ANNUITY AND LIFE INSURANCE PRODUCT UPDATE FIRST QUARTER 2014

Transcription

1 ANNUITY AND LIFE INSURANCE PRODUCT UPDATE FIRST QUARTER 2014 AUTHOR: JOSE MIGUEL SANTANA PUBLISHED: APRIL 2014 COPYRIGHT 2014 CORPORATE INSIGHT, INC.

2 ABOUT CORPORATE INSIGHT Crprate Insight prvides cmpetitive intelligence and user experience research t the natin s leading financial institutins. Fr ver 20 years, the firm has tracked technlgical develpments in the financial services industry, identifying best practices in nline banking and investing, nline insurance, mbile finance, active trading platfrms, scial media and ther emerging areas. There are n assumptins in Crprate Insight s wrk we use live accunts at all f the firms we research, prviding ur clients with unparalleled, unbiased intelligence n the cmpetitin. Press Cverage Cnnect With Us JOSE MIGUEL SANTANA Senir Research Assciate (646) jsantana@crprateinsight.cm MEDIA INQUIRIES Please Cntact Intermarket Cmmunicatins: (212) crprateinsight@intermarket.cm 2

3 TABLE OF CONTENTS Intrductin Annuity Natinwide: Lifetime Incme Capture Natinwide: Lifetime Incme Track Natinwide: New Heights Aviva/Athene: TargetBenefit5 ING: RenewalFLEX Prudential: HD Lifetime Incme v3.0 Life Insurance Genwrth: Fundatin Builder Index UL Prudential: PruLife Funders Plus UL AXA: BrightLife Prtect, Series 155 New Yrk Life: Chrnic Care Rider New Yrk Life: Asset Preserver MetLife: Simplified Issue Term Nrthwestern Mutual: Limited Pay Life Insurance Jhn Hancck: Accumulatin IUL and Lng-Tern Care Rider Crprate Insight Thught Leadership Abut the Authr 3

4 INTRODUCTION 4

5 INTRODUCTION BACKGROUND This quarterly slide deck examines new prduct releases frm annuity carriers and life insurers cvered in ur Annuity Mnitr and Life Insurance Mnitr research services (see full cverage list n next slide). Inside, we rundwn the new prducts intrduced in the first quarter f 2014 and highlight their key features. 5

6 INTRODUCTION FIRMS COVERED Belw is a list f the firms we track n a daily basis fr ur Annuity Mnitr and Life Insurance Mnitr research services: Annuity Mnitr Life Insurance Mnitr Allianz Life MetLife AXA Natinwide Athene AXA Fidelity ING Jacksn Natinal Jhn Hancck Lincln Financial MassMutual Natinwide New Yrk Life Pacific Life The Principal Prudential TIAA-CREF Transamerica VALIC Vanguard Genwrth Financial Jhn Hancck Liberty Mutual Lincln Financial MassMutual MetLife New Yrk Life Nrthwestern Mutual Pacific Life Principal Financial Prudential USAA 6

7 ANNUITY PRODUCT RELEASES 7

8 ANNUITIES NATIONWIDE: LIFETIME INCOME CAPTURE Rlled ut in late January and is part f the firm s suite f living benefit riders fr the Natinwide Destinatin Series 2.0 and New Yrk 2.0 variable annuities. Simple interest rll-up rate n the riginal incme benefit base and additinal purchase payments fr 15 years r until the first lifetime withdrawal. Features an annual step-up n the incme benefit base that lcks-in the highest mnthly cntract value n the rider anniversary. 8

9 ANNUITIES NATIONWIDE: LIFETIME INCOME TRACK Unveiled in late January and is part f the firm s suite f living benefit riders fr the Natinwide Destinatin Series 2.0 and New Yrk 2.0 variable annuities. It is meant fr mre fee-cnscius investrs. Has a jint ptin (available fr an additinal cst) fr cntinuing payments t a spuse, alng with an annual step-up feature. Delivers a Nn-Lifetime Withdrawal feature that can nly be exercised nce, is nt available in the first rider year and is available when the determining life reaches 59½. 9

10 ANNUITIES NATIONWIDE: NEW HEIGHTS Intrduced in Februrary, this new fixed indexed annuity is distributed by Annexus thrugh Independent Marketing Organizatins and ffers uncapped earning ptential, a rarity in the fixed indexed annuity wrld. The Natinwide High Pint 365 Lifetime Incme Benefit and the Natinwide High Pint riders are available at an additinal cst and each are available with a purchase payment bnus ptin. The annuity ffers clients the greater f ptential grwth f their cntract value r a fixed rate increase n their premium. 10

11 ANNUITIES AVIVA/ATHENE: TARGETBENEFIT5 Unveiled in early February and ffers tax-deferred retirement grwth ptential n a five-year withdrawal charge schedule. Presented alngside the tw pre-existing TargetBenefit Series annuities, which are n 10- and 15-year withdrawal charge schedules. TargetBenefit 5 currently ffers five indexed interest crediting strategies: 1-Year Pint-t-Pint Multiple Index 1-Year N-Cap Pint-t-Pint 1-Year Pint-t-Pint 1-Year Mnthly Cap 1-Year Mnthly Average 11

12 ANNUITIES ING: RENEWALFLEX Rlled ut in early February, the new feature is available with the ING Secure Index Five Annuity r ING Secure Index Seven Annuity. Gives clients the pprtunity t withdraw all r part f the Accumulatin Value assciated with a given premium, index strategy and indexing perid cmbinatin (withut surrender charges) when a renewal rate fr an indexed strategy is less favrable than the assciated previus waiver rate. 12

13 ANNUITIES PRUDENTIAL: HD LIFETIME INCOME V3.0 A new versin f the firm s Highest Daily variable annuity ptinal living benefit allws investrs t lck in the highest daily value f their annuity cntract (fr incme purpses) each day the market is pen. Offers flexibility t change the rll-up rate and/r the withdrawal percentages fr new cntracts in respnse t market cnditins. A Secure Value Accunt feature is a fixed-rate accunt that prvides grwth and stability t the annuity s accunt as 10% f each purchase payment is allcated t that accunt. 13

14 LIFE INSURANCE PRODUCT RELEASES 14

15 LIFE INSURANCE GENWORTH: FOUNDATION BUILDER INDEX UL Unveiled in early January, it is intended fr clients lking fr financial flexibility as it prvides affrdable death benefit prtectin and the ability t add lng term care cverage. Key features include a n-lapse guarantee fr up t 30 years, high cap rates fr five crediting strategies linked t the percentage change f the S&P 500 and an ptinal Accelerated Benefit Rider fr Lng Term Care Services (available fr an additinal cst). 15

16 LIFE INSURANCE PRUDENTIAL: PRULIFE FOUNDER PLUS UL This new universal life plicy ffers clients cst-effective death benefit prtectin with an extended N-Lapse Guarantee. Offers a chice between tw interest crediting accunt ptins The Fixed Accunt (ffers a cmpetitive interest crediting rate with a guaranteed minimum) and The Plus Accunt (cmbines the ptential t earn bth Basic Interest and Index Interest) the latter f which is tied t the perfrmance f the S&P 500. Additinally, the plicy features an ptinal BenefitAccess Rider, which allws cnsumers t advance up t 100% f the death benefit shuld they becme chrnically r terminally ill. 16

17 LIFE INSURANCE AXA: BRIGHTLIFE PROTECT, SERIES 155 The new flexible premium universal life plicy was unveiled in early February and ffers a traditinal Fixed Accunt, as well as a Select Accunt that targets clients fcusing n affrdable/lw cst death benefit prtectin with cash accumulatin. Include a lw-cst charge structure cmparable t a death benefit universal life prduct. Includes a premium allcatin structure that gives plicy hlders the flexibility t allcate premiums in any amunt t the fixed accunt, the select accunt r bth; thus enabling the ability t adjust allcatins based n changing market cnditins r persnal situatins. 17

18 LIFE INSURANCE NEW YORK LIFE: CHRONIC CARE RIDER The rider was released fr NYL s whle life prduct line and allws clients t accelerate their plicy s face amunt if they need help paying fr chrnic care needs as the premium cst f the rider is guaranteed t stay level. If plicy hlders d nt need t use their benefits fr chrnic care, funds remain intact as either life insurance benefits fr heirs r as cash value t help supplement retirement incme. After the insured is certified as permanently chrnically ill, plicy hlders can decide hw their mnthly claims are spent withut submitting receipts r a care plan fr claim reimbursement. 18

19 LIFE INSURANCE NEW YORK LIFE: ASSET PRESERVER The new single premium universal life plicy was intrduced in March and enables clients t accelerate the death benefit taxfree t pay fr lng-term care expenses. These expenses include medical equipment and lng-term care services utside the United States, hme health care, family care, adult day care, assisted living facilities, hspice care, and nursing hmes. The plicy als has a minimum death benefit guarantee, as well as a lifetime mney back guarantee, that ensure plicy hlders will never receive less than the premium paid if they surrender their plan. 19

20 LIFE INSURANCE METLIFE: SIMPLIFIED ISSUE TERM Unveiled in mid February, the new Simplified Issue Term Life Insurance prduct is available in face amunts frm $10,000 t $100,000, and is available fr anyne frm age The term t 90 prduct autmatically renews each year up t age 90 withut additinal underwriting. Annual premiums increase based n the insured s age in five-year increments. The plan des nt require a medical exam and can be purchased ver the telephne with same day apprval. 20

21 LIFE INSURANCE NORTHWESTERN MUTUAL: LIMITED PAY LIFE INSURANCE The new permanent life insurance plicy allws clients aged 0-85 t pay fr their permanent life insurance plicy ver predetermined perids f 10, 15 r 20 years, during which premiums remain level. An Additinal Purchase Benefit als allws parents r their children t purchase mre permanent life insurance fr the children based n their riginal health status. Clients receive guaranteed minimum cash value and may als be eligible fr dividends. 21

22 LIFE INSURANCE JOHN HANCOCK: ACCUMULATION IUL & LTC RIDER In late March, the firm updated its pre-existing Accumulatin IUL prduct t ffer significant cash value accumulatin and strng death benefit prtectin that can help supplement retirement incme. Additinally, the firm annunced that an imprved Lng-Term Care Rider is nw available fr all single life prducts. The updated Lng- Term Care Rider features an increasing death benefit ptin that prvides mre flexibility fr clients wanting t specify the amunt f cverage they need. 22

23 CORPORATE INSIGHT THOUGHT LEADERSHIP The Millennial Shift: Financial Services and the Digital Generatin This study will help financial services marketers, prduct managers and strategists t better understand Millennials and identify effective tactics fr serving this demgraphic. The study preview cntains six pages f excerpts fcusing n: Millennial mbile and digital usage trends, imprtance f educatin as a tl fr cnnecting with yung investrs, and best practice examples frm tw financial services firms that are effectively cnnecting with Millennials. The Cmplete Bitcin User Experience: Mining, Exchanges, Wallets and Beynd This study prvides a detailed analysis f hw Bitcins are created, traded and stred. The study includes reviews f the tp websites and nline services driving the Bitcin marketplace including Slush s Pl, Blckchain.inf and Cinbase amng thers Mbile Finance Trends and Innvatins This study draws n ur nging tracking f the industry as well as relevant develpments utside f the financial services space. This study includes cmmentary n mbile develpments, key takeaways fr financial services firms and thughts n what s next fr mbile finance. Senir Citizens & Mbile Finance: Design & Supprt Slutins t Empwer the Senir Set Using CI s user-testing expertise and nging mbile finance research, this slide deck highlights specific areas where senirs may struggle with financial services apps and ffers design and supprt slutins that will give this valuable audience the cmfrt and cnfidence t engage in mbile finance. Optimizing the Online & Mbile Experience fr Retirement Plan Participants This slide deck features industry best practices and includes five recmmendatins fr DC plan prviders lking t imprve their Web and mbile fferings. 23

24 ABOUT THE AUTHOR ABOUT THE AUTHOR Jse Miguel Santana Senir Research Assciate Annuity Mnitr and Life Insurance Mnitr Jse Miguel Santana is a Senir Research Assciate fr Crprate Insight s Annuity Mnitr and Life Insurance Mnitr research services. He has cnducted extensive research n the annuities and life insurance industries, examining the nline platfrms, custmer service capabilities and technlgical innvatins ffered t prspective investrs, clients and financial prfessinals. This quarterly study is the result f Jse Miguel s nging research int prduct releases frm leading annuity and life insurance prviders. Jse Miguel graduated frm James Madisn University in Cntact Jse Miguel Santana: (646) jsantana@crprateinsight.cm Cnnect with Jse Cnnect with CI Annuity Mnitr, Life Insurance Mnitr and P&C Mnitr are service marks f Crprate Insight, Inc.; all rights reserved. 24