WHAT: Guaranteed Income Annuity CARRIER PARTNERS: P A R T N E R S - PowerPoint PPT Presentation

WHO: Sentinel Security Life Atlantic Coast Life You WHAT: Guaranteed Income Annuity

CARRIER PARTNERS: P A R T N E R S Sentinel Security Life Atlantic Coast Life Founded in 1948 • Founded in 1925 • Based out of Salt Lake City, UT • Based out of Charleston, SC • Specializes in Life Insurance and Annuities. • AM Best Rating of B++ and is on track to get their A rating in • the year 2019 AM Best Rating of B++ and is on track to get their A • rating in the year 2019

COMPLEX PRODUCTS IN DOL LANDSCAPE $ Bonus DB Rider

WHY LIBOR? LIBOR, the London inter-bank lending rate, is considered to be one of the most important interest rates in finance, upon which trillions of financial contracts rest . What is LIBOR? A global benchmark interest rate used to set a range of • financial deals worth an estimated: $450,000,000,000,000 Why is it so important? As well as helping to decide the price of other • transactions, it is also used as a measure of trust in the financial system and reflects the confidence banks have in each other's financial health. How is it set? Banks don't just lend money to one another whenever they like. • There is a system. Every day a group of leading banks submits the interest rates at which they are willing to lend to other finance houses. They suggest rates in 10 currencies covering 15 different lengths of loan, ranging from overnight to 12 months. The most important rate is the three-month dollar LIBOR . The rates submitted • are what the banks estimate they would pay other banks to borrow dollars for three months if they borrowed money on the day the rate is being set. Then an average is calculated. This is a simple example of how it works. LIBOR is the ANTI-BOND vehicle

The fed funds rate is the interest rate banks charge each other to lend Federal Reserve Funds overnight. These funds maintain the federal reserve requirement . That’s what the nation’s central bank requires they keep on hand each night. The Federal Reserve uses the fed funds rate as a tool to control U.S. economic growth. That makes it the most important interest rate in the world. Below is a graph of how LIBOR has historically followed the Federal Funds Rate. For the last three years Federal Fund Rates have gone up. 2015 - +.25 2016 - +.25 2017 - +.75

The Federal Open Market Committee (FOMC) that meets eight times a year, sets the fed funds rate, and uses open market operations to influence the supply of money to meet the target rate. “Below is a projection from the meeting they held December 13, 2017” Federal Funds & LIBOR with Future Projections 3.50 3.20 3.00 2.89 2.50 2.00 1.50 1.00 0.50 0.00 1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 FEDFUNDS LIBOR

ACCUMULATION/FREE RIDER 8% Premium Bonus on 10-year Policy - (8% Ages 0-75; 6% Ages 76-85) • 10% Premium Bonus on 14-year Policy - (10% Ages 0-75; 7% Ages 76-80; 6% Ages 81-85) • The Greater of 1% or the 3 Month LIBOR with 55% Participation • (Please see Historical Credits in the chart on the right) 200% Interest Credits on Benefit Base for • Actual 200% Income and Death Benefit Returns Specified Period 1986-2005 2.89% 5.78% Can be Used for Income • Home Health Care Doubler Best Period 1986-1995 3.46% 6.92% • 10% Free Withdrawals of Premium Deposit Lowest Period 2007-2016 1.07% 2.14% • NO FEE • Same payout factors as the Income Rider Benefit • 10-year Commission 7.0% - (7.0% Ages 0-75; 5% Ages 76-85) • 14-year Commission 7.25% - (7.25% Ages 0-75; 5% Ages 76-85) •

PREMIUM WITHDRAWALS EXAMPLE

$220,000 BENEFIT BASE WITH $210,869 200% CREDIT $200,000 $189,435 $180,000 Benefit Base Hypothetical Growth Chart $160,000 $150,910 Guaranteed $140,000 $143,035 $131,651 Specified $120,000 $108,000 $119,241 Best $100,000 0 1 2 3 4 5 6 7 8 9 10 *Income Account Value **Guaranteed Lifetime Withdrawal Benefit ***Home Health Care

FAQ’S FOR THE FREE RIDER Question: Can I annuitize the policy? Answer: Yes, you can annuitize after 5 years over a minimum of 5 years or longer with the full bonus. With the exception of FL who will allow you to annuitize after 1 year over 5 years or longer.