ING Fixed and Variable Annuities

Transcription

1 ING Annuity Product Training ING USA Annuity and Life Insurance Company ( ING USA ) ING Life Insurance and Annuity Company ( ILIAC ) ReliaStar Life Insurance Company ( RLIC ) ING Fixed and Variable Annuities For Agent Use Only. Not For Public Distribution.

2 ING Annuity Product Training Welcome and thank you for participating in ING s product training! This training is designed to provide you with an overview of the ING s annuity products and to prepare you to offer these products as a possible financial solution to your clients. You cannot solicit business for any one of these products until you attest that you have reviewed this material. In order to complete this session you must read each slide before advancing to the next. Once you have completed this course, you will be asked to attest that you have reviewed the product training materials. Once ING receives this notification, you will be able to solicit these ING annuities. ING will NOT be able to process and issue business until we receive this notification of training completion. Thank you for choosing ING! For Agent Use Only. Not For Public Distribution

3 Disclosure Index annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and earnings potential that is linked to participation in the growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees are backed by the financial strength of the insurance company. Investors are cautioned to carefully review an index annuity for its features, costs, risk and how the variables are calculated. IRAs and other qualified plans already provide tax deferral like that provided by an annuity. For a cost, annuities provide other features and benefits such as contract guarantees, death benefits or lifetime income. If other options are available, clients should not purchase a qualified annuity unless they want these additional features and benefits taking into account their cost. All guarantees are based on the financial strength and claims paying ability of ING USA Annuity and Life Insurance Company, who is solely responsible for all obligations under its policies. "Standard & Poor's", "S&P 500" and "Standard & Poor's 500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by ING USA Annuity and Life Insurance Company. This product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of purchasing this product. The Point-to-Point Participation and Cap Interest Rate Benchmark Strategy, referred to herein as Interest Rate Benchmark Strategy, uses the Interest Rate Benchmark of the three month London Interbank Offered Rate ("BBA LIBOR") denominated in U.S. Dollars, as set by the British Bankers' Association. In consideration for BBA LIBOR Limited ( BBALL ) coordinating and the BBA LIBOR Contributor Banks and Reuters (the Suppliers ) supplying the data from which BBA LIBOR is compiled, the subscriber acknowledges and agrees that, to the fullest extent permitted by law, none of BBALL or the Suppliers:- (1) accept any responsibility or liability for the frequency of provision and accuracy of the BBA LIBOR rate or any use made of the BBA LIBOR rate by the subscriber, whether or not arising from the negligence of any of BBALL or the Suppliers; or (2) shall be liable for any loss of business or profits nor any direct, indirect or consequential loss or damage resulting from any such irregularity, inaccuracy or use of the Information. The Beginning Number is the published value of the Index or Interest Rate Benchmark. Annuities are products of the insurance industry. They are not deposits in, obligations of, or guaranteed by a bank or any other financial institution and are not insured by the FDIC. For Agent Use Only. Not For Public Distribution

4 ING Secure Index Family of Annuities Common Features Issue Ages Premium ING Secure Index Opportunities Plus Annuity ING Secure Index Outlook Annuity ING Secure Index Seven Annuity 0-80 owner & annuitant (Ages 0-75 for Secure Opportunities Plus in the states of IA, IN, and MS) $15,000 minimum $1 million maximum without Home Office approval ING Secure Index Five Annuity Premium Banding Availability of bands may vary with market conditions Interest Rate Guarantee Period Death Benefit Low: $15,000-$74,999 High: $75,000+ Annual Reset interest is credited annually at the end of the contract year Greater of accumulation value or minimum guaranteed contract value Free Withdrawal Provision Payment Plans Nursing Home & Terminal Illness Waivers Not available in MA CN st year: interest only from Fixed Rate Strategy (Secure Outlook is 10% all years) After 1 st year: up to 10% of accumulation value Cash surrender value (Secure Five is the greater of the accumulation value or minimum guaranteed contract value) Available after 1 st year 45 days confinement during any 60-day period Terminal illness (<12 months life expectancy) For Agent Use Only. Not For Public Distribution. 4

5 Interest-Crediting Strategies Fixed Rate Strategy: Premium receives interest credited at a fixed rate that is declared at the beginning of each contract year by the company. Index-Linked Interest-Crediting Strategies: Choice of six strategies* Point-to-Point Cap Index Strategy 1 Trigger Strategy 1 Monthly Cap Index Strategy 1 Monthly Average Index Strategy 1 Point-to-Point Participation Index Strategy 1 Interest Rate Benchmark 2 1 Related to increase, if any, of the S&P 500 Index 2 Related to increase, in any, of the 3-Month LIBOR Rate * Availability of these strategies may change periodically, and some strategies may not be available at the time of contract issuance. Please check ING s current interest rate sheet for availability of these strategies. For Agent Use Only. Not For Public Distribution. CN

6 CN Trigger Strategy Trigger Strategy Available on the ING Secure Index family of annuities for new issues only* Trigger Strategy If the annual change in the S&P 500 during the contract year is greater than or equal to zero, the interest credited will equal the trigger rate. *This strategy may not be available in all states. Contact the ING Annuity and Asset Sales Desk for information for your state For Agent Use Only. Not For Public Distribution.

7 CN What is a Trigger Rate Trigger Rate Declared annually and guaranteed for one year for each premium or re-election The Trigger Strategy is measured from the beginning to the end of each anniversary (also known as annual point to point). The Trigger Rate will be credited, if the S&P 500 experiences growth greater than or equal to zero during the contract year. *The Trigger rate is subject to change for each premium or re-election, and for future contracts For Agent Use Only. Not For Public Distribution.

8 How the Trigger Strategy Works S&P 500 Feb 2011 Feb 2012 The Trigger Rate will be credited, if the S&P 500 experiences growth greater than or equal to zero during the contract year. For example, between February 2011 and February 2012, the S&P 500 rose slightly. On February 1 st 2011, the S&P 500 value was 1, One year later, the S&P 500 closed at , which is an increase of 1.26%. Assuming a Trigger Rate of 3.5%, an interest credit of 3.5% would occur because 1.26% is greater than or equal to 0%. *This interest-crediting strategy may not be available in all states. Contact the ING Annuity and Asset Sales Desk for information for your state For Agent Use Only. Not For Public Distribution. CN

9 Interest Rate Benchmark Strategy Interest Rate Benchmark Strategy Available on the Secure Index family of index annuities for new issues only* Interest Rate Benchmark Strategy Bases credit on an increase, if any, in the 3-month LIBOR multiplied by the Participation Multiplier. 1. What is the 3-month LIBOR? 2. What is the Participation Multiplier? *This strategy may not be available in all states. Contact the ING Annuity and Asset Sales Desk for information for your state For agent use only. Not for public distribution.

10 LIBOR 3-Month LIBOR 3-Month London Interbank Offered Rate Rate at which banks can borrow funds from other banks London Interbank Market Widely used benchmark for short-term interest rates Rate may change daily For agent use only. Not for public distribution

11 Participation Multiplier Participation Multiplier Factor applied to the Interest Rate Benchmark (IRB) change for each premium or re-election IRB change is measured from the beginning to the end of each anniversary Declared annually and guaranteed for one year for each premium or re-election Credit is applied up to IRB Credit Cap Cap is 10%* *IRB Credit Cap is subject to change for each premium or re-election, and for future contracts For agent use only. Not for public distribution.

12 How the Interest Rate Benchmark Strategy Works This strategy bases credit on an increase, if any, in the 3-Month LIBOR multiplied by the Participation Multiplier. Between March 1994 and March 1995, rates for the 3- Month LIBOR rose significantly. The graph to the left shows the rise in interest rates for the 3-Month LIBOR. In March 1994, the 3-Month LIBOR interest rate was 3.94%. One year later in March 1995, it was 6.27%, a positive difference in value of 2.33%. This difference is then multiplied by the Participation Multiplier of 4, to equal 9.31%. This value is compared to the Interest Rate Benchmark Credit Cap of 10% and the credit to the contract will be calculated using the lesser of the two. In this scenario, the amount credited to the contract will be 9.31%. *This interest-crediting strategy may not be available in all states. Contact the ING Annuity and Asset Sales Desk for information for your state For Agent Use Only. Not For Public Distribution. 12

13 Opportunistic Strategy ING Interest Rate Benchmark is an opportunistic strategy. It performs better when rates are low and have the potential to move higher The IRB gives your clients the opportunity to participate in rising rates and the other index strategies give your client the opportunity to participate in rising equity markets Contrary to other equity index strategies, the IRB is linked to an interest rate benchmark and does not have a direct correlation to the S and P 500. Part of a diversification strategy five different strategies available on the Secure Index products Retirement - Insurance - Investments For agent use only. Not for public distribution.

14 ING SmartLegacy Death Benefit ING SmartLegacy Death Benefit Optional rider available with any fixed index annuity from ING USA for new issues only* Ensures that the client s death benefit will grow at an annual rate within in the range of 3-5% ** *This rider may not be available in all states. Contact the ING Annuity and Asset Sales Desk for information for your state **The ING SmartLegacy Rollup rate is subject to change for new contracts For agent use only. Not for public distribution.

15 Maximum Death Benefit Base The Death Benefit Base will increase until: The contract anniversary following the client s 80 th birthday, or The rollup reaches 200% of premiums paid also known as the Maximum Death Benefit Base* * The 200% cap is subject to change for new contracts. Additional premiums will increase the cap by 200% of the premiums paid. Beneficiaries receive the greater of: Death Benefit Base premiums paid plus any applicable bonus, adjusted for any partial surrenders, increasing within the range of 3-5% annually. Current accumulation value the value of the client s contract Minimum Guaranteed Contract Value For agent use only. Not for public distribution.

16 Other Features Issue Ages: 0-75 Annual Charge: currently 0.65% of Death Benefit Base deducted quarterly Rider Charge Refund: at Latest Maturity Date of contract, total rider charges are refunded to client, or added to annuitization amount Partial Surrenders: Death Benefit Base & Maximum Death Benefit Base reduced pro rata Withdrawals taken under the IncomeProtector Withdrawal Benefit rider reduce Death Benefit Base and Maximum Death Benefit Base on pro rata basis Reduced further if surrender results in: surrender charges* bonus recapture* negative Market Value Adjustment* * By current company practice, above reductions not applicable to partial surrenders for RMDs For agent use only. Not for public distribution.

17 How the ING SmartLegacy Death Benefit Works For agent use only. Not for public distribution. Retirement - Insurance - Investments

18 Clients Who May Benefit Those concerned for their family s welfare Those needing to provide for beneficiaries Clients wanting to preserve assets for their family Clients choosing to leave a legacy to their family or favorite charity For agent use only. Not for public distribution. Retirement Insurance - Investments 18

19 ING IncomeProtector Withdrawal Benefit Optional living benefit that can be added at issue to any ING USA Annuity and Life Insurance Company (ING USA) fixed index annuity contract For issue ages Available at an additional cost not available in all states Guaranteed Income for Life Ability to receive or defer withdrawals at anytime Guaranteed Growth during the first 10 years of Deferral Phase 6% Compounding Roll-Up during the first 10 years of the Deferral Phase Annual Ratchet during both the Deferral and Withdrawal Phase 100% Return of Rider Charges at Death Withdrawals: 4.0% to 7.0% of Benefit Base for individuals, 3.5% to 6.5% for joint Annual charge of 0.65% of Withdrawal Benefit Base Annuity income is defined as a series of periodic payments, a part of which may be return of your premium or principal, which is guaranteed by the issuing insurance company for a specified period of time or for the life of the annuitant. All guarantees are based on the financial strength and claims paying ability of ING USA Annuity and Life Insurance Company, who is solely responsible for all obligations under its policies. For Agent Use Only. Not For Public Distribution

20 ING Secure Index Five Annuity Product Concept Flexible premium deferred fixed index annuity offering a choice of five interest-crediting strategies. Premium Bonus: None Market Value Adjustment: None Minimum Guaranteed Contract Value: Not less than 87.5% of all premiums paid less withdrawals accumulated at the minimum guaranteed strategy value rate of 1.00%. Surrender Charges: Contract Year Percentage The surrender charge is a percentage of the accumulation value surrendered associated with the premium and declines over time. Secure Index Five follows a 5-year surrender charge period, calculated from the contract s date of issue. Flexible premiums added to the same contract will not extend surrender charge period beyond the original 5-yr surrender period. For Agent Use Only. Not For Public Distribution

21 ING Secure Index Five Annuity Cash Surrender Value: The cash surrender value equals the greater of the accumulation value, less any surrender charge, or the minimum guaranteed contract value. Fixed Rate Strategy Minimum Guaranteed Interest Rate: The Fixed Rate Strategy s minimum guaranteed interest rate is 1.0% and is not tied to the minimum guaranteed strategy value rates. Return of Premium Rider: Guarantees the cash surrender value will never be less than the sum of all premiums, less partial surrenders or withdrawals, less any applicable premium tax. Note: If this rider is elected, credited rates applied to the contract will be less favorable than credited rates on a contract without the rider. This rider is not available in all states. For Agent Use Only. Not For Public Distribution

22 ING Secure Index Seven Annuity Product Concept Flexible premium deferred fixed index annuity offering a choice of five interest-crediting strategies. Premium Bonus: None Market Value Adjustment: None Minimum Guaranteed Contract Value: Not less than 87.5% of all premiums paid less withdrawals accumulated at the minimum guaranteed strategy value rate of 1.0%. Surrender Charges: Contract Year Percentage Charges may differ for some states and for ages 56 plus. The surrender charge is a percentage of the accumulation value surrendered that is associated with the premium and declines over time. Secure Index Seven follows a 7-year surrender charge period, calculated from the contract s date of issue. Flexible premiums added to the same contract will not extend surrender charge period beyond the original 7-yr surrender period. For Agent Use Only. Not For Public Distribution

23 ING Secure Index Seven Annuity Cash Surrender Value: The cash surrender value equals the greater of the accumulation value, less any surrender charge, or the minimum guaranteed contract value. Fixed Rate Strategy Minimum Guaranteed Interest Rate: The Fixed Rate Strategy s minimum guaranteed interest rate is 1.0% and is not tied to the minimum guaranteed strategy value rates. For Agent Use Only. Not For Public Distribution

24 ING Secure Index Opportunities Plus Annuity Product Concept Single premium deferred fixed index annuity with a premium bonus and a choice of five interestcrediting strategies. Premium Bonus: 5% of the single premium paid Bonus Recapture: Contract Year Percentage Bonus recapture may differ in some states. The bonus recapture is a percentage of the accumulation value surrendered that is associated with the bonus and declines over time. Market Value Adjustment: The MVA may increase or decrease the accumulation value of your annuity if more than the free withdrawal amount is surrendered before the end of the 10th contract year. Minimum Guaranteed Contract Value: Not less than 87.5% of the single premium paid, less withdrawals, accumulated at the minimum guaranteed strategy value rate of 2.00%. For Agent Use Only. Not For Public Distribution

25 ING Secure Index Opportunities Plus Annuity Surrender Charges: Contract Year Percentage Charges may differ for some states. The surrender charge is a percentage of the accumulation value surrendered that is associated with the premium and declines over time. Cash Surrender Value: The cash surrender value equals the greater of the accumulation value, adjusted for any MVA, less any surrender charge and bonus recapture or the minimum guaranteed contract value. Fixed Rate Strategy Minimum Guaranteed Interest Rate: The Fixed Rate Strategy s minimum guaranteed interest rate is 1.0% and is not tied to the minimum guaranteed strategy value rates. *Contact the Fixed Annuities Sales Desk for information for your state For Agent Use Only. Not For Public Distribution

26 ING Secure Index Outlook Annuity Product Concept Single premium deferred fixed index annuity with a premium bonus and a choice of five interestcrediting strategies. State Approvals: Click here for state availability or call Premium Bonus: 3% of the single premium paid Minimum Guaranteed Contract Value: Not less than 87.5% of the single premium paid less withdrawals accumulated at the minimum guaranteed strategy value rate of 2.00%. Surrender Charges: Contract Year Percentage Minimum Guaranteed Contract Value & surrender charges may differ for some states. The surrender charge is a percentage of the accumulation value surrendered that is associated with the premium and declines over time. For Agent Use Only. Not For Public Distribution

27 ING Secure Index Outlook Annuity Cash Surrender Value: The cash surrender value equals the greater of the accumulation value, less any surrender charge and bonus recapture or the minimum guaranteed contract value. Fixed Rate Strategy Minimum Guaranteed Interest Rate: The Fixed Rate Strategy s minimum guaranteed interest rate is 1.0% and is not tied to the minimum guaranteed strategy value rates. For Agent Use Only. Not For Public Distribution

28 ING Envoy Index Family of Annuities Common Features Issue Ages Premium Premium Banding Interest Rate Guarantee Period Death Benefit ING Envoy Three Fixed Indexed Annuity* / ING Envoy Six Fixed Indexed Annuity ING Envoy Nine Fixed Index Annuity 0-80 owner & annuitant $15,000 minimum (Non-qualified); $10,000 minimum (Qualified) $1 million maximum without Home Office approval Low: $15,000-$74,999 High: $75,000+ Annual Reset Index Credit is credited annually at the end of the contract year Greater of accumulation value or minimum guaranteed contract value Free Withdrawal Provision Payment Plans Nursing Home & Terminal Illness Waivers Each year: up to 10% of accumulation value Cash surrender value Available after 1 st year 45 days confinement during any 60-day period Terminal illness (<12 months life expectancy) *Please note that the ING Envoy Three and Six Fixed Indexed Annuities are not currently available for sale, but may be made available in the future. For Agent Use Only. Not For Public Distribution

29 ING Envoy Index Annuities Fixed Rate Strategy Minimum Guaranteed Interest Rate: The Fixed Rate Strategy s minimum guaranteed interest rate is 1.0% and is not tied to the minimum guaranteed strategy value rates. With the ING Envoy Index Annuities, the interest credited, if any, is based on a blend of the performance of two indices during the year: S&P 500 Index The S&P 500 Index is widely regarded as the premier benchmark for U.S. stock market performance. The index contains stocks from 500 large, leading companies in various industries. STOXX - This index covers 50 stocks from 12 Eurozone countries. Eurozone countries are those that use the Euro as their currency. This index provides a blue-ship representation of supersector leaders in the Eurozone. Interest credited, if any, is based on a blend of 70% of the performance of the S&P 500 Index and 30% of the performance of the STOXX 50 Index. The credited interest is limited to the annual index cap applicable to the Point-to-Point Cap Index Strategy. For more information on these index-linked strategies, click on the attachments tab. For Agent Use Only. Not For Public Distribution

30 ING Envoy Index Annuities Product Concept Flexible premium deferred fixed index annuity offering a choice of three interest-crediting strategies. Premium Bonus: None Interest-Crediting Strategies - Fixed Rate Strategy - Point-to-Point Participation Index (not currently available) - Point-to-Point Cap Index Note: Re-elections of strategies are allowed during the 30 days following each premium anniversary of the accumulation value associated with the anniversary. Market Value Adjustment: The MVA may increase or decrease the accumulation value of your annuity if more than the free withdrawal amount is surrendered before the end of the 9th contract year. For Agent Use Only. Not For Public Distribution

31 ING Envoy Index Annuities Minimum Guaranteed Contract Value: Not less than 87.5% of all premiums paid less withdrawals accumulated at the minimum guaranteed strategy value rate of 1.00%. Surrender Charges: Contract Year Percentage day withdrawal window for Envoy Three 30-day withdrawal window for Envoy Three & Six At the end of the third (Envoy Three) and sixth (Envoy Three and Six) contract years, the client has a 30-day window to make full or partial withdrawals without incurring a surrender charge or a market value adjustment. The surrender charge is a percentage of the accumulation value surrendered that is associated with the premium and declines over time. For Agent Use Only. Not For Public Distribution

32 ING Envoy Index Annuities Cash Surrender Value: The cash surrender value equals the greater of the accumulation value, adjusted for any MVA, less any surrender charge, and the minimum guaranteed contract value. Contact the Fixed Annuities Sales Desk for information for your state *Please note that the ING Envoy Three and Six Fixed Indexed Annuities are not currently available for sale, but may be made available in the future. For Agent Use Only. Not For Public Distribution

33 ING Guarantee Choice Annuity Product Concept Single premium fixed deferred annuity providing a guaranteed interest rate for up to 10 years. Issue Ages: 0-80 Premium: $15,000 minimum $1,000,000 maximum without prior Home Office approval Premium Banding: Low: $15,000-$74,999 High: $75,000+ Interest Rate Guarantee Period: 3, 5, 7 and 10 years. (Availability of guarantee periods may vary by state and with current market conditions) Market Value Adjustment: Yes Death Benefit: Contract Accumulation Value For Agent Use Only. Not For Public Distribution

34 ING Guarantee Choice Annuity Free Withdrawals: 1 st year: interest only; after 1 st year: up to 10% of accumulation value Payment Plans: Years 1-9: cash surrender value; after 9 th year: accumulation value Nursing Home/Terminal Illness Waiver: 45 days confinement during any 60-day period; terminal illness (<12 months life expectancy) Surrender Charges: Contract Year Percentage The surrender charge is a percentage of the accumulation value. Charges may differ for ages 56+. The surrender charge is waived for 30 days following the end of an interest rate guarantee period. If the contract is renewed within 30 days of the interest rate guarantee period expiration, the surrender charge will continue, but will not reset. For Agent Use Only. Not For Public Distribution

35 ING Single Premium Immediate Annuity Product Concept Single premium fixed annuity providing an immediate stream of income to the owner. Issue Ages: Owners aged may choose a Life Only or Life with Period Certain payout option Premium: $15,000 minimum $2,000,000 maximum without prior Home Office approval Payment Plan options: Can provide a guaranteed payment plan for life, or for a specified number of years For Agent Use Only. Not For Public Distribution

36 ING Single Premium Immediate Annuity Payout Options: Issue Ages 35-80: Life Payment Plan Life Payment Plan with Period Certain Life Payment Plan with Cash Refund Life Payment Plan with Joint Survivor Life Payment Plan with Joint Survivor with Period Certain Joint and Last Survivor Joint and Last Survivor with Period Certain Increasing Payment Option Note: Once the client chooses a payout option, they will receive guaranteed payments for the amount and duration as described in their payout option. Not all payout options are available at all times or in all states. Please contact the Fixed Annuities Sales Desk for information for your state For Agent Use Only. Not For Public Distribution

37 ING Company Suitability and Business Guidelines For Agent Use Only. Not For Public Distribution

38 ING Business Guidelines and Code of Conduct As a producer for ING USA Annuity and Life Insurance Company, you must follow guidelines on market conduct. producers/companies held to high standard by public Companies value relationships with producers and clients Seeking high-quality sales force and long-term relationships Relationships of trust, conducting yourself honestly and ethically Summary only. As required in your agent contract, you must read in their entirety and comply with the ING Business Guidelines located at the ING For Professionals website For Agent Use Only. Not For Public Distribution

39 Fixed Annuity Suitability ING is committed to making sure that every fixed annuity we issue is suitable for our clients. There is no one-size-fits-all solution for suitable financial strategies. Each client has his or her own unique situation, and suitability must be determined on the totality of your client s circumstances. Every recommendation you make must be suitable for your client. A decision to recommend a fixed annuity should be based on a careful analysis of the information you gather from your client. This means that, before recommending the purchase or replacement of an annuity, you must first obtain a full and accurate picture of your client s individual needs, financial status and financial objectives. ING s Suitability Profile Form and Fixed Annuity Needs Analysis Form will help you do this. Points to Consider Age Marital Status Occupation Number and age of Dependents Number of years until retirement Investment Experience Financial Goals Annual Income Personal and Retirement Savings Risk Tolerance Annual Expenses Total Net Worth Tax Status Withdrawal Needs Liquid Net Worth For Agent Use Only. Not For Public Distribution

40 Advertising Defined Advertising includes: Printed & audiovisual material Websites & s Descriptive literature of insurer or producer used in Direct mail Newspaper Magazines Radio & TV Billboards Descriptive literature and sales aids Materials used for recruitment, training and education of annuity and insurance producers Prepared sales talks & presentations (seminars) For Agent Use Only. Not For Public Distribution

41 General Advertising Rules All advertising & marketing materials must be approved by ING USA s Advertising Compliance team before it is used Prior approval by all companies producer is licensed with (even if ING isn t referenced) Full legal name of company (ING USA Annuity and Life Insurance Company) or (ReliaStar Insurance Company of New York) must be clearly defined. The company name can be abbreviated thereafter ( ING USA ) or ( RLNY ). Must meet branding guidelines set forth by ING Titles and designations Please review ING s Business Guidelines for approved titles and designations. For Agent Use Only. Not For Public Distribution

42 Lead Generating Materials Examples of lead generating devices Response cards Website contact forms General rules: Needs to be designed and written to ensure compliance with state regulations and ING company policies Response cards should not reference seniors, and must be clear that annuities are being sold and an agent will be contacting persons who return the cards. Should not appear official in nature (IRS, FINRA, etc.) No phrases promoting hasty responses, such as: Important Probate Information Your Retirement Assets Could Be in Jeopardy Follow Federal and State do not call rules, and FCC Telemarketing Sales Rules For Agent Use Only. Not For Public Distribution

43 ING Annuity Product Training ING Life Insurance and Annuity Company ( ING ) Fixed/Variable Annuities ING Fixed & Variable Annuity For registered representative use only. Not for public distribution.

44 Disclosure Clients should consider the investment objectives, risks and charges, and expenses of the annuity carefully before investing. The prospectus for the annuity contains this and other information. Clients may obtain a free prospectus by calling their financial professional. Clients should read the prospectuses carefully before investing. Variable annuities are long-term investments designed for retirement planning. They are a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you. Additionally, variable annuities offer the opportunity to allocate premiums among fixed and variable investment options that have the potential to grow income tax-deferred, until an income stream begins. These payments, called annuity income, will begin either immediately or at a future date and a part of which may be the return of your premium or principal. This income is guaranteed by the issuing insurance company for a specified period of time or for the life of the annuitant. Optional benefits and riders are available for an additional cost. IRAs and other qualified plans already provide tax deferral like that provided by an annuity. For a cost, annuities provide other features and benefits such as contract guarantees, death benefits or lifetime income. If other options are available, clients should not purchase a qualified annuity unless they want these additional features and benefits taking into account their cost. All guarantees are based on the financial strength and claims paying ability of ING Life Insurance and Annuity Company, who is solely responsible for all obligations under its policies. ING Income Annuity is issued by ING Life Insurance and Annuity Company (ILIAC), (Windsor, CT) and distributed by Directed Services LLC. Both are members of the ING family of companies. For registered representative use only. Not for public distribution. Retirement Insurance - Investments 44

45 ING Education Product Suite ReliaStar Life Insurance Company Products What features do you want in an annuity? New Money Rate Products ING QuintaFlex II ING Retirement Plus ING StrataFlex ING SingleSaver Portfolio Rate Products ING Premier Flex Annuity ING Premier 5 Annuity ING Premier 3 Annuity Multi Year Guarantee Annuity ING MVA Equity Index Annuity ING Retirement Index Select 45

46 New Money Rate Fixed Annuity New Deposits Each purchase payment will earn the current new money interest rate in effect when the purchase payment is received This rate is guaranteed for a set period of time (12 months or through the end of a calendar year, varies by product) Old Money At the end of that initial period, a renewal rate is declared for each purchase payment and will continue to be set each year that purchase payment remains in the contract More than one interest rate will likely be in effect under the contract at any time if more than one deposit has been made 46

47 QuintaFlex II Policy form # , , , , , st Year interest rate bonus on every deposit (not contractually guaranteed) Flexible premium deferred annuity 5% DSC (surrender charge) over 5 years Rolling 5% DSC (surrender charge) applies for 5 years after each purchase payment. No DSC after the 10 th year TX TRS(K-12) has a 7/6/5/4/3% DSC schedule) TSA, ROTH 403(b), 457, IRA. ROTH IRA, NQ product types Return of premium guarantee: TSA, Roth 403(b) and 457 only Four commission options Benefit sensitive for TSA/457: If separated on or after age 55 after 5 years in contract. (May not apply or be available in all states) Nursing Home and Disability Waiver (May not apply or be available in all states.) cn

48 Key Withdrawal Features ING QuintaFlex II Partial Annuitization First annuity payout date must be at least 60 days after the issue date. Contract owner must be eligible for a distribution under IRC rules in order to annuitize. Benefit Sensitive Feature for 403(b) and 457 Retired - age 55 AND Policy in force 5 years Calculating withdrawal charges: First In/First Out Withdrawal charge calculation: FIFO basis Withdrawals will be made on a LIFO basis 48

49 Benefit Sensitive Feature Client, Educator age High contributions Maxing Out Age 50 Age 51 Age 52 Age 53 Age 54 Age 55 Retired LUMP SUM? 20K 20K 20K 20K 20K 20K 120K + Interest + Lump Sum Surrender Penalty Free! 49

50 ING QuintaFlex II 1 st in 1 st Out Strategy Option to use when Benefit Sensitive Feature doesn t apply. Lump sum deposit opens contract. Client makes additional contributions. Additional Deposits At age 60, client still working, but needs money. NOTE: for the purpose of determining which interest rate buckets are withdrawn, withdrawals are made on a last-in, first-out basis. NO MORE SURRENDER CHARGE! $$ LUMP SUM $$ Valued Client Age 60 50

51 ING Retirement Plus Policy form # 15248, % premium bonus on all deposits in the first ten years (bonus vests in year or is available earlier if annuitized) $50 per payment or $500 annually qualified, $5000 NQ Roth 403(b), 403(b), 457, IRA, NQ 9-year decreasing DSC (surrender charge based on contract years) Expanded DSC waivers after 5 years in contract and separated after age 55 (not available in WA) Disability Waiver Periodic payment and Transfer annuities 51

52 ING StrataFlex Policy form #04200, 04201, % surrender-no penalty withdrawals if none taken in previous year, otherwise 10% $5,000 initial min, $50 per payment if by pre-authorized check or salary reduction after 10-year decreasing DSC (surrender charge) Nursing and Disability Waiver Transfer and Periodic payment annuities 52

53 ING SingleSaver Annuity Features 3% premium bonus on all first year deposits 7 Year Declining Contract; Year-based DSC, based on issue date no rolling! 403(b), 457, IRA, Roth 403(b), Roth IRA, not NQ Benefit Waivers*: RMD, annuitizations, sep from service at 55 and 5 contract years, disability, nursing home, death, and terminal illness Internal Exchanges 10% Free Waiver, including first year (May not apply or be available in all states.) ING SingleSaver Annuity Your Retirement Consolidator 53

54 ING SingleSaver Annuity New Business / New Money Minimum Premium $10,000 to open the account; thereafter 403(b) is $200 annually; others are $50 per payment. A new money rate product 7 year, non-rolling surrender charge Maximum Premium $500,000 Maximum issue age- 75 Agent compensation is structured in one schedule and includes: Premium Transfer Trail components ING SingleSaver Annuity Your Retirement Consolidator 54

55 Sales Situation Example CLIENT: Mary Joe Schoolteacher, Age 52 SITUATION: Managing multiple accounts and/or current plan sponsor is decreasing vendors. Looking for a 403(b) Consolidation Product with attractive bonus options. POTENTIAL SOLUTION: ING SingleSaver Annuity! Your Retirement Consolidator 55

56 Portfolio Rate Process Differences from new money rate products: No such thing as new money rate or renewal rate Old and new contributions receive the same credited rate - the portfolio rate Credited rates are reviewed quarterly, not monthly Credited rates are slow to change For some products an annual minimum credited rate is declared at the start of each year. This often is higher than the actual contractual minimum rate. The declared rate will never go below the annual minimum rate in a given calendar year. ING Premier Flex, 3 and 5 example: Contractual minimum = 1.00% 2011 declared minimum = 2.45% 07/01/2011 current rate = 2.45% 56

57 ING Premier Flex Annuity Policy form #40028, 40030, Portfolio Rate Annuity Premium bonus (guaranteed min): --1.5% on first year premiums Roth 403b, 403(b), 457, IRA, NQ 6 year DSC on each purchase payment. No DSC after 10 th contract anniversary Loyalty interest rate enhancement --50 basis points beginning on the 6th contract anniversary Benefit sensitive for TSA (not available in WA): --separated after age 55 --after 5 years in contract Other DSC waivers available for all LOB 57

58 ING Premier 3 Annuity Policy form #40029, 40031, WHY the ING Premier 3 Fixed Annuity? Transfer Fixed Annuity Policy Bonuses Portfolio Rate Fixed Interest Trail Commissions Available! Accepts transfer premium in the first contract year only Minimum initial premium of $5k up to $500k Premium bonus (all first contract year deposits): Over $50k 3%, $25k to $49, %, $5k - $24,999-0% Loyalty interest rate enhancement of 50 basis points after 6th contract anniversary Benefit Sensitive Waiver: No DSC if 5 years in contract and separated at 55 (TSA/457 only) (May not apply or be available in all states.) Other DSC Waivers (May not apply or be available in all states.) 58

59 ING Premier 5 Annuity Policy form #40035 and # % premium bonus on premium received in 1 st contract year of $50,000+ ( 2.5% if $25,000 - $49,999, No bonus if less than $25,000) Periodic Premium accepted in year 1 only; Transfer premium in first 5 contract years only Minimum initial premium of $5k up to $500k Loyalty interest rate enhancement of 25 basis points after 6th contract anniversary 6 year declining DSC (surrender charge), rolling based on each premium received (10 year cap) Maximum issue age: 80 59

60 ING MVA Policy form # Does your client want a truly fixed contract rate? 3% guaranteed minimum Client has 30 days at end of term to decide what to do with maturing funds 60 day rate lock from time of issue $5,000 minimum premium payment Starting in the second year, 10% of beginning year value may be surrendered each contract year without withdrawal charge or MVA Nursing home, disability, & terminal illness waivers of withdrawal charge MVA adjustment if applicable 60

61 Disclosure Index annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and earnings potential that is linked to participation in the growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may limit participation or returns in significant ways. Any guarantees are backed by the financial strength of the insurance company. Investors are cautioned to carefully review an index annuity for its features, costs, risk and how the variables are calculated. IRAs and other qualified plans such as 403(b) plans, already provide tax deferral like that provided by an annuity. Clients should purchase this annuity only if features other than tax deferral, such as contract guarantees and the ability to receive lifetime income, are right for them. All guarantees are based on the financial strength and claims paying ability of ReliaStar Life Insurance Company, which is solely responsible for all obligations under its policies. "Standard & Poor's", "S&P 500" and "Standard & Poor's 500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by ReliaStar Life Insurance Company. This product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of purchasing this product. The S&P 500 Index does not reflect dividends paid on the underlying stock. The Point-to-Point Participation and Cap Interest Rate Benchmark Strategy, referred to herein as Interest Rate Benchmark Strategy, uses the Interest Rate Benchmark of the three month London Interbank Offered Rate ("BBA LIBOR") denominated in U.S. Dollars, as set by the British Bankers' Association. In consideration for BBA LIBOR Limited ( BBALL ) coordinating and the BBA LIBOR Contributor Banks and Reuters (the Suppliers ) supplying the data from which BBA LIBOR is compiled, the subscriber acknowledges and agrees that, to the fullest extent permitted by law, none of BBALL or the Suppliers: (1) accept any responsibility or liability for the frequency of provision and accuracy of the BBA LIBOR rate or any use made of the BBA LIBOR rate by the subscriber, whether or not arising from the negligence of any of BBALL or the Suppliers; or (2) shall be liable for any loss of business or profits nor any direct, indirect or consequential loss or damage resulting from any such irregularity, inaccuracy or use of the Information. The Beginning Number is the published value of the Index or Interest Rate Benchmark. Annuities are products of the insurance industry. They are not deposits in, obligations of, or guaranteed by a bank or any other financial institution and are not insured by the FDIC. Withdrawals from the annuity contract, which also may be referred to as Full or Partial Surrenders, are permitted when the owner meets the requirements of the Internal Revenue Code and the terms of the employer s plan, generally upon the attainment of age 59 ½, severance from employment, death, disability, or, if permitted by the 403(b) plan, to exchange to another 403(b) investment product under the plan. The annuity contract does not allow for loans or allow distributions due to financial hardship. Withdrawals prior to age 59 ½ are subject to applicable tax penalties. 61 cn6

62 ING Retirement Index Select 403(b) Annuity * Common Features Issue Ages Single Premium** Premium Banding** Interest Crediting Period Death Benefit Contractual Free Withdrawal Provision 0-75 owner/annuitant (owner and annuitant must be the same) $15,000 minimum $1 million maximum without Home Office approval Low: $15,000-$74,999 High: $75,000+ Fixed Rate Strategy interest is credited daily at an annual rate Index/Benchmark Strategies interest is credited annually at the end of the contract year Greater of accumulation value or minimum guaranteed contract value 1 st year: interest only from Fixed Rate Strategy After 1 st year: up to 10% of accumulation value as of date of first withdrawal during that contract year Payment Plans Cash surrender value Available after 1 st year Various income options available Minimum Interest Rate of 1.0% Extended Medical Care & Terminal Waivers Surrender Charge Bonus Recapture Market Value Adjustment (MVA) 45 days confinement during any 60-day period after the first contract year Terminal condition (<12 months life expectancy) diagnosis received after the first contract year Waiver of Surrender Charge only; Market Value Adjustment & Bonus Recapture still apply if within the first ten contract years Contract Year Percentage 10% 10% 10% 10% 9% 8% 7% 6% 5% 4% 0% Contract Year Percentage 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% May increase or decrease the accumulation value of your annuity if more than the free withdrawal amount is surrendered before the end of the 10th contract year. Maturity Date Contract Anniversary following the Owner s attainment of age 95 *This product is not available in all states as per current company Fixed Index Annuity practice. Remaining states are being reviewed. **Subject to change 62 cn6

63 ING Retirement Index Select Product Concept Single premium deferred fixed indexed annuity available as a 403(b) annuity for exchanges, transfers and rollovers only with a premium bonus and a potential choice of up to six interest-crediting strategies. It allows the client to individually participate in potential upward market movement and allows them to personalize a view of the market through their strategy choices, while rewarding the client with baseline guarantees. Premium Bonus: 5% of the single premium paid¹ (You lose all or a portion of the premium bonus in certain circumstances that are discussed later.) Cash Surrender Value: The cash surrender value equals the greater of: 1) the accumulation value, including any Market Value Adjustment (MVA), less any surrender charge and bonus recapture or 2) the minimum guaranteed contract value.* Eligibility For Distributions: Withdrawals are permitted when the owner meets the requirements of the Internal Revenue Code and the terms of the 403(b) plan, generally upon the owner s attainment of age 59½, severance from employment, death or disability, or, if permitted by the 403(b) plan, to exchange to another investment product under the plan. The annuity contract does not provide for loans or allow distributions due to financial hardship. ¹ Products offering a bonus typically offer lower credited interest rates, participation rates, index caps, monthly caps, and/or higher index spreads than products not offering a bonus. Over time, and under certain circumstances, the impact of the bonus may be offset by the lower participation multipliers, credit caps, credited interest rates, participation rates, monthly caps, index caps and/or higher index spreads. Interest rates, participation rates, index caps, monthly caps, participation multipliers and index spreads are subject to change. *Contact the Sales Desk for your specific state information (866) , as state variations may 63apply. Not all strategies may be

64 Guarantees Minimum Guaranteed Contract Value: Sum of the Minimum Guaranteed Strategy Values Minimum Guaranteed Strategy Value: 87.5% of the single premium elected to the strategy, less withdrawals, accumulated at the minimum guaranteed strategy value rate. Minimum Guaranteed Strategy Value Rate: fixed for the first ten years and is an annual rate of at least 2% but not more than 3%. It will be reset annually beginning on the tenth contract anniversary and is an annual rate of at least 1% but not more than 3%. Fixed Rate Strategy Minimum Guaranteed Interest Rate: The Fixed Rate Strategy s minimum guaranteed interest rate is 1.0% and is not tied to the minimum guaranteed strategy value rates. It is up to the Company whether to credit interest at a rate higher than the guaranteed minimum interest rate, and if so, by how much. The Company considers a number of factors in deciding what interest rates to credit, including the Company s expected investment yields, interest rates offered by competitors, and the Company s own profit objectives. 64

65 Charges Surrender Charges*: A percentage of the accumulation value surrendered, net of any market value adjustment, and declines over time as follows: Contract Year Percentage 10% 10% 10% 10% 9% 8% 7% 6% 5% 4% 0% Bonus Recapture*: A percentage of the accumulation value surrendered, net of any market value adjustment, and declines over time as follows: Contract Year Percentage 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% Market Value Adjustment: The MVA may increase or decrease the accumulation value of your annuity if more than the contractual free withdrawal amount is surrendered before the end of the 10th contract year. *Surrender charges and/or bonus recapture schedule may differ for some states. 65

66 Charges cont d No Surrender Charge, Bonus Recapture, or Market Value Adjustment will be applied in the following circumstances: Partial Surrenders not exceeding: 1 st Contract Year: interest earned in the Fixed Rate Strategy* After 1 st Contract Year: up to 10% of accumulation value as of date of first withdrawal during that contract year *Note: All withdrawals will be taken pro rata from each of the strategies regardless of the year in which they are taken. Death of the Owner (bonus recapture will be assessed during first contract year) Payment of proceeds at the contract maturity date Payment of Required Minimum Distributions (RMD), as defined by Federal Law If contract is fully surrendered, surrender charges, bonus recapture and market value adjustment will apply to the total amount surrendered during that contract year, including all prior partial surrenders within that same contract year. Withdrawals are subject to Internal Revenue Code 403(b) withdrawal restrictions, and to applicable tax penalties if taken prior to age 59 ½. Loans and hardship withdrawals are not allowed under the contract. 66

67 Market Value Adjustment MVA is a positive or negative adjustment applied to the amount surrendered Comparison of 10 year Constant Maturity Treasury Rate at contract issue and date of full or partial surrender Generally positive (increases surrendered value) when interest rates decline, and negative (decreases surrendered value) when interest rates increase 67

68 MVA cont d Market Value Adjustment, either positive or negative, is limited to the amount of any interest or index/benchmark credits in excess of 1.5% per year, compounded annually, credited to the accumulation value* Example: Assume single Premium of $100,000 + $5,000 Bonus Assume first year s total interest, index and benchmark credits is $4,500 and second year s total interest, index and benchmark credits is $1,045 $105,000 at 1.5% per year, compounded annually for two years is: $105,000 * = $108, At the second contract anniversary, the +/- MVA is limited to: ($4, $1,045.00) $3, = $2, *State variations may apply 68

69 Interest-Crediting Strategies Premium may be elected to one or more available strategies. Fixed Rate Strategy: Premium receives interest credited daily at a fixed, annual rate that is declared at the beginning of each contract year by the company. Additional Interest-Crediting Strategies: Choice of four Index strategies and the Interest Rate Benchmark Strategy* Point-to-Point Cap Index Strategy Monthly Cap Index Strategy Monthly Average Index Strategy Point-to-Point Participation Index Strategy Interest Rate Benchmark Strategy Index Strategies are related to increases, if any, of the S&P 500 Index The Interest Rate Benchmark Strategy is related to the annual increase, if any, of the 3-month LIBOR Interest rate credits from the Index/Benchmark strategies are paid at the end of each contract year, and are floored at zero, so the return for each Strategy will never be less than zero For 30 days after each contract anniversary, all or a portion of the value in each Interest-Crediting Strategy can be re-elected to any other available strategy with no charges; otherwise you cannot move money from one strategy to another. *Availability of these strategies may change periodically, and some strategies may not be available at the time of contract issuance. Please check ING s current interest rate sheet for availability of these strategies. 69

70 S&P 500 Index & LIBOR S&P 500 Index Widely regarded as the premier benchmark for U.S. stock market performance 3-Month LIBOR 3-Month London Interbank Offered Rate London Interbank Market Rate at which banks can borrow funds from other banks Widely used benchmark for short-term interest rates Rate may change daily on business days as defined by the British Bankers Association (BBA) 70 cn6

71 How do the Index/Benchmark Interest-Crediting Strategies work? 71

72 Each strategy may have one or more of the following: Cap Participation Rate Multiplier Spread These are declared annually and guaranteed for that contract year 72

73 Examples The following assumptions apply to each of the examples: Contract issue date is January 1 $25,000 is put into each of the five index/benchmark strategies A 5% bonus is applied to the single premium The Interest Rate Benchmark movement during the first contract year is as follows: Rate on 12/31 of prior year 3.938% Rate on 12/31 of the first contract year 6.266% The S&P 500 index movement from 12/31 of the prior year through 12/31 of the first contract year is as follows: Index Date Index Number Index Date Index Number 12/ / / / / / / / / / / / /

74 Examples cont d Also assume the following parameters for the first contract year: Point-to-Point Participation Index Strategy Point-to-Point Cap Index Strategy Monthly Average Index Strategy Monthly Cap Index Strategy Interest Rate Benchmark Strategy Initial Participation Rate 25.00% % Initial Index Cap 4.00% Initial Monthly Cap 1.65% Initial Index Spread 7.00% Initial Interest Rate Benchmark Participation Multiplier 4.0 Initial Interest Rate Benchmark Credit Cap 10.00% 74

75 Point-to-Point Participation Index Strategy Point-to-Point Participation Index Strategy This strategy has the potential to perform better when the index is significantly higher at the end of the year than at the beginning of the year. Index Credit = the Annual Index Change multiplied by the Participation Rate, floored at zero Annual Index Change = Example: Annual Index Change = (1150/1000) 1 = 0.15 or 15.00% Index Credit = 15.00% * 25.00% = 3.75% Strategy Accumulation Value = $26,250 * = $27,

76 Point-to-Point Cap Index Strategy Point-to-Point Cap Index Strategy This strategy has the potential to perform better when the index return is near or below the cap. Index Credit = the lesser of: The Annual Index Change The Index Cap Annual Index Change = Example: Annual Index Change = (1150/1000) 1 = 0.15 or 15.00% Index Credit = 4.00% Strategy Accumulation Value = $26,250 * 1.04 = $27,300 76

77 Monthly Average Index Strategy Monthly Average Index Strategy This strategy has the potential to perform better when the index posts most of its gains early in the year or when the index drops sharply later in the year. Index Growth is measured using the Index Average Index Average = Average of Index Numbers for each Monthly Anniversary during the current Contract Year (13,165/12 = 1,097.08) Index Credit = The index growth multiplied by the Participation Rate, less the Index Spread, floored at zero Example: Index Growth = (1,097.08/1,000) 1 = 9.708% Index Credit = (9.708% * %) 7.00% = 2.708% Strategy Accumulation Value = $26,250 * = $26,

78 Monthly Cap Index Strategy Monthly Cap Index Strategy This strategy has the potential to perform better when the index displays stable and steady growth throughout the year. Monthly Index Change is the lesser of: Monthly Cap Monthly Index Growth = Index Credit = the sum of the twelve Monthly Index Changes during the Contract Year, with the sum floored at zero Example: Index Credit = 10.54% Strategy Accumulation Value = $26,250 * = $29, Monthly Index Growth Monthly Index Change Monthly Index Growth Monthly Index Change 1/ % 1.00% 7/ % 0.92% 2/ % 1.65% 8/ % 1.65% 3/ % 1.65% 9/ % 1.33% 4/ % 1.40% 10/ % -1.75% 5/ % -0.92% 11/ % 1.33% 6/ % 1.40% 12/ % 0.88% 78

79 Interest Rate Benchmark Strategy Interest Rate Benchmark Strategy This strategy has the potential to credit interest in an environment where interest rates are rising. Interest Rate Benchmark Credit = the Interest Rate Benchmark Change multiplied by the Participation Multiplier, subject to a Credit Cap, and floored at zero Interest Rate Benchmark Change = Interest Rate Benchmark at end of contract year minus Interest Rate Benchmark at beginning of contract year Example: Interest Rate Benchmark Change = 6.266% 3.938% = 2.328% Interest Rate Benchmark Credit = 2.328% * 4 = 9.312% Strategy Accumulation Value = $26,250 * = $28,

80 Opportunistic Strategy Interest Rate Benchmark is an opportunistic strategy* Performs better when interest rates are low and have the potential to move higher Contrary to the S&P 500 Index strategies, IRB strategy probably is not a long-term, ongoing strategy Part of a diversification approach six different strategies available on this product * This opportunistic strategy is designed to provide a credit in the event that short term interest rates rise over the interest rate benchmark period. If short term interest rates remain level or decrease over the interest rate benchmark period, this strategy will not provide a credit. 80

81 ING Company Suitability and Business Guidelines 81

82 ING Business Guidelines and Code of Conduct As a producer for ReliaStar Life Insurance Company, you must adhere to the following guidelines on market conduct: Remember that producers/companies are held to high standards by public ING values relationships with producers and clients We seek a high-quality sales force and long-term relationships with our representatives Conduct yourself honestly and ethically with the client s best interest at the forefront of all product recommendations This is a summary only. As required in your agent contract, you must read in their entirety and comply with the ING Business Guidelines located at the ING for Professionals website. 82

83 Fixed Annuity Suitability ING is committed to making sure that every fixed annuity we issue is suitable for our clients. There is no one-size-fits-all solution for suitable financial strategies. Each client has his or her own unique situation, and suitability must be determined on the totality of your client s circumstances. Every recommendation you make must be suitable for your client. A decision to recommend a fixed annuity should be based on a careful analysis of the information you gather from your client. This means that, before recommending the purchase or replacement of an annuity, you must first obtain a full and accurate picture of your client s individual needs, financial status and financial objectives. ING s Suitability Profile Form and Fixed Annuity Needs Analysis Form will help you do this. Points to Consider: Age Marital Status Occupation Number and age of Financial Goals Risk Tolerance Dependents Number of years until retirement Investment Experience Annual Income Personal and Retirement Savings Annual Expenses Total Net Worth Tax Status Withdrawal Needs Liquid Net Worth 83

84 Advertising Defined Advertising includes: Printed & audiovisual material Websites & s Descriptive literature of insurer or producer used in Direct mail Newspaper Magazines Radio & TV Billboards Descriptive literature and sales aids Materials used for recruitment, training and education of annuity and insurance producers Prepared sales talks & presentations (seminars) 84

85 General Advertising Rules All advertising & marketing materials must be approved by ReliaStar Life Insurance Company s Advertising Compliance team before it is used Prior approval by all companies producer is appointed with (even if ING isn t referenced) Full legal name of company (ReliaStar Life Insurance Company) must be clearly defined. The company name can be abbreviated thereafter as ( RLIC ). Must meet branding guidelines set forth by ING Titles and designations Please review ING s Business Guidelines for approved titles and designations. 85

86 Lead Generating Materials Examples of lead generating devices: Response cards Website contact forms General rules: Needs to be designed and written to ensure compliance with state regulations and ING company policies Response cards should not reference seniors, and must be clear that annuities are being sold and an agent will be contacting persons who return the cards. Should not appear official in nature (IRS, FINRA, etc.) No phrases promoting hasty responses, such as: Important Probate Information Your Retirement Assets Could Be in Jeopardy Follow Federal and State do not call rules, and FCC Telemarketing Sales Rules 86

87 ING Education Sales Desk 7:30am-5:30pm CST or 866-ING-TSAS

88 ING Variable Annuity Product Training Welcome and thank you for participating in Reliastar Life Insurance Company variable product training! This training is designed to provide you with an overview of the Reliastar Life Insurance Company (RLIC) Variable Annuity products and to prepare you to offer these products as a possible financial solution to your clients. You cannot solicit business for any one of these products until you attest that you have reviewed this material. In order to complete this session you must read each slide before advancing to the next. Once you have completed this course, you will be asked to attest that you have reviewed the product training materials. Once RLIC receives this notification, you will be able to solicit the RLIC annuities. RLIC will NOT be able to process and issue business until we receive this notification of training completion. Thank you for choosing Reliastar Life Insurance Company! cn

89 Important Disclosures Annuities are issued by ReliaStar Life Insurance Company (Minneapolis, MN). Variable annuities are distributed by ING Financial Advisers, LLC, (member SIPC). Both are members of the ING family of companies. Variable annuities are long-term investments designed for retirement planning. They are a contract between your client and an insurance company, under which the insurer agrees to make periodic payments to the client. Products and features vary by state and may not be available in all states. Refer to product guides or log onto for more detailed product information. All guarantees are based upon the financial strength and claims-paying ability of the issuing insurance company, who is solely responsible for obligations under its own policies. For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to '88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant's severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability. 89

90 ING Advantage Century Variable Annuity Policy form #13076, 13077, 13086, Flexible Premium of $50 per payment for IRA/NQ/457 (if automatic payment; otherwise $5,000 ($2,000 for IRA) 403(b), ROTH 403(b), 457, IRA, NQ product types Max issue age (owner & annuitant): 75 qualified; 80 NQ Minimum Premiums: $200 annually for 403(b) 6-year withdrawal charge on each purchase payment 7%, 7%, 6%, 5%, 4%, 2%, 0%; (8%,7%,6%,5%,4%,2%,0% in TX) no charges apply after 12th contract anniversary (TSA and 457 only) 10% of contract value may be withdrawn free from withdrawal charge annually 1.25% M&E, 0.15% admin charge, $30 contract fee per year (waived if contract value exceeds $25,000) Optional enhanced death benefit with 1-year step up (0.15% fee) Benefit Sensitive Waiver (TSA only): No DSC if 5 years in contract and separated at 55, and other DSC waivers 73 variable investment options; 3 fixed accounts

91 Benefit Sensitive Feature ING Advantage Century Client, Educator age High contributions Maxing Out Age 50 Age 51 Age 52 Age 53 Age 54 Age 55 Retired LUMP SUM? 20K 20K 20K 20K 20K 20K 120K + Interest + Lump Sum Surrender Penalty Free!

92 Sales Situation Example CLIENT: Mary Joe Schoolteacher, Age 52 SITUATION: Managing multiple accounts or current plan sponsor is decreasing vendors. Looking for a 403(b) Consolidation Product with attractive fixed account options. POTENTIAL SOLUTION: ING Advantage Century Annuity! Your Retirement Consolidator

93 ING Encore Flex- Variable Annuity Policy form # 40063, year withdrawal charge on each purchase payment (7%, 6%, 4%) 403(b), IRA, Roth IRA, NQ product types Max issue age (owner & annuitant) : 80 qualified and non-qualified $50 minimum payment Over 60 variable investment options 2 Dollar Cost Averaging Fixed Accounts - 6 month & 12 month terms Fixed Account D (portfolio interest rate option) 10% of contract value may be withdrawn free from withdrawal charge annually Benefit sensitive waiver: 5 years in contract and separated at 55 Disability, nursing home, and terminal illness waivers Two optional Death Benefits (Return of Purchase Payment, Annual Stepped Up)

94 ING Encore Flex Fees Mortality and Expense Administrative Expense (deducted quarterly) Annual Maintenance Fee (waived at $50,000) 1.40% 0.20% $35 Optional Death Benefits (deducted quarterly) Return of Purchase Payment Annual Stepped Up 0.05% 0.25%

95 ING Encore Flex Fixed Options Dollar Cost Averaging (DCA) Fixed Account New money interest rate $5,000 minimum to begin a term Only accepts purchase payments (not reallocations) 6 month or 12 month terms available DCA into variable options only (fixed to fixed not allowed) Currently, only allowed to participate in a DCA term once Fixed Account D- Portfolio interest rate Generally, reallocations and/or partial withdrawals from Fixed Account D are restricted to 20% in each rolling 12 month period No withdrawal charges apply Full withdrawals done as complete termination of contract are paid in five annual installments (1/5, 1/4, 1/3,1/2, and then the balance) Disability, nursing home, and terminal illness waivers for full withdrawal provision

96 Fixed Account D Full Withdrawal Example Assume a balance of $10,000 in Fixed Account D as of 1/1/11 and request for a full withdrawal is made. Payments will be as follows: Date Balance in Fixed Account D* Factor Payment 1/1/11 $10,000 1/5 $2,000 1/1/12 $8,240 1/4 $2,060 1/1/13 $6,365 1/3 $2,122 1/1/14 $4,370 1/2 $2,185 1/1/15 $2,251 1 $2,251 * Assumes 3.0% credited interest and no other transactions occur.

97 Fixed Account D Reallocation/Partial Withdrawal Example Reallocations and partial withdrawals are limited to 20% of the balance in Fixed Account D, less amounts withdrawn or reallocated in the past 12 months. Date Balance in Fixed Account D* Amount Available for Reallocation and Partial Withdrawal Actual Amount Reallocated or Partially Withdrawn 1/1/11 $10,000 $10,000 x 20% - $0 = $2,000 $1,000 6/1/11 $9,135 $9,135 x 20% - $1,000 = $827 $827 9/1/11 $8,370 $8,370 x 20% - $1,827 = ($153) therefore no additional amount available $0 1/1/12 $8,433 $8,433 x 20% - $0 = $1,687 $1,687 * Assumes 3.0% credited interest

98 ING Education Sales Desk 7:30am-5:30pm CST or 866-ING-TSAS

99 One more step You re almost finished IMPORTANT! To complete the final step for this training, you must close this window and return to the Course Home page (see below), click on right arrow at the top of the page, and complete the course attestation. Click on right arrow For Agent Use Only. Not For Public Distribution