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Index Growth Annuity an individual fixed annuity available from Standard Insurance Company.

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Presentation on theme: "Index Growth Annuity an individual fixed annuity available from Standard Insurance Company."— Presentation transcript:

1 Index Growth Annuity an individual fixed annuity available from Standard Insurance Company

2 S T A N D A R D I N S U R A N C E C O M P A N Y Topics of Discussion  Index Annuities  Index Growth Annuity  Account Accumulation  Index Interest Account  Fixed Interest Account  Surrender Periods  Surrender-Free Withdrawals  Compensation  Sales Support  Broker Training  Consumer Materials  New Business Processes  Standard Insurance Company I N D E X G R O W T H A N N U I T Y

3 S T A N D A R D I N S U R A N C E C O M P A N Y Index Annuities Introduction to the Index-Annuity Marketplace

4 S T A N D A R D I N S U R A N C E C O M P A N Y Index Annuities : Overview  Usually called “equity-indexed annuities.”  Fixed-interest insurance products.  Crediting rate determined in part by referencing an investment-based market index.  Standard & Poor’s  NASDAQ  Do not invest in the index referenced.  Are not securities and may not be presented as such.

5 S T A N D A R D I N S U R A N C E C O M P A N Y Index Annuities : Advantages  Provide the guarantees of fixed annuities.  Minimum Rate of Return  Tax-deferred Status  Safety of Principal  May capitalize on positive economic conditions.  Appeal to consumers who:  Are moderately conservative;  Appreciate tax-deferral of annuities; and  Are in need of some diversification in a retirement-planning portfolio.

6 Index Annuities : Buyers  Age 55 to 70 years.  About 14-year savings horizon.  Conservative saver.  Low to medium risk tolerance.  Willing to:  forego high-return potential  in order to minimize fluctuations in account value. S T A N D A R D I N S U R A N C E C O M P A N Y

7 Index Growth Annuity Growth Potential with Safety Guarantees

8 S T A N D A R D I N S U R A N C E C O M P A N Y IGA : Rates I N D E X G R O W T H A N N U I T Y $15,000$100,000 Index Growth Annuity % Index Rate Cap 5.25% Bailout Index Rate Cap 3.45% Fixed Interest 2.15% Contractual Guarantee 8.00 % Index Rate Cap 6.00% Bailout Index Rate Cap 3.45% Fixed Interest 2.15% Contractual Guarantee Index Growth Annuity % Index Rate Cap 5.50% Bailout Index Rate Cap 3.45% Fixed Interest 2.15% Contractual Guarantee 8.25 % Index Rate Cap 6.25% Bailout Index Rate Cap 3.45% Fixed Interest 2.15% Contractual Guarantee Rates effective 01/01/2006 and subject to change without notice.

9 S T A N D A R D I N S U R A N C E C O M P A N Y IGA : Overview  Single-premium deferred.  Index Interest Account  Reflects performance of the S&P 500 ® to index rate cap.  2% less bailout index interest rate.  12 month, point-to-point index term.  100% participation to index rate cap.  Fixed Interest Account  1-year rate guarantee.  Surrender period of 5 or 7 years.  Flexible withdrawal features.  Issue Ages  90 years for owners and annuitants.  Joint owners and joint annuitants allowed.  Initial Premium  $15,000 minimum.  $1,000,000 maximum without prior home-office approval.  Rate Lock  60 days for both crediting rate and index rate cap.  Fees  No annual contract fees. I N D E X G R O W T H A N N U I T Y

10 S T A N D A R D I N S U R A N C E C O M P A N Y IGA : Account Accumulation  Two accounts, allocated in any percentage directed.  Index Interest Account  Fixed Interest Account  There is no Market Value Adjustment.  Minimum Surrender Value Guarantee  Will grow as the contract remains in force.  After surrender period, client or beneficiary will never receive less than 100% of premium, net of any withdrawals taken, accumulated at a rate that meets or exceeds minimum state requirements.  Account Transfers  Allocation may be changed once a year, at the end of the index term.  Will receive interest rate and index rate cap in effect at the time upon which the transfer is acted.  Must be elected prior to end of index term. I N D E X G R O W T H A N N U I T Y

11 S T A N D A R D I N S U R A N C E C O M P A N Y IGA : Index Interest Account  Interest Crediting  Interest is calculated and credited annually.  Index Term  12-month point-to-point term.  Participation Rate  100% of the growth of S&P 500 to specified rate cap.  Index Rate Cap  Assigned a rate cap for a 12-month index term.  After index term, will receive renewal index rate cap.  Bailout Index Rate  Contractually set at 2% less than the initial index rate cap.  Premium Allocation  Allocation made on the 15 th of each month, after the receipt of all expected funds in the home office. Index:S&P 500 Index Term:12 Months Participation Rate:100% Index Rate Cap:Declared Annually Bailout Index Rate:2% Less than Initial Interest Credited:Annually A T A G L A N C E I N D E X G R O W T H A N N U I T Y

12 S T A N D A R D I N S U R A N C E C O M P A N Y IGA : Fixed Interest Account  Interest Crediting  Interest is calculated and credited daily.  Interest Rate Guarantee  Initial rate is guaranteed for one year.  After guarantee period, will receive renewal rate.  Minimum Rate Guarantee  Contract includes a minimum guaranteed rate.  Crediting rate on Fixed Interest Account will never fall below.  Premium Allocation  Allocation is made on the day of receipt of funds in the home office. Rate Guarantee:1 Year Minimum Rate:Contractual By State Interest Credited:Daily A T A G L A N C E I N D E X G R O W T H A N N U I T Y

13 S T A N D A R D I N S U R A N C E C O M P A N Y IGA : Surrender Periods  IGA 5 Policy Year12345 Charge8%7%6%4%2%  IGA 7 Policy Year Charge9%8%7%6%5%4%2%...your customers will be spared the hassle of a 30- or 60-day window at the end of the guarantee period, during which time policyowners are generally required to make a decision prior to the start of a new surrender period. A T A G L A N C E I N D E X G R O W T H A N N U I T Y

14 S T A N D A R D I N S U R A N C E C O M P A N Y IGA : Surrender-Free Withdrawals  10% Annual Withdrawals available immediately.  IRS Required Minimum Distributions available immediately.  Substantially Equal Periodic Payments available immediately.  Nursing Home and Terminal Condition Benefits available after the first contract year (partial index credit is available).  Annuitization available immediately with a lifetime or period- certain option of five years or more (partial index credit is available).  Death Benefits available immediately (partial index credit is available). The nursing home waiver is not available in Massachusetts and state-specific conditions apply to the terminal condition waiver. I N D E X G R O W T H A N N U I T Y

15 S T A N D A R D I N S U R A N C E C O M P A N Y IGA : Compensation  Commission Amounts  Your broker contract details the commission available.  Check with your MGA for more information.  Commission Chargeback  100% commission will be recaptured in the first six contract months on:  Surrenders; and  Death of an owner or annuitant age of 86 or older at issue.  50% commission will be recaptured between the seventh and 12 th contract months on:  Surrenders; and  Death of an owner or annuitant age of 86 or older at issue.  There is no chargeback on death of an owner or annuitant with issue age 85 or younger at any time during the life of the contract. I N D E X G R O W T H A N N U I T Y

16 S T A N D A R D I N S U R A N C E C O M P A N Y IGA : Compensation I N D E X G R O W T H A N N U I T Y 0 – 8081 – 8586 – 90 Index Growth Annuity % 2.25 % 1.85 % Overwrite 1.50 % 0.75 % 0.60 % Index Growth Annuity % 2.75 % 2.25 % Overwrite 1.50 % 0.75 % 0.60 %

17 S T A N D A R D I N S U R A N C E C O M P A N Y Sales Support Partners In Serving Your Clients

18 S T A N D A R D I N S U R A N C E C O M P A N Y Sales Support : Broker Training  Index Growth Annuity Broker’s Sales Guide  Includes Knowledge Assessment for the Index Growth Annuity. I N D E X G R O W T H A N N U I T Y

19 S T A N D A R D I N S U R A N C E C O M P A N Y Sales Support : Consumer Materials  Brochure ( /7)  Fact Sheet ( /7)  Overview ( /7)  Application (12601)  Disclosure ( /7)  Sales Guide ( /7) I N D E X G R O W T H A N N U I T Y

20 S T A N D A R D I N S U R A N C E C O M P A N Y Sales Support : New Business Processes NameNumberRequired Required in Some States Application Index Annuity Application12601X Disclosure Index Annuity Disclosure /7X Buyer’s Guide to Fixed Deferred Annuities10427X Acknowledgement of Suitability in an Annuity Purchase12216X Replacement NoticesVariousX State-Required FormsVariousX Supplemental Request for Rollover, Transfer or Exchange12213 Request for 72(t) or 72(q) Substantially Equal Periodic Payments7180 Substitute IRS Forms W-4P and W Request for EFT of Annuity Payout11426 Broker Use Knowledge Assessment for the Index Growth Annuity12657X Request for Annuity Contract Illustration11930 I N D E X G R O W T H A N N U I T Y

21 S T A N D A R D I N S U R A N C E C O M P A N Y Sales Support : (800) Sales  Marnell McClenaghan6605  Ray Taylor6104 Marketing  Brenda Parrish8117 Web Site  (No login required!) New Business Submission Annuity New Business Administration, P5D Standard Insurance Company PO Box 711 Portland, OR Street Address For Overnight Annuity New Business Administration, P5D Standard Insurance Company 1100 SW Sixth Avenue Portland, OR Contracting  Jack Richey8611  Anna Watson8794 New Business — Deferred  Cathy Brown8795 New Business — Immediate  Todd Greer8197  Joe Villanueva6909 I N D E X G R O W T H A N N U I T Y

22 S T A N D A R D I N S U R A N C E C O M P A N Y Standard Insurance Company Where Expertise Is An Organizational Trait

23 The Standard : Ratings  A.M. BestA “Excellent” (3rd of 13 rankings)  FitchAA- “Very Strong” (4th of 16 rankings)  Standard & Poor’sA+ “Strong” (5th of 16 rankings)  Moody’sA1 “Good” (5th of 16 rankings) All ratings and rankings current as of February The Standard Plaza, in Portland, Oregon’s financial district. S T A N D A R D I N S U R A N C E C O M P A N Y

24 All figures as of December 31, The Standard : Financial StanCorp Financial Group  Assets $11.21 billion  Fixed Maturity Securities59.3% A or higher74.5% BBB/Baa21.6% BB or Lower 2.9%  Mortgage Loans39.6% 60-Day Delinquencies0.25%  Real Estate1.0%  Other0.1%  Yields Fixed Maturity Securities5.81% Commercial Mortgage Loans6.71% Eric E. Parsons, Chairman, President and Chief Executive Officer S T A N D A R D I N S U R A N C E C O M P A N Y

25 Index Growth Annuity The Index Growth Annuity is a product of Standard Insurance Company. The IGA may not be available in some states and may at times be referenced as an equity-indexed annuity. The annuity is not guaranteed by any bank or credit union and is not insured by the FDIC or any other governmental agency. The purchase of an annuity is not a provision or condition of any bank or credit union activity. Some annuities may go down in value. “Standard & Poor’s 500” and “S&P 500®” are trademarks of The McGraw- Hill Companies, Inc. and have been licensed for use by Standard Insurance Company. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing the Product. The S&P 500 index does not reflect dividends paid on the underlying stocks. Policy:SPDA-IA Riders: R-ANNPTP-B20, R-TEN-IA, R-NHB-IA, R-TCB-IA

26 Index Growth Annuity an individual fixed annuity available from Standard Insurance Company


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