Variable Annuity Products

Transcription

1 Training Module Variable Annuity Products Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company Featuring: AdvantEdge AnnuiChoice Pinnacle CF CF-01A CF VAROOM VAROOM VAROOM Rep Fact Sheet Client Brochure Living Benefit Brochure CF CF CF VAROOM Investment Options GLIA II Investment Options CF CF CF Annuity Guide Prepared by the National Association of Insurance Commissioners EF For a prospectus, visit WSFinancialPartners.com. RISK MANAGEMENT FINANCIAL SOLUTIONS FOR FINANCIAL PROFESSIONAL USE ONLY Last Updated: 5/1/12

2 IMPORTANT NOTICE: When you understand all the product information in this course, close this window only by clicking the X in the upper right corner of the window. Once you ve closed the window, click the Course Home button, then click Take or Continue under the Review Test section to complete the product training. RISK MANAGEMENT FINANCIAL SOLUTIONS FOR FINANCIAL PROFESSIONAL USE ONLY

3 AdvantEdge Product Overview Withdrawal Charge Schedule Investment Options Standard Death Benefit Optional Benefits Flexible Premium Variable Annuity: L-Share Type Description: A variable annuity is a long-term financial vehicle designed for retirement purposes. An insurance company accepts premiums and provides future income or a lump sum to the contract owner by contractual agreement. Contract limitations, fees and charges include, but are not limited to, mortality and risk expense charges, administrative fees, sales and surrender charges, and additional fees for optional benefits. Withdrawals also may be subject to charges, and may reduce annuity contract benefits and values. Contract Type: Annuitant-driven (benefits based on the annuitant s life) Issuer: Integrity Life Insurance Company, Cincinnati, Ohio, & National Integrity Life Insurance Company, Goshen, New York Distributor: Touchstone Securities, Inc. Contribution Limits Initial: $20,000 minimum; Additional: $100 minimum Issue Ages: Nonqualified and tax qualified: 0 85 Contract Size: Maximum: $1,000,000 without prior company approval ($500,000 at issue ages 76 85) Integrity & National Integrity Contribution Year Thereafter Withdrawal Charge 7% 6% 5% 4% 0% Free Withdrawals: 10% of account value available free each contract year (noncumulative) Variable Investment Options More than 50 investment options available All asset classes and investment styles featured, including alternative investments Fixed Account Options Minimum guaranteed interest rate on fixed accounts as provided by the annuity contract 5-, 7- and 10-year Guaranteed Rate Options (GROs) Market value adjustments apply in certain situations 6- and 12-month Systematic Transfer Option (STO) The greater of: Total contributions (adjusted for withdrawals) or The current account value Guaranteed Lifetime Income Advantage (GLWB) 1 Guaranteed Lifetime Income Advantage guarantees lifetime withdrawals regardless of investment performance, as long as the contract remains in effect and withdrawals are limited to the amount available under the benefit. Individual or spousal options are available. Refer to the client brochure for details, including additional annual charge of 0.90% for an individual or 1.15% for spouses (up to 1.20% and 1.60% maximum, respectively) of the benefit s payment base. A prospectus must accompany or precede this material. (continued) 1 Spousal GLWB not available in NH Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company CF BROKER-DEALER USE ONLY

4 Optional Benefits (continued) Contract Fees & Charges Enhanced Earnings Benefit 2,3 Provides an additional amount intended to offset the potential tax liability or other expenses beneficiaries may incur at the annuitant s death; available up to age 80 Refer to the prospectus for details Additional annual charge of %, based on account value, will apply according to annuitant issue age Enhanced Death Benefit (Additional annual charge of 0.20% will apply) The greater of: The highest account value on any contract anniversary (prior to annuitant s 76th birthday), plus subsequent contributions, minus subsequent partial withdrawals; or Standard death benefit as described above M&E: 1.60% (does not apply to fixed accounts) Administrative Charge: $50 per year if account value is under $50,000 Transfer: $20 each after 12 transfers per year (does not apply to DCA, STO or asset rebalancing transfers) Contact the Sales Desk for more information: Broker-Dealers Financial Institutions Independent Agents Goshen, New York Not available in ME, NH, NY, VT and WA 3 Not available with GLWB Variable annuities are issued by Integrity Life Insurance Company, Cincinnati, OH, and National Integrity Life Insurance Company, Goshen, NY, and offered by Touchstone Securities, Inc.*, Cincinnati, OH. Integrity operates in DC and all states, except ME, NH, NY and VT where National Integrity operates. W&S Financial Group Distributors is an affiliated agency of the issuer. Issuer has sole financial responsibility for its products. All companies are members of Western & Southern Financial Group. This sheet briefly summarizes some of the contract provisions and is not part of the annuity contracts themselves. These annuities have limitations and terms under which the contracts may be discontinued. Payment of benefits under the annuity contract is the obligation of, and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claimspaying ability of the insurer. Products are backed by the full financial strength of Integrity and National Integrity. There is no guarantee of the investment performance or safety of the variable investment options in this variable annuity. Earnings and pre-tax premium payments are subject to income tax at withdrawal. Withdrawals prior to age 59½ are generally subject to a 10% IRS penalty tax. Withdrawals may be subject to charges and additional tax implications. Integrity and National Integrity do not offer tax advice. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest. Product and feature availability, as well as benefit provisions, vary by state. Investment return and principal value of an investment in a variable annuity will fluctuate, so units, when redeemed, may be worth more or less than their original cost. Variable annuities are tax-deferred insurance products. If you are investing through a tax-advantaged plan, you will receive no additional tax advantage or deferral from the annuity. Contract series INT I, INT96 Rev., INT96 FRL, INT , IR , IR SP, IR , IR SP, NIL-NIL GM NY Cert, NIL GM SP NY Cert, NR , NR SP, NR NY Cert, NR SP NY Cert, NR , NR SP, NR NY Cert and NR SP NY Cert. An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product and fund prospectuses. For product and fund prospectuses detailing investment objectives, risks, charges and expenses, call the Sales Desk or visit WSFinancialPartners.com. Read prospectuses carefully before recommending. * A registered broker-dealer and member FINRA/SIPC. No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 2012 Western & Southern Financial Group. All rights reserved. BROKER-DEALER USE ONLY

5 AnnuiChoice Product Overview Withdrawal Charge Schedule Investment Options Standard Death Benefit Optional Benefits Flexible Premium Variable Annuity: B-Share Type Description: A variable annuity is a long-term financial vehicle designed for retirement purposes. An insurance company accepts premiums and provides future income or a lump sum to the contract owner by contractual agreement. Contract limitations, fees and charges include, but are not limited to, mortality and risk expense charges, administrative fees, sales and surrender charges, and additional fees for optional benefits. Withdrawals also may be subject to charges, and may reduce annuity contract benefits and values. Contract Type: Annuitant-driven (benefits based on the annuitant s life) Issuer: Integrity Life Insurance Company, Cincinnati, Ohio, & National Integrity Life Insurance Company, Goshen, New York Distributor: Touchstone Securities, Inc. Contribution Limits Initial: $10,000 minimum; Additional: $1,000 minimum Issue Ages: Nonqualified and tax qualified: 0 85 Contract Size: Maximum: $1,000,000 without prior company approval ($500,000 at issue ages 76 85) Integrity Contribution Year Thereafter Withdrawal Charge 8% 7.5% 7% 6% 5% 4% 3% 0% National Integrity Contribution Year Thereafter Withdrawal Charge 7% 6% 5% 4% 3% 2% 1% 0% Free Withdrawals: 10% of account value available free each contract year (noncumulative) Variable Investment Options More than 50 investment options available All asset classes and investment styles featured, including alternative investments Fixed Account Options Minimum guaranteed interest rate on fixed accounts as provided by the annuity contract 5-, 7- and 10-year Guaranteed Rate Options (GROs) Market value adjustments apply in certain situations 6- and 12-month Systematic Transfer Option (STO) The greater of: Total contributions (adjusted for withdrawals); The current account value; or The account value on the seventh contract anniversary (plus subsequent contributions and adjusted for withdrawals) Guaranteed Lifetime Income Advantage (GLWB) 1 Guaranteed Lifetime Income Advantage guarantees lifetime withdrawals regardless of investment performance, as long as the contract remains in effect and withdrawals are limited to the amount available under the benefit. Individual or spousal options are available. A prospectus must accompany or precede this material. (continued) 1 Spousal GLWB not available in NH Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company CF-01A FOR BROKER-DEALER USE ONLY

6 Optional Benefits (continued) Contract Fees & Charges Guaranteed Lifetime Income Advantage (GLWB) (continued) Refer to the client brochure for details, including additional annual charge of 0.90% for an individual or 1.15% for spouses (up to 1.20% and 1.60% maximum, respectively) of the benefit s payment base. Enhanced Earnings Benefit 2,3 Provides an additional amount intended to offset the potential tax liability or other expenses beneficiaries may incur at the annuitant s death; available up to age 80 Refer to the prospectus for details Additional annual charge of %, based on account value, will apply according to annuitant issue age Enhanced Death Benefit (Additional annual charge of 0.20% will apply) The greater of: The highest account value on any contract anniversary (prior to annuitant s 76th birthday), plus subsequent contributions, minus subsequent partial withdrawals; or Standard death benefit as described above M&E: 1.15% (does not apply to fixed accounts) Administrative Charge: $30 per year if account value is under $75,000 Transfer: $20 each after 12 transfers per year (does not apply to DCA, STO or asset rebalancing transfers) Contact the Sales Desk for more information: Broker-Dealers Financial Institutions Independent Agents Goshen, New York Not available in ME, NH, NY, VT and WA 3 Not available with GLWB Variable annuities are issued by Integrity Life Insurance Company, Cincinnati, OH, and National Integrity Life Insurance Company, Goshen, NY, and offered by Touchstone Securities, Inc.*, Cincinnati, OH. Integrity operates in DC and all states, except ME, NH, NY and VT where National Integrity operates. W&S Financial Group Distributors is an affiliated agency of the issuer. Issuer has sole financial responsibility for its products. All companies are members of Western & Southern Financial Group. This sheet briefly summarizes some of the contract provisions and is not part of the annuity contracts themselves. These annuities have limitations and terms under which the contracts may be discontinued. Payment of benefits under the annuity contract is the obligation of, and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claimspaying ability of the insurer. Products are backed by the full financial strength of Integrity and National Integrity. There is no guarantee of the investment performance or safety of the variable investment options in this variable annuity. Earnings and pre-tax premium payments are subject to income tax at withdrawal. Withdrawals prior to age 59½ are generally subject to a 10% IRS penalty tax. Withdrawals may be subject to charges and additional tax implications. Integrity and National Integrity do not offer tax advice. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest. Product and feature availability, as well as benefit provisions, vary by state. Investment return and principal value of an investment in a variable annuity will fluctuate, so units, when redeemed, may be worth more or less than their original cost. Variable annuities are tax-deferred insurance products. If you are investing through a tax-advantaged plan, you will receive no additional tax advantage or deferral from the annuity. Contract series INT96 Rev., INT96 FRL, INT95, INT I, INT 07-04, INT , IR , IR SP, IR , IR SP, NIL95, NIL NY Cert, NIL , NIL SP NY Cert, NR , NR SP, NR NY Cert, NR SP NY Cert, NR , NR SP, NR NY Cert and NR SP NY Cert. An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product and fund prospectuses. For product and fund prospectuses detailing investment objectives, risks, charges and expenses, call the Sales Desk or visit WSFinancialPartners.com. Read prospectuses carefully before recommending. * A registered broker-dealer and member FINRA/SIPC. No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 2012 Western & Southern Financial Group. All rights reserved. FOR BROKER-DEALER USE ONLY

7 Pinnacle Product Overview Withdrawal Charge Schedule Investment Options Standard Death Benefit Optional Benefits Flexible Premium Variable Annuity: B-Share Type Description: A variable annuity is a long-term financial vehicle designed for retirement purposes. An insurance company accepts premiums and provides future income or a lump sum to the contract owner by contractual agreement. Contract limitations, fees and charges include, but are not limited to, mortality and risk expense charges, administrative fees, sales and surrender charges, and additional fees for optional benefits. Withdrawals also may be subject to charges, and may reduce annuity contract benefits and values. Contract Type: Annuitant-driven (benefits based on the annuitant s life) Issuer: Integrity Life Insurance Company, Cincinnati, Ohio, & National Integrity Life Insurance Company, Goshen, New York Distributor: Touchstone Securities, Inc. Contribution Limits Initial: $1,000 minimum; Additional: $100 minimum Issue Ages: Nonqualified and tax qualified: 0 85 Contract Size: Maximum: $1,000,000 without prior company approval ($500,000 at issue ages 76 85) Integrity Contribution Year Thereafter Withdrawal Charge 8% 7% 6% 5% 4% 3% 2% 0% National Integrity Contribution Year Thereafter Withdrawal Charge 7% 6% 5% 4% 3% 2% 1% 0% Free Withdrawals: 10% of account value available free each contract year (noncumulative) Variable Investment Options More than 50 investment options available All asset classes and investment styles featured, including alternative investments Fixed Account Options Minimum guaranteed interest rate on fixed accounts as provided by the annuity contract 5-, 7- and 10-year Guaranteed Rate Options (GROs) Market value adjustments apply in certain situations 6- and 12-month Systematic Transfer Option (STO) The greater of: Total contributions (adjusted for withdrawals); The current account value; or The account value on any contract anniversary before annuitant s 81st birthday (plus subsequent contributions and adjusted for withdrawals) Guaranteed Lifetime Income Advantage (GLWB) 1 Guaranteed Lifetime Income Advantage guarantees lifetime withdrawals regardless of investment performance, as long as the contract remains in effect and withdrawals are limited to the amount available under the benefit. Individual or spousal options are available. A prospectus must accompany or precede this material. (continued) 1 Spousal GLWB not available in NH Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company CF BROKER-DEALER USE ONLY

8 Optional Benefits (continued) Contract Fees & Charges Guaranteed Lifetime Income Advantage (GLWB) (continued) Refer to the client brochure for details, including additional annual charge of 0.90% for an individual or 1.15% for spouses (up to 1.20% and 1.60% maximum, respectively) of the benefit s payment base. Enhanced Earnings Benefit 2,3 Provides an additional amount intended to offset the potential tax liability or other expenses beneficiaries may incur at the annuitant s death; available up to age 80 Refer to the prospectus for details Additional annual charge of %, based on account value, will apply according to annuitant issue age M&E: 1.55% (does not apply to fixed accounts) Administrative Charge: $30 per year if account value is under $50,000 Transfer: $20 each after 12 transfers per year (does not apply to DCA, STO or asset rebalancing transfers) Contact the Sales Desk for more information: Broker-Dealers Financial Institutions Independent Agents Goshen, New York Not available in ME, NH, NY, VT and WA 3 Not available with GLWB Variable annuities are issued by Integrity Life Insurance Company, Cincinnati, OH, and National Integrity Life Insurance Company, Goshen, NY, and offered by Touchstone Securities, Inc.*, Cincinnati, OH. Integrity operates in DC and all states, except ME, NH, NY and VT where National Integrity operates. W&S Financial Group Distributors is an affiliated agency of the issuer. Issuer has sole financial responsibility for its products. All companies are members of Western & Southern Financial Group. This sheet briefly summarizes some of the contract provisions and is not part of the annuity contracts themselves. These annuities have limitations and terms under which the contracts may be discontinued. Payment of benefits under the annuity contract is the obligation of, and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claimspaying ability of the insurer. Products are backed by the full financial strength of Integrity and National Integrity. There is no guarantee of the investment performance or safety of the variable investment options in this variable annuity. Earnings and pre-tax premium payments are subject to income tax at withdrawal. Withdrawals prior to age 59½ are generally subject to a 10% IRS penalty tax. Withdrawals may be subject to charges and additional tax implications. Integrity and National Integrity do not offer tax advice. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest. Product and feature availability, as well as benefit provisions, vary by state. Investment return and principal value of an investment in a variable annuity will fluctuate, so units, when redeemed, may be worth more or less than their original cost. Variable annuities are tax-deferred insurance products. If you are investing through a tax-advantaged plan, you will receive no additional tax advantage or deferral from the annuity. Contract series INT96 Rev., INT96 FRL, INT I, INT 07-07, INT , IR , IR SP, IR , IR SP, NIL95, NIL NY Cert, NIL , NIL SP NY Cert, NR , NR SP, NR NY Cert, NR SP NY Cert, NR , NR SP, NR NY Cert and NR SP NY Cert. An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product and fund prospectuses. For product and fund prospectuses detailing investment objectives, risks, charges and expenses, call the Sales Desk or visit WSFinancialPartners.com. Read prospectuses carefully before recommending. * A registered broker-dealer and member FINRA/SIPC. No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 2012 Western & Southern Financial Group. All rights reserved. BROKER-DEALER USE ONLY

9 VAROOM Rep Fact Sheet Variable Annuity for Roll Over Only Money Focus on VAROOM Contract Type Flexible premium variable annuity (single premium deferred annuity in Oregon) issued by Integrity Life Insurance Company, Cincinnati, OH, and National Integrity Life Insurance Company, Goshen, NY, and offered by Touchstone Securities, Inc. 1 All are members of Western & Southern Financial Group, Cincinnati, OH. Availability/Issue Age Must be issued exclusively as an IRA (traditional, Roth, SEP); maximum owner issue age: 80 Separate account charges: Annual 1.90% (0.75% M&E; 0.35% administration, 0.80% distribution 2 ) Charges deducted daily All-in cost as low as 1.99% (1.90% % subaccount expense for ishares S&P 500 Index Fund) Premiums $25,000 initial; $1,000 additional; up to $1 million total without prior approval Subaccounts investing in: o ETFs from ishares Investment o ETFs from Vanguard Options & Expenses o Vanguard Variable Insurance Fund Money Market Portfolio Transfers Withdrawals Death Benefit Low-cost ETF portfolio options fund expenses range from 0.09% 0.50% 60-day waiting period between voluntary transfers Systematic Transfer Option (either 6 or 12 months) available for dollar-cost averaging Free withdrawal: Up to 10% of account value (noncumulative) may be withdrawn each contract year Declining withdrawal charge (applied to each premium, not account value): Premium Year Charge as % of Premium Withdrawn 7% 7% 6% 5% 4% 0% If RMD exceeds free withdrawal amount, it may be withdrawn without penalty once per contract year No withdrawal charge for withdrawals of the Lifetime Payout Amount provided by the optional Guaranteed Lifetime Withdrawal Benefit (see back page for details) Included in base contract (named beneficiary receives higher of return of premium with proportional reduction for withdrawals or current account value) For fair and balanced comparisons, know the VAROOM value differences. 1 A registered broker-dealer and member FINRA/SIPC. (continued) 2 The distribution charge reimburses the insurance company for costs of distribution of VAROOM, including commissions paid to our distributors. Payment of benefits under the annuity contract is the obligation of, and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claims-paying ability of the insurer. There is no guarantee of the investment performance or safety of the variable investment options. Integrity operates in DC and all states except ME, NH, NY and VT, where National Integrity operates. W&S Financial Group Distributors is an affiliated agency of the issuer. Issuer has sole financial responsibility for its products. All are members of Western & Southern Financial Group. Variable annuities are suited for long-term investing. Earnings and pre-tax payments are subject to income tax at withdrawal. Withdrawals prior to age 59½ are generally subject to a 10% IRS penalty tax. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest. Product features and availability may vary by state. Contract series ICC10 INT , INT , INT OR, ICC10 NIL and NIL NY and rider series ICC10 IR , IR , IR OR, ICC10 IR , IR , IR OR, ICC10 IR , IR , ICC10 NR , NR NY, ICC10 NR , NR NY, ICC10 NR and NR NY. Tax advantages of VAROOM exist solely through its qualification as an IRA; there is no additional tax advantage or deferral. VAROOM is subject to all laws governing IRAs, including but not limited to, age and contribution limits, early and late IRS withdrawal penalties and required minimum distributions. Integrity and National Integrity do not offer tax advice. Consult an attorney or tax advisor. ETFs similar to the subaccount options in VAROOM may be purchased outside of it, without the fees and benefits associated with an annuity. Investment return and principal value of a variable annuity fluctuates, so redeemed units may be worth more or less than their original cost. ishares is a registered trademark of BlackRock Fund Advisors or its affiliates (BlackRock). Vanguard is a trademark of The Vanguard Group, Inc. An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product and fund prospectuses. For prospectuses containing complete information, visit WSFinancialPartners.com or call (Integrity) or (National Integrity). Please read the prospectuses carefully before investing or sending money. No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company CF BROKER-DEALER USE ONLY

10 VAROOM Rep Fact Sheet VAROOM: Guaranteed Lifetime Withdrawal Benefit Availability and Charges Optional guaranteed lifetime withdrawal benefit (individual or spousal) available for an additional charge Investment strategy determines additional charge; 0.65% or 0.85% (see below for details) Charge based on account value, not Benefit Base Election of benefit can be terminated after the fifth contract year, annually at specified windows Issue Ages (individual) for spousal, younger spouse must be at least 45, older spouse can be no older than 80) Withdrawals Lifetime Withdrawals GLWB Investment Strategies Withdrawal benefit eligibility age = age 60; if owner/spouse is younger than 60 at issue, eligibility will be January 1 after owner (or younger of owner or spouse) turns age 60 Withdrawals, when limited to lifetime payout amount, are guaranteed for life Age-based withdrawal percentage locks in at time of first withdrawal: Age at First Withdrawal Age-Based Percentage 4.0% 4.5% 5.0% 5.5% Withdrawal Percentage = Age-Based Percentage + Cumulative Deferral Percentage + First-Year Deferral Percentage Deferral percentage certainty 0.1% for each complete calendar year with no withdrawals; and no limit on the cumulative number of deferral percentage increases rather than roll-up potential First-year deferral percentage provides one-time pro-rata credit based on number of complete quarters in the year the contract is issued if no withdrawals are taken during the first year Lifetime Payout Amount = Benefit Base x Withdrawal Percentage For spousal version, Lifetime Payout Amount for both spouses is multiplied by spousal factor of 90%, instead of an additional charge Benefit Base is calculated based on premiums paid and investment experience, and nonguaranteed withdrawals (Benefit Base has the potential to step-up annually based on the contract anniversary account value) The amount of the Benefit Base is not available as an account value or death benefit amount Owner must allocate premium to only one of the two GLWB investment strategies and, once selected, cannot change to another investment strategy: o Strategy 1: Basic Allocation Current Charge 0.65% (Max 1.50%) Owner must allocate 100% of premium to one of the three models: Growth, Blend or Value o Strategy 2: Self Style Allocation Current Charge 0.85% (Max 1.50%) Owner may select one or more of the subaccounts in two or more groups, allocations must total 100% and be within the minimum and maximum allocation percentages indicated for each group: Group 1 Core Fixed Income Min. 35%/Max. 65% Group 2 Core Equity Min. 35%/Max. 65% Group 3 Non-Core Fixed Income Min. 0%/Max. 30% Group 4 Non-Core Equity Min. 0%/Max. 30% Group 5 International/ Alternative Min. 0%/Max. 15% For fair and balanced comparisons, know the VAROOM value differences. Point. Click. VAROOM. Drive clients to GoVAROOM.com, or contact the Sales Desk for more information: Broker-Dealers Financial Institutions Independent Agents, Goshen, NY BROKER-DEALER USE ONLY

11 VAROOM Variable Annuity for Roll Over Only Money RISK MANAGEMENT FINANCIAL SOLUTIONS It s Go Time A prospectus must accompany or precede this material. CF Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company

12 It s Go Time Going through a job change? Going into retirement? If so, where will your retirement money go? If it s go time for you and your retirement savings, consider a new vehicle called VAROOM.

13 Are You Ready to VAROOM? What comes to mind when you hear VAROOM? Freedom? Power? Going forward with confidence? How about a variable annuity. A What? That s right. A retirement income product like none you ve seen before. VAROOM like its name is something different. VAROOM stands for Variable Annuity for Roll Over Only Money. It s what s new in retirement income planning. VAROOM is issued by Integrity Life Insurance Company and National Integrity Life Insurance Company, and distributed by Touchstone Securities, Inc. Rollover Money? What s That? Rollover money is the money you ve built in 401(k), 403(b) and similar plans, and IRAs too. And, if you re like most of us, you ve changed jobs over your career. As a result, you may still have several plans with former employers. The same goes for multiple IRAs too. Just sitting there. Why Does It Matter? Isn t that money waiting for you to take the wheel? Imagine having your retirement plans consolidated in one convenient location. One you control. Powerful. And VAROOM is innovative. For investment options, it gives you subaccounts that invest in exchangetraded funds ETFs from two big names in ETFs, ishares and Vanguard. Why are ETFs important? Because cost is important when investing. And diversification is too, although it does not guarantee return or protect against loss. More reasons why VAROOM may be a key part of your long-term plans: It preserves tax advantages ones you re accustomed to in your 401(k), 403(b) and other qualified plans, as well as in your IRAs. It offers retirement income stream options with lifetime guarantees. It provides a death benefit for your loved ones. Learn how this groundbreaking retirement alternative can help get you where you want to go. 1

14 Cost-Effective ETFs Drive This Vehicle Think about driving during rush hour. Some drivers jump from lane to lane trying to beat the traffic, only to discover that sometimes they choose a faster lane and other times a slower one. Other drivers simply go with the flow, sticking with one lane and spending less effort in the process. Traffic is what it is. All lanes go the same direction. Continually changing lanes can be tricky. Well, an index-tracking ETF holds its lane. Considering the historic long-term direction of markets in general, an index ETF doesn t try to beat the market, it simply tries to be the market. ETFs combine features of mutual funds and stocks. Like index mutual funds, ETFs represent diversified portfolios of securities that track specific indexes. Like stocks, they are bought and sold on an exchange. ETF benefits can include portfolio diversification, cost clarity and holdings transparency. And what about operating costs fuel efficiency, maintenance, insurance when you own a car? Relative cost is also a consideration when investing. Research and trading carry expenses, so actively managed funds tend to cost more to run than passively managed ETFs that track an index. Expenses reduce returns. That s why all the ETFs offered through VAROOM subaccounts track market indices. Management fees for the subaccounts range from 0.09% to 0.50%. ishares and Vanguard Know the ETF Road ishares. As the world s leading ETF-solutions provider, ishares offers ETFs across equities, fixed income and alternative asset classes. ishares is a line of business of BlackRock, one of the world s preeminent asset management firms. Vanguard. Vanguard provides an extensive array of investment products, including a full range of low-cost ETFs. Vanguard is one of the largest investment management companies in the world. Plan for Your Retirement Journey A variable annuity can be an excellent retirement planning vehicle, where an insurance company accepts premiums from you and guarantees future income to you. You allocate premiums among underlying investment options and your returns are tied to the performance of those options. There are separate account charges and additional charges for optional benefits. Withdrawals may be subject to charges, and may reduce contract benefits and values. See the product and fund prospectuses for full details. Note: Past performance is not a guarantee of future results. 2

15 VAROOM Designed for money in motion 3

16 A Crossroads You Are Here Deciding what to do with the money you worked hard to save for retirement requires careful thought. Here s what you need to know. VAROOM (Variable Annuity for Roll Over Only Money) is, as its name suggests, designed for money in motion. If you re a retirement saver with qualified retirement plans, such as 401(k)s and 403(b)s and IRAs, VAROOM offers a unique combination of investment options and income benefits for rollovers from those plans. VAROOM is a flexible premium deferred variable annuity (single premium deferred annuity in Oregon). Exclusively for tax-qualified rollovers, it is issued as a traditional IRA, a Roth IRA or a SEP IRA. Tax advantages come solely through your contract s qualification as an IRA, meaning there is no added tax benefit or deferral from VAROOM. Rolling money into VAROOM maintains the tax-favored status of your investment an important benefit for securing your retirement savings progress. Rolling Into VAROOM Requirements for investing in VAROOM include: Initial premium: Minimum $25,000 (you can consolidate multiple premiums) Additional premiums: Minimum $1,000 Total premium: Maximum $1,000,000 (more requires prior company approval) Maximum age: 80 (the owner s age for contract issue and additional premiums) Bringing It Together Consolidating money from IRAs and retirement plans in one place makes tracking them simpler and easier. You can do so with VAROOM. Separate Account Charges An annual charge of 1.90% applies to VAROOM subaccount assets (0.75% M&E; 0.35% administration, 0.80% distribution). The Mortality & Expense Risk charge (M&E) pays the insurance company for assuming mortality risk and expense risk under the contract. The administration charge reimburses us for administrative expenses such as issuing contracts, customer order processing and record maintenance, providing reports, investment costs, providing accounting and valuation services and more. The distribution charge reimburses the insurance company for costs of distribution of VAROOM, including commissions paid to our distributors. We expect to make a profit from the separate account charges. See prospectus for further details on the separate account charges. 4

17 Access Flexibility Access Before Retirement Maintain flexible access to your account value. Up to 10% of your account value (noncumulative and less any required minimum distributions) may be withdrawn each contract year without a withdrawal charge. If you withdraw funds before you turn 59½, you may have to pay a 10% federal tax penalty on your withdrawal and additional income taxes. Declining Withdrawal Charge Withdrawals first come from premiums (oldest to newest), then earnings. The premium-based charge applies to amounts in excess of the annual free withdrawal provision and to the entire premium if you surrender the contract. The charge decreases as follows: Premium Year Thereafter Withdrawal Charge 7% 7% 6% 5% 4% 0% Withdrawal Charges May Not Apply Providing for your retirement is why you own VAROOM. And in fact, you must begin taking withdrawals from traditional IRAs and SEP IRAs by age 70½, according to the tax code. No problem. VAROOM allows free withdrawals of your contract s required minimum distribution (RMD) amount once each contract year, even if it exceeds the 10% free withdrawal provision. In addition, there are no withdrawal charges: If at least one year after the contract date, you use your full account value to purchase an immediate annuity from us with either a life contingency or at least 10 years of payments For withdrawals of the lifetime payout amount provided under the optional Guaranteed Lifetime Withdrawal Benefit When a death benefit is paid 5

18 Investment Flexibility Diverse Subaccount Options Cost-effectiveness and diversification position ETFs as a prudent approach to investing. Because the ETFs offered through the subaccounts in VAROOM track indices passively rather than seeking to outperform them, they generally have lower fees and expenses than actively managed mutual funds. Allocate among a spectrum of asset classes. Each ETF subaccount tracks a particular slice of the market, giving you the power to diversify with ease and lower costs. A Money Market subaccount is available also. Your subaccount options invest in ETFs from ishares and Vanguard. ETFs similar to those offered as underlying investment options in VAROOM are available for direct purchase without the additional fees and benefits of VAROOM. Systematic Transfer Option (STO) When you have a significant sum to invest, do you prefer to invest over time? That way, given there s no knowing where the markets are headed, your money buys more shares if markets go down and fewer shares if markets go up. If investing over time appeals to you, here s how it works. Integrity and National Integrity offer STO periods of either six or 12 months. Choose the one you prefer and receive a guaranteed fixed interest rate while your money is in the STO. Your money then is automatically transferred from the STO to the subaccounts you select. Transfers, in equal installments of $1,000 or more, are monthly from the six-month STO and monthly or quarterly (your choice) from the 12-month STO. The STO is available for new premium only. You can invest in only one STO at one time. Allocation Change your investment allocation instructions as often as every 60 days. Periodic Asset Rebalancing Availability When you buy new tires, the shop makes certain they are balanced. Proper balance is key for ride quality and wear life. Still, over time, road conditions cause tires to gradually go out of balance. Periodic rebalancing returns them to their original setup. Ask your financial professional to discuss how to apply the same concept to your subaccount allocations, to ensure that your assets remain aligned with your investment strategy. Remember, rebalancing does not guarantee return or protect against loss. 6

19 Future Security Protection for Loved Ones As you pursue market opportunities, the VAROOM death benefit guarantees that your named beneficiary will receive the greater of your premiums less a proportional adjustment for withdrawals or your current account value. If the contract is properly structured, death benefit proceeds go directly to your beneficiaries without the delay, expense and publicity of probate. Access at Retirement A comfortable retirement is your desired destination. Anytime after your first contract year, you may take your VAROOM account value as either a lump-sum payout or a series of payouts. The account value must be taken by the owner s 100th birthday. Annuity payout options currently include: Single or joint life income Single or joint life income with a certain period; available periods of 5 30 years Single or joint life income with installment refund Specified term only Death benefit and annuity payout guarantees are backed by the claims-paying ability of the issuing company. Consider the importance of high ratings for financial strength, stability and operating performance from independent insurance rating agencies as you act to secure your future. Looking for an alternative to annuity payouts down the road? Turn the page and check out another option for your journey. 7

20 Another Income Option Guaranteed Lifetime Withdrawal Benefit The Guaranteed Lifetime Withdrawal Benefit is an optional benefit available at issue for an additional charge, provided you (and your covered spouse, if any) are age on the contract date. It can provide guaranteed income for life while still allowing you to maintain a measure of control over the assets in VAROOM. Limit your withdrawals to the benefit s guaranteed amount and that income is protected from market losses. The annual charge is 0.65% with the basic allocation strategy or 0.85% with the self-style allocation strategy (up to 1.50% maximum). The guaranteed withdrawal amount for the spousal benefit (for both spouses) is 90% of that for the individual benefit. As you consider the benefit, limitations to bear in mind include: Only one allocation strategy is permitted and the one you elect remains in effect for as long as you own the benefit Benefit withdrawals can begin January 1 following the 60th birthday of the youngest covered person Nonguaranteed withdrawals (taken before the eligibility date or for more than the eligible amount) reduce the value of the benefit and may even cause it to terminate. Learn more about the confidence that comes with guaranteed income. It s go time for your retirement goals! 8

21 Point. Click. VAROOM. It s Go Time for Many People Who Are Changing Jobs or Retiring Charlie. The Job Changer. Charlie s changed jobs a couple of times, but his retirement goals remain the same. He found VAROOM to be a way to move his retirement monies in the direction he chooses. Rita. The Retiree. Rita s a teacher who s done her homework on moving toward retirement. She learned how VAROOM can be a confident solution for her financial vehicle needs. See his story at GoVAROOM.com. See her story at GoVAROOM.com. GoVAROOM.com features product details, ETF information, fund company profiles and more. Visit GoVAROOM.com today and get going on your retirement rollover journey. GoVAROOM.com

22 Western & Southern: Our Strength. Your Future. Built on a heritage dating to 1888, Western & Southern Financial Group (Western & Southern) today stands strong. As a dynamic family of diversified financial services providers, Western & Southern has demonstrated resolve and resiliency throughout challenging economic cycles. We are a Fortune 500 company (FORTUNE magazine, May 2011). Our financial strength continues to be the cornerstone of our success. We are proud of our top-tier industry ratings, which you can check at WSFinancialPartners.com/ratings. Western & Southern remains committed to helping safeguard your future well-being with our strength, stability and full range of risk management financial solutions. VAROOM is issued and guaranteed by Integrity Life Insurance Company, Cincinnati, OH, and National Integrity Life Insurance Company, Goshen, NY, and is distributed by Touchstone Securities, Inc,* all members of Western & Southern Financial Group. Payment of benefits under the annuity contract is the obligation of, and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claims-paying ability of the insurer. There is no guarantee of the investment performance or safety of the variable investment options. Integrity operates in DC and all states except ME, NH, NY and VT where National Integrity operates. W&S Financial Group Distributors is an affiliated agency of the issuers, which have sole financial responsibility for their products. Variable annuities are suited for long-term investing. Earnings and pre-tax payments are subject to income tax at withdrawal. Withdrawals prior to age 59½ are generally subject to a 10% IRS penalty tax. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest. Product approval, availability and features may vary by state. See your financial professional for details and limitations. For use with contract series ICC10 INT , INT , INT OR, ICC10 NIL and NIL NY and rider series ICC10 IR , IR , IR OR, ICC10 IR , IR , IR OR, ICC10 IR , IR , ICC10 NR , NR NY, ICC10 NR , NR NY, ICC10 NR and NR NY. VAROOM is subject to all laws governing IRAs, including, but not limited to, age and contributions limits, early and late IRS withdrawal penalties and required minimum distributions. Integrity and National Integrity do not offer tax advice. For specific tax information, consult your attorney or tax advisor. Investment return and principal value of an investment in a variable annuity will fluctuate, so units, when redeemed, may be worth more or less than their original cost. ishares is a registered trademark of BlackRock Institutional Trust Company, N.A. (BlackRock). BlackRock is a registered trademark of BlackRock, Inc. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. BlackRock s only relationship to Integrity and National Integrity is the licensing of certain trademarks and trade names of BlackRock. Integrity and National Integrity variable annuities are not sponsored, endorsed, sold or promoted by BlackRock. BlackRock makes no representations or warranties to the owners of Integrity and National Integrity variable annuities or any member of the public regarding the advisability of investing in Integrity and National Integrity variable annuities or the ishares Funds. BlackRock has no obligation or liability in connection with the operation, marketing, sales or trading of Integrity and National Integrity s variable annuities. Vanguard and the ship logo are trademarks of The Vanguard Group, Inc. An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product and fund prospectuses. For prospectuses containing complete information, visit WSFinancialPartners.com or call (Integrity) or (National Integrity). Please read the prospectuses carefully before investing or sending money. * A registered broker-dealer and member FINRA/SIPC. No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 2012 Western & Southern Financial Group. All rights reserved. GoVAROOM.com

23 Guaranteed Lifetime Withdrawal Benefit VAROOM (Variable Annuity for Roll Over Only Money) RISK MANAGEMENT FINANCIAL SOLUTIONS It s Go Time A prospectus must accompany or precede this material. CF Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company

24 It s Go Time Going into retirement? Going to a new employer? If it s go time for your retirement plan, consider the VAROOM Guaranteed Lifetime Withdrawal Benefit.

25 Get Rolling with Lifetime Income There s More to VAROOM You re considering VAROOM because you have retirement plan assets ready to roll over to something new. Money you ve built in 401(k), 403(b) and similar plans, and IRAs too, can come together in VAROOM a Variable Annuity for Roll Over Only Money. VAROOM is a flexible premium deferred variable annuity issued by Integrity Life Insurance Company and National Integrity Life Insurance Company and offered by Touchstone Securities, Inc. Now take a closer look at what can help make VAROOM go. Just as cars offer added safety and power options for an additional charge, VAROOM offers an added confidence option for an additional charge. Don t Get Stuck Running out of gas on a long trip is bad. Far worse is running out of money for retirement. Imagine what would happen if your retirement savings hit E. Ask any retiree. Few concerns are more stressful. Equity values can move dramatically. And investment volatility as you near and enter retirement can be especially hazardous, because you are losing time as well as money. It s like watching your gas gauge drop. Together, market losses and income withdrawals can guzzle your financial security. Retirement Income Guaranteed Buy VAROOM s optional Guaranteed Lifetime Withdrawal Benefit for an additional charge as a rider and secure a source of predictable, sustainable income for life. GLWB rider available at issue for an additional charge (ages 45 80). You can begin annual withdrawals of the benefit amount within 12 months of the 60 th birthday of the youngest covered person. Relax in retirement knowing the benefit will not end due to market losses or guaranteed withdrawals. As you pursue a balance between seeking to grow assets and wanting to safeguard income for your retirement journey, the Guaranteed Lifetime Withdrawal Benefit combines: Age-based percentage locked in at your first withdrawal Deferral percentage added for each calendar year without withdrawals Lifetime income if withdrawals are limited to the guaranteed amount 1

26 Why You Buy A Lifetime of Income The advantage of the Guaranteed Lifetime Withdrawal Benefit comes when market forces or guaranteed withdrawals exhaust your VAROOM account value. If your account value hits zero, the guarantee provided by Integrity or National Integrity will take over and continue to provide a lifetime of income. Consider your income sources, risk tolerance and projected spending needs from a long-term perspective. Ask yourself: Am I concerned market losses will reduce my retirement income? What would I do if I ran out of money in retirement? Can I forecast my future income needs and commit to a course of action? Before You Buy To provide you the ability to take withdrawals for life, various limits and conditions apply to the Guaranteed Lifetime Withdrawal Benefit. They include limits on how you invest, and on when and how much you withdraw. This brochure highlights important details of the features, restrictions, costs and operation of this variable annuity optional benefit. Understand the information here, and in the VAROOM product and fund prospectuses before you buy. Plan for Your Retirement Journey A variable annuity can be an excellent retirement planning vehicle, where an insurance company accepts premiums from you and guarantees future income to you. You allocate premiums among a variety of underlying investment options and your returns are tied to the performance of those options. There are separate account charges and additional charges for optional benefits. Withdrawals may be subject to charges, and may reduce contract benefits and values. See the product and fund prospectuses for full details. 2

27 Ready... Set... VAROOM How the Guaranteed Lifetime Withdrawal Benefit Works The benefit provides you with an income stream you cannot outlive even as you maintain a degree of flexibility in how you invest your premiums and when you take your guaranteed withdrawals. What is the Lifetime Payout Amount (LPA)? The Guaranteed Lifetime Withdrawal Benefit provides a lifetime payout amount. That s the amount we guarantee will be available for withdrawal each calendar year for your lifetime (or for as long as either you or your covered spouse is alive, if you elect the spousal benefit). LPA withdrawals not taken in a calendar year are noncumulative. That is, they are not available in the future. And LPA withdrawals must be taken pro-rata from your VAROOM investment options. It s important to understand that receiving the intended advantage of the Guaranteed Lifetime Withdrawal Benefit requires limiting your annual withdrawals to the LPA. Withdrawals before you are eligible, or for more than the LPA, are not guaranteed. Such nonguaranteed withdrawals will reduce future LPA withdrawals and you may incur withdrawal charges also. But What If My Account Value Hits Empty? That s when the Guaranteed Lifetime Withdrawal Benefit protects you. If your VAROOM account value is reduced to zero and you ve limited your withdrawals to the LPA, the benefit enters its guaranteed payment phase. The company continues paying the LPA as long as you live (or as long as either you or your covered spouse is alive, with the spousal benefit). And charges are no longer deducted for the benefit. Limiting your withdrawals to the LPA is key. Otherwise, if a nonguaranteed withdrawal exhausts the account value, the benefit ends. 3

28 Ready... Set... VAROOM When Can I Have the LPA? For the individual benefit, the LPA eligibility date (date you can begin taking the LPA) is the earlier of: January 1 after the calendar year in which you turn age 60, or The contract date (the date the company issues the contract) if you are age 60 or older For the spousal benefit, the LPA eligibility date is the earlier of: January 1 after the calendar year in which the younger of you or your covered spouse turns age 60, or The contract date if the younger of you or your covered spouse is age 60 or older If you re eligible to take your LPA immediately, the amount available in the first calendar year will be pro rated for the remainder of that year. What Determines My LPA? Your LPA is your withdrawal percentage multiplied by your benefit base. Both are detailed below. Your LPA is calculated each January 1 on or after your LPA eligibility date. Withdrawal Percentage x Benefit Base = Individual LPA The spousal benefit has a reduced LPA (for both spouses) instead of a higher cost. The LPA is multiplied by a 90% spousal factor. Withdrawal Percentage x Benefit Base x 90% = Spousal LPA What Determines My Withdrawal Percentage? Two factors add up to form your withdrawal percentage: Age-based percentage Deferral percentage Patience may pay as both may increase if you delay withdrawals. Still, the ultimate purpose of the Guaranteed Lifetime Withdrawal Benefit is to provide an income stream. If you do not plan to take withdrawals, you should not buy this benefit. If you do plan to take withdrawals, read on for details. 4

29 Age-Based Percentage Steps Up Your age at your first withdrawal of your LPA locks in your age-based percentage. If you have the spousal benefit, the percentage is determined by the younger of you or your covered spouse. Withdrawal Percentage May Reward Your Patience Age-Based Percentage Locks at First LPA Withdrawal 4% 4.5% 5% 5.5% Ages Deferral Percentage Adds Up Your deferral percentage begins at zero and increases by 0.1% for each complete calendar year without a withdrawal. The years need not be consecutive and the potential increases are not limited. Say, for example, you buy VAROOM and wait five and a half years before taking a withdrawal. Assume you take withdrawals for two years, and then wait another full five calendar years before resuming withdrawals. Your cumulative deferral percentage would grow to 1.0% (10 calendar years without a withdrawal x 0.1%). Time May Boost Your Withdrawal Percentage Deferral Percentage Adds 0.1% to Age-Based Percentage Each Complete Calendar Year without a Withdrawal +2.50% +2.00% +0.50% +1.00% +1.50% Years

30 Ready... Set... VAROOM First-Year Deferral Percentage This may add to your withdrawal percentage, provided you take no withdrawals in the calendar year of your contract date. It varies based on your contract date. Contract Date First-Year Deferral Percentage January 1 March % April 1 June % July 1 September % October 1 December % For Example: Adding Up the Withdrawal Percentage Say an owner buys the benefit on her 59th birthday (in May of that year, to be exact) and waits until her 70th birthday to take any withdrawals. The withdrawal percentage would total: 5.00% (withdrawals begun at age 70) Age-Based Percentage % (10 complete calendar years without withdrawals) Cumulative Deferral Percentage % (bought in second quarter of year) First-Year Deferral Percentage 6.05% Withdrawal Percentage What Determines My Benefit Base? Initially, the benefit base equals your contract s initial premium. The benefit base then can: Increase by additional premiums received the first contract year Decrease due to nonguaranteed withdrawals (see the caution on page 10) Increase due to an automatic step-up opportunity to capture potential market gains on each contract anniversary; if on your contract anniversary your account value exceeds your benefit base, your benefit base steps up to equal the account value More about the Benefit Base Your benefit base can step up even after you begin taking LPA withdrawals Market declines alone never reduce your benefit base Changes in the benefit base will change the LPA on the following January 1 The benefit base itself is not available for withdrawal and not payable as a death benefit 6

31 Good Directions Guide your rollover to a place with growth opportunities and lifetime protection 7

32 Ready... Set... VAROOM Growth Potential and Withdrawal Protection for Your Retirement Income Retirement income from the Guaranteed Lifetime Withdrawal Benefit: Can t decline solely due to market losses Can t run out due to guaranteed withdrawals Can increase even after guaranteed withdrawals begin Can continue as long as either of two spouses is alive Consider the following benefit base scenarios under two different conditions. Withdrawal Protection during Declining Markets The sequence of market experience matters greatly. A sharp decline early in retirement, or a prolonged downturn, can impact retirement preparedness. Your benefit base helps protect against such consequences. (Note, that your benefit charge is based on your account value, not your benefit base. If your account value decreases, then your benefit charge decreases as well.) A Benefit Base (Income basis) B Account Value (Charge basis) Purchase Point. You purchase VAROOM with the Guaranteed Lifetime Withdrawal Benefit. Your benefit base is used to determine your lifetime payout amount. At issue, your benefit base equals your contract s initial premium. A B Income Point. When you begin taking guaranteed withdrawals, your withdrawal percentage multiplied by your benefit base is your lifetime payout amount. If you own the spousal benefit, then multiply by 90% for your lifetime payout amount. 8

33 Growth Potential during Volatile Markets Over the long term, if markets advance, contract anniversaries provide an opportunity for your benefit base to increase. All else held equal, a higher benefit base produces a higher lifetime payout amount. (What a higher benefit base does not itself produce is a higher benefit charge. Your benefit charge is based on your account value, not your benefit base.) D B C A Benefit Base (Income basis) Account Value (Charge basis) Contract Anniversary Contract Anniversary Contract Anniversary A B C D Purchase Point. You purchase VAROOM with the Guaranteed Lifetime Withdrawal Benefit. Your benefit base is used to determine your lifetime payout amount. At issue, your benefit base equals your contract s initial premium. Benefit Base Increase. Each contract anniversary, if your account value exceeds your benefit base, your benefit base steps up to equal the account value. If not, the death benefit stays the same. Income Point. No Benefit Base Increase. When you begin taking guaranteed withdrawals, your withdrawal percentage multiplied by your benefit base is your lifetime payout amount. If you own the spousal benefit, then multiply by 90% for your lifetime payout amount. Benefit Base Increase. Your benefit base can step up even after you begin taking withdrawals of your lifetime payout amount. 9

34 Ready... Set... VAROOM A Caution Light on Nonguaranteed Withdrawals You (or the younger of you or your covered spouse if this is a spousal benefit) must wait until at least January 1 following the calendar year you turn age 60 to withdraw the LPA. Withdrawals taken sooner, or for more than the LPA, are not guaranteed. They reduce your benefit base perhaps significantly and may incur withdrawal charges. And if a nonguaranteed withdrawal reduces the account value to zero, the benefit will terminate. Caution is advised because a nonguaranteed withdrawal immediately reduces your benefit base by the adjusted nonguaranteed withdrawal amount. That amount is the nonguaranteed withdrawal (including any withdrawal charges) multiplied by the greater of 1.0 or the benefit base divided by the account value. Keep in mind, if the VAROOM contract is at a point where the benefit base exceeds the account value, the benefit base will be reduced by more than the nonguaranteed withdrawal. For example, assume a nonguaranteed withdrawal is taken and no withdrawal charges apply. If the account value is $75,000 and the benefit base is $100,000, a $5,000 nonguaranteed withdrawal would: Reduce the account value by $5,000 to $70,000 o $75,000 - $5,000 = $70,000 Reduce the benefit base by $6,667 to $93,333 o $100,000/$75,000 = o $5,000 x = $6,667 o $100,000 - $6,667 = $93,333 Carefully consider the impact of nonguaranteed withdrawals in order to receive the intended benefit. Take only guaranteed withdrawals as intended and you need not be concerned with this. Required Minimum Distributions? No Problem If your VAROOM contract is established as a traditional IRA or a SEP IRA, you may be required to withdraw money in order to satisfy IRS minimum distribution requirements after you reach age 70½. We will calculate the required minimum distribution (RMD) for your VAROOM contract. You may take the greater of your LPA or your RMD each calendar year. Please note, if you own the spousal benefit and your spouse is more than 10 years younger than you, any withdrawal used to satisfy your RMD may result in a nonguaranteed withdrawal. 10

35 Cost-Effective ETFs Drive This Vehicle Investment Strategies: Your Choice of Two Roads When you buy the Guaranteed Lifetime Withdrawal Benefit, you allocate your premium to one of two investment strategies Basic Allocation or Self Style Allocation employing cost-effective index-tracking ETF (exchange-traded fund) subaccount options from ishares and Vanguard. ETFs available through VAROOM have annual expenses that range from 0.09% to 0.50%. The strategy you select will remain in effect for as long as you own the benefit Implement your strategy immediately or do so via a six-month or 12-month Systematic Transfer Option Your account value will automatically rebalance to your allocation percentages each contract quarter Your charge for the benefit will vary with the strategy you select Turn the page for a look at the investment strategies and their allocation options. ishares and Vanguard Know the ETF Road ishares. As the world s leading ETF-solutions provider, ishares offers ETFs across equities, fixed income and alternative asset classes. ishares is a line of business of BlackRock, one of the world s preeminent asset management firms. Vanguard. Vanguard provides an extensive array of investment products, including a full range of low-cost ETFs. Vanguard is one of the largest investment management companies in the world. Investment Allocation Maps Your Course Need help determining your investment direction? A strategic asset allocation service from Ibbotson Associates, Inc. comes at no added cost. A questionnaire first helps identify the mix of asset categories that pursues your desired balance of growth potential and return stability. Then, using the subaccounts available in VAROOM, Ibbotson provides asset allocation model portfolios for various investor profiles Ibbotson Associates, Inc. Used with permission. All rights reserved. Ibbotson is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. 11

36 Cost-Effective ETFs Drive This Vehicle Strategy 1: Basic Allocation Allocate your premium to one of three models. If you wish to change direction, you can reallocate among Strategy 1 models. Such lane changes require a 60-day waiting period between reallocations. Basic Allocation Options Model 1 - Growth Model 2 - Blend Model 3 - Value ishares S&P 500 Index Fund 30% 40% 30% ishares S&P 500 Growth Index Fund 10% ishares S&P 500 Value Index Fund 10% ishares S&P MidCap 400 Index Fund 1 10% 10% 10% ishares S&P SmallCap 600 Index Fund 1 5% 5% 5% Vanguard Tax-Managed International Fund, MSCI EAFE, ETF Shares 2 5% 5% 5% Vanguard Total Bond Market Index Fund, ETF Shares 3 35% 35% 35% ishares S&P/Citigroup International Treasury Bond Fund 2,3 5% 5% 5% Please see page 14 for additional considerations. VAROOM s GLWB offers you two investment strategies 12

37 Strategy 2: Self Style Allocation Take the wheel by allocating your premium among groups and subaccounts. Your allocations must total 100% and be within the minimum and maximum allocation percentages indicated for each group. If you wish to change direction, you can reallocate within Strategy 2. Just observe the minimums and maximums and allow for a 60-day waiting period between reallocations. Self Style Allocation Options Group 1 Core Fixed Income Minimum 35% Maximum 65% Group 2 Core Equity Minimum 35% Maximum 65% Group 3 Non-Core Fixed Income Minimum 0% Maximum 30% Group 4 Non-Core Equity Minimum 0% Maximum 30% Group 5 International/ Alternative Minimum 0% Maximum 15% ishares Barclays ishares S&P 500 Aggregate Bond Fund 3 Index Fund ishares Barclays ishares S&P 500 TIPS Bond Fund 3 Growth Index Fund ishares S&P/Citigroup International Treasury Bond Fund 2,3 ishares Barclays Intermediate Credit Bond Fund 3 Vanguard Dividend Appreciation Index Fund, ETF Shares ishares iboxx $ High Yield Corporate Bond Fund 3,4 ishares S&P 500 Value Index Fund Vanguard Emerging Markets Stock Index Fund, ETF Shares 2,5 Vanguard Total Bond Market Index Fund, ETF Shares 3 Vanguard Large-Cap Index Fund, ETF Shares Vanguard Intermediate-Term Corporate Bond Index Fund, ETF Shares 3 Vanguard Short-Term Bond Index Fund, ETF Shares 3 Vanguard REIT ishares S&P MidCap Index Fund, 400 Index Fund 1 ETF Shares 1,6,7 ishares S&P SmallCap 600 Index Fund 1 Vanguard Tax- Managed International Fund, MSCI EAFE ETF Shares 2 Vanguard Variable Insurance Fund Money Market Portfolio* Vanguard Mega Cap 300 Index Fund, ETF Shares Please turn the page for additional considerations. ETFs similar to those offered as underlying investment options in VAROOM are available for direct purchase without the additional fees and benefits of VAROOM. * An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. 13

38 Before You Invest Risks to Consider When considering subaccount options for VAROOM, please keep in mind that the risks below represent the principal risks associated with investing in the Guaranteed Lifetime Withdrawal Benefit investment strategies. For a complete discussion of risk, please read the VAROOM product and fund prospectuses. 1 Small/Mid Cap small- to mid-sized company stocks tend to be more volatile and can be less liquid than stocks of large companies. Small companies tend to have shorter operating histories and may have less experienced management. 2 International portfolios that invest internationally involve risks not associated with investing solely in the United States, such as currency fluctuation, political risk, differences in accounting and the limited availability of information. International investments may exhibit greater volatility of returns in the short term. 3 Bond fixed income portfolios are subject to credit, inflation and interest rate risks. Generally, when interest rates rise, bond prices fall. Bonds with longer maturities may be more sensitive to interest rate risks. 4 High Yield portfolios that invest in securities rated below investment grade (or junk bonds ) may be sensitive to economic changes, political changes or adverse developments specific to a company or sector. Issuers of non-investment-grade securities are more likely to be unable to make timely payments of interest or principal, particularly during an economic downturn or recession. 5 Emerging Markets portfolios exposed to emerging markets may be subject to international risks, abrupt or erratic market movement involving greater risks and potential reward than investments in other companies and the stock market in general. 6 Nondiversified portfolios that invest in a limited number of securities may involve greater risk and more price volatility than portfolios that do not limit the number of securities in which they invest. 7 Real Estate portfolios that focus on real estate investing are sensitive to economic and business cycles, changing demographic patterns and government actions, as well as risks related to the organization and operation of Real Estate Investment Trusts (REITs). 14

39 The Cost of Confidence Buying the Benefit The benefit is available only at the time you purchase VAROOM You (and your covered spouse, if any) must be age on the contract date to buy the benefit The additional annual charge differs by investment strategy and applies daily to the account value in your subaccounts: o The charge is 0.65% for the basic allocation and 0.85% for the self style allocation o We reserve the right to increase the charge up to a maximum of 1.50%; you will receive prior written notice and an opportunity to cancel the benefit at that time Tax advantages come solely through your contract s qualification as an IRA, meaning there is no added tax benefit or deferral from VAROOM. Owning the Spousal Benefit You cannot switch from an individual benefit to a spousal benefit or vice versa You cannot add or switch a spouse as a covered person If your marriage ends, your spouse is automatically removed as a covered person o The LPA eligibility date will continue to be based on the younger spouse o The spousal factor of 90% will continue to apply to the LPA Ending the Benefit Beginning on the fifth contract anniversary, you may cancel the benefit during the first 45 days of each contract year. The benefit charge then stops and the benefit cannot be reinstated. Otherwise, the benefit terminates (and cannot be reinstated) on the earliest of the following: The (last) covered person dies An annuity option is elected on or before contract maturity at age 100 The account value equals zero due to a nonguaranteed withdrawal The benefit is assigned The contract terminates 15

40 VAROOM for the Long Haul Confidence Down the Road You may own your VAROOM contract and depend on your Guaranteed Lifetime Withdrawal Benefit for decades. Confidence comes with knowing that contractual promises will be fulfilled for periods extending up to a lifetime. Benefit guarantees are backed by the claims-paying ability of Integrity or National Integrity. Consider the importance of high ratings for financial strength, stability and operating performance from independent rating agencies as you act to secure your future. It s go time for many people. How about you? GoVAROOM.com 16

41 Visit GoVAROOM.com Get going on your retirement rollover journey

42 Western & Southern: Our Strength. Your Future. Built on a heritage dating to 1888, Western & Southern Financial Group (Western & Southern) today stands strong. As a dynamic family of diversified financial services providers, Western & Southern has demonstrated resolve and resiliency throughout challenging economic cycles. We are a Fortune 500 company (FORTUNE magazine, May 2011). Our financial strength continues to be the cornerstone of our success. We are proud of our top-tier industry ratings, which you can check at WSFinancialPartners.com/ratings. Western & Southern remains committed to helping safeguard your future well-being with our strength, stability and full range of risk management financial solutions. Ibbotson Associates, Inc. is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Ibbotson is not acting as an investment advisor to individuals. Ibbotson and Morningstar are not affiliated with Western & Southern Financial Group and its affiliates. VAROOM is issued and guaranteed by Integrity Life Insurance Company, Cincinnati, OH, and National Integrity Life Insurance Company, Goshen, NY. Payment of benefits under the annuity contract is the obligation of, and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claims-paying ability of the insurer. Integrity operates in DC and all states except ME, NH, NY and VT where National Integrity operates. W&S Financial Group Distributors is an affiliated agency of the issuer. Issuer has sole financial responsibility for its products. Variable annuities are suited for long-term investing. Earnings and pre-tax payments are subject to income tax at withdrawal. Withdrawals prior to age 59½ are generally subject to a 10% IRS penalty tax. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest. Product approval, availability and features may vary by state. See your financial professional for details and limitations. Contract series ICC10 INT , INT , INT OR, ICC10 NIL and NIL NY and rider series ICC10 IR , IR , IR OR, ICC10 IR , IR , IR OR, ICC10 IR , IR , ICC10 NR , NR NY, ICC10 NR , NR NY, ICC10 NR and NR NY. VAROOM is subject to all laws governing IRAs, including, but not limited to, age and contributions limits, early and late IRS withdrawal penalties and required minimum distributions. Integrity and National Integrity do not offer tax advice. For specific tax information, consult your attorney or tax advisor. ishares is a registered trademark of BlackRock Fund Advisors or its affiliates (BlackRock). BlackRock is a registered trademark of BlackRock, Inc. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. BlackRock s only relationship to Integrity and National Integrity is the licensing of certain trademarks and trade names of BlackRock. Integrity and National Integrity variable annuities are not sponsored, endorsed, sold or promoted by BlackRock. BlackRock makes no representations or warranties to the owners of Integrity and National Integrity variable annuities or any member of the public regarding the advisability of investing in Integrity and National Integrity variable annuities or the ishares Funds. BlackRock has no obligation or liability in connection with the operation, marketing, sale or trading of Integrity and National Integrity s variable annuities. Vanguard and the ship logo are trademarks of The Vanguard Group, Inc. There is no guarantee of the investment performance or safety of the variable investment options of a variable annuity. Securities offered by Touchstone Securities, Inc.,* Cincinnati, Ohio. Investment return and principal value of an investment in a variable annuity will fluctuate, so units, when redeemed may be worth more or less than their original cost. An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product and fund prospectuses. For prospectuses containing complete information, visit WSFinancialPartners.com or call (Integrity) or (National Integrity). Please read the prospectuses carefully before investing or sending money. * A registered broker-dealer and member FINRA/SIPC. No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 2012 Western & Southern Financial Group. All rights reserved. GoVAROOM.com

43 VAROOM Investment Options Cost-Effective ETFs Drive This Vehicle Your investment options in VAROOM, a Variable Annuity for Roll Over Only Money issued by Integrity Life Insurance Company and National Integrity Life Insurance Company and offered by Touchstone Securities, Inc., include ETFs (Exchange-Traded Funds) offered through subaccounts and a non-etf Money Market subaccount. The subaccounts invest in ETFs from ishares and Vanguard. A pioneer of the ETF marketplace, ishares is the world s leading ETF-solutions provider. Vanguard, among the world s largest investment managers, is a leader in offering low-cost ETFs. Cost-effectiveness and diversification position ETFs as a prudent approach to investing. Because the ETFs offered through the subaccounts in VAROOM track indices passively, these ETFs generally have lower expenses and fees than actively managed mutual funds and give you the ability to diversify with ease. ETFs similar to those offered as underlying investment options in VAROOM are available for direct purchase without the additional fees and benefits of VAROOM. Diversification neither assures a profit nor eliminates the risk of loss. ETF Subaccounts Equity Fixed Income International & Alternative ishares S&P 500 Index Fund ishares S&P 500 Growth Index Fund ishares S&P 500 Value Index Fund ishares S&P MidCap 400 Index Fund ishares S&P SmallCap 600 Index Fund Vanguard Dividend Appreciation Index Fund, ETF Shares Vanguard Large-Cap Index Fund, ETF Shares Vanguard Mega Cap 300 Index Fund, ETF Shares ishares Barclays Aggregate Bond Fund ishares Barclays Intermediate Credit Bond Fund ishares Barclays TIPS Bond Fund ishares iboxx $ High Yield Corporate Bond Fund Vanguard Intermediate-Term Corporate Bond Index Fund, ETF Shares Vanguard Short-Term Bond Index Fund, ETF Shares Vanguard Total Bond Market Index Fund, ETF Shares ishares S&P/Citigroup International Treasury Bond Fund Vanguard Emerging Markets Stock Index Fund, ETF Shares Vanguard Tax-Managed International Fund, MSCI EAFE ETF Shares 1 Vanguard REIT Index Fund, ETF Shares Non-ETF Subaccount Vanguard Variable Insurance Fund Money Market Portfolio Guaranteed Interest Rate Options (Fixed Accounts) Availability 6- or 12-month Systematic Transfer Options (continued) Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company CF

44 What is an Exchange-Traded Fund (ETF)? 1 An exchange-traded fund (ETF) is an investment fund that combines features of traditional mutual funds and individual stocks. Like index mutual funds, ETFs represent diversified portfolios of securities that track specific indices. Like stocks, they can be bought and sold on an exchange. ETF benefits can include portfolio diversification, and cost and holdings transparency. ETFs available through VAROOM have annual expenses that range from 0.09% to 0.50%. How the ETFs in VAROOM Differ From Their Retail Counterparts The ETFs available through the VAROOM subaccounts contain the same underlying holdings as their retail ETF counterparts, although some of the features differ because the VAROOM ETFs are offered within a variable annuity. While intraday trading is not applicable to VAROOM subaccounts, the benefits of cost efficiency and portfolio diversification remain. Diversification neither assures a profit nor eliminates the risk of loss. Investment returns provided for specific retail ETFs will not be the same as the returns on the VAROOM subaccounts that invest in those ETFs due to additional insurance company expenses. Additional expenses for insurance benefits will affect your annuity contract values and the returns on your investment. For subaccount returns, refer only to the performance information about the VAROOM variable annuity provided by Integrity and National Integrity. Keep in mind, the tax advantages of VAROOM exist solely through its qualification as an IRA, and will be subject to all laws governing IRAs, including, but not limited to, age and contribution limits, early and late IRS withdrawal penalties and required minimum distributions. Your clients receive no additional tax advantage or deferral for the annuity. 1 Source: ishares. Note: Indices are unmanaged statistical composites of stock market or bond performance. Investing directly in an index is not possible. VAROOM, a flexible premium deferred variable annuity for tax-qualified rollover assets, is issued and guaranteed by Integrity Life Insurance Company, Cincinnati, OH, and National Integrity Life Insurance Company, Goshen, NY. Integrity operates in DC and all states except ME, NH, NY and VT where National Integrity operates. W&S Financial Group Distributors is an affiliated agency of the issuer. Issuer has sole financial responsibility for its products. All are members of Western & Southern Financial Group. Payment of benefits under the annuity contract is the obligation of, and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claims-paying ability of the insurer. Integrity and National Integrity do not offer tax advice. For specific tax information, consult your attorney or tax advisor. Variable annuities are suited for long-term investing. Earnings and pre-tax payments are subject to income tax at withdrawal. Withdrawals prior to age 59½ are generally subject to a 10% IRS penalty tax. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest. Product approval, availability and features may vary by state. See your financial professional for details and limitations. Contract series ICC10 INT , INT , INT OR, ICC10 NIL and NIL NY and rider series ICC10 IR , IR , IR OR, ICC10 IR , IR , IR OR, ICC10 IR , IR , ICC10 NR , NR NY, ICC10 NR , NR NY, ICC10 NR and NR NY. ishares is a registered trademark of BlackRock Fund Advisors or its affiliates (BlackRock). All other trademarks, servicemarks or registered trademarks are the property of their respective owners. BlackRock s only relationship to Integrity and National Integrity is the licensing of certain trademarks and trade names of BlackRock. Integrity and National Integrity variable annuities are not sponsored, endorsed, sold or promoted by BlackRock. BlackRock makes no representations or warranties to the owners of Integrity and National Integrity variable annuities or any member of the public regarding the advisability of investing in Integrity and National Integrity variable annuities or the ishares Funds. BlackRock has no obligation or liability in connection with the operation, marketing, sale or trading of Integrity and National Integrity s variable annuities. Vanguard and the ship logo are trademarks of The Vanguard Group, Inc. There is no guarantee of the investment performance or safety of the variable investment options of a variable annuity. Securities offered by Touchstone Securities, Inc.,* Cincinnati, Ohio. Investment return and principal value of an investment in a variable annuity will fluctuate, so units, when redeemed may be worth more or less than their original cost. An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product and fund prospectuses. For prospectuses containing complete information, visit WSFinancialPartners.com or call (Integrity) or (National Integrity). Please read the prospectuses carefully before investing or sending money. * A registered broker-dealer and member FINRA/SIPC. No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 2012 Western & Southern Financial Group. All rights reserved.

45 Guaranteed Lifetime Income Advantage (GLIA) Get to Know Our GLWB s Age-Based Features & Benefits The Integrity and National Integrity guaranteed lifetime withdrawal benefit, GLIA, guarantees lifetime withdrawals regardless of investment performance, provided the contract remains in effect and withdrawals do not exceed the amount available under the benefit. Charges & Fees Issue Age Availability Contribution Age-Based Features Investment Options Additional annual charge of 0.90% for individual or 1.15% for spousal (1.20% and 1.60% maximum, respectively) of the payment base (older annuitant); for National Integrity spousal. Must be elected at time of variable annuity purchase. AdvantEdge (L-Share type), AnnuiChoice (B-Share type), Pinnacle (B-Share type) A variable annuity is a long-term financial vehicle designed for retirement purposes. An insurance company accepts premiums and provides future income or a lump sum to the contract owner by contractual agreement. Contract limitations, fees and charges include, but are not limited to, mortality and risk expense charges, administrative fees, sales and surrender charges, and additional fees for optional benefits. Withdrawals also may be subject to charges, and may reduce annuity contract benefits and values. $25,000 initial; $1,000 subsequent Age-based withdrawal percentage of payment base: Percentage increases at certain ages and locks in at age of first withdrawal. Age of (Younger) Annuitant Annual Withdrawal % % % % % 80 or older 6.5% Age-based bonus percentage credited to bonus base in first 10 contract years when no withdrawals are taken: Percentage increases at certain ages based on client s age at time of calculation up to 6.5% at 80 or older. Bonus (applied to bonus base) = bonus % x net contributions. Age of (Younger) Annuitant When Bonus Is Calculated Bonus % 64 or younger 4.0% % % % 80 or older 6.5% Strategies designed to suit individual needs and styles: Self style allocations from a broad menu of more than 50 variable investment options, including alternative investment options Lifestyle investing via select Touchstone VST Exchange-Traded Fund (ETF) Portfolios using ishares funds Lifecycle investing via select Fidelity VIP Freedom Fund Portfolios (continued) A prospectus must accompany or precede this material. 1 Spousal GLWB not available in NH Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company CF BROKER-DEALER USE ONLY

46 Investment Options (continued) Guaranteed Withdrawals Nonguaranteed Withdrawals Termination Asset allocation models from Ibbotson (all six are compatible with GLIA). Flexibility: Transfers and allocation changes are permitted once every 90 days. Automatic rebalancing occurs quarterly. Annual withdrawals of the lifetime payout amount will not decrease the bonus and step-up bases. Lifetime payout amounts not withdrawn in a contract year are noncumulative. If any guaranteed withdrawal reduces the account value to $0, the benefit enters its guaranteed payment phase. Must be taken pro rata among all investment options. Withdrawals taken before the age 60 contract anniversary. Withdrawals taken in excess of the lifetime payout amount. Reduce the payment base by at least the amount of the excess withdrawal(s). Exception: withdrawals for required minimum distributions. Taken on or after the age 60 contract anniversary reduce or eliminate the lifetime payout amount. Must be taken pro rata among all investment options. The rider can be cancelled only on or during the 45 days after each contract anniversary, beginning with the fifth contract anniversary. Rider terminates upon the earliest of the following: Death of the (last) annuitant Annuity benefit elected under the contract Payment base equaling $0 Account value reducing to $0 before the age 60 contract anniversary or anytime due to nonguaranteed withdrawals Contract termination Contract ownership transfer Assignment of contract Rider cancellation Once terminated, the rider cannot be reinstated. Contact the Sales Desk for more information: Broker-Dealers Financial Institutions Independent Agents Goshen, New York Payment of benefits under the annuity contract is the obligation of, and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claims-paying ability of the insurer. There is no guarantee of the investment performance or safety of the variable investment options in this variable annuity. Variable annuities are issued and guaranteed by Integrity Life Insurance Company, Cincinnati, OH, and National Integrity Life Insurance Company, Goshen, NY, and are offered by Touchstone Securities, Inc.,* Cincinnati, OH. Integrity operates in DC and all states except ME, NH, NY and VT, where National Integrity operates. W&S Financial Group Distributors is an affiliated agency of the issuer. Issuer has sole financial responsibility for its products. All are members of Western & Southern Financial Group. Investment return and principal value of an investment in a variable annuity will fluctuate, so units, when redeemed, may be worth more or less than their original cost. Product and feature availability, as well as benefit provisions, may vary by state. See your financial professional for details and limitations. Contract series INT96 Rev., INT96 FRL, INT94, INT I, INT 07-04, INT I, INT I, INT 07-07, INT , IR , IR SP, IR , IR SP, NIL95, NIL NY Cert, NIL SP NY Cert, NIL NY Cert, NIL , NIL GM NY Cert, NIL GM SP NY Cert, and rider series NR , NR SP, NR NY Cert, NR SP NY Cert, NR , NR SP, NR NY Cert, NR SP NY Cert. An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product prospectus and fund prospectus. For prospectuses containing complete information, call or visit WSFinancialPartners.com. Please have clients read the prospectuses carefully before investing or sending money. * A registered broker-dealer and member FINRA/SIPC. No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 2012 Western & Southern Financial Group. All rights reserved. BROKER-DEALER USE ONLY

47 Investment Options: Variable Annuities Portfolio Listing by Company BlackRock Variable Series Funds Capital Appreciation Global Allocation Columbia Funds Variable Portfolio Mid Cap Value Opportunity Small Cap Value Fund DWS Investments VIT Fund Small Cap Index Fidelity Variable Insurance Products Trust Asset Manager SM Balanced Contrafund Disciplined Small Cap Equity-Income Freedom 2010 Freedom 2015 Freedom 2020 Freedom 2025 Freedom 2030 Growth High Income Index 500 Investment Grade Bond Mid Cap Overseas Franklin Templeton VIP Trust Franklin Growth and Income Securities Franklin Income Securities Franklin Large Cap Growth Securities Franklin Small Cap Value Securities Mutual Shares Securities Templeton Foreign Securities Templeton Growth Securities (continued) Invesco Van Kampen Variable Insurance Funds American Franchise Comstock Mid Cap Value* Invesco Variable Insurance Funds International Growth Fund Morgan Stanley UIF 2 Emerging Markets Debt Emerging Markets Equity U.S. Real Estate PIMCO Variable Insurance Trust All Asset CommodityRealReturn Strategy Low Duration Real Return Total Return Rydex Variable Trust Guggenheim VT Managed Futures Strategy Guggenheim VT U.S. Long Short Momentum Touchstone Variable Series Trust Baron Small Cap Growth Core Bond High Yield Large Cap Core Equity Mid Cap Growth Money Market Third Avenue Value Conservative ETF 1 Moderate ETF 1 Aggressive ETF 1 Enhanced ETF 1 1 Exchange Traded Fund (ETF). Touchstone ETF Funds comprise varied ishares from BlackRock Fund Advisors or its affiliates (BlackRock). For more information, refer to the Touchstone ETF Funds brochure. 2 UIF refers to the Universal Institutional Fund. Universal Institutional Funds portfolios are managed by Morgan Stanley Investment Management Inc. * Fund name changes to Invesco Van Kampen V.I. American Value Fund on 7/15/12. CF Issuers: Integrity Life Insurance Company National Integrity Life Insurance Company