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UN 1830 3-14.

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Presentation on theme: "UN 1830 3-14."— Presentation transcript:

1 UN

2 the Ameritas life and annuity portfolio – what’s our story?
Bob Jurgensmeier SVP, Chief Actuary Ameritas Life Insurance Corp.

3 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 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 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 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 3rd 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 perception #1 Ameritas whole life products can’t compete with big name mutual companies

8 Guaranteed Cash Value @ Year 20
whole life protection Company Product Premium Premium Rank Guaranteed Cash Value @ Year 5 Year 5 Guaranteed Cash Year 20 Year 20 Ameritas Keystone Whole Life $6,245 2 $19,500 $141,000 Guardian Life L121 $6,590 3 $19,680 5 $141,405 MassMutual Whole Life Legacy 100 $7,510 6 $20,360 $147,100 MetLife Promise Whole Life 120 $6,785 4 $20,000 $140,500 New York Life Whole Life AD 113 $8,865 7 $21,545 $146,755 Ohio National Prestige Value III $6,155 1 $19,685 $140,590 Penn Mutual Flexible Choice WL $7,340 $22,500 $146,000 The Ameritas whole life portfolio has the flexibility to offer competitive answers to a variety of client needs. Whether the client has a protection or accumulation focus, our products offer solutions. If you have clients looking for the most permanent death benefit they can afford with guaranteed premium, guaranteed death benefits and guaranteed cash value growth, Keystone WL is well positioned against the competition. LI 1788 Female, age 45 preferred with $500,000 Face Amount. Products selected by top selling whole life carriers 3rd 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 whole life accumulation
Company Product Guaranteed Cash Value @ Yr 5 Rank @ Yr 10 Guaranteed Death Benefit @ 100 Ameritas Keystone Foundation WL $40,913 1 $94,086 $770,858 2 Guardian Life L99 $33,719 4 $87,483 $762,411 3 MassMutual Whole Life Legacy 100 $34,320 $89,171 $735,882 MetLife Promise Whole Life $31,715 6 $79,243 7 $703,137 New York Life Whole Life AD 113 $31,708 $81,726 5 $678,996 Ohio National Prestige 100 $32,026 $81,137 $710,489 Penn Mutual Flexible Choice WL $36,564 $92,711 $776,360 LI 1788 Female, age 45, preferred with $10,000 premium in all years; 70/30 Base & PUA Rider. Products selected by top selling whole life carriers 3rd 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 whole life limited pay Ameritas Keystone Foundation WL $664,476 1
Company Product Guaranteed Death Benefit @ Age 65 Rank Current @Age 65 Guar anteed Cash Value @ Age 65 Cash Value Ameritas Keystone Foundation WL $664,476 1 $799,509 3 $306,706 $379,391 5 Guardian Life Life Paid Up at 65 $525,731 $717,740 7 $255,710 $372,688 MassMutual WL Legacy 20 $585,850 2 $780,427 $284,952 $379,333 MetLife Promise WL Select 65 $540,935 4 $806,763 $259,649 $393,308 New York Life Custom Whole Life $487,344 6 $746,164 $236,557 $373,962 Ohio National Prestige Max $355,635 $789,771 $170,616 $378,892 Penn Mutual Flexible Choice WL $581,656 $851,684 $279,195 $415,812 With the recent whole life update, we’ve introduced our “easy button” into the illustration in order to allow agents to quickly use all of the flexibility whole life can offer, using a blend of base and rider coverage. The chart illustrates this combination delivers strong limited pay performance that matches up to competitors with stand-alone limited pay products and those using similar blends. The favorable load structure in the Ameritas product for PUR coverage results in strong current illustrated values along with the already leading guaranteed values. LI 1788 Female, age 45, preferred with $13,000 premium for 20 years. Products selected by top selling whole life carriers 3rd 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 perception #2 Ameritas IUL products deliver less performance than many top Index Universal Life policies

12 head to head… beyond illustrations
Step 1: Perception (based on default illustrated rates) Cash Ameritas Excel Plus Index UL Midland 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 Let’s talk about perceptions and setting reasonable expectations. 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 head to head… beyond illustrations
Step 2: Common Ground (based on 6.25% Rate) Cash Ameritas Excel Plus Index UL Midland 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 See how quickly the story changes when we illustrate at a common interest rate. The fact that the Midland product has lower cash value at the same illustrated rate indicates higher loading in their product. To deliver the same cash value as Ameritas they will need to maintain some level of extra rate into the future. It is important to consider that customers aren’t buying a current rate. They aren’t buying an illustrated rate. They are buying a product and a load design. The current differences in current rates may or may not hold up over long periods. 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).

14 Excel Plus accumulation
Company Product Cash Age 85 Rate US & International Indices Fixed and Variable Loans Surrender Charge 12 yrs or less No Cost Chronic, Critical, Terminal Illness Rider Account Value Bonus Allianz Life Pro+ $839,408 11.50% X X indexed loan Ameritas Excel Plus $966,081 12.50% 0.40% years 11+ AXA Athena IUL $852,950 John Hancock Accumulation IUL $927,826 13.00% 0.65% years 11+ Life of Southwest FlexLife $872,783 0.35% years 11+ Lincoln Nat. Life Reserve IUL $716,610 12.00% Minnesota Life Eclipse IUL $899,822 Pacific Life Indexed Accumulator 4 $709,594 Indexed Performer LT $843,463 0.279%-1.00% years 11-20 Transamerica Freedom Global IUL II $638,612 13.25%* 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 3rd 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. The above table shows how we stack up against the most popular index universal life offerings in today’s market. You’ll see the features your clients are looking for are available on Excel Plus Index UL—including the new Ameritas Care4Life Acceleration rider. Excel Plus Index UL may be a great option for clients looking to provide death benefit protection and to accumulate wealth with a horizon of 20 years or more. Products selected for comparison were the top index universal life insurance policies (excluding survivorship policies) with the most premium through 4Q Source: Wink, Inc. Competitor illustrations obtained by Ameritas and believed to be accurate effective Feb LI 1632

15 perception #3 Ameritas doesn’t offer an accumulation IUL that keeps up with the distribution potential of the best IUL’s

16 Withdrawals switching Withdrawals switching to variable* or index
strong distributions Company Product Cash Age 65 Maximum Distribution from age 65-85 Withdrawals switching to fixed loan at basis Withdrawals switching to variable* or index loan at basis Allianz Life Pro+ $252,193 $18,899 $19,900 Ameritas Excel Plus IUL $264,939 $21,648 $23,425 AXA Athena Indexed UL $251,077 $19,702 N/A John Hancock Accumulation IUL $269,715 $21,238 $22,551 Life of Southwest FlexLife $246,400 $19,181 $20,922 Lincoln National $217,212 $14,528 $16,793 Minnesota Life Eclipse Indexed Life $249,205 $20,127 $21,331 Pacific Life Indexed Accumulator 4 $222,942 $14,654 $16,569 Indexed Performer LT $245,056 $19,649 $20,337 Transamerica Freedom Global IUL II $227,287 $14,367 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 2014. *Variable loan is illustrated with a maximum difference of 2% between the product's illustrated rate and the variable loan rate For strong distributions to provide supplemental cash flow Excel Plus Index UL has some of the best accumulation potential in the market. And accessing those funds is even easier with the addition of variable loans. Notice how Excel Plus Index UL performs when taking distributions to generate supplemental cash for this same client. In the first column we reflect withdrawals switching to fixed loans at cost basis and in the second column we reflect withdrawals switching to variable loans or index loans at cost basis. In that column, loan is illustrated with a maximum difference of 2% between the product’s illustrated rate and the variable loan rate. LI 1550

17 perception #4 the Excel Index UL produces less cash value than most IUL’s

18 Excel Index UL – the power of lower expenses
Company Product Current Cash Value @ Year 20 IRR @ Year 10 Year 20 Year 30 Allianz Life Pro+ $222,141 -2.7% 3.0% 4.2% Ameritas Excel Index UL $240,196 -0.1% 3.7% 4.7% AXA Athena Indexed UL $205,225 -5.9% 2.3% 3.8% John Hancock Accumulation IUL $233,866 -0.9% 3.5% Life of the Southwest FlexLife IUL $209,622 -3.2% 2.5% 3.6% Lincoln National LifeReserve IUL Accumulator $184,178 -8.7% 1.3% Minnesota Life Eclipse Indexed Life $214,382 -3.0% 2.7% Pacific Life Indexed Accumulator 4 (50/50 blend) $162,456 -10.1% 0.1% 1.7% Indexed Performer LT (50/50 blend) $186,016 1.4% Western Reserve Freedom Global IUL II $198,283 -3.4% 2.0% 2.8% Due to the same “perception” issue identified in the prior slide, the Excel Index often suffers from a view that it just can’t keep up. Yes, it does offer lower caps which translate into lower max illustrated rates. But two big drivers of low cap rates are: Some of the lowest expense loads in the industry… as illustrated above. Minnesota Life would need an extra 1.0% of performance for 20 years from their index design just to keep up with our product given the heavy loading in their design. A true 2% floor… the only product in the industry that offers 2% every year. Yr 10 Difference > 1.0% Ameritas -0.1 Minnesota Life -3.0 Yr 20 Difference = 1.0% Ameritas 3.7 Minnesota Life 2.7 LI 1689 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 perception #5 term comparisons are simple… just look at the first page of a Compulife* report *a popular life quote software A popular agent source for term comparison is Compulife and you may just look at the term rates on the first page. I would suggest that you look beyond the rates for your clients. Let’s take a look at conversion privileges, etc on the next slide.

20 not a commodity Conversion Period Age 75 Level Period (up to Age 70)
Ameritas Keystone American General Select-a-Term ING Term Smart Banner OPTerm Genworth Colony Term Prudential Essential Conversion Period Age 75 Level Period (up to Age 70) Level Period (up to Age 75) Level Period (up to Age 65) Conversion Credit Yes No All permanent products available? Only during the first five years Issued > 40% in Top 2 Preferred Classes Can these carriers make the same claim? As the industry has tightened their conversion privileges, it becomes more important not to just look at price if you truly want to deliver solutions over your clients lifetimes. Do they offer conversions? Can you select any permanent product? Does it offer conversion credits. Consider the power of conversion credits in understanding the true “cost” of your coverage. If you were to convert a customer after 10 years, Ameritas would put the equivalent of 1 year’s worth of term premium into the new policy. By putting 1 of the 10 premiums to work for them in their next product, it has a similar effect as cutting their net cost of owning the term policy by 10% compared to a carrier that doesn’t offer the credit. Beyond conversion credits, a Page 1 “Super Preferred” price is only worth something if you can actually qualify for it. While some carriers offer rock bottom prices and make it very hard to qualify, Ameritas has issued 44% of their 2013 term sales in the top two classes (29% are Preferred Plus). LI 1790 Competitor product materials obtained by Ameritas Life and believed to be accurate effective Feb 2014.

21 perception #6 Ameritas term isn’t competitive with top term writers

22 Ameritas vs. Avg. of these
term competitiveness Sex Face Amount  Keystone Term  Male Female Term Period Age Class $100,000 $250,000 $500,000 10 YR 25 Best NT 1.79 2.55 2.95 1.70 2.33 2.53 Next Best NT 1.86 2.75 2.50 1.69 2.51 SNT 2.37 4.01 5.45 2.29 3.81 4.62 35 2.96 2.32 2.07 1.78 2.54 2.94 2.46 4.24 5.48 45 2.28 3.79 4.59 4.03 2.89 1.93 2.90 3.24 1.50 1.85 1.55 3.88 7.80 9.59 2.52 4.51 7.06 55 4.30 8.84 11.65 2.08 3.30 2.72 4.19 9.76 9.42 2.93 5.40 5.66 4.56 10.80 14.69 3.75 7.46 11.94 Comparison of Keystone Term monthly premiums and #1 ranking premium Lower to $5 higher $5 to $10 higher More than $10 higher Ameritas vs. Avg. of these top carriers $500,000 Face 10 Year -8% 15 Year +9% 20 Year +2% Looking at face amounts below $1 million, the chart highlights in blue where we are better or at least within $5 month of the lowest price among this group. And these are some of the lowest cost term writers in the industry. For at most a few dollars a month, to me there is no doubt the total value offered with the Ameritas package is an easy choice. As you get to higher ages and higher faces, it can end up being more than a few dollars just because we are talking about much larger premiums. But the Ameritas story is still worth considering. Here is a look at our 10 year period. 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 Ameritas vs. Avg. of these
term competitiveness Sex Face Amount  Keystone Term Male Female Term Period Age Class $100,000 $250,000 $500,000 20 YR 25 Best NT 2.04 3.66 5.49 1.61 2.61 2.92 Next Best NT 2.03 4.03 6.74 1.94 3.44 5.05 SNT 5.22 7.96 3.23 6.15 9.30 35 1.60 2.57 3.76 2.12 3.39 5.07 1.51 3.15 4.15 2.29 3.83 5.46 2.26 5.17 7.93 2.35 3.97 4.52 45 2.16 6.62 9.18 3.13 6.28 11.40 1.63 7.17 7.83 2.17 4.28 7.49 5.55 12.00 13.64 3.26 6.23 9.05 55 3.61 17.14 12.19 4.60 12.69 21.84 6.92 26.38 24.51 7.34 18.81 34.24 28.08 26.95 5.64 13.09 23.13 Comparison of Keystone Term monthly premiums and #1 ranking premium Lower to $5 higher $5 to $10 higher More than $10 higher Ameritas vs. Avg. of these top carriers $500,000 Face 10 Year -8% 15 Year +9% 20 Year +2% We also understand our strengths are in 10 year and again here in the 20 year. 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 Ameritas vs. Avg. of these
term competitiveness Sex Face Amount  Keystone Term Male Female Term Period Age Class $100,000 $250,000 $500,000 15 YR 25 Best NT 2.55 4.48 6.81 2.21 3.62 5.09 Next Best NT 2.46 4.24 6.78 2.04 3.25 4.64 SNT 3.48 6.79 10.58 3.05 5.73 8.02 35 2.38 4.04 6.37 2.29 3.83 5.52 5.91 3.60 5.49 3.82 7.65 12.72 5.72 8.87 45 2.96 6.50 10.54 6.80 12.31 3.03 7.95 13.51 2.87 5.43 9.26 2.99 8.10 12.04 2.50 4.34 5.68 55 6.75 19.80 35.61 3.87 8.24 14.71 4.91 16.10 28.13 3.85 8.06 13.74 8.48 21.33 34.63 10.25 23.72 37.99 Comparison of Keystone Term monthly premiums and #1 ranking premium Lower to $5 higher $5 to $10 higher More than $10 higher Ameritas vs. Avg. of these top carriers $500,000 Face 10 Year -8% 15 Year +9% 20 Year +2% On a relative basis, our 15 year is not as strong… as the table shows, even at $500,000 where the dollar differences are bigger, we are right there or better than these top companies at 10 year and 20 year, but do end up 9% higher on average within the 15 year term. 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 perception #7 the Ameritas annuity portfolio has fallen behind perception #7b (even worse): Ameritas doesn’t really want your annuity business!

26 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 3rd 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 low cost platform (VA) Overture Medley GLWB2 1.05% 1.25% 1.50% 2.30%
Company Current VA Total Charges Current GLWB Charge Single Current GLWB Charge Joint All-in Cost Single Cost Joint Overture Medley GLWB2 1.05% 1.25% 1.50% 2.30% 2.55% Company B 1.15% 1.10% 2.25% Company C 2.40% Company D 2.50% Company E 1.30% 1.40% 2.45% 2.70% Company F 1.60% 2.90% Company G 1.00% 1.35% 2.65% Company H 1.20% 2.80% Company I Company J Company K 2.75% 2.85% Company L 2.60% Company M Company N 1.45% 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. We are going to highlight the three key segments where our annuity portfolio looks good. First, we’ll look at it from the perspective of fees. Overture Medley has built a reputation as a low cost leader. That remains true today. In this slide, we compare the base policy charges as well as the GLWB charge and the total for both. There are thirteen competitors listed based on the top selling away companies in 2013. The 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. AN 1345

28 guaranteed lifetime income (VA)
Single Life Joint Life Withdrawal %'s Withdrawal $'s B-Share VA with GLWB Roll-up Rate Roll-up Rate Basis Age 65 Age 70 Company A 5.00% Compound 5.30% $8,633 4.80% $7,819 Company B 7.00% Simple $8,500 4.50% $7,650 Company C 4.75% $8,075 Overture Medley GLWB2 5.25% $8,144 $8,552 Company E $7,330 Company F Company G Company H $7,737 Company I 4.00% $6,800 Company J 6.00% $8,000 $7,200 Company K $7,600 Company L $6,516 Company M $6,400 Company N 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. Second, we will look at Guaranteed Lifetime Income. Through the GLWB feature, we have positioned ourselves among the top tier of industry products, on both a single and joint life basis at age 65 and 70. In this slide, we compare the roll-up rates and basis of competitors. There are thirteen competitors listed based on the top selling away companies in Lifetime withdrawal benefit amounts were calculating assuming a single premium of $100,000 and a 10 year deferral for single/joint lives at age 65/70. Sorted by withdrawal benefit amounts – single life age 65. 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. AN 1398

29 guaranteed lifetime income (IA)
Company Product Name GLWB Rider Name Guaranteed Income Withdrawal 15 Yr Deferral Charge Roll-up Rate  Principal Protection Surrender Charges IA=50 IA=60 % Basis 4-Yrs 1=YR% Period Allianz MasterDex X Simple Income III $11,660 $12,826 0.95% BB 8.00% (simple) 10% 10 American Equity Retirement Gold Lifetime Income Benefit (Option 2) $13,888 $16,666 0.75% AV 6.50% 12.50% Ameritas Life Compass Index Annuity $12,414 $14,897 6.25% X 8% 8 Athene Annuity Income Preferred Bonus Income Edge Plus $12,462 $13,708 6.00% 12% Genworth SecureLiving Index 7 Income Protection Rider $9,540 $11,448 9% 7 Great American Safe Return Income Sustainer Plus $9,800 $11,760 1.25% ING Secure Index Opportunities Plus ING Income Protector $9,402 $11,282 0.85% Lincoln National OptiChoice 9 Lincoln Lifetime Income Edge $9,366 $10,995 5.00% Midland National MNL RetireVantage 10 Retire X-Cel (Option Three) $12,910 $15,492 Pacific Life Pacific Index Choice 8 Enhanced Lifetime Income Benefit $9,000 $9,900 IA=Issue Age AV=Account Value Accumulation BB=Benefit Base 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. We are going to highlight the three key segments where our annuity portfolio shines. Third, we will look at Guaranteed Lifetime Income within our Indexed Annuity product. As in the VA market, we have positioned ourselves among the top tier of industry products in terms of guaranteed income. Competitor average is $10,822 and $12,875 for Issue Age 50 and 60 withdrawals. AN 1364

30 This is a prototype and not approved for use.
coming soon This is a prototype and not approved for use.

31 questions?


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