Select States - Total Value Annuity

A N N U I T Y
TOTAL VALUE
ACCUMULATION 50%/50%
Select States – AK, IN, MN, MO, NH, NJ, NV, OH, OR, PA, SC, TX, UT, WA
A Strong Option for Growing Your Retirement
When it comes to preparing for your retirement there are many choices. However, in
up and down markets, it is hard to know if they are the right choices. You not only
want to protect what you’ve worked so hard to earn, you would also like to see that
money work hard for you. Place your money where it will be protected and still have
the opportunity to increase in value. After all, you should be able to retire comfortably
and enjoy that next phase of life.
The Total Value Annuity from Security Benefit is a fixed
index annuity that credits interest to your contract based
on a portion of the returns of your choice of two market
indices – the S&P 500 ® (without dividends) and the
Annuity Linked TVI (ALTVI). You also have a third
option that allows you to allocate to Security Benefit’s
fixed account. (Please see the ALTVI Explained brochure
for more details on the ALTVI index.)

A typical American couple
looking to retire ... Bob and Carla
Bob and Carla are both 65. They got a late start on saving
for retirement, so they need a few more years to accumulate
savings. They want to set aside a portion of their retirement
savings with three goals in mind. Bob and Carla want a
product that:
• Will accumulate and has a tax deferral feature (they
anticipate being in a lower tax bracket in the future);
• Provides the potential for increasing value;
• Protects their hard-earned money from
market downturns.
Security Benefit’s Total Value Annuity (TVA) incorporates
all of these goals. First, it is credited with a 5% premium bonus.
So, $100,000 becomes $105,000. Second, Bob and Carla
have the option of allocating their funds into three different
interest crediting options – the S&P 500 ® Annual Point to
Point Index Account, the 5 Year Annuity Linked TVI Index
Account, and the fixed account. Third, with a fixed index
annuity, they cannot lose their premium due to market losses.
Bob and Carla wish they had known about the fixed index
annuity product option in 2007!
Accumulation Value
The graph below shows how TVA with a portion of the premium allocated to the 5 Year ALTVI Index Account is not
correlated to the S&P 500 or a traditional Fixed Index Annuity with premium allocated to an Annual Point to Point
interest option. The graph also shows what would have happened if a consumer had placed $100,000, with a 5% premium
bonus, into various retirement savings vehicles over the 15-year period from 1997-2012.
Hypothetical assumptions:
The line graph below depicts how the S&P 500 ® performed
using actual index values. The other three scenarios are based
on simulated activity and the following:
• $100,000 initial purchase payment
• 5% premium bonus for annuity products where applicable
• No withdrawals during the 15-year period.
Legend scenarios:
• 50/50 Simulated: 50% allocation to the 5 Year Annuity
Linked TVI Index Account with a 0.50% annual spread,
and 50% allocation to S&P 500 ® Annual Point to Point
Index Account with a 2.75% cap, with the 5% bonus.
• 2.75% Annual Point to Point Cap: Reflects a typical
annuity performance.
• Guaranteed Minimum: Given that the account remains
unchanged, the annuity’s Account Value will never fall below
your initial purchase payment.
• S&P 500 ® : Historical performance of the S&P 500 ® if
$105,000 had been invested on 12/31/1997.
$180,000
$170,000
$160,000
$150,000
$140,000
$130,000
$120,000
$110,000
$100,000
$90,000
$80,000
Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13
3.41% 50/50 Simulated ALTVI 0.50% Spread 1.83% 2.75% Annual Point to Point (Traditional Annuity) Cap 2.60% S&P 500 ® 0.00% Guaranteed Minimum

S&P 500 ®
In this hypothetical example, if $105,000 (including
$5,000 to match the annuity bonus amount so the
comparison starts equally) had been placed in the
S&P 500 ® at the end of 1997, by the end of 2012, it would
have returned an effective interest rate of 2.60%, resulting
in a gain of $49,313.
Traditional Fixed Index Annuity
If that same money had been in a traditional fixed index
annuity that credits interest based on a portion of the
annual return of the S&P 500 ® , during that same period,
the result would have been an effective annual interest rate
of 1.83% plus a $5,000 premium bonus, resulting in a gain
of $37,723.
Total Value Annuity Guaranteed Minimum
As with most annuities, the TVA guarantees that you
WILL NOT lose any of the money you pay in due to
downside market fluctuations. So, at a minimum, at the
end of the 10 years you will receive back your initial
premium plus the 5% premium bonus, for a gain of
$5,000 – guaranteed.
Total Value Annuity simulated example
At the end of the 10-year period, the premium and bonus
in the TVA, with 50% of the money in the S&P 500 ® and
the other 50% of your money in the ALTVI, would have
produced an effective annual interest rate of 3.41%, plus a
$5,000 premium bonus, for a gain of $73,700.
The Total Value Annuity is safe, guaranteed and built to
produce results. However, surrendering the TVA before
10 contract years may result in bonus recapture charges,
surrender charges and possibly a market value adjustment.
Additionally, if the Total Value Annuity is surrendered
prior to the end of the five-year term, for the 5 Year Annuity
Linked TVI Index, a vesting schedule applies. As with all
retirement vehicles, you should consider your financial
situation and all of the product details before making a
purchase decision. Know if this is the right product for you
by asking your agent to walk you through the features and
benefits of the product.
Find out what a fixed index annuity
can do for your retirement situation.
The table shows the value of $100,000 in four scenarios, with the effective interest rate at the bottom of each column.
End of
Year
Guaranteed
0% Index Interest Rates
Recent
Based On Index Values
2002-2012
Least
S&P 500 ® Index (1998-2008)
ALTVI Index (2002-2012)
Median
S&P 500 ® Index (2002-2012)
ALTVI Index (1995-2005)
Best
S&P 500 ® Index (1994-2004)
ALTVI Index (1993-2003)
0 $105,000 $105,000 $105,000 $105,000 $105,000
1 $105,000 $106,444 $106,444 $106,444 $106,444
2 $105,000 $107,927 $106,444 $107,927 $107,927
3 $105,000 $109,451 $106,444 $109,451 $109,451
4 $105,000 $111,018 $106,444 $111,018 $111,018
5 $105,000 $130,665 $125,965 $140,270 $139,791
6 $105,000 $130,665 $127,489 $140,270 $139,791
7 $105,000 $132,318 $129,055 $141,923 $139,791
8 $105,000 $134,017 $130,665 $143,622 $139,791
9 $105,000 $134,017 $132,318 $143,622 $141,445
10 $105,000 $135,763 $132,318 $172,255 $183,618
Annual
Effective Rate
after 10 years:
0.00% 2.60% 2.34% 5.07% 5.75%
The information above refers to simulated past performance, which cannot be relied on as a guide to future performance. For the S&P 500 ® Index, the Least, Median, and Best index increase 10-year periods were based on
historical index values as reported by Standard & Poor’s ® . For the Annuity Linked TVI Index, the Least, Median and Best index increases 10-year periods were based on simulated index values as reported by Bloomberg.
The Least, Median and Best index increase 10-year periods were determined for each index separately. The Median period is the sixth best index increase out of the 11 10-year periods from 2002 to 2012. It is not the average
of the Best and Least increase periods. To determine the Least, Median and Best index increase 10-year periods no Cap, which applies in determining the Index Interest Rate for the S&P 500 ® Annual Point to Point Index
Account and no spread or participation rate or vesting percentage, which may apply in determining the Index Interest Rate for the 5 Year Annuity Linked TVI Index Account, were taken into account. However, in order
to calculate the annual values of the accumulation numbers in the table, a 0.50% annual spread currently applies to the 5 Year Annuity Linked TVI Index Account and is reflected in the simulated past performance shown
above. Depending on market conditions, a participation rate may also apply in the future. A 2.75% Cap has been applied to the S&P 500 ® Annual Point to Point Index Account and is reflected in the numbers shown above.
Although this product was not available for the period of time referenced above, actual historical prices of the indices were used in this example, which was intended solely for comparative values and is not an indication of
the product’s past or future performance.
This table does not show what the accumulation will be under any Total Value Annuity because the past performance of the S&P 500 ® Index and the simulated past performance of the Annuity Linked TVI Index does not
reflect what will happen in the future. In addition, the actual caps, spreads, and participation rates may be different than what is assumed for this table. Caps, spreads, and participation rates are set at our discretion at the
beginning of each Index Term based upon factors we consider relevant, including market conditions.

Fixed index annuities are not stock, bond or commodity market
investments and do not directly participate in any equity, bond,
other securities or commodities investments. Market indices do not
include dividends paid on the underlying stocks, and therefore do
not refl ect the total return of the underlying stocks; neither an index
nor any market-indexed annuity is comparable to a direct investment
in the equity markets. Clients who purchase indexed annuities
are not directly investing in the equity, bond, or other securities or
commodities markets.
During the 10-year surrender charge period all or part of the
bonus may be recaptured. Bonus annuities, such as the Total Value
Annuity, may use factors to determine interest rates that result in
lower interest credited in future years, have higher surrender charges,
longer surrender charge periods, or other charges than similar
annuities without a bonus. The reduction of interest or higher charges
may exceed the amount of the bonus.
The Security Benefi t Total Value Annuity [Form 5700 (3-12) and
ICC12 5700 (3-12)], a fi xed index fl exible premium deferred annuity
contract, is issued by Security Benefi t Life Insurance Company
(Security Benefi t). The Guaranteed Minimum Death Benefi t (GMDB)
Rider [Form 5721 (3-12)], an optional rider available for purchase
with the Security Benefi t Total Value Annuity, is issued by Security
Benefi t Life Insurance Company. Guarantees provided by annuities
are subject to the financial strength of the issuing insurance company.
Annuities are not FDIC insured; are not obligations or deposits of, and
are not guaranteed or underwritten by any bank, savings and loan or
credit union or its affiliates; are unrelated to and not a condition of the
provision or term of any banking service or activity.
The Total Value Annuity and optional rider should only be
purchased if you have other sources of funds to meet your immediate
liquidity needs because a bonus recapture and surrender charge
apply during the first 10 years and will reduce the amount you
receive. In addition, a market value adjustment may apply and may
reduce the amount you can receive. Please see the SOU for an
explanation of the bonus recapture, surrender charge and market
value adjustment.
If you purchase 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
benefi ts in addition to tax deferral that other funding vehicles may not
offer, including death benefi t protection for benefi ciaries and annuity
options that guarantee income for life. Neither Security Benefi t nor its
representatives offer legal or tax advice. Please consult your personal
attorney and/or advisor regarding any legal or tax matters.
The Annuity Linked TVI (the “ALTVI”) is derived from the Trader
Vic Index – Excess Return (or “TVI”). The ALTVI has a volatility
control overlay that is adjusted daily based on recent historical
volatility, so that more volatility generally leads to reduced exposure
to the TVI and less volatility generally leads to more exposure.* The
overlay may thus reduce or increase the potential positive change
in the ALTVI relative to the TVI and thus may lessen or increase the
interest that will be credited to a fi xed indexed annuity allocated to
the ALTVI relative to one allocated to the TVI (which is not available).
The overlay also reduces the cost to hedge the interest crediting risk
to Security Benefi t Life (“SBL”). As a result, SBL may be able to offer
a higher cap, higher participation rate, or lower spread on the ALTVI
as a crediting option within a fi xed index annuity relative to what it
would be able to offer with the TVI as a crediting option. The cost for
the volatility control overlay and maintaining the ALTVI is 1.25% per
annum. RBS collects this daily through an up front pro rata deduction
from the TVI in calculating the ALTVI.
* As low as 10% (in the event of very high volatility) to as high as
150% (in the event of very low volatility). Historical average as of
February 13, 2013 = 94.5%.
S&P ® is a registered trademark of Standard & Poor’s Financial
Services LLC (“S&P”) and Dow Jones ® is a registered trademark
of Dow Jones Trademark Holdings LLC (“Dow Jones”.) These
trademarks have been licensed for use by S&P Dow Jones Indices
LLC. S&P ® and S&P 500 ® are trademarks of S&P and have been
sublicensed for certain purposes by Security Benefi t Life Insurance
Company. The Security Benefi t Total Value Annuity is not sponsored,
endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow
Jones, S&P or their respective affiliates make any representation
regarding the advisability of purchasing such product.
TVI, TVI Index, Trader Vic Index, and EAM are trademarks of EAM
Partners L.P. (“EAM”) and have been licensed for use by Security
Benefi t Life Insurance Company. EAM created and owns rights to
the methodology that is employed in connection with the Trader Vic
Index. The Annuity Linked TVI Index, ALTVI, RBS, The Royal Bank
of Scotland and the DAISY device logo are trademarks of The Royal
Bank of Scotland Group plc and The Royal Bank of Scotland plc
(together, “RBS”) and have been licensed for use by Security Benefi t
Life Insurance Company. This product is not sponsored, endorsed,
sold or promoted by either EAM or RBS, and neither EAM nor RBS
make any representation regarding the advisability of purchasing
these products.
Security Benefi t is indirectly controlled by Guggenheim
Partners, LLC.
This document must be accompanied by the Total Value Annuity Base Product brochure.
800.888.2461
One Security Benefi t Place, Topeka, KS 66636-0001
securitybenefi t.com
IM-22310-08 2013/01/31