BALANCED INCOME ACCOUNT

Following is a summary of information about the Sentry Balanced Income Account. Investors are advised to learn key data about an investment prior to making any investment decision.

Objective

The objective of the Balanced Income Account is to earn a high level of income, long-term growth of income, and moderate long-term growth of capital. This account is invested solely in the Wellesley Income Fund®.

Investor Profile

The Balanced Income Account may be suitable for investors with a long-term investment horizon who are seeking a high level of income, long-term growth of income and moderate long-term growth of capital. Individuals must be willing and able to accept changes in unit price both in the short and long term.

Investment Strategy

Vanguard® Wellesley® Income Fund typically invests between 60 and 70 percent of its total assets in high-quality, long-term bonds with the balance held in dividend-paying common stocks. Long-term bonds provide relatively stable income, but are very sensitive to interest rate changes. Common stocks chosen primarily for their dividend income tend to be less risky than common stocks that do not pay dividends. Up to 10 percent of its equity assets may be invested in foreign securities.

Investment Considerations

The principal value of the Balanced Income Account is subject to fluctuation given a large percentage of assets are high-quality, long-term bonds. While these bonds provide attractive yields, when interest rates rise, the value of bonds, and therefore the value of the account, will decline. The Balanced Account may be appropriate as a stand-alone investment or when used with other accounts to increase or decrease risk and potential returns.

PORTFOLIO DATA

Asset Allocation (as of 06-30-2008)     Bonds 62.72% Stocks 35.99% Short-term Reserves 1.29%   Key Facts (as of 06-30-2008)     Number of Stocks 53 Price/Earnings Ratio 12.1x Foreign Stock Holdings 5.5% Number of Bonds 297 Average Duration 6.0 years Beta 3 year trailing (vs. Dow Jones Wilshire 5000) 0.27 Standard Deviation as of 12-31-2007 5.25%   Top Ten Stock Holdings (as of 06-30-2008) Concentration   Range   FPL Group, Inc. 0 %     Chevron Corp. 0 %     AT&T Inc. 0 %     General Electric Co. 0 %     Verizon Communications, Inc. 0 %     U.S. Bancorp 0 %     Total SA ADR 0 %     PNC Financial Services Group 0 %     BP PLC 0 %     Kimberly-Clark Corp. 0 %     Top Ten Equals 38.5% of Equities Top Ten Equals 13.8% of Total Net Assets   Distribution by Issuer (as of 06-30-2008)       Industrial 32.90 % Finance 30.30 % Utilities 9.10 % Foreign 8.60 % Treasury/Agency 8.10 % Government Mortgage-Backed 5.90 % Other 4.90 % Asset-Backed 0.20 % Total % of Bonds 100.00 % Vanguard Wellesley Income Fund* Average Annual Returns Annual Total Returns (as of 07-31-2008) (as of 12-31)           1 Month 0.15%     3 Months (3.81)%     YTD (4.37)%     1 year (1.09)%     3 years 4.23%     5 years 5.96%     10 years 6.20%                                     1994       (4.44)%     1995       28.91%     1996       9.42%     1997       20.19%     1998       11.84%     1999       (4.14)%     2000       16.17%     2001       7.39%     2002       4.64%     2003       9.66%     2004       7.57%     2005       3.48%     2006       11.23%     2007       5.61%