SMALL CAP INDEX ACCOUNT

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

Objective

The objective of this account is to seek investment results paralleling those of the MSCI® US Small Cap 1750 Index. It is invested solely in the Vanguard® Small-Cap Index Fund.

Investor Profile

The Small Cap Index Account may be suitable for investors with a very long-term investment horizon who are seeking long-term growth of capital through common stocks of small companies. Individuals must be willing and able to accept substantial change in unit price in the short, long and very long term.

Investment Strategy

The Vanguard Small-Cap Index Fund employs a "passive management" - or indexing - investment approach designed to track the performance of the MSCI® US Small Cap 1750 Index, a broadly diversified index of stocks of smaller U.S. companies. The fund attempts to replace the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting within the index. Prior to May 16, 2003, the fund's target index was the Russell 2000 Index. The fund's investment performance is compared to that of the Spliced Small Cap Index, which reflects the old target index prior to May 16, 2003, and the current target index thereafter.

Investment Considerations

The Small Cap Index Account takes a passive/index, unmanaged approach to investing in companies with small capitalizations. This account can be used by investors seeking to diversify a portion of their retirement planning account into the small cap market place with a passive/index (as opposed to an active) management strategy.

PORTFOLIO DATA

Asset Allocation (as of 12-31-2009)     Stocks 99.80% Short-term Reserves 0.20%   Key Facts (as of 12-31-2009)     Number of Stocks 1,748 Price/Earnings Ratio 170.0x Turnover Rate (Fiscal Year End December) 14.2 Foreign Holdings 0.2% Beta 3 year trailing (vs. Dow Jones U.S. Total Stock Market Index) 1.23   Top Ten Stock Holdings (as of 12-31-2009) Concentration   Range   Human Genome Sciences Inc. 0 %     Whiting Petroleum 0 %     Rovi Corp. 0 %     Oshkosh Corp. 0 %     MSCI, Inc.-Class A Shares 0 %     3Com Corp. 0 %     Tupperware Brands Corp. 0 %     Green Mountain Coffee Roasters Inc. 0 %     Corrections Corp. of America 0 %     AGL Resources Inc. 0 %     Top Ten Equals 2.5% of Portfolio   Top Sectors (as of 12-31-2009)       Financials 19.90 % Information Technology 17.60 % Industrials 16.10 % Consumer Discretionary 14.60 % Health Care 12.00 % Energy 6.10 % Materials 5.40 % Utilities 3.70 % Consumer Staples 3.60 % Telecommunication Services 1.00 % Total % of Common Stocks 100.00 % Vanguard Small Cap Index Fund* Average Annual Returns Annual Total Returns (as of 02-28-2010) (as of 12-31)           1 Month 4.97%     3 Months 9.45%     YTD 1.46%     1 year 74.77%     3 years (4.42)%     5 years 2.41%     10 years 3.10%                                     1994       (0.51)%     1995       28.74%     1996       18.12%     1997       24.59%     1998       (2.61)%     1999       23.13%     2000       (2.67)%     2001       3.10%     2002       (20.02)%     2003       45.63%     2004       19.90%     2005       7.36%     2006       15.64%     2007       1.16%     2008       (36.07)%     2009       36.12%