For financial adviser use only

Flexible Guarantee BondIt’s not your average investment bond

Great features for your clientsOur Flexible Guarantee Bond offers the following:

2An investment solution from LV=

Capital guarantee, buy

anytime

Ability to lock in gains

Guaranteed minimum death and terminal

illness benefit

Guarantee available on three fund

options

Can buy a new guarantee when one expires, for life

Potential for mutual bonuses to be added, on top of normal

returns

£ Benefits

Averaging approach, for a smoother return

Competitive AMC

Available for ages 17 or over (lives assured from 3 months to 89 years)

Invest between £5,000 and £500,000

Option to buy a guarantee over a range of terms at any time to protect capital or lock in growth

Guarantee options available for the lifetime of the bond

Open-ended (recommend investing for at least five years)

Freedom to switch between three fund options to help meet changing investment needs

Choice of ad-hoc and regular withdrawals monthly, quarterly, half-yearly or yearly first 5% of amount invested, or rolled up 5% allowance, withdrawn each bond year

= no income tax payable at that time

Range of adviser charging options

Flexibility 3

No nasty surprises100% allocation across all agesAnnual management charge Based on the bond value (including any mutual bonus) at the time the

charge is taken and deducted monthly:

No initial, establishment or exit chargesFund switches the first three each bond year are free of charge £25 charge for each additional switch

Transparent charging 4

Key benefitsCan buy at the start, at any time after, or replace an

existing one any timeProtects the value of the bondRange of terms available (5-10 years)

Lock in gains by buying a new guaranteeThere’s no need to cash in at end of the guarantee term We automatically add units to make up any shortfall Any units we add continue to participate in bond performance (but the value isn’t

guaranteed, unless your client buys another guarantee)When the guarantee ends, a new one can be bought We’ll always offer at least a ten year guarantee on all three fund options for the lifetime

of the bond If your client cashes in the bond before the guarantee date, they’ll get the value of the

bond at the date of withdrawal

Future advice and added value opportunities

Capital guarantee option 5

Wide range of terms and competitive charges

Our guarantee charges and available terms can change over time

However, once bought, the charge remains the same throughout the guarantee term

We commit to always offer at least a 10 year guarantee option on all three funds

Current guarantee charges and terms* 6

FUND OPTION

5 YEARS 6 YEARS 7 YEARS 8 YEARS 9 YEARS 10 YEARS

Cautious Series 2

1.70% 0.90% 0.70% 0.50% 0.40% 0.25%

Balanced Series 2

n/a 2.20% 1.70% 1.30% 1.00% 0.80%

Managed Growth

n/a n/a 2.50% 2.00% 1.70% 1.50%

*As at 28/02/2014. Quoted charges are annual figures.

Let’s take a look at some ways to use our bond:Investment protection Fit with capacity for loss requirements. Provide potential for countering inflation impacts

with the certainty provided by capital guarantee options and potential for mutual bonuses

Life stage adaptability Fit with life stage e.g. requiring lower risk in retirement or if reserving funds for planned

expenses, such as school/university fees

Growth lock-in Instigate a growth lock-in strategy with periodic reviews to assess opportunity to secure

growth achieved (apart from the guarantee charge, there is no charge for buying a new guarantee once a bond year. A charge of £25 thereafter is applied)

IHT planning Provides additional certainty to investors and trustees, whilst the bond structure eases the

administration for trustees (for those up to age 79 at outset, a minimum death benefit guarantee applies for no extra charge, irrespective of whether a capital guarantee has been bought)

Tax planning Bond structure allows tax planning opportunities, particularly for Higher Rate Taxpayers

Typical uses 7

LV= a compelling choiceThe UK’s largest friendly societyProudly ‘mutual’, with no shareholders eating into profits£11.4bn assets under management³

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

Over 5 million members & customers³Looking after members since 1843

Who backs the guarantee?Our guarantees are backed wholly by the strength of Liverpool Victoria Friendly Society (LVFS)The reserves to cover the guarantees are held in our main With-Profits fund, outside of the individual fund options

Financially strong and stableMain with-profits fund rated

10/10 by Cazalet Consulting

8

Sources: 1. AKG Consultation Company Profile & Financial Strength report, July 20132. Cazalet Consulting With Profits ratings, July 20143. As at 31 December 2013

A range of options to suit you and your clients:

Adviser charging options 9

Initial adviser charge £ amount, % of cheque amount Paid before the remainder is invested in the bond

Ongoing adviser charge £ amount, % of initial premium, % of fund (excluding

mutual bonus) Monthly, quarterly, half-yearly, yearly Treated as withdrawals

Ad-hoc adviser charge £ amount, % of fund value (excluding mutual bonus) Treated as withdrawals

• Choose one of three funds

• Mix of equities, commercial property, fixed interest, cash

• Money is invested in the LV= with-profits fund

• Latest asset mixes available online

• Unlimited fund switches

• Actively managed by Threadneedle Investments

Investment information

Investment choices 10

Cautious Series 2

Balanced Series 2

Managed Growth

*benchmark asset split

What does it do?Designed to provide a smoother, more consistent return

Can reduce the extent of underlying falls in value, however, unsmoothed funds will reflect increases in the market more quickly than smoothed funds

Average value (‘Averaged Price’) of bond assets over the preceding 26 weeks

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

No Market Value Reductions

Fund protection only if Underlying Price falls below 80% of the Averaged Price

Averaging in actionThe graph below illustrates how the effect of averaging can work in practice, showing both the underlying and averaged prices over a period of time. The prices and timeframes are used purely to display the effect of averaging. They are not based on real past performance nor are they a guide to future performance.

Averaging approach 11

It’s great being a mutualHere’s some information about our mutual bonus:

Rewards qualifying members for their ownership of LV=

Launched in 2011, we’d like to be able to add a 1% bonus each year

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

It’s a pure addition, on top of the normal returns applied to the bond

Invested in the same fund option as the main bond

It doesn’t get taken into account when we assess how much we uplift the bond by if it’s lower in value at the end of the guarantee term (if chosen)

Please note that the mutual bonus may be reduced or taken away. However, we’d only do this in exceptional circumstances.

Mutual bonus 12

Member discountsAll of our members qualify for discounts on a range of LV=‘s general insurance products including:

Car insurance Save up to 10% on regular non-member

ratesHome insurance Save up to 10% on regular non-member

rates

Member supportOur Member Care Line offers free access to confidential advice and support from qualified professionals 24 hours a day, 7 days a week, including:

Health, medical and lifestyle questions Provided by a team of qualified nurses who

offer advice and guidance

Counselling The Member Care Line has trained and

experienced counsellors on hand to take calls anytime, day or night

Legal questions and disputes Members can seek advice from a team of

experienced solicitors and legal executives

Member benefits 13

We’re here to make life easier for youPersonalised quotes Either from our quotes hotline Or contact your dedicated account manager

Dedicated website Order customer packs View, download and order a range of web-friendly

customer guides and adviser sales aids Loan Trusts, Gift Trusts and guides Suitability report paragraphs

Personal support Team of dedicated account managers Sales support for quotes and information

Support for you 14

Contact Us

Phone: 0800 0234 173 Email: bond.quotes@LV.com

Visit: www.LV.com/adviser/fgb

Important notes

This is for financial advisers only

Not to be used after 31 March 2015

This presentation is based on our understanding of current legislation as at August 2013 applicable in England and Wales and HM Revenue & Customs practice which may change in the future. We cannot accept responsibility for any action arising as a result of the information contained in this presentation.

Liverpool Victoria Friendly Society Limited, Keynes House Tilehouse Street, Hitchin, Herts, SG5 2DX.

LV= is a registered trademark of Liverpool Victoria Friendly Society Limited (LVFS) and is a trading style of the Liverpool Victoria group of companies. LVFS is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth BH1 2NF. Tel: 01202 292333.

21444101 09/14

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