ANNUITIES

Gold Series Sage Choice Single Premium Deferred Annuity

The problem with the future is that it arrives before we are ready...

The time to plan for retirement is now! When your working days come to an end, so does your salary. And pensions and social security usually can't cover the total lost income. So where will the money for your retirement come from? For many people, a deferred annuity may be the answer.

Why choose a defferred annuity?

For those with time to save for retirement and who may be uncomfortable with riskier stock market investments, a deferred annuity offers an excellent alternative. The Gold Series Sage Choice Single Premium Deferred Annuity builds from a single initial premium and earns a competitive fixed rate of interest that accumulates on a taxed deferred basis.

The power of tax deferral

Since your earnings will not be subject to income tax until they are withdrawn by you, the value of your Contract is not being reduced by taxes. This means the money that would have gone to pay taxes can remain invested and continue to earn interest. Because of tax deferral, your money has greater potential for growth than it would in a similar, non-tax deferred investment.

Penalty free withdrawal

Beginning in year 1, you may withdraw up to 10% of the last Contract Anniversary Accumulation, Surrender Charge free (The minimum withdrawal is $500). However, withdrawals may be subject to regular income tax and, if made prior to age 59 1/2 may be subject to a 10% IRS penalty. Sagicor does not render legal or tax advice. If legal or tax advice is required, the services of a qualified competent professional should be sought.

CONFINEMENT/TERMINAL ILLNESS WAIVER OF SURRENDER CHARGE¹

If the Owner of the Contract is confined to a licensed Nursing Home or Confined Care Facility, as defined in the Contract, for 90 consecutive days or more or is diagnosed by a licensed physician as having a terminal illness with a life expectancy of six (6) months or less, the Contract Accumulation Value will be available without a Surrender Charge or MVA². This feature is provided at no extra cost.

Surrender Charge

The Sage Choice is not subject to any up front sales charge. However, during the first six (6) years that you own the Contract, there is a penalty called Surrender Charge that will be incurred for withdrawals in excess of the Maximum Free Percentage.

Surrender Charge percentage by Contract Year are as follows: Year 1 = 7%, Year 2 = 7%, Year 3 = 7%, Year 4 = 6%, Year 5 = 5%, Year 6 = 3%, Year 7+ = 0%. The Surrender Charge does not apply in the event of the Owner's death or in instances when the Confinement/Terminal Illness Waiver of Surrender Charge requirements are met.

Part of the Penalty Free Withdrawal Provision is known as the "Bailout Feature", which provides you with an opportunity to receive 100% of the Contract's value without penalty should, after the first Contract year, Sagicor declare a Fixed Interest Rate that is 1% (or greater) below the Contract's Initial Fixed Interest Rate.

To exercise the "Bailout Feature" of the Penalty Free Withdrawal Provision, the Contract Owner must notify Sagicor, in writing, within 30 days of receiving notice of the Interest Rate Change. The "Bailout Feature" is only available the first time that a Declared Fixed Interest Rate is 1% (or greater) below the Contact's Initial Fixed Interest Rate. Thereafter, the "Bailout Feature" is no longer available to the Contract Owner.

Interest Crediting

Due to ever changing market conditions, the Initial Interest Rate that will be credited to your annuity is determined at the time of purchase. Once determined, your Initial Interest Rate is then guaranteed by Sagicor for 12 months.

Each year thereafter, following your Contract�s anniversary, you will receive an Annual Statement showing the interest rate to be credited for the next 12 months. This interest rate will never be less than the Guaranteed Minimum Fixed Interest Rate stated in your Contract.

The Initial Interest Rate for the first year will be provided prior to your purchase and should be considered carefully as part of your decision making process.

Gold Series Sage Choice Single Premium Deferred Annuity - Product Overview

Six (6) Year Single Premium Deferred Annuity
Issue Ages: 15 days - 90 years (age last birthday)
Minimum Premium - $2,000
Maximum Premium - There is no Maximum Premium. Premium of $500,000 or greater require Home Office approval.
Free Withdrawal Provision ("Bailout Feature"): Included in the Contract.
Guaranteed Minimum Interest Rate: 2% for the first 10 years and 3% thereafter.
Contract Loan - None
Free-Look Period - 30 days
Death Benefit: Accumulation Value on the date of the Owner's death. Surrender Charges do not apply.
Maturity Age - 100
Annuity Payments - Allowed after the first Contract year, annuity payments can be taken either as income payments for life, or as income payments for a specific period of years. If the annuity payments begin prior to the end of the Surrender Charge Period, Surrender Charges may depend on the payment option selected.
Market Value Adjustment ("MVA")²: An MVA will apply, only during the Surrender Charge Period, to any partial withdrawals in excess of the Maximum Free Partial Withdrawal amount and at the time the Contract is surrendered. Depending on the direction interest rates move, the MVA may increase or decrease benefits payable under the Contract. However, in no event will the MVA reduce the Cash Surrender Value below the Guaranteed Cash Surrender Value. An MVA will not apply if a payment option is elected that provides annuity payments for five years or longer, to pay a Death Benefit, or if the Confinement/Terminal Illness Waiver of Surrender Charge requirements are met.

Disclosure

Gold series Single Premium Deferred Annuity Contracts are issued by Sagicor Life Insurance Company, a member of the Sagicor Group of Companies. Contract form 3005 may not be available in all states. State variations may apply

¹ This provision of the policy, in part or in whole, may not be available in all states. Please consult with your producer for more information.

²MVA not applicable in MN, MO and PA.