Retirement solutions powered by ING Fixed Annuities For Agent Use Only. Contracts issued by USG Annuity & Life Company®/Equitable Life Insurance Company of Iowa, 909 Locust Street, Des Moines, IA 50309. Neither the company nor its agents can provide tax or legal advice. Clients should consult their tax advisor or attorney. The parent company, ING Group, is not responsible for the contractual obligations of its member insurance companies. ING FIXED ANNUITIES The Power of ING Fixed Annuities Presented by: Title
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Retirement solutions powered by ING Fixed AnnuitiesFor Agent Use Only.
Contracts issued by USG Annuity & Life Company®/Equitable Life Insurance Company of Iowa, 909 Locust Street, Des Moines, IA 50309. Neither the company nor its agents can provide tax or legal advice. Clients should consult their tax advisor or attorney. The parent company, ING Group, is not responsible for the contractual obligations of its member insurance companies.
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The Power of ING Fixed Annuities
Presented by: Title
Retirement solutions powered by ING Fixed AnnuitiesFor Agent Use Only.
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S A Brief History of ING
As published in the 2002 ING Group Annual Report.
ING Groep, N.V., the parent company of ING, is a multi-national financial services powerhouse with Dutch roots
Active in the fields of banking, insurance, and asset management in 65 countries with over 110,000 employees
ING Group formed in 1990 and in it’s first decade has achieved a 16 fold increase in market capitalization
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Financial results reported for 2001. *Fortune.com July 22, 2002.
Key Facts
Total assets are 624.2 billion (U.S.) with assets under management over 454 billion* (U.S.)
ING currently has over 50 million customers ING is ranked as one of the top financial organizations in
the world:
Top 50 organizations in the world based on profits
10th among the top 20 global financial institutions by market capitalization
#1 publicly traded life and health insurer on the Global Fortune 500, based on revenue*
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*Formerly Duff & Phelps.
Rating Agency
A.M. Best
Fitch*
Standard & Poor’s
ING USG Annuity
A+ (Superior)
AA (Very Strong)
AA (Very Strong)
Ratings
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Why should you sell ING Fixed Annuities?
Good, clean consumer friendly products that sell
Fair compensation for the agents
Diverse and profitable products to sell and market
Consistently deliver excellent service
ING name recognition
Most important….we are looking to develop long term
relationships with our agents!
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S Top 10 Benefits of Fixed Annuities
(Sell Benefits NOT Features) Safety Safety Guaranteed Interest RateGuaranteed Interest Rate Tax deferralTax deferral Lifetime income Lifetime income FlexibilityFlexibility LiquidityLiquidity Death BenefitDeath Benefit May avoid probateMay avoid probate No Annual Fees No Annual Fees (most contracts)(most contracts) Nursing home waiver(not Nursing home waiver(not
available in MA or TX)available in MA or TX)There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified plan, since these are already afforded tax-deferred status. Guarantees are based qualified plan, since these are already afforded tax-deferred status. Guarantees are based
on the claims paying ability of the insureron the claims paying ability of the insurer
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Important Reasons for Buying Annuities According to Consumers
•Earnings would not be taxed until funds used 89%
•Was a safe purchase 88%
•Had a good rate of return 86%
•Wanted a long-term savings plan 79%
•Easy way to save 71%
Source: The Gallup Organization, 2001
Marketing Annuities
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Where does the money come from?
• Additional Earnings after IRA
• Savings Plans
• Death benefits from life insurance
• Rollovers from retirement savings plans
Source: The Gallup Organization, 2001
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Source: LIMRA International.
Guaranteed Income for Life
Very/extremely important to 48% Slightly more important to:
Lower household incomes Women Fixed Qualified (403(b), IRA)
Source: The Gallup Organization, 2001
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S The Power of Persuasion
A recent study showed that if you cue the consumer you can strongly influence the return expectations of consumers.
For instance, rather than talking about fixed annuity rates returning4% then showing your product at 4.15%, you should first talk about the fact that CD rates are around 2% then show the client your product that will return around 4.15%.
By cueing the consumer it puts them in a mindset to accept a 4.15% return because it is much greater than a 2% return. However when compared first to a competitors product at 4%, 4.15% doesn’t soundlike such a great deal.
Jack Marrion, The Index Compendium, October 2002Annuities are not FDIC insured.
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S The Power of Persuasion
This can also be done when talking EIA’s. Rather than explainingwhy participation rates are down, the higher volatility and lower interestrates, show comparison index participation rates of several products to establish a value reference, or show that you can still obtain competitive returns at the lower rate this will create a value perception.
CUE your clients and SELL VALUE!
Jack Marrion, The Index Compendium, October 2002Annuities are not FDIC insured.
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S ING Fixed Annuities EIA Selling Points
ING Secure Index Annuity Annual Reset Point To Point
Heritage Offers Strong Appeal on Point-to-Point
Advantage Index Monthly Averaged Annual Reset
Selectra Flexible Premium Multi-Strategy Annuity
Client-Friendly Products
SIMPLICITYFunded plans under ERISA cannot be used with these annuities. IRAs/qualified plans already receive tax-deferred treatment under the Internal Revenue Code. Your client should consider other annuity features. Heritage Index Annuity, Advantage Index Annuity, and Selectra Multi-Strategy Annuity contracts issued by USG Annuity & Life Company®/Equitable Life Insurance Company of Iowa, 909 Locust Street, Des Moines, IA 50309.
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S EIA Sales Tips
EIA’s are for people who are:
Part Bull
Part Bear
Part Chicken
Jack Marrion, The Index Compendium, October 2002
Retirement solutions powered by ING Fixed AnnuitiesFor Agent Use Only.
Contracts issued by USG Annuity & Life Company®/Equitable Life Insurance Company of Iowa, 909 Locust Street, Des Moines, IA 50309. Neither the company nor its agents can provide tax or legal advice. Clients should consult their tax advisor or attorney. The parent company, ING Group, is not responsible for the contractual obligations of its member insurance companies.
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S Confusing?????
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S Are EIA’s Worth The Trouble???
Yes, And Here Is Why >>>>>>>>>>
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S Equity Index Sales Are IN!(EIA Sales for 2001 and 2002)
2001 Sales were $6B Up 20% from 2000
3Q 2002 Sales Increased 21% from 2Q Up 109% from 3Q in 2001 Through September 2002…Sales over $8B 2002 Projected Sales Over $11B Most Sales are in Annual Reset Designs
92%
LIMRA and Advantage Group 3rd Quarter Results.
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S How Well Do EIAs Perform?
Out Performed the Average Bond Fund and CD by At Least 40%
Had Higher Returns than 61% of ALL Mutual Funds
Out Performed 99% of Bond Mutual Funds
For the five year period ending at the start of 2002. Advantage Group 3rd Quarter Results.
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This is a summary only. Read the contract for complete details. Products/features may not be available in all states. State premium taxes may reduce the final value of the annuity. Withdrawals before age 59 1/2 may be subject to a 10% Federal penalty tax. Funded ERISA plans may not purchase this annuity. IRAs/qualified plans already receive tax-deferred treatment under the Internal Revenue Code. Your client should consider other annuity features. Annuities are not FDIC insured. Neither the Company nor its agent can provide tax or legal advice. Have your client consult an independent tax advisor or attorney. Compensation reduced at older ages. All guarantees are based upon the claims-paying ability of the insurer. The index does not include dividends paid on the underlying stocks.
ING Secure Index Annuity
NEW
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S ONE MOVING PART!
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S ING SECURE INDEX ANNUITY
SIMPLE DESIGN!
SHORT TERM!
STRONG GUARANTEES!
New!!!
SIMPLE, STRAIGHT FORWARD &
EASY TO SELL!
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S Ask Me The Questions?
How do you calculate the Index growth? True point to point
annual reset with NO averaging.
What is the Participation rate? 100% Guaranteed.
Does the product have a Rate cap? Yes, currently 7% on the TIS
strategy, declared annually.
Is there a Spread on the product? No, Spread.
How Liquid is the product? Interest in first year, 10% per year
after year 1, Full Accumulation value at death and at the end of 7
years.
What are the Minimum Guarantees? 3% on 100% of the Premium.
How many moving Parts? 1
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S ING Secure Index
3 Accumulation Strategies!
Rate Guarantees!
Index Guarantees!
And Much More!
SIMPLE, STRAIGHT FORWARD &
EASY TO SELL!
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S Traditional Index Strategy
Annual Reset Point-to-Point with a 7% Cap
Transfers into the TIS will Receive the Index Cap Currently in Effect for Transfers
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S Fixed Interest Strategy
One-Year Interest Guarantee will Earn a Stated Fixed Interest Rate Each Year
The Interest Rate may be Adjusted Annually After Year One
Transfers into the Fixed Rate will Receive the Fixed Rate in Effect for Transfers
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S Index Cap
The Cap is Declared in Advance
Will be Guaranteed for 1 Year
May Change Annually
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S Transfers
Transfers are Permitted Between all Three Strategies
Full Accumulation Value of Each Strategy is Available for Transfer
Transfers are Available Each Year During the 30 Days Following Each Contract Anniversary
No Surrender Charges Apply
Transfers are Made on a LIFO Basis
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Remember, this is only the minimum guaranteed contract value. ING Secure Index Annuity has the
potential to earn much more!
Guarantees
3% on 100% of Premiums Received (Less any Withdrawals, Surrender Charges and Premium Taxes)
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Product Specs
ING Secure Index Annuity
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S Direct Participation Example...
$100 - 50% Loss = $50
$50 + 50% Gain = $75
$100 - $75 = 25% Loss
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0
100
200
300
400
500
0 1 2
850850700700
850850
ING Secure Index Annuity1 Year Reset vs. Direct Participation
Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr surrendersurrender
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ING Secure Index Annuity 1 Year Reset w/ TISDirect Participation
0
100
200
300
400
500
0 1 2
2 Year Totals2 Year TotalsNet Gain = 0%Net Gain = 0%
Interest Credited = 7%Interest Credited = 7%
Figures shown assume ending average index value of 700, minus beginning index value of 850, divided by beginning index value of 850, with a 7% current cap subject to change each year.
Minimum Guaranteed rate is 3% on 100% of premiumMinimum Guaranteed rate is 3% on 100% of premium
Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr surrendersurrender
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S Guaranteed Index Strategy
Annual Reset Point-to-Point with a 5% Cap
Transfers into the GIS will Receive the Index Cap Currently in Effect for Transfers
Minimum Guaranteed 2% Interest Increase Rate
Rates subject to change.
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S ING Secure Index
1 Year Reset w/ GIS Direct Participation
0
100
200
300
400
500
0 1 2
2 Year Totals2 Year TotalsNet Gain = 0%Net Gain = 0%
Interest credited first year = 2%Interest credited 2nd year = 5%. Total over 2 years = 7.10%
Minimum Guaranteed rate is 3% on 100% of premiumMinimum Guaranteed rate is 3% on 100% of premium
Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr surrendersurrender
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ING SECURE INDEX ANNUITY
An excellent alternative to CDs:
Guaranteed return! 3% on 100% of Premiums Received (Less any Withdrawals, Surrender Charges and Premium Taxes)
3% for 7 Years with the potential to earn MORE!!!
Source of retirement income Tax deferral 10% Free withdrawals Nursing Home Waiver (most states) Ability to typically avoid probate Ability to add premium at anytime
Annuities are not FDIC insured. IRAs/qualified plans are already tax deferred. Withdrawals before age 59 1/2 may result in 10% IRS penalty tax.
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Example assumes 28% Federal Income tax bracket. Annuities are not FDIC Insured. Annuity features not available in all states. IRAs/qualified plans are already tax deferred. Consider other annuity features.
Big Benefits of Traditional Annuities
CD Buyers Just Don’t Get
Tax Deferral
A CD would have to
earn 4.16% to equal
the return of a
3% annuity.
Plus…
Flexible Premiums Nursing home waiver Long-Term Guarantees Income Options
Nursing home waiver (not available in MA or TX)
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Primary Investment Goals of Baby
Boomers
0% 20% 40% 60% 80%
Emergency Healthcare
Child's Education
Home Purchase
Maintain Lifestyle
Retirement Savings
Source: 1997 Baby Boomer Generation Poll
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S Benefits and Advantages
Annuities typically avoid probate process
By naming a living beneficiary, assets can be
directly transferred
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S Benefits and Advantages
Nursing Home Waiver
Allows Access to 100% of Accumulated Value for Nursing
Home, Hospital, or Qualified Care Facility
Nursing home waiver (Not available in MA or TX)
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Contracts issued by USG Annuity & Life Company®/Equitable Life Insurance Company of Iowa, 909 Locust Street, Des Moines, IA 50309. Neither the company nor its agents can provide tax or legal advice. Clients should consult their tax advisor or attorney. The parent company, ING Group, is not responsible for the contractual obligations of its member insurance companies.
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That’s theSecurity and Power the
ING Secure Index AnnuityOffers Your Clients!!!
That’s theSecurity and Power the
ING Secure Index AnnuityOffers Your Clients!!!
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We reserve the right to alter or end incentive at any time. Applications must be submitted by 4/30/03, Cases issued by6/30/03. $25,000 minimum premium to qualify for bonus. No limit on the amount of bonus you can earn. Only one bonusper client. Bonuses will be paid at end of incentive period.
$250 BonusOn Each Sale Over $25,000
ING Secure Index Annuity
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