Principal Growth Annuity and Flexible Premium Deferred Annuity

1. Principal Growth Annuity and Flexible Premium Deferred Annuity Product Training Module

2. PGA and FPDA Product Training Module • Principal Growth Annuity (PGA) • Product Overview • Surrender Schedules and Free Withdrawals • Flexible Premium Deferred Annuity (FPDA) • Product Overview • Surrender Schedule and Free Withdrawals • Suitability Analysis During the Sales Process • Compensation and Sales Support

3. Principal Growth Annuity Product Overview

4. PGA Overview The Principal Growth Annuity (PGA) is a flexible premium deferred annuity offering a one-year interest rate guarantee period and the choice of a five-, seven- or nine-year surrender charge period. Additional premium payments are accepted and credited with the rate in effect at the time of receipt; the crediting rate for additional premiums is also guaranteed for one year. At the end of the guarantee period, your client will benefit from competitive renewal rates based on the current interest rate environment and current market conditions. The Principal Growth Annuity offers a flexible set of features, including the acceptance of ongoing deposits through the life of the contract. This annuity is an ideal choice for a safety-focused saver who appreciates deposit flexibility, principal protection, tax-deferred growth and generous access to funds. Issue Ages – The PGA may be established for owners age 18-90; The maximum annuitant age for the PGA is 90. Single Annuitant and Single Owner – The Principal Growth Annuity series contract language does not allow for joint annuitants or joint owners. In the case of a 1035 exchange we will facilitate a joint owner. If one owner dies, the death benefit will be payable. Tax Qualified Options – This annuity may be established as an IRA (Traditional, Roth, or SEP), 403(b) Tax-Sheltered Annuity, or Qualified Pension. Non-qualified funds may also be used to establish the annuity.

5. PGA Overview Initial Premium – $5,000 is the minimum premium necessary to establish the contract. $1,000,000 is the maximum initial premium allowed for establishing a Principal Growth Annuity; higher amounts may be permitted with prior approval from the home office. Additional Premiums – Additional premium payments can be made through the life of the contract. Each additional premium can be no less than $1,000 and the maximum additional premiums made in any contract year cannot be greater than the initial contract year’s total premium amount, without prior home office approval. Additional premiums will be credited with the rate in effect at the time they are received, unless the additional premiums result from a rollover, transfer or exchange request that may benefit from an interest-rate lock. Rate Guarantees – Each annuity deposit will be credited an interest rate that is guaranteed for one year. After that guarantee period, each deposit will receive subsequent renewal rates based on the current economic and interest-rate environment. Additional premiums will receive the interest rate in effect at the time the deposit is received. The annuity contract is assigned a guaranteed minimum rate; renewal rates will never be set below this rate. Interest is calculated and credited daily. Interest Rate Bonus – Each deposit into the PGA is credited 1.00% additional interest for one year.

6. PGA Bailout Guarantee The Principal Growth Annuity (PGA) offers strong growth potential through competitive market interest rates. The Standard has a long-standing history of excellent fixed annuity performance and competitive renewal rates. Bailout Guarantee – Each deposit into the PGA is also assigned a bailout interest rate that is equal to 1.00% less than the initial rate. If a renewal rate ever is declared below that bailout rate, that portion of the account value may be withdrawn without a surrender charge (only while the rate is below the bailout rate). Principal Growth Annuity 5 Bailout Example – In the example below based on the PGA 5, 5.25% is guaranteed for year one and includes a 1.00% first-year bonus. If the interest rate credited in contract years two through five is lower than the corresponding bailout rate for that year, then your client may make withdrawals, transfers or surrender the contract without surrender charges.

7. PGA Surrender Schedules and Free Withdrawals

8. PGA Surrender Charge Schedules Unlike short-term savings products, deferred annuities are designed and priced for long-term retirement savings. Part of this design relies on the fact that the advantages of tax deferral work best when the annuity’s growth is allowed to compound over time. So, though all or a portion of the funds may be withdrawn at any time, early withdrawals are discouraged and are subject to surrender charges. Expressed as a percentage of the annuity’s total value, these charges diminish to zero over time. The schedule is in effect for only one period during the life of the contract and will not reset. Please note that the surrender charges are not part of or associated with any state or federal taxes imposed on a distribution or with the IRS pre-age-59 ½ tax penalty that may apply to a withdrawal. Surrender charges are in addition to any applicable state or federal taxes or penalties.

9. PGA Surrender Free Withdrawals • Scheduled Payments of Interest Earnings – After 30 days, regularly scheduled withdrawals of interest earnings may be made on a monthly, quarterly, semi-annual or annual basis. • 10% Annual Withdrawals – After the first contract year, your client may annually withdraw up to 10% of the annuity’s value (as of the end of the preceding contract year) without incurring a surrender charge. • IRS Required Minimum Distributions – If the contract is held as a tax-qualified plan, IRS Required Minimum Distributions may be made on the schedule requested. • Substantially Equal Periodic Payments (SEPP) – The SEPP option allows early-retirement (pre-age-59 ½) income without imposition of the IRS 10% early-withdrawal penalty or incurring a surrender charge. • Nursing Home Benefit - After the first contract year, if your client becomes a nursing home resident for 30 or more consecutive days, The Standard will waive surrender charges on all withdrawals, transfers and surrenders during the period of confinement. Written documentation is required. The nursing home waiver is not available in Massachusetts. • Terminal Condition Benefit – If your client is diagnosed with a terminal condition, The Standard will waive surrender charges on all withdrawals, transfers and surrenders. Written documentation is required. State-specific conditions apply to the terminal condition waiver. • Out of Surrender – After the end of the surrender period, your client may withdraw some or all of the Secured Rate Annuity funds without surrender charges. • Death Benefits -- Beginning immediately, upon the death of the owner or annuitant, the full annuity value is payable as death benefits to the named beneficiary.

10. PGA Surrender Free Withdrawals Available Income Options Include • Certain Period – A guaranteed income for a time period chosen (5, 10, 15, or 20 years). At any time, benefits may be commuted to a lump-sum payment. If the annuitant dies prior to the end of the period specified, payments continue to the beneficiary until the end of the period (or may be commuted to a lump-sum payment). • Life Income – A guaranteed income for as long as the annuitant lives. Payments will cease upon the death of the annuitant. • Life Income with Installment Refund – A guaranteed income as long as the annuitant lives. The total payments will never be less than the total of the funds paid to purchase this option. If the annuitant dies before receiving at least that amount, payments continue to the beneficiary until the full amount is repaid (or may be commuted to a lump-sum payment). • Life Income with Certain Period – A guaranteed income for as long as the annuitant lives. If the annuitant dies prior to the end of the period specified (5,10,15,or 20 years), payments continue to the beneficiary until the end of the period ( or may be commuted to a lump-sum payment).

11. PGA Surrender Free Withdrawals Available Income Options Include • Joint and Survivor Life Income – A guaranteed income for as long as both annuitants live. When either annuitant dies, payments will continue at 50%, 66 2/3%, 75% or 100% of the payments received when both were living. Payments will cease upon death of both annuitants. • Joint and Survivor Life Income with Installment Refund – A guaranteed income for as long as both annuitants live. The total payments will never be less than the total of the funds paid to purchase this option. If both annuitants die before receiving at least that amount, payments continue to the beneficiary until the full amount is repaid (or may be commuted to a lump-sum payment). • Joint and Survivor Life Income with Certain Period – A guaranteed income for as long as both annuitants live. When either annuitant dies, payments will continue at 100% of the payments received when both were living. If both annuitants die prior to the end of the period specified (5, 10, 15 or 20 years), payments continue to the beneficiary until the end of the period (or may be commuted to a lump-sum payment). • Joint and Contingent Survivor Life Income – A guaranteed income for as long as both annuitants live. If the primary annuitant dies first, payments will continue at 50% of the payments received when both were living. If the contingent annuitant dies first, payments will continue at 100% of the payments received when both were living. Payments will cease upon death of both annuitants.

12. Flexible Premium Deferred Annuity Overview and Key Product Features

13. FPDA Overview The Flexible Premium Deferred Annuity (FPDA) is a flexible premium deferred annuity offering a one-year interest rate guarantee period and a nine-year surrender charge period. Additional premium payments are accepted and credited with the rate in effect at the time of receipt; the crediting rate for additional premiums is also guaranteed for one year. At the end of the guarantee period, your client will benefit from competitive renewal rates based on the current interest rate environment and current market conditions. The Flexible Premium Deferred Annuity offers accommodating contribution modes and flexible withdrawal options. It is an ideal savings vehicle for those who want the ability to customize their retirement-savings strategy. The Flexible Premium Deferred Annuity is designed to optimize the growth potential of your client’s retirement savings while preserving capital – all without the risks associated with the investment markets. Issue Ages – The FPDA may be established for owners age 18-90; The maximum annuitant age for the FPDA is 90. Single Annuitant and Single Owner – The Flexible Premium Deferred Annuity contract language does not allow for joint annuitants or joint owners. In the case of a 1035 exchange we will facilitate a joint owner. If one owner dies, the death benefit will be payable. Tax Qualified Options – This annuity may be established as an IRA (Traditional, Roth, or SEP), 403(b) Tax-Sheltered Annuity, or Qualified Pension. Non-qualified funds may also be used to establish the annuity.

14. FPDA Overview Initial Premium – $600 first-year premium is the minimum necessary to establish the contract. $1,000,000 is the maximum initial premium allowed for establishing a Principal Growth Annuity; higher amounts may be permitted with prior approval from the home office. Also, CODs are allowed to assist with the setup of employer list billings. Additional Premiums – Once a Flexible Premium Deferred Annuity is established, your client may contribute additional premiums at any time, with an annual total of up to two times the prior year’s contributions. Additional premiums will be credited with the current interest rate in effect at the time of deposit, unless the additional premiums result from a rollover, transfer or exchange request that may benefit from an interest-rate lock. Fees – Non-qualified contracts valued less than $10,000 will be assessed a $25 fee annually. There are no fees on qualified contracts. Rate Guarantees – Each annuity deposit will be credited an interest rate that is guaranteed for one year. After that guarantee period, each deposit will receive subsequent renewal rates based on the current economic and interest-rate environment. Additional premiums will receive the interest rate in effect at the time the deposit is received. The annuity contract is assigned a guaranteed minimum rate; renewal rates will never be set below this rate. Interest is calculated and credited daily. Principal Guarantee – Principal is 100% guaranteed. Regardless of economic fluctuations at home or abroad, we guarantee that your client or the beneficiary will never receive less than total premium payments, less any previously scheduled withdrawals or outstanding loan balances.

15. FPDA Surrender Schedules and Free Withdrawals

16. FPDA Surrender Charge Schedule Because the Flexible Deferred Annuity is designed to perform best over the long term, if a client needs access to funds during the surrender-charge period (in excess of any free withdrawal provisions), a surrender charge is assessed according to the table below. Also, be sure to note that a unique contractual feature of the Flexible Deferred Annuity waives surrender charges if your client holds the contract for five years or more and attains the age of 59 1/2 . Expressed as a percentage of the annuity’s total value, surrender charges diminish to zero over time. The schedule is in effect for only one period during the life of the contract and will not reset. Please note that the surrender charges are not part of or associated with any state or federal taxes imposed on a distribution or with the IRS pre-age-59 ½ tax penalty that may apply to a withdrawal. Surrender charges are in addition to any applicable state or federal taxes or penalties.

17. FPDA Surrender Free Withdrawals • Scheduled Payments of Interest Earnings – After 30 days, regularly scheduled withdrawals of interest earnings may be made on a monthly, quarterly, semi-annual or annual basis. • 10% Annual Withdrawals – After the first contract year, your client may annually withdraw up to 10% of the annuity’s value (as of the end of the preceding contract year) without incurring a surrender charge. • IRS Required Minimum Distributions – If the contract is held as a tax-qualified plan, IRS Required Minimum Distributions may be made on the schedule requested. • Early Retirement Feature – Surrender charges are waived if your client holds the annuity contract for five years or more and attains the age of 59 ½. This feature makes the FPDA ideal for those clients who wish to retire early. • Substantially Equal Periodic Payments (SEPP) – The SEPP option allows early-retirement (pre-age-59 ½) income without imposition of the IRS 10% early-withdrawal penalty or incurring a surrender charge. • Nursing Home Benefit - After the first contract year, if your client becomes a nursing home resident for 30 or more consecutive days, The Standard will waive surrender charges on all withdrawals, transfers and surrenders during the period of confinement. Written documentation is required. The nursing home waiver is not available in Massachusetts. • Terminal Condition Benefit – If your client is diagnosed with a terminal condition, The Standard will waive surrender charges on all withdrawals, transfers and surrenders. Written documentation is required. State-specific conditions apply to the terminal condition waiver. • Out of Surrender – After the end of the surrender period, your client may withdraw some or all of the Secured Rate Annuity funds without surrender charges. • Death Benefits -- Beginning immediately, upon the death of the owner or annuitant, the full annuity value is payable as death benefits to the named beneficiary.

18. FPDA Surrender Free Withdrawals Annuitization – At any time the annuity may be converted to an income annuity with The Standard. Your client must choose a Lifetime Income option or a Period Certain option of five years or longer. Available Income Options Include • Certain Period – A guaranteed income for a time period chosen (5, 10, 15, or 20 years). At any time, benefits may be commuted to a lump-sum payment. If the annuitant dies prior to the end of the period specified, payments continue to the beneficiary until the end of the period (or may be commuted to a lump-sum payment). • Life Income – A guaranteed income for as long as the annuitant lives. Payments will cease upon the death of the annuitant. • Life Income with Installment Refund – A guaranteed income as long as the annuitant lives. The total payments will never be less than the total of the funds paid to purchase this option. If the annuitant dies before receiving at least that amount, payments continue to the beneficiary until the full amount is repaid (or may be commuted to a lump-sum payment). • Life Income with Certain Period – A guaranteed income for as long as the annuitant lives. If the annuitant dies prior to the end of the period specified (5,10,15,or 20 years), payments continue to the beneficiary until the end of the period ( or may be commuted to a lump-sum payment).

19. FPDA Surrender Free Withdrawals Available Income Options Include • Joint and Survivor Life Income – A guaranteed income for as long as both annuitants live. When either annuitant dies, payments will continue at 50%, 66 2/3%, 75% or 100% of the payments received when both were living. Payments will cease upon death of both annuitants. • Joint and Survivor Life Income with Installment Refund – A guaranteed income for as long as both annuitants live. The total payments will never be less than the total of the funds paid to purchase this option. If both annuitants die before receiving at least that amount, payments continue to the beneficiary until the full amount is repaid (or may be commuted to a lump-sum payment). • Joint and Survivor Life Income with Certain Period – A guaranteed income for as long as both annuitants live. When either annuitant dies, payments will continue at 100% of the payments received when both were living. If both annuitants die prior to the end of the period specified (5, 10, 15 or 20 years), payments continue to the beneficiary until the end of the period (or may be commuted to a lump-sum payment). • Joint and Contingent Survivor Life Income – A guaranteed income for as long as both annuitants live. If the primary annuitant dies first, payments will continue at 50% of the payments received when both were living. If the contingent annuitant dies first, payments will continue at 100% of the payments received when both were living. Payments will cease upon death of both annuitants.

20. Suitability Analysis During the Sales Process

21. Suitability Analysis During the Sales Process • Is the Product Right for Your Client? In recommending an annuity to a client, suitability regulations require a producer to have “reasonable grounds” to believe the recommended annuity is suitable for that particular client on the basis of facts disclosed by the client during the sales process. A producer should obtain and analyze the client’s: • Age • Annual Income • Financial Situation and Needs (including financial resources used to fund the annuity) • Financial Experience • Financial Objectives • Intended Use of the Annuity • Financial Time Horizon • Existing Assets (including investments and life insurance holdings) • Liquidity Needs • Liquid Net worth • Risk Tolerance • Tax Status

22. The Producer Must Have Reasonable Basis to Believe: As a result of a producer’s review of the previous, and analysis to determine suitability, the producer must have a “reasonable basis to believe:” • The client has been “reasonably informed of the various features of the annuity” – this includes the surrender charge amounts; potential tax penalties associated with the sale, exchange, surrender or annuitization of the annuity; mortality, expenses and investment advisory fees; potential charges for and features of riders; limitations on interest returns; insurance and investment components and market risk; • The client would benefit from certain features of the annuity, such as tax-deferred growth, annuitization, death benefits or living benefits; • The particular annuity as a whole, any index accounts to which funds are allocated at the time of purchase or exchange of the annuity, and any riders and similar product enhancements, are suitable for the client based on his/her suitability information; and • (If applicable) an exchange or replacement is suitable, taking into consideration whether the client: • Will incur a surrender charge, be subject to the commencement of a new surrender period, lose existing benefits (such as death, living or other contractual benefits), or be subject to increased fees, investment advisory fees or charges for riders and similar product enhancements; • Would benefit from product enhancements and improvements; and • Has had another annuity exchange or replacement and, in particular, an exchange or replacement within the preceding 36 months.

23. Compensation and Sales Support

24. Compensation • Commission Amounts • Consult your Annuity Commission Schedule for details • Commission Chargeback • Surrenders • 100% of the commission will be recaptured on contracts surrendered in the first six contract months • 50% of commission will be recaptured on contracts surrendered in the seventh to twelfth contract months • Death • There is no chargeback on death of an owner or annuitant except in those cases where the deceased was age 86 or older at contract issue, in which case the commission chargeback rules for surrenders apply • 100% of commission will be recaptured on death in the first six contract months • 50% of commission recaptured on death in the seventh to twelfth contract months

25. Sales Support • Please contact your NMO or our sales team • The Standard sales team phone: 800.378.4578 • The Standard sales team email alias: annsales@standard.com • Marketing Materials: www.standard.com/annuities • New Business Forms and Materials: www.standard.com/annuities • New Business Submission Annuity New Business, P5C The Standard PO Box 711 Portland, OR 97207-9971 • Street Address for Overnight Deliveries Annuity New Business, P5C The Standard 1100 SW Sixth Avenue Portland, OR 97204

26. Principal Growth Annuity and Flexible Premium Deferred Annuity Product Training Module