Flexible Guarantee Bond

Reassurance in tricky times

For UK financial advisers only. Not to be used with customers.

Contents

an investment solution from LV=

the basics

optional guarantee

investment choices

about Threadneedle Investments

averaging approach

flexibility

allocation rates

transparent charging

adviser support & commission

mutual bonus

LV= strong & stable

For UK financial advisers only

An investment solution from LV=

Flexible Guarantee BondThe name says it all…

option to buy a five year capital guarantee at outset or any time afterprotect initial investment & lock in gainsstay invested as long as your client wants (ideally for more than five years)averaging to smooth returnschoice of three ready-made fund optionsswitching capability to help meet evolving needsoption for ad-hoc & regular withdrawalscompetitive & transparent charging

For UK financial advisers only

The basics

single premium, non-qualifying unitised with-profits, whole of life investment bond open to UK residents aged 17 to 89single, joint and life of another basisinvest between £5,000 and £500,000no fixed term (recommended minimum five years)option to buy a five year capital guarantee at outset or any time afterchoice of three ready-made fund optionsaveraging approach, for a smoother more consistent returnguaranteed minimum death and terminal illness benefit ad-hoc & regular monthly, quarterly, six-monthly and yearly withdrawal facilitiesoptions for commission give up and trailpotential for an additional mutual bonus to be added

For UK financial advisers only

Optional guarantee

Key benefits of the optional guarantee:

ability to protect original capital

clients can lock in any gains made

can be bought at outset, at any time after, or replace an existing one at any time

there’s no need to cash in at end of guarantee period

we add units to make up any shortfall

any units we add continue to participate in bond performance

(but value isn’t guaranteed, unless your client buys another guarantee)

automatically renewed at end of guarantee period (with opt out)

We promise that the bond will be worth at least the same at the end of the five year guarantee period as it was when the guarantee was purchased, less any money taken out.

1.7% for Cautious Series 2 fund option

2.6% for Balanced Series 2 fund option

For UK financial advisers only

Yearly guarantee charges (as at 7 November 2011):

The guarantee is available on the Cautious Series 2 and Balanced Series 2 fund options

Investment choices

choose one of three ready-made fund options

mix of equities, commercial property, fixed interest and cash

money is invested in the LV= with-profits fund

latest asset mixes available on our website

unlimited fund switches (first three per bond year are free)

actively managed by Threadneedle Investments

For UK financial advisers only

Asset mixes can change regularly. Please refer to our website for the latest splits.

About Threadneedle Investments

Threadneedle is a leading international investment manager with a strong track record of outperformance across asset classes

they actively manage £61.9bn of assets (as at 30 Sept 2011) investing on behalf of individuals, pension funds, insurers and corporations

a top 20 fund manager by assets under management*

the fourth largest UK retail fund manager*

established in 1994 in London, Threadneedle operates in 15 countries across Europe, the Middle East, Asia Pacific and North America

For UK financial advisers only

*UK IMA rankings, May 2011, see www.investmentfunds.org.uk

Averaging approach

reducing the impact of stock market volatility

providing a smoother, more consistent return

average value (‘Averaged Price’) of assets within the bond over the preceding 26 weeks.

real value of underlying assets (‘Underlying Price’) used for the first 26 weeks of the bond.

no Market Value Reductions

Fund Protection for rare events

more information about prices, averaging approach and Fund Protection in ‘Your Guide to how we manage our with-profits fund’ (and PPFM).

For UK financial advisers only

The graph below illustrates how the effect of averaging can work in practice, showingboth the underlying and averaged prices overa period of time. The prices and timeframes areused purely to display the effect of averaging.They’re not based on real past performancenor are they a guide to future performance.

Averaging in action

Flexible by name…

open-ended, but we recommend investing for at least five years

freedom to take ad-hoc and regular withdrawals

- monthly, quarterly, half-yearly or yearly

first 5% of amount invested, or rolled up 5% allowance, withdrawn per bond year

- no income tax on amount at that time

- no exit charge up to this limit

freedom to switch between three ready-made fund options to help meet evolving investment needs

option to buy a five year guarantee at any time to protect capital or lock in growth. Guarantee available on Cautious Series 2 and Balanced Series 2 fund options

For UK financial advisers only

Allocation rates

standard allocation rates based on

age of life assured at outset

amount invested

Any ‘commission give up’ is added to the premium paid by the investor, not as extra allocation

For UK financial advisers only

Transparent charging

no initial set up charges

annual management charge- based on amount invested and deducted monthly

- 1.5%pa for investments < £10,000

- 1.3%pa for investments £10,000 & over.

exit charge- applied to partial or full withdrawals within first five years

- no exit charge applied to the first 5% of amount invested, or rolled up 5% allowance, in any bond year.

For UK financial advisers only

Year 1 2 3 4 5 6 onwards

Exit Charge

8.5% 6% 4% 2% 1% 0%

Commission options

initial commission only

initial + trail- part of initial commission can be converted to trail

- 0.5% trail for 2.2% reduction in initial

- 0.25% trail for 1.1% reduction in initial

- trail commission paid on six-monthly basis from month 13 & for first 10 years.

commission ‘give up’- on a 1 for 1 basis

- any commission given up is added to the amount invested before the allocation rate is applied.

For UK financial advisers only

Support for you

personalised Flexible Guarantee Bond quotes- exclusively from our quotes hotline

dedicated website area- order customer packs (with essential documents)

- view, download & order a range of web-friendly customer sales aids & adviser guides

- suitability report wordings

personal support- team of telephone & field based development managers

- sales support for quotes & information

For UK financial advisers only

Mutual bonus

rewards qualifying members for their ownership of LV=

increases the amount we pay when your clients decide to fully cash in their bond, if they die or become terminally ill

is a pure addition, on top of normal returns applied to the bond

doesn’t get taken into account when we assess how much we uplift the bond by if it’s lower in value at five years and has a guarantee applying

can be reduced or taken away, however we’d only do this in exceptional circumstances

a Mutual Bonus was added to all Flexible Guarantee Bonds that were in existence on 31 August 2011, which increased bond values by 0.5%

looking ahead, we’d like to be able to add a 1% bonus each year

we intend to declare the mutual bonus yearly, although it depends on our future financial performance and capital strength

For UK financial advisers only

Financially strong and stable

LV= a compelling choice…

the UK’s largest friendly society

proudly ‘mutual’, with no shareholders eating into profits

looking after members since 1843

8.9% realistic free asset ratio*

rated B+ (very strong) overall rating for financial strength1

our main with-profits fund is rated 10/10 for financial strength, investment freedom, flexibility and bonus-paying ability2

4 million members & customers*

For UK financial advisers only

Sources: 1. AKG Consulting Company Profile & Financial Strength report, September 2011. 2. Cazalet Consulting With Profits ratings October 2011

*As at 31/12/10

Liverpool Victoria Friendly Society Limited: County Gates, Bournemouth BH1 2NF

LV= and Liverpool Victoria are registered trade marks of Liverpool Victoria Friendly Society Limited (LVFS) and LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria group of companies. LVFS is authorised and regulated by the Financial Services Authority, register number 110035. LVFS is a member of the ABI, AFM and ILAG. Registered address: County Gates, Bournemouth BH1 2NF. Tel: 01202 292333.

Not to be used after 31 May 201221121972 11/11

For UK financial advisers only

It’s important that you and your client read the Flexible Guarantee Bond Key Features so that you both fully understand the risks and features of this investment before they apply.

Any references we make to tax are based on our understanding of current legislation and HM Revenue & Customs practice, which can change. The amount of tax your client pays depends on their personal circumstances.