Sentry Employee Benefits - Fund Information

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DIVERSIFIED INCOME ACCOUNT

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

Objective

The objective of the Diversified Income Account is to earn a high level of current income consistent with moderate price fluctuation. It is invested solely in the T. Rowe Price Spectrum Income Fund®.

Investor Profile

The Diversified Income Account may be suitable for investors who are interested in pursuing high current income through a broadly diversified fixed-income investment to balance the risks of common stocks. Individuals must be willing and able to accept moderate changes in unit price both in the short and long term.

Investment Strategy

T. Rowe Price Spectrum Income Fund provides effective diversification across a wide range of income-oriented T. Rowe Price mutual funds. The mix of underlying funds will be relatively stable in the short term and will change slowly over time, reflecting long-term forecasts for the economy, financial markets and relative market valuations of the underlying funds. This is not a high-risk market timing fund in which your money is moved to speculate on predicted short-term market shifts.

Investment Considerations

The principal value of the Diversified Income Account is subject to moderate declines when interest rate levels rise. This fluctuation is lessened by the broadly diversified, professionally managed portfolio of underlying T. Rowe Price mutual funds. The Diversified Income Account may be appropriate as a single alternative for conservative investors or may be used in combination with other accounts to pursue more aggressive investment objectives.

PORTFOLIO DATA

Asset Allocation (as of 06-30-2008)

Bonds 82.10%
Equities 14.10%
Reserves 3.10%
Convertibles and Non-Convertibles 0.70%

Key Facts (as of 06-30-2008)

Average Duration 4.8 years
Turnover % (12 Month) 11.4%
Standard Deviation as of 12-31-2007 3.75%

Holdings (as of 06-30-2008) Concentration Range
TRP New Income Fund 24.00 % 15-30% 30
TRP High Yield Fund 17.00 % 10-25% 25
TRP Equity Income Fund 14.70 % 5-20% 20
TRP GMNA Fund 13.20 % 5-20% 20
TRP International Bond Fund 12.50 % 10-25% 25
TRP Short-Term Bond Fund 9.50 % 0-15% 15
TRP U.S. Treasury Long-Term Bond Fund 3.60 % 0-10% 10
TRP Emerging Markets Bond Fund 3.00 % 0-15% 15
TRP Corporate Income Fund 2.40 % 0-10% 10

T. Rowe Price Spectrum Income Fund*

Average Annual Returns Annual Total Returns

(as of 07-31-2008) (as of 12-31)

1 Month 0.20%
3 Months (2.16)%
YTD (1.08)%
1 year 2.86%
3 years 4.73%
5 years 6.28%
10 years 5.93%

1994       (1.94)%
1995       19.41%
1996       7.64%
1997       12.18%
1998       6.57%
1999       0.26%
2000       7.40%
2001       4.59%
2002       6.86%
2003       14.96%
2004       8.05%
2005       2.09%
2006       8.38%
2007       6.19%

* T. Rowe Price charges no fees for its Spectrum Income Fund. The fund indirectly bears the pro rata of fees and expenses incurred by the underlying Price funds, based on current holdings, was 0.70 percent per year. The investment manager for the T. Rowe Price Spectrum Income Fund is Edmund M. Notzon, Ph.D., CFA. *Performance figures for the T. Rowe Price Spectrum Income Fund include the reinvestment of all dividends and capital gain distributions. All returns are net of mutual fund expenses. Money invested by participants in the Sentry Life Diversified Income Account is then invested by Sentry Life Insurance Company or Sentry Life Insurance Company of New York into the underlying mutual fund. A separate account fee for sales, marketing, taxes, account compliance, overhead and legal/audit fees will be applied to this Separate Account. The separate account fee is reduced by the T. Rowe Price administrative fee payment remitted to Sentry of .05% annualized. The separate account fee will reduce the total returns of the Separate Account quoted above. The information contained in this fact sheet is for illustrative purposes only and is not an indication of future composition or performance. The investment return and principal value of this Separate Account will fluctuate along with changes in the T. Rowe Price Spectrum Income Fund so that units, when redeemed, may be worth more or less than their original cost. Past performance is not a guarantee of future results. Sentry Life Insurance Company, Stevens Point, Wisconsin (products not available in all states)

Sentry Life Insurance Company of New York, Syracuse, New York (products available in New York Only)

Sentry’s property and casualty insurance coverages are underwritten by Sentry Insurance a Mutual Company, or its subsidiaries and affiliates Sentry Select Insurance Company, Middlesex Insurance Company, or Patriot General Insurance Company; Stevens Point, Wisconsin, and Sentry Lloyds of Texas, Round Rock, Texas. Companies not licensed in all states. Life insurance, pensions and group products are issued and administered by Sentry Life Insurance Company, Stevens Point, Wisconsin. In the State of New York, life insurance, pensions and group products are issued and administered by Sentry Life Insurance Company of New York, Syracuse, New York. Policies, coverages, and discounts are not available in all states.

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