®
A GUGGENHEIM PARTNERS COMPANY
Total Interest Annuity
Protect Your Principal
Contributions and Transfers
Guaranteed Interest
Positive stability.
Total Interest Annuity
Your retirement is your event. You’ve been planning,
saving and dreaming for that day when you can
say you are now retired. If you are like many, you
carefully saved and invested. As you edge closer
to retirement, you’re now concerned about what
a market downturn can do to your retirement
savings, your plans and when you want to retire.
You need assurance. You need a guarantee.
Security Benefit’s Total Interest Annuity is a
flexible premium deferred annuity that can
provide guaranteed retirement income through
withdrawals or annuitization. You can never be
certain what the financial market will do to your
investments, but the Total Interest Annuity can
allow you to protect your contributions and earn
interest that is guaranteed to be there for you at
retirement (subject to any applicable surrender
charges). Stability, assurance, protection: that’s the
Total Interest Annuity guarantee.
®
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Plan for retirement with the
Total Interest Annuity
Financial markets can be volatile with potential for big gains and big losses. While a long-term investment
strategy may provide enough time for your investments to recover from losses, entering retirement during the
middle of a market downturn may affect or delay your retirement plans.
As you move closer to retirement, some of your savings should be guaranteed1. Whether you’re saving for
retirement through your employer’s retirement plan or your own Individual Retirement Account (IRA), you
can make regular contributions (referred to as Purchase Payments) to purchase the Total Interest Annuity.
Your contributions will continue to grow and will be protected against the volatility of the financial markets.
Through the next few pages of this brochure you'll learn three aspects about the Total Interest Annuity and
how you can use it to protect your retirement savings.
Protect Your Principal
Find out how your contributions into the Total Interest Annuity are protected from market risk.
Direct Your Contributions and Transfers
Learn how you can protect your future retirement contributions and your current retirement savings.
Guaranteed Interest
Understand how you earn interest that is guaranteed regardless of how well the market performs.
+
Guaranteed
retirement
1Withdrawals taken before the end of the surrender charge period may be subject to surrender charges.
2
Protect your principal
Look to avoid market risk
As you have carefully saved for retirement
Expertise from
Guggenheim Partners
throughout your career, you may have chosen
Known for their expertise in fixed income
typical market-based assets – for example, a
investments, Guggenheim Partners manages
mutual fund. During market downturns you
Security Benefit’s general account investment
may become concerned about your investments
portfolios. The firm’s investment expertise
and their ability to recover.
helps us provide competitive credited rates for
our fixed annuity products including the Total
It can be important to protect your retirement
Interest Annuity.
contributions from market risk. The Total
Interest Annuity allows you to avoid experiencing
Security Benefit is dedicated to the preservation
the pitfalls of the financial market by placing
and growth of our clients’ retirement savings
your retirement savings into an annuity that is
and to upholding the principles and integrity
separate from your traditional retirement assets
of Guggenheim. The Guggenheim name
which can fluctuate with the market. The Total
represents a rich tradition of innovation and
Interest Annuity can help you begin retirement
success in business, philanthropy, education
with assets that are guaranteed.
and investments. Guggenheim’s legacy is one of
Principal protection by
Security Benefit Life
Your contributions into the Total Interest
Annuity are protected by Security Benefit Life
Insurance Company (SBL). SBL has been a
stalwart of strength since 1892, helping people
prepare for their futures. As a Guggenheim
Partners company, SBL is privately held and
is one of the leading providers of retirement
savings products for educators in the
K-12 market.
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the most enduring in modern global business.
Market risk and return
during the last decade
Below is a snapshot of the market returns from April 2001 through April 2011. Market risk has had its rewards
over the past decade, but if you were planning to retire during the last 10 years some of the market downturns
during that same time period could have affected your retirement assets and your plans for retirement.
Market performance in the S&P 500®
April 2001 – April 2011
$11,864
$10,914
$10,000
0.88%
Annual Return
2001-2011
(compound annual
growth rate)
$7,339
2001
2002
2003
$6,985
2004
2005
2006
2007
2008
2009
2010
2011
Market downturns may have affected retirement savings
The average annual return for stocks within the S&P 500® over the last 10 years was less than 1%, largely due
to the market downturns during 2002 and again in 2008. These market fluctuations are often referred to as
“volatility.” During that time, volatility was often higher month-to-month due to many of the economic and
political issues the U.S. economy was facing. Those who planned to retire during the last 10 years may have
seen the market impact their retirement savings and had to change their retirement plans.
Avoid market risk – Protect your principal
You can protect your retirement savings from these volatile market events through the Total Interest Annuity.
You may find comfort knowing that your principal is protected and knowing that you’ll be consistently earning
interest each year, regardless of how well the market performs.
4
Direct contributions and transfers
Contribute through your
employer’s plan or your
own IRA2
Transfer assets for protection
You can begin contributing to the Total Interest
Total Interest Annuity. You have the flexibility
Annuity by setting up a payroll deferral through
to protect a part of your existing retirement
your employer’s 403(b) plan or automatic
savings by moving assets from other accounts
drafts from your bank account for an IRA.
within your 403(b) plan or other IRAs into the
Contributions through your 403(b) plan are also
annuity at any time.
You may also choose to transfer existing
balances from other investments into the
tax deferred.
In-Service Transfers for 403(b) plans
The maximum amount you can defer into your
If you have some of your retirement savings
403(b) plan is $17,000 each year or $5,000 to
with another provider you may have the option
an IRA.
to transfer those amounts to the Total Interest
Play catch-up
Annuity. Transfers made to the Total Interest
Once you reach 50 years old, federal tax laws
contribute each year.
allow you to participate in the Catch-Up
provision. Those participants over age 50
IRA Rollovers
who are participating in an employer
You can also choose to protect some or all of
sponsored retirement plan can contribute
your retirement savings that are currently in an
up to a maximum limit of $17,000 (for 2012)
IRA or Roth IRA. Generally, you can choose
and an additional $5,500 each year. A similar
to make a rollover from other investments in
provision is available for IRAs, but the limit
an existing IRA to a new IRA within the Total
is only an additional $1,000 each year to the
Interest Annuity. Transfers don't affect the
current IRA contribution limits.
amount you can contribute each year.
Annuity don't affect the amount you can
2If you are purchasing an annuity to fund a retirement plan, such as an IRA that receives preferential tax treatment under the Internal Revenue
Code, you should consider that an annuity does not provide any additional tax advantages to those already available from a retirement plan.
However, an annuity does offer other features and benefits in addition to tax deferral that other funding vehicles may not offer, including death
benefit protection for your beneficiaries and annuity options that guarantee income for life. You should consult your advisor, agent, or financial
advisor about whether the overall benefits and costs of an annuity are appropriate considering your circumstances.
5
Maximize your contributions
Be ready for retirement
By purchasing the Total Interest Annuity, then contributing $16,500 and an additional $5,500 for the Age 50+
Catch-Up provision over 10 years, you could build your retirement savings that is guaranteed to be there when
you are ready for retirement (subject to any applicable surrender charges).
$256,852
after 10 years of making the maximum
salary contributions allowed.
(This hypothetical illustration assumes a person
makes 10 years of Purchase Payments
of $16,500 and an additional $5,500 of
Purchase Payments each year for the Age 50+
Catch-Up provision. The interest credited is
3% with a 2% bonus for Purchase Payments
made in the first year of the contract and 3%
for years 2-10.)
$199,330
$119,179
$69,560
$22,591
10 YEARS
5 YEARS
1 YEAR
Yearly contributions
Total value
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Guaranteed Interest
You don’t have to sacrifice
all of your investments
within your traditional
portfolio for a guarantee.
You can begin your future
retirement savings in your
Total Interest Annuity,
which offers three levels of protection.
An Initial Interest Rate
Getting started with a
bonus rate
The Total Interest Annuity will also provide
an additional Bonus rate to help you begin
your contract. The Bonus rate is an additional
interest rate applied to all contributions received
within the first year of your annuity and is
only credited for one year. Bonus annuities
may include lower interest rates, longer
surrender periods, higher surrender charges
As you continue saving for retirement, stay
or other restrictions that are not included in
on track with your plans by making sure
annuities that don’t offer a bonus.
your future contributions are guaranteed
and will be there for you at retirement. Your
In lieu of the Bonus Rate, for Texas contracts,
contributions are not only protected but
the first year Initial Interest Rate will include
also receive an initial interest rate that is
additional guaranteed interest equivalent
guaranteed. Future contributions including
to the current Bonus Rate for contributions
payroll deferrals, in-service transfers, or
received in the first year of the contract.
rollovers all receive the initial interest rate for
the first 12 months.
Minimum rate guarantee
The Total Interest Annuity also offers a
Each of your contributions receives a
guaranteed minimum interest rate (GMIR).
guaranteed interest rate for one year. After
This is the minimum amount of interest
each guaranteed interest rate expires a new
earned for every contribution you make below
interest rate is set and will apply for one year.
which interest rates are guaranteed to never
fall. Regardless of how much interest rates
change, you can be assured that you will
continue to receive at least the GMIR.
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How the Total Interest Annuity fits as a part
of your overall retirement savings plan
Your Total
Interest Annuity
Your equity
portfolio
By purchasing the Total Interest
As a long-term view to retirement
Annuity you can continue to build your
you may have primarily invested
retirement savings and guarantee that
in stocks and bonds with the
your future contributions in the annuity
belief that long-term gains would
(subject to any applicable surrender
overshadow any short-term losses.
charges) will be there for you at retirement
You may choose not to give up on
regardless of what happens in the market.
this investment approach, but you
may want to consider a different
approach as you near retirement.
Total Interest
Annuity (Guaranteed)
Bonus rate
MARKET RISK
Volatility
Interest rate
Stocks
GMIR
Bonds
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A closer look at the Total
Interest Annuity
The Total Interest Annuity is a flexible premium deferred
annuity that allows you to make ongoing Purchase Payments
(contributions). It is an opportunity for you to save for
retirement over a period of time and is an alternative to other
retirement savings vehicles that may contain “market risk.”
Guaranteed interest rates
Initial Interest Rate
The interest rate for new Purchase Payments applies for a
12-month period and rates are established periodically. Because
Purchase Payments can be made at different times, different
interest rates may apply to all of your contributions. Thus, a
Purchase Payment made on February 2, 2012, would earn the
rate that applies for that date until February 2, 2013. A Purchase
Payment made on June 12, 2012, would earn the rate that applies
for that date until June 12, 2013.
Renewal Rate
The interest rate for Purchase Payments following the first
12 months is set periodically. Thus, Purchase Payments made
January 1 through March 31, 2012, would earn the first quarter
renewal rate after the first 12 months.
Bonus Rate
For Purchase Payments made during the first 12 months of
the contract, a Bonus rate of interest will be added to the initial
interest rate. This Bonus rate will be in effect for 12 months.
For a Total Interest Annuity contract beginning on January
1, 2012, and a new Purchase Payment that was made on
December 1, 2012, the new Purchase Payment would earn the
initial interest rate and the Bonus rate until December 1, 2013.
Accessing your funds
Free Annual Withdrawals up to 10%
Within the first 10 years of your contract, you can generally
withdraw up to 10% of your contract value per year without
a surrender charge. However, withdrawals that exceed that
limit may be subject to a surrender charge in accordance with
the schedule listed on page 10. Withdrawals taken before age
59 1/2 may also be subject to an IRS penalty tax.
Issue Ages
0 – 85 years of age (may vary by state)
Planning for early retirement
Surrender Charge Waiver for Early Retirement Rider
(not available in Connecticut, Maryland, Massachusetts,
Texas or Washington)
If you are making contributions to your Total Interest
Annuity through your 403(b) plan, you may choose to add
the Surrender Charge Waiver for Early Retirement Rider. If
your contract has been established for five years and you are
separated from service in or after the year you turn 55 years
old, you can have access to all of your Purchase Payments and
the interest earned. It allows you to make withdrawals from
your contract and avoid surrender charges.
This rider offers the option to take withdrawals from your
contract prior to the end of the surrender charge schedule
without incurring surrender charges if you meet all of the
following:
• Minimum of five years in the contract
• At least 55 years old
In lieu of the Bonus Rate, for Texas contracts, the first year
Current Interest Rate will include additional guaranteed
interest equivalent to the current Bonus Rate.
• Must separate from service at or after age 55
Guaranteed Minimum Interest Rate (GMIR)
The Guaranteed Minimum Interest Rate is the minimum
interest rate for the contract. Your Purchase Payments will
always earn at least the GMIR. The GMIR is established at
contract issue and does not change.
first 10 years of your contract.
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Cost: 0.25% reduction of your overall interest rate for the
Once you elect this rider it cannot be revoked.
Planning for needs
Return of Purchase Payments Guarantee Rider
(not available in Texas, Vermont or Washington)
If you’re concerned about gaining immediate access to your
funds, you can choose the Return of Purchase Payments
Guarantee Rider. This rider guarantees that the Cash
Surrender Value of the contract will never be below the
Purchase Payments made.3 This rider gives you the ability to
withdraw in full all of the Purchase Payments made. If the
applicable surrender charge is greater than the interest you’ve
earned, no interest will be paid. If the interest earned is greater
than the applicable surrender charge, you will receive the
interest due after payment of the surrender charge.
Purchase Payment Limitations
Minimum Purchase Payment is $50 per month on a recurring
basis or a $2,500 lump sum; maximum is $1 million in total
Purchase Payments.
Understanding the surrender
charge schedule
All surrender charges end after the 10th contract year
(9th contract year for contracts issued in Indiana, Maryland,
Mississippi and Washington). Withdrawals made that exceed
the annual free withdrawal amount may be subject to surrender
charges according to the schedule below.
Cost: 0.10% reduction of your overall interest rate for the
first 10 years of your contract.
For all states except Indiana, Maryland, Mississippi and Washington
Once you elect this rider it cannot be revoked. There are no
Surrender charges apply to each purchase payment based on time since
payment was made.
age or service qualifications.
Age of Purchase Payment
Surrender Charge Percentage
Less than 1 year
8.5%
1 to < 2 years
8%
Rider
comparison
Surrender Charge
Waiver for
Early Retirement
Return of
Purchase Payments
Guarantee Rider
2 to < 3 years
7%
3 to < 4 years
6%
4 to < 5 years
5%
Cost:
0.25% reduction
in interest rate
0.10% reduction
in interest rate
5 to < 6 years
4%
More than 6 years
0%
Minimum length contract held:
5 years
None
All surrender charges end after the 10th contract year.
Minimum age:
55
None
Minimum age of separation
from service:
55
None
Withdrawal charges apply:
No
No
Death Benefit
If the owner dies before the annuity start date, the full contract
value is paid to the contract beneficiary without surrender
charges or additional fees, less any applicable premium tax.
Other limitations and requirements
60-Day Rate Lock for Incoming Transfers
Once Security Benefit has received a complete application,
in good order, we will hold the current initial interest rate for
a period of up to 60 days for the applicant to make his or her
rollover or transfer to the Total Interest Annuity. After 60 days,
the current initial interest rate at the time will be credited to the
Purchase Payment.
In the states of Indiana, Maryland, Mississippi and Washington only
Surrender charges apply to all purchase payments based on
contract year.
Contract year
Surrender Charge Percentage
Year 1
8.5%
Year 2
8%
Year 3
7%
Year 4
6%
Year 5
5%
Year 6
4%
Year 7
3%
Year 8
2%
Year 9
1%
Year 10+
0%
All surrender charges end after the 9th contract year.
3Less any previous withdrawals and any premium tax due or paid by Security Benefit, and is applicable on a full withdrawal only.
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Protect Your Principal
Protect part of your retirement savings and avoid market risk with a guarantee from Security Benefit Life Insurance
Company.
Direct Your Contributions and Transfers
Contribute up to $17,000 each year to the Total Interest Annuity through your retirement savings contributions and consider
protecting your current retirement savings by transferring assets within your plan or through an IRA rollover.
Guaranteed Interest
Consistently earn interest without subjecting this part of your retirement savings to market risk. Contributions and transfers
within the first year of your Total Interest Annuity contract can also earn an additional bonus credited rate.
Regardless of how close you may be to retirement consider protecting at least a portion of your retirement savings from market
risk with a guarantee. The Total Interest Annuity can help ensure that your contributions are guaranteed to be there for you at
retirement.
Get Started Today!
Work with your financial representative to establish your Total Interest Annuity. Begin making contributions through your
403(b) plan or establish your own regular IRA contributions. Consider protecting your current retirement savings by transferring
assets from other accounts in your 403(b) retirement plan or an IRA Rollover.
We look forward helping you To and Through Retirement®.
This brochure contains highlights only. Please refer to the annuity contract for details about the product and any
charges or limitations.
The Total Interest Annuity, form 5100 (2–11), is a flexible purchase payment deferred annuity issued by Security
Benefit Life Insurance Company. Product features, limitations and availability may vary by state. Guarantees
provided by annuities are subject to the financial strength of the issuing insurance company and:
* ARE NOT A DEPOSIT
* ARE NOT FDIC OR NCUA/NCUSIF INSURED
* ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Neither Security Benefit nor its representatives offer legal or tax advice. Please consult your personal attorney or
tax advisor regarding any legal or tax matters.
®
A GUGGENHEIM PARTNERS COMPANY
One Security Benefit Place • Topeka, KS 66636-0001 • 785.438.3000 • www.securitybenefit.com
22-90190-03 2012/02/13