agent use only presented by: brad newcomb, regional vice president ing usa annuity and life company...

Agent Use Only

Presented by:Brad Newcomb, Regional Vice PresidentING USA Annuity and Life Company

Legacy Planning for Your Clients

Agent Use Only

•The ING name will help you Grow Your Business!

•Tax advantageous payouts to Beneficiaries

•ING Total Compensation Package

What we will cover today

ING 3Agent Use Only

How ING Can Help You Grow Your Business

A great brand

Over 80% brand recognition

Over 47% consumer purchase consideration

ING 4Agent Use Only

Global ScaleGlobal Scale #1 Insurance Company in the World!#1 Insurance Company in the World!

Doing business in over 50 countries

Over 60 million clients worldwide

Over $1 trillion in total global assets

Top 100 Global Brand

Doing business in over 50 countries

Over 60 million clients worldwide

Over $1 trillion in total global assets

Top 100 Global Brand

Fortune Global 500World’s Largest Companies

(2006 Insurance Industry Rank)

Fortune Global 500World’s Largest Companies

(2006 Insurance Industry Rank)

1

2

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How ING Can Help You Grow Your Business

ING 5Agent Use Only

Longevity!!

• Male (65) 50% Chance of living beyond age 85, 25% beyond 92

• Female (65) 50% Chance of living beyond age 88, 25% beyond 94

• Couple (65,65) 50% Chance of living beyond age 92, 25% beyond 97

Source: Society of Actuaries, Annuity 2000 Mortality Table

ING 6Agent Use Only

10-Year Treasury = Around 3.90%

ING 7Agent Use Only

What if Your Client does

NOT

Need Income????

Agent Use Only

"Inheriting an Individual Retirement Account (IRA) or other tax-deferred

plan from a spouse is easy. You either can assume the account under your

name or roll it over into your existing IRA. But if you are an adult child, other

relative or friend, inheriting an IRA usually means only one thing: a fat bill

from the Internal Revenue Service.”

USA Today, January 8, 1999

ING 9Agent Use Only

1 If your client’s beneficiary is the client’s spouse, then he/she may treat the IRA as his or her own. 2 Assumes contract has cash value to support withdrawals. Guarantees are subject to the claims paying ability of the insurer.

Two Options Prior to 2001

• Non-Spouse Beneficiaries May Receive:

• Entire balance of IRA within 5 years1

• A series of guaranteed payments by annuitizing the existing contract2

ING 10Agent Use Only

1 If your client’s beneficiary is the client’s spouse, then he/she may treat the IRA as his or her own. 2 Assumes contract has cash value to support withdrawals. Guarantees are subject to the claims paying ability of the insurer.

Post 2001 Options

• Non-Spouse Beneficiaries May Receive:

• Entire balance of IRA within 5 years1

• A series of guaranteed payments by annuitizing the existing contract2

• Annual payments based on his/her life expectancy (Stretch IRA)!!!


*Assumes contract has the cash value to support withdrawals. Guarantees are subject to the claims paying ability of the insurer.

Stretch IRA - What is it?

• Estate planning tool where, upon the IRA owner’s death, the beneficiaries choose to receive the IRA proceeds over their life expectancies.*


The Benefits of a Stretch IRA

• Potentially maximize the value of your client’s IRA for the client’s heirs

• Minimize the current income taxes paid by your client’s beneficiaries by spreading out the IRA payments and associated income taxes

• Create a stream of income* for your client’s beneficiaries based on their life expectancies

• Create a Legacy for your clients to pass on to their beneficiaries!

*Assumes contract has the cash value to support withdrawals. Guarantees are subject to the claims paying ability of the insurer. Future changes to tax laws may alter the tax-related benefits associated with beneficiaries spreading out payments through a Stretch IRA.


1Assumes contract has the cash value to support withdrawals. Guarantees subject to the claims paying ability of the insurer. 2Assumes the non-spouse beneficiary passes away before reaching their full life expectancy.

Life Expectancy Payments (Stretch IRA)

• Benefits• Remaining balance grows

tax-deferred

• Roth payments are tax-free

• Owner leaves legacy for beneficiary1

• Any remaining assets at the death of beneficiary goes to the beneficiary’s heir2

• Considerations• IRA must be titled in

decedent’s name

• Beneficiary must begin payments by 12-31 of the year following the year of death

• Payments are based on life expectancy of the non-spouse beneficiary


Using a Stretch IRA Strategy

IRA owner with a spouse as beneficiary

IRA Owner Passes Away

IRAs and other qualified plans already have the tax deferral feature found in annuities. For an additional cost, fixed annuities provide other benefits including death benefit protection and the ability to receive a lifetime income.

Surviving spouse treats IRA as ownSpousal continuation benefit credited1

1Assumes contract has cash value to support withdrawals. Guarantees subject to the claims paying ability of the insurer.

The rate of return of underlying investments will fluctuate over time and there can be no guarantee that positive investment performance will be achieved.



Surviving spouse names the child as beneficiaryBeneficiary continuation option may be selected at this time

Surviving spouse passes away

Assumes contract has the cash value to support withdrawals. Guarantees subject to the claims paying ability of the insurer.




Child receives life expectancy payments at least annually and the IRA continues to grow tax-deferred


Child’s beneficiary may continue to receive life expectancy payments for the remainder of the schedule until all payments are received or the cash

value of the contract is depleted. Tax-deferred growth continues on all payments not yet received.1

1Assumes contract has cash value to support withdrawals. Guarantees subject to the claims paying ability of the insurer.

The rate of return of underlying investments will fluctuate over time and there can be no guarantee that positive investment performance will be achieved.


Stretch IRA Example

• $1,000,000 Passed on to Jimmy Doe

- $20,000 RMD (50 year life expectancy)

$980,000 Amount after Distribution

+ $50,000 Interest from Annuity

$1,030,000 (THIS IS BETTER THAN $600,000!!!!!)


Writing the Stretch IRA

• Four Simple Steps

#1 - Complete the annuity application, suitability and product disclosure

#2 - Designate non-spouse beneficiary(ies) on annuity app

#3 - Transfer Form, if transferring assets

#4 - If IRA is currently funded with an annuity include:• State specific replacement forms (where required)

• Original contract


Beneficiary Designation with Restricted Payout Form

• Option for the IRA owner to limit pay out options for non spouse beneficiary

• Cannot limit spousal pay out options with this form


Marketing Materials & Forms

• Stretch IRA Materials• Client Presentation Brochure

• Beneficiary Designation With Restricted Pay Out Form

• ING Presents Illustration Software for Stretch IRAs, NQ Stretch and Roth IRA Stretch

• Client Prospecting Letter


Making a Stretch IRA Part of Your Business

• Capitalize on the Opportunities

• Provide a valuable service to your clients

• Create a sense of financial security by offering predetermined distribution options for your client’s beneficiary

• Retain business by becoming the beneficiary’s financial expert

• Cross-sell through planning for both the IRA owner and subsequent beneficiaries


Roth IRAs - Opportunity

• Beginning in 2010, anyone may convert a traditional IRA to a Roth IRA.

• Beginning in 2010, any individual eligible for withdrawals may convert from a 401(k) to a Roth IRA.

• Now is the time to start planning for this conversion.


• Ongoing asset-based payments

• No reduction to upfront commission

• Payments continue for the life of the contract

• No Limits! No Catch!


When is 8% Better than 9%?

$8,000

$8,278$8,573

$8,886

$9,217$9,569

$9,941

$10,336

$10,754

$11,197

$8,500

$9,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10

8%

8.50%

9%

Agent Use Only. Calculations are based on commission schedules which are effective 6/11/07 and are subject to change at any time. Calculations are estimates and are not binding on the company.

Let’s look at a $100,000 policy assuming a 5% bonus, 6% annual interest crediting to the account values, and a 25 basis point trail


Elite Producer Plan

5% ING Contribution

Shows the effects of ING’s contribution earning 4.5% in a fixed account if a producer would product $1.5M, $3M, or $5M for 10 years, with an average commission of 7%. This contribution rate reflects over 10 years of plan participation; in earlier years, the ING contribution rate is lower.


2009 ING Fixed Annuities VIP Club. Costa Rica.Just you and the blue...

•April 19-23, 2009

•Four Seasons Resort at Peninsula Papagayo

•Qualification Level•2.25 million in sales•5 cases in 2008 calendar year


Disclosure

• Contracts issued by ING USA Annuity and Life Insurance Company, 909 Locust St., Des Moines, IA 50309. The company and its representatives cannot provide tax, legal or accounting advice. Clients should consult their own attorney or tax advisor about their specific circumstances. Products/features not available in all states. Withdrawals may be subject to Federal/State income tax and, if taken prior to age 59 1/2, an additional 10% Federal penalty tax. IRAs and other qualified plans already provide tax deferral like that provided by an annuity. Additional features and benefits such as contract guarantees, death benefits and the ability to receive a lifetime income are contained within the annuity for a cost. Please be sure the features and costs of the annuity are right for clients when considering the purchase of the annuity.

• "Standard & Poor's®", "S&P®", "S&P 500®", "Standard & Poor's 500", and "500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by ING USA Annuity and Life 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 investing in the Product. The S&P 500 Index does not reflect dividends paid on the underlying stock."

• The Dow Jones Euro STOXX 50® is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland and/or Dow Jones & Company, Inc., a Delaware corporation, New York, USA, (the "Licensors"), which is used under license. The index strategies of the annuity contracts based on the Dow Jones Euro STOXX 50® are in no way sponsored, endorsed, sold or promoted by the Licensors and neither of the Licensors shall have any liability with respect thereto.

• Please note that the likelihood of obtaining value from the ING IncomeProtector Withdrawal Benefit rider decreases as issue ages increase. In order for owners issue age 75 and above to benefit from this rider, the interest credited to your accumulation value must be significantly less than expected based on historic averages.

• Depending on your issue age and the interest credited to your accumulation value, deferring your payment stream may significantly reduce the likelihood of obtaining value from the ING IncomeProtector Withdrawal Benefit.

• Contract Form Series: IU-IA-3065, IU-IA-3067, IU-IA-3064, IU-RA-3059, IU-RA-3060


Thank You for your Time

and Partnership with

ING USA Annuity and Life

agent use only presented by: brad newcomb, regional vice president ing usa annuity and life company...

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