Annuity and Life Insurance Product Update - Q1 2014

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This presentation reviews the new product releases from the annuity carriers and life insurers we cover in our Annuity Monitor and Life Insurance Monitor research services.

Inside, we review the new products introduced in the first quarter of 2014.

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Annuity and Life Insurance Product Update - Q1 2014

  1. 1. COPYRIGHT 2014 CORPORATE INSIGHT, INC. ANNUITY AND LIFE INSURANCE PRODUCT UPDATE FIRST QUARTER 2014 AUTHOR: JOSE MIGUEL SANTANA PUBLISHED: APRIL 2014
  2. 2. 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 jsantana@corporateinsight.com MEDIA INQUIRIES Please Contact Intermarket Communications: (212) 888-6115 corporateinsight@intermarket.com Press Coverage 2
  3. 3. TABLE OF CONTENTS 3  Introduction  Annuity o 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
  4. 4. INTRODUCTION 4
  5. 5. 5 INTRODUCTION 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.
  6. 6. 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: 6 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 Genworth Financial 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 INTRODUCTION
  7. 7. ANNUITY PRODUCT RELEASES 7
  8. 8. NATIONWIDE: LIFETIME INCOME CAPTURE 8 ANNUITIES  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.
  9. 9. NATIONWIDE: LIFETIME INCOME TRACK 9 ANNUITIES  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.
  10. 10. NATIONWIDE: NEW HEIGHTS 10 ANNUITIES  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.
  11. 11. AVIVA/ATHENE: TARGETBENEFIT5 11 ANNUITIES  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
  12. 12. ING: RENEWALFLEX 12 ANNUITIES  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.
  13. 13. PRUDENTIAL: HD LIFETIME INCOME V3.0 13 ANNUITIES  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.
  14. 14. LIFE INSURANCE PRODUCT RELEASES 14
  15. 15. GENWORTH: FOUNDATION BUILDER INDEX UL 15 LIFEINSURANCE  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).
  16. 16. PRUDENTIAL: PRULIFE FOUNDER PLUS UL 16 LIFEINSURANCE  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.
  17. 17. AXA: BRIGHTLIFE PROTECT, SERIES 155 17 LIFEINSURANCE  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.
  18. 18. NEW YORK LIFE: CHRONIC CARE RIDER 18 LIFEINSURANCE  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.
  19. 19. NEW YORK LIFE: ASSET PRESERVER 19 LIFEINSURANCE  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.
  20. 20. METLIFE: SIMPLIFIED ISSUE TERM 20 LIFEINSURANCE  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.
  21. 21. NORTHWESTERN MUTUAL: LIMITED PAY LIFE INSURANCE 21 LIFEINSURANCE  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.
  22. 22. JOHN HANCOCK: ACCUMULATION IUL & LTC RIDER 22 LIFEINSURANCE  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.
  23. 23. CORPORATE INSIGHT THOUGHT LEADERSHIP 23 The Millennial Shift: Financial Services and the Digital Generation This 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 Beyond This 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 Innovations This 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 Set Using 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 Participants This slide deck features industry best practices and includes five recommendations for DC plan providers looking to improve their Web and mobile offerings.
  24. 24. ABOUT THE AUTHORABOUTTHEAUTHOR Jose Miguel Santana Senior Research Associate Annuity 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 jsantana@corporateinsight.com 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

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