annuity and life insurance product update...
TRANSCRIPT
COPYRIGHT 2014 CORPORATE INSIGHT, INC.
ANNUITY AND LIFE INSURANCE PRODUCT UPDATE
FIRST QUARTER 2014AUTHOR: JOSE MIGUEL SANTANA
PUBLISHED: APRIL 2014
ABOUT CORPORATE INSIGHT
Connect With Us
Corporate Insight provides competitive intelligence and user experience research to the nation’s
leading financial institutions. For over 20 years, the firm has tracked technological developments in the
financial services industry, identifying best practices in online banking and investing, online insurance,
mobile finance, active trading platforms, social media and other emerging areas. There are no
assumptions in Corporate Insight’s work – we use live accounts at all of the firms we research, providing
our clients with unparalleled, unbiased intelligence on the competition.
JOSE MIGUEL SANTANA
Senior Research Associate
(646) 751-6971
MEDIA INQUIRIES
Please Contact Intermarket Communications:
(212) 888-6115
Press Coverage
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TABLE OF CONTENTS
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Introduction
Annuityo Nationwide: Lifetime Income Capture
o Nationwide: Lifetime Income Track
o Nationwide: New Heights
o Aviva/Athene: TargetBenefit5
o ING: RenewalFLEX
o Prudential: HD Lifetime Income v3.0
Life Insurance o Genworth: Foundation Builder Index UL
o Prudential: PruLife Founders Plus UL
o AXA: BrightLife Protect, Series 155
o New York Life: Chronic Care Rider
o New York Life: Asset Preserver
o MetLife: Simplified Issue Term
o Northwestern Mutual: Limited Pay Life Insurance
o John Hancock: Accumulation IUL and Long-Tern Care Rider
Corporate Insight Thought Leadership
About the Author
INTRODUCTION
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BACKGROUND
This quarterly slide deck
examines new product
releases from annuity carriers
and life insurers covered in
our Annuity Monitor and Life
Insurance Monitor research
services (see full coverage list
on next slide).
Inside, we rundown the new
products introduced in the
first quarter of 2014 and
highlight their key features.
FIRMS COVERED
Below is a list of the firms we track on a daily basis for our Annuity Monitor and Life Insurance Monitor research services:
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Annuity Monitor Life Insurance Monitor
o Allianz Life
o Athene
o AXA
o Fidelity
o ING
o Jackson National
o John Hancock
o Lincoln Financial
o MassMutual
o MetLife
o Nationwide
o New York Life
o Pacific Life
o The Principal
o Prudential
o TIAA-CREF
o Transamerica
o VALIC
o Vanguard
o AXA
o GenworthFinancial
o John Hancock
o Liberty Mutual
o Lincoln Financial
o MassMutual
o MetLife
o Nationwide
o New York Life
o Northwestern Mutual
o Pacific Life
o Principal Financial
o Prudential
o USAA
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ANNUITY PRODUCT RELEASES
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NATIONWIDE: LIFETIME INCOME CAPTURE
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Rolled out in late January and is part of the firm’s suite of living benefit
riders for the Nationwide Destination Series 2.0 and New York 2.0
variable annuities.
Simple interest roll-up rate on the original income benefit base and
additional purchase payments for 15 years or until the first lifetime
withdrawal.
Features an annual step-up on the income benefit base that locks-in
the highest monthly contract value on the rider anniversary.
NATIONWIDE: LIFETIME INCOME TRACK
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Unveiled in late January and is part of the firm’s suite of living benefit
riders for the Nationwide Destination Series 2.0 and New York 2.0
variable annuities. It is meant for more fee-conscious investors.
Has a joint option (available for an additional cost) for continuing
payments to a spouse, along with an annual step-up feature.
Delivers a Non-Lifetime Withdrawal feature that can only be exercised
once, is not available in the first rider year and is available when the
determining life reaches 59½.
NATIONWIDE: NEW HEIGHTS
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Introduced in Februrary, this new fixed indexed annuity is distributed by
Annexus through Independent Marketing Organizations and offers
uncapped earning potential, a rarity in the fixed indexed annuity world.
The Nationwide High Point 365 Lifetime Income Benefit and the
Nationwide High Point riders are available at an additional cost and
each are available with a purchase payment bonus option.
The annuity offers clients the greater of potential growth of their
contract value or a fixed rate increase on their premium.
AVIVA/ATHENE: TARGETBENEFIT5
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Unveiled in early February and offers tax-deferred retirement growth
potential on a five-year withdrawal charge schedule.
Presented alongside the two pre-existing TargetBenefit Series annuities,
which are on 10- and 15-year withdrawal charge schedules.
TargetBenefit 5 currently offers five indexed interest crediting
strategies:
o 1-Year Point-to-Point Multiple Index
o 1-Year No-Cap Point-to-Point
o 1-Year Point-to-Point
o 1-Year Monthly Cap
o 1-Year Monthly Average
ING: RENEWALFLEX
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Rolled out in early February, the new feature is available with the ING
Secure Index Five Annuity or ING Secure Index Seven Annuity.
Gives clients the opportunity to withdraw all or part of the
Accumulation Value associated with a given premium, index strategy
and indexing period combination (without surrender charges) when a
renewal rate for an indexed strategy is less favorable than the
associated previous waiver rate.
PRUDENTIAL: HD LIFETIME INCOME V3.0
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A new version of the firm’s Highest Daily variable annuity optional living
benefit allows investors to ‘lock in’ the highest daily value of their
annuity contract (for income purposes) each day the market is open.
Offers flexibility to change the roll-up rate and/or the withdrawal
percentages for new contracts in response to market conditions.
A Secure Value Account feature is a fixed-rate account that provides
growth and stability to the annuity’s account as 10% of each purchase
payment is allocated to that account.
LIFE INSURANCE PRODUCT RELEASES
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GENWORTH: FOUNDATION BUILDER INDEX UL
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Unveiled in early January, it is intended for clients looking for financial
flexibility as it provides affordable death benefit protection and the
ability to add long term care coverage.
Key features include a no-lapse guarantee for up to 30 years, high cap
rates for five crediting strategies linked to the percentage change of
the S&P 500 and an optional Accelerated Benefit Rider for Long Term
Care Services (available for an additional cost).
PRUDENTIAL: PRULIFE FOUNDER PLUS UL
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This new universal life policy offers clients cost-effective death benefit
protection with an extended No-Lapse Guarantee.
Offers a choice between two interest crediting account options – The
Fixed Account (offers a competitive interest crediting rate with a
guaranteed minimum) and The Plus Account (combines the potential
to earn both Basic Interest and Index Interest) – the latter of which is
tied to the performance of the S&P 500.
Additionally, the policy features an optional BenefitAccess Rider, which
allows consumers to advance up to 100% of the death benefit should
they become chronically or terminally ill.
AXA: BRIGHTLIFE PROTECT, SERIES 155
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The new flexible premium universal life policy was unveiled in early
February and offers a traditional Fixed Account, as well as a Select
Account that targets clients focusing on affordable/low cost death
benefit protection with cash accumulation.
Include a low-cost charge structure comparable to a death benefit
universal life product.
Includes a premium allocation structure that gives policy holders the
flexibility to allocate premiums in any amount to the fixed account, the
select account or both; thus enabling the ability to adjust allocations
based on changing market conditions or personal situations.
NEW YORK LIFE: CHRONIC CARE RIDER
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The rider was released for NYL’s whole life
product line and allows clients to accelerate
their policy’s face amount if they need help
paying for chronic care needs as the premium
cost of the rider is guaranteed to stay level.
If policy holders do not need to use their
benefits for chronic care, funds remain intact as
either life insurance benefits for heirs or as cash
value to help supplement retirement income.
After the insured is certified as permanently
chronically ill, policy holders can decide how
their monthly claims are spent without
submitting receipts or a care plan for claim
reimbursement.
NEW YORK LIFE: ASSET PRESERVER
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The new single premium universal life
policy was introduced in March and enables
clients to accelerate the death benefit tax-
free to pay for long-term care expenses.
These expenses include medical equipment
and long-term care services outside the
United States, home health care, family
care, adult day care, assisted living facilities,
hospice care, and nursing homes.
The policy also has a minimum death
benefit guarantee, as well as a lifetime
money back guarantee, that ensure policy
holders will never receive less than the
premium paid if they surrender their plan.
METLIFE: SIMPLIFIED ISSUE TERM
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Unveiled in mid February, the new
Simplified Issue Term Life Insurance
product is available in face amounts from
$10,000 to $100,000, and is available for
anyone from age 18-80.
The “term to 90” product automatically
renews each year up to age 90 without
additional underwriting.
Annual premiums increase based on the
insured’s age in five-year increments. The
plan does not require a medical exam and
can be purchased over the telephone with
same day approval.
NORTHWESTERN MUTUAL: LIMITED PAY LIFE INSURANCE
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The new permanent life insurance policy allows clients aged 0-85 to
pay for their permanent life insurance policy over predetermined
periods of 10, 15 or 20 years, during which premiums remain level.
An Additional Purchase Benefit also allows parents or their children to
purchase more permanent life insurance for the children based on
their original health status. Clients receive guaranteed minimum cash
value and may also be eligible for dividends.
JOHN HANCOCK: ACCUMULATION IUL & LTC RIDER
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In late March, the firm updated its pre-existing Accumulation IUL
product to offer significant cash value accumulation and strong death
benefit protection that can help supplement retirement income.
Additionally, the firm announced that an improved Long-Term Care
Rider is now available for all single life products. The updated Long-
Term Care Rider features an increasing death benefit option that
provides more flexibility for clients wanting to specify the amount of
coverage they need.
CORPORATE INSIGHT THOUGHT LEADERSHIP
23
The Millennial Shift: Financial Services and the Digital GenerationThis study will help financial services marketers, product managers and strategists to better understand Millennials and identify effective tactics for serving this demographic. The study preview contains six pages of excerpts focusing on: Millennial mobile and digital usage trends, importance of education as a tool for connecting with young investors, and best practice examples from two financial services firms that are effectively connecting with Millennials.
The Complete Bitcoin User Experience: Mining, Exchanges, Wallets and BeyondThis study provides a detailed analysis of how Bitcoins are created, traded and stored. The study includes reviews of the top websites and online services driving the Bitcoin marketplace including Slush’s Pool, Blockchain.info and Coinbase among others.
2014 Mobile Finance Trends and InnovationsThis study draws on our ongoing tracking of the industry as well as relevant developments outside of the financial services space. This study includes commentary on mobile developments, key takeaways for financial services firms and thoughts on what’s next for mobile finance.
Senior Citizens & Mobile Finance: Design & Support Solutions to Empower the Senior SetUsing CI’s user-testing expertise and ongoing mobile finance research, this slide deck highlights specific areas where seniors may struggle with financial services apps and offers design and support solutions that will give this valuable audience the comfort and confidence to engage in mobile finance.
Optimizing the Online & Mobile Experience for Retirement Plan ParticipantsThis slide deck features industry best practices and includes five recommendations for DC plan providers looking to improve their Web and mobile offerings.
ABOUT THE AUTHORA
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Jose Miguel Santana
Senior Research AssociateAnnuity Monitor and Life Insurance Monitor
Jose Miguel Santana is a Senior Research Associate for Corporate Insight’s Annuity Monitor
and Life Insurance Monitor research services. He has conducted extensive research on the
annuities and life insurance industries, examining the online platforms, customer service
capabilities and technological innovations offered to prospective investors, clients and
financial professionals. This quarterly study is the result of Jose Miguel’s ongoing research
into product releases from leading annuity and life insurance providers.
Jose Miguel graduated from James Madison University in 2010.
Contact Jose Miguel Santana:
(646) 751-6971
Connect with Jose
Connect with CI
Annuity Monitor, Life Insurance Monitor and P&C Monitor are service marks of Corporate Insight, Inc.; all rights reserved. 24