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Protective Life Annuity Strategy 2007. Terry Keyes, ChFC National Sales Director Annuities. Model of Distribution. Non-registered Annuities SPIA Index MYGA Registered Annuities Registered MYGA Fixed Annuity Three variable annuities (Class A, B, and C share).

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Protective life annuity strategy 2007

Protective Life Annuity Strategy2007

Terry Keyes, ChFC

National Sales Director


Model of distribution
Model of Distribution

  • Non-registered Annuities




  • Registered Annuities

    Registered MYGA Fixed Annuity

    Three variable annuities (Class A, B, and C share)

Medically underwritten immediate annuities
Medically Underwritten Immediate Annuities

  • Retirees in poor health are limited in how much they benefit from Immediate Annuities based on “normal” life expectancy

  • Underwritten Immediate Annuities “adjust” a client’s age to match his or her life expectancy based on medical history

  • A 65-year-old male may be adjusted to age 75

    • At age 65 he will get the same annual payout as a 75-year-old

Hypothetical performance comparison fixed investment cash flow
Hypothetical Performance Comparison Fixed Investment Cash Flow

Calculations based on male age 65 with rated up age of 75; 5% fixed rate return, $500,000 invested, Single life only payout as of 4/01/07 and is subject to change. Current rates may be higher or lower.

The fixed rate plus account
The Fixed Rate Plus Account

Provides both a fixed rate of interestAND the opportunity to earn indexed interest

Each Contract Year

Fixed Interest Rate

Indexed Interest


Depending on the performance of the S&P 500 Index during the prior contract year

Laddering maturities with fixed annuities
Laddering Maturities with fixed annuities

  • Choose any numbers of buckets from 2-10 years.

  • All the buckets that add up to over $100,000 will get a premium bonus on the whole contract.

  • All additional premium will qualify for the premium bonus.

  • Allows clients to have money renewing every few years to go into potential higher interest rate terms.

Registered products
Registered Products

  • Prosaver Platinum (MVA)

    • 3,4,5,6,7,8,9,10, and 15 year guarantees

    • Bonus Rates on deposits of $100,000.

    • Bond/CD alternative

    • Top Selling Annuity at Protective Life

    • Could be used as a door opener to get into Broker Dealers

    • Among the most competitive interest rates in the industry

    • Low commission product

Registered products1
Registered Products

  • Rewards B2A Story

  • Accumulation Rewards

  • Attractive Sub Account Options

  • Persistency Rewards

  • Competitive Charges and Fees

Fees matter

Includes the cost of a standard death benefit—whether or not the client wants it


Gives clients the flexibility to purchase a death benefit—if they need it. For example, the CoverPay Fee Option for the Return of Purchase Payment death benefit can be added for 0.10% (annualized) of the value of the death benefit.

ProtectiveRewardsSM B2A numbers do not reflect persistency rewards. If reflected, numbers would be higher.

This example is for illustrative purposes only and is not representative of any current or future investment results of the Protective RewardsSM B2A variable annuity. Actual results may be higher or lower. Assumes $100,000 contribution, 8% annual return, and M&E charge and administration fee of 1.395% for the top 10 non-group VA contracts and an M&E charge and administrative fee of 1.05% for ProtectiveRewardsSM B2A. The top 10 non-group VA contracts average also includes a standard death benefit, which may be greater than the contract value. The death benefit in the ProtectiveRewardsSM B2A example above would be equal to the contract value.

Fees Matter

Registered products the new sizzle
Registered Products- The New Sizzle not the client wants it

  • The Secure Pay Withdrawal Benefit

    • Protective’s new Guaranteed Minimum Withdrawal Benefit

    • Innovative RightTimesmoption

    • Lifetime withdrawal benefits up to 7%

    • Unique medical evaluation and underwriting option

    • Package of options creates flexibility

Benefit base
Benefit Base not the client wants it

  • At issue

    • Initial purchase payment

      • plus any additional purchase payments within 2 years the issue

      • minus any proportional withdrawals

    • Additional purchase payments may be made after the two year window

      • not included in Benefit Base

    • No additional purchase payments once withdrawals begin

    • Capped at $5 million

Annual withdrawal amounts
Annual Withdrawal Amounts not the client wants it

Step up provision
Step-Up Provision not the client wants it

  • Begins on first contract anniversary following addition of the rider

  • A “step-up” occurs when

    • The SecurePay anniversary value is greater than the Benefit Base on the previous anniversary

    • SecurePay anniversary value = contract value minus any purchase payments made more than two years after the benefit election date

    • Locked in at maximum SecurePay anniversary value

  • Step-ups cease when

    • Covered person attains age 95

    • Owner declines any increase in the charge of the rider

Step up provision1
Step-Up Provision not the client wants it

Step up provision2
Step-Up Provision not the client wants it

Medical evaluation
Medical evaluation not the client wants it

  • Clients with serious health impairments

  • Increases annual withdrawal amount up to 15%

  • Available up to age 75

  • May not apply for medical evaluation until two years after rider is issued

  • Or for two years following most recent change of ownership

Medical evaluation1
Medical evaluation not the client wants it

  • Review of medical records may result in an enhanced GMWB withdrawal amount

  • An evaluation fee of $150 will apply

    • Deducted from contract value at time of acceptance of offer

    • Fee may change but will never be more than $300

Summary not the client wants it

  • Timing

    • Clients choose when to add- and pay for- their GMWB

    • Delaying withdrawals can increase annual withdrawal amount

  • Income

    • Lifetime withdrawal benefits up to 7%

    • Medical evaluation can result in annual withdrawal amounts of up to 15%

  • Money Managers

    • Protective Life’s variable annuities offer access to a wide selection of world-class money managers

    • With RightTime clients can allocate their purchase payments without restriction until the rider is added

    • Four model portfolios available once the rider is elected

  • Expense

    • Protective Life’s unique combination of quality and low-cost

    • Delay paying for benefits until they are needed