Security Benefit

Secure Income Annuity Agent Quick Reference Guide

The Security Benefit Secure Income Annuity is a fixed index flexible premium deferred annuity contract which provides a combination of guarantees, bonus, flexible interest choices, and withdrawal options. In addition, your clients will be able to retire confidently with predictable, guaranteed lifetime income payments available through the Security Benefit Secure Income Annuity optional Guaranteed Lifetime Withdrawal Benefit (GLWB) Rider. The GLWB is an optional rider that can be added to your client’s Secure Income Annuity only at the time of application for a Secure Income Annuity contract. There is an annual charge for this rider. The Security Benefit Secure Income Annuity can provide your clients: • A Guaranteed Minimum Interest Rate • 4 interest crediting options • Up to an 8% Bonus at the time of contract issue on all Purchase Payments received by SBL in the first Contract Year (varies by state) • 10% annual free withdrawals after the first Contract Year • Nursing Home Waiver 1 • Terminal Illness Waiver 2 The Security Benefit Secure Income Annuity GLWB Rider can provide your clients: • Annual 6.5% Roll-up on the Benefit Base compounded annually3 – guaranteed for the first 10 years of the contract, until age 85 or your client begins taking Lifetime Annual Income • G  uaranteed Lifetime Annual Income for life – even if the Account Value falls to zero (assuming your client does not take withdrawals prior to taking Lifetime Annual Income that deplete the Account Value or excess withdrawals that deplete the Account Value after taking Lifetime Annual Income) • Single or Joint Lifetime Income Payout options • H  ome Healthcare Doubler The following pages highlight some of the features of the Secure Income Annuity and its optional GLWB Rider. Please refer to the Statement of Understanding (SOU) and product brochures for more information. Before you may take any application for the Secure Income Annuity, you must complete the required product training. Visit SIAincome.com for product training information and links to access the online courses.

Nursing Home Waiver is not available in California or Massachusetts. Terminal Illness Waiver is not available in California or New Jersey. 3 Compounded annually refers to the way the Benefit Base is calculated. It is not a 6.5% compounded interest rate applied to the Account Value and Benefit Base is not an amount available for withdrawal, annuitization or payable on death. 1 2

®

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One Security Benefit Place, Topeka, KS 66636-0001 securitybenefit.com IM-22400-06 2016/12/15

For Financial Professional Use Only. Not for use with Consumers.

2

FEATURE

DESCRIPTION

Qualification Types

Non-Qualified IRA (Traditional, Roth, SEP)

Optional Rider

Guaranteed Lifetime Withdrawal Benefit (GLWB Rider)

Issue Ages Oldest Owner or Annuitant

Base Product: 0-80 GLWB Rider: 55-80

Fee

Base Product: no fee GLWB Rider: 0.95% of the GLWB Benefit Base *Charge is deducted from the Account Value.

Owner/Annuitant Provisions

• For single Owner contracts: - Owner and Annuitant must be the same person unless the contract is owned by a non-natural person • For jointly owned contracts: - Owner and Joint Owner must be spouses if the GLWB is purchased -O  wner and Annuitant must be the same person • A non-natural Owner is not allowed for a jointly owned contract

Minimum Purchase Payment Amounts

Initial: $25,000 Subsequent: $1,000 Company Approval Needed if Purchase Amount Exceeds a total amount of: $1,000,000 Subsequent Purchase Payments are allocated to the Fixed Account and may be allocated among the Index Account options at each Contract Anniversary. If the optional GLWB Rider is elected, no Purchase Payments are permitted on or after the Income Phase Start Date.

Bonus

Up to an 8% Bonus at the time of contract issue (on all Purchase Payments received by SBL in the first Contract Year).

AK, CA, IN, ME, MN, MO, NH, NJ, NV, OH, OK, OR, PA, SC, TX, UT and WA – 5.5%. CT & DE – 2%. Guaranteed Minimum Interest Rate (GMIR)

1-3% Varies by State and Issue Date The GMIR is the annual interest rate that is used to compute the Guaranteed Minimum Cash Surrender Value and is also the minimum annual interest rate for the Fixed Account. The GMIR is set periodically for new contracts and is guaranteed for the life of the contract.

Interest Crediting Options

*A cap, spread and participation rate may apply and/or change at Security Benefit’s discretion. Please refer to the most recent SIA Rate Sheet to determine the most current caps, spreads and participation rates.

The Owner can choose to put his or her entire premium in an interest-crediting strategy or allocate his or her account among the four available interest crediting options: • Fixed Account • Annual Point-to-Point based on S&P 500® Index without dividends • Monthly Sum based on S&P 500® Index without dividends • Two Year Point to Point based on Morgan Stanley Dynamic Allocation Index

Guaranteed Minimum Cash Surrender Value (GMCSV)

87.5% of Purchase Payments (not including bonus), less withdrawals and applicable premium tax, plus daily interest at the GMIR.

10% Free Withdrawals

After the first Contract Anniversary and during the Surrender Charge Period, the Owner may take Free Withdrawals. Free Withdrawals are not subject to a Surrender Charge, MVA, or Bonus Recapture. The total amount that may be withdrawn in a Contract Year as Free Withdrawals is equal to 10% of the Account Value as of the beginning of the Contract Year. Free Withdrawals do not apply to Full Surrender or Annuitization.

Market Value Adjustment (MVA)

An MVA is an increase or decrease to the amount available for withdrawals that applies during the Surrender Charge Period. The MVA will not apply to the death benefit paid on the death of the Annuitant or the death of the Joint Owner if the Joint Owner is the spouse of the Annuitant. An MVA applies if the Owner during the Surrender Charge period surrenders his or her Contract, takes withdrawals in excess of the Free Withdrawal Amount, annuitizes and upon death of the Joint Owner who is not the spouse of the Annuitant. In AK, CA, IN, MN, MO, NH, NJ, OH, OR, PA, SC, TX, UT and WA, an MVA does not apply.

(continued)

For Financial Professional Use Only. Not for use with Consumers.

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FEATURE

DESCRIPTION

Surrender Charge Period Secure Income Annuity has a 10-year Surrender Charge Schedule

If the Owner takes withdrawals that are greater than the Free Withdrawal (Varies by state) amounts during the Surrender Charge Period, his or her account will be subject to a Surrender Charge. The amount of the Surrender Charge is equal to the amount by which the Account Value is reduced due to the withdrawal (less any Free Withdrawals) after any MVA and Bonus Recapture, times the applicable Surrender Charge percentage. The Owner can avoid some or all Surrender Charges, depending upon circumstances through the Free Withdrawal, the Terminal Illness Waiver4, the Nursing Home Waiver5, and the death benefit on the death of the Annuitant or Joint Owner if the Joint Owner is the spouse of the Annuitant. For all states other than those listed below, the Surrender Charge Schedule by Contract Year is: Years 1 2 3 4 5 6 7 8 9 10 11+ Schedule 12% 11% 10% 9% 8% 7% 6% 5% 4% 2% 0% For Florida, the Surrender Charge by Contract Year is:

1 2 3 4 5 6 7 8 9 10 11+ 10% 10% 10% 9% 8% 7% 6% 5% 4% 2% 0%

For AK, CA, IN, MN, MO, NH, NJ, NV, OH, OK, OR, PA, SC, TX, UT and WA the Surrender Charge by Contract Year is: 1 2 3 4 5 6 7 8 9 10 11+ 9.0% 8.1% 7.2% 6.3% 5.4% 4.5% 3.6% 2.7% 1.8% 0.9% 0% For CT and DE, the Surrender Charge by Contract Year is: Bonus Recapture If the Owner takes withdrawals that are greater than the Free Withdrawal amounts during the Surrender Charge Period, the Account Value will be subject to a Bonus Recapture.

1 2 3 4 5 6 7 8 9 10+ 8.25% 7.25% 6.50% 5.50% 4.50% 3.50% 2.50% 1.50% 0 .75% 0%

A portion or the entire amount of the bonus will be recaptured for withdrawals in excess of the Free Withdrawal amount during the Surrender Charge period. Bonus Recapture will also apply during the Surrender Charge period if the contract is annuitized, or upon the death of the Joint Owner who is not the spouse of the Annuitant. Clients can avoid some or all of the Bonus Recapture, depending upon circumstances through the Free Withdrawal, the Terminal Illness Waiver4, the Nursing Home Waiver5 on the death of the Annuitant or Joint Owner if the Joint Owner is the spouse of the Annuitant. For all states other than those listed below, the Bonus Recapture by Contract Year is: Years 1 2 3 4 5 6 7 8 9 10 11+ Schedule 100% 100% 100% 100% 100% 100% 80% 60% 40% 20% 0% For AK, CA, IN, MN, MO, NH, NJ, NV, OH, OK, OR, PA, SC, TX, UT and WA, the Bonus Recapture by Contract Year is: 1 2 3 4 5 6 7 8 9 10 11+ 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% No bonus recapture for CT or DE.

Pecking Order for Rider Charges/Withdrawals

4 5

Unless the Owner directs otherwise, each withdrawal is taken pro rata from the Fixed Account and Index Accounts based upon their values as of the date of the withdrawal. For amounts held in an Index Account, no index interest will be earned on the amount of any decrease in the Index Account Value related to any withdrawal.

Terminal Illness Waiver is not available in California or New Jersey. Nursing Home Waiver is not available in California or Massachusetts. (continued)

For Financial Professional Use Only. Not for use with Consumers.

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FEATURE

DESCRIPTION

Reallocation / Transfers

There are no restrictions on allocations, however, subsequent Purchase Payments are allocated to the Fixed Account and may be allocated among the index options at each Contract Anniversary. Reallocations or transfers into an Index Account may occur only at the start of an Index Term.* Transfers out of an Index Account may occur only at the end of an Index Term. The Morgan Stanley Dynamic Allocation Index has a two year index term. Transfers are available by completing the Transfer Request form. * The start of an Index Term corresponds to the Contract Anniversary.

Nursing Home Waiver

SBL will waive the surrender charge and MVA on full or partial withdrawals after the third contract year provided the owner satisfies eligibility conditions for the waiver. In TX and PA, the waiver is available after the first contract year. In CT, the waiver is available beginning in the first contract year. (Note that the bonus recapture MVA cannot be waived in CT, PA, and TX.) • If confined in a Qualified Nursing Facility for 90 consecutive days, the client may withdraw up to their full AV and waive all surrender charges, Bonus Recapture Charges and MVA. • The request for such waiver must be after the 3rd Contract Anniversary. No interim index credits will be applied to the S&P Annual P2P, S&P Monthly Sum or the MSDA Index. Not available in CA or MA. In CT, the waiver is available immediately. In PA & TX after one year, but only surrender charges are waived. See the Statement of Understanding for qualifying details. A request for the waiver must be made on an SBL form and must be accompanied by a licensed doctor’s statement.

Terminal Illness Waiver

SBL will waive the surrender charge and MVA on full or partial withdrawals after the third contract year provided owner satisfies eligibility conditions for the waiver. In TX and PA, the waiver is available after the first contract year. In CT, the waiver is available beginning in the first contract year. (Note that the bonus recapture MVA cannot be waived in CT, PA, and TX.) • If after the Owner purchases a contract, he or she is diagnosed with a terminal illness. Surrender Charges, MVA and Bonus Recapture will be waived. • The request for such waiver must be after the 3rd Contract Anniversary. No interim index credits will be applied to the S&P Annual P2P, S&P Monthly Sum or the MSDA Index. Not available in CA or NJ. In CT, the waiver is available immediately. In PA & TX after one year, but only surrender charges are waived. See the Statement of Understanding for qualifying details. A request for the waiver must be made on an SBL form and must be accompanied by a licensed doctor’s statement.

Death Benefit

•F  or the Secure Income Annuity contract, should the Annuitant die before receiving annuity payments (annuitization), the beneficiaries will receive 100% of the Account Value, less any applicable premium tax.* • If the sole designated beneficiary is the spouse of the deceased Owner or Joint Owner or, if the Owner is a non-natural person, the spouse of the deceased Annuitant, as applies, the spouse shall become the sole Owner of this contract. He or she may elect to: keep this contract in force until the earlier of his or her death, or the annuity start date; or elect to receive the amount payable upon death as described above. - If the deceased Owner is the spouse of the Annuitant, the beneficiary(-ies) will receive the Account Value. - If the deceased owner is not the spouse of the Annuitant, the beneficiary(-ies) will receive the cash surrender value. Refer to the Statement of Understanding (SOU) for more information about the death benefit. *Annuitization should not be confused with taking income under the GLWB Rider. If the Owner has started taking income under the GLWB Rider rather than taking annuity payments, the death benefit upon the death of the Annuitant is the Account Value less any applicable premium tax.

Rider Cancellation

The Owner can cancel the GLWB Rider on any Contract Anniversary on or after the fifth Contract Anniversary. The GLWB Rider cannot be reinstated once it is cancelled. (continued)

For Financial Professional Use Only. Not for use with Consumers.

5

FEATURE

DESCRIPTION

Rider Charge

•The charge for this rider is 0.95% of the GLWB Benefit Base. •The charge is deducted from the Account Value on the Contract Anniversary. •The charge is also deducted upon payment of any amounts payable at death, a full withdrawal from the contract, or the Annuity Start Date if the entire Account Value is applied to an Annuity Option. •Each fifth Contract Anniversary prior to taking income from the GLWB, if the total amount of interest credited is less than the cumulative GLWB charges during that period, the charges will be partially or fully refunded to the Account Value in the amount that the rider charges exceeded the interest credited. Rider Charge Rate x Benefit Base = Annual Rider Charge Amount

Benefit Base

The GLWB’s Benefit Base is not the same thing as the annuity Account Value. The Benefit Base is the amount used to compute the Lifetime Annual Income and Rider Charge. The Benefit Base is not an amount that may be withdrawn or annuitized and is not an amount payable at death. The Benefit Base is computed: a.) o n the Contract Date, b.) o n Rider Anniversaries after the Contract Date, c.) w  hen Purchase Payments are made, d.) when withdrawals are taken prior to the Income Phase Start Date, e.) o n the Income Phase Start Date, and f.) when Excess Withdrawals are taken on or after the Income Phase Start Date

6.5% Benefit Base Roll-up

When the Owner delays taking income, the GLWB Benefit Base will increase by at least 6.5% each Contract Year during the Roll-up Term. On each Contract Anniversary: • T  he Benefit Base will increase to equal the Account Value provided that prior to the income start date, the Account Value is greater than the Benefit Base after the Roll-up of 6.5% on Net Payments has been applied (This is the “step-up” of the Benefit Base). • T  he Roll-up factor applies to the Benefit Base on each Contract Anniversary prior to the earliest of age 85, the date the Owner begins taking income or until the Contract Anniversary at the end of the 10-year Roll-up Term. Once the Owner begins taking lifetime income, the 6.5% Roll-up stops. However, once in the income phase, if the Account Value is higher than the Benefit Base on any Contract Anniversary, then the Benefit Base will step up on the Contract Anniversary to the Account Value and the Lifetime Annual Income will be recalculated.

Income Phase Start Date

This is the date on which withdrawals of the Lifetime Annual Income begin. Once income is elected, the 6.5% Roll-up of the Benefit Base ends.

Lifetime Withdrawal Rate Schedule

The Lifetime Annual Income amount is based upon a payout percentage of the Benefit Base. • Upon the Income Phase Start Date, a payout percentage is assigned from the Lifetime Withdrawal Rate Schedule as outlined in the Contract. When Lifetime Annual Income is elected, the Lifetime Withdrawal Rate is locked in and never changes. The Lifetime Annual Income is figured by multiplying the Benefit Base by the Lifetime Withdrawal Rate that applies for the age of the person receiving income or the youngest person if the joint payout option applies.

(continued)

For Financial Professional Use Only. Not for use with Consumers.

6

FEATURE

DESCRIPTION

Home Healthcare Doubler

If the Covered Person becomes unable to perform at least two of the six basic activities of daily living, the Lifetime Withdrawal Rate is doubled for up to five years. After the 5 year period, the Lifetime Withdrawal Rate used to calculate Lifetime Annual Income will revert to the original Lifetime Withdrawal Rate. A request for the Home Healthcare Doubler: • must be after the 2nd Contract anniversary • must be made on forms provided by SBL • must be accompanied by a physician’s statement. An annual certification from a physician is required to continue the benefits of this feature during the 5 year period. Can only be applied for one time. Not available in all states. Please refer to the SOU for a list of states in which the Doubler is not available.

Continuation of the GLWB Rider

Prior to the Income Phase Start Date, the GLWB continues with the continuation of the Contract. If the Contract can be continued and distribution is not required, the Benefit Base will not change as a result of death. If the GLWB is elected and if Joint Owners are named, the Joint Owner must be the spouse of the Owner. After the Income Phase Start Date: • If the single life payout method was selected, if the Covered Person is living, the (continued) GLWB will continue with the Contract. If the Contract can be continued and distribution is not required, the Benefit Base will not change as a result of death. • If the single life payout method was selected, if the Covered Person is no longer alive, the GLWB automatically terminates on the death of the Covered Person. At the time your client selects when he/she would like the Lifetime Annual Income to begin, he/she also selects whether the GLWB Rider is for him/her or him/her and his/her spouse. (In the states that require it, your client may select the GLWB Rider to be for him or herself and his/her domestic or civil union partner.) For Lifetime Annual Income to continue for the spouse’s lifetime, the spouse must be named as the designated beneficiary or the Joint Owner of the annuity. If someone other than the spouse is the designated beneficiary or Joint Owner of the annuity, under the federal tax laws, upon the death of your client, the annuity must terminate along with the GLWB Rider. In that event, Lifetime Annual Income is no longer payable and we will make a payment upon your client’s death. A domestic or civil union partner is not currently viewed as a spouse under the federal tax laws.

Required Minimum Distributions (RMDs)

Available free of Surrender Charges, Bonus Recapture Charges and MVA starting in the first contract year. Commission Chargebacks on RMD’s are as follows: Months 1-4: 100% Months 5-8: 66.7% Months 9-12: 33.3% RMDs that are over the Lifetime Annual Income will not cause a proportional adjustment on the Lifetime Annual Income or the Benefit Base.

Withdrawals Effect on GLWB Rider

Prior to taking Lifetime Annual Income: proportional reduction in the Benefit Base. After beginning Lifetime Annual Income: Withdrawal amounts in excess of the Lifetime Annual Income reduce the Benefit Base and Lifetime Annual Income proportionally, except RMD amounts which will not affect the Benefit Base or Lifetime Annual Income. Remember, if your client takes an RMD during the income phase, the Lifetime Annual Income will be the greater of the Lifetime Annual Income without considering RMD or the RMD amount. (continued)

For Financial Professional Use Only. Not for use with Consumers.

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FEATURE

DESCRIPTION

Spousal Continuation Options Listed to the right are some of the most common scenarios. If you have questions about a specific situation, contact your marketer.

Single owned contracts: • Non-natural Person Owner: on the death of the Annuitant, the spouse of Annuitant, if the sole designated beneficiary, may (1) elect to keep the contract in force until the earlier of his or her death or the Annuity Start Date, or (2) receive the amount payable upon death. - Income Rider During Accumulation Phase: • If the Spousal Beneficiary chooses not to continue the contract, interim index credit will be calculated and credited and the death benefit will be paid. • If the Spouse is not the sole, primary beneficiary, the contract and the rider cannot be continued and the death benefit amount will be paid out. • If the Spousal Beneficiary chooses to continue the contract, the death benefit will not be paid and interim index credit will not be calculated or credited to the Account Value. The Spousal Beneficiary can continue the Income Rider as is. - Income Rider During Income Phase: •U  nder a single payout: the death benefit will be paid out and the Rider and contract terminate. •U  nder a joint payout: if the covered person’s spouse is the sole designated beneficiary and is the joint covered person, he/she can choose to continue the contract and GLWB in the Income Phase, subject to the existing terms of the GLWB. •U  nder a joint payout: if the spouse of the deceased covered person is not the sole designated beneficiary or the joint covered person, the death benefit will be paid out and the Rider and contract terminate. • Natural Person Owner: - During Accumulation Phase: •O  n the death of the Owner, the spouse of the Owner can continue the contract if she/he is the sole designated beneficiary •F  or a single owned contract: - If the Owner is not a natural person, on the death of the Annuitant, the spouse of the Annuitant can continue the contract at the contract value (no interim year index credit calculation) if he/she is the sole designated beneficiary - If the Owner is a natural person, on the death of the Owner, the spouse of the Owner can continue the contract at the contract value (no interim year index credit calculation) if he/she is the sole designated beneficiary Joint owned contracts: • Both the Owner or Joint Owner must be natural persons: -O  n the death of the Owner, the spouse of the Owner can continue the contract at the contract value (no interim year index credit calculation) if he/she is the sole designated beneficiary -O  n the death of the Joint Owner, the spouse of the Joint Owner can continue the contract at the contract value (no interim year index credit calculation)if he/she is the sole designated beneficiary.

Commission Chargebacks

Months 1-4: 100% Months 5-8: 66.7% Months 9-12: 33.3% Commission chargebacks are on surrender charges, Death payouts, withdrawals and RMDs in the first year. There will not be a chargeback for GLWB withdrawals in the first contract year.

For Financial Professional Use Only. Not for use with Consumers.

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Bonus annuities, such as the Secure Income Annuity, may include changes to the elements used to determine the index interest credits or changes to the interest rate that are not included in similar annuities without a bonus. These changes may include lower current interest rates, higher surrender charges, longer surrender charge periods, lower participation rates or caps, higher spreads, or other changes. The amount of charges or reduction in interest credits may exceed the amount of the bonus. Standard & Poor’s®, S&P®, S&P 500® and Standard & Poor’s 500TM are trademarks of Standard & Poor’s and have been licensed for use by Security Benefit Life Insurance Company. This Product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of purchasing these products. The Secure Income Annuity (SIA) is not sponsored, endorsed, sold or promoted by Morgan Stanley & Co. LLC or any of its affiliates (collectively, “Morgan Stanley”). Neither Morgan Stanley nor any other party (including without limitation any calculation agents or data providers) makes any representation or warranty, express or implied, regarding the advisability of purchasing this product. The Morgan Stanley Dynamic Allocation Index (the “Index”) is the exclusive property of Morgan Stanley. Morgan Stanley and the Index are service marks of Morgan Stanley and have been licensed for use for certain purposes by Security Benefit Life Insurance Company. Neither Morgan Stanley nor any other party has or will have any obligation or liability to owners of this product in connection with the administration or marketing of this product, and neither Morgan Stanley nor any other party guarantees the accuracy and/or the completeness of the Index or any data included therein. No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any Morgan Stanley trade name, trademark or service mark to sponsor, endorse, market or promote this product without first contacting Morgan Stanley to determine whether Morgan Stanley’s permission is required. Under no circumstances may any person or entity claim any affiliation with Morgan Stanley without the prior written permission of Morgan Stanley. In calculating the performance of the Index, Morgan Stanley deducts on a daily basis a servicing cost of 0.50% per annum. This reduces the potential positive change in the Index and thus the amount of interest that will be credited to a fixed index annuity that is allocated to the Index. The volatility control calculation applied by Morgan Stanley may reduce the potential positive change in the Index and thus the amount of interest that will be credited to a fixed index annuity that is allocated to the Index. In addition, because the volatility control calculation is expected to reduce the overall volatility of the Index, it will also reduce the cost to Security Benefit Life Insurance Company of hedging its interest crediting risk for fixed index annuities with the Index as a crediting option. For Financial Professional Use Only. Not for use with Consumers. This Agent Guide contains highlights only and is not to be used as part of the sale of the Security Benefit Secure Income Annuity. Please refer to the annuity contract for a full explanation of the product and any charges or limitations. The Security Benefit Secure Income Annuity (Form 5800 (11-10) and ICC12 5800 (11-10)) and the Guaranteed Lifetime Withdrawal Rider (GLWB) (Form 5820 (11-10) and ICC10 5820 (11-10)), an optional rider available for purchase with the Security Benefit Secure Income Annuity, are issued by Security Benefit Life Insurance Company. Product features, limitations and availability may vary by state. For more information, visit siaincome.com If you have questions, please contact Advisors Excel at 866.363.9595.

1.800.888.2461

One Security Benefit Place, Topeka, KS 66636-0001 securitybenefit.com TO AND THROUGH RETIREMENT

IM-22400-06 2016/12/15

Designed Exclusively for Advisors Excel