ING Annuity Product Training ING USA Annuity and Life Insurance Company ( ING USA ) For questions contact the ING Annuity and Asset Sales Desk at 800-369-5301 ING Secure Index Opportunities Plus Annuity ING Secure Index Outlook Annuity Single Premium Deferred Annuities
ING Annuity Product Training Welcome and thank you for participating in ING USA s product training! This training is designed to provide you with an overview of the ING Secure Index Opportunities Plus and Outlook 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 USA receives this notification, you will be able to solicit the ING Secure Index Opportunities Plus and Outlook annuities. ING USA will NOT be able to process and issue business until we receive this notification of training completion. Thank you for choosing ING USA! 2
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. 3
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 1 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 Proceeds) Available after 1 st year 45 days confinement during any 60-day period Terminal illness (<12 months life expectancy) 4
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 four strategies* Point-to-Point Cap Index Strategy Monthly Cap Index Strategy Monthly Average Index Strategy Point-to-Point Participation Index Strategy Related to increase, if any, of the S&P 500 Index S&P 500 Index is widely regarded as the premier benchmark for U.S. stock market performance * 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. Standard & Poor s, S&P, S&P 500, Standard & Poor s 500, and 500 are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by ING USA Annuity and Life Insurance Company. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor s and Standard & Poor s makes no representation regarding the advisability of investing in the Product. The S&P 500 Index does not reflect dividends paid on the underlying stock. 5
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 800-369-5301 For agent use only. Not for public distribution.
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.
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.
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 800-369-5301 9
Opportunistic Strategy Interest Rate Benchmark is an opportunistic strategy Performs better when 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 strategy five different strategies available on the Secure Index products For agent use only. Not for public distribution.
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 800-369-5301 **The ING SmartLegacy Rollup rate is subject to change for new contracts 67655099999 For agent use only. Not for public distribution.
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 67655099999 For agent use only. Not for public distribution.
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.
How the ING SmartLegacy Death Benefit Works For agent use only. Not for public distribution. Retirement - Insurance - Investments 67665072013
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 15
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 50-80 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. 16
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 1 2 3 4 5 6 7 8 9 10 11+ 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 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%. 17
ING Secure Index Opportunities Plus Annuity Surrender Charges: Contract Year 1 2 3 4 5 6 7 8 9 10 11+ Percentage 10 10 10 10 9 8 7 6 5 4 0 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 800-369-5301 18
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: Approved only in AK, CT, DE, MN, NJ, and WA Premium Bonus: 3% of the single premium paid Minimum Guaranteed Contract Value: Not less than 87.5% (90% in NJ) of the single premium paid less withdrawals accumulated at the minimum guaranteed strategy value rate of 2.00%. Surrender Charges: Contract Year 1 2 3 4 5 6 7 8 9 10 11+ Percentage 10 9 8 7 6 5 4 3 2 1 0 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. 19
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. 20
ING Company Suitability and Business Guidelines
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
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
Advertising Defined Advertising includes: Printed & audiovisual material Websites & emails 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)
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.
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
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 67655099999 27