Sales Ideas & Marketing Concepts …. That Work !!! Robert G. Williams VP of Annuity Training

Today’s Agenda How To Create Interest Which Crediting Method is Best

Index Annuity How Does it Really Work? The Stairway to Financial Peace of Mind $$$$ Year 1 Year 2 Year 3 Year 4 Year 5Year 6

Annual Reset locks in the gain. $100,000 Index Rises 10% 8% Cap Index Account $108,000 Index Falls 10% Index Gains Locked IN $108,000 Index Rises 10% 8% Cap Index account $116,640 Index Falls 10% What happens next year? Hypothetical Annual Reset Protection Potential $

Index Annuity Hypothetical Year $124,978 $121,338 $113,400 $108,000 Index Value Surrender Fee May Apply (3%) (7%) (5%) (8%) (6%) $132,477 Surrender Fee Will Apply Min Guar % $109,737 $107,217 $104,755 $102,350 $112,315 $114,955 (0%) $132,477 $117,656

Index Annuity YearIndex Acc’tMGSV Index Acc’t No Market Gains 1 (8%)$108,000$102,350$100,000 2 (5%)$113,400$104,755$100,000 3 (7%)$121,338$107,217$100,000 4 (0%)$121,338$109,737$100,000 5 (3%)$124,978$112,315$100,000 6 (6%)$132,477$114,955$100,000 7 (0%)$132,477$117,656$100,000

Sailing the Waters of the Stock Market Market IndexFinancial Advisor Poor Market Performance

Monthly Average How It Works S&P 500 1,000 13,200 ÷12 =1,100 -1,000 =100 ÷ 1,000 =10%

Point to Point How It Works S&P 500 or Dow 30 April 1, xx =1,000 March 31, xx =1,100 1,100 -1,000 =100 ÷ 1,000 =10%

Monthly Average How It Works S&P 500 1,000 13,200 ÷12 =1,100 -1,000 =100 ÷ 1,000 =10%

Monthly Average How It Works S&P 500 (Oct. 1, 2003) , ÷12 = = ÷ = 9.44%

Annual Point to Point How It Works S&P 500 (Oct. 1, 2003) = ÷ = 11.1%

Calculating Monthly Point to Point Subtract the starting value from the current value DateS&P Value Oct Nov – = Divide the sum by the starting value Record the Index Change and New Starting point for the next month ÷ = 4.0% Index Change for 1st month = 4.0% Starting point for 2nd month =

Monthly Point to Point One Year Option DateS&P Closing ValuePercentage ChangeCapped Increase* October 1, % November 3, %3.00% December 1, % January 2, %3.00% February 2, % March 1, % April 1, % May 3, % June 1, % July 1, % August 2, % September 1, % October 1, % First Year Credited Rate 9.23% *3%Cap

Which Was PROBABLY More Beneficial To Consumer Monthly Point to Point…9.23% Monthly Average…9.44% Annual Point to Point…11.1%

Monthly Point to Point One Year Option DateS&P Closing ValuePercentage ChangeCapped Increase* October 1, % November 3, %3.00% December 1, % January 2, %3.00% February 2, % March 1, % April 1, % May 3, %-1.29% (+1%) June 1, % July 1, % August 2, %-1.98% (+1%) September 1, % October 1, % First Year Credited Rate 9.23% (+14.5%) *3%Cap

Index Crediting Assumptions Monthly Point to Point Cap…3% Monthly Average Cap…10% Annual Point to Point Cap…9% Closing Prices on First Business Day of each Month

1991 S&P Performance DatesIndex numberMonthly ChangeAccrued January February %3.00% March %3.00% April % May % June %3.00% July % August %3.00% September % October % November % December % January %3.00%

Index Crediting Assumptions Monthly Point to Point Total…24.69% 3% Monthly Cap Total…9.29% Credited Amount…9.29% Monthly Annual Average…15.54% 10% Annual Cap Credited…10.00% Annual Point to Point …26.30% 9% Annual Cap Credited…9.00%

1995 S&P Performance DatesIndex numberMonthly ChangeAccrued January February % March %3.00% April % May % June %3.00% July % August %3.00% September % October %3.00% November % December %3.00% January %

Index Crediting Assumptions Monthly Point to Point Total…29.84% 3% Monthly Cap Total…26.32% Credited Amount…26.32% Monthly Annual Average…19.09% 10% Annual Cap Credited…10.00% Annual Point to Point …34.13% 9% Annual Cap Credited…9.00%

1998 S&P Performance DatesIndex numberMonthly ChangeAccrued January February % March1, %3.00% April1, %3.00% May1, % June1, % July1, %3.00% August1, % September % October1, %3.00% November1, %3.00% December1, %3.00% January1, %3.00%

Index Crediting Assumptions Monthly Point to Point Total…26.10% 3% Monthly Cap Total…5.30% Credited Amount…5.30% Monthly Annual Average…12.10% 10% Annual Cap Credited…10.00% Annual Point to Point …26.67% 9% Annual Cap Credited…9.00%

2003 S&P Performance DatesIndex numberMonthly ChangeAccrued January February % March % April % May %3.00% June %3.00% July % August % September1, % October % November1, %3.00% December1, % January1, %3.00%

Index Crediting Assumptions Monthly Point to Point Total…24.22% 3% Monthly Cap Total…12.45% Credited Amount…12.45% Monthly Annual Average…10.01% 10% Annual Cap Credited…10.00% Annual Point to Point …26.38% 9% Annual Cap Credited…9.00%

2004 S&P Performance DatesIndex numberMonthly ChangeAccrued January1, February1, % March1, % April1, % May1, % June1, % July1, % August1, % September1, % October1, ,51%0.51% November1, % December1, %3.00% January1, %3.00%

Index Crediting Assumptions Monthly Point to Point Total…9.34% 3% Monthly Cap Total…8.15% Credited Amount…8.15% Monthly Annual Average…2.46% 10% Annual Cap Credited…2.46% Annual Point to Point …9.48% 9% Annual Cap Credited…9.00%

Potential vs. Protection -40%0%+40%+20%-20% INVESTMENT INDEX ANNUITY $$

Why Index Annuities + 40% - 40% +2.35% Investments Savings Program Participate in all or a portion of the S&P and/or DJIA $

Index Annuity vs. Market

And, of course…. Thanks for your business……..