Changes to GLIR Effective March 13

In the current low interest rate environment, LSW continues to take steps to ensure our products remain both competitive and financially sound. Interest rates have a direct impact on the amount that LSW can guarantee to policy owners. As a result, the Guaranteed Withdrawal Percentages of LSW’s Guaranteed Lifetime Income Riders (GLIR) need to be reduced so that we can continue to offer this important benefit.

For all applications received after March 12, 2010, the Guaranteed Withdrawal Percentages on all Guaranteed Lifetime Income Riders will be reduced by 0.5% for all ages and all benefit options. This change does not affect policies currently in force or policies issued as a result of applications received before March 13, 2010. Please see the chart below for important dates and submission information.

Even with this change, LSW still provides one of the most outstanding accumulation and income solutions in the marketplace!

LSW’s Annuity + GLIR Package Remains the Industry’s Standard
LSW continues to offer an exceptional benefit to our policy owners, guaranteeing they will have an income stream for life - and providing you with a competitive edge in the annuity market. Our focus is on providing the best products and benefits to our policy owners. The total package of base products and riders that we offer continues to lead the industry.

When you sell an LSW annuity with a GLIR, the policy owner receives such best-in-class annuity and rider features as:

LSW Annuity Benefits:

• Accumulation values guaranteed never to be reduced by drops in indices
• Strong renewal interest rates from a company that practices renewal rate integrity
  
• Guarantees supported by a financially sound and fiscally conservative company with a 55-year history and solid financial strength ratings
  
• Strong liquidity features

LSW GLIR Benefits:

• Guaranteed lifetime income calculated with a formula that automatically provides the highest income that is available under the rider to policy owners – a step-up feature that recalculates the income payment every year based on attained age
  
• Competitive roll-up rates
  
• Automatic reset of the income calculation base if the accumulation value is higher in certain years
  
• The ability to stop and restart income
  
• Joint income withdrawal percentage at only a .5% reduction
  
• A Rider charge that is contractually specified at issue and calculated based on the accumulation value, not the higher income calculation base
  
• Guaranteed Withdrawal Payment taken from the declared account first
  
• An enhanced benefit¹ that can substantially increase the guaranteed withdrawal payment if the annuitant qualifies and cannot perform two out of six Activities of Daily Living (ADL)
  
• The policy owner retains control of their money, unlike annuitization

LSW’s goal is to offer the best product and rider combination on the market. It is important to remember that an income rider is not sold by itself – it is coupled to a fixed or indexed annuity. The annuity grows the policy owner’s money, which is the value they can access if needed, the amount that can be transferred, and the heart of what is being purchased. We at LSW designed our annuities with the goal of growing a policy owner’s money, having strong renewal rates, and protecting retirement savings. LSW does not sacrifice renewal rates or policy benefits to support rider costs.

Important Dates for GLIR Applications

Week of February 22
Updated Calculator and Marketing Materials Available

March 12
Last day for applications to be received for policies to be issued with current Guaranteed Withdrawal Percentages. Applications must be received by 3:00 p.m. CST.

March 13
Effective date of new GLIR. For applications received on or after this date policies will be issued with the new reduced Guaranteed Withdrawal Percentages.

June 11
Last day for applications received by 3:00 p.m. CST on or before March 12, 2010 to be paid and issued with the current Guaranteed Withdrawal Percentages.

Please Remember: For applications received on or before March 12, 2010, policies must be paid and issued by June 11, 2010, or a new GLIR application signed by the policy owner and agent will be required. For applications received on or after March 13, 2010, policies will be issued with the new Guaranteed Withdrawal Percentages. This change does not affect policies currently in force.

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