BCA™ BalancedChoice™ Annuity A single premium fixed indexed deferred annuity

A single premium fixed indexed deferred annuity is a long-term retirement savings product that can help protect you from outliving your money. It’s a contract between you and an insurance company. In return for your money, or premium, the insurance company agrees to provide certain benefits. When you put money into an Athene fixed indexed deferred annuity, you create something that can grow over the years, and then, at a later time, can pay you an income for a period of time, even for a lifetime. And since it’s your money, we’ve made sure our annuities have many options so they can be customized for you, your family and your life.

Prepared On: Prepared For:

July 11,2014 Valued Client

Prepared By:

Stan The Annuity Man P.O. Box 2225 Ponte Vedra Beach, FL 32004 (800) 509-6473 [email protected]

This is a hypothetical Illustration. An illustration is not intended to predict actual performance. Interest rates or values shown in the illustration are not guaranteed, except for those labeled as guaranteed.

Athene Annuity and Life Company 7700 Mills Civic Parkway West Des Moines, IA 50266-3862 Tel: 1 800 255 2405 www.athene.com A Disclosure Summary and a Buyer’s Guide to Fixed Indexed Deferred Annuities must accompany this illustration. If you have not received these documents, please request them from your financial professional.

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Prepared for Valued Client

BCA BalancedChoice Annuity

BalancedChoice Annuity Finding a Balance. More than ever, a significant population of Americans are living to 90 and above. There are opportunities available today that can reduce the guesswork and address these retirement issues more effectively than ever before. BalancedChoice Annuity is a single premium indexed deferred annuity that has been developed specifically to be an integral part of a sound, long-term retirement plan and to help turn your vision of retirement into a reality by offering: • The guarantees and security you need for your retirement savings, including a premium protection feature • The opportunity for long-term accumulation of your principal

Family Endowment Rider® with Premium Bonus Preserve a legacy. The BalancedChoice Annuity offers a patent-pending Family Endowment Rider (FER™) that helps ensure a legacy for your beneficiaries by: • Guaranteeing a death benefit to beneficiaries that pays a minimum amount equal to your initial premium, accumulated at a specified percent (less any prior withdrawals) • Protecting your legacy against market downturns • Preserving a value that will be passed to your beneficiaries even if you need to take some withdrawals

• Flexibility to access your retirement savings

• With the FER, your beneficiary will receive the greater of the base contract death benefit or the benefit provided by this rider

• The opportunity to create a guaranteed lifetime income

• The Premium Bonus rider provides a one-time bonus which enhances the Accumulation Value

• Tax deferral

There is a charge for this Rider.

BalancedChoice Annuity allows you to choose how interest is credited to your annuity by means of the BalancedAllocation Strategy®. There is a charge for this Strategy Rider.

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Prepared for Valued Client

Hypothetical Illustration

BCA

Assumed Issue Date: July 11, 2014

BalancedChoice Annuity

BCA – BalancedChoice Annuity Owner/Annuitant:

A single premium fixed indexed deferred annuity Issue State:

Valued Client 60/Male

Age/Gender:

Tax Qualification: Initial Premium Amount:

Florida Non-Qualified $100,000

Illustration Explanation Product Details

What does this annuity illustration tell you?

BalancedChoice Annuity 12 The BalancedAllocation Foundation Series Declared Rate: 1.00% Rate established by Athene at the beginning of each Term Initial Annual Strategy Rider Charge Rate: 1.50%

Index Allocation Percentage1 Declared Rate Allocation Percentage

Family Endowment Rider (FER) with 10% Premium Bonus Rider® Initial Annual EDB Rider Charge Rate: 0.85% FER Benefit Interest Rate: 4.00% Premium Bonus: $10,000

1

The index element is linked to the performance of the S&P 500® Index.

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Prepared for Valued Client

To help explain how this product works, this illustration shows annuity contract values under the following scenarios: guaranteed annuity contract values that show minimum values, non-guaranteed annuity contract values based on the historical index performance of the most recent 10 years, and non-guaranteed annuity contract values based on the historical index performance over the Specified Period (12/31/1983 - 12/31/2013), all of which apply rates and rider charges that are current as of 07/11/2014. The illustration also includes hypothetical annuity contract values using the following index return scenarios: the most recent 10-years, the highest 10-year index movement out of the last 20 years, and the lowest 10-year index movement out of the last 20 years. See page 11 for specified time periods. The hypothetical contract values are calculated based on historical index prices and assume the index will repeat historical performance and that the annuity's current non-guaranteed elements will not change. It is likely that the index will not repeat historical performance, the non-guaranteed elements will change, and actual values will be higher or lower than those in this illustration. However, the actual values will not be less than the minimum guarantees. The values in this illustration are not guarantees or even estimates of the amounts you can expect to receive.

Hypothetical Illustration

BCA

Assumed Issue Date: July 11, 2014

BalancedChoice Annuity

Here’s a View of Guaranteed Annuity Contract Values

Annual Assumed Interest Rate: 0.00%

This hypothetical illustration is based on the allocation percentages and rates that are current as of the Assumed Issue Date of this illustration. This hypothetical illustration is based on a $100,000 Initial Premium Amount. Base Contract Values Year Ending

Beginning of Year Age

End of Year Age

Minimum Guaranteed Contract Value

07/2015 07/2016 07/2017 07/2018 07/2019 07/2020 07/2021 07/2022 07/2023 07/2024 07/2025 07/2026 07/2027 07/2028 07/2029 07/2030 07/2031 07/2032 07/2033 07/2034 07/2035 07/2036 07/2037 07/2038 07/2039 07/2040 07/2041 07/2042

60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87

61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88

$87,520 $87,507 $87,457 $87,371 $87,245 $87,077 $86,866 $86,611 $86,307 $85,954 $85,548 $85,088 $84,570 $83,993 $83,353 $82,648 $81,873 $81,027 $80,106 $79,107 $79,898 $80,697 $81,504 $82,319 $83,142 $83,973 $84,813 $85,661

1

Cash Surrender Value1

Accumulation Value

Base Death Benefit2

$87,520 $87,507 $87,457 $87,371 $87,245 $87,077 $86,866 $86,611 $86,307 $85,954 $85,548 $85,088 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000

$107,500 $105,003 $101,984 $98,988 $96,014 $93,060 $90,123 $87,202 $84,295 $81,399 $78,513 $75,634 $72,761 $69,890 $67,020 $64,149 $61,274 $58,393 $55,503 $52,602 $51,550 $50,519 $49,509 $48,519 $47,548 $46,597 $45,665 $44,752

$110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000

Cash Surrender Value (CSV) does not include applicable Market Value Adjustments (MVA). See possible implications of MVA on your CSV on page 15. The actual Death Benefit paid out is the greater of the Base Death Benefit and the Family Endowment Rider.

2

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Prepared for Valued Client

Family Endowment Rider Death Benefit2 (4.00%)

$104,000 $108,160 $112,486 $116,986 $121,665 $126,532 $131,593 $136,856 $142,331 $148,024 $153,945 $160,102 $166,506 $173,167 $180,093 $187,297 $194,789 $202,580 $210,683 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111

Hypothetical Illustration

BCA

Assumed Issue Date: July 11, 2014

BalancedChoice Annuity

Here’s a View of Guaranteed Annuity Contract Values (continued)

Annual Assumed Interest Rate: 0.00%

This hypothetical illustration is based on the allocation percentages and rates that are current as of the Assumed Issue Date of this illustration. This hypothetical illustration is based on a $100,000 Initial Premium Amount. Base Contract Values Year Ending

Beginning of Year Age

End of Year Age

Minimum Guaranteed Contract Value

07/2043 07/2044 07/2045 07/2046 07/2047 07/2048 07/2049

88 89 90 91 92 93 94

89 90 91 92 93 94 95

$86,517 $87,382 $88,256 $89,139 $90,030 $90,930 $91,840

Cash Surrender Value1

Accumulation Value

Base Death Benefit2

$110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000

$43,857 $42,980 $42,120 $41,278 $40,452 $39,643 $38,850

$110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000

Family Endowment Rider Death Benefit2 (4.00%)

$219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111

What Happens on my Contract’s Annuity Date? On the Contract’s Annuity Date, you can elect a guaranteed stream of income that will last as long as your retirement. There are a variety of payout options available to meet your needs. As illustrated, this Contract would annuitize on 07/2049. Below is an example of the guaranteed income stream that you would receive on this Contract based upon the Guaranteed Annuity Contract Values above. These values are calculated based upon the guaranteed Cash Surrender Value assuming a 10 year certain in life settlement option on the life of Valued Client. Guaranteed Annuitization Factor: 7.66

1

Guaranteed Monthly Payment: $1,678

Cash Surrender Value (CSV) does not include applicable Market Value Adjustments (MVA). See possible implications of MVA on your CSV on page 15. The actual Death Benefit paid out is the greater of the Base Death Benefit and the Family Endowment Rider.

2

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Prepared for Valued Client

Hypothetical Illustration

BCA

Assumed Issue Date: July 11, 2014

BalancedChoice Annuity

Here’s a View of Non-Guaranteed Annuity Contract Values

Annual Assumed Interest Rate: 8.06%

30-Year Backcast: The Assumed Interest Rate does not reflect charges. However, charges are reflected in the Accumulation Value. This hypothetical illustration is based on the allocation percentages and rates that are current as of the Assumed Issue Date of this illustration. This hypothetical illustration is based on a $100,000 Initial Premium Amount. Interest credits, if any, are applied at the end of each two-year Term. Please see page 4 for guaranteed values. Base Contract Values Year Ending

Beginning of Year Age

End of Year Age

Cash Surrender Value1

Accumulation Value

Balanced Allocation Value

Base Death Benefit2

07/2015 07/2016 07/2017 07/2018 07/2019 07/2020 07/2021 07/2022 07/2023 07/2024 07/2025 07/2026 07/2027 07/2028 07/2029 07/2030 07/2031 07/2032 07/2033 07/2034 07/2035 07/2036 07/2037 07/2038 07/2039 07/2040 07/2041 07/2042 07/2043

60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88

61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89

$87,520 $96,884 $96,560 $109,291 $109,508 $124,723 $124,887 $142,330 $142,427 $162,421 $162,434 $187,286 $209,528 $237,519 $234,256 $265,611 $262,016 $297,154 $293,192 $332,583 $330,075 $376,793 $373,951 $426,879 $423,660 $483,623 $479,976 $547,910 $543,778

$107,500 $122,612 $119,854 $136,737 $133,691 $152,562 $149,198 $170,298 $166,581 $190,185 $186,074 $212,491 $207,943 $237,519 $232,484 $265,611 $260,035 $297,154 $290,975 $332,583 $327,594 $376,793 $371,141 $426,879 $420,476 $483,623 $476,369 $547,910 $539,692

$116,165 $122,612 $129,514 $136,737 $144,467 $152,562 $161,223 $170,298 $180,007 $190,185 $201,072 $212,491 $224,703 $237,519 $251,223 $265,611 $280,994 $297,154 $314,428 $332,583 $353,998 $376,793 $401,055 $426,879 $454,366 $483,623 $514,764 $547,910 $583,191

$116,165 $122,612 $129,514 $136,737 $144,467 $152,562 $161,223 $170,298 $180,007 $190,185 $201,072 $212,491 $224,703 $237,519 $251,223 $265,611 $280,994 $297,154 $314,428 $332,583 $353,998 $376,793 $401,055 $426,879 $454,366 $483,623 $514,764 $547,910 $583,191

1

Cash Surrender Value (CSV) does not include applicable Market Value Adjustments (MVA). See possible implications of MVA on your CSV on page 15. The actual Death Benefit paid out is the greater of the Base Death Benefit and the Family Endowment Rider.

2

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Prepared for Valued Client

Family Endowment Rider Death Benefit2 (4.00%)

$104,000 $108,160 $112,486 $116,986 $121,665 $126,532 $131,593 $136,856 $142,331 $148,024 $153,945 $160,102 $166,506 $173,167 $180,093 $187,297 $194,789 $202,580 $210,683 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111

Hypothetical Illustration

BCA

Assumed Issue Date: July 11, 2014

BalancedChoice Annuity

Here’s a View of Non-Guaranteed Annuity Contract Values (continued)

Annual Assumed Interest Rate: 8.06%

30-Year Backcast: The Assumed Interest Rate does not reflect charges. However, charges are reflected in the Accumulation Value. This hypothetical illustration is based on the allocation percentages and rates that are current as of the Assumed Issue Date of this illustration. This hypothetical illustration is based on a $100,000 Initial Premium Amount. Interest credits, if any, are applied at the end of each two-year Term. Please see page 4 for guaranteed values. Base Contract Values Year Ending

Beginning of Year Age

End of Year Age

Cash Surrender Value1

Accumulation Value

Balanced Allocation Value

Base Death Benefit2

07/2044 07/2045 07/2046 07/2047 07/2048 07/2049

89 90 91 92 93 94

90 91 92 93 94 95

$620,743 $616,062 $703,257 $697,954 $796,740 $790,732

$620,743 $611,432 $703,257 $692,708 $796,740 $784,789

$620,743 $660,713 $703,257 $748,541 $796,740 $848,043

$620,743 $660,713 $703,257 $748,541 $796,740 $848,043

Family Endowment Rider Death Benefit2 (4.00%)

$219,111 $219,111 $219,111 $219,111 $219,111 $219,111

What Happens on my Contract’s Annuity Date? On the Contract’s Annuity Date, you can elect a non-guaranteed stream of income that will last as long as your retirement. There are a variety of payout options available to meet your needs. As illustrated, this Contract would annuitize on 07/2049. Below is an example of the non-guaranteed income stream that you would receive on this Contract based upon the Non-Guaranteed Annuity Contract Values above. These values are calculated based upon the non-guaranteed Cash Surrender Value assuming a 10 year certain in life settlement option on the life of Valued Client. Non-Guaranteed Annuitization Factor: 7.66

1

Non-Guaranteed Monthly Payment: $6,057

Cash Surrender Value (CSV) does not include applicable Market Value Adjustments (MVA). See possible implications of MVA on your CSV on page 15. The actual Death Benefit paid out is the greater of the Base Death Benefit and the Family Endowment Rider.

2

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Prepared for Valued Client

Hypothetical Illustration

BCA

Assumed Issue Date: July 11, 2014

BalancedChoice Annuity

Here’s a View of Non-Guaranteed Annuity Contract Values

Annual Assumed Interest Rate: 6.07% Geometric mean of the most recent 10 years: The Assumed Interest Rate does not reflect charges. However, charges are reflected in the Accumulation Value. This hypothetical illustration is based on the allocation percentages and rates that are current as of the Assumed Issue Date of this illustration. This hypothetical illustration is based on a $100,000 Initial Premium. Interest credits, if any, are applied at the end of each two-year Term. Please see page 4 for guaranteed values. Base Contract Values Year Ending

Beginning of Year Age

End of Year Age

Cash Surrender Value1

Accumulation Value

Balanced Allocation Value

Base Death Benefit2

07/2015 07/2016 07/2017 07/2018 07/2019 07/2020 07/2021 07/2022 07/2023 07/2024 07/2025 07/2026 07/2027 07/2028 07/2029 07/2030 07/2031 07/2032 07/2033 07/2034 07/2035 07/2036 07/2037 07/2038 07/2039 07/2040 07/2041 07/2042 07/2043

60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88

61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89

$87,520 $93,445 $92,812 $101,507 $101,338 $111,476 $111,201 $122,348 $121,953 $134,201 $133,668 $148,650 $165,645 $180,920 $177,770 $194,149 $190,757 $208,318 $204,664 $223,490 $221,417 $243,975 $241,712 $266,338 $263,868 $290,751 $288,055 $317,402 $314,458

$107,500 $118,146 $115,455 $126,881 $123,983 $136,245 $133,126 $146,283 $142,926 $157,041 $153,427 $168,569 $164,680 $180,920 $176,734 $194,149 $189,645 $208,318 $203,471 $223,490 $220,137 $243,975 $240,315 $266,338 $262,343 $290,751 $286,390 $317,402 $312,641

$114,029 $118,146 $122,467 $126,881 $131,514 $136,245 $141,212 $146,283 $151,607 $157,041 $162,746 $168,569 $174,682 $180,920 $187,468 $194,149 $201,164 $208,318 $215,830 $223,490 $233,508 $243,975 $254,911 $266,338 $278,277 $290,751 $303,784 $317,402 $331,630

$114,029 $118,146 $122,467 $126,881 $131,514 $136,245 $141,212 $146,283 $151,607 $157,041 $162,746 $168,569 $174,682 $180,920 $187,468 $194,149 $201,164 $208,318 $215,830 $223,490 $233,508 $243,975 $254,911 $266,338 $278,277 $290,751 $303,784 $317,402 $331,630

1

Cash Surrender Value (CSV) does not include applicable Market Value Adjustments (MVA). See possible implications of MVA on your CSV on page 15. The actual Death Benefit paid out is the greater of the Base Death Benefit and the Family Endowment Rider.

2

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Prepared for Valued Client

Family Endowment Rider Death Benefit2 (4.00%)

$104,000 $108,160 $112,486 $116,986 $121,665 $126,532 $131,593 $136,856 $142,331 $148,024 $153,945 $160,102 $166,506 $173,167 $180,093 $187,297 $194,789 $202,580 $210,683 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111 $219,111

Hypothetical Illustration

BCA

Assumed Issue Date: July 11, 2014

BalancedChoice Annuity

Here’s a View of Non-Guaranteed Annuity Contract Values (continued)

Annual Assumed Interest Rate: 6.07% Geometric mean of the most recent 10 years: The Assumed Interest Rate does not reflect charges. However, charges are reflected in the Accumulation Value. This hypothetical illustration is based on the allocation percentages and rates that are current as of the Assumed Issue Date of this illustration. This hypothetical illustration is based on a $100,000 Initial Premium. Interest credits, if any, are applied at the end of each two-year Term. Please see page 4 for guaranteed values. Base Contract Values Year Ending

Beginning of Year Age

End of Year Age

Cash Surrender Value1

Accumulation Value

Balanced Allocation Value

Base Death Benefit2

07/2044 07/2045 07/2046 07/2047 07/2048 07/2049

89 90 91 92 93 94

90 91 92 93 94 95

$346,496 $343,282 $378,256 $374,748 $412,928 $409,098

$346,496 $341,298 $378,256 $372,582 $412,928 $406,734

$346,496 $362,028 $378,256 $395,212 $412,928 $431,437

$346,496 $362,028 $378,256 $395,212 $412,928 $431,437

Family Endowment Rider Death Benefit2 (4.00%)

$219,111 $219,111 $219,111 $219,111 $219,111 $219,111

What Happens on my Contract’s Annuity Date? On the Contract’s Annuity Date, you can elect a non-guaranteed stream of income that will last as long as your retirement. There are a variety of payout options available to meet your needs. As illustrated, this Contract would annuitize on 07/2049. Below is an example of the non-guaranteed income stream that you would receive on this Contract based upon the Non-Guaranteed Annuity Contract Values above. These values are calculated based upon the non-guaranteed Cash Surrender Value assuming a 10 year certain in life settlement option on the life of Valued Client. Non-Guaranteed Annuitization Factor: 7.66

1

Non-Guaranteed Monthly Payment: $3,134

Cash Surrender Value (CSV) does not include applicable Market Value Adjustments (MVA). See possible implications of MVA on your CSV on page 15. The actual Death Benefit paid out is the greater of the Base Death Benefit and the Family Endowment Rider.

2

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Prepared for Valued Client

Historical Index Movement Comparison

BCA

Assumed Issue Date: July 11, 2014

BalancedChoice Annuity

Historical Index Movement Comparison - Most Recent 10, Highest, and Lowest Periods The following comparison chart is intended to reflect the Accumulation Value based upon the historical performance of the index under three different scenarios, as described below. This chart assumes current rider charges and current rates as shown on page 3 of this illustration. This chart assumes no withdrawals are taken in the first 10 Contract Years. The values shown are not guaranteed; actual results may be higher or lower.

For the Most Recent 10 scenario, the indexed-based interest rate and Accumulation Value are calculated to reflect the historical performance of the index for the most recent 10 calendar year period.

The Lowest index scenario reflects the historical performance of the index for a continuous period of 10 calendar years out of the last 20 years that would result in the least index value growth.

Contract Year

Assumed Interest Rate

Accumulation Value

Assumed Interest Rate

Accumulation Value

Assumed Interest Rate

Accumulation Value

1 2 3 4 5 6 7 8 9 10

N/A 9.19% N/A 12.94% N/A 0.00% N/A 9.55% N/A 33.49%

$107,500 $114,651 $112,012 $123,533 $120,686 $117,841 $114,998 $122,864 $119,857 $155,978

N/A 43.91% N/A 42.53% N/A 12.32% N/A 0.00% N/A 24.94%

$107,500 $151,110 $147,924 $206,304 $202,215 $222,555 $218,141 $213,751 $209,381 $256,158

N/A 0.00% N/A 0.00% N/A 32.54% N/A 11.96% N/A 0.00%

$107,500 $105,003 $102,509 $100,015 $97,521 $125,940 $122,975 $134,366 $131,188 $128,010

Geometric Mean Assumed Interest Rate* = 6.07%

*

The Highest index scenario reflects the historical performance of the index for a continuous period of 10 years out of the last 20 years that would result in the most index value growth.

Geometric Mean Assumed Interest Rate* = 11.15%

The Assumed Interest Rate does not reflect charges. However, charges are reflected in the Accumulation Value.

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Prepared for Valued Client

Geometric Mean Assumed Interest Rate* = 4.02%

Historical Index Movement Comparison

BCA

Assumed Issue Date: July 11, 2014

BalancedChoice Annuity

Historical Index Movement Comparison - Most Recent 10, Highest, and Lowest Periods The following graph is intended to reflect the movement of the Accumulation Value for each of the three scenarios above.

The table below shows the Most Recent 10, Highest, and Lowest time periods of index movement and the corresponding index closing values for each index respectively. Index S&P 500® Index

Most Recent 10

Highest

Lowest

12/31/2003 - 12/31/2013 1111.92 - 1848.36

12/13/1994 - 12/13/2004 450.15 - 1198.68

03/09/1999 - 03/09/2009 1279.84 - 676.53

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Prepared for Valued Client

Product Information

BCA BalancedChoice Annuity BalancedAllocation Strategy Options The patented BalancedAllocation Strategy allows you to choose from different options. These options determine your interest using a formula combining an index allocation and declared rate allocation. The index element is linked to the performance of a market index or blend of indices. The declared rate is based on an interest rate set by the company. The appreciation if any, from the declared rate allocation plus the index allocation if any, are added together to determine the amount of interest earnings under the strategy. This patented BalancedAllocation Strategy offers you the potential for better long-term accumulation, particularly in periods of low interest rates. It’s important to note that that your contract applies an annual strategy rider charge by multiplying the Accumulation Value and a strategy charge rate on every Contract Anniversary. A portion of that charge (1/12th) is deducted from the contract’s Accumulation Value at the beginning of every month. Strategy charge rates are set at contract issue and can change for each renewal Term. BalancedAllocation Strategy The appreciation from a predetermined blend

Index Allocation + Declared Rate Allocation Interest Earnings Under the BalancedAllocation Strategy

Balanced Allocation Strategy

Your Premium + Interest Earned1 Charges1 and Withdrawals = Accumulation Value

Premium Protection With the BalancedChoice Annuity , the premium protection feature (referred to as the Return of Premium Guarantee in the contract) ensures that any strategy and/or optional rider charges in your contract will never result in you getting back less than the Premium paid, plus any applicable Premium Bonus, minus any Withdrawals, provided the contract is not surrendered during the Withdrawal Charge Period and no early Withdrawals are taken in excess of your contract’s Free Withdrawal amount. Therefore, if the contract is surrendered before the Withdrawal Charge Period or if early Withdrawals are taken in excess of the Free Withdrawal amount, you could receive less than your original premium. 1

Free Withdrawals The BalancedChoice Annuity allows you to access your money should the need allows you to access your money should the need arise. You may withdraw 5% of your Accumulation Value during the first 12 months. Thereafter, you may withdraw up to 10% of your Accumulation Value each subsequent 12-month period.

No Traditional Caps There are no traditional caps placed on the upside earnings potential of the BalancedAllocation Strategy. Although the BalancedChoice Annuity has no traditional cap on indexed earnings, the Index Allocation option percentages are determined by the Athene Annuity and Life Company.

Premium Bonus Rider with Family Endowment Rider The BalancedChoice Annuity offers an optional Premium Bonus Rider combined with Family Endowment Rider (referred to in the Contract as the Enhanced Death Benefit with Premium Bonus). This rider will credit a Premium Bonus immediately to your Accumulation Value. While the Premium Bonus Rider enhances your Accumulation Value, the Family Endowment Rider guarantees that your Beneficiaries will receive the greater of the Base Death Benefit or the death benefit provided by this rider. This Death Benefit is provided upon the Annuitant’ s death. The Family Endowment Rider is also available without the Premium Bonus Rider. Also, any withdrawals in excess of the Free Withdrawal amount will incur a Premium Bonus Recapture Charge, listed below as the Withdrawal Charge Period. The Rider charges are calculated at the beginning of each Contract Year by multiplying the EDB Crediting Base2 and the Annual Enhanced Death Benefit Rider Charge Rate. One-twelfth of that calculated charge is deducted from both the Accumulation Value and the Minimum Guaranteed Contract Value, in applicable states, every month until the termination of the Enhanced Death Benefit Rider. The Annual Enhanced Death Benefit Rider Charge Rate is defined in the contract for two periods of time, the first being the initial years for which the Withdrawal Charges apply, and the second being all years thereafter.

Interest earned, if any, is credited on Term end date. The strategy rider charge is taken out of the Accumulation Value monthly. Other optional rider charges are taken out of the Accumulation Values monthly, and the Minimum Guaranteed Contract Value, in applicable states. 2 This can be found in Disclosure Summary or Contract. Page 12 of 18 pages

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Product Information

BCA BalancedChoice Annuity Withdrawal Charges Contract Year Withdrawal Charge Rate Bonus Recapture Charge Rate

1

2

3

4

5

6

7

8

9

10

11

12

14.50%

14.00%

13.50%

13.00%

12.00%

11.00%

10.00%

9.00%

8.00%

7.00%

6.00%

4.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

9.00%

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BCA BalancedChoice Annuity

Definition of Terms 30-Year Backcast – The interest-crediting rate assumed for the projected, nonguaranteed Accumulation Value column is based on the Contract’s BalancedAllocation Strategy option selected and the current charges for that option and any riders selected as of the Assumed Issue Date of this illustration Index Allocation of the BalancedAllocation Strategy is applied to the historical movement of the S&P 500® Index (excluding dividends), then averaged over the most recent 30-year period ending 12/31/2013. Accumulation Value – Premium plus interest credited, plus Premium Bonus, minus withdrawals and any applicable charges Annuitization – Converting the Contract into a series of periodic payments on the Annuity Date. Once the Contract is annuitized, the amount or frequency of the annuity payments cannot be stopped or modified. Annuity Date – The date annuity payments are to begin Assumed Interest Rate – A hypothetical interest rated credited to the annuity’s Accumulation Value. The rate will vary based on different historical scenarios. Assumed Issue Date – The effective date that reflects the Company's current rates as of that day Balanced Allocation Value – The greater of the Accumulation Value plus any interest for the current Term or the Return of Premium Guarantee Amount. Base Death Benefit – Equal to the greater of the Cash Surrender Value or the Balanced Allocation Value (the actual Death Benefit amount paid to the beneficiaries upon the death of the annuitant is the greater of the FER Death Benefit or the Base Death Benefit). Beginning of Year Age – The beginning of year age(s) is the age(s) at the beginning of the Contract. Cash Surrender Value – The greater of the Accumulation Value, adjusted for any withdrawals, applicable charges and Market Value Adjustments, the Minimum Guaranteed Contract Value or the Return of Premium Guarantee Amount which is zero until the end of the 12th Contract Year. Contract Year – Contract Years are determined from the Assumed Issue Date. (For example, If the Contract's Assumed Issue Date is January 10, 2014, the first Contract Year ends January 9, 2015) Declared Rate Allocation Percentage – The component of the interest crediting calculation that is linked to a set declared rate determined by the Company End of Year Age – The end of year age(s) is the age(s) at the beginning of the Contract, plus the number of Contract Years Page 14 of 18 pages

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Family Endowment Rider Death Benefit – Equal to the Initial Premium Amount accumulated at the FER benefit percent until the rider charges no longer apply, less any withdrawals (the actual Death Benefit amount paid to the beneficiaries upon the death of the annuitant is the greater of the Family Endowment Rider Death Benefit or the Base Death Benefit). Index Allocation Percentage – The component of the interest crediting calculation that is linked to the market index performance Initial Premium Amount – The amount paid for the annuity Minimum Guaranteed Contract Value – The minimum value of the Contract, required by law, while the Contract is in-force Premium Bonus – An amount added to the annuity’s Accumulation Value at Contract issue. It is equal to the Initial Premium Amount multiplied by a percentage. The percentage is shown in the product details section on page . Term – The length of time, in whole years, between the crediting of interest earnings Year Ending – Each 12-month period of time starting from the Assumed Issue Date

Market Value Adjustment

BCA BalancedChoice Annuity

The Potential Impact of a Market Value Adjustment (MVA) on Cash Surrender Values Positive Sample Scenario

Negative Sample Scenario

Shows the effect of a MVA on the hypothetical Cash Surrender Value if the interest rate DECREASES 0.5% each year from the assumed initial interest rate.

Shows the effect of a MVA on the hypothetical Cash Surrender Value if the interest rate INCREASES 0.5% each year from the assumed initial interest rate.

Market Value Adjustment (MVA) • When you make a withdrawal in excess of the free amount during the annuity’s withdrawal charge period, the amount you receive may be increased or decreased by a Market Value Adjustment (MVA). • If the 10 Year Point on the A Rated US Bloomberg Fair Value Curve interest rates are higher than when you purchased your annuity, the MVA is negative. In other words, an additional amount will be deducted from your annuity. Conversely, if 10 Year Point on the A Rated US Bloomberg Fair Value Curve interest rates are lower than when you purchased an annuity, the MVA is positive. This means that money will be added to your annuity, which reduces the withdrawal charge. • If the MVA is negative, the MVA can never decrease the amount surrendered or withdrawn by more than 75% of any Interest Credits and/or Premium Bonus credited to your annuity contract. • The MVA has no effect on the death benefit. • Withdrawal Charges, Premium Bonus Recapture Charges and MVA are never applied to withdrawals from an IRA or qualified contract taken to satisfy the Required Minimum Distribution for that contract.

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BCA BalancedChoice Annuity

Additional Information Illustration Only This is an illustration only and designed to help you better understand how the annuity product you are considering works and might look in the future under various conditions. This illustration is not intended to indicate actual performance nor predict future results. The hypothetical, non-guaranteed values shown are calculated in reference to the historical performance of the index as indicated. This illustration assumes current allocation option percentages and other nonguaranteed rates as of the Assumed Issue Date. These rates are subject to change. It is likely that the index will, in fact, not repeat historical performance and that non-guaranteed elements will change over time. This means that actual nonguaranteed values may be higher or lower than those shown in this illustration. Please refer to the Disclosure Summary document for the BalancedChoice Annuity, and for the BalancedAllocation Lifetime Income Rider, if elected, that must accompany this illustration for more details. Also refer to the inserts that describe the features and limitations of any additional riders including the Premium Bonus Rider and Family Endowment Rider (referred to in the Contract as the Enhanced Death Benefit Rider.) The BalancedChoice Annuity [BAA12 (09/09), BAA8 (09/09) and BAA10 (01/11) or state variation] with the BalancedAllocation Strategy Rider (BAABAS (02/13) or state variation), is a fixed indexed annuity; the Family Endowment Rider [DBR (02/13), BDBR8 (02/13), SUDBR (02/13), BDBR12 (02/13) or state variation] and the BalancedAllocation Lifetime Income Rider (BAAIR2 (02/13) or state variation), are optional riders from which charges are deducted. They are issued by Athene Annuity and Life Company, West Des Moines, IA. Product features, limitations and availability vary by state. Not a Stock Market Investment Fixed indexed annuities are not stock market investments and do not directly participate in any stock or equity investments. Market indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks; neither a market index nor any market-indexed annuity is comparable to a direct investment in the equity markets. Indexed annuities do not directly participate in any stock or equity investments. When you purchase the BalancedChoice Annuity, you are not directly investing in a stock market index.

Not FDIC Insured Subject to the terms, conditions and limitations of the BalancedChoice Annuity and the BalancedAllocation Lifetime Income Rider (BALIR). Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC. The BALIR and the BalancedChoice Annuity are issued and backed by the financial strength of Athene Annuity and Life Company, West Des Moines, IA and are not guaranteed by any bank or the FDIC. Basic Tax Information Under current tax law, annuities provide the benefit of tax deferred accumulation. This means that as the Accumulation Value of your Contract grows, you do not have to pay income tax on the interest credited to the contract until it is withdrawn or paid out as a death benefit. It is important that you recognize that the effect of income taxes, or any applicable tax penalties, are not reflected in the values shown in this illustration. Any applicable taxes or penalties would reduce the net amount that you actually receive. When you surrender your contract or take a Withdrawal from your contract you may be subject to federal and state income taxes on some or all of the amount received. Generally, the tax treatment of your annuity contract will depend on a variety of factors, including whether your contract is comprised of non-qualified or qualified funds. A Death Benefit paid under the Contract is generally subject to income taxes in the same way that a withdrawal or surrender would be subject to income taxes during your life. Please consult your tax advisor regarding the applicability of these rules to your specific situation. The information discussed in this and the next section is general in nature and should not be construed in any way as tax advice. Neither Athene Annuity & Life Company nor its agents or employees are authorized to provide tax advice. Non-Qualified vs. Qualified Contracts Non-Qualified For non-qualified contracts, withdrawals are generally subject to ordinary income tax to the extent of gain in the contract at the time of the withdrawal. This means that to the extent that interest has been credited to your contract, and not previously withdrawn, that portion of any distribution from your contract will be DB# 3.4.109/SYS# Server v1.0.1171.21304

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BCA BalancedChoice Annuity

Additional Information (continued) subject to ordinary income tax. In addition, if you have not attained the age of 59½ at the time of the withdrawal, a 10% tax penalty is applied to the taxable portion of that withdrawal. However, if you convert your annuity Contract to a stream of payments on the Annuity Date, each payment generally will receive exclusion ratio tax treatment – meaning that a portion of each payment will be taxed to the extent it represents gain in the contract, and a portion will be treated as a non-taxable recovery of your cost basis (generally the Premium paid) in your Contract. Qualified A qualified contract means that you are purchasing the annuity within a retirement account or plan, such as a traditional IRA or an employer sponsored retirement plan. Generally, the funds in this type of contract have been established with pretax dollars, money which has not been subjected to income taxes, although there may be a combination of pre-tax and after-tax dollars in such accounts. To the extent that the funds for a qualified contract have been made with pre-tax dollars, the entire amount of any withdrawal or death benefit will be subject to income taxes. In addition, if you have not attained the age of 59½ at the time of the withdrawal, a 10% tax penalty is applied to the taxable portion of that withdrawal. If you have a qualified contract, such as an IRA, the illustration may reflect Required Minimum Distributions (RMDs). Such distributions generally must commence in the year following the year in which you turn age 70½. The calculation for any RMD amount indicated on this hypothetical illustration is based on the previous year’s ending Accumulation Value, and does not take into consideration the value of benefits provided by any additional riders. Therefore, keep in mind that the RMD amount shown is a projected amount that could be higher or lower. If the actual RMD amount that you must withdraw is higher than the amount illustrated, the remaining Accumulation Value and Death Benefit amounts will be correspondingly lower. Purchasing an annuity within a retirement plan that provides tax deferral under the Internal Revenue Code results in no additional tax benefit. If you are purchasing an annuity to fund an IRA or Qualified plan, your purchase should be based on the annuity’s features other than tax deferral. S&P 500® Index The “S&P 500® Index” (the “Index”) is a product of S&P Dow Jones Indices LLC (“

SPDJI”), and has been licensed for use by Athene Annuity and Life Company. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); “Standard & Poor’s®”, “S&P®”,“S&P 500® ”, “Standard & Poor’s 500” and “500” are trademarks of The McGraw-Hill Companies, Inc.; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Athene Annuity and Life Company. The Product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices makes no representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the S&P 500® Index to track general market performance. S&P Dow Jones Indices’ only relationship to Athene Annuity and Life Company with respect to the S&P 500® Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500® Index is determined, composed and calculated by S&P Dow Jones Indices without regard to Athene Annuity and Life Company or the Product. S&P Dow Jones Indices have no obligation to take the needs of Athene Annuity and Life Company or the owners of the Product into consideration in determining, composing or calculating the S&P 500® Index. S&P Dow Jones Indices are not responsible for and have not participated in the determination of the prices, and amount of the Product or the timing of the issuance or sale of the Product or in the determination or calculation of the equation by which the Product is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing or trading of the Product. There is no assurance that investment products based on the S&P 500® Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DB# 3.4.109/SYS# Server v1.0.1171.21304

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Additional Information (continued) DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY ATHENE ANNUITY AND LIFE COMPANY, OWNERS OF THE PRODUCT, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND ATHENE ANNUITY AND LIFE COMPANY, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

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