1. SecureLiving® Index Annuities as a Fixed Income Alternative
Add Stability; Reduce Volatility
Issued By:
Genworth Life and Annuity Insurance Company
For Producer/Agent Use Only – Not to be Reproduced or Shown to the Public
/21/13
©2013 Genworth Financial, Inc. All rights reserved.

2. Traditional Retirement Planning
Typical Advice Recommends:
Diversified Portfolio Example Allocation
60% Equities / 40% Fixed Income, Cash & Alternatives
Since 2007:
$1.2 Trillion of Net Flows into Bond Mutual Funds & ETFs1
Solving for:
Source of interest income for your retirement portfolio
Diversification to reduce risk
Better yield opportunities
The reason many portfolios include a fixed income component is to solve for three client needs:
Source of interest income for your retirement portfolio
Diversification to reduce risk
Better yield opportunities
The question we need to ask is can different tools be used to accomplish these goals. We believe the answer is yes.
1 ICI.org, Total Bond Fund Net Flows Jan 2007-Aug 2013
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3. Traditional Approach Requires Review
"The problem with today’s fixed income universe is traditional fixed income strategies are overly reliant on falling interest rates and exposures to government-related securities for their returns.
Such strategies made sense when those two features supported returns; now they detract.
A period of continued “normalization” of interest rates (recalling the Fed defines its longer-run “normal” rate for the short end of the yield curve at 4 to 4.5%) suggests more losses in terms of annual returns to come in the future from traditional “core” fixed income investing."
- BlackRock, Fixed Income Market Strategy, September, 2013 (with emphasis added)
Market Volatility
"As of 6/30, a 0.43% rise in interest rates would wipe out an entire year's interest.“ (source:
Source: Barclays. Based on yield and duration of the Barclays US Aggregate Bond Index as of 6/30/13. Approximation does not take into account potential changes to market credit spreads.
It is important to note that rising interest rates will affect the current price of the bond, however, a rise in interest rates will have no affect if the bond is held to maturity, as the bond owner will receive 100% of the principal back.
Fixed Income Alternative For Producer/Agent Use Only

4. Need for Fixed Income Alternatives
With Yields Potentially On the Rise, Significant Portfolio Value At Risk
Interest Rate Risk Much Higher Now Than During the Past 30 Years
FINRA Warning Consumers to Be Careful of Interest Rate and Duration Risk2
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2 FINRA, Duration – What an Interest Rate Hike Could Do to Your Bond Portfolio, 03/2013
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5. Declining Average Yield
Over the past 30 years, interest rates have generally declined, making bond mutual funds a solid choice for adding diversification and total return to a portfolio . With interest rate beginning to rise, it is important to understand how this could potentially change the outcome for the client.
Barcap: US Aggregate, 1/1/76 through 7/1/13
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6. Declining Interest Rates Benefited Returns
In a falling interest rate environment, fund returns exceeded the coupon due to the falling rate environment, The falling rate environment , on average, resulted in returns greater than the average coupon during that time period.
So as interest rates rise, what was a tailwind increasing total returns, may become a headwind, a drag on total returns.
Source: Barcap Aggregate Monthly, Investment Grade, 10-Year Returns
Fixed Income Alternative For Producer/Agent Use Only

7. Safeguarding Fixed Income Assets
SecureLiving® Index Annuities:
Safeguarding Fixed Income Assets
Fixed Income Alternative For Producer/Agent Use Only

8. Consumer-Use Sales Tool
Customize with your information
Give directly to consumer
Quick Compare of SecureLiving® Index 7 with Intermediate Term Bond Fund
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Fixed Income Alternative For Producer/Agent Use Only

9. Quick Comparison Snapshot
2 Based on the asset-weighted
statistics for three large intermediate
term bond mutual funds as of
7/26/13. SecureLiving Index 7
annual cap and fixed rate for
$100,000 premium, current as
of 8/1/13. The characteristics of bond
funds described here are general
in nature and are not intended to
represent any specific bond fund.
3 FINRA, Duration – What an Interest
Rate Hike Could Do to Your Bond
Portfolio, 03/2013
4 In addition to the surrender charge,
if excess withdrawals or contract
surrenders occur during the
surrender charge period, a Market
Value adjustment (MVA) will also
apply. Generally, in an increasing
interest rate environment, the
MVA could further reduce the
remaining contract value.
Conversely, a decreasing interest
rate environment could have a
positive impact to the contract
value paid back to the owner.
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Fixed Income Alternative For Producer/Agent Use Only

10. Potential for Additional Tax Benefits
Taxes on interest deferred until withdrawn
Interest earned is not counted as income for Social Security taxation purposes until withdrawn
Tax deferred growth in an annuity does not increase Modified Adjusted Gross Income (MAGI)
Annuity interest income does not impact the calculation of 3.8% Healthcare Surtax
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There is no additional tax deferral benefit for annuities purchased in an IRA, or any other tax-qualified plan, since these plans are already afforded tax-deferred status. The other benefits and costs should be carefully considered before purchasing an annuity in a tax-qualified plan.
Fixed Income Alternative For Producer/Agent Use Only

11. Issued by Genworth Life and Annuity Insurance Company, Richmond, VA
SecureLiving® Index 7 individual single premium deferred annuity
with market value adjustment and optional index interest crediting is
issued by Genworth Life and Annuity Insurance Company, policy form
series GA , GA301R-0312 and ICC12GA301R et. al. Products
and/or riders may not be available in all states or markets. Features and
benefits may also vary by state or market.
All guarantees are based on the claims-paying ability of Genworth Life
& Annuity.
The discussion of tax treatments in this material is Genworth’s
interpretation of current tax law and is not intended as tax advice. You
should consult your tax professional regarding your specific situation.
Withdrawals may be taxable and a 10% federal penalty may apply to
withdrawals taken before age 59½.
Although the contract value may be affected by the performance of an index, the contract is not a security and does not directly or indirectly participate in any stock or equity investment including but not limited to, any divided payment attributable to any such stock or equity investment.
The S&P 500® Index is a price index and does not reflect dividends
paid on the underlying stocks. The S&P 500® Index is a product of
S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use
by Genworth Life and Annuity Insurance Company and Genworth Life
Insurance Company hereinafter referred to as “Licensee”. Standard &
Poor’s®, S&P®, and S&P 500® a reregistered trademarks of Standard
& Poor’s Financial Services LLC (“S&P”) and these trademarks have
been licensed for use by SPDJI and sublicensed for certain purposes by
Licensee. Licensee Fixed Index Annuity Product(s) are not sponsored,
endorsed, sold or promoted by SPDJI, S&P, or their respective affiliates,
and none of such parties make any representation regarding the
advisability of investing in such product(s) nor do they have any liability
for any errors, omissions, or interruptions of the S&P 500® Index.
Although the contract value may be affected by the performance of an
index, the contract is not a security and does not directly or indirectly
participate in any stock or equity investment including but not limited
to, any dividend payment attributable to any such stock or equity
investment.
This is a brief product description. Consult the annuity contract for
a detailed description of benefits, limitations, and restrictions. The
contract terms and provisions will prevail.
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