PDF Questions & Answers - Symetra

Symetra Life Insurance Company September 2009

Questions & Answers

Oct. 5 Fixed Annuities Changes

About the Changes

For New York-specific details, please refer to TEMP-0138/NY 10/09.

What's happening?

Symetra Life Insurance Company has reengineered its Symetra Custom and Symetra Select fixed single premium deferred annuities. Our new lineup will relaunch to most states on Oct. 5, 2009.

In which states will the new lineup not be available?

Until approved, we will continue to offer our current fixed annuities in Minnesota, Mississippi, New Jersey and Pennsylvania. We will communicate transition details as enhanced products become available in these states.

What kinds of changes were made?

Most changes were designed to streamline, standardize and simplify our fixed annuity contracts. Here is a quick review of the changes:

? The Guaranteed Return of Purchase Payment (GROPP) is now optional, allowing your clients to opt for a higher interest rate during their guarantee period.

? The Guaranteed Minimum Interest Rate (GMIR) will now be reviewed quarterly, and if necessary, reset for new contracts based on changing market conditions. (See GMIRs below, effective Oct. 5).

? A new $250,000+ pricing tier adds 0.05 percent to your client's base interest rate.

Custom 7 Only ? A new seven-year interest guarantee period was added. ? While the surrender schedule is still seven years, charges were increased slightly to

accommodate interest rate enhancements.

YEAR

1

2

3

45

6

7

8+

OLD

8%

7%

6% 5% 4% 3%

2%

0%

NEW

8%

8%

7% 7% 6% 5%

4%

0%

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TMP-0138

AGENT AND ADVISOR USE ONLY

10/09

Was anything removed or reduced?

Yes. The one-year interest rate guarantee period was discontinued for both Custom 5 and Custom 7. However, in addition to Custom 7's new seven-year guarantee period, its threeand five-year options continue to be available.

When will the transition occur?

In approved states, applications, direct transfers or rollover forms, and 1035 exchange forms for "old" products must be signed and dated by Oct. 4, 2009. Applications signed and dated on or after Oct. 5, 2009, will be accepted for new products. We will continue to accept applications for the old product(s) in the unapproved states listed above.

When may I order new marketing materials?

We anticipate having new kits available in the week prior to launch. For questions, or to order materials, contact our Sales Center at 1-800-706-0700, weekdays between the hours of 6 a.m. and 5 p.m. (Pacific Time), or send email to invest@.

Interest Rates

Will new interest rate information be available prior to the Oct. 5 launch?

Yes. Interest rates will be set and communicated on Sept. 30 -- in the same manner we communicate interest rates today. Interest rates for both "with GROPP" and "with no GROPP" will appear on the same communication.

What will the new Guaranteed Minimum Interest Rates (GMIR) be?

The GMIR -- the absolute minimum interest rate your clients could potentially receive after their guarantee period ends or at renewal -- will depend on the product and whether the contract is in or out of the surrender period. The GMIRs in the chart below apply to new contracts established on or after Oct. 5, 2009.

GUARANTEED MINIMUM INTEREST RATES (GMIR)

beginning Oct. 5, 2009

IN SURRENDER

OUT OF SURRENDER

SELECT 3

1%

1%

SELECT 5 CUSTOM 5 CUSTOM 7

2%

1.5%

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Optional Guaranteed Return of Purchase Payment (GROPP)

How exactly does the "higher interest rate" option work?

During the contract's guarantee period, customers will be able to lock in either a "standard" interest rate (with GROPP) or a "higher" interest rate (without GROPP). To get the higher interest rate, clients must decline the GROPP benefit by responding "no" to the application's GROPP question.

Wouldn't declining the GROPP benefit put customers at risk?

Actually, most of our customers would be better off pocketing the extra interest. That's because fixed annuities are best suited for clients who are willing and able to make a long-term financial commitment. Things happen, of course, but historically less than 3.5 percent of Symetra customers surrender their contracts during the first two years -- the point at which account value is typically sufficient to return their purchase payment, even after surrender charges.

May customers switch options after the contract has been issued?

No, once the contract is issued customers may not opt in or out of the GROPP. However, clients may exercise their free-look privilege, cancelling their initial selection and electing a different option on a new application.

Applications

How do I indicate my client does not want GROPP and instead prefers the higher interest rate?

As shown below, if your client wants the higher interest rate, mark "no" to decline the GROPP option. If your client prefers the peace of mind of the guarantee, mark "yes" to retain the GROPP.

For standard

applications,

the GROPP

question

is found

at the

8

top of the application.

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For applications submitted through AnnuityNet, the GROPP question is found under "Benefits Selection (Riders)."

What happens if the GROPP boxes are left blank on the application?

Applicants must either accept or decline the GROPP option. If left blank, we will contact the sales representative to request that the application's GROPP question be marked either "yes" or "no," initialed and dated by the client, and resubmitted via mail or fax. We will honor the interest rate in effect on the date the original application was signed, as long as the revised application is received within 10 business days.

Will "old" Custom 7 or Select 3 applications be accepted after Oct. 5?

Yes, we will continue to accept old applications for NEW products if they are signed on or before Oct. 31, 2009. During this interim period, we will contact sales representatives with a courtesy reminder that new applications will be required beginning Nov. 1, 2009. To secure the higher interest rate (with no GROPP), however, a new application must be submitted.

If a sales representative decides to resubmit a new application in order to get the higher interest rate, when will the interest rate lock?

We will honor the interest rate in effect on the date the original application was signed, as long as the new application is received within 10 business days (faxes are acceptable).

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Additional Information for Unapproved States

Minnesota, Mississippi, New Jersey and Pennsylvania (for New York-specific details, please refer to TEMP-0138/NY 10/09)

May unapproved states continue offering Symetra fixed annuities?

Yes. Until approved, Minnesota, Mississippi, New Jersey and Pennsylvania may continue offering their current Symetra products.

How will interest rates be handled in these states?

Interest rates for new money received on or after Oct. 5 -- including additional purchase payments -- will mirror the "standard" (with GROPP) interest rates offered with our new products.

May customers select the higher (no GROPP) interest rate option?

No, this option will not be available until state approval is granted for the enhanced fixed annuities.

What about the GMIR for Custom 5 and Select 5?

As you may recall, new sales for these products were temporarily suspended. Interest rates for additional purchase payments will remain at the 3 percent floor guaranteed in those contracts, plus any applicable additional first-year interest.

When will the remaining states launch the new products?

Assuming state approvals are granted as expected, we anticipate launching to the remaining states by early November. Fixed deferred annuities are issued by Symetra Life Insurance Company and are not available in all U.S. states or any U.S. territories. Guarantees and benefits are subject to the claims-paying ability of Symetra Life Insurance Company, 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004.

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