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Protective Life Launches ProtectiveRewards Variable Annuity; Next-Generation Design Stresses Long-Term Consumer Value.

BIRMINGHAM, Ala. -- Protective Life Insurance Company (NYSE NYSE

See: New York Stock Exchange
:PL) today announced the introduction of a new variable annuity Variable Annuity

An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio.
 designed to help people more effectively prepare for and live through retirement. The new annuity, ProtectiveRewards(SM), combines competitive contract fees, innovative features designed to reward long-term investors Long-term investor

A person who makes investments for a period of at least five years in order to finance his or her long-term goals.
, and guaranteed income options in retirement.

"We had one overriding objective in the development of ProtectiveRewards(SM)- to build a next-generation variable annuity designed to reward long-term investors focused on both accumulating wealth today and ensuring retirement income in the future," said John B. Deremo, Senior Vice President of Protective's Institutional Distribution Group. "We believe we hit that mark with ProtectiveRewards(SM)."

"ProtectiveRewards(SM) takes a back to basics approach to variable annuity investing, focusing on long-term consumer value," said Eric Miller Eric Miller is the name of:
  • Eric Miller (musician), American DJ
  • Eric Miller (rugby player) (born 1975), Irish rugby player
  • Eric Miller (businessman) (1927–1977), English businessman, Chairman of Peachey Properties
, Vice President, National Marketing Director for Protective's Institutional Distribution Group. "We are very excited about ProtectiveRewards(SM). Financial representatives have asked for lower contract fees, meaningful features, and more consumer value. We have answered that call with ProtectiveRewards(SM)."

ProtectiveRewards(SM) includes the following features and benefits:

--Competitive Mortality and Expense Risk Charge Mortality And Expense Risk Charge

A variable annuity fee included in certain annuity or insurance products which serves to compensate the insurance company for various risks it assumes under the annuity contract.

Mortality and Expense Risk Charge is just 0.95% (on an annualized annualized

Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared.

--Persistency Reward (IPV-2127)

Designed to reward long-term contract holders during the accumulation phase, the Persistency Reward essentially reduces the ongoing cost of owning ProtectiveRewards(SM). It provides a reward (based on the value of amounts allocated to the variable sub-accounts) of:

--2.00% on the 8th contract anniversary,

--An annual reward of 0.20% beginning with the 9th contract anniversary and continuing until the 15th contract anniversary,

--An annual reward of 0.40% beginning with the 16th contract anniversary and continuing until the Annuity Commencement Date.

--Annuity Value Bonus (IPV-2125)

Designed to reward long-term contract holders who decide to annuitize their contract. It provides a bonus of 2.00% (based on the Contract Value) upon annuitization on or after the 10th contract anniversary. (Limitations and qualifications apply; see a prospectus for complete information.)

--Minimum Annuity Value Benefit (IPV-2124)

Designed to help protect contract holders who know they want to annuitize their contract. It guarantees a minimum value upon annuitization on the 7th contract anniversary. (Limitations and qualifications apply; see a prospectus for complete information.)

--Innovative Death Benefit Fee Options (IPV-2121, -2122, - 2123)

Offers a choice of three innovative fee options for any optional death benefit selected - an Asset Based Fee, a Death Benefit Based Fee, or a Net Amount at Risk Fee.

About Protective

Protective Life Corporation, the parent company of Protective Life Insurance Company, was established on a profound belief in the American dream American dream also American Dream
An American ideal of a happy and successful life to which all may aspire:
. Since 1907, Protective Life Insurance Company has remained true to its core values: Quality, Serving People, and Growth. This unwavering commitment to doing the right thing for the people we serve has been rewarded with stable, long-term relationships and continuous growth. Today, Protective Life Corporation and its subsidiaries have over 2,500 employees nationwide, each dedicated to proving the wisdom of our collective vision: Doing the right thing is smart business(R).

All guarantees, including income payments and death benefits are subject to the claims paying ability of Protective Life Insurance Company.

Variable annuities Variable annuities

Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio.
 are long-term investments intended for retirement planning Retirement financial planning refers to a collection of systems, methods, and processes which, in their aggregate, support a family unit's (client's) desire to achieve a state of financial independence, such that the need to be gainfully employed is optional. . They involve the risk of investing in equity securities, including market risk and loss of principal. Investments in variable annuities are subject to fees and charges from the insurance company and the investment managers. Withdrawals of earnings will be subject to income tax and may be subject to a 10% IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws.  penalty tax if taken prior to age 59 1/2. Early withdrawals will reduce net earnings.

Variable annuities issued by Protective Life Insurance Company (PLICO PLICO Physician Liability Insurance Company ). Securities offered by Investment Distributors, Inc. (IDI IDI ICC (International Cricket Conference) Development International Conference)
IDI Israel Democracy Institute
IDI I Doubt It
IDI Initial Domain Identifier
IDI In-Depth Interview
). Both located at 2801 Highway 280 South, Birmingham, AL 35223. PLICO and IDI are each subsidiaries of Protective Life Corporation. Protective Life Corporation is a separate company and is not responsible for the financial condition or contractual obligations of PLICO or IDI.

Policy form numbers IPV-2112, -2113 (and state variations thereof). A flexible premium deferred variable and fixed annuity Fixed Annuity

An insurance contract in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal.

Product features and availability may vary by state.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the ProtectiveRewards(SM) variable annuity and its underlying investment options before investing. This and other information is contained in the prospectuses for the ProtectiveRewards(SM) variable annuity and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting PLICO at (800) 456-6330.
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Publication:Business Wire
Date:Jul 6, 2004
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