Annuity Product Training ReliaStar Life Insurance Company ( RLIC )

Transcription

1 Annuity Product Training ReliaStar Life Insurance Company ( RLIC ) ReliaStar Fixed and Variable Annuities CN

2 Important disclosures Annuities are issued by ReliaStar Life Insurance Company (Minneapolis, MN). Variable annuities are distributed by Voya Financial Partners, LLC (member SIPC). Both are members of the Voya TM family of companies. Fixed 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. 2

3 Voya Education Product Suite ReliaStar Life Insurance Company Products What features do you want in an annuity? New Money Rate Products QuintaFlex II Portfolio Rate Products Premier 3 Annuity Variable Annuity Advantage Century 3

4 Reliastar Fixed Annuity product training Welcome and thank you for participating in Reliastar Life Insurance Company (RLIC) product training! This training is designed to provide you with an overview of the RLIC Fixed and Variable 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 Voya 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! 4

5 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 5

6 QuintaFlex II Flexible premium deferred annuity 1 st Year interest rate bonus on every deposit (not contractually guaranteed) 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 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.) 6

7 Key withdrawal features 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 7

8 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! 8

9 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 9

10 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. Voya Premier 3 example: Contractual minimum = 1.00% 2015 declared minimum = 1.00% current rate = 1.00% 10

11 Premier 3 Annuity WHY the 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 for contracts or certificates issued on January 27, 2015 or later): Over $50k 2.0%, $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.) 11

12 Disclosure 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. 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. 12

13 Voya Company Suitability and Business Guidelines 13

14 Voya 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 Voya 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 Voya Business Guidelines located at the Voya for Professionals website. 14

15 Fixed annuity suitability Voya 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. Voya 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 15

16 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) 16

17 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 Voya 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 Voya Titles and designations Please review Voya s Business Guidelines for approved titles and designations. 17

18 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 Voya 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 18

19 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! 19

20 Important disclosures Annuities are issued by ReliaStar Life Insurance Company (Minneapolis, MN). Variable annuities are distributed by Voya Financial Partners, LLC. (member SIPC). Both are members of the Voya TM family of companies. Variable annuities are offered by prospectus only. To solicit variable annuities you must maintain a variable insurance license, be appointed with the issuing company and be a registered representative of a brokerdealer that has a current selling agreement with the issuing company. Variable insurance products are subject to investment risk, are not guaranteed and will fluctuate in value. In addition, there is no guarantee that any variable investment option will meet its stated objective. 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. 20

21 Voya Advantage Century Variable Annuity Flexible Premium of $50 per payment for IRA/NQ/457 (Each lump sum payment/transfer must be at least $5,000) 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 21

22 Benefit sensitive feature Voya 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! 22

23 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: Voya Advantage Century Annuity! Your Retirement Consolidator 23

24 Voya education sales desk Option 5 8:30am -5:00pm EST TEMSales@voya.com 24

25 One more step You re almost finished IMPORTANT! To complete the final step of this training, please close the content course window and click on the NEXT button at the bottom of the page to complete the course attestation. 25

26 Attestation and Certification (R-001 ReliaStar Fixed & Variable Training) In order to complete this training module, please check the boxes below to provide Training Attestation and Business Guideline Certification. (Please note that you must check all of the boxes in order to complete this training module). Training Attestation and Business Guideline Certification a. I hereby attest that I have reviewed and understand the training material presented in this training module. b. I acknowledge receipt of the Voya Business Guidelines, which are deemed incorporated into this training module and have been provided to me and are posted on the Voya For Professionals website ( c. I hereby certify that I will conduct my business in conformance with all applicable laws, rules and regulations and with the Voya Business Guidelines, and any updates or amendments that are communicated to me in the future. (Producer Signature) (Date) 26

27 Producer information Please provide the following required information and return to Voya along with the completed Attestation and Certification page for this module. First Name Last Name Address City State ZIP Social Security Number Please return to: Voya Financial B3S-092 One Orange Way Windsor, CT