevity Annuities may provide greater income with less longevity risk than other types of financial vehicles.* For Training Purposes Only – Not To Be Used With The Public * Other types of financial vehicles may have the potential to grow based on market performance.

Longevity Annuity Single Pay Product Fact Sheet 16 Issue Ages: 45–80 Owner must be a ‘natural’ person (cannot be owned by corporation or trust) Owner must be the annuitant Owner may name joint annuitant (must be legally married spouse) Joint owners are permitted (requires Joint Annuitants) Contract has no surrender value After free look period, contract is irrevocable Minimum Purchase Payment: $50,000 Minimum Annuitization Age: 60 Maximum Annuitization Age: 85 Minimum Deferral Period: 5 years No Annual or Recurring Fees Annuity Payment Methods: Single Life Annuity Joint Life Annuity Single Pay Longevity Annuity For Training Purposes Only – Not To Be Used With The Public

17 Longevity Annuity Flexible Pay Product Fact Sheet Minimum Purchase Payment: $700 (Issue age up to 35) $1,000 (Issue ages 36 and above) Minimum Annuitization Age: 60 Maximum Annuitization Age: 85 Minimum Deferral Period: 5 years No Annual or Recurring Fees Annuity Payment Methods: Single Life Annuity Joint Life Annuity Issue Ages: Owner must be a ‘natural’ person (cannot be owned by trust) Owner must be the annuitant Owner may name joint annuitant (must be legally married spouse) Joint owners are permitted (requires Joint Annuitants) Contract has no surrender value After free look period, contract is irrevocable Flexible Pay Longevity Annuity For Training Purposes Only – Not To Be Used With The Public

18 Longevity Annuity Single & Flexible Pay Product Details For Training Purposes Only – Not To Be Used With The Public Return of Premium Death Benefit Option Death benefit equals the total of all purchase payments. Prior to annuitization, Death Benefit is payable in a lump sum to the beneficiary, equal to the purchase payment After annuitization, Death Benefit is payable to Beneficiary as an Installment Refund. Once total payments made equals the purchase payment(s), no further Death Benefit is payable. Whether the annuitant dies before or after the income payout starts, where no Death Benefit option is purchased, no Death Benefit will be paid.

19 Change of annuitization date: Can change date once before income starts New date may not be less than five (5) years from the date you are requesting the change The new age must not be less than 60 nor greater than 85. If client changes to an earlier date, the income will be lower than the initial income. If the client changes to a later date, the income will be greater than the initial income. Longevity Annuity Single & Flexible Pay Product Details For Training Purposes Only – Not To Be Used With The Public

20 Payouts assume a $200,000 purchase payment at age 55 for a male and female, life only income option, deferred to ages 65, 70 and 80. The quotes are with a return of premium death benefit option, and show the exclusion ratio. The Payout rate is the annual income amount as a percentage of the purchase payment. *Quotes are as of 3/3/2016 and are subject to change. Single Pay Longevity Annuity For Training Purposes Only – Not To Be Used With The Public

21 Case Studies Longevity Annuity

22 Client: Jim & June Age: Couple both age 55 Status: Retiring at age Concern: Both are concerned about not having enough income in their retirement years. Potential Solution: Jim & June are willing to allocate $100,000 non-qualified assets to guarantee future income stream Case Study For Training Purposes Only – Not To Be Used With The Public

23 Income Option Solutions Purchase a Single Pay Longevity Annuity (with Death Benefit Option) with a $100,000 Purchase Payment at age 55 to start receiving income at some point in the future. They want an income that is guaranteed and will last both of their lifetimes. The Joint & Survivor Income Option is the solution. Both Jim and Joan have a history of longevity in their families. The question is; When to start taking income. Case Study For Training Purposes Only – Not To Be Used With The Public * Rates are as of 03/03/2016 and are subject to change. Rates assume there is no change in income start dates.

24 Client: John Age: 55 Status: Retiring at age 70 Concern: C oncerned about not having enough guaranteed income to cover fixed monthly expenses. Potential Solution: John is willing to allocate $25,000 each year for 10 years to guarantee a future income stream. Case Study For Training Purposes Only – Not To Be Used With The Public

25 CASE STUDY #1 – John (Age 55 purchase payments for 10 years) PurchasePayoutAnnual Income YearPaymentRatefor Life 1 $ 25, % $ 2, $ 25, % $ 2, $ 25, % $ 2, $ 25, % $ 2, $ 25, % $ 2, $ 25, % $ 2, $ 25, % $ 2, $ 25, % $ 2, $ 25, % $ 1, $ 25, % $ 1, All Income $ 250,000 $ 250, % $ 23, $ 23, Starts at Age 70 The Payout rate is the annual income amount as a percentage of the annual purchase payment. Rates are as of 3/14/2016 and are subject to change. All income to start at age 70. Case Study For Training Purposes Only – Not To Be Used With The Public 1 Exclusion Ratio is 61.1% - $9, is the taxable portion of the annual income

26 Suitability Suitability Guidelines include the following: Clients should have a goal of acquiring guaranteed income for life. Clients should understand the product is not liquid and once bought, can only be cancelled during the ‘free look’ period. Client must have sufficient liquid net worth after purchase, to meet future expenses. Generally, the annuity should not exceed 30% of the client’s liquid net worth. The effect future income payments will have on the client’s income tax status should be considered. Does the client have the need for the Death Benefit option where the return of premium is guaranteed (minus total of income payments made)?

27 Suitability For Training Purposes Only – Not To Be Used With The Public A Deferred Income Annuity Suitability Form must be completed, signed by the client and the agent and attached to the annuity application.

Longevity Annuity Prospecting 28 Client’s who have concern with outliving their assets Clients at or near retirement age seeking to create a supplemental guaranteed income stream in addition to Social Security Clients who want to allocate a portion of their retirement assets not subject to investment market fluctuations Clients who are looking to create a financial backstop in their retirement planning For Training Purposes Only – Not To Be Used With The Public

29 For additional information or questions, please contact ECA Marketing (800) For Training Purposes Only – Not To Be Used With The Public

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