Index Annuity Basics

Investment Options Equities Fixed Income Cash

Investment Options Equities: Growth at Your Own Risk Mutual Funds ETF’s Stocks Variable Annuities Bond Funds

Investment Options Fixed Income: Protect Investment and Provide Income Bonds CDs Fixed Annuities Index Annuities

Index Annuities Protect 3 Year Hypothetical $100,000 Premium | 5% Cap | S&P 500 Start End 5.00% Cap Account Value 2000 2200 = 10.00% Increase 5.00% Growth $105,000 Start End 5.00% Cap Account Value 2200 1800 = 18.18% Loss 0.00% Growth $105,000 Start End 5.00% Cap Account Value 1800 2000 = 11.11% Increase 5.00% Growth $110,250 S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information is current as of 7/16/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Where would you be? Year S&P* Interest Credited Index Account Value 2008 -38.5% 0.00% $100,000 2009 +27.1% 5.00% $105,000 2010 +12.6% $110,250 2011 +2.1% 2.10% $112,565 2012 +13.3% $118,194 2013 +29.63% $124,103 2014 +11.4% $130,308 If the market declines all 7 years, you walk away with your original deposit of $100,000 S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information is current as of 7/16/2015.

Index Annuities Protect Who might be interested? Clients looking for: More potential on savings Correction protection Fixed income alternative

Index Annuities Protect Correction Protection Consider a $500,000 client portfolio fully invested in the market in 2004 $350,000 Index Annuity $850,000 2015 $500,000 2004 $500,000 Equities

Index Annuities Protect Correction Protection S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Correction Protection 2015: Assuming a 7% per year increasing market 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Correction Protection 2015: Assuming a 7% per year increasing market $850,000 $850,000 $350,000 Index Annuity Fully Invested 2015 $500,000 Equities S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Correction Protection 2015: Assuming a 7% per year increasing market $1,114,176 $1,080,825 $425,427 Index Annuity $1,080,825 Fully Invested: $1,114,176 ($ 33,351) Fully Invested 2018 $655,398 Equities S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Correction Protection 2015: Assuming a 25% correction, followed by 10% rebound years 12/1/2016 12/1/2017 12/1/2018 12/1/2019 12/1/2015 S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Correction Protection 2015: Assuming a 25% correction, followed by 10% rebound years $350,000 Index Annuity $850,000 Fully Invested 2015 $500,000 Equities S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Correction Protection 2015: Assuming a 25% correction, followed by 10% rebound years $904,294 $848,512 $405,169 Index Annuity $904,294 Fully Invested: $848,51 $ 55,782 $848,512 Fully Invested 2018 $499,169 Equities S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Correction Protection 2015: Assuming we grow another 10%, correct by 30%, and rebound 10% per year following 12/1/2015 12/1/2016 12/1/2017 12/1/2018 12/1/2019 S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Correction Protection 2015: Assuming we grow another 10%, correct by 30%, and rebound 10% per year following $350,000 Index Annuity $850,000 Fully Invested 2015 $500,000 Equities S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Protect Correction Protection 2015: Assuming we grow another 10%, correct by 30%, and rebound 10% per year following $871,019 $791,945 $405,169 Index Annuity $871,019 Fully Invested: $791,945 $ 79,074 Fully Invested 2018 $465,850 Equities S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 4/29/2015. Assumed market returns are hypothetical and are not indications of future performance.

Index Annuities Provide Income Fixed Income – Bond Alternative Utilize systematic withdrawals from an index annuity as a fixed income alternative.

Value Before Withdrawal Index Annuities Provide Income Where would you be? We are taking a 3% withdrawal (coupon) each year Year Beginning value S&P500 Interest Credited Value Before Withdrawal Withdrawal Ending Value 2008 $100,000 -38.50% 0.00% $3,000 $97,000 2009 27.10% 5.00% $101,850 $98,850 2010 $98,500 12.60% $103,793 $100,793 2011 2.10% $102,910 $99,910 2012 13.29% $104,906 $101,906 2013 29.60% $107,001 $104,001 2014 11.39% $109,201 $106,201 YTM based on this time period: 3.97% S&P500 returns were taken from www.yahoo.com. Cap rates are subject to change. Values are subject to the claims paying ability of the issuing insurance carrier. All information current as of 7/16/2015. “Fully invested in the market refers to the S&P500 index.

Index Annuities Provide Income Index Annuities GMWB Riders Guaranteed Lifetime Income Case Study: John, Age 57 Retirement in 10 Years Current Fixed Income: $250,000

Index Annuities Provide Income Case Study: John 57 – Retirement in 10 Years Fixed Income: $250,000 | Estimated Return 3% | 4% Withdrawal at age 67 Year Age Fixed Income Withdrawal GMWB 1 58 $257,500 $267,500 2 59 $265,225 $286,225 3 60 $273,182 $306,261 4 61 $281,377 $327,699 5 62 $289,819 $350,638 6 63 $298,513 $375,183 7 64 $307,468 $401,445 8 65 $316,693 $429,547 9 66 $326,193 $459,615 10 67 $335,979 $13,439 $491,788 $25,573

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