Index Growth Annuity

an individual fixed annuity available from Standard Insurance Company

Topics of Discussion

    Index Annuities Index Growth Annuity  Account Accumulation   Index Interest Account Fixed Interest Account    Surrender Periods Surrender-Free Withdrawals Compensation Sales Support    Broker Training Consumer Materials New Business Processes Standard Insurance Company I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

Index Annuities

Introduction to the Index-Annuity Marketplace S T A N D A R D I N S U R A N C E C O M P A N Y

Index Annuities : Overview

     Usually called “equity-indexed annuities.” Fixed-interest insurance products.

Crediting rate determined in part by referencing an investment-based market index.

  Standard & Poor’s NASDAQ Do not

invest

in the index referenced.

Are not securities and may not be presented as such.

S T A N D A R D I N S U R A N C E C O M P A N Y

Index Annuities : Advantages

   Provide the guarantees of fixed annuities.

   Minimum Rate of Return Tax-deferred Status Safety of Principal May capitalize on positive economic conditions.

Appeal to consumers who:    Are moderately conservative; Appreciate tax-deferral of annuities; and Are in need of some diversification in a retirement-planning portfolio.

S T A N D A R D I N S U R A N C E C O M P A N Y

Index Annuities : Buyers

     Age 55 to 70 years.

About 14-year savings horizon.

Conservative saver.

Low to medium risk tolerance.

Willing to:   forego high-return potential in order to minimize fluctuations in account value.

S T A N D A R D I N S U R A N C E C O M P A N Y

Index Growth Annuity

Growth Potential with Safety Guarantees S T A N D A R D I N S U R A N C E C O M P A N Y

IGA : Overview

     Single-premium deferred. Index Interest Account  Reflects performance of the S&P 500 ® to index rate cap.

 2% less bailout index interest rate.

  12 month, point-to-point index term.

100% participation to index rate cap.

Fixed Interest Account  1-year rate guarantee.

Surrender period of 5 or 7 years.

Flexible withdrawal features.

    Issue Ages  90 years for owners and annuitants.

 Joint owners and joint annuitants allowed.

Initial Premium   $15,000 minimum.

$1,000,000 maximum without prior home-office approval.

Rate Lock  60 days for both crediting rate and index rate cap.

Fees  No annual contract fees.

I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

IGA : Account Accumulation

    Two accounts, allocated in any percentage directed.

  Index Interest Account Fixed Interest Account There is no Market Value Adjustment.

Minimum Surrender Value Guarantee   Will grow as the contract remains in force.

After surrender period, client or beneficiary will never receive less than 100% of premium, net of any withdrawals taken, accumulated at a rate that meets or exceeds minimum state requirements.

Account Transfers   Allocation may be changed once a year, at the end of the index term.

Will receive interest rate and index rate cap in effect at the time upon which the transfer is acted.

 Must be elected prior to end of index term.

I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

IGA : Index Interest Account

      Interest Crediting  Interest is calculated and credited annually.

A T A G L A N C E

Index: S&P 500 Index Term: 12 Months Index Term  12-month point-to-point term.

Participation Rate: 100% Index Rate Cap: Declared Annually Bailout Index Rate: 2% Less than Initial Interest Credited: Annually Participation Rate  100% of the growth of S&P 500 to specified rate cap.

Index Rate Cap   Assigned a rate cap for a 12-month index term.

After index term, will receive renewal index rate cap.

Bailout Index Rate  Contractually set at 2% less than the initial index rate cap.

Premium Allocation  Allocation made on the 15 th of each month, after the receipt of all expected funds in the home office.

I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

IGA : Fixed Interest Account

    Interest Crediting  Interest is calculated and credited daily.

A T A G L A N C E

Rate Guarantee: 1 Year Minimum Rate: Contractual By State Interest Credited: Daily Interest Rate Guarantee   Initial rate is guaranteed for one year.

After guarantee period, will receive renewal rate.

Minimum Rate Guarantee   Contract includes a minimum guaranteed rate.

Crediting rate on Fixed Interest Account will never fall below.

Premium Allocation  Allocation is made on the day of receipt of funds in the home office.

I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

IGA : Surrender Periods

 IGA 5 Policy Year Charge 1 2 3 8% 7% 6% 4 5 4% 2%  IGA 7 Policy Year Charge 1 2 3 9% 8% 7% 4 5 6 6% 5% 4% 7 2%

A T A G L A N C E

...your customers will be spared the hassle of a 30- or 60-day window at the end of the guarantee period, during which time policyowners are generally required to make a decision prior to the start of a new surrender period.

I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

IGA : Surrender-Free Withdrawals

      10% Annual Withdrawals available immediately.

IRS Required Minimum Distributions available immediately.

Substantially Equal Periodic Payments available immediately.

Nursing Home and Terminal Condition Benefits available after the first contract year (partial index credit is available) .

Annuitization available immediately with a lifetime or period certain option of five years or more (partial index credit is available) .

Death Benefits available immediately (partial index credit is available) .

The nursing home waiver is not available in Massachusetts and state-specific conditions apply to the terminal condition waiver.

I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

IGA : Compensation

  Commission Amounts   Your broker contract details the commission available.

Check with your MGA for more information.

Commission Chargeback  100% commission will be recaptured in the first six contract months on:  Surrenders; and  Death of an owner or annuitant age of 86 or older at issue.

 50% commission will be recaptured between the seventh and 12 th contract months on:   Surrenders; and Death of an owner or annuitant age of 86 or older at issue.

 There is no chargeback on death of an owner or annuitant with issue age 85 or younger at any time during the life of the contract.

I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

Sales Support

Partners In Serving Your Clients S T A N D A R D I N S U R A N C E C O M P A N Y

Sales Support : Broker Training

  Index Growth Annuity Broker’s Sales Guide Includes

Knowledge Assessment for the Index Growth Annuity

.

I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

Sales Support : Consumer Materials

      Brochure (12270-5/7) Fact Sheet (12271-5/7) Overview (12272-5/7) Application (12601) Disclosure (12264-5/7) Sales Guide (12274-5/7) I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

Sales Support : New Business Processes

Number Name Application

Index Annuity Application

Disclosure

Index Annuity Disclosure Buyer’s Guide to Fixed Deferred Annuities Acknowledgement of Suitability in an Annuity Purchase Replacement Notices State-Required Forms

Supplemental

Request for Rollover, Transfer or Exchange Request for 72(t) or 72(q) Substantially Equal Periodic Payments Substitute IRS Forms W-4P and W-9 Request for EFT of Annuity Payout

Broker Use

Knowledge Assessment for the Index Growth Annuity Request for Annuity Contract Illustration 12601 12264-5/7 10427 12216 Various Various 12213 7180 5031 11426 12657 11930

Required

X X

Required in Some States

X X X X X I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

Sales Support : (800) 378-4578

Sales   Marnell McClenaghan Ray Taylor Marketing  Brenda Parrish 6605 6104 8117 Web Site 

www.standard.com/annuities (No login required!)

New Business Submission Annuity New Business Administration, P5D Standard Insurance Company PO Box 711 Portland, OR 97207-9971

Street Address For Overnight

Annuity New Business Administration, P5D Standard Insurance Company 1100 SW Sixth Avenue Portland, OR 97204 Contracting   Jack Richey Anna Watson 8611 8794 New Business — Deferred  Cathy Brown 8795 New Business — Immediate   Todd Greer Joe Villanueva 8197 6909 I N D E X G R O W T H A N N U I T Y S T A N D A R D I N S U R A N C E C O M P A N Y

Standard Insurance Company

Where Expertise Is An Organizational Trait S T A N D A R D I N S U R A N C E C O M P A N Y

The Standard : Ratings

    A.M. Best “Excellent” (3rd of 13 rankings) Fitch “Very Strong” (4th of 16 rankings) Standard & Poor’s “Strong” (5th of 16 rankings) Moody’s “Good” (5th of 16 rankings) A AA A+ A1 All ratings and rankings current as of February 2005.

The Standard Plaza, in Portland, Oregon’s financial district.

S T A N D A R D I N S U R A N C E C O M P A N Y

The Standard : Financial

  

StanCorp Financial Group

 Assets $11.21 billion  Fixed Maturity Securities A or higher BBB/Baa BB or Lower 74.5% 21.6% 2.9% 59.3%  Mortgage Loans 39.6% 60-Day Delinquencies 0.25% Real Estate Other Yields Fixed Maturity Securities Commercial Mortgage Loans 5.81% 6.71% 1.0% 0.1% All figures as of December 31, 2004.

Eric E. Parsons, Chairman, President and Chief Executive Officer S T A N D A R D I N S U R A N C E C O M P A N Y

Index Growth Annuity

The Index Growth Annuity is a product of Standard Insurance Company. The IGA may not be available in some states and may at times be referenced as an equity-indexed annuity. The annuity is not guaranteed by any bank or credit union and is not insured by the FDIC or any other governmental agency. The purchase of an annuity is not a provision or condition of any bank or credit union activity. Some annuities may go down in value.

“Standard & Poor’s 500” and “S&P 500®” are trademarks of The McGraw Hill Companies, Inc. and have been licensed for use by Standard Insurance Company. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing the Product.

The S&P 500 index does not reflect dividends paid on the underlying stocks.

Policy: Riders: SPDA-IA R-ANNPTP-B20, R-TEN-IA, R-NHB-IA, R-TCB-IA

Index Growth Annuity

an individual fixed annuity available from Standard Insurance Company