Protect Tomorrow. Embrace Today.TM

Transcription

1 Protect Tomorrow. Embrace Today.TM Protective Fixed Annuities At a Glance PABD.4762 (06.12)

2 The Strength of Our Promise For more than 100 years, our mission has remained boldly alive in our name. We are Protective Life. We are committed to tearing down the barriers that prevent so many people from enjoying the peace of mind and satisfaction that come from taking care of their future financial needs and the needs of those who depend on them. This is our purpose. This will be our legacy. By enabling more people to confidently protect their tomorrow, we provide them the freedom to embrace their today. The strength of our promise is backed by the financial stability and long-term performance of our Company. Protective Life carries high ratings from independent rating organizations who assign ratings measuring financial strength or claims paying abilities. They consider factors such as overall operating performance, asset quality, financial flexibility and capitalization. Protective Life has insurer financial strength ratings of: A+ (Superior, 2nd highest of 15 ratings) from A.M. Best AA- (Very Strong, 4th highest of 21 ratings) from Standard & Poor s A (Strong, 6th highest of 22 ratings) from Fitch Ratings do not reflect the investment experience or financial strength of any sub account. These ratings are current as of July 17, 2012, are subject to change and do not apply to products or their performance. Please visit for more current information. For more information, supplies or assistance, contact our Annuity Sales Desk For Financial Institutions support, contact: or fis.support@protective.com For Independent Advisor, Wirehouse or Regional Wirehouse support, contact: or product.info@protective.com

3 Product Profiles Product Type Client Profile Availability Investment Amounts Guarantee s Investment Bonus Renewals Penalty Free Automatic Surrender Charges by Guarantee Death Benefit Minimum Market Value Adjustment (MVA) Principal Protection Option Nursing Home/ Terminal Illness Waivers Protective FutureSaver II Multi- Guaranteed Annuity (MYGA), Limited Market Value Adjustment (MVA) product For clients looking to protect funds across a wide range of guarantee periods Ages 0 85 (Non-Qualified contracts) Ages (Qualified contracts) Guarantee periods may not extend beyond any owner or annuitant s 96th birthday Minimum Initial Investment: $10,000 Minimum Additional Investment: $2,000 (Not accepted in OR) Maximum Investment: $1 million (higher amounts may be accepted with prior company approval) At least $2,000 ($10,000 in OR) must be allocated to each selected guarantee period. Choice of 3 10-year periods, with a fully liquid 1-year period available at renewal All guarantee periods may not be available at all times. Check with your Protective Life distribution representative for the most current interest rates and available guarantee periods. First-year investments for contracts with an aggregate investment amount of $100,000 or more are eligible for an investment bonus. The bonus amount is determined by the guarantee period: 0.50% investment bonus for guarantee periods of 3 4 years 1.00% investment bonus for guarantee periods of 5 10 years The bonus is paid on each new investment and on renewals. It is immediately fully vested except for cancellations during the free-look period. The rate may be different for new money versus renewals. The bonus rate may not be available at all times. Upon the maturity of the guarantee period, contract owners have a 30-day window, during which they may select one of the following options: Take all of part of the maturity value in a lump sum (no surrender charges or MVA will apply). Select an annuity option. Transfer all or part of the maturity value to the one-year renewal period. Money in the one-year renewal period. can be withdrawn at any time without surrender charges or MVA, or can be reallocated to another guarantee period. Transfer all or part of the maturity value into one or more available guaranteed periods. Do nothing, and your maturity value renews for the same guaranteed period. If unavailable, it renews to the next longest guaranteed period. If one of the last two options is selected, a new credited interest rate is set, a new surrender charge schedule begins and the MVA restarts. This interest rate may be higher or lower than the previous interest rate or that of any prior renewals. Renewal guarantee periods may not extend past the date income payments start, which is the oldest owner s or annuitant s 96th birthday. The owner must allocate at least $2,000 to each guarantee period selected. The contract owner has access to penalty free withdrawals without application of surrender charges or the MVA under the following circumstances: Withdrawals of interest credited in the prior contract year after a guarantee period s first anniversary. Withdrawals from the one-year guarantee period, which may be taken at any time. Withdrawals taken under the Nursing Home/Terminal Illness Waiver. Automatic withdrawals can begin at purchase or at a later date ($100 minimum) on a monthly, quarterly, semi-annual or annual basis % 7.5% 6.5% 7 8.5% 7.5% 6.5% 5.5% 4.5% 3.5% 2.5% 4 8.5% 7.5% 6.5% 5.5% 8 8.5% 7.5% 6.5% 5.5% 4.5% 3.5% 2.5% 1.5% 5 8.5% 7.5% 6.5% 5.5% 4.5% 9 8.5% 7.5% 6.5% 5.5% 4.5% 3.5% 2.5% 1.5% 0.5% 6 8.5% 7.5% 6.5% 5.5% 4.5% 3.5% % 7.5% 6.5% 5.5% 4.5% 3.5% 2.5% 1.5% 0.5% 0% If an owner of the annuity contract should die prior to annuitization, the beneficiary will receive the contract value without the application of surrender charges or the MVA. Income and estate taxes may apply. The minimum interest rate guarantee will be between 1% and 3%. The rate is set at the time of purchase and will not change during the life of the contract. Protective Life sets the minimum interest rate with reference to the standard non-forfeiture law and the rate may be different for contracts purchased at different times. The MVA is limited, and will never increase or decrease the surrender value of the contract by more than the excess interest credited to the subaccount. Excess interest is the dollar amount of interest credited to a sub-account in excess of that which would be credited at the minimum interest rate. When this option is selected, upon full surrender before starting your annuity payments, at least 100% of your investment will be returned to you (less any withdrawals or investment taxes, if applicable). Contracts including the principal protection feature may earn a lower interest rate than those without it. Currently, the interest rate reduction for contracts that include this feature is: 0.10% for guarantee periods 3 6 years 0.05% for guarantee periods 7 10 years The contract owner may have access to all or part of the contract value without surrender charge or MVA if, after the first contract year, they are confined to a licensed and qualified nursing home for at least 90 days or diagnosed by an approved physician as having a terminal illness that will result in death in 12 months or less. Not available in all states. State variations may apply.

4 Protective ProSaver Secure II Product Type Client Profile Availability Investment Amounts Guarantee s Bonus Renewals Penalty Free Automatic Surrender Charges by Contract Death Benefit Bail Out Protection Principal Protection Option Nursing Home/ Terminal Illness/ Unemployment Waivers Limited Flexible Premium Deferred Annuity For clients seeking more liquidity, and who have concerns about safety and loss of principal. Ages 0 85 (Non-Qualified contracts) Ages (Qualified contracts) Guarantee periods may not extend beyond any owner or annuitant s 96th birthday Minimum Initial Investment: $2,000 Minimum Additional Investment: $50 (within first 12 months) Maximum Investment: $1 million (higher amounts may be accepted with prior company approval) Choice of either 1-, 2-, 4-, or 6-year guarantee period. All guarantee periods may not be available at all times. Check with your Protective Life distribution representative for the most current interest rates and available guarantee periods. Investments are eligible for an interest rate bonus (added to the initial base interest rate) based on the guarantee period and the actual aggregated premium. Bonuses are credited from the deposit date for the entire guarantee period. Both new investments and renewals are eligible for the interest rate bonus. It is immediately fully vested except for cancellations during the free-look period. The rate may be different for new money versus renewals. The bonus rate may not be available at all times. Upon completion of the 7-year surrender charge period, contract owners have a 30-day window, during which they may select one of the following options: Take all of the maturity value in a lump sum (no surrender charges apply). Select an annuity payout option. Transfer the contract value into a new guarantee period and receive the new credited rate available at that time as if the contract value represents a new purchase payment. If the above option is chosen, the contract value becomes the initial contract value for the new guarantee period and would also be eligible for any interest rate bonus offered at that time. A new surrender charge schedule would also apply and a new guaranteed rate of interest would be determined, which may be higher or lower than the initial, or any prior renewal, interest rates. Do nothing and the maturity value will be credited with a renewal rate guaranteed for 1-year and the contract will remain free from surrender charges. Renewal guarantee periods may not extend past the date income payments start, which is the oldest owner s or annuitant s 96th birthday. Withdrawal of 10% (15% in MN) of the contract value may be made each year with no surrender charges. Amounts not used within a given year may not be carried over to the next. Automatic withdrawals can begin at purchase or at a later date ($100 minimum) on a monthly, quarterly, semi-annual or annual basis Charge 8.0% 8.0% 7.0% 6.5% 5.5% 4.5% 3.0% If an owner of the annuity contract should die prior to annuitization, the beneficiary will receive the contract value without the application of surrender charges. Income and estate taxes may apply. For deposits allocated to any guarantee period, if the renewal interest rate is more than 0.50% below the initial base interest rate, the contract owner has the option to surrender the contract without incurring surrender charges. After receiving notification of the rate change, the owner has 45 days from the prior interest rate guarantee expiration to notify Protective Life of their wish to surrender the contract. When this option is selected, upon full surrender before starting your annuity payments, 100% of your investment will be returned to you (less any withdrawals or investment taxes, if applicable). Contracts including the principal protection feature may earn a lower interest rate than those without it. Withdrawals from the contract may be taken without the application of surrender charges if the owner or the owner s spouse falls into one of the following categories: Confined to a qualified healthcare facility for 30 consecutive days or longer following the issue of a contract. Diagnosed with a terminal illness by an approved physician. Unemployed and meets the following qualifications: 1. Must have been employed full time on the contract issue date. 2. Must be unemployed for a period of at least 60 consecutive calendar days prior to claiming the waiver of withdrawal charge. 3. Must be unemployed on the date the full surrender or partial withdrawal is requested.

5 Protective ProSaver Platinum Product Type Client Profile Availability Investment Amounts Guarantee s Enhancement Renewals Penalty Free Automatic Surrender Charges by Guarantee Death Benefit Market Value Adjustment (MVA) Registered Modified Guaranteed Annuity For clients who are not concerned with liquidity and seek a higher interest rate and/or shorter guarantee period. Ages 0 92 (Non-Qualified contracts) Ages (Qualified contracts) Guarantee periods may not extend beyond any owner or annuitant s 96th birthday Minimum Initial Investment: $10,000 Minimum Additional Investment: $10,000 Maximum Investment: $2 million (higher amounts may be accepted with prior company approval) At least $10,000 must be allocated to each selected guarantee period. Choice of 2 10 and 15-year periods (8-, 10- and 15-year guarantee periods are not available in OR) All guarantee periods may not be available at all times. Check with your Protective Life distribution representative for the most current interest rates and available guarantee periods. A 0.25% interest rate enhancement for investments of $100,000 or more. The additional interest credited to the contract is immediately fully vested except for cancellations during the free-look period. The interest rate enhancement may not be available at all times. Upon the maturity of the guarantee period, contract owners have a 15-day window, during which they may select one of the following options: Take all of part of the maturity value in a lump sum (no surrender charges or MVA will apply). Select an annuity payout option. Transfer all or part of the maturity value into one or more available guaranteed periods. Do nothing, and your maturity value renews for the same guaranteed period. If unavailable, it renews to the next longest guaranteed period. If one of the last two options is selected, a new credited interest rate is set, a new surrender charge schedule begins and the MVA restarts. This interest rate may be higher or lower than the previous interest rate or that of any prior renewals. Renewal guarantee periods may not extend past the date income payments start, which is the oldest owner s or annuitant s 96th birthday. Once each contract year, the contract owner may instruct us to send them all or a portion of the interest credited to their sub-accounts during the prior contract year, without application of surrender charges or the market value adjustment. Automatic withdrawals can begin at purchase or at a later date ($100 minimum) on a monthly, quarterly, semi-annual or annual basis % 6.0% 7 6.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 3 6.0% 6.0% 5.0% 8 6.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 4 6.0% 6.0% 5.0% 4.0% 9 6.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 5 6.0% 6.0% 5.0% 4.0% 3.0% % 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 6 6.0% 6.0% 5.0% 4.0% 3.0% 2.0% % 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% If an owner of the annuity contract should die prior to annuitization, beneficiaries will receive the greater of the: Account value. Net account value after application of surrender charge and MVA. If a claim is received one year or more after the date of death, the death benefit will be equal to the net account value. The MVA can either increase or decrease the surrender value. The MVA formula is tied to market interest rates as measured by the appropriate Treasury rate. Generally, if the applicable Treasury rate at the time of surrender is more than 0.25% lower than the Treasury rate associated with the guarantee period from which the surrender is being made, the MVA will increase the surrender value. Otherwise, the MVA will decrease the surrender value. No matter which fixed annuity product is chosen, Protective Life offers a variety of payment options when the contract is converted to a series of payments, or annuitized. These payments can be for life, for a specified period of time, or a combination of both. Clients may choose from: Lifetime Income Certain Life with Certain Life with Cash Refund Life with Installment Refund All options are available based on either a single life expectancy or joint life expectancy. Please see the contract for more information about these payout options. All payments are subject to the claims-paying ability of Protective Life Insurance Company. 1 Withdrawals of earnings will be subject to income tax and may be subject to a 10% IRS penalty tax if taken prior to age 59 ½. Under current tax law, any withdrawal from the contract will be deemed earnings until all earnings attributable to the entire contract value are withdrawn. Only then will a withdrawal reduce principal.

6 This brochure is intended to provide a summary description of the Protective FutureSaver II, Protective ProSaver Secure II and Protective ProSaver Platinum fixed annuities. The exact terms of each product are contained in the individual contracts and any attached riders and endorsements, which will control the issuing insurance company s contractual obligations. Annuities are long-term insurance contracts intended for retirement planning. Protective Life refers to Protective Life Insurance Company (PLICO) and its affiliates. Securities offered by Investment Distributors, Inc. (IDI), its affiliate. Both located in Birmingham. Each company is solely responsible for the financial obligations accruing under the products it issues. Product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Protective FutureSaver II fixed annuity is a flexible premium deferred market value adjusted annuity contract issued under policy form numbers IPD-2151, -2152, -2153, -2154, Protective ProSaver Secure II fixed annuity is a limited flexible-premium deferred annuity contract issued under policy form series P Protective ProSaver Platinum fixed annuity is a modified guaranteed annuity contract issued under policy form numbers IPD-2083, Policy form numbers, product availability and product features may vary by state. Investors should consider the risks and charges of the Protective ProSaver Platinum fixed annuity prior to investing. This and other information is contained in the prospectus for the Protective ProSaver Platinum fixed annuity. Investors should read the prospectus carefully before investing. Prospectuses can be obtained by contacting PLICO at PABD.4762 (06.12)