Fixed Indexed Annuity Eagle Select Series (ICC13 E-IDXA)* Issued by: * Form number and availability may vary by state. Annuity contracts are products of the insurance industry and are not guaranteed by any bank or insured by the FDIC. Eagle Life Insurance Company West Des Moines, IA 50266 www.eagle-lifeco.com 866-526-0995
Where Will Your Retirement Dollars Take You? Retirement Protection As Americans, we work hard every day to earn an income to provide for our families, educate our children, and build a nest egg to provide for a secure retirement. As retirement nears, we are wise to consider: How safe are the funds we have accumulated for retirement? How will income taxes affect our standard of living? What will happen to my plans if I become seriously ill? Do we have enough money accumulated to retire? How can we be sure to receive an income for the rest of our lives? Indexed Annuities for Your Retirement Portfolio An indexed annuity is a type of fixed annuity that provides an opportunity to potentially earn more interest than a traditional fixed annuity or other safe money alternatives. This is done by basing interest earned on increases in an external equity or bond index. You are given the ability to choose how much of your premium earns interest based on an underlying index and how much earns interest at a fixed annual interest rate. The most commonly used indices are: S&P 500 10-Year U.S. Treasury Bond 2 Eagle Select (ICC13 E-IDXA) A very important benefit is that your premium and credited interest can never be lost due to index volatility or stock market declines. Additionally, policy years in which the index movement is negative do not affect the policy s ability to earn index interest credits in future years. It is important to remember that when you purchase an Eagle Select Indexed Annuity, you own an annuity contract backed by Eagle Life Insurance Company, you are not purchasing individual shares of stock, nor are you investing directly in the indexes. Benefits of Annuities At Eagle Life Insurance Company, our tax-deferred annuities help you maximize both growth and safety for your hard earned retirement dollars, ultimately offering you the confidence you deserve. We understand that it takes a tremendous amount of effort to create a retirement nest egg. We also understand the pain and frustration that is felt when that nest egg becomes cracked or damaged by stock market losses. While many people take into consideration only market risk when looking at various retirement savings options, there are other factors that should be considered as well: Safety of Premium May Avoid Probate Liquidity Guaranteed Income Tax Deferral Safety of Premium Fixed annuities by their very nature are considered safe money alternatives. They are contracts between you and an insurance company which include guaranteed interest and various income payout options. All guarantees are backed by the financial strength and claims paying ability of Eagle Life Insurance Company. May Avoid Probate In the event of your death, your beneficiaries will have the accumulated funds within your annuity available to them. These funds are able to be paid directly to them and may avoid the expense, delay, and publicity that comes with transferring assets through the probate process. Your named beneficiaries can choose to receive the proceeds as monthly income or a lump sum payment. Eagle Life Insurance Company
Taxable vs. Tax - Deferred $180,611 Tax - Deferred $158,040 Tax - Deferred After Lump Sum Taxes (28%) $153,327 Without Tax - Deferral Liquidity You may withdraw funds from your annuity at any time (subject to applicable surrender charges). Our annuity contracts allow one penaltyfree withdrawal* of up to 10% of the contract value per policy year beginning in the second contract year. We also have available certain riders which increase liquidity in the event of confinement to designated care facility, or if diagnosed with a terminal illness**. These liquidity features are designed to allow access to your money in the event of a substantial life crisis; however, keep in mind that annuities are not designed to offer unlimited withdrawals per policy year and are intended to be long term savings vehicles. Guaranteed Income One of the most powerful components of fixed annuities is the ability to turn on an income stream that can guarantee income for life while basing income off of the total contract value. The Eagle Select annuities from Eagle Life deliver to you the ability to choose from several different income options, including payments for a specified number of years or income for life, no matter how long you live. $100,000 Tax Deferral One of the primary advantages of deferred annuities is the opportunity to accumulate savings by allowing your premium and interest to grow tax-deferred. Unlike taxable savings vehicles, in most cases you pay no current income taxes on your earned annuity interest until you begin to take withdrawals or receive income. This may allow your money to grow faster than it would otherwise grow in a currently income taxable account. With a tax-deferred annuity, you earn interest on your premium and interest on your interest. If you would have otherwise used funds from your annuity to pay current income taxes on your earned interest, you would also earn interest on those dollars as well. Years This example is for illustrative purposes only. Note: Example assumes 3% annual interest rate and 28% tax bracket. The chart above illustrates this concept and clearly shows how much more your money grows over a 20-year period with a tax deferred annuity compared to an account that is subject to current income taxation. If this annuity is purchased within a qualified plan, all distributions may be taxable. Under current tax laws, annuities grow tax-deferred and therefore an annuity doesn t provide any additional tax deferral when purchased in a qualified plan. Any distribution may cause a taxable event. Neither Eagle Life Insurance Company nor our representatives offer legal or tax advice. Please consult your own legal or tax advisors for these matters. * It is important to remember that you may be subject to a 10% Federal penalty tax by the Internal Revenue Service if you take withdrawals or surrender your annuity policy prior to age 59½. ** Riders may not be available in all states. Eagle Life Insurance Company Eagle Select (ICC13 E-IDXA) 3
Interest Crediting You have seven different Interest Crediting Strategies to choose from in determining how we will credit interest to your Contract Value. One is a Fixed Interest Rate Strategy and then six Index Crediting Strategies. Additionally, we provide a Minimum Guaranteed Interest Rate which guarantees you a minimum return upon surrender. We calculate all Interest Rates as effective annual rates, compounded daily. Fixed Interest Rate Strategy is based on a current declared interest rate. This rate is declared annually and is guaranteed to never be less than the Fixed Interest Strategy Minimum Guaranteed Interest Rate stated in your Annuity Contract. Indexes S&P 500 Index contains stocks from 500 various industry leaders and is widely regarded as the premier benchmark for U.S. stock market performance.^ This Index is used in calculating the Annual Point to Point with Cap, Annual Point to Point Participation, Monthly Point to Point with Cap and the Performance Triggered strategies. 10-Year U.S Treasury Bond is designed to mirror general market interest rates. This Bond is used in calculating the Bond (BD) and the Bond Yield with Cap (BYC) strategies. Index Crediting Strategies Monthly Point to Point with Cap (MPT) - Each month a percentage of the change in the Index price is calculated. Caps are applied to any monthly increase, but there is no floor on monthly declines. Because of this, a decrease in one month could negate several monthly increases. As a result, even if the market index experiences an overall gain for the year, your contract s indexed credit may be lower (or zero) if the market index experienced monthly declines from one month to the next. The MPT Interest Credit* is calculated using the Sum of resulting monthly point to point values over the contract year multiplied by the ending Value of this Strategy on the previous Contract Anniversary, adjusted for any Transferred Values, and less any withdrawals taken since the previous Contract Anniversary, The MPT Interest Credit will never be less than zero (0). The MPT Cap Rate** on this strategy is guaranteed to never be less than 1%. Annual Point to Point with Cap (APT-CAP) - The Interest Credit* for this strategy is determined by taking the APT-CAP Index Price on the current Contract Anniversary minus the APT-CAP Index Price on the previous Contract Anniversary; divided by the Index Price on the previous Contract Anniversary; multiplied by the ending Value in this Strategy on the previous Contract Anniversary; adjusted for any Transferred Values, and less any withdrawals since the previous Contract Anniversary. Cap rates** are subject to change and declared each Contract Anniversary. The Annual Point to Point Guaranteed Minimum Cap is guaranteed to never be less than 1%. The APT- CAP Interest Credit will never be less than zero (0). Annual Point to Point Participation (APT-PR) - The Interest Credit* for this strategy is determined by taking the APT-PR Index Price on the current Contract Anniversary; minus the APT-PR Index Price on the previous Contract Anniversary; divided by the APT-PR Index Price on the previous Contract Anniversary; multiplied by the ending Value in this Strategy on the previous Contract Anniversary; adjusted for any Transferred Values, and less any withdrawals since the previous Contract Anniversary. Participation rates are subject to change and declared each Contract Anniversary. The Guaranteed Minimum Participation Rate on this strategy is guaranteed to never be less than 10%. The APT-PR Interest Credit will never be less than zero(0). ^ The S&P is a product of S&P Dow Jones Indices LLC ( SPDJI ), and has been licensed for use by Eagle Life Insurance Company. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); Standard & Poor s, S&P is a trademark of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Eagle Life Insurance Company. Eagle Life Insurance Company s Eagle Select is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P. *Amounts withdrawn between Contract Anniversaries from an indexed value strategy will not receive indexed interest credits that might otherwise be earned on that amount but for the withdrawal. **Cap Rates are more sensitive to the interest rate environment at the time of the issuance of the contract, and not the performance of the S&P 500 Index. 4 Eagle Select (ICC13 E-IDXA) Eagle Life Insurance Company
Performance Triggered (PT) - On Each Contract Anniversary the Index Price is compared to the previous anniversary s Index Price. If the PT Index Price on the current Contract Anniversary is equal to or greater than the previous Contract Anniversary s Index Price, the account will earn interest at the rate set at the beginning of the term. The Trigger interest rate is set annually but is guaranteed to never be less than 1%. Each PT Interest Credit will never be less than zero (0). Bond (BD) - Growth in this Strategy is determined by the annual change in the 10-Year U.S. Treasury Bond, plus a Coupon Rate. The BD Interest Credit for the year is determined by the Bond Price on the Current Anniversary; less the Bond Price on the Previous Contract Anniversary; divided by the Bond Price on the Current Anniversary, plus the Coupon Rate on the Previous Contract Anniversary; result is not to exceed the BD Cap; multiplied by the ending Value in this Strategy on the previous Contract Anniversary; adjusted for any Transferred Values and less withdrawals taken since the last anniversary. Cap Rates are subject to change and declared each Contract Anniversary. The BD Guaranteed Minimum Cap on this strategy is guaranteed to never be less than 1%. Each BD Interest Credit will never be less than zero (0). Inverse Bond Yield with Cap (BYC) An Index Strategy based on the 10 Year U.S Treasury Bond that works inversely to the prior Bond Strategy, less the coupon component. The BYC Interest Credit is determined by the amount of decrease in the BYC Index Price between Contract Anniversaries; divided by the BYC Index Price on the previous Contract Anniversary; Not to exceed the BYC Indexed Interest Cap; less the BYC Asset Fee; multiplied by the ending Value in this Strategy on the previous Contract Anniversary. Cap Rates are subject to change and declared each Contract Anniversary. The BYC Guaranteed Minimum Cap is guaranteed to never be less than 4%. The BYC Asset Fee rate is set at issue and guaranteed for Life of Contract. Each BYC Interest Credit will never be less than zero (0). Eagle Life Insurance Company Eagle Select (ICC13 E-IDXA) 5
Transfer of Values Eagle Life annuities allow for annual transfers between different values (Transfer of Values) allowing you greater flexibility in utilizing the interest crediting strategies available. A Transfer of Values (TOV) letter and form are sent one month prior to Contract Anniversary as a courtesy. Death Benefit The Death Benefit is the full contract value of your Annuity Contract and can be paid in a lump sum, with no surrender charges, to your named beneficiaries. In addition to a lump sum option, other distribution options may be available. Accessibility 10% Penaltyfree Withdrawals We understand that access to your money is very important. While many financial vehicles charge penalties for withdrawals prior to maturity, our annuities offer you the ability to take one withdrawal per contract year of up to 10% of the current contract value, beginning in the second policy year.^^ In the first year, you may receive systematic withdrawals of interest only or Required Minimum Distributions from the fixed interest account as quickly as 30 days after your contract is issued. Riders Confinement Care Rider (NCR- 100R) + - This rider is automatically included at no cost at issue. This allows the policy owner one additional withdrawal of up to 100% of your Contract Value without surrender charges after the 1st Contract Anniversary if the following conditions are met: Annuitant is confined in a Qualified Nursing Care Facility as defined in the rider. Confinement occurs after the end of the first contract year and is an initial confinement. Annuitant is confined for at least 90 consecutive days (30 days for Hospice Care). Written confirmation of confinement is received from the Qualified Care Facility and the Annuitant s Qualified Physician. Terminal Illness Rider (TIR-100R) + - This rider is automatically included at no cost at issue. This allows the policy owner to take a Penalty-free withdrawal of up to 100% of the Contract Value if the diagnosis of a terminal illness by a qualified physician occurs after the first contract year. Additional Riders may be available for a fee. Minimum Guaranteed Surrender Value (MGSV) MGSV is calculated separately from your Contract Value. It equals 90% of all premiums, less any withdrawals (compounded annually) at the Minimum Guaranteed Surrender Value- Minimum Guaranteed Interest Rate (MGSV-MGIR). The MGSV-MGIR is set at issue and is guaranteed for the life of the policy. Cash Surrender Value(CSV) The CSV is equal to the greater of the Contract Value minus any Applicable Surrender Charges or the Minimum Guaranteed Surrender Value. Surrender Charges Surrender Charges are deducted for withdrawals exceeding the penaltyfree amounts or for full surrender, within for the Surrender Charge Period for issue ages 0-80, starting at 9.2%* and decreasing annually. Please refer to your contract form and the product disclosure for the complete surrender charge schedule. * Surrender charges may vary by state ^^ Withdrawals above the penalty free amount are subject to surrender charges. All withdrawals reduce your contract value, death benefit and amount available for annuity payments and may be subject to Federal/State income tax. Withdrawals prior to age 59½ may subject you to a 10% Federal penalty tax by the Internal Revenue Service. Consult your own legal and tax advisors for these matters. + This rider is not available in all states, and activation of this rider may trigger IRS imposed early withdrawal penalties or income taxes due. Additional restrictions may apply. Neither Eagle Life Insurance Company nor our representatives offer legal or tax advice. Please consult your own legal or tax advisors for these matters. 6 Eagle Select (ICC13 E-IDXA) Eagle Life Insurance Company
Understanding the Potential Benefits Indexed Annuities with the Annual Reset Design Eagle Select s potential for higher interest rates while still protecting principal may be attractive to you if you are concerned about the volatility of the market. The following graph shows a hypothetical example of an indexed annuity s Contract Value during a volatile 10 year market environment. Market performance is represented by the actual annual returns of the S&P 500 Index (without dividends). In this example, premiums are allocated 100% to the Annual Point to Point with Cap Strategy. Interest is credited based on the difference between a starting and ending value of the S&P 500 during a one year period. The starting point begins when the annuity is funded (or purchased) and is also referred to as the policy anniversary date. This strategy will cap out when the return on the S&P 500 for the particular one year period reaches this ceiling in any given year. In years that the S&P 500 Index had positive annual returns, the hypothetical contract s value also grew, up to the cap. In years where the S&P 500 Index grew more than the stated cap, the Contract Value did not grow to the same extent as the S&P 500. For example, in 2003 the interest credited to the contract was less than the actual annual return of the S&P 500 Index for that contract year. In 2008 when the index took a large drop, the contract did not lose value. Instead, the accumulated value up to that point remained the same (no negative crediting) which protected the principal as well as accrued interest. Strategy concept By allocating premium dollars to an indexed strategy, those values can be protected from market volatility because, no matter how the S&P 500 or the U.S. Treasury Bond performs, you will never have negative crediting. Annual Point to Point S&P 500 Minimum Guaranteed Contract Value $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $100,000 $100,000 $100,000 $90,000 $72,464 $100,000 $56,754 $105,000 $108,675 $69,333 $50,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (09/30/00) (09/30/13) Year The index is not available for direct investment. This example assumes the initial premium purchase date of 9/30/2000 and the following interest rate caps: 2001) 5%; 2002) 5%; 2003) 5%; 2004) 3.5%; 2005) 3.5%; 2006) 4.5%; 2007) 4.5%; 2008) 4.25%; 2009) 4.25%; 2010) 4.25%; 2011) 4.25%; 2012) 4%; 2013) 4%. The Eagle Life product was not available during the entire period of time referenced, hypothetical annuity rates and actual historical prices of the S&P 500 Index were used in this hypothetical example for the purpose of illustrating comparative values and to demonstrate how the interest crediting strategy may have performed using different assumptions, but the same index performance. This is not an indication of the future performance of the product or of the Index. These assumptions are not guaranteed; the use of alternate premium and rate assumptions could produce significantly varying results. This depiction assumes no withdrawals or additional premium. The annual return for the S&P 500 Index (without dividends) during the periods reflected above are as follows: 2001) -27.52%; 2002) -20.52%; 2003) 21.66%; 2004) 10.75%; 2005) 10.13%; 2006) 8.81%; 2007) 14.29%; 2008) -23.71%; 2009) -9.24%; 2010) 7.96%; 2011) -0.86%; 2012) 27.33% and 2013) 16.72%. Fixed indexed annuities are not securities or stock market investments and do not directly participate in any stock or equity investments. Market indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks. Eagle Life Insurance Company Eagle Select (ICC13 E-IDXA) 7 $112,479 $77,589 $85,541 $117,540 $122,829 $122,829 $92,993 $106,282 $122,829 $81,194 $73,587 $133,172 $128,050 $128,050 $138,499 $79,443 $78,762 $100,290 $117,058 $102,428
Helping Americans Enjoy a Secure Retirement It is a key focus for Eagle Life Insurance Company to help Americans enjoy their retirement years with financial security. We care about providing products that protect your retirement savings. Our employee/owners are committed to ensuring confidence for your retirement future. Our commitment to unsurpassed service and strong policy benefits is the cornerstone of the Eagle Life business model. When you purchase an Eagle Life annuity, you are buying the promise that we will always be there when you need us. If you feel that safety, flexibility, tax deferral, accessibility, and liquidity during some of life s crises, and the ability to access income for the rest of your life are important, we have it. We are pleased to offer diverse planning choices for your retirement dollars. Eagle Life is a wholly owned subsidiary of American Equity Investment Life Insurance Company, a leader in the index annuity marketplace. Neither Eagle Life Insurance Company, nor any of our Representatives give legal or tax advice. The information here is a summary of our understanding of current tax laws as they relate to this insurance product. This document was not intended or written to be used, and cannot be used to avoid tax penalties or promote, market or recommend any tax plan or arrangement. You should seek advice based on your particular circumstances from your tax advisor. You should carefully consider the objectives, risks, charges and expenses of this and all Eagle Life products before purchasing. Contact your financial advisor or visit www.eagle-lifeco.com for more information or to obtain additional information about this product. Past performance is no guarantee of future results. Annuities are long-term investments designed for retirement planning purposes, such as asset accumulation and income, and may not be suitable for meeting short-term investment objectives. All guarantees are based upon the financial strength and claimspaying ability of the issuing company, which is solely responsible for the obligations under its contracts. Issued by: 3591-SB 11.01.13 Eagle Life Insurance Company PO Box 71279 Des Moines, IA 50325 Telephone: (866) 526-0995 Fax: (515) 457-1911 www.eagle-lifeco.com Not FDIC Insured Not Bank Guaranteed May Lose Value Not a Deposit Not Insured by Any Federal Government Agency