PAC.2044.06.07 08/07

ProSaver®IndexSeriesAnnuity

Tax-DeferredIndexedAnnuity

ClientBrochure

2

Celebrating its 100th year of service, Protective Life Insurance Company was built upon a belief in

hard work and integrity. The Company’s continued commitment to these timeless principles is

reflected in its dedication to three core values: quality, serving people, and growth.

Protective Life Insurance Company’s values-oriented management philosophy was established by its

founder, former Alabama Governor William Dorsey Jelks. Governor Jelks left an indelible imprint

on the Company by insisting that quality – in products, in service, and in people – be the standard

applied to every aspect of its business. Understanding that serving people begins with being worthy

of their trust, Jelks’ initial pledge to Protective Life’s customers, shareholders, and employees remains

today the focus of the Company’s leadership.

One hundred years later, Protective Life Insurance Company is one of the nation’s leading insurance

companies, providing financial security to individuals and families across the country through a

broad portfolio of life and specialty insurance and investment products. Drawing upon the strengths

of the past, while maintaining a keen eye toward the future, the Company’s employees nationwide are

dedicated to affirming the wisdom of our collective vision: Doing the right thing is smart business.®

ProtectiveLifeDoing the right thing is smart business.

2

1907GovernorWilliamDorseyJelksfoundsProtectiveLifeInsuranceCompany,asTheodoreRooseveltbeginshisseventhyearasU.S.President.

1909ProtectiveLifepaysitsfirstdeathclaim.

1917TheU.S.entersWorldWarI.

1927SamuelClabaughbecomespresidentofProtectiveLifeuponitsmergerwithAlabamaNationalLife.CalvinCoolidgeholdstheofficeofU.S.President.

1932ProtectiveLifecelebratesitsSilverAnniversary,withover$65millionofinsuranceinforce.

1937ColonelWilliamJ.RushtonassumesthetopleadershippositionatProtectiveLife,asU.S.PresidentFranklinD.Rooseveltserveshissecondterm.

ALookBack

C e L e B R A T I N G 10 0 Y e A R S

FinancialStrength

Insurance companies must be financially strong and reliable in order to fulfill future obligations, such as paying claims and servicing policies. Every year, independent ratings services conduct reviews to measure the financial strength of insurance companies.

Protective Life Insurance Company has more than $252 billion of coverage in force to date.*

• A+ (Superior, 2nd highest of 15 ratings) from A.M. Best

• AA (Very Strong, 3rd highest of 21 ratings) from Standard & Poor’s

• AA- (Very Strong, 4th highest of 22 ratings) from Fitch

• Aa3 (Excellent, 4th highest of 21 ratings) from Moody’s Investors Service

Each of these independent rating agencies has assigned its rating based on a variety of factors including Protective Life Insurance Company’s operating performance, asset quality, financial flexibility and capitalization.**

* Asof1/1/07** TheseratingsarecurrentasofJune2007.Formorecurrentinformation,pleasevisitwww.protective.com.

ProductstoMeetaVarietyofNeeds

Protective Life Insurance Company offers a wide range of high-value, competitive life insurance and annuity products, including:

Variable Annuities Variable Universal Life Fixed Annuities Universal Life Insurance Immediate Annuities Term Insurance

Our product portfolio can help people manage the financial risks associated with protecting their families or businesses, and help them prepare for long term needs like retirement and estate planning. Ask your sales agent for more information about these products and how they may help you meet your long-term financial goals.

1941TheU.S.entersWorldWarII.

1957ProtectiveLifecelebrates50years,withinsuranceinforceapproaching$1billion.

1969BillyRushtonbecomesthefourthCeOofProtectiveLifeasRichardNixonbeginshisfirstyearasU.S.President.

1992DraytonNabersJr.isnamedCeOofProtectiveLife,whileGeorgeH.W.BushserveshisfinalyearasU.S.President.

1997WestCoastLifeisacquired,solidifyingProtective’snationalpresence.

2002JohnD.JohnsbecomesCeOofProtectiveLife,whileGeorgeW.Bushservesas43rdU.S.President.

2003Thecompanypromotesitscorebelief:Doing the right thing is smart business.®

2006ChaseInsuranceGroupisacquired,representingProtective’slargestacquisitiontodate.Insuranceinforcesurpasses$252billion.

C e L e B R A T I N G 10 0 Y e A R S

ProSaver®IndexSeries3

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IntroducingtheProSaver®IndexSeriesAnnuity

Thank you for considering the ProSaver® Index Series Annuity as a

part of your long-term financial plan. The ProSaver® Index Series

Annuity, a fixed annuity from Protective Life Insurance Company,

can provide specific features, such as an ongoing stream of annuity

payments for as long as you live, to help you plan for retirement.

This brochure and accompanying materials are designed to explain

the features and benefits of this product and to help you decide if it

is right for your needs.

TheProSaver®IndexSeriesAnnuitymayberightforyouif... You are concerned about outliving your retirement savings

An annuity can provide you with regular payments to supplement other sources of retirement income. In fact, an annuity is the only product you can buy that can provide the security of a payment stream that will last as long as a lifetime.

You are concerned with the security of your money as it grows The ProSaver® Index Series Annuity is a fixed annuity that provides you with the assurance that you can maintain or grow your money without downside market risk. We’ll explain how this is possible on page 8 as we discuss how interest is credited to your annuity. Keep in mind surrender charges may apply to early withdrawals.

You are looking for potentially higher interest earnings With interest options linked to the S&P 500® Index, the ProSaver® Index Series Annuity has the potential to credit interest higher than fixed rate alternatives.

You are interested in tax-deferred growth Annuities allow you to defer paying taxes on your interest earnings until they are withdrawn or distributed, which may enable your money to compound and grow more efficiently.

You want to provide for your loved ones in the event of your death The ProSaver® Index Series Annuity can provide a death benefit payable directly to your named beneficiaries, avoiding the cost, delay and publicity of probate.

ConsideringYourFinancialNeedsAs with the purchase of any financial product, you should consider a variety of factors in determining the suitability of the ProSaver® Index Series Annuity in meeting your own needs. We urge you to discuss your financial status (current income, liquid assets, how much you need to live on, etc.), financial objectives, tax status, and other areas of importance with your sales agent before you purchase an annuity or other insurance or investment products. Together, you can determine whether the product fits with your time horizon, liquidity needs, risk tolerance, and financial experience.

ProSaver®IndexSeries5

Preparingfor“TheNewRetirement”

Just a generation or two ago, many retirees looked to Social Security and pension benefits as the source of lifetime financial security. People also generally lived shorter, less active lives in retirement than they do today.

It’s a different picture today. People are retiring earlier than in the past. Because people are living longer, it’s clear that they’ll need more substantial funds to see them through longer times in retirement.

The prospect of a long and active retirement is good news. However, paying for that longer retirement comes at a higher cost. Once you factor in potentially rising prices the challenge is even tougher. Over the last 20 years, the cost of living has increased over 80% (Bureau of Labor Statistics, 2004). It’s no wonder that so many are concerned about keeping up with rising costs before and during retirement.

The challenge is even greater because many future retirees don’t count on traditional sources of retirement security being there once they retire. Defined benefit pension plans, once a component of most Americans’ retirement planning, are increasingly rare.

Reports abound about the uncertain future of Social Security. The government now projects that Social Security tax revenues will fall short of program costs by 2017, and that trust fund accumulated reserves will be exhausted by 2041.1 Changes to the program may lie ahead, but even in its current form, Social Security alone isn’t the answer for most retirees. In fact, the average monthly Social Security benefit for all retired workers in 2006 was just $1,044; for a couple with both receiving benefits, the average amount was just $1,713.2

1 The2005AnnualReportoftheBoardofTrusteesoftheFederalOADSITrustFunds

2 SocialSecurityAdministration,2006

Sources of Retirement Income(for those age 65 and over, earning over $44,129 annually

Workers with Defined Benefit Pension Plans

)

EarnedIncome

InvestmentIncome

Pension

SocialSecurity

Other

Source: Morningstar Presentation Materials ©2007 Morningstar, Inc..All rights reserved. Used with permission.

Life Expectancy in the U.S.

Source: Population Division of the Department of Economicand Social Affairs of the United Nations Secretariat, 2005. World Population Prospects: The 2004 Revision.

Source: Center for Retirement Research at Boston College, June 2007

70%

60%

50%

40%

30%

20%

10%

0%

1980 1992 2004

60%

26%

11%

85

80

75

70

65

60

1950 1980 2005 2030 2050

Ag

e

40.1%

17.8%

21.2%

18.9%

2.0%

40.1%

17.8%

21.2%

18.9%

2.0%

40.1%

17.8%

21.2%

18.9%

2.0%

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Planningfor“TheNewRetirement”Annuities may offer appropriate answers to some of the challenges you could face in planning for retirement. In fact, millions of Americans have chosen annuities to help them chart a course toward their long-term financial goals. That’s because annuities are long-term insurance investments intended for your retirement planning. Quite simply, annuities are designed to help you accumulate money now in order to create a reliable stream of payments to you in the future, generally during retirement.

TheProSaver® Index Series Annuity~AnOpportunityforGrowthwithSecurityIndexed annuities are simply fixed annuities that offer new options for interest crediting. The ProSaver® Index Series Annuity, for example, provides interest-crediting options tied to the performance of the S&P 500 Index. Depending on the performance of the index, this may provide the opportunity to realize higher interest earnings than other fixed rate alternatives, while avoiding the risk of market losses that can occur with stock market investments.

Indexed annuities are not securities or stock market investments. Although indexed annuities may provide opportunities to earn interest linked to the performance of outside stock market indexes (like the S&P 500 Index), they do not participate in any stock or equity investments.

InterestearningPotentialSaving and growing your money over time is challenging enough — but it’s even more difficult when you consider the impact of inflation and taxes. That is why many investment professionals advise us to consider “real rates of return” – the “real” interest rate after inflation is considered.

For example, a fixed rate investment that offers a 5% annual interest rate may sound attractive. But if the inflation rate is 3%, your investment is earning a real return of just 2%. That may cause you to wonder if that will be enough to meet your long-term objectives. Perhaps even more concerning is that in some periods, the rate of inflation can be higher than the returns of various investments — meaning that you may actually realize negative real returns.

Another challenge is the long-term impact of taxes. Investments that offer tax deferral (like annuities) enable you to keep more of your money earning interest, compared to taxable investments that require you to pay taxes each year. This concept of tax-deferred growth is covered in more detail on page 10.

ProSaver®IndexSeries7

InterestearningsLinkedtotheS&P500IndexThe S&P 500 Index is one of the most commonly used benchmarks of U.S. equity markets. It is a market capitalization weighted index of 500 of the largest U.S. companies and includes a representative sample of leading companies in leading industries of the U.S. economy. This particular index is based on the stock prices of these companies and does not include dividends.

Over long periods of time, the S&P 500 Index has provided average annual returns greater than many other benchmarks, including many fixed rate alternatives. Equally important, it has outpaced the rate of inflation historically. By looking back over the last twenty years, this chart illustrates that point.

It’s important to point out that none of the returns illustrated above are directly applicable to an indexed annuity. However, the opportunity to earn interest that is in part linked to the returns of the S&P 500 Index may represent an attractive long-term opportunity. Keep in mind that the indexed interest is subject to limitations set by the insurance company.

In the ProSaver® Index Series Annuity you can earn indexed interest in one or more of the index-linked strategies in our Indexed Account. While interest crediting is linked to the performance of the S&P 500 Index, there are limitations set on how much interest will be credited. (We explain these limitations further in The Accounts Reference Guide and the Indexed Annuity Disclosure Statement and Acknowledgement Form.) However, since only the indexed interest rates are dependent on the S&P 500 Index, a decline in the index simply results in no interest being paid, rather than a loss of principal or prior earnings.

S&P 500 Index ComparisonAverage Annual Returns 1986-2006

10.72%

5.96%

4.90%

S&P 500 Index 5 yr Treasury 6 month CD

Rate of Inflation (CPI)2.92%

Source: Calculated by Protective Life using information and data from Standard& Poor’s, the Federal Reserve, and the Bureau of Labor Statistics. 6 month CD rates annualized using bank interest and based on average dealer bid. This chart is illustrative only and is not intended to forecast, imply, or guarantee the futureperformance of any investment. Past performance is no guarantee of future results.

Source:CalculatedbyProtectiveLifeusinginformationanddatafromStandard&Poor’s,theFederalReserve,andtheBureauofLaborStatistics.6monthCDratesannualizedusingbankinterestandbasedonaveragedealerbid.Thischartisillustrativeonlyandisnotintendedtoforecast,imply,orguaranteethefutureperformanceofanyinvestment.Pastperformanceisnoguaranteeoffutureresults.

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TheProSaver® Index Series Annuity~HowInterestCreditingWorks

InterestCreditingataGlance

Your ProSaver® Index Series Annuity provides two interest-crediting accounts to which you can allocate your contract value each contract year: the Fixed Account and the Indexed Account. Please see The Accounts Reference Guide and the Indexed Annuity Disclosure Statement and Acknowledgement Form for more important information on how interest is credited to the accounts.

Fixed Account:This option provides a rate of return that is guaranteed to remain the same until the next contract anniversary. The Fixed Account may not be available in all states.

Indexed Account:With the Indexed Account option, you have a choice of three different strategies among which to allocate your purchase payments. All strategies may not be available in all states.

Interest Rate Cap Strategy — On each contract anniversary, the indexed interest rate applicable to the Interest Rate Cap Strategy for the contract year just ended is equal to 100% of any increase in the S&P 500 Index during the contract year, up to a maximum of the indexed interest rate cap for that contract year.

Fixed Rate Plus® Strategy — This option earns interest daily at a fixed rate. In addition, it offers the potential to earn interest on each contract anniversary based on the performance of the index at a participation rate. Indexed interest is credited each contract anniversary at a rate equal to a specified percentage, called a participation rate, of any increase in the S&P 500 Index during the contract year.

Participation Rate Strategy — Indexed interest is credited each contract anniversary at a specified participation rate.

While both the Fixed Rate Plus and Participation Rate Strategies use a “participation rate”, the actual participation rates applied to each strategy are different.

ProSaver®IndexSeries�

Although it is impossible to predict the future performance of the S&P 500 Index, it is possible to get a picture of how the index has performed in past years. The following chart shows the annual returns for the index over a 20-year period, with indicators of how hypothetical interest crediting approaches may have limited actual interest crediting on an indexed annuity. As you can see, during that period, the S&P 500 Index has experienced several years of significant growth, other periods of notable losses, and still other years in which the index returns were moderate or even flat.

Source:CalculatedbyProtectiveLifeusinginformationanddatafromStandard&Poor’s.

Thischartisillustrativeonlyandisnotintendedtoforecast,imply,orguaranteethefutureperformanceofanyinvestment.Pastperformanceisnoguaranteeoffutureresults.Itdoesnotincludetheeffectoftaxesoranycharges.Surrenderchargesmayapplytoearlywithdrawals.TheS&P500Indexisamarketcapitalizationweightedindexof500ofthelargestU.S.companies(without dividends).Itisunmanagedandpurchaserscannotinvestdirectlyinit.TheProSaver® Index Series AnnuityisnotaninvestmentintheS&P500Index.

ThischartisintendedtobeusedsolelyasademonstrationofhowtheProSaver® Index Series Annuitymightwork.TheInterestRateCapStrategyassumesanindexedinterestratecapof7.00%eachyear.TheFixedRatePlusStrategyassumesa2.00%fixedrateandaparticipationrateof30%eachyear.TheParticipationRateStrategyassumesaparticipationrateof55%eachyear.Allreturnsareassumedonacalendarbasis,withasinglepurchasepaymentmadeonDecember31,1�86,withnoreallocations,withdrawals,orsurrenders.Additionalpurchasepaymentsandwithdrawalsorsurrendersofcontractvaluewouldchangetheresultsshown.Theparticipationrateandindexedinterestratecaparesubjecttochangeeachyear.

2.03%

11.43%

30.65%

26.31%

7.06%

35.20%

19.33%

31.01%

26.67%

19.53%

8.99%4.69%

11.65%

0%

-10%

-20%

-30%

10%

20%

30%

40%

Index vs. Strategy Performance

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

-8.19%

-1.57%

-12.66%-10.53%

-23.37%

26.38%

Interest Rate Cap StrategyFixed Rate Plus StrategyParticipation Rate Strategy

Interest Rate

1.12% 6.28% 16.86% 0.00% 14.47% 2.46% 3.88% 0.00% 19.36% 10.63% 17.05% 14.67% 10.74% 0.00% 0.00% 0.00% 14.51% 4.95% 2.58% 6.41%

7.00%2.03% 7.00% 0.00% 7.00% 4.46% 7.00% 0.00% 7.00% 7.00% 7.00% 7.00% 7.00% 0.00% 0.00% 0.00% 7.00% 7.00% 4.69% 7.00%

5.49%2.61% 5.43% 11.19% 2.00% 9.89% 3.34% 4.12% 2.00% 12.56% 7.80% 11.30% 10.00% 7.86% 2.00% 2.00% 2.00% 9.91% 4.70% 3.41%

Interest Rate Cap Strategy

Participation Rate Strategy

Fixed Rate Plus Strategy

4.46%

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Income taxes are one of the primary obstacles to accumulating wealth for retirement because they reduce the efficiency of compounding and thus the rate of growth. Annuities provide some control over when income taxes are paid as any earnings grow without taxation until they are withdrawn or distributed, at which time they will be taxed as ordinary income and may be subject to a 10% IRS penalty tax if taken prior to age 59 ½.

Tax-deferred accumulation means interest is earned on

1) principal

2) interest, and

3) amounts that otherwise would have been paid in taxes.

This increased efficiency may mean greater accumulation over time.

The Growth Phase chart below illustrates the impact of tax deferral with a hypothetical $50,000 purchase over a 30-year period, earning a constant 5% annual return (net of any expenses) for both the taxable and tax-deferred purchase.

0 10 20 30

$200,000

$100,000

Growth PhaseInitial Purchase Payment - $50,000

5% Assumed Annual Growth

0 5 10 20+15$ 500

Payout Phase

$1,000

$1,500$1,062monthly payments

Tax-Deferred Annuity

Taxable Investment

Years

$216,097

$150,874

$174,572

0 5 10 15 20 25 30

$300,000

$200,000

$100,000

Tax-Deferred Contract5% assumed return

Taxable Contract5% assumed return

After-taxannuity value

Assumes a uniform 25%federal income tax rateapplied annually to earnings

Growth PhaseInitial Purchase Payment - $50,000

Years

$216,097

$150,874

$174,572

OLD CHARTTax-Deferred Annuity(no taxes illustrated)Tax-Deferred Annuity(after payment of 25%federal income tax on earnings)

Taxable Investment(assumes 25% federalincome tax rate appliedannually to earnings)

Years

InitialPurchasePayment-$50,0005%AssumedAnnualGrowth

Thesechartsareforillustrativepurposesonlyandshouldnotbeviewedasrepresentativeofpast,currentorfutureperformanceoftheProSaver® Index Series Annuity.Illustratedratesareneitheranestimatenoraguaranteeforthefuture.Actualresultsmaybehigherorlower.Aportionoftheearningsfromtaxablecontractsmaybesubjecttolowermaximumtaxratesoncapitalgainsanddividends,whichmaybelowerthantheincometaxrateusedtocalculatetheresultsintheGrowthPhasechartabove.

ThePowerofTaxDeferral

ProSaver®IndexSeries11

The Payout Phase chart illustrates what happens when you annuitize (convert the value of your annuity into a stream of regular payments) the tax-deferred annuity after the 30-year growth phase. The tax-deferred annuity amount of $216,097 is converted into a stream of $1,062 monthly payments, based on a “payments for life” annuity option for a hypothetical 65-year old male at current annuity rates. Since the taxable contract doesn’t have the ability to generate a stream of annuity payments, its accumulated value of $150,874 quickly loses steam if withdrawals of $1,062 are made each month. At that pace it runs out of money after 16 years.

0 10 20 30

$200,000

$100,000

Growth PhaseInitial Purchase Payment - $50,000

5% Assumed Annual Growth

0 5 10 20+15$ 500

Payout Phase

$1,000

$1,500$1,062monthly payments

Tax-Deferred Annuity

Taxable Investment

Years

$216,097

$150,874

$174,572

0 5 10 15 20 25 30

$300,000

$200,000

$100,000

Tax-Deferred Contract5% assumed return

Taxable Contract5% assumed return

After-taxannuity value

Assumes a uniform 25%federal income tax rateapplied annually to earnings

Growth PhaseInitial Purchase Payment - $50,000

Years

$216,097

$150,874

$174,572

OLD CHARTTax-Deferred Annuity(no taxes illustrated)Tax-Deferred Annuity(after payment of 25%federal income tax on earnings)

Taxable Investment(assumes 25% federalincome tax rate appliedannually to earnings)

Years

InthePayoutPhasechart,monthlywithdrawalsof$1,062netaftertaxaremadefromthetaxableinvestment.Thetax-deferredannuityisassumedtohavebeenpurchasedwithafter-taxdollars(non-qualified funds),meaningthatannuitypaymentsareconsideredtobepartreturnofprincipalandpartearningsonprincipal.Onlytheearningsportionofeachannuitypaymentistaxableuntilprincipalisrecovered.Therefore,thetax-deferredannuitypayoutfiguresarebasedongrossmonthlylifetimeannuitypaymentsof$1,417,sufficienttogenerate$1,062netaftertaxwiththeapplicationofa25%federalincometaxonearnings.

Anannuitycontractmaybepurchasedonanon-qualifiedbasisorforusewithincertainqualifiedretirementplansorarrangementsthatreceivefavorabletaxtreatment,suchasindividualretirementaccountsandindividualretirementannuities(IRAs),pensionandprofit-sharingplans(including H.R. 10 Plans),andtax-shelteredannuityplans.Manyofthesequalifiedplans,includingIRAs,providethesametypeoftaxdeferralasprovidedbyanannuitycontractandtheannuitycontractdoesnotprovideanyadditionaltax-deferralbenefit.Anannuitycontracthowever,doesprovideanumberofotherbenefitsandfeaturesnotprovidedbysuchretirementplansorarrangementsalone.Purchasersshouldconsultaqualifiedtaxand/orfinancialadviserregardingtheuseofanannuitycontractwithinaqualifiedplanorinconnectionwithotheremployeebenefitplansorarrangements.

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Liquidityfeatures

The ProSaver® Index Series Annuity is a long-term investment intended for retirement planning. However, the liquidity features of the ProSaver® Index Series Annuity are designed to provide you with access to your money in case of need. Keep in mind that surrender charges apply during the initial term only. For more information about surrender charges please see the Annuity Reference Guide.

During the first contract year, you can withdraw a specified percentage of the initial purchase payment without surrender charge. After the first contract year, you can withdraw a specified percentage of the contract value as of the prior contract anniversary without surrender charge.

Withdrawals of earnings will be subject to income tax and may be subject to a 10% IRS penalty tax if taken prior to age 59 ½. Withdrawals will reduce future earnings.

Withdrawals in excess of the surrender charge-free-withdrawal amount will be subject to a declining surrender charge during the initial term only. Withdrawals or surrenders from our index-based crediting options prior to the contract anniversary receive no indexed interest for the contract year in which they occur.

The ProSaver® Index Series Annuity provides a Nursing Home/Terminal Illness Waiver (IPV-2115) that allows you to have access to your contract value without surrender charge if, after the first contract year, you are confined to a nursing home or diagnosed as terminally ill. Not available in all states. State variations may apply.

ReallocationofContractValue You may allocate your purchase payment among the Fixed Account and Indexed Account Strategies. You may reallocate your contract value on each contract anniversary. Please see the Indexed Annuity Disclosure Statement and Acknowledgement Form for more important information about reallocating your contract value.

MinimumAccumulatedContractValue A feature of the ProSaver® Index Series Annuity that ensures a minimum contract value in certain situations is called the Minimum Accumulated Contract Value (MACV). The MACV is applied only upon full surrender, annuitization (a stream of annuity payments) or at your death. This feature ensures that the value of your annuity (before surrender charges) in these situations will be the greater of Contract Value (including the Fixed Account and Indexed Account) or the MACV.

AdditionalfeaturesofaProSaver® Index Series Annuity

ProSaver®IndexSeries13

RegularannuitypaymentsthatcanlastalifetimeAnnuities have the ability to provide a stream of payments that can last a lifetime, similar in concept to payments received from an old-fashioned pension. These payments can be for life (no matter how long), for a specified period of time, or a combination of both. This benefit is unique to annuities and offers protection from outliving one’s assets. It is provided when the value of an annuity contract is converted into a stream of annuity payments. This process is known as “annuitization.”

If the annuity contract was purchased with “after-tax” dollars (non-qualified funds) then each annuity payment is generally considered to be part return of principal and part earnings on principal. Only the earnings portion of each payment is taxable until principal is recovered. Funds in tax-qualified plans will be taxed according to the rules applicable to such plans.

With the ProSaver® Index Series Annuity, you have a choice of payment options when you convert your annuity contract into a stream of annuity payments. These include:

Certain period: Payments continue for a specific period that you select, ranging from 5-30 years. The payments are not based on the life expectancy of the annuitant. If the annuitant dies before all payments have been made, any remaining payments continue at the direction of the beneficiary.

Payments for life: Payments continue as long as the annuitant is alive. Payments stop when the annuitant dies. If the annuitant dies shortly after payments begin, payments stop no matter how much or how little had been paid by the insurance company.

Payments for two lives: Payments continue as long as one of two annuitants (often spouses) is alive.

Payments for life (or two lives) with a certain period: Payments continue as long as an annuitant is alive, but payments will continue for at least a specific period of time that you select (ranging from 5 to 30 years) whether or not an annuitant is alive. This option ensures that, in the event of the death of the annuitant, payments continue at the direction of the beneficiary until the end of the specified period.

State variations may apply. Other options may also be available when you are ready to annuitize. Surrender charges do not apply on annuitization. Please see the Indexed Annuity Disclosure Statement and Acknowledgement Form for more important information about annuity payments.

PayoutfeaturesoftheProSaver® Index Series Annuity

14

AnnuityValueBenefit (IPV –2125)The Annuity Value Benefit, available at no additional charge, rewards contract holders for waiting to convert the value of their annuity contract into a stream of annuity payments. We will increase your annuity value by a specified percentage (based on contract value) if your annuity payments begin after a specified period of time. Please see the Indexed Annuity Disclosure Statement and Acknowledgement Form for more important information about this benefit.

In order to qualify for the Annuity Value Benefit, some annuity payment options may not be selected.

DeathBenefit If you die before converting your annuity into a stream of payments, we will waive any applicable surrender charges and provide your beneficiary the greater of the Contract Value or the Minimum Accumulated Contract Value. Any benefit payable upon death is transferred directly to named beneficiaries, avoiding the cost, delay, and publicity of probate. Income and estate taxes may apply. Please see the Indexed Annuity Disclosure Statement and Acknowledgement Form for more important information about the death benefit.

SpousalContinuationBenefitThe Spousal Continuation Benefit allows the surviving spouse who is the primary beneficiary to continue the contract rather than taking the death benefit. Please see the Indexed Annuity Disclosure Statement and Acknowledgement Form for important information about this benefit.

ProtectionfeaturesoftheProSaver® Index Series Annuity

[fol

d] [POCKET]

The tax treatment of life insurance and annuities is subject to change. Neither Protective Life nor itsrepresentativesofferlegalortaxadvice.Purchasersshouldconsulttheirattorneyortaxadviserregardingtheirindividualsituation.

TheProSaver® Index Series AnnuityisissuedbyProtectiveLifeInsuranceCompany(PLICO),2801Highway280South,Birmingham,AL35223.PolicyformnumbersIPD-2101,2102,2111,2118(and state variations thereof).Aflexiblepremiumdeferredfixedandindexedannuitycontract.Productfeaturesandavailabilitymayvarybystate.AllbenefitsandpaymentsaresubjecttotheclaimspayingabilityofPLICO.

ThisbrochureprovidesasummarydescriptionoftheProSaver® Index Series Annuity.TheexacttermsoftheProSaver® Index Series Annuityarecontainedinthecontractandanyattachedridersandendorsements,whichwillcontrolPLICO’scontractualobligations.

“S&P500”isatrademarkofTheMcGraw-HillCompanies,Inc.andhasbeenlicensedforusebyProtectiveLife InsuranceCo. TheProSaver® Index Series Annuity isnotsponsored,endorsed,soldorpromotedbyStandard&Poor’sandStandard&Poor’smakesnorepresentationregardingtheadvisabilityofinvestingintheProSaver® Index Series Annuity.

PAC.2044.06.07 www.protective.com 08/07

TheProSaver® Index Series Annuitycanhelpyoubuildamorecomfortableretirementandbeginto…

earnpotentiallyhigherinterestthanotherfixedratealternatives.

experiencethepoweroftaxdeferraltohelpyoupotentiallyaccumulatemorewealthovertime.

enjoyyourretirementyearsbyreceivingastreamofannuitypaymentsthatcanlastalifetime.