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Equity Edge

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  • 1. MassMutual Equity Edge SM Variable Annuity “ Felix N Ortiz Rivera” “ MassMutual ” Seminar and Insurance Sales Presentation Retirement Income Strategies EQUITY EDGE Client 309 RI-01147-01 311
  • 2. MassMutual Equity Edge
    • The information contained in this communication is not written or intended as tax or legal advice. Neither MassMutual nor any of its employees or representatives is authorized to give tax or legal advice. The information provided herein may not be relied on for purposes of avoiding any federal tax penalties. Individuals are encouraged to seek tax or legal advice from an independent professional advisor.
    • The MassMutual Equity Edge SM variable annuity is sold by prospectus. Before purchasing a variable annuity contract, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and its underlying investment choices. For this and other information, obtain the prospectuses for the MassMutual Equity Edge variable annuity contract and its underlying investment choices from your registered representative. Please read the prospectuses carefully before investing or sending money.
  • 3. MassMutual Equity Edge Growth Potential. Principal Protection. Income. Simplified. MassMutual Equity EdgeSM and/or certain provisions may vary or may not be available in all states or with all firms contracted with MassMutual. Guarantees and payment of lifetime income are contingent upon the claims-paying ability of Massachusetts Mutual Life Insurance Company (MassMutual). Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply. Not FDIC/NCUA Insured Not A Bank Deposit Not Bank Guaranteed May Lose Value Not Insured By Any Federal Government Agency
  • 4. Retirement Are you prepared? Have you saved enough? Invested enough? Will you have enough income when you retire … for the things you want to do? … for the places you want to go? … for the lifestyle you’re living now? Will you have enough income to last as long as you do?
  • 5. Sources of Retirement Income are Changing
    • What are your options?
    • A more aggressive investment strategy
    • OR
    • The conservative route.
    • These are very real challenges facing
    • millions of Americans.
  • 6. Annuities
    • What is an annuity?
    • What is a variable annuity?
  • 7. MassMutual Equity Edge At A Glance
    • Different and Exclusive.
    • Growth Potential. Principal Protection.
    • Simplified.
    • Annuity Features.
    • A Timely Possible Retirement Solution.
    The investment return and principal value of a variable annuity will fluctuate with market conditions. Accumulation units, when redeemed, may be worth more or less than their original cost. Guarantees and payment of lifetime income are contingent upon the claims-paying ability of MassMutual. Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply. Annuities do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity’s additional features such as lifetime income payments and death benefit protection.
  • 8. Is MassMutual Equity Edge Right For You? … Do I want a simplified approach to preparing for retirement? … Do I consider myself a conservative investor?
  • 9. MassMutual Equity Edge Investor Profiles
  • 10. Stuck in the Middle… “I’m not sure what to do… A fixed annuity may not offer attractive enough returns. But a traditional variable annuity may provide too many choices for equity exposure and principal protection.”
      • Guarantees are contingent upon the claims-paying ability of MassMutual.
    MassMutual Equity Edge Investor Profiles Keeping it Simple… “ Traditional variable annuities can require many ongoing decisions.”
  • 11. Market First-timers… “I hate missing out on market rallies, but I don’t want to lose my principal!”
      • Guarantees are contingent upon the claims-paying ability of MassMutual.
    MassMutual Equity Edge Investor Profiles Conservative Money… “Although I’m comfortable in the market, I should diversify my investment portfolio. However, I sure would hate to miss out on a market rally.”
  • 12. Put Me at Ease… “I’m planning to retire in the next five to 10 years, so I want to experience some equity exposure for growth potential, while protecting my principal.” Guarantees and payment of lifetime income are contingent upon the claims-paying ability of MassMutual. Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply. MassMutual Equity Edge Investor Profiles
  • 13. MassMutual Equity Edge Investor Profiles
        • … MassMutual Equity Edge Opportunity
        • Market participation
        • Built-in principal protection
        • Few decisions
        • Simplified approach
        • Retirement income
    Guarantees and payment of lifetime income are contingent upon the claims-paying ability of MassMutual. Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply.
  • 14. Guarantees are contingent upon the claims-paying ability of MassMutual. The compensation that we pay to broker-dealers whose registered representatives sell this contract varies by benefit period. The compensation paid is the same whether you elect the 7- or 10-year benefit period, but may be less if you elect the 5-year benefit period.
    • Single Investment
    • Principal Protection
    MassMutual Equity Edge In Detail Benefit Period Principal Protection 5-year 100% 7-year 100% 10-year 110%
  • 15. Guarantees are contingent upon the claims-paying ability of MassMutual.
    • Automatic Allocation
    MassMutual Equity Edge In Detail
      • Fixed Investment
      • Equity Investment
    The S&P 500 Index is a list of securities frequently used as a measure of U.S. stock market performance. The S&P 500 Index is unmanaged and does not represent the performance of MassMutual Equity Edge SM or a specific underlying fund. An investment cannot be made directly in an index.
  • 16. MassMutual Equity Edge Fast Facts Total Insurance Charge (Does not apply to the fixed investment portion) * Subject to change Current charge for 5-year benefit period:* Current 1.70% (Max. 3.45%) Current charge for 7-year benefit period:* Current 1.60% (Max. 3.35%) Current charge for 10-year benefit period:* Current 1.35% (Max. 3.10%) Current charge if no benefit period elected:* Current 1.35% (Max. 3.10%)
  • 17. MML Equity Index: 0.45% as of 5/1/08 MML Money Market: 0.56% as of 5/1/08 Fund Operating Expenses MassMutual Equity Edge Fast Facts
  • 18. *In most states, an MVA applies for any amounts withdrawn from the fixed account more than 30 days prior to the end of the benefit period. Generally, rising interest rates may result in an MVA that negatively impacts a withdrawal, while falling rates may result in a positive adjustment to a withdrawal. If an MVA is negative, the contract value upon surrender will not go below your purchase payment rolled up at the guaranteed minimum interest rate, less any applicable contingent deferred sales charge. For example,on a $100,000 purchase payment with a negative MVA, the client’s contract value will never go below what they put in plus interest, less any contingent deferred sales charge. Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply. Guarantees and payment of lifetime income are contingent upon the claims-paying ability of MassMutual.
    • Liquidity Feature
    MassMutual Equity Edge In Detail
      • Withdrawal*
      • May be subject to a market value adjustment (MVA). An MVA results in positive or negative change to the value of what’s withdrawn from the fixed account if the initial and current interest rates vary upon withdrawal. Lower current rates result in a positive MVA, while higher current rates result in a negative market value adjustment.
  • 19. Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply. Guarantees are contingent upon the claims-paying ability of the issuing company. * Annuities do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity’s additional features such as lifetime income payments and death benefit protection.
    • Other Provisions
    MassMutual Equity Edge In Detail
      • Home Health Care and Nursing Home Waiver
      • Terminal Illness Waiver
      • Death Benefit
        • Spousal Continuance
      • Tax Deferral*
  • 20. Guarantees and payment of lifetime income are contingent upon the claims-paying ability of MassMutual. *Principal protection benefit not available. **Withdrawals outside of a window period : While you are participating in a benefit period, if you make a withdrawal outside of the window period, your withdrawal will be subject to a contingent deferred sales charge (only during the initial benefit period) and any applicable market value adjustment. Your Principal Protection Benefit will also be adjusted. Withdrawals during the window period: While you are participating in a benefit period, if you make a withdrawal during the window period, your withdrawal will not be subject to a contingent deferred sales charge or any applicable market value adjustment. Your Principal Protection Benefit will be adjusted unless your withdrawal is effective on the benefit period expiration date. Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply.
    • End of Benefit Period
    MassMutual Equity Edge In Detail
      • Renew the Benefit Period
      • Select a Different Time Horizon
      • Move Money to the MML Money Market Fund*
      • Withdraw Contract Value**
      • Begin to Receive Income
  • 21. Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply. Guarantees and payment of lifetime income are contingent upon the claims-paying ability of MassMutual. MassMutual Equity Edge In Detail
      • Life Income
      • Life Income with Period Certain
      • Joint and Last Survivor
      • Joint and 2/3 Survivor
      • Joint and Last Survivor with Period Certain
      • Period Certain
    • Annuitization Options
  • 22.
    • Issue Age (Owner/Joint Owner Or Annuitant If Entity Owned)
      • Minimum: None
      • Maximum: 80, though this may vary in some states
    • Investment Limits
      • Minimum: $25,000
      • Maximum: $1,500,000 for contract owners up to and including age 75; or $500,000 for contract owners age 76 and older and for non-natural owners
    • Contract Maintenance Fee
      • Currently $40 per year; maximum of $60 per year
      • Waived on contract values over $100,000
    MassMutual Equity Edge Fast Facts
  • 23. In New York, the CDSC begins at 7% in year 1 and is 1% less each year thereafter during the benefit periods shown above. For the 10-year benefit period in New York, the CDSC is 0% for years 8-10. Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply. MassMutual Equity Edge Fast Facts Contingent Deferred Sales Charge (CDSC) Year 1 2 3 4 5 6 7 8 9 10 5-Year Benefit Period 8% 8% 7% 6% 5% 0% 0% 0% 0% 0% 7-Year Benefit Period 8% 8% 7% 6% 5% 4% 3% 0% 0% 0% 10-Year Benefit Period 8% 8% 7% 6% 5% 4% 3% 2% 1% 0%
  • 24.
    • Markets
      • Non-Qualified : Non-Qualified, Custodial IRA, Non-Qualified Deferred Compensation Plan (Non 457 Plans) (Joint contract owners can own non-qualified contracts.)
      • Qualified : Traditional IRA, Roth IRA, SEP IRA
      • Qualified Plan : Pension Plan, 401(k), Keogh (HR10), Target Benefit Plan, Profit Sharing Plan, Money Purchase Pension Plan
    Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply. Please consult a tax adviser prior to electing partial annuitization. The tax consequences of a partial annuitization are uncertain. MassMutual Equity Edge Fast Facts
    • Maturity Age/Date
      • Maximum: Age 100, though this may vary in some states
      • Minimum: 13 months after issue date for full and partial annuity payments; the minimum amount for partial payout is $10,000
  • 25. Financial strength ratings are as of March 1, 2009, and subject to change. Ratings do not apply to the separate account or variable investment choices offered under the contract. Ratings are for Massachusetts Mutual Life Insurance Company. Guarantees and payment of lifetime income are contingent upon the claims-paying ability of MassMutual. Withdrawals are subject to income tax, and if taken prior to age 59 ½, a 10% federal income tax penalty may apply. Massachusetts Mutual Life Insurance Co.
      • More than 150 years
      • Consistent Financial Strength Ratings
    A.M. Best Company A++ (Superior – 1 st category of 15) Fitch Ratings AAA (Exceptionally Strong – 1 st category of 21) Moody’s Investors Service, Inc. Aa1 (Excellent – 2 nd category of 21) Standard and Poor’s Corp. AAA (Extremely Strong – 1 st category of 20)
  • 26. MassMutual Equity Edge For many Baby Boomers, retirement is coming and with it, a new way of life. Sometimes the same old products just can’t keep up. That’s where we come in.
  • 27. MassMutual Equity Edge SM [Policy Form #SPDVA06; SPDVA06 (NC)] is a single-premium deferred variable annuity contract issued by Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, MA 01111-0001. (Some states require us to call this a modified single-premium deferred variable annuity.) Principal Underwriters: MML Investors Services, Inc. MML Distributors, LLC Subsidiaries of Massachusetts Mutual Life Insurance Company 1295 State Street Springfield, MA 01111-0001 MassMutual Equity Edge Growth Potential. Principal Protection. Income. Simplified.
  • 28. © 2009 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.

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