Yellow Pad - Index Annuities

Experience the Power of

Fixed Index Annuities

The “Yellow Pad” Presentation 11095 Viking Dr., Suite 230, Eden Prairie, MN 55344, 800-356-4189

Consider the advantages of a Fixed Index Annuity  Returns linked to an index  Return of principal  Liquidity features  Tax deferred growth  Safety

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The Strength of Tax Deferral  Earnings accumulate tax deferred  N o income taxes are due until the proceeds are taken out

AND the Power of Triple Compounding  Earn interest on your principal  Earn interest on the interest  E arn interest on the money you would have paid in taxes The “Yellow Pad” Presentation

Help Protect Yourself - With the safety and growth potential of a Fixed Index Annuity If you lost this much 10% 20% 30% 40% 50%

It could take this long to rebuild your nest egg assuming these hypothetical annual returns

at a 3% return 3.6 years 7.5 years 12 years 17 years 23.2 years

at a 6% return 1.8 years 3.7 years 6 years 8.6 years 11.6 years

at an 8% return 1.3 years 2.9 years 4.6 years 6.6 years 9 years

If you don’t have the recovery time that may be necessary, a Fixed Index Annuity may make sense for a portion of your money. These examples are hypothetical in nature and do not represent past or future results. The “Yellow Pad” Presentation

Popular Indices

(Examples of companies in the index) STANDARD & POOR’S 500 American Express Anheuser-Busch Coca-Cola Co. eBay Inc. Walt Disney Co. 3M Company Whirlpool Corp.

S&P 500® is a trademark of the McGraw- Hill Companies. Index annuities are not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing index annuities.

NASDAQ 100 Cisco Systems Dell Inc. Intel Microsoft Amazon.com Expedia Cephalon, Inc.

DOW JONES Home Depot Honeywell General Electric McDonalds Wal-mart DuPont

The Nasdaq-100® is a trademark of Dow Jones is a service mark of Dow The Nasdaq Stock Market, Inc. (which Jones & Company, Inc. Investment with its affiliates are the Corporations) products based on Dow Jones indexes are the product(s) have not been passed on not sponsored, endorsed, sold or promoted by the Corporations as to their legality by Dow Jones, and Dow Jones makes no or suitability. The product(s) are not representation regarding the advisability issued, endorsed, sold, or promoted by the of investing in such product(s). Inclusion Corporations. THE CORPORATIONS of a company in the Dow Jones indexes MAKE NO WARRANTIES AND BEAR NO does not in any way reflect an opinion of LIABILITY WITH RESPECT TO THE Dow Jones on the investment merits of PRODUCT(S). the company.

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Measuring the Gain Two common methods used  Annual Point to Point – Annual Reset  Monthly Point to Point – Annual Reset

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Annual Point to Point Examples:

Up Year

 Beginning index value: 1000  E nding index value on contract anniversary: 1117  Percentage of change: +11.70%  Annual cap: 7%  Your return is 7%

Down Year

 Beginning index value: 1000  E nding index value on contract anniversary: 900  Percentage of change: -10%  Annual cap: 7%  Your return is 0%

The annual cap varies depending upon the issuing insurance company. The 7% quoted is for illustrative purposes only and does not represent a specific insurance company.

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Monthly Point to Point Examples:

Up Year – assumed monthly cap is 3%

Month 1 Monthly index 2.3 change (%) Monthly cap (%) 3

2 1.6

Capped monthly change (%)

1.6

2.3

3 4 -3.2 -2.3

3

3

3

-3.2 -2.3

5 0.4

6 2.1

7 3.8

3

3

3

0.4

2.1

3

8 9 -3.3 2.4 3

3

-3.3 2.4

10 1.9

11 -1

12 4.2

3

3

3

1.9

-1

3

Your return is 6.9%



Down Year – assumed monthly cap is 3%

Month Monthly index change (%) Monthly cap (%) Capped monthly change (%)

1 2

2 -5.1

3 1

4 -3.2

5 -4

6 -1.2

7 4

8 1

9 0

10 -2.2

11 -5

12 1.3

3

3

3

3

3

3

3

3

3

3

3

3

2

-5.1

1

-3.2

-4

-1.2

3

1

0

-2.2

-5

1.3



Your return is 0%

On each monthly anniversary the index gain or loss percentage is calculated from the previous monthly anniversary index number. Percentage gains are recorded up to the cap, percentage losses are recorded with no cap. At the policy anniversary the recorded changes are added together, and if positive, that is the interest credit for the year. If the change is negative, there is no interest credited for the year.

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The Power of Annual Reset You may reduce your risk during the down years! Annual Point to Point – Annual Reset

$100,000 PAYMENT Market Fluctuation

VALUE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

26.7% 19.5% -12.7% -10.5% -23.4% 26.4% 9.0% 4.7% 11.6%

S+P 500 Index Fund $100,000 $126,700 $151,407 $132,178 $118,300 $90,618 $114,541 $124,850 $130,718 $145,881

Fixed Index Annuity $100,000 $108,000 $116,640 $116,640 $116,640 $116,640 $125,971 $136,049 $142,443 $153,839

100% Participation Rate • 8% Annual Cap • No Fee

Participation rate is defined as how much of the increase in the index will be used to calculate indexlinked interest. Annual Reset is defined as the index-linked interest, if any, is determined each year by comparing the index value at the end of the contract year with the index value at the start of the contract year. Interest is added to your annuity each year during the term.

The annual cap varies depending upon the issuing insurance company. The percentage quoted is for illustrative purposes only and does not represent a specific insurance company’s policy. Nor is it a guarantee of any kind.

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The Power of Annual Reset You may reduce your risk during the down years! Monthly Point to Point – Annual Reset

$100,000 PAYMENT Market Fluctuation

VALUE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

26.7% 19.5% -12.7% -10.5% -23.4% 26.4% 9.0% 4.7% 11.6%

S+P 500 Index Fund $100,000 $126,700 $151,407 $132,178 $118,300 $90,618 $114,541 $124,850 $130,718 $145,881

Fixed Index Annuity $100,000 $109,184 $117,141 $117,141 $117,141 $117,141 $134,059 $143,005 $143,005 $159,312

100% Participation Rate • 2.45% Monthly Cap • No Fee

Participation rate is defined as how much of the increase in the index will be used to calculate index-linked interest. Annual Reset is defined as the index-linked interest, if any, is determined each year by comparing the index value at the end of the contract year with the index value at the start of the contract year. Interest is added to your annuity each year during the term.

The monthly cap varies depending upon the issuing insurance company. The percentage quoted is for illustrative purposes only and does not represent a specific insurance company’s policy. Nor is it a guarantee of any kind.

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The Safety of Fixed Index Annuities All fixed index annuities are backed by the claims paying ability of the insurance company offering them. The insurance companies are subject to strict guidelines established by the National Insurance Commissioners and must strive to conservatively invest the premium funds to provide a minimum return. Additionally, individual states may require insurance companies doing business in their state to contribute to the Life and Health Guaranty Association which helps should an insurance company fail to meet the obligations of their contract holders, up to the guidelines published by the state.

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Notes:

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This presentation was created by ECA Marketing for our Independant Agency Network. This presentation cannot be modified or altered outside its original version without written consent of ECA Marketing and National Financial Partners.

The “Yellow Pad” Presentation 11095 Viking Dr., Suite 230, Eden Prairie, MN 55344, 800-356-4189

10631-2202008