today’s agenda
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Sales Ideas & Marketing Concepts
…. That Work !!!
Robert G. WilliamsVP 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 1Year 2
Year 3 Year 4
Year 5 Year 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
Potentia
l
$
Index Annuity Hypothetical
Year
1234567
$124,978$121,338$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%)
(0%) $132,477 $117,656
Index Annuity
Year Index Acc’t MGSV100%@2.35
%
Index Acc’tNo 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 theStock Market
Market Index
Financial Advisor
Poor Market Performance
Monthly AverageHow It Works
S&P 500 1,000
900 1000 1100 1200 1000 1200 1200 1100 1200 1200 1100 1000
13,200÷12
=1,100
-1,000
=100
÷ 1,000
=10%
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%
Monthly AverageHow It Works
S&P 500 1,000
90010001100120010001200120011001200120011001000
13,200÷12
=1,100
-1,000
=100
÷ 1,000
=10%900
1300
Monthly AverageHow It Works
S&P 500
(Oct. 1, 2003)
1018.22
1059.02 1070.12 1108.48 1135.26 1155.97 1132.17 1117.49 1121.20 1128.94 1106.62 1105.91 1131.50
13,372.68
÷12
= 1114.39
- 1018.22
= 96.17
÷ 1018.22
= 9.44%
Annual Point to PointHow It Works
S&P 500
(Oct. 1, 2003)
1018.22
1059.02 1070.12 1108.48 1135.26 1155.97 1132.17 1117.49 1121.20 1128.94 1106.62 1105.91 1131.50
1131.50
- 1018.22
= 113.28
÷ 1018.22
= 11.1%
Calculating Monthly Point to Point
• Subtract the starting value from the current value
Date S&P Value
Oct. 1 1018.22
Nov. 3 1059.02
1059.02 – 1018.22 = 40.80
• Divide the sum by the starting value• Record the Index Change and New Starting point
for the next month
40.80 ÷ 1018.22 = 4.0%
Index Change for 1st month = 4.0%
Starting point for 2nd month = 1059.02
Monthly Point to PointOne Year Option
Date S&P Closing Value
Percentage Change
Capped Increase*
October 1, 2003 1018.22 0% 0%
November 3, 2003
1059.02 4.00% 3.00%
December 1, 2003
1070.12 1.04% 1.04%
January 2, 2004 1108.48 3.58% 3.00%
February 2, 2004 1135.26 2.42% 2.42%
March 1, 2004 1155.97 1.82% 1.82%
April 1, 2004 1132.17 -2.05% -2.05%
May 3, 2004 1117.49 -1.29% -1.29%
June 1, 2004 1121.20 0.33% 0.33%
July 1, 2004 1128.94 0.69% 0.69%
August 2, 2003 1106.62 -1.98% -1.98%
September 1, 2004
1105.91 -0.06% -0.06%
October 1, 2004 1131.50 2.31% 2.31%
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 PointOne Year Option
Date S&P Closing Value
Percentage Change
Capped Increase*
October 1, 2003 1018.22 0% 0%
November 3, 2003
1059.02 4.00% 3.00%
December 1, 2003
1070.12 1.04% 1.04%
January 2, 2004 1108.48 3.58% 3.00%
February 2, 2004 1135.26 2.42% 2.42%
March 1, 2004 1155.97 1.82% 1.82%
April 1, 2004 1132.17 -2.05% -2.05%
May 3, 2004 1117.49 -1.29% -1.29% (+1%)
June 1, 2004 1121.20 0.33% 0.33%
July 1, 2004 1128.94 0.69% 0.69%
August 2, 2003 1106.62 -1.98% -1.98% (+1%)
September 1, 2004
1105.91 -0.06% -0.06%
October 1, 2004 1131.50 2.31% 2.31%
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
Dates Index number Monthly Change Accrued
January 330.20
February 343.91 4.18% 3.00%
March 367.07 6.73% 3.00%
April 375.22 2.22% 2.22%
May 375.35 0.03% 0.03%
June 389.81 3.85% 3.00%
July 371.18 -4.78% -4.78%
August 387.81 4.48% 3.00%
September 395.43 1.96% 1.96%
October 387.86 -1.91% -1.91%
November 392.46 1.19% 1.19%
December 375.11 -4.42% -4.42%
January 417.03 11.18% 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
Dates Index number Monthly Change Accrued
January 459.21
February 470.42 2.44% 2.44%
March 487.39 3.61% 3.00%
April 500.70 2.73% 2.73%
May 514.75 2.81% 2.81%
June 533.40 3.62% 3.00%
July 544.75 2.13% 2.13%
August 562.06 3.18% 3.00%
September 561.88 -0.03% -0.03%
October 584.41 4.01% 3.00%
November 581.50 -0.50% -0.50%
December 605.37 4.10% 3.00%
January 615.93 1.74% 1.74%
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
Dates Index number Monthly Change Accrued
January 970.43
February 980.28 1.02% 1.02%
March 1,049.34 7.04% 3.00%
April 1,101.75 4.99% 3.00%
May 1,111.75 0.91% 0.91%
June 1,080.82 -1.88% -1.88%
July 1,133.84 3.94% 3.00%
August 1,120.67 -1.16% -1.16%
September 957.28 -14.58% -14.58%
October 1,017.01 6.24% 3.00%
November 1,098.67 8.03% 3.00%
December 1,163.63 5.91% 3.00%
January 1,229.23 5.64% 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
Dates Index number Monthly Change Accrued
January 879.82
February 855.70 -2.74% -2.74%
March 841.15 -1.70% -1.70%
April 848.18 0.84% 0.84%
May 916.92 8.10% 3.00%
June 963.59 5.09% 3.00%
July 974.50 1.13% 1.13%
August 990.31 1.62% 1.62%
September 1,008.01 1.79% 1.79%
October 995.97 -1.19% -1.19%
November 1,050.71 5.50% 3.00%
December 1,058.20 0.71% 0.71%
January 1,111.92 5.08% 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
Dates Index number Monthly Change Accrued
January 1,108.48
February 1,131.13 2.04% 2.04%
March 1,144.94 1.22% 1.22%
April 1,126.21 -1.64% -1.64%
May 1,107.30 -1.68% -1.68%
June 1,120.68 1.21% 1.21%
July 1,140.84 1.80% 1.80%
August 1,101.72 -3.43% -3.43%
September 1,114.58 1.17% 1.17%
October 1,120.27 0,51% 0.51%
November 1,130.88 0.95% 0.95%
December 1,177.14 4.09% 3.00%
January 1,213.55 5.09% 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……..
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