Variable Annuities At-A-Glance. Values. SecurePay. Values. Advantage. alues PABD.4530 (09.11)

Transcription

1 Variable Annuities At-A-Glance Values SecurePay Values Advantage alues PABD.4530 (09.11)

2 the companythe company A Reputation for Excellence fastest Recently recognized one of the fastest growing annuity carriers in the nation, Protective Life Insurance Company carries high high ratings ratings from independent rating organizations who assign ratings measuring financial strength or claims-paying abilities. They consider factors such as overall operating performance, asset quality, financial flexibility and strong, stable quality, serving people, growth capitalization. We are strong, stable and guided by three preeminent values: quality, serving people and growth. Protective Life has insurer financial strength ratings of: A+ A.M. Best Superior, 2nd highest of 15 ratings AA- Standard & Poor s Very Strong, 4th highest of 21 ratings A Fitch Strong, 6th highest of 22 ratings A2 Moody s Investor Services Good, 6th highest of 21 ratings Ratings do not reflect the investment experience or financial strength of any subaccount. These ratings are current as November 10, 2011, are subject to change and do not apply to products or their performance. Please visit for more current information.

3 Products Protective Life Insurance Company offers a wide range of high-value, competitive life insurance and annuity products, including: Variable Annuities Fixed Annuities Immediate Annuities Variable Universal Life Insurance Universal Life Insurance Term Insurance Service As a company built upon the virtues of integrity, honesty and accessibility, we are committed to providing unparalleled support. Your Divisional Sales Director and the Protective Annuity Sales Desk are available to help you leverage your relationship with Protective Life through a variety of business support services, including: Consumer Seminars Illustration Requests Retirement Income Strategies Prospecting Tools Client Meeting Assistance Case Design For more information, supplies, or assistance, contact: The Protective Life Annuity Sales Desk at

4 Product profiles product profiles Protective Life offers two variable annuity options, available exclusively at Edward Jones: ProtectiveValues Advantage Product Type Investment Amounts A-share Variable Annuity Minimum Initial Investment: $5,000 non-qualified or $2,000 qualified Minimum Additional Investment: $100 ($50 via Electronic Funds Transfer) No additional investments accepted after 86th birthday. Maximum Investment: $1 million Higher amounts may be accepted with prior company approval. A sales charge is deducted from each purchase payment: Annual Costs Mortality and expense risk and administration charge: 0.85% Charge is deducted from the average daily net value of the variable subaccounts. Contract maintenance fee: $35 Fee is waived if on the contract anniversary, either the contract value or the total investment (less withdrawals, if any) exceeds $50,000. Contract Value/Net Investments 1 Sales Charge Less than $50, % $50,000 to $99, % $100,000 to $249, % $250,000 to $499, % $500,000 to $999, % $1,000, % 1 The amount used to calculate the sales charge is the greater of: - the current investment plus the current contract value, or - the current investment plus aggregate prior investments less an adjustment for prior withdrawals, if any. Surrender Charge There is never a surrender charge. Penalty Free Withdrawals 2 Penalty free withdrawals are available at any time. Automatic withdrawals are also available. These fixed payments of at least $100 may be taken on a monthly or quarterly basis. The contract value after each automatic withdrawal must be at least $5,000. The contract value after any withdrawal must be at least $5,000 for non-qualified contracts or $2,000 for qualified contracts. Availability Ages 0 85 Optional Investment Programs Return of Purchase Payments Death Benefit Maximum Anniversary Value Death Benefit (Optional, available at additional cost) Loyalty Bonus Protected Lifetime Income Options Dollar Cost Averaging: Six and twelve months Portfolio Rebalancing: Portfolio rebalancing transfers are not taxable and are available quarterly, semi-annually, or annually for the v Model portfolios For complete information, please see the Investment Options Guide and product prospectuses. Certain limitations may apply when pr The standard estate planning benefit, the Return of Purchase Payments Death Benefit, is available at no additional cost. Should the ow The contract value or Total principal invested (total investments) less an adjustment for each prior withdrawal. The Return of Purchase Payments Death Benefit is subject to a maximum of the contract value plus $1 million. The Maximum Anniversary Value Death Benefit is an enhanced estate planning benefit that may be selected in lieu of the Return of Pu This benefit allows the owner to lock in the maximum value attained upon each contract anniversary, potentially providing beneficiarie The contract value or Total principal invested (total investments) less an adjustment for each prior withdrawal or Maximum anniversary value attained before the owner s 80th birthday or date of passing, whichever is earlier less an adjustment for fee for this option is equal to 0.20% (on an annualized basis) of the death benefit at the beginning of each contract month. The Maximum Anniversary Value Death Benefit is subject to a maximum of the contract value plus $1 million. The owner can choose t At no additional charge, Protective Life will reward the owner for maintaining a focus on long-term savings. We will increase the annu period of 10 years or more. See full rider descriptions on the Protected Lifetime Income Options page 2 Withdrawals reduce the annuity s remaining death benefit, contract value, cash surrender value, and future earnings. Withdrawals may be subject to income tax and, if taken prior to age

5 Protective Dimensions O-share Variable Annuity Minimum Initial Investment: $10,000 Minimum Additional Investment: $100 ($50 via Electronic Funds Transfer) No additional investments accepted after 86th birthday. Maximum Investment: $1 million Higher amounts may be accepted with prior company approval. Mortality and expense risk and administration charge: 0.90% Charge is deducted from the average daily net value of the variable subaccounts. Contract maintenance fee: $50 Fee is waived if on the anniversary, either the contract value or the total investment (less withdrawals and surrender charges, if any) exceeds $75,000. Investment brackets with applicable premium-based charges are shown below. Current Investment Plus Annual Premium-based Fee Any Prior Investments 3 Less than $50, % $50,000 to $99, % $100,000 to $249, % $250,000 to $499, % $500,000 to $999, % $1,000, % 3 Starting three months after the contract effective date, the premium-based charge is assessed quarterly. It is originally determined by the amount of the initial investment plus any additional investments received within those first three contract months. This charge then remains level, while it is assessed for seven years (28 quarters). After the first three contract months, additional investments may cause the total contract investmen to exceed the original bracket. When this occurs, the premium-based charge assigned to each additional investment will be determined by the new bracket, and it will be assessed for seven years (28 quarters) on the portion of the additional investment only. This will not, however, change the premium-based charge assigned to previous investments nor will it change the remaining number of quarters for that charge to be assessed on these amounts. The owner has full access to each investment and any earnings attributed to it without a surrender charge seven years after it has been applied to the contract. Current Investment Plus Surrender Charges by Year 4 Any Prior Investments Less than $50,000 7% 6% 6% 5% 4% 3% 2% 0% $50,000 to $99,999 6% 5% 5% 4% 3% 2% 1% 0% $100,000 to $249,999 5% 4% 4% 3% 2% 2% 1% 0% $250,000 to $499,999 4% 3% 3% 2% 2% 1% 1% 0% $500,000 to $999,999 3% 2% 2% 2% 1% 1% 0.5% 0% $1,000, % 1% 1% 1% 1% 0.5% 0.5% 0% 4 Each investment is assigned a unique surrender charge schedule based on the amount. Any additional investments made that cause the total contract investment to exceed the original bracket will each be assigned a surrender charge schedule based upon the new bracket. Previous investments will continue to be subject to the originally assigned surrender charge schedule. During the first contract year, contract owners can withdraw 10% of the initial investment without a surrender charge. After the first contract year, the owner can withdraw the greatest of: Accumulated earnings as of the prior contract anniversary 10% of the aggregate net investment as of the prior contract anniversary 10% of the contract value as of the prior contract anniversary Automatic withdrawals are also available. These fixed payments of at least $100 may be taken on a monthly or quarterly basis. The contract value after each withdrawal must be at least $10,000. ariable sub-accounts only. otected lifetime income benefits are added to a variable annuity contract. ner pass away before starting annuity income payments, beneficiaries will receive the greater of: rchase Payments Death Benefit for an additional fee. s with a larger benefit, if the contract value increases over time. Should the owner pass away before starting their annuity income payments, beneficiaries will receive the greatest of: each prior withdrawal. his option if they are age 75 or younger. Once it is chosen, it cannot be changed for the term of the contract. ity value by 2% (based on the contract value), if annuity payments start after the 10th contract anniversary. To qualify, the annuity payments must be structured for life with a certain 59½, an additional 10% IRS tax penalty may apply. More frequent withdrawals may reduce earnings more than annual withdrawals.

6 income protected lifetime income options Protective Life offers three protected lifetime income benefits for an additional cost to better meet unique retirement income needs: SecurePay FX Secu Highlights Annual Costs Guaranteed growth now with steady, predictable income later Potential for the benefit base to grow by a minimum of 5.0% or 6.0% per year (dependent on age) for up to 20 years or until the owner decides to begin benefit withdrawals (if earlier), regardless of market performance Captures market gains with downside protection At issue: 1.00% of the benefit base Add it later with RightTime: 1.10% Guaranteed growth now with st Potential for the benefit base to from the rider effective date or of market performance Captures market gains with dow At issue: 0.90% of benefit base Add it later with RightTime: 1.00% Availability Ages Available with Protective Dimensions contracts only. Ages Available with ProtectiveValues Advan Annual Withdrawal Amounts Annual Withdrawal Age Percentage (attained age of the younger covered person) Joint Single (two spouses) (one person) 59 1 / % 5.0% % 6.0% The initial withdrawal amount is calculated on the benefit election date, and will re-calculate on the contract anniversary if either: 1) the benefit base changed since the later of the benefit election date or the prior contract anniversary or 2) the withdrawal percentage changed based on the age of the younger covered person. Age (younger covered person as of the benefit election date) Annu P Joint (two spou 60* % % Benefit Base The benefit base is the amount on which the protected lifetime income benefits are determined. It is not the value of the contract or the estate pla If the protected lifetime income option is added at issue The benefit base is equal to the initial purchase payment, increased dollar-for d If RightTime option is selected The benefit base is equal to the contract value as of the rider effective date, increased dollar-for- dollar for an With any option, the benefit base is capped at $5 million. Step-Up Provision An opportunity to step-up the amount of the benefit base occurs on every contract anniversary until the owner reaches age 95. The benefit base will increase when, on any contract anniversary, positive market performance causes the adjusted contract value on any of the quarterly anniversaries since the last contract anniversary (the Highest Quarterly Value ) to exceed the value of the benefit base. The adjusted contract value equals the contract value minus any investments made two years or more after selecting the benefit. When this occurs, the benefit base increases to equal the Highest Quarterly Value, offering more opportunities each year to capture market gains. Future benefit withdrawals are then based on the new, higher benefit base - increasing the amount of the benefit withdrawals. This opportunity occurs on every contra base. The adjusted contract value equal Future benefit withdrawals are then ba Roll-Up Benefit Extra Benefits Age (attained age of the younger contract owner) Roll-Up Percentage % % If the Highest Quarterly Values is less than the guaranteed roll-up rate indicated, the benefit base will still increase annually based on the attained age of the younger contract owner. This opportunity occurs on every contract anniversary for at least 10 years or until the owner decides to begin benefit withdrawals, if earlier. Future benefit withdrawals are then based on the guaranteed new and higher benefit base, increasing the amount of benefit withdrawals. If the adjusted contract value grows more than the guaranteed rate due to positive market performance, the 10-year guaranteed growth period will reset, providing the potential to double the guaranteed growth period from 10 years to a maximum of 20 years. Should the adjusted contract value grow by 5%. This opportunity occurs on every contra benefit withdrawals, if earlier. Future be higher benefit base, increasing the amo SecurePay ME (medical condition enhancement): May provide additional withdrawal amounts for owners with qualifying medical conditions. SecurePay NH (nursing home enhancement): May provide additional withdrawal amounts if the owner is receiving qualifying nursing home care, Note: Protected lifetime income benefits have certain requirements and restrictions, are available at an additional cost, are subject to state availability, and will affect the under

7 repay Advantage eady, predictable income later grow by a minimum of 5% per year, either 10 times until benefit withdrawals begin (if earlier), regardless nside protection SecurePay Steady, predictable income Captures market gains with downside protection Poor market performance has no effect on income At issue: 0.50% of benefit base Add it later with RightTime: 0.60% tage contracts only. al Withdrawal ercentage Single ses) (one person) 5.0% 6.0% * While the owner of the contract must be at least 60 to purchase SecurePay Advantage, the joint life coverage option allows withdrawals to begin when the youngest covered person attains age 59½. In this scenario, the withdrawal percentage available would be the same as if the younger covered person were age 60. Ages (for ProtectiveValues Advantage contracts) Ages (for Protective Dimensions contracts) One person: 5.0% Both spouses: 4.5% nning benefit. ollar for additional purchase payments received in the first two years of the contract, adjusted for any withdrawals. y additional purchase payment received within two years of the rider effective date, adjusted for any withdrawals. ct anniversary until the owner reaches age 95. The benefit base will increase when positive market performance causes the adjusted contract value to exceed the benefit s the contract value minus any investments made two years after purchasing the benefit. sed on the new, higher benefit base increasing the amount of the benefit withdrawals. by less than 5% each year, the benefit base will still increase ct anniversary for 10 years or until the owner decides to begin nefit withdrawals are then based on the guaranteed new and unt of benefit withdrawals. N/A potentially doubling the annual withdrawal amount up to a maximum of 10%. lying annuity contract features. For complete details, please read the product prospectus.

8 investment options investment options Clients can choose to diversify with a model portfolio managed by the experts or build their own diversified portfolio from among more than 50 investment options from 12 reputable fund managers. Large Cap Value Goldman Sachs VIT Large Cap Value Fund 2 Lord Abbett Series Fund, Inc. Growth and Income Portfolio 2 MFS VIT Value Series 2 Mutual Shares Securities Fund 2 Templeton Foreign Securities Fund 3 Invesco Van Kampen V.I. Comstock Fund 2 Invesco Van Kampen V.I. Growth and Income Fund 2 Large Cap blend Fidelity VIP Index 500 Portfolio 2 Franklin Rising Dividends Securities Fund 2 Goldman Sachs VIT Strategic International Equity Fund 3 Lord Abbett Series Fund, Inc. Fundamental Equity Portfolio 3 Lord Abbett Series Fund, Inc. Classic Stock Portfolio 2 MFS VIT Investors Trust Series 2 MFS VIT Research Series 3 Oppenheimer Main Street Fund/VA 2 Templeton Growth Securities Fund 3 Large Cap growth Fidelity VIP Contrafund Portfolio 3 Franklin Flex Cap Growth Securities Fund 3 Goldman Sachs VIT Strategic Growth Fund 2 MFS VIT Growth Series 2 MFS VIT Investors Growth Stock Series 2 Oppenheimer Capital Appreciation Fund/VA 3 Oppenheimer Global Securities Fund/VA 3 mid cap value Goldman Sachs VIT Mid Cap Value Fund 3 Lord Abbett Series Fund, Inc. Mid Cap Value Portfolio 3 Invesco Van Kampen V.I. Mid Cap Value Fund 3 mid cap blend Legg Mason ClearBridge Variable Mid Cap Core Portfolio 3 mid cap growth Allocation by Investment Category (AIC) Fidelity VIP Mid Cap Portfolio 3 Franklin Small-Mid Cap Growth Securities Fund 3 Goldman Sachs VIT Growth Opportunities Fund 3 Lord Abbett Series Fund, Inc. Growth Opportunities Portfolio 3 Lord Abbett Series Fund, Inc. International Opportunities Portfolio 3 Invesco Van Kampen V.I. Mid Cap Growth Fund 3 Allocation by Investment Category (AIC) small cap value Franklin Small Cap Value Securities Fund 3 small cap blend Royce Capital Fund Micro-Cap Portfolio 3 Royce Capital Fund Small-Cap Portfolio 3 small cap growth Legg Mason ClearBridge Variable Small Cap Growth Portfolio 3 MFS VIT New Discovery Series 3 allocation funds American Funds Insurance Series Asset Allocation Fund 2 Franklin Income Securities Fund 2 Lord Abbett Series Fund, Inc. Capital Structure Portfolio 2 MFS VIT Total Return Series 2 Invesco Van Kampen V.I. Equity and Income Fund 2 sector funds MFS VIT Utilities Series 3 UIF Global Real Estate Portfolio 3 money market Oppenheimer Money Fund/VA 1 high quality short-term Franklin U.S. Government Fund 1 PIMCO VIT Low Duration Portfolio 1 PIMCO VIT Short-Term Portfolio 1 high quality intermediate-term Fidelity VIP Investment Grade Bond Portfolio 1 MFS VIT Research Bond Series 1 PIMCO VIT Total Return Portfolio 1 Invesco V.I. Government Securities Fund 1 medium quality intermediate-term Oppenheimer Global Strategic Income Fund/VA 1 Templeton Global Bond Securities Fund 2 high quality long-term PIMCO VIT Long-Term US Government Portfolio 1 PIMCO VIT Real Return Portfolio 1 medium quality long-term Lord Abbett Series Fund, Inc. Bond Debenture Portfolio 1

9 model portfolios model portfolios Protective Life offers four model portfolios to simplify the asset allocation process. Each offers broad diversification by asset class and fund manager. They are turnkey solutions for investors with varying levels of risk tolerance who prefer to have their investment portfolio designed by the experts. Conservative Growth Target Allocation: 45% Equity / 55% Fixed Income n Franklin U.S. Government Fund % n MFS VIT Research Bond Series % n Oppenheimer Money Fund/VA...7.0% n PIMCO VIT Low Duration Portfolio...9.0% n PIMCO VIT Short-term Portfolio...9.0% n Mutual Shares Securities Fund...5.0% n Goldman Sachs VIT Strategic Growth Fund...5.0% n Lord Abbett Series Fund, Inc. Growth and Income Portfolio...5.0% n MFS VIT Value Series...5.0% n Invesco Van Kampen V.I. Growth and Income Fund...5.0% n Fidelity VIP Mid Cap Portfolio...8.0% n Lord Abbett Series Fund, Inc. Fundamental Equity Portfolio...7.0% n Oppenheimer Global Securities Fund/VA...5.0% Moderate Growth Target Allocation: 55% Equity / 45% Fixed Income n Fidelity VIP Investment Grade Bond Portfolio...5.0% n Lord Abbett Series Fund, Inc. Bond Debenture Portfolio % n Oppenheimer Global Strategic Income Fund/VA % n PIMCO VIT Total Return Portfolio % n Mutual Shares Securities Fund...5.0% n Goldman Sachs VIT Strategic Growth Fund % n MFS VIT Investors Trust Series % n Invesco Van Kampen V.I. Growth and Income Fund % n Templeton Global Bond Securities Fund % n Fidelity VIP Contrafund Portfolio...5.0% n Legg Mason Clearbridge Variable Mid Cap Core Portfolio...5.0% n Lord Abbett Series Fund, Inc. Fundamental Equity Portfolio...5.0% n Royce Capital Fund Small-Cap Portfolio...5.0%

10 Growth and Income Target Allocation: 65% Equity / 35% Fixed Income n Franklin U.S. Government Fund...5.0% n Lord Abbett Series Fund, Inc. Bond Debenture Portfolio % n PIMCO VIT Real Return Portfolio % n PIMCO VIT Total Return Portfolio % n Mutual Shares Securities Fund % n Goldman Sachs VIT Large Cap Value Fund % n Invesco Van Kampen V.I. Growth and Income Fund % n Invesco Van Kampen V.I. Equity and Income Fund...5.0% n Fidelity VIP Mid Cap Portfolio...5.0% n Lord Abbett Series Fund, Inc. Fundamental Equity Portfolio...5.0% n MFS VIT New Discovery Series...5.0% n Oppenheimer Global Securities Fund/VA...5.0% n Royce Capital Fund Small-Cap Portfolio...5.0% n Goldman Sachs VIT Mid Cap Value Fund...5.0% Aggressive Growth* Target Allocation: 90% Equity / 10% Fixed Income n Franklin U.S. Government Fund...5.0% n PIMCO VIT Total Return Portfolio...5.0% n MFS VIT Value Series...5.0% n Mutual Shares Securities Fund % n Lord Abbett Series Fund, Inc. Growth and Income Portfolio...5.0% n Invesco Van Kampen V.I. Growth and Income Fund % n Invesco Van Kampen V.I. Equity and Income Fund...5.0% n Lord Abbett Series Fund, Inc. Fundamental Equity Portfolio % n Fidelity VIP Mid Cap Portfolio % n Invesco Van Kampen V.I. Mid Cap Growth Fund...5.0% n Royce Capital Fund Small-Cap Portfolio % n MFS VIT New Discovery Series...5.0% n Oppenheimer Global Securities Fund/VA...5.0% n Goldman Sachs VIT Strategic International Equity Fund % * Aggressive Growth model is not available on contracts with a protected lifetime income option. Protected lifetime income benefits are only available with our preapproved model portfolios, approved Edward Jones model portfolios (not pictured), or our unique Allocation by Investment Category (AIC) program.

11 income options Investing with protected Lifetime INcome Investing with Protected Lifetime Income Options SecurePay FX, SecurePay Advantage and SecurePay are only available with one of three options: Option 1 Allocate the investment to one of three Protective Life model portfolios: Conservative Growth Moderate Growth Growth and Income Option 2 Allocate the investment to one of two Edward Jones model portfolios approved for use with our protected lifetime income options: Balanced: Growth and Income Balanced Towards Growth Option 3 Customize a portfolio. Build a diversified portfolio to meet specific needs by participating in our AIC program. Each Protective Life variable annuity fund has been assigned to an investment category based on investment risk. The owner may allocate the investment to any fund in Categories 1, 2 or 3, provided the minimum and maximum allocation requirements are met. Category Minimum Allocation Maximum Allocation 1 35% 100% 2 0% 65% 3 0% 30% For more information regarding the annuity fund categories, please see the Investment Options section of this brochure. Allocation Adjustment If the contract includes SecurePay FX, Protective Life employs an allocation adjustment feature to help limit the risk the company assumes under the optional benefit. Beginning in the 13th contract month, if at any time within the owner s allocation the accumulation unit value of an individual investment option in either of the Moderate or Aggressive Investment Categories drops below a specified level, that option will become restricted. The investment currently assigned to it will temporarily be allocated to the Oppenheimer Money Fund/VA. Once the investment option s accumulation unit value rises above the specified level, the restriction will be lifted and the owner s investment returned to the original allocation.

12 Variable annuities are long-term investments intended for retirement planning and involve market risk and the possible loss of principal. Investments in variable annuities are subject to fees and charges from the insurance company and the investment managers. All guarantees are subject to the claims-paying ability of Protective Life Insurance Company. Policy form VDA-P-2006 and IPV-2132 (and state variations thereof). Protective Dimensions and ProtectiveValues Advantage are flexible premium deferred variable and fixed annuity contracts. Product features and availability may vary by state. SecurePay benefits provided by rider form number IPV-2164 or VDA-P-6008 (and state variations thereof). SecurePay Advantage benefits provided by rider form number IPV-2166 (and state variations thereof). SecurePay FX benefits provided by rider form number VDA-P SecurePay ME endorsement provided under form number IPV-2156 (and state variations thereof). SecurePay NH provided under policy form number IPV-2159 (and state variations thereof). Variable annuities issued by Protective Life Insurance Company (PLICO). Securities offered by Investment Distributors, Inc. (IDI). Both located at 2801 Highway 280 South, Birmingham, AL IDI is the principal underwriter for registered insurance products issued by PLICO, its affiliate. Investors should carefully consider the investment objectives, risks, charges, and expenses of a variable annuity, any GLWB rider, and the underlying investment options before investing. This and other information is contained in the prospectuses for a variable annuity and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting PLICO at (800) V PABD.4530 (09.11)