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

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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

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LEGACY MAX RIDER DEATH BENEFIT FORMULA: 8% Premium Bonus on 10-year Policy • (8% Ages 45-75; 6% Ages 76-80; 1% Ages 81-85) Guaranteed Reference Income 8% Premium Bonus on 14-year Policy • Rate Rate Base Growth (8% Ages 45-75; 7% Ages 76-80; 2% Ages 81-85) Benefit Base paid upon 1 st death w/option to continue policy • Greater of LIBOR uncapped X Par Rate or • 1% Guaranteed Minimum Interest Hypothetical 4% 2.89% 6.89% Example 4% Plus Interest Stacking Roll-up for 20 years • (Guaranteed Minimum of 4% + 1% for 20 years) “Stacking” Benefit Rider • Dollar-for-Dollar Withdrawals RMD Friendly • 5% Guaranteed Guaranteed 4% Rollup Issues Up to Age 85 with a minimum roll-up of 5 years • for 20 Years Example 1% 10-year Commission 7.00% Ages 0-75; 5% Ages 76-85 • 14-year Commission 7.25% Ages 0-75; 5% Ages 76-85 • Strategically grow the IRA death benefit while taking RMD • Fee of 1.25% years 1-5 & 1.6% years 6-10 •

LEGACY RIDER CALCULATOR EXAMPLE Calculator Summary: Results Summary: Initial Purchase Payment: $100,000 Purchase Solved For: Legacy $100,000 Premium Payment Coverage Type: Single Issue Age of Owner: 60 Initial Bonus + $8,000 State of Application: AZ Day 1 Legacy Benefit Base $108,000 (age 60)

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RMD SOLUTION GUARANTEED VALUES: Valued Client Age: 65 Premium: $100,000 Q Purpose: RMD’s

BUY & HOLD FOR LEGACY GUARANTEED VALUES: Valued Client Age: 65 Premium: $100,000 Purpose: Legacy

FAQ’S FOR THE DEATH BENEFIT RIDER Question: Is the 5% roll-up guaranteed for contracts issued age 85? Answer: Yes, the roll-up is guaranteed for 5 years even at age 85.