Positioning Fixed/Indexed Annuities GROWTH SAVINGS

Common Objections to Fixed/Indexed Annuities: Not Enough Education – Products are Complicated Variable Annuities/Other Investment Options Provide More Earnings Potential Uncertain as to Where it Fits Low Rates/Limited Upside Market is Going Strong

Common Objections to Fixed/Indexed Annuities: Not Enough Education – Products are Complicated

Crediting Interest: Understanding the Cap Account Value Start End 5.00% Cap 1500 1740 = 16% Increase 5.00% Growth $105,000 Crediting Interest: Understanding the Cap Account Value Start End 4.00% Cap

Indexed Annuity: Locking in Interest Account Value Start End 5.00% Cap 1500 1740 = 16% Increase 5.00% Growth $105,000 Account Value Start End 5.00% Cap 1740 1513 = 13% Loss 0% Growth $105,000 Indexed Annuity: Locking in Interest

Annual Reset: Resets Index Price Each Year Account Value Start End 5.00% Cap 1500 1740 = 16% Increase 5.00% Growth $105,000 Account Value Start End 5.00% Cap 1740 1513 = 13% Loss 0% Growth $105,000 Account Value Start End 5.00% Cap 1513 1650 = 9% Increase 5.00% Growth $110,250 Annual Reset: Resets Index Price Each Year

Positioning Fixed/Indexed Annuities in Client Portfolios Common Objections to Fixed/Indexed Annuities: Variable Annuities/Other Investment Options Provide More Earnings Potential

Positioning Fixed/Indexed Annuities in Client Portfolios Variable Annuities/Other Investments vs. Indexed Annuities Perception: Variable Annuities provide much more upside potential than Indexed Annuities while providing safety through withdrawal benefits Comparing 3 Parts: Growth: How Interest is Earned Safety: What Methods are Used in Protecting Assets Income: Withdrawal Benefits

Positioning Fixed/Indexed Annuities in Client Portfolios Upside Potential $100,000 Premium Variable Annuity S&P 500  16% Subtract Fee = 3% Hypothetical Value $113,000 Indexed Annuity S&P 500  16% Limited by Cap = 5.00% Hypothetical Value $105,000 Value “Locked-In”

Positioning Fixed/Indexed Annuities in Client Portfolios Safety: Principal Protection $100,000 Premium Variable Annuity S&P 500  13% Subtract Fee = 3% Hypothetical Value $84,000 Indexed Annuity S&P 500  13% No Fee = 0% Hypothetical Value $100,000

Positioning Fixed/Indexed Annuities in Client Portfolios Safety: Withdrawal Benefits $100,000 Premium Variable Annuity S&P 500  13% Subtract Fee = 3% Hypothetical Value $84,000 Indexed Annuity S&P 500  13% No Fee = 0% Hypothetical Value $100,000 Safe = $5,000/Yr. as Income Safe = $100,000

Positioning Fixed/Indexed Annuities in Client Portfolios Safety: Withdrawal Benefits Withdrawal Benefits Do Not Protect Principal May Provide an Income that the Client Does Not Need or May Not Desire Step Ups are Often Confused with Growth Potential Portability Issue (Partial W/D or Transfers): Rates Up, Market Down

Positioning Fixed/Indexed Annuities in Client Portfolios Common Objections to Fixed/Indexed Annuities: Uncertain as to Where it Fits

Positioning Fixed/Indexed Annuities in Client Portfolios GROWTH SAVINGS

Positioning Fixed/Indexed Annuities in Client Portfolios Investment Options Variable Annuities Mutual Funds Bonds REITS Stocks Alternative Investments GROWTH INCOME GROWTH SAVINGS SAVINGS

Positioning Fixed/Indexed Annuities in Client Portfolios Savings Options Savings Accounts Money Markets CD’s Fixed Annuities Indexed Annuities GROWTH SAVINGS

Positioning Fixed/Indexed Annuities in Client Portfolios Income Vehicles Variable Annuity Indexed Annuity SPIA REITS Bonds Portfolio Withdrawal INCOME GROWTH SAVINGS

Positioning Fixed/Indexed Annuities in Client Portfolios Income: Comparing Withdrawal Benefits Very Similar in Design Both Provide Guaranteed Income Variable Annuity Provides for Step Ups Indexed Annuities Provide Higher Guaranteed Income No Guaranteed Growth

Positioning Fixed/Indexed Annuities in Client Portfolios Indexed Annuities May Fit When the Goal is to: Protect Principal from Loss Lock in Market Performance Provide Higher Earning Potential Than Other Savings Vehicles GROWTH SAVINGS

Positioning Fixed/Indexed Annuities in Client Portfolios Indexed Annuities May Fit When the Goal is to: Protect Principal from Loss Lock in Market Performance Provide Higher Earning Potential Than Other Savings Vehicles INCOME GROWTH SAVINGS 4. Provides High Guaranteed Income Strategy

Positioning Fixed/Indexed Annuities in Client Portfolios Common Objections to Fixed/Indexed Annuities: Low Rates/Limited Upside Competes Well With Other “Savings” Vehicles: Best Local 5 Year CD: .75% Goal Is Not to Lose Market is Going Strong Great Opportunity for “Financial Health” Discussion Correction Protection Market is Going Strong: Segway to Financial Check-Up

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Common Objections to Fixed/Indexed Annuities: Products are Complicated – Keep it Simple Variable Annuities/Other Investment Options Provide More Earnings Potential – Yes They Do Uncertain as to Where it Fits – Safe Money Alternative Low Rates/Limited Upside – Compared to What? Market is Going Strong – Great Time to Talk!

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