Allstate RightFit - Annuityexpertadvice

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Allstate RightFitAnnuitySMHelping you find balance between protection and growth.This brochure must be accompanied by a current Allstate RightFitSMAnnuity prospectus, which contains more details on the product andfund portfolios, including information on charges and expenses.FIN1989

Feel more financially securein any market.Even though economic times change, one thing stays the same — theneed to save for the future. Whether it’s for education, retirement or arainy day, you may be unsure about how to confidently achieve yourfinancial goals while limiting your loss.Allstate RightFit Annuity might be the answer.SMWhat makes RightFit different from most investment options is thatyou have the ability to choose the level of return from potential marketupsides up to a ceiling, as well as the level of protection againstsignificant market declines. And because RightFit is flexible — youchoose your time horizon and investment style — it could be right foralmost anyone who wants a flexible investment option.If you’re looking to balance protection and growth potential, the Allstate RightFitAnnuity could be the right fit for you.2FIN1989

Balance protectionand growth potential.3FIN1989

How does Allstate RightFitAnnuity work?SMParticipate in market opportunitiesEnjoy the potential for growth up to a ceilingwith the protection of a “floor.”every year the S&P 500 Index increases.The Allstate RightFit Annuity is a single premiumHave the ups and downs of the stock market madedeferred annuity that provides growth potentialyou reluctant to invest? RightFit can give youbased on the performance of the S&P 500 Index.confidence to participate in the market again withWhen the S&P 500 Index goes up, the value ofyour RightFit Annuity goes up. When the S&P 500the opportunity to enjoy growth when the S&P500 Index goes up.Index goes down, the value may go down. However,And since every floor has to have a “ceiling,” RightFityour investment is protected annually fromtoo has a ceiling — a limit on the upside potentialsignificant drops in the S&P 500 Index by neverof your investment. There’s a chance your ceilinggoing below the level you’ve chosen for yourmay go up or down each year. Don’t worry —floor, assuming no withdrawals have been made. Itif the ceiling drops below a certain level, there’s ais important to understand that even with a floor,bailout option available to you. (See page 10.)you may lose money invested in the contract.PROTECTOffers a level ofprotection for yourinvestments againstmarket decline.BalanceChoose investmentoptions to fit yourrisk tolerance andtime horizon.GROWEnjoy potential growthup to a ceiling basedon the positiveperformance of theS&P 500 Index.The S&P 500 Index does not reflect dividends paid on the stocks underlying the S&P 500.The floor is subject to change but will never fall below its initial value. Ceilings are subject to change;ceiling may increase or decrease annually on a contract anniversary.4FIN1989All guarantees are subject to the claims paying ability of Allstate Life Insurance Company.

marketdeclines.ProtectyourPROTECTLosses followagainstthe S&Pinvestments500,butdeclines.will never bemarketProtect ts against500, but will never bemarket declines.lower than your floor.Losses follow the S&P500, but will never belower than your ingwant to oneofthree Allstatebalanceyour riskYou choose howinvestmentby choosingoptions.oneyou want toof three Allstatebalance your riskinvestment options.by choosing oneof three Allstateinvestment options.is linked tofortheyourS&PPotentialGROW500, but thetogrowthinvestmentgrowwillnevertobehigheris linkedtheS&PPotential for yourthanyourtheceiling.500, butgrowthinvestment to growwill never be higheris linked to the S&Pthan your ceiling.500, but the growthwill never be higherthan your ceiling.Purchasing an Allstate RightFit Annuity is easy. Here are the basic steps:1 With the help of your FinancialRepresentative, determine whetherGROWyou’re a conservative, moderate oraggressive investor.BalanceBalance23GROWChoose the amount of time to investyour money — 5, 7 or 10 years.GROW You can choose toGROWinvest in one, two orall three investment options shown onthe right.GROWConservativeFitPROTECTBalanceGROWOffers highest amount of protection against loss withlowestpotentialBalancefor TECTPROTECTBalanceBalanceBalanceGROWGROWGROWOffers a lower amount of protection against loss withhigher potential for ceGROWBalanceGROWPROTECTOffers highest potential for growth with the lowestamount of protection against loss and will, therefore,have a greater risk of losing principal.5FIN1989

BalancePROTECTOffers a level ofprotection for yourinvestments againstmarket decline.Choose investmeoptions to fit yourisk tolerance andtime horizon.One investment, simplified.Meet Peggy Brennan.Peggy Brennan is 67 years old and retired. WithinIn the past, Peggy avoided annuities because ofher investment portfolio, she has 15,000 in athe long investment periods. She was happy toCD with a term that is ending soon . She wants tolearn that the Allstate RightFitSM Annuity offeredprotect her savings but feels the lower interesta time horizon of as little as 5 years and that anyrates offered on CDs don’t give her theearnings would be tax deferred, giving her moneyopportunity to grow her savings enough to beatthe opportunity to accumulate more rapidly.1inflation.ConservativeFitPROTECTTime horizonBalanceInvestment amountGROW5 years 15,0000%FloorCeilingPROTECTConservativeFit option offered a floor of 0% anda ceiling of 3.75%.Since Peggy chose the most conservative3.75%0%, she’llBalanceinvestment option with a floor ofGROWnever lose the principal as long as she holds theChoices that help meet Peggy’s needs.investment to its maturity date. Even withWorking with her Financial Representative,this kind of protection, she will be able toPeggy chose the ConservativeFit investmentparticipate in market growth up to 3.75% inoption. Since Peggy might need this money whenthe first year. Peggy understands that we mayPROTECTsheturns 72, she chose the 5-year time horizon.increase or decreasethe ceilingGROWon each contractBalanceOn the day she purchased her annuity, theanniversary.The example and ceiling are hypothetical and for illustration purpose only. Peggy is not an actualAllstate customer. Peggy’s scenarios and quotations may not be representative of the experiences ofactual Allstate customers and the results are not indicative of future performance or success.Please note: CDs are typically FDIC insured whereas annuities are backed only by the claims-payingability of the issuing insurance company.1 6FIN1989

S&P 500 Index rises and falls.The example below shows the rise and fall of the S&P 500 Index from 2000 to 2009. While this chartis not an indication of how the S&P 500 Index will perform in the next 10 years, it can help you see howAllstate RightFit allows Peggy to participate in the market’s performance with protection from loss butwith the potential for gain.PERFORMANCE OF S&P 500 INDEX FROM 2000 – 200930%20%10%0%-10%-20%-30%-40%200020012002Actual S&P 500 Index Loss20032004200520062007Actual S&P 500 Index Gains2008Floor Rate2009Ceiling Rate 2The chart and example are hypothetical and for illustration purpose only.The purpose of this example is to demonstrate how the ceiling and floor rates for the ConservativeFitinvestment option of Allstate RightFit Annuity theoretically may have performed during the specified periodof time. This example may not be used to predict future results. You cannot directly invest in the S&P 500Index. The S&P 500 Index does not reflect dividends paid on the stocks underlying the S&P 500 Index.The floor is subject to change but will never fall below its initial value.Ceilings are subject to change and may increase or decrease annually on your annuity contractanniversary.FIN19897

PROTECT againstinvestmentsmarket declines.Losses follow the S&PProtect your500,but will never bePROTECTinvestmentsagainstlower than your floor.market declines.Losses followProtectyour the S&P500,but will againstnever beinvestmentsloweryour floor.marketthandeclines.youBalancewant tobalance your riskby choosing oneYou choose howof threeAllstateyouBalancewant toinvestment options.balance your riskbyoneYouchoosingchoose ce yourriskinvestmentGROWto growis linked to the S&P500, but the growthPotential for yourwill never be higherinvestmentGROWto growthan your ceiling.is linked to the S&P500, but thePotentialforgrowthyourwill never betohigherinvestmentgrowthanyouris linkedtoceiling.the S&POne investment, diversified.MeetBiggs.LossesLoufollowthe S&P500, but the growthby choosing onethree Allstate500,butneverTime horizon will never be higherLouBiggsis 55willyearsold andbeowns aofwindow10 yearsblindcompanyhe hopesuntil he’soptions.lowerthanthatyourfloor.to run investmentTotal investmentthanamountyour ceiling. 80,00065 or older. He has a 401(k) from a previous jobthat’s worth 80,000.ConservativeFitChoices that meet Lou’s needs.GROWLou’s Financial Representative gave him aquestionnaire to help him determine that a 10-CeilingRightFitSMGROWoptions: 50% inAnnuity’s investmentConservativeFit, 25% in ModerateFit and 25% inAggressiveFit.GROWLou was comfortable with his allocations.GROWBut he also liked learning that each year priorto his annuitycontract anniversary,BalanceGROW he couldchange them. For example, as Lou gets closerto retirement age and wants more security, heGROWcould move some or all of his investment into theConservativeFitoption.BalanceGROWThe charts to the right show the floors andceilings offered to Lou for each investmentoption on the day he purchased the RightFitBalanceGROWAnnuity andhow his 80,000is allocated.Lou understands that the ceiling may be resetannually and may be higher or lower than theGROW 40,000Investment Portionoption was right for him. Since he has moreto place his money in all three of AllstateBalanceBalanceFloortime to recover any potential losses, he choseBalancePROTECTyear time horizon and a diversified alancePROTECTBalancePROTECT BalancePROTECTInvestment or0%GROWBalanceBalanceGROWGROWGROW 20,000-4%GROW9%GROWAggressiveFitPROTECTInvestment PortionBalanceGROW 20,000Floor-8%Ceiling12.75%There is no additional tax benefit when qualifiedassets are placed in an annuity since tax deferralis provided within existing qualified accounts.initial ceiling.8FIN1989The example and ceiling are hypothetical and for illustration purpose only. Lou is not an actualAllstate customer. Lou’s scenarios and quotations may not be representative of the experiences ofactual Allstate customers and the results are not indicative of future performance or success.

Choose an investment optionthat’s comfortable for you.9FIN1989

More reasons to chooseAllstate RightFit Annuity.SMTax-deferred investmentsWithdrawal provisionsLike all other annuities, taxes on your earnings areYou can withdraw up to 10% of your maturitydeferred until you withdraw your funds.value each year without paying a withdrawalcharge. You will need to pay taxes on anyAnnual opportunity to re-allocatewithdrawals you make.Each year, you can re-allocate your moneyThere are other conditions under which you mayfrom your current investment option to another.also withdraw all or part of your maturity valueThe investment changes must be receivedwithout withdrawal charges. These include if you5 days prior to the annuity contract anniversary.become unemployed, are confined to a hospitalor long-term care facility or are diagnosed withFlexible bailout optionsa terminal illness. Please ask your FinancialIf the ceiilng for any investment option is resetRepresentative for more details.below the specified bailout rate, you maywithdraw some or all of your Maturity Valuefrom that investment option without incurring awithdrawal charge or any adjustment for changesin the fair value index.The Allstate RightFit Annuity could be a valuable investment optionfor you if you’re looking to protect your investment from significant loss butwant to participate in the growth potential of the S&P 500 Index.Call your Financial Representative today to learn more.There may be terms, conditions, limitations and these provisions may not be available in all states. Otherwithdrawals prior to your maturity date may be subject to withdrawal charges and other adjustments.Please note: Withdrawal charges ranging from 0% to 10% for a range of 0-11 years for the 10 YearTime Horizon, 0% to 10% for a range of 0-8 years for the 7 Year Time Horizon and 0% to 10%for a range of 0-6 years for the 5 Year Time Horizon may apply. Refer to the product brochure orprospectus for additional information.WITHDRAWAL CHARGES BY CONTRACT YEARTIME HORIZON123456710 YEAR891011 10%10%10%9%9%8%7 YEAR10%10%10%9%9%8%7%6%5%4%0%7%0%5 YEAR10%10%10%9%9%0%Your Withdrawal Charge will be no greater than as shown above and may be less in some states.Your contract will provide your specific Withdrawal Charge schedule.10FIN1989Distributions taken prior to annuitization are generally considered to come from the gain in thecontract first. If the contract is tax-qualified, generally all withdrawals are treated as distributions ofgain.Withdrawals of gain are taxed as ordinary income and, if taken prior to age 591 2, may be subject to anadditional 10% federal tax penalty.

Call your Financial Representative today to find the right investment fit for you.

Are you inGood Hands ? All guarantees are based on the claims-paying ability of Allstate Life Insurance Company.Allstate RightFit Annuity is a single premium deferred annuity contract issued by Allstate life InsuranceCompany; underwritten by Allstate Distributors, LLC, both of Northbrook, IL, and sold throughagreements with registered representatives who are licensed insurance agents. Allstate RightFitAnnuity is available in most states with contract series number LU10974, Bail Out Rate EndorsementLU10978A, Waiver of Charges Endorsements LU10975 and series LU10976.“Standard & Poor’s, ” “S&P, ” “S&P 500, ” “Standard & Poor’s 500” are trademarks of the McGraw HillCompanies, Inc. and have been licensed for use by Allstate Life Insurance Company. The product isnot sponsored, endorsed, sold, or promoted by Standard & Poor’s and Standard & Poor’s makes norepresentation regarding the advisability of investing in the product.Please note that Allstate Life Insurance Company or its agents and representatives cannot give legalor tax advice. The brief discussion of taxes in this brochure may not be complete or current. The lawsand regulations are complex and subject to change. For complete details consult your attorney or taxadvisor.The death benefit of life insurance policies that are transferred for value may be subject to ordinaryincome taxes. Estate taxes may apply.Consult your tax advisor for additional information.Before investing you should carefully consider how interest is credited, as well as the risks, chargesand expenses associated with the contract. Additional information about these and other subjectscan be found in the Allstate RightFitSM Annuity prospectus. To obtain a prospectus, please contact yourFinancial Representative or call Allstate at (800) 203-0068. Please read the prospectus carefullybefore purchasing a contract or sending money. 2011 Allstate Insurance Company. allstate.comFIN198905/11

The Allstate RightFit Annuity is a single premium deferred annuity that provides growth potential based on the performance of the S&P 500 Index. When the S&P 500 Index goes up, the value of your RightFit Annuity goes up. When the S&P 500 Index goes down, the value may go