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……..