Protective Life Introduces ProtectiveRewards® Elite Variable Annuity

New Product Answers Consumer Demands for More Value

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Protective Life Insurance Company announced on Monday the addition of a new variable annuity to their already expansive line of annuity products. The ProtectiveRewards^® Elite variable annuity, an innovative new “L-share” contract, became available for sale beginning November 3, 2008, subject to state availability.

“Consumers are looking for multi-faceted product solutions- products that are flexible enough to help meet their needs in retirement regardless of what unexpected events may occur”

ProtectiveRewards Elite is designed to answer the increasingly discriminating demands of annuity buyers who understand the significant role variable annuities can play in planning for long-term retirement needs, but who also require a balance of innovative product features along with competitive fee structures.

“In today’s market, consumers want it all- competitively priced products, liquidity features, guaranteed lifetime income provisions and innovative features that add value to their retirement portfolio,” said Eric Miller, Vice President and National Marketing Director for Protective’s Life and Annuity Division.

With the introduction of ProtectiveRewards Elite, Protective Life stands poised to answer all of these requirements. A total annual charge of 1.50% for mortality and expense risk charges and administration charges places ProtectiveRewards Elite as a competitively priced L-share product, and a 3-year surrender charge period assures buyers that they will have short-term access to their account value should unexpected needs arise.

Furthermore, the ProtectiveRewards Elite variable annuity offers access to the innovative SecurePay suite of guaranteed lifetime withdrawal benefits which can offer purchasers a lifetime stream of payments along with industry-leading features such as SecurePay R72^SM (an optional 7.2% compounding annual roll-up benefit), RightTime^SM (an option to buy the rider at issue or at a later date), SecurePay ME^® (an option that may result in higher annual withdrawal amounts for clients with qualifying medical conditions), SecurePay NH^SM (a feature which can provide increased annual withdrawal amounts for qualifying clients who are confined to a nursing care facility) and a Guaranteed Minimum Accumulation Benefit (which offers clients an additional safety net in the form of a “return of purchase payments” guarantee).

“Consumers are looking for multi-faceted product solutions- products that are flexible enough to help meet their needs in retirement regardless of what unexpected events may occur,” Miller continued. “The introduction of ProtectiveRewards Elite further exemplifies Protective Life’s commitment to develop products with innovation and consumer value in mind.”

Financial advisors will find the product changes to be agreeable as well. In addition to offering a consumer-friendly product to meet their client’s needs, ProtectiveRewards Elite can better meet the advisor’s needs with product compensation options that more closely match the growing orientation towards asset based fees than previous designs.

Consumers are encouraged to contact their insurance and financial advisors for more information about the ProtectiveRewards Elite variable annuity as well as Protective Life’s other life insurance and annuity products. These products are designed to help address critical needs throughout various stages of the financial lifecycle, and may play meaningful roles in building, protecting, distributing and transferring wealth.

Financial Advisors interested in selling the ProtectiveRewards Elite variable annuity should check with their Broker/Dealer regarding availability or contact the Protective Annuity Sales Desk at [phone] for more information.

Important Consumer Information

Purchase of the SecurePay Withdrawal Benefit, SecurePay R72 withdrawal benefit or the Guaranteed Minimum Accumulation Benefit has certain requirements and restrictions, is available at an additional cost, and will affect the underlying annuity contract features. For complete details, please read the prospectus. Subject to state availability.

Variable annuity contracts issued by Protective Life Insurance Company (PLICO). Securities offered by Investment Distributors, Inc. (IDI). 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 the contractual obligations of PLICO or IDI.

Policy form number IPV-2112 and -2113 (and state variations thereof). Flexible premium deferred variable and fixed annuity contracts. Product features and availability may vary by state. SecurePay and SecurePay R72 benefits provided by rider form number IPV-2154 and IPV-2157 (and state variations thereof). SecurePay ME option provided under form number IPV-2156 (and state variations thereof.) SecurePay NH feature provided under form number IPV-2158 (and state variations thereof). Guaranteed Minimum Accumulation Benefit (GMAB) provided under policy form number IPV-2159 (and state variations thereof).

All guarantees are subject to the claims-paying ability of Protective Life Insurance Company.

Keep in mind that variable annuities are long-term investments intended for retirement planning and involve market risk and the possible loss of principal. Investments in variable annuities are subject to fees and charges from the insurance company and the investment managers.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a variable annuity, any GMWB rider, and the underlying investment options before investing. This and other information is contained in the prospectuses for a variable annuity and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting PLICO at [phone].

About Protective Life Insurance Company

Protective Life Insurance Company was established on a profound belief in the American dream. Since 1907, Protective Life Insurance Company has remained true to its core beliefs: quality, serving people, and growth. This unwavering commitment to treating people the way we would like to be treated has been rewarded with stable, long-term relationships and growth. Today, Protective Life is one of the nation’s leading insurance companies, proving the wisdom of our Company’s vision: Doing the right thing is smart business.^®