Deferred Annuities vs. Bank CDs:

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• Deferred Annuities vs. Bank CDs
• Which plan is right for you?

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Comparing The Plans

• Both deferred annuities and bank CDs are wealth
  accumulation plans. However, these two products
  offer very different benefits. The plan thats
  right for you depends on your personal financial
  goals.

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Comparing The Plans

• A wealth accumulation plan should meet some or
  all of the following goals
• Strong accumulationFor maximum interest
  growth
• Tax savingsTo strengthen the plan performance
• LiquidityJust in case access to funds is needed
• Guaranteed incomeFor security
• Avoid probateTo minimize potential settlement
  costs

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Comparing The Plans

• Based on these goals, lets see how the two plans
  add up!

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Financial Goal 1

• Strong Accumulation

Annuities generally pay higher rates than CDs,
plus annuities offer tax deferred growth!
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Financial Goal 2

• Tax Savings

• Annuities offer tax-deferred growthNo current
  taxes due on the interest accumulation!
• CD interest is taxable each year Reducing the
  overall accumulation power of the plan.

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Financial Goal 3

• Liquidity

• Harleysville annuities offer penalty-free
  access to account values after the first
  policy year, cumulative up to 50 of account
  value.
• No access to funds is generally available
  without a penalty in a CD.

Please consult with a tax advisor for
withdrawals prior to age 59-1/2
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Financial Goal 3 (cont.)

• Liquidity

• The plan penalties on a Harleysville annuity
  are phased out over short five- or seven-year
  periodsAfter that, the plan penalties are
  gone!
• Penalties on CD access never go away, no
  matter how many times you renew!

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Financial Goal 4

• Guaranteed Lifetime Income

• Harleysville annuities offer a pay out option
  that provides guaranteed lifetime incomeNo
  matter how long you live!
• CDs do not offer a guaranteed lifetime income
  option.

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Financial Goal 5

• Avoid Probate

• Annuities can pass outside the probate process
  to a named beneficiary of your choosing,
  avoiding settlement costs and delays!
• CD funds will be tied up in the probate
  process.

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How Do The Plans Add Up?

• Annuities
• Tax-deferred growth
• Access to funds after first year
• Guaranteed lifetime income option
• Avoids probate

• CDs
• Fully taxable
• Never-ending withdrawal penalties
• No guaranteed income feature
• Subject to probate

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Choose The Right Plan

• If youre looking for a plan that offers
• Guaranteed lifetime income
• Rate guarantees
• Tax-deferred growth
• Access to funds
• Talk to your Harleysville agent about an annuity!

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Harleysville Annuities

• Harleysville now offers the
• Accumulator Annuity
• Ask your Harleysville agent for current interest
  rates and the special benefits offered by each
  contract. Your agent will show you the right
  annuity plan to meet your personal financial
  goals!

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