Life Insurance Selling

Compounding Interest vs. Simple Interest DOES MATTER! DOES MATTER! [ [

American Equity’s

LIFETIME INCOME BENEFIT RIDER

(LIBR-2010)*

5% OR 8% OFFERS YOUR CLIENTS A

COMPOUNDING RATE ON THEIR IAV**

IAV - COMPOUNDING VS. SIMPLE

Compounding
Simple

$240,000.00

$220,000.00

Benefit Amount

$200,000.00

$180,000.00

$160,000.00

$140,000.00

$120,000.00

$100,000.00

01234

5678910 Years

11 12

YOUR CLIENTS
DESERVE BETTER
LONG TERM VALUE

=

Year

1

2

3

4

5

6

7

8

9

10

11

IAV AMOUNT

Compounding Simple Difference

$108,000.00 $108,000.00 $0.00

$116,640.00 $116,000.00 $640.00

$125,971.20 $124,000.00 $1,971.20

$136,048.90 $132,000.00 $4,048.90

$146,932.81 $140,000.00 $6,932.81

$158,687.43 $148,000.00 $10,687.43

$171,382.43 $156,000.00 $15,382.43

$185,093.02 $164,000.00 $21,093.02

$199,900.46 $172,000.00 $27,900.46

$215,892.50 $180,000.00 $35,892.50

$233,163.90 $188,000.00 $45,163.90

COMPOUNDING INTEREST

*Form number and availability may vary by state. LIBR-2010 not available with Index-6-05 **By Choosing the 8% IAV Option you will be charged a 0.90% annual fee from your contract value. 5% Option is available for all issue ages for no fee. 8% Option available for ages 50+. Income Account Value (IAV) only used to calculate lifetime income payments. Not part of underlying contract value or available in a lump sum. Not included in death benefit. Interest grows until the earlier of payments beginning or the end of the IAV period. If payments not elected by 10th contract anniversary for the 5% Option, or 7th contract anniversary for the 8% Option, growth of IAV will stop unless client elects to restart accumulation period. Claims paying ability based on the financial strength of American Equity. See brochure and disclosure for details.