For financial adviser use only Flexible Guarantee Bond It’s not your average investment bond

Great features for your clients Our Flexible Guarantee Bond offers the following: 2 An investment solution from LV= Capital guarantee, buy anytime Ability to lock in gains Guaranteed minimum death and terminal illness benefit Guarantee available on three fund options Can buy a new guarantee when one expires, for life Potential for mutual bonuses to be added, on top of normal returns £ Benefits Averaging approach, for a smoother return Competitive AMC

Available for ages 17 or over (lives assured from 3 months to 89 years) Invest between £5,000 and £500,000 Option to buy a guarantee over a range of terms at any time to protect capital or lock in growth Guarantee options available for the lifetime of the bond Open-ended (recommend investing for at least five years) Freedom to switch between three fund options to help meet changing investment needs Choice of ad-hoc and regular withdrawals  monthly, quarterly, half-yearly or yearly  first 5% of amount invested, or rolled up 5% allowance, withdrawn each bond year = no income tax payable at that time Range of adviser charging options Flexibility 3

No nasty surprises 100% allocation across all ages Annual management charge  Based on the bond value (including any mutual bonus) at the time the charge is taken and deducted monthly: No initial, establishment or exit charges Fund switches  the first three each bond year are free of charge  £25 charge for each additional switch Transparent charging 4

Key benefits Can buy at the start, at any time after, or replace an existing one any time Protects the value of the bond Range of terms available (5-10 years) Lock in gains by buying a new guarantee There’s no need to cash in at end of the guarantee term  We automatically add units to make up any shortfall  Any units we add continue to participate in bond performance (but the value isn’t guaranteed, unless your client buys another guarantee) When the guarantee ends, a new one can be bought  We’ll always offer at least a ten year guarantee on all three fund options for the lifetime of the bond  If your client cashes in the bond before the guarantee date, they’ll get the value of the bond at the date of withdrawal Future advice and added value opportunities Capital guarantee option 5

Wide range of terms and competitive charges Our guarantee charges and available terms can change over time However, once bought, the charge remains the same throughout the guarantee term We commit to always offer at least a 10 year guarantee option on all three funds Current guarantee charges and terms* 6 *As at 28/02/2014. Quoted charges are annual figures.

Let’s take a look at some ways to use our bond: Investment protection  Fit with capacity for loss requirements. Provide potential for countering inflation impacts with the certainty provided by capital guarantee options and potential for mutual bonuses Life stage adaptability  Fit with life stage e.g. requiring lower risk in retirement or if reserving funds for planned expenses, such as school/university fees Growth lock-in  Instigate a growth lock-in strategy with periodic reviews to assess opportunity to secure growth achieved (apart from the guarantee charge, there is no charge for buying a new guarantee once a bond year. A charge of £25 thereafter is applied) IHT planning  Provides additional certainty to investors and trustees, whilst the bond structure eases the administration for trustees (for those up to age 79 at outset, a minimum death benefit guarantee applies for no extra charge, irrespective of whether a capital guarantee has been bought) Tax planning  Bond structure allows tax planning opportunities, particularly for Higher Rate Taxpayers Typical uses 7

LV= a compelling choice The UK’s largest friendly society Proudly ‘mutual’, with no shareholders eating into profits £11.4bn assets under management³ Rated B+ (very strong) overall rating for financial strength 1 Our main with-profits fund is rated 10/10 for financial strength, investment freedom, flexibility and bonus-paying ability 2 Over 5 million members & customers³ Looking after members since 1843 Who backs the guarantee? Our guarantees are backed wholly by the strength of Liverpool Victoria Friendly Society (LVFS) The reserves to cover the guarantees are held in our main With-Profits fund, outside of the individual fund options Financially strong and stable Main with-profits fund rated 10/10 by Cazalet Consulting 8 Sources: 1. AKG Consultation Company Profile & Financial Strength report, July Cazalet Consulting With Profits ratings, July As at 31 December 2013

A range of options to suit you and your clients: Adviser charging options 9 Initial adviser charge  £ amount, % of cheque amount  Paid before the remainder is invested in the bond Ongoing adviser charge  £ amount, % of initial premium, % of fund (excluding mutual bonus)  Monthly, quarterly, half-yearly, yearly  Treated as withdrawals Ad-hoc adviser charge  £ amount, % of fund value (excluding mutual bonus)  Treated as withdrawals

Choose one of three funds Mix of equities, commercial property, fixed interest, cash Money is invested in the LV= with-profits fund Latest asset mixes available online Unlimited fund switches Actively managed by Threadneedle Investments Investment information Investment choices 10 Cautious Series 2 Balanced Series 2 Managed Growth *benchmark asset split

What does it do? Designed to provide a smoother, more consistent return Can reduce the extent of underlying falls in value, however, unsmoothed funds will reflect increases in the market more quickly than smoothed funds Average value (‘Averaged Price’) of bond assets over the preceding 26 weeks Real value of underlying assets (‘Underlying Price’) used for the first 26 weeks No Market Value Reductions Fund protection only if Underlying Price falls below 80% of the Averaged Price Averaging in action The graph below illustrates how the effect of averaging can work in practice, showing both the underlying and averaged prices over a period of time. The prices and timeframes are used purely to display the effect of averaging. They are not based on real past performance nor are they a guide to future performance. Averaging approach 11

It’s great being a mutual Here’s some information about our mutual bonus: Rewards qualifying members for their ownership of LV= Launched in 2011, we’d like to be able to add a 1% bonus each year Increases the amount we pay when your clients decide to fully cash in their bond, if they die or become terminally ill It’s a pure addition, on top of the normal returns applied to the bond Invested in the same fund option as the main bond It doesn’t get taken into account when we assess how much we uplift the bond by if it’s lower in value at the end of the guarantee term (if chosen) Please note that the mutual bonus may be reduced or taken away. However, we’d only do this in exceptional circumstances. Mutual bonus 12

Member discounts All of our members qualify for discounts on a range of LV=‘s general insurance products including: Car insurance  Save up to 10% on regular non-member rates Home insurance  Save up to 10% on regular non-member rates Member support Our Member Care Line offers free access to confidential advice and support from qualified professionals 24 hours a day, 7 days a week, including: Health, medical and lifestyle questions  Provided by a team of qualified nurses who offer advice and guidance Counselling  The Member Care Line has trained and experienced counsellors on hand to take calls anytime, day or night Legal questions and disputes  Members can seek advice from a team of experienced solicitors and legal executives Member benefits 13

We’re here to make life easier for you Personalised quotes  Either from our quotes hotline  Or contact your dedicated account manager Dedicated website  Order customer packs  View, download and order a range of web-friendly customer guides and adviser sales aids  Loan Trusts, Gift Trusts and guides  Suitability report paragraphs Personal support  Team of dedicated account managers  Sales support for quotes and information Support for you 14 Contact Us Phone: Visit:

Important notes This is for financial advisers only Not to be used after 31 March 2015 This presentation is based on our understanding of current legislation as at August 2013 applicable in England and Wales and HM Revenue & Customs practice which may change in the future. We cannot accept responsibility for any action arising as a result of the information contained in this presentation. Liverpool Victoria Friendly Society Limited, Keynes House Tilehouse Street, Hitchin, Herts, SG5 2DX. LV= is a registered trademark of Liverpool Victoria Friendly Society Limited (LVFS) and is a trading style of the Liverpool Victoria group of companies. LVFS is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number Registered address: County Gates, Bournemouth BH1 2NF. Tel: /14 15

Thank you for your time Name Address Tel: LV.com