Annuity and Life Insurance Product Update - Q2 2013


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This presentation is based on research from our quarterly Annuity and Life Insurance Product Update series on the Corporate Insight Blog. The blog articles review 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
second quarter of 2013.

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Annuity and Life Insurance Product Update - Q2 2013

  2. 2. TABLE OF CONTENTS 2  Introduction  Annuity o Lincoln Financial: Eleven New Funds o MetLife: Shield Level Selector o Nationwide: Destination Architect 2.0 o Pacific Life: Pacific Choice o Prudential: Six New Allocation Portfolios  Life Insurance o AXA Equitable: Athena SUL IV o Genworth Financial: Asset Builder IUL o MetLife: Convertible and Renewable Options Rider o MetLife: Promise Whole Life Select o Pacific Life: PremierCare Advantage UL  Corporate Insight Thought Leadership  About Corporate Insight  About the Author
  4. 4. 4 INTRODUCTION BACKGROUND This presentation is based on research from our quarterly Annuity and Life Insurance Product Update series on the Corporate Insight Blog. The blog articles review 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 second quarter of 2013.
  5. 5. FIRMS COVEREDINTRODUCTION Below is a list of the firms we track on a daily basis for our Annuity Monitor and Life Insurance Monitor research services: 5 Annuity Monitor Life Insurance Monitor o Allianz Life o Aviva o AXA Equitable 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 Prudential o TIAA-CREF o Transamerica o VALIC o Vanguard o AXA Equitable 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
  7. 7. LINCOLN FINANCIAL: ELEVEN NEW INVESTMENT FUNDS 7 ANNUITIES  Seven new Lincoln ChoicePlus Assurance fund options and four new American Legacy fund options were introduced in late May.  The new investment options seek to reduce exposure to market risks and enable clients to create a more diversified portfolio.  The eleven new options are made up of asset allocation options, as well as individual asset class options, and are managed by several well-known asset managers, including BlackRock, Dimensional, Fidelity and MFS.
  8. 8. METLIFE: SHIELD LEVEL SELECTOR 8 ANNUITIES  Highly customizable annuity allows clients to allocate the purchase payment to a number of Shield Options.  Each Shield Option is a combination of a level of protection (Shield Rate), index option, term length and either a Maximum Growth Opportunity or Step Rate option. o Shield Rate is the amount of protection realized if index performance is negative at the end of a selected term. o Maximum Growth Opportunity is the max percentage clients can earn for the term. Step Rate enables clients to lock in a pre-determined growth %. MetLife Advisor Website Promotional Image
  9. 9. NATIONWIDE: DESTINATION ARCHITECT 2.0 VARIABLE ANNUITY AND LIFETIME INCOME TRACK BENEFIT RIDER 9 ANNUITIES  Both products released in mid-May of 2013.  Destination Architect 2.0 annuity key features: o One-year enhanced death benefit rider o Spousal Protection Feature (SPF) o No surrender charges.  The Lifetime Income Track rider features guaranteed lifetime income without annuitization. o Annual step-up feature on the income benefit base o A joint option that allows income payments to continue for the contract owner’s spouse o Lifetime withdrawal percentages based on the owner’s age and rider duration o Underlying investment options with a maximum equity exposure of 70% and a minimum equity exposure of 40%
  10. 10. PACIFIC LIFE: PACIFIC CHOICE VARIABLE ANNUITY  New variable product introduced at the beginning of the second quarter of 2013.  Key features of the new annuity include: o Three withdrawal charge options o Optional stepped-up death benefit o Guaranteed lifetime income choices.  Withdrawal charge options include terms of 0, 3 or 5 years. 10 ANNUITIES Pacific Life Advisor Homepage Image
  11. 11. PRUDENTIAL: NEW ASSET ALLOCATION PORTFOLIOS  Prudential introduced six new asset allocation portfolios to its line of variable annuity investment choices in late May.  The new asset allocation portfolios include o BlackRock iShares ETF Portfolio o Defensive Asset Allocation Portfolio o Franklin Templeton Founding Funds Plus Portfolio o Goldman Sachs Multi-Asset Portfolio o Prudential Growth Allocation Portfolio o RCM World Trends Portfolio. 11 ANNUITIES Prudential Advisor Homepage Image
  13. 13. AXA EQUITABLE: ATHENA SUL IV 13 LIFEINSURANCE  Replaces Athena SUL III in approved jurisdictions after a 30-day transition period.  Offers all same features as Athena SUL III plus a new optional Extended No Lapse Guarantee rider for an additional monthly cost and a five-year No Lapse Guarantee rider for no additional cost.  Includes new underwriting classes, guaranteed minimum interest rate of 1.5%, surrender charge period of 15 years and is available with a Return of Premium Death Benefit Rider and Cash Value Plus Rider. AXA Equitable Advisor Homepage Image
  14. 14. GENWORTH FINANCIAL: ASSET BUILDER IUL 14 LIFEINSURANCE  First indexed universal life insurance product offered by the firm.  Combines a death benefit with tax-deferred cash accumulation and an optional Accelerated Benefit Rider for long-term care.  Additional features include: o Five crediting strategies linked to the % change of the S&P 500 o Fixed account guaranteed to never be credited with less than 2%, protection from market downside with a minimum crediting rate of 0% and a 15-year no-lapse guarantee.  The firm also unveiled a new index product-focused sales support microsite, The Index Institute, in accordance with product release. New Genworth Financial Advisor Homepage Image
  15. 15. METLIFE: CONVERTIBLE & RENEWABLE OPTIONS RIDER 15 LIFEINSURANCE  Introduced on April 27, 2013.  Available for sale with the MetLife One Year Term policy.  Extends coverage to five years and includes a conversion privilege that can be exercised in years two through five.  Includes the MetLife Income Guard that is designed to meet the financial needs of executives and medical professionals. o Offers competitive coverage limits, optional riders and definitions of disability that can be attractive to this audience.
  16. 16. METLIFE: PROMISE WHOLE LIFE SELECT 16 LIFEINSURANCE  Provides policy owners the option of three product types where they can elect to pay premiums for 10 years, 20 years or until age 65.  Offers multiple benefit riders including the acceleration of death benefit rider, the disability waiver of premium rider and The Enricher. o The Enricher is an optional paid-up additions insurance rider that allows the policyholder to pay additional premiums, including premium payment duration to age 100 and a premium load of 5%. MetLife Advisor Homepage Image
  17. 17. PACIFIC LIFE: PREMIERCARE ADVANTAGE UL  Key product features include: o Improved funds available for long-term care expenses o Money back option (return of premium benefit) o Tax-free death proceeds to beneficiaries.  For those in need of long-term care, the policy reimburses customers monthly for the cost of care received and offers a choice of benefit periods (2-8 years) and choice inflation benefit options. o Inflation benefit options enable customers to compound monthly benefits annually by 5% compound, 5% simple or 3% simple interest. 17 LIFEINSURANCE Pacific Life Advisor Homepage Image
  18. 18. CORPORATE INSIGHT THOUGHT LEADERSHIP 18 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. 2013 Mobile Finance Trends and Innovations This study includes commentary on mobile developments, key takeaways for financial services firms and thoughts on what’s next for mobile finance. Asset Management and Social Media: A Guide to Social Marketing This guide looks at how asset management firms use popular social media platforms such as LinkedIn, Twitter, Facebook, YouTube and Google+ to connect directly with investors and financial advisors. Also available as a slide deck. The Millennial Opportunity Whitepaper Examines the marketing tactics, strategies and online resources leading financial institutions are using to connect with Millennials. Also available as a slide deck. Apple iOS 7 Ideas for Financial Services Firms Apple iOS 7: Ideas for Financial Services Firms explains how firms can leverage the new features in iOS 7 to make their mobile apps more user-friendly.
  19. 19. 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. Corporate Insight welcomes the opportunity to speak with the media. If you are interested in citing our research or would like to schedule an interview with one of our analysts, please contact Intermarket Communications at 212-888-6115 or Media Inquiries 19 ANDREW WAY Senior Research Associate Annuity Monitor & Life Insurance 212-832-2002 x-136 BEN POUSTY Marketing Manager 212-832-2002 x-134
  20. 20. ABOUT THE AUTHORABOUTTHEAUTHOR ANDREW WAY SENIOR RESEARCH ASSOCIATE ANNUITY MONITOR AND LIFE INSURANCE MONITOR Andrew Way 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 leading annuity and life insurance providers offer prospective investors, clients and financial professionals. CONTACT ANDREW WAY: T: 212-832-2002 x-136 E: Annuity Monitor, Life Insurance Monitor and P&C Monitor are service marks of Corporate Insight, Inc.; all rights reserved. 20 Andrew graduated from Binghamton University in 2010 and has been a member of the Corporate Insight team since January of 2011.