Variables You Can Count On

A majority of Americans aged 55 to 80 have fears about investment risks that
are undermining their confidence to invest in the stock market.¹ But
with traditional pension plans becoming more rare and Social Security’s future
in question, many Americans may need to pursue stock market gains in order to
avoid a retirement income shortfall.

One way to pursue gains in the stock market while also limiting downside
risks is through the use of living benefit guarantees that are offered with some
variable annuities (for an additional cost).

Living Benefits

A variable annuity is a long-term financial vehicle designed for retirement
purposes. The contract holder makes one or more payments to an insurance company
in exchange for the promise of an income stream or lump-sum payment to be made
at a future date. During the accumulation period, the insurance company invests
some of the payments in subaccounts selected by the contract holder that pursue
investment gains in various asset classes, including stocks.

Because it is possible for these investment subaccounts to lose money, some
variable annuities offer living benefit guarantees at an additional cost to help
guard against specific losses. These benefits can ensure that the contract will
reach a minimum value, provide a minimum income amount, or provide an income for
a specified period in the event that the subaccounts underperform.

There are contract limitations, fees, and charges associated with variable
annuities, which can include mortality and expense risk charges, sales and
surrender charges, administrative fees, and charges for optional benefits.
Withdrawals reduce annuity contract benefits and values. Variable annuities are
not guaranteed by the FDIC or any other government agency; they are not deposits
of, nor are they guaranteed or endorsed by, any bank or savings association.

Withdrawals of annuity earnings are taxed as ordinary income and may be
subject to surrender charges plus a 10% federal income tax penalty if made prior
to age 59½. Any guarantees are contingent on the claims-paying ability of the
issuing company. Because variable annuity subaccounts fluctuate with changes in
market conditions, the principal may be worth more or less than the original
amount invested when the annuity is surrendered.

Variable annuities are sold only by prospectus. Please consider the
investment objectives, risks, charges, and expenses carefully before investing.
The prospectus, which contains this and other information about the investment
company, can be obtained from your financial professional. Be sure to read the
prospectus carefully before deciding whether to invest.

1) NAVA, 2007

This material was written and prepared by Emerald Publications.

© 2009 Emerald Publications