INTRODUCING THE NEW. Summit Bonus Index. Sentinel Plan Summit Bonus Index

Transcription

1 INTRODUCING THE NEW Summit Bonus Index

2 FOR PRODUCER USE ONLY This presentation is intended for producer use only and should not be disclosed to the public. The information contained in this presentation is general in nature and is subject to the applicable annuity and rider language.

3 Contact Information Main Telephone (801) Toll Free Number (800) New Business Fax (801) (888) New Business/Suitability... Policy Services/Withdrawals.. Commissions.. Licensing Sales. Marketing/Advertising

4 Product Description Single Premium Deferred Annuity 10 Year Surrender Charge Premium Bonus 4 Interest Crediting Strategies Fixed Account Income Rider Guaranteed Lifetime Withdrawal Benefit

5 Product Highlights Type/Market Markets Issue Ages 0 to 80 Minimum Single Premium Maximum Single Premium Market Value Adjustment (MVA) Single Premium Fixed Index Deferred Annuity Qualified or Non-Qualified $5,000 (qualified) $10,000 (non-qualified) $1 Million (qualified or non-qualified) The MVA is specified in the contract. The MVA expires at the end of each Guarantee Period

6 Premium Bonus The Base Policy has a one-time Premium Bonus that is credited to the Accumulation Value on the Policy Date This bonus ranges from 5%-8% * depending on the state Premium bonus has a vesting schedule * during the surrender charge period *Premium Bonus and vesting schedules vary by state. Please refer to your state s Summit Bonus Index Agent Quick Sheet for more details.

7 Interest Crediting Indexing strategies will be benchmarked against the S&P 500 Index. Subject to applicable Caps and minimums (refer to Rate Sheet for current Caps) Caps are subject to change on each Policy Anniversary and are guaranteed for that Policy Year Crediting rate for a particular strategy can never fall below 0% Accumulation Value may be reallocated on an annual basis, 30 days prior to the Policy Anniversary date.

8 Interest Crediting - Caps A cap is a maximum interest rate that is used when calculating the Index Account s interest rate. The Point-to-Point, Monthly Average, and Daily Average strategies use an annual cap. The Monthly Sum strategy uses a monthly cap. Caps are guaranteed for each Policy Year and can be adjusted annually, but will never be less than the Guaranteed Minimum Cap.

9 Interest Crediting Strategies Annual Point-to-Point Monthly Averaging Daily Averaging Monthly Sum

10 Annual Point-to-Point Each Policy Anniversary, the S&P index value is compared to the S&P index value of the previous Policy Anniversary. The resulting return, up to the applicable cap, will be credited to the Accumulation Value.

11 1, , , , , , , , , , , , , Annual Point-to-Point - example 1, , , , Index Value Policy Year 7/1/2011 7/1/2012 Ending Index Value 1, Initial Index Value 1, Point-to-Point Cap 2.70% Interest Calculation: 1, , , % 0.00 Interest Rate = 1.68%

12 Monthly Averaging Each Policy Anniversary, the S&P index value for the 12 monthly Index Dates will be averaged and compared to the S&P index value of the previous Policy Anniversary. The resulting return, up to the Applicable cap, will be credited to the Accumulation Value.

13 1, , , , , , , , , , , , , Monthly Averaging - example 1, Index Value Policy Year 1/1/2011 1/1/2012 1, Month Sum 15, , Month Average 1, , Initial Index Value 1, Monthly Average Cap 2.90% Interest Calculation: , , , % Interest Rate = 1.43%

14 Daily Averaging Each Policy Anniversary, the S&P index values for each trading day of the Policy Year will be averaged and compared to the S&P index value at the beginning of the period. The resulting return, up to the applicable cap, will be credited to the Accumulation Value.

15 Daily Averaging - example 1, , , Index Value Policy Year Daily Index Sum (253 Index Values) 10/1/ /1/ , , Daily Average 1, Initial Index Value 1, Daily Average Cap 3.10% Interest Calculation: 1, , , % Interest Rate = 3.10%

16 Monthly Sum Each Policy Anniversary, the S&P performance will be determined for each month in the Policy Year. The sum of monthly changes in the S&P 500 will determine the overall crediting rate for the year. Each month, the S&P return will be subject to the applicable cap.

17 Monthly Sum - example Monthly Comparison Policy Year 10/1/ /1/ % 6.58% Monthly Sum Cap 1.61% 1.61% Cap 2.16% 5.29% 3.78% 2.50% 2.29% 2.70% Sum of Monthly Comparisons with cap 5.60% 1.05% -0.19% 0.95% Interest Rate = 5.60% -9.09%

18 Fixed Account The interest rate is guaranteed for each policy year and credited daily to the Accumulation Value. The interest rate will never dip below the guaranteed minimum of 1%.

19 Optional Income Rider Only available if the Annuitant is an owner Subject to a minimum issue age of 45 Available for an additional charge equal to 1.05% assessed on the Income Account Value and deducted from the Accumulation Value Can be renewed for an additional 10 years

20 Income Rider Premium Bonus An additional Premium Bonus equal to 1% of the initial premium is added to the Accumulation Value and Income Account Value when the Income Rider is selected at issue The Premium Bonus on the Base Policy is also credited to the Income Account Value when this rider is selected The total Premium Bonus when this rider is selected ranges from 6%-9% (Base Policy Premium Bonus * + Income Rider Premium Bonus) Subject to Premium Bonus vesting schedule * * Base Policy Premium Bonus and vesting schedules vary by state. Please refer to your state s Summit Bonus Index Agent Quick Sheet for more details.

21 Income Account Value The Income Account Value is used to calculate the annual Guaranteed Lifetime Withdrawal Benefit (GLWB) once elected Different than the Accumulation Value from which funds are available for withdrawals and surrenders It is not an amount that may be withdrawn and is not payable on death

22 Income Account Value - Rollup The Income Account Value will earn a 7% Annual Compound Rollup for 10 years provided the GLWB has not started The Rollup can be renewed for an additional 10 years unless: Oldest Owner, or Annuitant if Owner is a non-natural person, has turned 80 Rider has been terminated GLWBs have started

23 Income Account Value - Rollup The annual 7% Rollup stops at the earlier of: The start of the GLWB payments The day the oldest Owner, or Annuitant if the Owner is a Non-natural Person, turns 85; or The end of the initial Roll-up Term Period of 10 years unless the rider is renewed for an additional 10 years.

24 GLWB Guaranteed Lifetime Withdrawal Benefit GLWB guarantees that you may withdraw a specified amount each year even if the Accumulation Value is zero. The annual GLWB is equal to the Income Account Value multiplied by the Payout Factor corresponding to the attained age of the Owner when income starts. Benefits may begin any time after the first Policy Year once the owner has attained age 55

25 GLWB Payout Factors *Based on the Younger Joint Life

26 Income Account Calculation Example Issue Age: 55 Initial Premium: $65,000 9% Premium Bonus : $5,850* 100% allocated to Point-to-Point Initial Accumulation/Income Account Value: $70,850 *9% Premium Bonus = 8% Base Policy Premium Bonus + 1% Income Rider Premium Bonus

27 Income Account Calculation Example Policy Year Age Point-to-Point Interest Accumulation Account Value Rollup Interest Income Account Value % $70, % $75, % $72, % $81, % $74, % $86, % $76, % $92, % $78, % $99, % $80, % $106, % $80, % $113, % $83, % $121, % $85, % $130, % $85, % $139,372.67

28 GLWB Calculation Example GLWB elected at Age: 60 GLWB Payout Factor: 5.00% Accumulation Value: $80, Income Account Value: $106, GLWB = $106, X 0.05 = $5,316.34

29 GLWB Calculation Example Policy Year Age Point-to-Point Interest Accumulation Account Value Rollup Interest Income Account Value % $70, % $75, % $72, % $81, % $74, % $86, % $76, % $92, % $78, % $99, % $80, % $106, % $80, % $113, % $83, % $121, % $85, % $130, % $85, % $139,372.67

30 How to Quote Download rating software from OR Online quote engine through the Producer Portal

31 Settlement Options The Vested Value can be used to purchase one of the following Settlement Options after the 5 th Policy Anniversary. Life Income Only Life Income Period Certain Period Certain Only

32 Life Income Only We will pay equal monthly payments for the Annuitant s remaining lifetime. Payments end with the payment due just before the Annuitant s death. There is no death benefit under this option.

33 Life Income Period Certain We will pay equal monthly payments for the longer of the Annuitant s remaining lifetime or the period certain. If the Annuitant dies after all payments have been made for the period certain, payments shall end with the payment due just before the Annuitant s death.

34 Period Certain Only We will pay equal monthly payments for a period certain of not less than 10 years and not more than 20 years. After the fifth Policy Year, You may request a period certain of not less than 5 years and not more than 20 years.

35 Withdrawal Provisions A maximum of 2 withdrawals are allowed each Policy Year provided Each withdrawal must be at least $250 Accumulation Value cannot drop below $2500 Any withdrawals will impact the GLWB

36 Withdrawal Provisions The amount of the Accumulation Value that is available free from any Surrender Penalty, nonvested Premium Bonus and Market Value Adjustment is: For the first Policy Year The interest earned on the Fixed Account For subsequent Policy Years the Required Minimum Distribution OR up to 5% of the Accumulation Value, whichever is greater.

37 Surrender Value The Surrender Value is subject to: Surrender Charges Market Value Adjustment (MVA) Non-Vested Premium Bonus Minimum Guaranteed Surrender Value will never be less than required by Standard Non-Forfeiture Law.

38 Maturity Currently set at Annuitant s age 100, but may change or be state specific depending on state s approval Owner may request a lump sum or one of the Settlement Options available If no request is received, Cash Surrender Value will be used to purchase a Life with Ten Year Certain Annuity

39 Death of Owner Death Benefit is paid to the beneficiary. No penalties, non-vested premium bonus, or MVA applies to the Death Benefit. Beneficiary can take the Death Benefit as one of the following options: Lump Sum Distributed within five years Installment payments using a Settlement Option If the beneficiary is a non-natural person, a lump sum will be paid. If the only beneficiary is the surviving spouse of the Owner, the spouse may continue the Policy and become the new Owner.

40 Death of Annuitant Owner can designate a new Annuitant. If no new Annuitant is provided, the Owner, or older owner if jointly owned, will automatically become the Annuitant. If the owner is not a natural person, the Annuitant s death would be treated as a death of Owner.

41 Delivery Receipt? All Summit Bonus Index Annuity sales of $250,000 or greater will require a delivery receipt before commissions will be paid.

42 What now? Make sure you are appointed to sell Annuities through Sentinel All forms are available on the Producer Portal at

43 Why Sell Sentinel? Founded in 1948 and dedicated to the senior market Expanding product portfolio that includes: Final Expense Life Insurance Medicare Supplement/Select Hospital Advantage Annuities Competitive Commissions Strong financial background

44 Contact Information Main Telephone (801) Toll Free Number (800) New Business Fax (801) (888) New Business/Suitability... Policy Services/Withdrawals.. Commissions.. Licensing Sales. Marketing/Advertising

45 SUMMIT BONUS INDEX For More Info