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SecurePlus Marquee 8 & Marquee 8 GLIR

SecurePlus Marquee 8 & Marquee 8 GLIR. The Challenges of Retirement Income. Economic Recovery is slow Market has recovered losses and is climbing, but Boomers on the cusp of retirement do not have the time horizon to make up losses from 2008/2009

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SecurePlus Marquee 8 & Marquee 8 GLIR

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  1. SecurePlus Marquee 8 & Marquee 8 GLIR

  2. The Challenges of Retirement Income • Economic Recovery is slow • Market has recovered losses and is climbing, but Boomers on the cusp of retirement do not have the time horizon to make up losses from 2008/2009 • 44% of Boomer and GenX households could be at risk of running short of retirement money*. • On the average Americans will need an additional $48,000 at retirement age 65 to ensure they do not run out of money *Employee BenefitRetirement Institute—An Expanded Perspective on Retirement Readiness. November 2012, EBRI Notes, Vol. 33, No. 11

  3. The Challenges of Retirement Income • Low Interest rates are here to stay • Clients looking for safety and security face very low rates of return. • Traditional income solutions are undesirable • Annuitization requires relinquish of control • 4% withdrawal philosophy is not guaranteed

  4. I Want it ALL! • Protection from market loss • A bonus to make up for lost time Most of All Income I Cannot Outlive!

  5. SecurePlus Marquee 8 Delivers! • 8% Bonus Accumulation Value – vests 1/5th per year in years 11-15 • BAV included in the death benefit day one • Guaranteed never to lose a penny due to a downturn in the stock market** • Guaranteed Lifetime Income Rider* • The SecurePlus Marquee 8 GLIR – includes 8% BAV Beginning Day One *Guarantees are based on the claims paying ability of the issuing Company. GLIR currently required on all sales **Assumes no withdrawals that would be subject to MVA

  6. SecurePlus Marquee 8 Delivers! • Extra Features for Big Picture Benefits • Special Enhanced Lifetime Income Option, Nursing Care Rider and Terminal Illness Rider, all at no additional cost. • Enhanced Death Benefit options • Great for Clients, Great for YOU • Very competitive commissions

  7. 8% Bonus Accumulation Value

  8. Bonus Accumulation Value (BAV) • Equals 8% of accumulation value in years 1-10 • Transfers automatically to the accumulation value on the 11-15 policy anniversaries • Withdrawals from the accumulation value proportionally reduce the BAV • If the policy is surrendered prior to the 15th policy anniversary, any portion of the BAV not yet transferred to the accumulation will be forfeited. • Paid premium, credited interest and BAV are fully liquid after the 15th policy anniversary. • BAV included in the Benefit Calculation Base

  9. SecurePlus Marquee 8Crediting Options • Declared Rate • S & P 500 Index Pt-to-Pt Option 1: 100% Index Rate & Cap • S & P 500 Index Pt-to-Pt Option 2: 140% Index Rate & Cap • S & P 500 Index Pt-Daily Average • Russell 2000 Index Pt-to-Pt Option 1: 100% Indexed Rate & Cap • Russell 2000 Index Pt-to-Pt Option 2: 140% Index Rate & Cap

  10. SecurePlus Marquee 8 Highlights

  11. Marquee SPDA Series – Market Value Adjustment (MVA) • Benefit of the MVA on SecurePlus Marquee • Potential for Higher rates than without an MVA • Lowers the reserve/capital requirements • Limits the companies exposure to disintermediation risk • Stabilizes our product offerings – more competitive • Only applicable during the first 10 years • Only applies to withdrawals over the free amount • Not applicable on death • Can’t invade the minimum contractual guaranteed values (Policy Value Account) • Can be positive or negative

  12. How the MVA Works • Insurance companies buy fixed income investments (mainly bonds) to support their fixed annuity liabilities. • When an annuity is surrendered, the company incurs a gain or a loss on the underlying asset. Scenario 2: Increasing Rates 10 Year Treasury at issue 4% 10 Year Treasury at surrender 6% Results in a Negative MVA Scenario 1: Decreasing Rates 10 Year Treasury at issue 4% 10 Year Treasury at surrender 2% Results in a Positive MVA

  13. What's to Like About:The SecurePlus Marquee 8 10 Year Surrender Charge Term Lower Surrender Charges = available nearly everywhere & BD friendly 8% Bonus Accumulation Value Immediately Vested at Death Immediately credited to the Marquee 8 GLIR Benefit Calculation Base Vested Years 11-15 for Cash Surrender Strong Interest Rates (Afforded by the MVA) LSW’s Excellent Reputation Renewal Rates Strong Ratings The Marquee 8 GLIR (Rider Form 8969(0411) and 8970(0411)) Marquee 8 is Policy Form 8965(0411) with rider forms 8966(0411) and 8967(0411)

  14. Income for LIFE!SecurePlus Marquee 8 Guaranteed Lifetime Income Rider

  15. SecurePlus Marquee 8 GLIR Features and Benefits Same Great Roll-up: 6% Compounding Guaranteed Years 1-8 (or to age 85, whichever is earlier) Roll-up Automatically Continues in Years 9-20: 3% Guarantee Current 6% Roll-up May Continue Guaranteed Withdrawal Percentage beginning at 4% at age 60 increasing 10 bps each year income is differed up to age 90. Income can begin after the first policy year Same Start/Stop Flexibility Same Enhanced (ADL) Benefit in approved states for single life level income

  16. Ultimate Protection:The Marquee 8 GLIR Added Features for Increased Benefits 8% BAV is IMMEDIATELY reflected in the Benefit Calculation Base Better Income than the standard GLIR 3% annual increasing Guaranteed Withdrawal Payment option Enhanced death benefit options before election of income Roll-up Ceases at 20 years or age 85 if earlier Charge Increases to 90 bps of AV

  17. Example - Accumulation Phase 55-year-old purchases $100,000 SecurePlus Marquee 8 with the Marquee 8 GLIR SecurePlus Marquee 8 Accumulation Value Day One - $100,000 3%* Average Interest Credited Annually Net OfRider Charges (*This is a hypothetical rate, and itis not guaranteed. The rate will vary.) AV End of Year 10 - $134,392 Guaranteed Lifetime Income Rider Benefit Calculation Base Day One - 108,000 6% Compounding Roll Up Rate End of Year 10 - 193,411

  18. Example - Distribution Phase Guaranteed Withdrawal Payments are elected at Age 65, Level Income Option SecurePlus Marquee 8 Accumulation Value (example only) End of Year 10 $134,392 GWP - $ 8,703 AV after Withdrawal $125,689 3.75% interest* + $ 4,713 (*Hypothetical rate) Rider Charge - $ 1,173 $129,229 GWP - $ 8,703 BAV Transfer + $ 1,932 AV end of yr 11 $122,458 Guaranteed Lifetime Income Rider Benefit Calculation Base End of Year 10 193,411 Lifetime Income Calculation 193,411 X 4.5% (Guaranteed Withdrawal Percentage @attained age of 65) $8,703 Guaranteed Income for Life The greater of the Accumulation Value or Benefit Calculation Base

  19. 3% Annual Increasing Guaranteed Withdrawal Payment Option

  20. Increasing Guaranteed Withdrawal Payment Option • Selected when income is elected – not at issue • Increases the Guaranteed Withdrawal Payment by 3% per year • Uses a lower Guaranteed Withdrawal Percentage than the level income option • Age 60 increasing GWP is 3% (vs. 4% level income option) • GWP increases 10 bps per year income is deferred • Guaranteed Withdrawal Payments stop increasing once the accumulation value is depleted • Payments continue at the level preceding the accumulation value depletion until death of the annuitant

  21. The Marquee 8 GLIR Death Benefit Options The Benefit Calculation Base Is Available at Death!

  22. SecurePlus Marquee 8 GLIRThe Death Benefit Before now, the Income Calculation Base was available for income only Now, the Benefit Calculation Base is Available as a Death Benefit 100% of Benefit Calculation Base payable over 5 Years, or Beneficiary can choose lump-sum death benefit that is the greater of: Policy Death Benefit 75% of Benefit Calculation Base Special Death Benefit ceases when lifetime income is elected No Underwriting No 5-year wait

  23. Marquee 8 GLIR Death BenefitGuaranteed assumptionsInitial Premium $100,000; No Lifetime Withdrawals Deferral Benefit Calc. 5-Pay Lump-Sum Lump-Sum YearsBaseOptionOptionYield At Death 10 $182,618 $36,523 $136,963 3.20% 15 $211,705 $42,341 $158,778 3.13% 20 $245,424 $49,084 $184,068 3.10% Assumes 6% Roll-up years 1-8 Assumes 3% Roll-up years 9-20

  24. Marquee 8 GLIR Death BenefitCurrent assumptionsInitial Premium $100,000; No Lifetime Withdrawals Deferral Benefit 5-Pay Lump-Sum Lump-Sum YearsBaseOptionOptionYield At Death 10 193,411 $38,682 $145,058 3.79% 15 258,828 $51,765 $194,121 4.52% 20 346,370 $69,274 $259,777 4.89% Assumes 6.0% Roll-up years 1-20

  25. Feel the Power ! SecurePlus Marquee 8 & Marquee 8 GLIR

  26. Maximize Money Saved! Steve is a 62-year old and plans on retiring in a year. He saved $250,000 in an IRA If he earns 3% over the next year, his estimated income would be $10,300 using 4% withdrawals. He wants something better. Marquee 8 GLIR will generate a level income at age 63 of: $12,306 for LIFE That is an additional income of $2,006 per year!

  27. Same Income for Less Money! Susan is a 55-year old and plans on retiring at age 63. After looking at all her sources of income, she realizes she will need her savings to generate $8,000 a year to reach her income goal. If she earns 4% over the years, she will have to set a side $146,138 today to withdraw the $8,000 needed using the 4% withdrawal method. She is looking for a more efficient solution. Marquee 8 GLIR will generate $8,000 with a contribution of only: $108,082 That is $38,056 less to get the same income! PLUS it is Guaranteed for Life!

  28. SecurePlus Marquee 8 Delivers • 8% Bonus Accumulation Value • Immediately credited to the Benefit Calculation Base • Included in the death benefit day one • 10/10 withdrawal charge schedule • Strong rates with LSW’s reputation for maintaining rates (no 1st yr teasers) • Marquee 8 GLIR • More income than standard GLIR • Compounding roll up rate • 3% increasing income option • Benefit Calculation Base is payable as a death benefit • Full amount over 5 years, or • 75% of Benefit Calculation Base paid as a lump sum

  29. Questions Contact the National Life Group Sales Desk at 1-800-906-3310

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