Experience the Power of

Fixed Index Annuities

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11095 Viking Dr., Suite 230, Eden Prairie, MN 55344, 800-356-4189
Consider the advantages of a
Fixed Index Annuity

 Returns linked to an index

 Return of principal
 Liquidity features
 Tax deferred growth
 Safety

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 The Strength of Tax Deferral
 Earnings accumulate tax deferred
 N
o income taxes are due until the proceeds
are taken out

AND the Power of Triple Compounding

 Earn interest on your principal
 Earn interest on the interest
 E
arn interest on the money you would have
paid in taxes

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 Help Protect Yourself
- With the safety and growth
potential of a Fixed Index Annuity

If you lost It could take this long to rebuild your nest egg
this much assuming these hypothetical annual returns
at a 3% return at a 6% return at an 8% return
10% 3.6 years 1.8 years 1.3 years
20% 7.5 years 3.7 years 2.9 years
30% 12 years 6 years 4.6 years
40% 17 years 8.6 years 6.6 years
50% 23.2 years 11.6 years 9 years

If you don’t have the recovery time that may be necessary, a

Fixed Index Annuity may make sense for a portion of your money.
These examples are hypothetical in nature and do not represent past or future results.

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 Popular Indices
(Examples of companies in the index)
STANDARD & POOR’S 500
American Express
Anheuser-Busch
Coca-Cola Co.
eBay Inc.
Walt Disney Co.
3M Company
Whirlpool Corp.
S&P 500® is a trademark of the
McGraw- Hill Companies. Index
annuities are not sponsored, endorsed,
sold or promoted by Standard & Poor’s
and Standard & Poor’s makes no
representation regarding the advisability
of purchasing index annuities.
NASDAQ 100 DOW JONES
Cisco Systems Home Depot
Dell Inc. Honeywell
Intel General Electric
Microsoft McDonalds
Amazon.com Wal-mart
Expedia DuPont
Cephalon, Inc.
The Nasdaq-100® is a trademark of Dow Jones is a service mark of Dow
The Nasdaq Stock Market, Inc. (which Jones & Company, Inc. Investment
with its affiliates are the Corporations) products based on Dow Jones indexes are
the product(s) have not been passed on not sponsored, endorsed, sold or promoted
by the Corporations as to their legality by Dow Jones, and Dow Jones makes no
or suitability. The product(s) are not representation regarding the advisability
issued, endorsed, sold, or promoted by the of investing in such product(s). Inclusion
Corporations. THE CORPORATIONS of a company in the Dow Jones indexes
MAKE NO WARRANTIES AND BEAR NO does not in any way reflect an opinion of
LIABILITY WITH RESPECT TO THE Dow Jones on the investment merits of
PRODUCT(S). the company.
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 Measuring the Gain
Two common methods used

 Annual Point to Point – Annual Reset

 Monthly Point to Point – Annual Reset

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 Annual Point to Point
Examples:

Up Year Down Year

 Beginning index value: 1000  Beginning index value: 1000
 E
nding index value on contract  E
nding index value on contract
anniversary: 1117 anniversary: 900
 Percentage of change: +11.70%  Percentage of change: -10%
 Annual cap: 7%  Annual cap: 7%
 Your return is 7%  Your return is 0%

The annual cap varies depending upon the issuing insurance company. The 7% quoted
is for illustrative purposes only and does not represent a specific insurance company.

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 Monthly Point to Point
Examples:
Up Year – assumed monthly cap is 3%
Month 1 2 3 4 5 6 7 8 9 10 11 12
Monthly index 2.3 1.6 -3.2 -2.3 0.4 2.1 3.8 -3.3 2.4 1.9 -1 4.2
change (%)
Monthly cap (%) 3 3 3 3 3 3 3 3 3 3 3 3
Capped monthly 2.3 1.6 -3.2 -2.3 0.4 2.1 3 -3.3 2.4 1.9 -1 3
change (%)

 Your return is 6.9%

Down Year – assumed monthly cap is 3%

Month 1 2 3 4 5 6 7 8 9 10 11 12
Monthly index 2 -5.1 1 -3.2 -4 -1.2 4 1 0 -2.2 -5 1.3
change (%)
Monthly cap (%) 3 3 3 3 3 3 3 3 3 3 3 3
Capped monthly 2 -5.1 1 -3.2 -4 -1.2 3 1 0 -2.2 -5 1.3
change (%)

 Your return is 0%

On each monthly anniversary the index gain or loss percentage is calculated from the previous monthly
anniversary index number. Percentage gains are recorded up to the cap, percentage losses are recorded with no
cap. At the policy anniversary the recorded changes are added together, and if positive, that is the interest
credit for the year. If the change is negative, there is no interest credited for the year.

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 The Power of Annual Reset
You may reduce your risk during the down years!
Participation rate is
Annual Point to Point – Annual Reset defined as how much of the
increase in the index will
$100,000 PAYMENT be used to calculate index-
Market S+P 500 Fixed Index
Fluctuation Index Fund Annuity linked interest.
VALUE $100,000 $100,000
Year 1 26.7% $126,700 $108,000 Annual Reset is defined as
Year 2 19.5% $151,407 $116,640 the index-linked interest,
Year 3 -12.7% $132,178 $116,640 if any, is determined each
Year 4 -10.5% $118,300 $116,640 year by comparing the
Year 5 -23.4% $90,618 $116,640 index value at the end of
Year 6 26.4% $114,541 $125,971
the contract year with
Year 7 9.0% $124,850 $136,049
Year 8 4.7% $130,718 $142,443
the index value at the
Year 9 11.6% $145,881 $153,839 start of the contract year.
Interest is added to your
100% Participation Rate • 8% Annual Cap • No Fee annuity each year during
the term.

The annual cap varies depending upon the issuing insurance company. The percentage quoted is for illustrative
purposes only and does not represent a specific insurance company’s policy. Nor is it a guarantee of any kind.

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 The Power of Annual Reset
You may reduce your risk during the down years!
Monthly Point to Point – Annual Reset Participation rate is defined
as how much of the increase
$100,000 PAYMENT in the index will be used
Market S+P 500 Fixed Index to calculate index-linked
Fluctuation Index Fund Annuity
interest.
VALUE $100,000 $100,000
Year 1 26.7% $126,700 $109,184
Annual Reset is defined as
Year 2 19.5% $151,407 $117,141
Year 3 -12.7% $132,178 $117,141
the index-linked interest, if
Year 4 -10.5% $118,300 $117,141 any, is determined each year
Year 5 -23.4% $90,618 $117,141 by comparing the index value
Year 6 26.4% $114,541 $134,059 at the end of the contract
Year 7 9.0% $124,850 $143,005 year with the index value at
Year 8 4.7% $130,718 $143,005 the start of the contract
Year 9 11.6% $145,881 $159,312
year. Interest is added
100% Participation Rate • 2.45% Monthly Cap • No Fee to your annuity each year
during the term.

The monthly cap varies depending upon the issuing insurance company. The percentage quoted is for illustrative
purposes only and does not represent a specific insurance company’s policy. Nor is it a guarantee of any kind.

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 The Safety of Fixed Index Annuities

All fixed index annuities are backed by the claims paying ability of the insurance
company offering them. The insurance companies are subject to strict guidelines
established by the National Insurance Commissioners and must strive to
conservatively invest the premium funds to provide a minimum return.

Additionally, individual states may require insurance companies doing business in

their state to contribute to the Life and Health Guaranty Association which
helps should an insurance company fail to meet the obligations of their contract
holders, up to the guidelines published by the state.

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Notes:

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This presentation was created by ECA Marketing for our Independant
Agency Network. This presentation cannot be modified or altered outside
its original version without written consent of ECA Marketing and National
Financial Partners.

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11095 Viking Dr., Suite 230, Eden Prairie, MN 55344, 800-356-4189 10631-2202008