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Today’s Agenda

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 5.

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Today’s Agenda

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  1. Sales Ideas & Marketing Concepts …. That Work !!!Robert G. WilliamsVP of Annuity Training

  2. Today’s Agenda • How To CreateInterest • Which Crediting Method is Best

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

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

  5. Index Annuity Hypothetical Year (8%) $102,350 1 2 3 4 5 6 7 (5%) $104,755 (7%) $107,217 (0%) $109,737 (3%) $112,315 $114,955 (6%) (0%) Index Value Min Guar % $108,000 $113,400 $121,338 $121,338 $124,978 $132,477 $117,656 $132,477 Surrender Fee May Apply Surrender Fee Will Apply

  6. Index Annuity

  7. Sailing the Waters of theStock Market Poor Market Performance Market Index Financial Advisor

  8. Monthly AverageHow It Works S&P 500 1,000 13,200 ÷12 =1,100 -1,000 =100 ÷ 1,000 =10%

  9. Point to PointHow 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%

  10. Monthly AverageHow It Works S&P 500 1,000 13,200 ÷12 =1,100 1300 -1,000 =100 ÷ 1,000 =10% 900

  11. Monthly AverageHow It Works S&P 500 (Oct. 1, 2003) 1018.22 13,372.68 ÷12 = 1114.39 - 1018.22 = 96.17 ÷ 1018.22 = 9.44%

  12. Annual Point to PointHow It Works S&P 500 (Oct. 1, 2003) 1018.22 1131.50 - 1018.22 = 113.28 ÷ 1018.22 = 11.1%

  13. Calculating Monthly Point to Point Date S&P Value Oct. 1 1018.22 Nov. 3 1059.02 • Subtract the starting value from the current value • Divide the sum by the starting value • Record the Index Change and New Starting point for the next month 1059.02 – 1018.22 = 40.80 40.80 ÷ 1018.22 = 4.0% Index Change for 1st month = 4.0% Starting point for 2nd month = 1059.02

  14. Monthly Point to PointOne Year Option

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

  16. Monthly Point to PointOne Year Option

  17. 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

  18. 1991 S&P Performance

  19. 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%

  20. 1995 S&P Performance

  21. 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%

  22. 1998 S&P Performance

  23. 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%

  24. 2003 S&P Performance

  25. 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%

  26. 2004 S&P Performance

  27. 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%

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

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

  30. Index Annuity vs. Market Market Up? You Don't Lose! You Win! Market Down?

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

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