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For Producer and Registered Representative only. Not for use with clients. UN 1830 3-14.

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Presentation on theme: "For Producer and Registered Representative only. Not for use with clients. UN 1830 3-14."— Presentation transcript:

1 For Producer and Registered Representative only. Not for use with clients. UN

2 For Producer and Registered Representative only. Not for use with clients. the Ameritas life and annuity portfolio – what’s our story? Bob Jurgensmeier SVP, Chief Actuary Ameritas Life Insurance Corp.

3 For Producer and Registered Representative only. Not for use with clients. disclosures There are charges for insurance coverage. Products and riders may not be available in all states. Optional provisions and riders may have limitations, restrictions and additional charges. Policy guarantees are based upon the claims-paying ability of the issuing company. Ameritas Life Insurance Corp. issues the following life products in approved states: Excel Index UL (Form 3009)Excel Plus Index UL (Form 3016) Keystone Foundation Whole Life (Form 3015)Keystone Whole Life (Form 3013) Keystone Term (Form 3011) Ameritas Life Insurance Corp. issues the following annuity products with available riders listed below in approved states: Compass Index Annuity (Form 2704)Overture Medley® Variable Annuity (Form 4888) - Guaranteed Lifetime Withdrawal Benefit (form GLWBIA)- Guaranteed Lifetime Withdrawal Benefit 2 (Form GLWBRVA) Ameritas Life Insurance Corp. of New York issues the following products in New York: Excel Index UL (Form 5009)Keystone Term (Form 5011) Keystone Foundation Whole Life (Form 5001 NY) Keystone Whole Life (Form FA 8612 NY) Compass Flexible Premium Deferred Annuity (Form 5704)

4 For Producer and Registered Representative only. Not for use with clients. disclosures Variable annuities are suitable for long-term investing, especially for retirement, and are subject to investment risk, including loss of principal. Before investing, carefully consider the investment objectives, risks, charges and expenses, and other important information about the policy issuer and underlying investment options. This information can be found in the policy and investment option prospectuses. The Guaranteed Lifetime Withdrawal Benefit 2 (GLWB2) and Guaranteed Lifetime Withdrawal Benefit (GLWB) rider are designed to help your clients protect retirement assets from market downturns and potentially eliminate the risk of outliving retirement income. The GLWB2 rider is available on new issues of Overture Medley® variable annuity (Medley), issued by Ameritas Life Insurance Corp. (Ameritas Life) and the GLWB rider is available on new issues of Compass index annuity (Compass). Variable annuities can be an integral part of your clients’ long-term retirement planning strategy, helping them overcome risks and provide important optional benefits to help protect their financial future. Variable annuities offer professionally managed investment options, guaranteed death benefits and payment options to help your clients meet their retirement income needs. Clients should always read the prospectus before investing to make sure they understand the risk and charges involved. Guarantees are based upon the claims-paying ability of the issuing company and do not apply to the investment performance or account value of the underlying variable portfolios.

5 For Producer and Registered Representative only. Not for use with clients. disclosures The information presented here is not intended as tax or other legal advice. For application of this information to your client’s specific situation, consult an attorney or tax professional. Withdrawals from tax-deferred annuities are taxed as ordinary income. For individuals less than age 59½, IRS penalties may apply. IRAs or other qualified plans must meet minimum distribution requirements beginning at age 70½. For life insurance, withdrawals and loans will reduce available death benefit and policy value. Withdrawals beyond the investment in the contract may be taxable income. Excessive and unpaid loans will reduce death benefits and policy value and may cause the policy to lapse. If a policy lapses, unpaid loans are treated as distributions for tax purposes. This information is provided by Ameritas®, which is a marketing name for subsidiaries of Ameritas Mutual Holding Company, including, but not limited to, Ameritas Life Insurance Corp., Ameritas Life Insurance Corp. of New York and Ameritas Investment Corp., member FINRA/SIPC. Ameritas Life Insurance Corp. is not licensed in New York. Each company is solely responsible for its own financial condition and contractual obligations. For more information about Ameritas®, visit ameritas.com. Ameritas® and the bison design are registered service marks of Ameritas Life Insurance Corp. Fulfilling life® is a registered service mark of affiliate Ameritas Holding Company. ©2014 Ameritas Mutual Holding Company

6 For Producer and Registered Representative only. Not for use with clients. comparison disclosures Products selected for comparison in this presentation were the top index universal life policies and whole life and term life insurance companies (excluding survivorship policies) in industry sales in 3 rd Quarter 2013 YTD. Our source is competitor illustrations obtained by Ameritas Life and believed to be accurate effective February In addition, the products selected for comparison may offer riders and/or features that are not discussed or included in this presentation. The comparisons in this presentation are for producer use only and may not be used with a prospective or current client. This is a summary only and is not a contract of coverage from any insurance company. Refer to the actual policies for full descriptions of the benefits. Certain provisions may vary by state.

7 For Producer and Registered Representative only. Not for use with clients. perception #1 Ameritas whole life products can’t compete with big name mutual companies

8 For Producer and Registered Representative only. Not for use with clients. whole life protection CompanyProductPremium Premium Rank Guaranteed Cash Year 5 Year 5 Guaranteed Cash Year 20 Year 20 AmeritasKeystone Whole Life$6,2452$19,5002$141,0002 Guardian LifeL121$6,5903$19,6805$141,4053 MassMutualWhole Life Legacy 100$7,5106$20,3606$147,1006 MetLifePromise Whole Life 120$6,7854$20,0004$140,5004 New York LifeWhole Life AD 113$8,8657$21,5457$146,7557 Ohio NationalPrestige Value III$6,1551$19,6851$140,5901 Penn MutualFlexible Choice WL$7,3405$22,5003$146,0005 Female, age 45 preferred with $500,000 Face Amount. Products selected by top selling whole life carriers 3 rd Qtr YTD 2013 according to LIMRA. Source: Competitor illustrations obtained by Ameritas Life and believed to be accurate effective Feb Cash values and internal rate of returns are based on the companies’ current dividend rate.

9 For Producer and Registered Representative only. Not for use with clients. whole life accumulation CompanyProduct Guaranteed Cash Yr 5 Rank Guaranteed Cash Yr 10 Rank Guaranteed Death 100 Rank AmeritasKeystone Foundation WL$40,9131$94,0861$770,8582 Guardian LifeL99$33,7194$87,4834$762,4113 MassMutualWhole Life Legacy 100$34,3203$89,1713$735,8824 MetLifePromise Whole Life$31,7156$79,2437$703,1376 New York LifeWhole Life AD 113$31,7087$81,7265$678,9967 Ohio NationalPrestige 100$32,0265$81,1376$710,4895 Penn MutualFlexible Choice WL$36,5642$92,7112$776,3601 Female, age 45, preferred with $10,000 premium in all years; 70/30 Base & PUA Rider. Products selected by top selling whole life carriers 3 rd Qtr YTD 2013 according to LIMRA. Source: Competitor illustrations obtained by Ameritas Life and believed to be accurate effective Feb Cash values and internal rate of returns are based on the companies’ current dividend rate.

10 For Producer and Registered Representative only. Not for use with clients. whole life limited pay CompanyProduct Guaranteed Death Age 65 Rank Current Death 65 Rank Guar anteed Cash Age 65 Rank Current Cash Age 65 Rank AmeritasKeystone Foundation WL$664,4761$799,5093$306,7061$379,3915 Guardian LifeLife Paid Up at 65$525,7315$717,7407$255,7105$372,6887 MassMutualWL Legacy 20$585,8502$780,4275$284,9522$379,3333 MetLifePromise WL Select 65$540,9354$806,7632$259,6494$393,3082 New York LifeCustom Whole Life$487,3446$746,1646$236,5576$373,9626 Ohio NationalPrestige Max$355,6357$789,7714$170,6167$378,8924 Penn MutualFlexible Choice WL$581,6563$851,6841$279,1953$415,8121 Female, age 45, preferred with $13,000 premium for 20 years. Products selected by top selling whole life carriers 3 rd Qtr YTD 2013 according to LIMRA. Source: Competitor illustrations obtained by Ameritas Life and believed to be accurate effective Feb Cash values and internal rate of returns are based on the companies’ current dividend rate.

11 For Producer and Registered Representative only. Not for use with clients. perception #2 Ameritas IUL products deliver less performance than many top Index Universal Life policies

12 For Producer and Registered Representative only. Not for use with clients. Step 1: Perception (based on default illustrated rates) head to head… beyond illustrations Cash Ameritas Excel Plus Index ULMidland XL-CV4 Year 20$304,374$350,392 Year 30$641,319$815,847 Year 40$1,355,108$1,897,796 Age 100$4,110,559$6,658,458 Loans Year 21-40$30,703$39,459 Male, age 45, preferred plus with $8,500 annual premium to age 65. Excel Plus Index UL illustrated at 7.5%, Midland XL-CV4 illustrated at 8.6%. Competitor illustration obtained by Ameritas Life and believed to be accurate effective Feb Option (based on default illustrated rates).

13 For Producer and Registered Representative only. Not for use with clients. Step 2: Common Ground (based on 6.25% Rate) head to head… beyond illustrations Male, age 45, preferred plus with $8,500 annual premium to age 65. Competitor illustrations obtained by Ameritas Life and believed to be accurate effective Feb Option (based on default illustrated rates). Cash Ameritas Excel Plus Index ULMidland XL-CV4 Year 20$263,234$265,223 Year 30$489,697$491,941 Year 40$920,417$919,249 Age 100$2,345,000$2,322,559 Loans Year 21-40$22,939$22,025

14 For Producer and Registered Representative only. Not for use with clients. Excel Plus accumulation CompanyProduct Cash Age 85Rate US & International Indices Fixed and Variable Loans Surrender Charge 12 yrs or less No Cost Chronic, Critical, Terminal Illness Rider Account Value Bonus AllianzLife Pro+$839, %X X indexed loan AmeritasExcel Plus$966, %X X XX 0.40% years 11+ AXAAthena IUL$852, %X John HancockAccumulation IUL$927, % X X 0.65% years 11+ Life of SouthwestFlexLife$872, %X X XX 0.35% years 11+ Lincoln Nat. LifeReserve IUL$716, % X indexed loan X Minnesota LifeEclipse IUL$899, %X X X Pacific Life Indexed Accumulator 4 $709, %X X indexed loan XX Pacific LifeIndexed Performer LT$843, %X X indexed loan XX 0.279%-1.00% years TransamericaFreedom Global IUL II$638, %*X X Data based on male age 45, best non-smoking underwriting class, $500,000 face amount and $8,500 annual premium until age 65. Competitors selected based on top selling individual IUL products YTD 3 rd Quarter Source: Wink, Inc. and product materials. Illustrated value current as of February Indexed strategy for Transamerica is Multiple Index (S&P 500; Euro Stoxx 50; Hang Seng) Annual Point-to- Point. All products illustrated at 6.5% rate.

15 For Producer and Registered Representative only. Not for use with clients. Ameritas doesn’t offer an accumulation IUL that keeps up with the distribution potential of the best IUL’s perception #3

16 For Producer and Registered Representative only. Not for use with clients. strong distributions CompanyProduct Cash Age 65 Maximum Distribution from age Withdrawals switching to fixed loan at basis Withdrawals switching to variable* or index loan at basis AllianzLife Pro+$252,193$18,899$19,900 AmeritasExcel Plus IUL$264,939$21,648$23,425 AXAAthena Indexed UL$251,077$19,702N/A John HancockAccumulation IUL$269,715$21,238$22,551 Life of SouthwestFlexLife$246,400$19,181$20,922 Lincoln NationalFlexLife$217,212$14,528$16,793 Minnesota LifeEclipse Indexed Life$249,205$20,127$21,331 Pacific LifeIndexed Accumulator 4$222,942$14,654$16,569 Pacific LifeIndexed Performer LT$245,056$19,649$20,337 TransamericaFreedom Global IUL II$227,287$14,367N/A All products based on male age 45, best non-smoking underwriting class, $500,000 face amount and $8,500 annual premium until age 65. Competitor illustrations obtained by Ameritas Life and believed to be accurate effective February *Variable loan is illustrated with a maximum difference of 2% between the product's illustrated rate and the variable loan rate

17 For Producer and Registered Representative only. Not for use with clients. the Excel Index UL produces less cash value than most IUL’s perception #4

18 For Producer and Registered Representative only. Not for use with clients. Excel Index UL – the power of lower expenses CompanyProduct Current Cash Year 20 Year 10 Year 20 Year 30 AllianzLife Pro+$222, %3.0%4.2% AmeritasExcel Index UL$240, %3.7%4.7% AXAAthena Indexed UL$205, %2.3%3.8% John HancockAccumulation IUL$233, %3.5%4.2% Life of the SouthwestFlexLife IUL$209, %2.5%3.6% Lincoln NationalLifeReserve IUL Accumulator$184, %1.3%3.0% Minnesota LifeEclipse Indexed Life$214, %2.7%3.8% Pacific Life Indexed Accumulator 4 (50/50 blend)$162, %0.1%1.7% Pacific Life Indexed Performer LT (50/50 blend)$186, %1.4%3.0% Western ReserveFreedom Global IUL II$198, %2.0%2.8% Data based on male age 45, best underwriting class, $500,000 face amount, $8,000/year premium for 20 years, death benefit option 2 for 20 years then option 1. Products selected were in the top ten products in industry sales through 3rd quarter Source: Wink, Inc. Competitor illustrations obtained by Ameritas Life and believed to be accurate effective February All Products illustrated at 6.25%.

19 For Producer and Registered Representative only. Not for use with clients. perception #5 term comparisons are simple… just look at the first page of a Compulife* report *a popular life quote software

20 For Producer and Registered Representative only. Not for use with clients. Ameritas Keystone American General Select-a-Term ING Term Smart Banner OPTerm Genworth Colony Term Prudential Essential Conversion PeriodAge 75 Level Period (up to Age 70) Level Period (up to Age 75) Level Period (up to Age 65) Conversion CreditYesNo All permanent products available? Yes Only during the first five years NoYesNoYes Issued > 40% in Top 2 Preferred Classes YesCan these carriers make the same claim? not a commodity Competitor product materials obtained by Ameritas Life and believed to be accurate effective Feb 2014.

21 For Producer and Registered Representative only. Not for use with clients. perception #6 Ameritas term isn’t competitive with top term writers

22 For Producer and Registered Representative only. Not for use with clients. Ameritas vs. Avg. of these top carriers $500,000 Face 10 Year-8% 15 Year+9% 20 Year+2% term competitiveness Sex Face Amount Keystone Term Male Female Term Period AgeClass$100,000$250,000$500,000$100,000$250,000$500, YR25Best NT Next Best NT SNT Best NT Next Best NT SNT Best NT Next Best NT SNT Best NT Next Best NT SNT Comparison of Keystone Term monthly premiums and #1 ranking premium Lower to $5 higher $5 to $10 higher More than $10 higher American General Select-a-Term, Banner Life OPTerm, Genworth Colony Term, Lincoln National Life Elements Level Term, MetLife Guaranteed Level Term, North American ADDvantage Term, Ohio National Flex Term VIII Plus, Prudential Term Elite, Transamerica Trendsetter Super. Illustrations were ran from Vital Term as of February 2014.

23 For Producer and Registered Representative only. Not for use with clients. term competitiveness Sex Face Amount Keystone TermMale Female Term Period AgeClass$100,000$250,000$500,000$100,000$250,000$500, YR25Best NT Next Best NT SNT Best NT Next Best NT SNT Best NT Next Best NT SNT Best NT Next Best NT SNT Ameritas vs. Avg. of these top carriers $500,000 Face 10 Year-8% 15 Year+9% 20 Year+2% Comparison of Keystone Term monthly premiums and #1 ranking premium Lower to $5 higher $5 to $10 higher More than $10 higher American General Select-a-Term, Banner Life OPTerm, Genworth Colony Term, Lincoln National Life Elements Level Term, MetLife Guaranteed Level Term, North American ADDvantage Term, Ohio National Flex Term VIII Plus, Prudential Term Elite, Transamerica Trendsetter Super. Illustrations were ran from Vital Term as of February 2014.

24 For Producer and Registered Representative only. Not for use with clients. term competitiveness Sex Face Amount Keystone TermMale Female Term Period AgeClass$100,000$250,000$500,000$100,000$250,000$500, YR25Best NT Next Best NT SNT Best NT Next Best NT SNT Best NT Next Best NT SNT Best NT Next Best NT SNT Ameritas vs. Avg. of these top carriers $500,000 Face 10 Year-8% 15 Year+9% 20 Year+2% Comparison of Keystone Term monthly premiums and #1 ranking premium Lower to $5 higher $5 to $10 higher More than $10 higher American General Select-a-Term, Banner Life OPTerm, Genworth Colony Term, Lincoln National Life Elements Level Term, MetLife Guaranteed Level Term, North American ADDvantage Term, Ohio National Flex Term VIII Plus, Prudential Term Elite, Transamerica Trendsetter Super. Illustrations were ran from Vital Term as of February 2014.

25 For Producer and Registered Representative only. Not for use with clients. perception #7 the Ameritas annuity portfolio has fallen behind perception #7b (even worse): Ameritas doesn’t really want your annuity business!

26 For Producer and Registered Representative only. Not for use with clients. comparison disclosures VAs selected were competitors‘ top selling away B-share VA for IAs selected were top selling index annuities according to Wink, Inc.’s 3 rd Qtr Product details were compiled from E&Y Retirement Income Knowledge Bank, Wink, Inc. and competitor product material as of January 31, Only comparable GLWBs (stated roll-up rate and lifetime withdrawal percentages) were included in the comparison. The source is believed to be accurate. In addition, the products selected for comparison may offer riders and/or features that are not discussed or included in this presentation. The comparisons in this presentation are for producer use only and may not be used with a prospective or current client. This is a summary only and is not a contract of coverage from any insurance company. Refer to the actual policies and prospectuses for full descriptions of the benefits and risks. Certain provisions may vary by state.

27 For Producer and Registered Representative only. Not for use with clients. VA Total Charges = M&E + Admin + Additional Required Charges (Distribution Charge, 10% Free Withdrawal Charge, etc.) All-In Cost = VA Total Charges + GLWB Charge. All GLWB charges based on benefit base except Companies K and N where GLWB charge is based on max(acct value, benefit base). This information was compiled from E&Y Retirement Income Knowledge Bank and Competitor Product Material as of January 31, VAs selected were competitors‘ top selling away B-Share VA for Only comparable GLWBs (stated roll-up rate and lifetime withdrawal percentages) were included in the comparison. low cost platform (VA) Company Current VA Total Charges Current GLWB Charge Single Current GLWB Charge Joint All-in Cost Single All-in Cost Joint Overture Medley GLWB2 1.05%1.25%1.50%2.30%2.55% Company B1.15%1.10% 2.25% Company C1.15%1.25% 2.40% Company D1.25%1.05%1.25%2.30%2.50% Company E1.30%1.15%1.40%2.45%2.70% Company F1.30%1.25%1.60%2.55%2.90% Company G1.30%1.00%1.35%2.30%2.65% Company H1.30%1.20%1.50%2.50%2.80% Company I1.30%1.20% 2.50% Company J1.30%1.10%1.35%2.40%2.65% Company K1.35%1.40%1.50%2.75%2.85% Company L1.40%1.20% 2.60% Company M1.40%1.05%1.35%2.45%2.75% Company N1.45%1.00%1.10%2.45%2.55%

28 For Producer and Registered Representative only. Not for use with clients. Chart reflects roll-up rates and basis of competitors. Lifetime withdrawal benefit amounts were calculated assuming a single premium of $100,000 and a 10 year deferral for single/joint lives at age 65/70. This information was compiled from E&Y Retirement Income Knowledge Bank and competitor product material as of January 31, VAs selected were competitors' top selling away B-Share VA for Only comparable GLWBs (stated roll-up rate and lifetime withdrawal percentages) were included in the comparison. Sorted by withdrawal benefit amounts – single life age 65. guaranteed lifetime income (VA) Single LifeJoint Life Withdrawal %'sWithdrawal $'sWithdrawal %'sWithdrawal $'s B-Share VA with GLWB Roll-up Rate Roll-up Rate Basis Age 65Age 70 Age 65 Age 70Age 65Age 70Age 65 Age 70 Company A5.00%Compound5.30% $8, % $7,819 Company B7.00%Simple5.00% $8, % $7,650 Company C7.00%Simple5.00% $8, % $8,075 Overture Medley GLWB2 5.00%Compound5.00%5.25%$8,144$8, %5.25%$8,144$8,552 Company E5.00%Compound5.00% $8, % $7,330 Company F5.00%Compound5.00% $8, % $8,144 Company G5.00%Compound5.00% $8, % $7,330 Company H5.00%Compound4.75% $7, % $7,330 Company I7.00%Simple4.50% $7, % $6,800 Company J6.00%Simple5.00% $8, % $7,200 Company K6.00%Simple4.75% $7, % $7,200 Company L5.00%Compound4.50%5.00%$7,330$8, %4.50%$6,516$7,330 Company M6.00%Simple4.50% $7, % $6,400 Company N6.00%Simple4.50%5.00%$7,200$8, %4.50%$6,400$7,200

29 For Producer and Registered Representative only. Not for use with clients. guaranteed lifetime income (IA) Company Product Name GLWB Rider Name GLWB Guaranteed Income Withdrawal 15 Yr Deferral GLWB Charge GLWB Roll-up Rate Principal Protection Surrender Charges IA=50IA=60% Basis%4-Yrs1=YR%Period AllianzMasterDex XSimple Income III $11,660$12, % BB 8.00% (simple) 10%10 American EquityRetirement Gold Lifetime Income Benefit (Option 2) $13,888$16, % AV 6.50% 12.50%10 Ameritas LifeCompass Index AnnuityGLWB $12,414$14, % BB 6.25% X8%8 Athene AnnuityIncome Preferred BonusIncome Edge Plus $12,462$13, % BB 6.00% 12%10 GenworthSecureLiving Index 7Income Protection Rider $9,540$11, % BB 8.00% (simple) 9%7 Great AmericanSafe ReturnIncome Sustainer Plus $9,800$11, % BB 8.00% (simple) 10%10 INGSecure Index Opportunities PlusING Income Protector $9,402$11, % BB 6.00% 10%10 Lincoln NationalOptiChoice 9Lincoln Lifetime Income Edge $9,366$10, % BB 5.00% 9%7 Midland National MNL RetireVantage 10Retire X-Cel (Option Three) $12,910$15, % BB 6.25% 10%10 Pacific LifePacific Index Choice 8 Enhanced Lifetime Income Benefit $9,000$9, % BB 8.00% (simple) 9%8 This information was compiled from competitor product material and Wink, Inc. as of January 31, GLWB guaranteed withdrawal amounts shown above were assuming a single premium of $100,000 with no resets of Benefit Base. Products selected are top selling Indexed annuities based on 3Q 2013 YTD indexed annuity sales data from Wink, Inc. with surrender charge periods of 7 to 10 years, a non-exclusive distribution and a GLWB available. Only products that offered a comparable GLWB rider (stated roll-up rate and lifetime withdrawal percentages were included for comparison purposes. IA=Issue Age AV=Account Value Accumulation BB=Benefit Base

30 For Producer and Registered Representative only. Not for use with clients. coming soon This is a prototype and not approved for use.

31 For Producer and Registered Representative only. Not for use with clients. questions?


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