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fluctuations in interest rates. From 1962 to 2006,for example, the daily average for the U.S. CMTRate was 6.91%. This rate has been fluctuatingbetween 4% and 5% for most of 2006. If historyrepeats itself and rates trend upwards, it may payto have a fixed annuity contract with a rate tied tothe 5-year U.S. CMT Rate. 5In the following hypothetical example, Joepurchases an Allstate Treasury-Linked Annuitycontract for $100,000. He receives a 5-yearguaranteed interest rate of 4% at the beginningof his contract. In this example, Joe would receivea greater amount of interest in a T-Link contractwith a 4% 5-year guarantee rate than he wouldwith a 4.5% fixed investment because of theincreases in the 5-year CMT Rate, shown in thechart below.This example shows a $2,738 T-Link advantage($127,356 - $124,618 = $2,738) and shows thatwhat may initially appear bigger may not alwaysbe better for the customer. Increasing 5-year U.S.CMT Rates may make a lower guaranteed rate onthe T-Link perform significantly better than ahigher fixed rate. Of course, if the 5-year U.S.CMT Rate declined over the same 5-yearperiod, Joe would have received theguaranteed rate of 4%, which wouldresult in less interest than with the4.5% fixed investment.Best of Both WorldsAs with all investments though, there is noguarantee that it will perform better than otherinvestments, but at least T-Link can guaranteethat the potential to do better is there. And it offersthe best of both worlds – downside protection andupside potential. 2Elizabeth Cranston is a marketing professional forLincoln Benefit Life.Charts are hypothetical and for illustrative purposesonly, and are not intended to predict future results.Examples assume a $100,000 initial investmentwith no additional purchase payments and nowithdrawals taken during the 5-year guaranteeperiod. Examples do not reflect the effect offederal or state taxes. The rate of return on the5-year Allstate Treasury-Linked Annuity may behigher or lower than a 5-year guaranteed rate ona fixed annuity product that is non-treasury-linked.Example assumes a 100% participation rate.5 Past performance of the 5-year U.S. CMT Rate or Allstate Treasury-Linked Annuity 5-yearguarantee rates are not indicative of future results.6 Waivers are automatically included with all contracts if approved in that state. Seeendorsements for specific details, terms, conditions and limitations.7 A portion of each payment will be considered taxable, and the remaining portion will be anontaxable return of your investment in the contract, which is also called the “basis.” Oncethe investment in the contract is depleted, all remaining payments will be fully taxable. Ifthe contract is tax-qualified, generally, all payments will be fully taxable. Payments takenprior to age 59½ may be subject to an additional 10% federal tax penalty.All guarantees are based on the claims paying ability of Lincoln Benefit Life Company.There are no interest rate enhancements during the first year of each 5-year guaranteeperiod. Loss of principal due to surrender charges may occur if the annuity is surrendered inthe early years since the purchase payment was made.18 the edgeThe exact match to the 5-year U.S. Treasury Rate increase is called “ full participation”and is guaranteed for the first five years. A participation rate is set for the entire5-year guarantee period. Lincoln Benefit Life Company reserves the right to changethe participation rate for subsequent renewal periods.The Allstate® Treasury-Linked Annuity is a flexible deferred annuity issued by LincolnBenefit Life Company, Home Office: Lincoln, NE, a wholly owned subsidiary of Allstate LifeInsurance Company, Home Office: Northbrook, IL. Allstate® Treasury-Linked Annuity isavailable in most states with contract series AP0200 and certificate series GAP0200.Not FDIC, NCUA/NCUSIF Insured. Not insured by any federal government agency.Not a deposit. Not guaranteed by the bank or credit union. May go down in value.FOR BROKER/DEALER OR AGENT USE ONLY — this material may not be quoted,reproduced or shown to members of the public, nor used in electronic or written form assales literature for public use.