Transition to a lifetime of financial security.

Transcription

1 A Variable Annuity Guide for Individuals Transition to a lifetime of financial security. MassMutual Transitions Select SM variable annuity

2 Financial security starts with good decisions Your future financial security is based on making a series of good decisions. Working with a financial professional to create a sound strategy is one of those good decisions. Another is choosing a company that offers a long history of financial strength and stability. Contents 1 Risks that may impact your retirement 4 MassMutual Transitions Select SM variable annuity 6 Accumulation 14 Income protection 15 MassMutual Lifetime Income Protector SM MassMutual: The strength of a good decision. It s important to work with a company that will be there to honor its commitments. Founded in 1851, MassMutual (Massachusetts Mutual Life Insurance Company) is a mutually owned financial protection, accumulation and income management company with a long history of exceptional financial strength and growth. Our mutual company structure enables us to manage with the long-term interests of our customers in mind. 19 Beneficiary protection NOT FDIC/NCUA INSURED NOT INSURED BY ANY GOVERNMENT AGENCY NO BANK/CREDIT UNION GUARANTEE MAY LOSE VALUE NOT A BANK/CREDIT UNION DEPOSIT OR OTHER OBLIGATION

3 Recognize risks that may impact your retirement A sound plan has to address not only the kind of lifestyle you want, but the risks you may face and the protection you may need. It has to be flexible enough to meet your changing needs and must work in both good markets and bad. When thinking about your retirement plan, you should keep these key financial risks in mind. Longevity risk is the possibility of outliving retirement assets. People are living longer, which means a longer period of time to stretch retirement assets. People are living longer Inflation risk is a reduction in purchasing power over time. At a minimum, retirement income needs to keep pace with inflation to help maintain your standard of living. Cost of health care has risen dramatically in recent years, sometimes even exceeding the rate of inflation. This may become a significant challenge during the later years of retirement. Average Annual Growth in Prescription Drug Prices From 2000 to 2009 Prescription Drugs % Probability 100% 80% 60% 40% 20% 0% Probability of 65-year-olds living to various ages. age 85 age 90 age 95 Couple (either) Inflation % Market risk is the potential of losing money on an investment. Investment losses leave less assets to live on during retirement. Excess withdrawals risk is drawing down accumulated assets too quickly which could result in running out of money. Addressing these retirement risks prior to retirement can help you look ahead to your future with confidence. A variable annuity may play an important role. Source: Annuity 2000 Mortality Table, Society of Actuaries 1 Kaiser Family Foundation analysis of Consumer Price Index, All Urban Consumers, U.S. City Average, not seasonally adjusted http// home.html accessed April 28, Average Annual Inflation by Decade, Inflation Data.com; updated 6/2/2011 1

4 Look ahead to your retirement with confidence Retirement should be a time to look forward to and not something to be uneasy about. Being prepared helps you feel more secure about your future. Consider adding a variable annuity as part of your long-term retirement strategy. Specifically designed to help accumulate and protect assets as well as provide future income, a variable deferred annuity offers you: Accumulation Potential Tax-deferral Investment earnings accumulate taxdeferred until they are withdrawn. 3, 4 The Power of Tax-Deferral Tax-deferral allows money to grow faster because taxes are deferred on earnings until they are distributed. With a taxable investment, taxes are paid on earnings each year, leaving less money to benefit from investment earnings. See the difference a visual image of the impact of compounding Hypothetical growth of $100,000 at a gross 8% return annually for 25 years $800,000 $600,000 $400,000 $200,000 0 $684,848 $521,090 Tax deferred: Before tax After tax $405,542 Taxable Professionally managed investments A broad range of investments spanning various asset classes and investment styles are available and managed by experienced investment managers. Lifetime Income Annuity payments Can help eliminate the risk of outliving your assets. Annuity payments range from payments for life to payments for a specific period of time. Protection Benefits Living benefits Provide some level of guaranteed asset or income protection during your life, usually for an additional charge. Death benefits Guarantee that your beneficiaries will receive annuity assets upon your death. Guarantees are based on the claims-paying ability of the issuing company and do not apply to the investment performance or the safety of amounts held in the variable investments. This hypothetical chart is intended to illustrate the advantage of tax-deferral and not the actual performance of a specific product or its investment options. It assumes a 28% federal income tax rate, assessed annually on the Taxable investment and on the lump sum distributed at the end of 25-years on the Tax deferred after tax investment. Note: Lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the investments shown. Please consider your personal investment horizon and income tax brackets, both current and anticipated, when making an investment decision. MassMutual Transitions Select variable annuity has total annualized current separate account charges of 1.15% (maximum 1.95%) and a standard contingent deferred sales charge of 7%, decreasing to 0% in the eighth year. These charges were not included; if they had been, performance would be lower. 3 Variable annuities do not provide any additional tax advantages when used to fund a qualified plan. Investors should consider buying a variable annuity to fund a qualified plan for the annuity s additional features, such as lifetime income payments and death benefit protection. 4 Taxable withdrawals are subject to ordinary income tax and, if made prior to age 59½, may be subject to a 10% federal income tax. 2

5 Addressing retirement risks with a variable annuity There are certain risks in retirement that could make even the best retirement plan not attainable. Some features of a variable annuity can help offset or minimize the impact of these challenges. Addressing retirement risks with a variable annuity Risks Variable annuity features and benefits Longevity Lifetime annuity payments offer you the ability to turn your contract value into an income stream that is guaranteed to last for life. Inflation Equity-based investment choices equities (stocks) may provide the growth potential to outpace inflation. Market Asset allocation funds and programs Asset allocation funds provide diversification by investing in other underlying funds. Asset allocation programs allow an investor to create a diversified portfolio and to pick the investment choices. Both methods allow investors to pick the asset allocation that meets their time horizon and risk tolerance. Asset allocation neither assures a profit nor protects against a loss in declining markets. Excessive withdrawals Annuity payments Excess withdrawals can adversely impact contract value and other benefits. Guarantees are based on the claims-paying ability of the issuing company and do not apply to the investment performance or the safety of amounts held in the variable investment options. 3

6 MassMutual Transitions Select SM variable annuity Designed to build wealth and transition assets to retirement income MassMutual Transitions Select helps you accumulate assets while providing an easy way to transition into the income phase of retirement with the ability to create guaranteed income for life. As part of your total retirement income strategy, MassMutual Transitions Select offers you a flexible and personal investment offering three ways to take income and beneficiary protection. When you are ready, it allows you to structure your own retirement income. MassMutual Transitions Select offers some useful features to help you prepare and feel confident about your retirement: Professional investment management A broad range of investments and approaches Access to your money Three ways to receive regular income Protection benefits Transition to a lifetime of financial security. Like one season transitioning to another, a MassMutual Transitions Select variable annuity contract helps you transition from accumulating assets to taking income. The contract provides protection benefits through the different phases. Accumulation Income Protection Benefits 4

7 Accumulation

8 Accumulation A broad range of investments and approaches Having alternatives allows you to choose an investment strategy that you re most comfortable with. You can develop your investment strategy using one of the three investment approaches. Please see our investment guide, Investing Wisely for Retirement (AN7690), for more information about the investments and programs available with MassMutual Transitions Select. MassMutual Transitions Select offers some of the most recognizable names in investment management today. In addition to a broad range of investments, it offers three investment approaches that allow you to choose a strategy that is best suited to meet your financial objectives. Three investment approaches Create your own investment mix: Breadth, choice and flexibility Select your own investments Access to a broad range of investments spanning various asset classes and investment styles Optional: automatic rebalancing to move back to your selected allocation Asset allocation programs: One of these programs must be chosen if you elect an optional living benefit. MML Allocation Funds Simple asset allocation Six allocation funds (may not be available with a living benefit) Range from conservative to aggressive All invest in diversified portfolios of underlying funds Custom Allocation Choice Select Diversification with guidelines Available if electing a living benefit Maintain a disciplined asset allocation Choose your own investments according to the parameters of the program Automatic rebalancing back to selected allocation 6

9 Accumulation protection Guaranteed Minimum Accumulation Benefit (GMAB) The GMAB guarantees your contract value at the end of a benefit period will be no less than the premium payments made during the first two contract years (adjusted for withdrawals), regardless of investment performance. Two benefit periods are offered: a 10-year benefit period with a reset option and a 20-year benefit period (26 years in New York). 20-Year GMAB This benefit period ends upon the 20th contract anniversary (26th anniversary in New York). It guarantees that the contract value at the end of the period will be no less than double the amount of the purchase payments made during the first two years, adjusted for withdrawals. The 20-year GMAB does not include a reset option. Maximum age for issue: 79 (age 63 in New York) 10-Year GMAB with Reset Option This benefit period initially ends upon the 10th contract anniversary, although a reset can be requested. If a reset is not requested and the contract value is less than the GMAB value at the end of the benefit period, MassMutual will credit the difference to your contract. Resets Lock in Investment Gains A reset can be requested on the second contract anniversary and any anniversary thereafter, until the end of the benefit period. If the contract value is greater than the GMAB value, the GMAB value will be increased to the higher amount and a new 10-year benefit period will begin. Maximum age for issue: 89 (age 79 in New York) Maximum age for reset: 89 (age 79 in New York) 7

10 Principal protection and the potential to lock in gains Hypothetical Example 10-Year GMAB with Reset Option 10 Years After Last Reset GMAB Value waiting period This hypothetical example is for illustrative purposes only and is meant to show how this feature works. It is not intended to predict or project investment results. The 10-year Guaranteed Minimum Accumulation Benefit (GMAB) helps you protect your investment from loss during the annuity s accumulation phase as long as you remain invested in an asset allocation fund/program and don t cancel the feature prior to the end of the benefit period. The above graphic visually depicts how this feature works. Beginning on the contract s second anniversary and throughout the benefit period, you can reset the benefit to lock in any potential investment gains. Each time a reset is requested, a new 10-year benefit period will begin. As you can see in the hypothetical example, the GMAB was reset four times to lock in investment gains. The final reset was requested on the fifth contract anniversary (age 55), which extended the benefit period 10 more years. At the end of the final 10-year benefit period, MassMutual will credit the contract value so it will equal the higher GMAB value. 8

11 Double principal protection Hypothetical Example 20-Year GMAB GMAB Value Positive Annual Return Contract Value (Positive Performance) Negative Annual Return Contract Value (Negative Performance) Initial Investment GMAB Value: Double the Initial Investment 1 Years 20 This hypothetical example is for illustrative purposes only and is meant to show how this feature works. It is not intended to predict or project investment results. The 20-year GMAB also helps protect your investment from loss during the annuity s accumulation phase as long as you remain invested in an asset allocation program and don t cancel the feature prior to the end of the benefit period. The GMAB benefit period in New York is 26 years. 1 In the case of a positive return, you would receive the contract value because it s greater than the GMAB value. 2 In the case of a negative return, the contract value would be brought up to the GMAB value. The above graphic visually depicts how this feature works. The example shows both positive and negative long-term performance for a 20-year period. At the end of the 20 years (benefit period), this contract would be valued at the higher of the contract value or double the purchase payments made during the first two years, adjusted for withdrawals (GMAB value). 9

12 Guaranteed Minimum Accumulation Benefit Feature Details This optional feature is available for an additional charge. 10-Year Guaranteed Minimum Accumulation Benefit (GMAB) Charges 5 : Current / Maximum 0.95% / 1.00% 20-Year Guaranteed Minimum Accumulation Benefit (GMAB) Charges 5 : Current / Maximum 0.95% / 1.00% The GMAB cannot be elected without purchasing a variable annuity contract. The feature may not be appropriate for investors who do not foresee a need for additional principal protection. Please make sure the variable annuity contract is suitable for your investment goals before you elect this optional feature. The GMAB can only be elected at contract issue and may be cancelled at any time. Once cancelled, it cannot be re-elected. If you elect this feature, you must participate in an asset allocation program. This feature does not in any way guarantee the performance of any of the investment choices available under the contract. To receive the GMAB value, you cannot cancel the feature or enter the income phase until the end of the benefit period. Purchase payments made after the second contract year could increase the cost of the GMAB without a corresponding increase in the benefits. For all benefit periods, the adjustment for withdrawals is calculated as follows: The withdrawal amount, including any applicable charges is divided by your contract value immediately prior to the withdrawal. The result is multiplied by the most recently calculated GMAB value. Key Terms Benefit Period The amount of time you have to wait to get the GMAB value. Guaranteed Minimum Accumulation Benefit (GMAB) An optional feature that guarantees the contract value will be no less than a specified amount (GMAB value) at the end of a benefit period. GMAB Value The total of all purchase payments made during the first two contract years, adjusted for withdrawals. GMAB Value at Reset The GMAB value is increased to the amount of the contract value, provided the contract value is greater at the time of reset. The new value will be adjusted for any subsequent withdrawals during the balance of the benefit period. Guarantees are based on the claims-paying ability of the issuing company and do not apply to the investment performance or the safety of amounts held in the variable investment options. 5 Charges for GMAB are applied as follows: Year one, deducted as payments are received as a percentage of purchase payments. On the first contract anniversary and each anniversary thereafter, deducted as a percentage of contract value. 10

13 Access to money when needed There may come a time when you need to access money in your contract to help meet certain financial needs. There are standard and optional provisions within the contract that give you access to your money. 6 CDSC-free withdrawals: 10% Free Withdrawal Provision (standard feature) Up to 10% of your purchase payments in year one can be withdrawn without incurring a contingent deferred sales charge (CDSC). In year two and after, you can withdraw up to 10% of the contract value as of the end of the previous contract year, plus 10% of purchase payments received in the current contract year (reduced by any free withdrawals previously taken). 10% / 20% Free Withdrawal Provision (optional feature) Up to 10% of your purchase payments in year one can be withdrawn without incurring a contingent deferred sales charge (CDSC). In year two and after, you can withdraw up to 20% of the contract value as of the end of the previous contract year, plus 20% of purchase payments received in the current contract year (reduced by any free withdrawals previously taken). An additional charge applies: 7 Current 0.25%, Maximum 0.35% Nursing Home Waiver Benefit (optional feature) If we receive written confirmation that you have been admitted to a licensed nursing facility, you can withdraw all or a portion of your contract value without incurring a contingent deferred sales charge. (This benefit is subject to state availability. Please refer to the prospectus for additional restrictions.) An additional charge applies: 7 Current 0.05%, Maximum 0.10% Withdrawals that exceed the free withdrawal provision: Depending on the surrender charge period you elect, you will be charged a percentage of the amount withdrawn that exceeds the free withdrawal amount. The percentage is determined by the length of time between when your contract was issued and when you make your withdrawal. After contract year 7, you will no longer be subject to a charge with the contract s standard CDSC. 7-year Contingent Deferred Sales Charge (CDSC) (standard feature) Years CDSC 7% 7% 7% 6% 5% 4% 3% 0% 9-year Contingent Deferred Sales Charge (optional feature) Expect to hold on to your annuity for 10 years or more? Lengthen the period of your CDSC and get a 0.10% credit at the end of the contract year while the contingent deferred sales charge is in effect. A credit is applied: 0.10% Years CDSC 8% 8% 7% 6% 5% 4% 3% 2% 1% 0% Note: Prior to electing an optional feature, be sure you understand how taking withdrawals will impact the feature you elect. Free withdrawals taken prior to an income eligibility date for MassMutual Lifetime Income Protector will be treated as excess withdrawals. Refer to the prospectus for details. 6 Taxable withdrawals are subject to ordinary income tax and, if made prior to age 59½, may be subject to a 10% federal income tax 7 Year 1: charge deducted as payments are received as a percentage of purchase payment. On the first contract anniversary and each contract anniversary thereafter: charge deducted as a percentage of contract value. 11

14 Income

15 Receive an income stream There are three basic ways to receive a regular income stream from MassMutual Transitions Select variable annuity. Income is available through systematic withdrawals, annuity payments or MassMutual Lifetime Income Protector 8. Each feature or program offers different advantages for different people. The chart below highlights those advantages. You have the flexibility to choose what works best for you. Three ways to receive regular income payments Maximum Income Potential Guaranteed Income for Life Liquidity Maximum Flexibility Favorable Tax Treatment Ability to Grow Contract Value Systematic Withdrawal Program (SWP) Annuity Payments MassMutual Lifetime Income Protector 9 Systematic withdrawal program (SWP) If you prefer to take withdrawals on an ongoing basis, you can request the income be provided through a systematic withdrawal program. You can: Receive income monthly, quarterly, semi-annually or annually ($100 minimum). Start, stop, increase or decrease the withdrawals at any time. Receive withdrawals up to what s specified by your free withdrawal feature to avoid contingent deferred sales charges. A systematic withdrawal program is the most flexible way to take income and have access to your money. While you can control your income by withdrawing an amount up to the free withdrawal amount, there is no guarantee that you will have enough contract value to continue withdrawals over your lifetime. Note: A different systematic withdrawal program is used if you elect the MassMutual Lifetime Income Protector feature 9. Please refer to the prospectus for more information. 8 Taxable withdrawals are subject to ordinary income tax and, if made prior to age 59½, may be subject to a 10% federal income tax. 9 This is an optional rider offered for an additional charge. 13

16 Income protection Annuity payments Annuity payments offer you the ability to turn your contract value into a guaranteed income stream for life or for a specific period of time. This selection of annuity payment options allows you to choose a method that suits your needs. Annuity payments generally offer the most income potential because they use a concept called risk pooling where investors money is pooled together and can be used to pay guaranteed income for life. While annuity payments offer more potential income and tax advantages, they are generally less flexible and do not offer complete access to your money like other income choices available. Basic annuity payment options Life annuity Provides guaranteed income payments for as long as a person (annuitant) lives. Joint and last survivor annuity Provides guaranteed income payments for as long as either of two people (joint annuitants) lives. Period-certain only Provides guaranteed income payments for a specified period of time and beneficiary protection. If the annuitant dies prior to the end of the period, the beneficiary receives the value of the remaining income. A period ranges from 5 years to 30 years. Other benefits of annuity payments Favorable Tax Treatment annuity payments will include a portion of your after-tax investment (cost basis) until this amount has been recovered. Payment Frequency you can choose to receive payments monthly, quarterly, semi-annually or annually. Fixed Payments you can choose steady payments that do not increase or decrease; or Variable Payments you may choose payments that increase or decrease with investment performance, but offer the growth potential to outpace inflation. Life or joint life with period certain Provides guaranteed income payments for life (annuitant) or joint lives (joint annuitants) and beneficiary protection. If the annuitant dies prior to the end of the period, the beneficiary receives the value of the remaining income. A period ranges from 5 years to 20 years. 14

17 MassMutual Lifetime Income Protector SM MassMutual Lifetime Income Protector guarantees to pay an annual income amount for as long as you live (single life) or for as long as you or your spouse live (joint life). Your annual income amount is equal to your income percentage multiplied by the contract value calculated on each contract anniversary. It will never be less than your guaranteed income floor amount. Your annual income amount will be paid through a systematic withdrawal program and can begin on or after your income eligibility date, which is the later of the: Fifth contract anniversary; and Contract anniversary after you (or the youngest spouse if joint life) attain age 60 Once a withdrawal is taken on or after your income eligibility date, your lifetime income will begin and it cannot be stopped. Guaranteed income floor Your guaranteed income floor is the minimum annual income amount you re guaranteed to be able to withdraw for life. It s equal to your income percentage multiplied by your income base. Your income base is initially equal to your purchase payments while your income percentage is based on your age or the age of the youngest person at the time of the first withdrawal. Your guaranteed income floor will not decrease, unless you take withdrawals prior to your income eligibility date or exceed your annual income amount. These are considered excess withdrawals. Adverse impact of excess withdrawals Any withdrawal regardless of required minimum distributions (RMD) prior to eligibility date is considered an excess withdrawal. Excess withdrawals, will reduce your income base in direct proportion to the contract value reduction for the excess withdrawal and they may be subject to contingent deferred sales charges (CDSC). A reduction in your income base will also reduce your guaranteed income floor. Request a prospectus from your registered representative for details and examples on the adverse impact of excess withdrawals. Taxable withdrawals are subject to income tax and, if taken prior to age 59½, a federal income tax penalty may apply. Rising income potential If your contract value increases in a given year, your annual income amount will increase for that year too. Your annual income amount is equal to your income percentage multiplied by the contract value on your contract anniversary, but it will never be less than your guaranteed income floor. Your annual income amount can also increase based on your age. Your income percentage will automatically increase in any year your age falls within the next age range and your contract anniversary value, less purchase payments made after your second contract anniversary, is greater than your income base. Example: Determining Annual Income Amount Assume you wanted to start your lifetime income (single life) at age 60. Your income percent would be 4%. Your payment would be the greater of the Annual Income Amount or your Guaranteed Income Floor. In this example, your payment would be $24,000. Single Life Joint Life Age Income Percent Income Percent % 3.50% % 4.00% % 4.50% % 5.00% % 5.50% 85 and above 6.50% 6.00% Contract Value Income % Annual (Age 60) Income Amount $600,000 x 4.0% = $24,000 Income Base Income % Guaranteed (Initial Purchase Payment) (Age 60) Income Floor $500,000 x 4.0% = $20,000 This hypothetical example is for illustrative purposes and is not representative of the performance of any MassMutual product. 15

18 Guaranteed lifetime income, even during a market decline MassMutual Lifetime Income Protector helps take the anxiety out of retiring in a down market because it provides steady, guaranteed income for life even if your contract value drops to zero. You may begin receiving your annual income amount on or after your income eligibility date. Your annual income amount will never be less than your guaranteed income floor, unless you take an excess withdrawal. Your guaranteed income floor is equal to your income percentage multiplied by your income base. Assuming you were age 60 in this example, you would receive an annual income amount of $20,000 ($500,000 x 4%) for life, even though your contract value dropped to zero. Contracts that have zero contract value and still have a guaranteed income floor after a withdrawal will enter the settlement phase. The settlement phase allows you to receive your guaranteed income floor for life. However, other contract rights, including death benefits and the right to make additional purchase payments, will terminate. The charge for this feature will also terminate. Guarantees are based on the claims-paying ability of the issuing company and do not apply to the investment performance or the safety of amounts held in the variable investment options. Withdrawals are subject to ordinary income tax and, if taken prior to age 59½, a federal income tax penalty may apply. Guaranteed Lifetime Income Even if your contract value drops to zero $500,000 Contract Value Income Base Guaranteed Income Floor Income Base x Income % $500,000 x 4% = $20,000 Guaranteed Lifetime Income $20,000 per year $ Assumption: Single life, assumes withdrawals of annual income beginning at age 60 and no excess withdrawals throughout the life of the contract. This hypothetical example is for illustrative purposes and is not representative of the performance of any MassMutual product. 16

19 Rising income potential over your lifetime MassMutual Lifetime Income Protector also allows you to benefit from rising markets. In years where your contract value increases, your income will increase with it. Rising income is an important feature that may help you outpace inflation and allow you to enjoy retirement to its fullest. Your annual income amount is equal to your income percentage multiplied by your contract value on the contract anniversary. So your annual income amount will fluctuate with your contract value, but it will never be less than your guaranteed income floor. When your contract value rises, so does your annual income amount. Your annual income amount will also rise when your income percentage increases. The income percentage automatically increases in any year your age (single life) falls within the next age range and your contract anniversary value, less purchase payments made after your second contract anniversary, is greater than your income base. Your income rises when your contract value rises Annual Income Amount Guaranteed Income Floor Guaranteed Lifetime Income Guaranteed Income Floor Income base x Income % $500,000 x 4% = $20,000 You will receive the annual income amount in years your contract value is calculated to be greater than your income base. Age 60 If your calculated contract value is greater than your income base in any year after your age falls within the next age range, your income % will increase. Annual Income Amount Contract Value x Income % $600,000 x 4% = $24,000 $500,000 x 4.5% = $22,500 Age 65 $600,000 x 4.5% = $27,000 Assumption: Single life. This hypothetical example is for illustrative purposes and is not representative of the performance of any MassMutual product. 17

20 MassMutual Lifetime Income Protector SM Feature details You should not elect MassMutual Lifetime Income Protector if you have a need to take withdrawals, including required minimum distributions, before the income eligibility date or you anticipate taking withdrawals in excess of defined withdrawal amounts. These actions will have an adverse impact on the feature and could cause it to terminate. The feature may not be available in all states and may work differently in certain states. This optional feature is available for an additional charge. MassMutual Lifetime Income Protector: Current: 0.95% Maximum: 1.95%. Annualized charge deducted from contract value. Charge assessed as a percentage of the Income Base at quarter-end. Once elected, the feature cannot be cancelled. MassMutual offers an annual income amount for the life of one covered person (single life) or the lives of two covered persons (joint life) who are spouses. To elect the feature the youngest spouse (covered person) must be under age 76. Changes to the contract owner(s), or annuitant(s) if the owner is a non-natural person (i.e. a trust), may terminate MassMutual Lifetime Income Protector. Minimum initial purchase payment for a contract with the feature: $25,000. MassMutual reserves the right to limit total purchase payments after the first contract year to $100,000. Additional purchase payments after the second contract year will not increase the value of the guarantees provided by this feature. Maximum income base: $5 million Withdrawals for required minimum distributions (RMD) using our automatic distribution program will not reduce the income base after the income eligibility date. All withdrawals will reduce the contract value and the contract owner s death benefit. Excess withdrawals will reduce the purchase payment portion of the death benefit proportionately. Withdrawals on or after the income eligibility date equal to the annual income amount will reduce it dollar-for-dollar. Excess withdrawals will reduce your income base in direct proportion to the contract value reduction for the excess withdrawals. Once a withdrawal is taken on or after your income eligibility date, your lifetime income will begin and it cannot be stopped. You must participate in an approved asset allocation program. This feature can t be elected with any of MassMutual s other living benefits or the annual ratchet death benefit. Important Considerations This contract offers a free withdrawal provision that allows you to withdraw a percentage of your contract value each year without incurring a contingent deferred sales charge. You must weigh the additional cost of MassMutual Lifetime Income Protector against the benefits provided by this optional feature. This optional feature cannot be elected without purchasing a variable annuity. It may not be appropriate for investors who do not foresee a need for lifetime income and whose primary focus is tax deferral. Please make sure the variable annuity contract is suitable for your investment goals before electing this feature. Election of this feature does not in any way guarantee the performance of any of the investment choices available under this contract. 18

21 Beneficiary protection MassMutual Transitions Select helps protect your beneficiaries with a guaranteed death benefit. You have the flexibility to select your death benefit, your beneficiaries and the way in which the death benefit will be paid. Beneficiary protection during the accumulation phase Basic Death Benefit (standard feature) You can elect this option at any time before you turn age 76. It guarantees your beneficiaries will receive the greater of: the contract value, or purchase payments adjusted for withdrawals and/or any charges Contract Value Death Benefit (optional feature) If you want to have the contract value paid to your beneficiaries upon death in exchange for a credit to your contract, you can elect this feature. A credit is applied: Current 0.05%, Minimum 0.02% Annual Ratchet Death Benefit (optional feature) If you want to lock in potential contract gains and have them paid to your beneficiaries upon death, you may want to elect this feature. Your beneficiaries will receive the greater of: the contract value, or purchase payments adjusted for withdrawals and/or any charges, or the annual ratchet feature amount (which is the highest contract anniversary value prior to age 80) An additional charge applies. Charges: Current 0.40%, Maximum 0.90% Spousal continuance Upon the death of the owner, a surviving spouse who is named the primary beneficiary may elect to continue the contract at the death benefit amount and exercise all of the contract owner s rights. A spouse also has the options to request a lump-sum payment or apply the death benefit amount to an annuity payment. You can choose the level of beneficiary protection you desire Contract Value Annual Ratchet Death Basic Death Benefit Hypothetical example is for illustrative purposes and is not representative of the performance of any MassMutual product. 19

22 MassMutual Transitions Select SM Fast Facts Issuing Company Massachusetts Mutual Life Insurance Company in all states Issue Age (Owner/Annuitant) Minimum: None Maximum: 90, In New York and Oklahoma: 85 (Maximum age may be limited by Broker Dealer) Age Definition All age references within the contract are based on insurance age and determined using the following calculation: Age = 6 months prior to and after the stated age. Ex: 89 yrs., 6 mo., 1 day ^ Age 90 _ 90 yrs., 6 mo. Investment Minimum Initial Investment: $3,000 (qualified), $5,000 (non-qualified) Initial investment on contracts with the Lifetime Income Protector feature elected: $25,000 (qualified and non-qualified) Subsequent Purchase Payments: You can make additional purchase payments to your contract. However, additional payments in an amount less than $250 are subject to our approval. Earliest Annuitization Currently, 5 years after issue (13 months in New York) Annual Contract Maintenance Fee Current: $40 per year Maximum: $60 per year Deducted at the end of each contract year; waived when the contract value reaches $100,000 Total Separate Account Charges Current: 1.15% Maximum: 1.95% 20 Total Separate Account Charges (continued) Deducted each business day from the assets of the separate account. Charge is equal to the percentage shown on an annual basis of the daily value of the assets invested in each fund, after fund expenses are deducted. Standard Contingent Deferred Sales Charges (CDSC) (Non-Rolling) Years Standard CDSC: 7% 7% 7% 6% 5% 4% 3% 0% Assessed on the amount withdrawn that exceeds the free withdrawal amount and the amount you apply to an annuity option. Exceptions apply; please refer to the product prospectus. Non-rolling means the CDSC is based on the contract year of the withdrawal, not each purchase payment. Credits 9-Year Contingent Deferred Sales Charge (Non-Rolling) Optional 0.10% Credit Years year CDSC: 8% 8% 7% 6% 5% 4% 3% 2% 1% 0% This feature must be elected at contract issue. Credit based on contract value as of the end of the contract year. Credited as of the day just prior to anniversary date while the contingent deferred sales charge schedule is in effect. Case Size Credit (available based on eligibility) 0.05% annual credit for an average contract value between $250,000 and less than $1 million 0.10% annual credit for an average contract value of $1 million or more

23 MassMutual Transitions Select variable annuity provides a practical solution to help accumulate assets and transition those assets to retirement income. Contact a MassMutual financial professional who can help you review your individual circumstances. There is no time better than the present to get ready for the future!

24 This material does not constitute a recommendation to engage in or refrain from a particular course of action. The information within has not been tailored for any individual. The information provided is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Before purchasing MassMutual Transitions Select, you should carefully consider the investment objectives, risks, charges and expenses of the variable annuity. For this and other information, obtain the MassMutual Transition Select prospectus from your registered representative. Please read the prospectus carefully before investing or sending money. You may also obtain the prospectuses (or summary prospectuses, if available) for the annuity s underlying investment choices from your registered representative. The product, certain features and/or investment choices may not be available in all states. MassMutual Transitions Select SM [Contract form # TMLS (TMLS (NC) in North Carolina)] is a variable annuity contract issued by Massachusetts Mutual Life Insurance Company, MA Variable annuities are offered through registered representatives of MML Investors Services, LLC, Springfield, MA or a broker-dealer that has a selling agreement with MML Strategic Distributors, LLC, Springfield, MA Principal Underwriters: MML Investors Services, LLC and MML Strategic Distributors, LLC, subsidiaries of Massachusetts Mutual Life Insurance Company, Springfield, MA Massachusetts Mutual Life Insurance Company, Springfield, MA All rights reserved. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. AN CRN