Attributes of a good total retirement plan:

Safety
Liquidity
A good rate of return
Tax benefits
Protection

Few investments meet all of the desired characteristics. Some investments are liquid and may experience high returns, but are subject to market fluctuation and can lose value and even principal investment. Savings, money market accounts, CDs, and bonds are safe and liquid, but experience some of the lowest returns and poor tax benefits. Real estate provides tax benefits, but is not liquid and few markets experience high returns—some markets are in decline.

The right equity-indexed product can exhibit a desirable balance of each characteristic. Introduced in 1995, equity-indexed products are relatively new to the financial services world. In their short life span, equity-indexed products have shown that they add value and stability to their owners’ portfolios. We will highlight some of the features of Alliance Performance offered by Indianapolis Life.

Safety. The amount you invest into your plan has a guaranteed minimum interest rate. As long as the premiums continue, your investment will earn at least the minimum rate guaranteed in the contract, which is currently at 2%. Additionally, your principal investment remains safe. Alliance Performance guarantees that the participation rate will be 100% for the life of the contract.

Liquidity. The policy can be used as collateral with lending institutions and affords flexibility to use cash value for family needs such as college education, emergencies, and retirement.

A good rate of return. How important is a good rate of return? How long will it take for your money to grow? Consider The Rule of 72: 72 divided by Interest Rate = length of time it takes your investment to double.

Alliance Performance is an indexed product. The Standard & Poor’s Index (S&P 500*) is used as the index for this product. The S&P 500 Index* is used to measure the average stock price changes of the 500 most widely held companies representing over 100 specific industry groups, including General Electric, Microsoft Corp., Exxon Mobil Corp., Pfizer, Inc., Citigroup, Inc., Wal-Mart Stores, American Int’l Group, Intel Corp., Bank of America Corp., and Johnson & Johnson. This index is widely regarded as the best single gauge of the U.S. equities market. Historically, the S&P 500 Index* has outperformed fixed interest products such as corporate and government bonds and CDs.*

Instead of the Company declaring a specific interest rate or dividend, interest earnings on the Alliance Performance product are credited based on increases in the S&P 500 Index* without the market risk of actually investing in the S&P. However, past performance is no indication of future performance.

Tax benefits. Your investments need to outpace inflation, but of greater concern are taxes. Your plan’s success will be determined by how you pay taxes on your investments. Under current tax regulation, the Alliance Performance product provides income on a tax free basis and a death benefit neither you nor your heirs will have to pay income tax.

Protection. Though money can never replace the loss of a loved one. The Alliance Performance product can provide the money necessary to financially support your surviving heirs at the time when it is needed most.

We highly recommend that you consult with your financial advisor before making any deicison.

* "Standard & Poor's," "S&P," "S&P 500," "Standard & Poor's 500" and "500" are trademarks of The McGraw-Hill Companies, Inc., and have been licensed for use by Indianapolis Life Insurance Company. The Equity Indexed Strategies are not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of purchasing these products.