GREAT-WEST CAPITAL CHOICE

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1 GREAT-WEST CAPITAL CHOICE Index-Linked Annuity Take greater control of your financial future Any guarantees are subject to the terms and conditions of the contract and the claims-paying ability of the insurer. TM

2 More flexibility for greater possibilities As you near retirement, it s natural to place more value on protecting what you have earned. But that doesn t mean you have to choose between investing for growth and protecting your assets. The Great-West Capital Choice Index-Linked Annuity (Capital Choice) can help you TM strike the right balance with investment growth potential with measures of protection so you can feel confident about your financial future. Capital Choice also provides significant flexibility to adjust your investment and protection strategies annually, if needed. Index-linked annuities are long-term, tax-deferred investments designed for accumulation. They have contract fees, involve investment risks associated with the underlying indices and may lose value. Earnings are taxable as ordinary income when distributed. Withdrawals in excess of the free amount, or full surrender of the contract, may be subject to withdrawal or surrender charges and may apply a market value (or similar) adjustment that may increase or decrease the amount an investor will receive. Withdrawals made prior to age 59½ may be subject to a 10% additional tax. 1

3 INVEST for growth When it comes to your portfolio, having options is good. That s why with Capital Choice you can diversify as you see fit across domestic and international index-linked investment options. Keep more of what you earn with tax-deferred savings. Market gains credit annually up to a cap. 2 Benefits include: Competitive cap rates. Maximum issue age of 90. Return of premium death benefit. Nursing home and terminal illness waivers. 1 PROTECT your money Capital Choice offers you two distinct protection option features, the floor 3 and the buffer. 4 The floor and buffer work in different ways to help lessen the impact of potential losses on your investment. Required minimum distribution (RMD)-friendly withdrawals. ADJUST as needed We know the markets can change. We also know your personal situation or goals can change. That s why Capital Choice gives you the freedom to select, combine and update your linkedindex investment options and measures of protection every year on your contract anniversary. 5 2

4 Invest Choose your linked-index options Capital Choice enables you to choose one or more well-known linked-index options so you can participate in tax-deferred growth up to your cap. LINKED-INDEX OPTIONS S&P 500 Index 6 Domestic large-cap Russell 2000 Index 7 Domestic small-cap NASDAQ-100 Index 8 Large-cap non-financial DESCRIPTION The S&P 500 Price Return Index (S&P 500) is generally considered the benchmark for the U.S. stock market and broader economy; it includes 500 large-cap American stocks. The Russell 2000 Price Return Index (Russell 2000) is a broadly diversified index that includes 2,000 small-cap stocks listed on American stock markets. The NASDAQ-100 Price Return Index (NASDAQ-100) is an international index of market sectors that includes technology, biotechnology and healthcare but excludes financial companies. MSCI EAFE Index 9 International The MSCI EAFE Price Return Index (MSCI EAFE) is an index that includes developed markets outside North America, including the United Kingdom, Japan, France and Germany. Please note: Allocations to the crediting method are not invested directly in an index. There is substantial risk of loss of principal depending upon the chosen index strategy. The cap may cause the investment to underperform the index. How are my returns calculated? Your investment strategy is determined using a point-to-point crediting method that simply measures the percentage of change in the index value from the beginning of your contract year to the end of your contract year. Your investment is then credited with the percentage change up to a cap. 3

5 A look back over the last 20 years From January 1, 1998, to December 31, 2017, the S&P 500 Index had 229 rolling monthly one-year periods and an average annual return of 6.0%. Of those periods, 72.5% were positive and 27.5% were negative. This table examines the periods of index gains and losses over that time. GAINS ROLLING PERIODS % OF TIME > or = 20% % 15% 20% % 15% % 12.5% % 10% < or = 5% Totals % LOSSES ROLLING PERIODS % OF TIME < or = 5% % 5% 10% % 20% % 30% > or = 30% Totals % As you can see, market gains tended to occur more often than market declines, but losses can and do happen. Losses between 0 and 20% were more common than larger losses (20% and above), but larger losses may have a more lasting effect on your portfolio and create more investor anxiety. Past performance is not a guarantee of future results. It's important to consider an investment strategy that allows for growth, provides levels of protection for downturns, and allows you to adjust based on your risk tolerance and market outlook 4

6 Protect Choose your protection options Capital Choice allows you to select from multiple floor options and a buffer strategy, or a combination of both, to create a customized strategy that satisfies your appetite for market growth and your comfort level with risk. Rising index (upside potential) Falling index (downside protection) Falling index (index losses) Floor 15% 10% 5% 11% CAP Rising index potential Benefits Acts as a stop-loss that protects your investment from negative index performance beyond your selected 0 risk tolerance -5% -10% INDEX LOSSES -10% FLOOR Multiple levels available ranging from 0 to -10% In this example, the -10% floor option -15% -20% FLOOR PROTECTION was selected. While the index fell 25%, your losses were limited to -10%. If the index rises, you may enjoy growth up to -25% CONTRACT YEAR your cap in this case 11%. FOR ILLUSTRATIVE PURPOSES ONLY. When would I want a floor? When you want to control the amount of risk your investment is subject to and you expect fluctuations to be large. 5

7 Buffer 15% 10% 5% 12% CAP Rising index potential Benefits Protects your investment from negative index performance between 0 and -10% 0 In this example, the -10% buffer absorbed -5% -10% BUFFER PROTECTION -10% BUFFER the first 10% of losses, limiting you to a loss of 15% when the index fell 25%. If the index rises, you may enjoy growth up to -15% -20% INDEX LOSSES your cap in this case 12%. -25% CONTRACT YEAR FOR ILLUSTRATIVE PURPOSES ONLY. When would I want a buffer? When you expect your investment fluctuations to be minor but possibly more frequent. 6

8 Adjust Make adjustments as needed A lot can happen from year to year. That is why Capital Choice gives you the flexibility to adjust your linked-index options and protection strategies annually so you can adapt to what's happening in the markets. These graphs illustrate how the S&P 500 Index performed over different six-year periods in the market, and what your experience would have been if you had Capital Choice with a floor or a buffer protection strategy. You can see how the strategies performed differently during each time frame. Each of these examples assumes an initial investment of $100,000 over a six-year time period. S&P 500 price index 10% buffer strategy 10% floor strategy $120,000 TECH BUBBLE $100,000 $80,000 $60,000 $81,678 $72,074 $62,437 $102,192 $88,966 $87,190 $40, % % % 22.00% 8.44% 5.55% Jan 01 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 The years following the tech-bubble burst of 2000 resulted in prolonged declines in the market. Because the buffer strategy "absorbs" the first 10% of losses each year, your investment would have been protected and would have performed significantly better over the next several years. FOR ILLUSTRATIVE PURPOSES ONLY. The graphs represent three separate six-year time periods of the S&P 500 Index with an initial investment of $100,000 and an annual fee of 1.2%. The floor assumes an annual point-to-point crediting method, an initial investment of $100,000, a 10% floor and an 11.5% cap. The buffer assumes an annual point-to-point crediting method, an initial investment of $100,000, a 10% buffer and a 13% cap. Past performance is not an indicator or guarantee of future performance. Actual performance may differ due to the cap rate and protection option selected. It is not possible to invest directly in an index. 7

9 $140,000 $120,000 $100,000 $80,000 $60,000 GREAT RECESSION $89,650 $73,889 $65,777 $119,350 $103,019 $102,436 $40, % % 19.67% 14.06% 0.41% 14.28% Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 When the housing bubble burst in December 2007 the result was a very rapid decline of the market. In this example the -10% floor strategy would have protected losses beyond 10%, which would have led to considerably higher performance over the next several years. $250,000 $200,000 $150,000 RECENT HISTORY $220,884 $171,231 $161,295 $100,000 $50, % 14.06% 0.41% 14.28% 25.49% 12.39% Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Since 2009 the market has experienced one of its longest prolonged inclines in history. In this example we see both the buffer and floor strategies take advantage of having some of the highest cap rates in the industry. FOR ILLUSTRATIVE PURPOSES ONLY. The graphs represent three separate six-year time periods of the S&P 500 Index with an initial investment of $100,000 and an annual fee of 1.2%. The floor assumes an annual point-to-point crediting method, an initial investment of $100,000, a 10% floor and an 11.5% cap. The buffer assumes an annual point-to-point crediting method, an initial investment of $100,000, a 10% buffer and a 13% cap. Past performance is not an indicator or guarantee of future performance. Actual performance may differ due to the cap rate and protection option selected. It is not possible to invest directly in an index. 8

10 Glossary Below are some explanations of key terms associated with Great-West Capital Choice. Buffer The maximum negative index performance associated with your selected linked-index (indices) that Great-West Financial will absorb before applying a negative strategy credit. You can elect to change your protection strategy annually. Cap The maximum positive index performance that may be used to determine the strategy credit associated with your linked-index option, which may cause it to underperform the market index. The cap may change each contract year based on your strategy but will be no less than 1.5%. Contract anniversary The 12-month anniversary of the effective date of your contract. Floor The maximum negative index performance that may be used to determine the strategy credit associated with your referenced linked-index (indices). You can elect to change your protection strategy annually. Linked-index option(s) One (or more) of the third-party broad-based securities indices available to you under your contract. Strategy credit The amount credited on each contract anniversary and at time of partial withdrawal, surrender, death or annuitization. GWL&A GWL&A of NY FINANCIAL RATINGS * Comdex 96 AA Aa3 AA Aa3 Standard & Poor s Ratings Services Financial strength: Very strong (second highest of nine categories) Moody s Investors Service Financial strength: Excellent (second highest of nine categories) As of March 14, The Comdex ranking is not a rating itself but an average percentile, on a scale of 1 to 100 (highest), of at least two company financial strength ratings by independent rating agencies. AA AA A+ A+ Fitch Ratings Financial strength: Very strong (second highest of nine categories) A.M. Best Company, Inc. Financial strength: Superior (highest of 10 categories) * Ratings represent the opinions of the rating agencies regarding the financial strength of our primary insurance companies, Great-West Life & Annuity Insurance Company and Great-West Life & Annuity Insurance Company of New York, and their ability to meet ongoing obligations to their respective policyholders. These ratings are subject to change and do not pertain to any offered product or any affiliates or subsidiaries. 9

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12 1 Waiver of withdrawal charge only; not intended to provide long-term care, hospital or nursing home insurance. All withdrawals made under the terms of this waiver may be subject to tax. Diagnosis of a terminal condition must be certified by a licensed physician, who must not be the contract owner or a member of the owner s family. 2 The percentage that determines how much the account can grow and may change each contract year based on the strategy chosen but will be no less than 1.5%. 3 A floor acts as a stop-loss, adding a measure of protection when index losses occur beyond a preset threshold. Elections to change the protection strategy can be made annually. 4 A buffer adds a measure of protection when index losses occur within a preset range, but not beyond. Elections to change the protection strategy can be made annually. 5 If we are not notified to move the contract value to another strategy, the current strategy will remain in effect for the next contract year subject to a new cap of at least 1.5%. 6 The S&P 500 Index is a product of S&P Dow Jones Indices LLC (SPDJI), and has been licensed for use by Great-West Life & Annuity Insurance Company (Great-West). Standard & Poor s, S&P and S&P 500 are registered trademarks of Standard & Poor s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Great-West. This annuity product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) or have any liability for any errors, omissions or interruptions of the S&P 500 Index. 7 The Russell 2000 Index is a trademark of Russell Investments and has been licensed for use by Great-West Life & Annuity Insurance Company (Great-West). This annuity product is not sponsored, endorsed, sold or promoted by Russell Investments, and Russell Investments makes no representation regarding the advisability of investing in this annuity product. Equity securities of small and mid-size companies may be more volatile than securities of larger, more established companies. 8 Nasdaq, NASDAQ and NASDAQ-100 are registered trademarks of Nasdaq, Inc. (which, with its affiliates, is referred to as the Corporations ) and are licensed for use by Great-West Life & Annuity Insurance Company. The product(s) have not been passed on by the Corporations as to their legality or suitability. The product(s) are not issued, endorsed, sold or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s). Foreign investments involve special risks, including currency fluctuations, taxation differences and political developments. 9 The products or securities referred to herein are not sponsored, endorsed or promoted by MSCI, and MSCI bears no liability with respect to any such products or securities or any index on which such products or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Great-West Life & Annuity Insurance Company and any related products. Foreign investments involve special risks, including currency fluctuations, taxation differences and political developments. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before investing read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more information about the issuer and this offering. These documents are available for free by visiting EDGAR on the SEC website at sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send the prospectus if requested; call toll free Carefully consider the investment objectives, risks, fees and expenses of the annuity and/or the investment options. Contact us for a prospectus, a summary prospectus and disclosure document, as available, containing this information. Read them carefully before investing. Securities offered or distributed through GWFS Equities, Inc., Member FINRA/SIPC and a subsidiary of Great-West Life & Annuity Insurance Company. Insurance products issued by GWL&A, Corporate Office: Greenwood Village, CO; or in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: New York, NY. Great-West Financial, Empower Retirement and Great-West Investments are the marketing names of GWL&A. Index linked annuity contracts (ILVA-Core, ILMGA-Core, ILVA-RIA-Core, ILMGA-RIA-Core) and appropriate state variations are issued by GWL&A. GWL&A is not licensed to do business in New York. Contracts may not be available in all states. This material has been prepared for informational and educational purposes only and is not intended to provide investment, legal or tax advice Great-West Life & Annuity Insurance Company. All rights reserved. B1020-CCB _AM (B1020-CCB-1018) NOT FDIC, NCUA/NCUSIF INSURED NOT A DEPOSIT NOT GUARANTEED BY ANY BANK OR CREDIT UNION NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY FUNDS MAY LOSE VALUE NOT A CONDITION OF ANY BANKING OR CREDIT UNION ACTIVITY