Annuity and Life Insurance Product Update - Q4 2013
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COPYRIGHT 2014 CORPORATE INSIGHT, INC. ANNUITY AND LIFE INSURANCE PRODUCT UPDATE FOURTH QUARTER 2013 AUTHOR: JOSE MIGUEL SANTANA PUBLISHED: JANUARY 2014
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Transcript of Annuity and Life Insurance Product Update - Q4 2013
COPYRIGHT 2014 CORPORATE INSIGHT, INC.
ANNUITY AND LIFE INSURANCE PRODUCT UPDATE
FOURTH QUARTER 2013AUTHOR: JOSE MIGUEL SANTANA
PUBLISHED: JANUARY 2014
TABLE OF CONTENTS
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Introduction
Annuityo Allianz Life: Index Advantage
o Allianz Life: Core Income 7
o Allianz Life: Signature 7
o AXA Equitable: Investment Edge
o Pacific Life: Income Advantage
o Transamerica: O-Share
Life Insurance o Nationwide: YourLife Guaranteed Level Term
o Nationwide: YourLife CareMatters
o The Principal: Indexed Universal Life Flex
Corporate Insight Thought Leadership
About Corporate Insight
About the Author
INTRODUCTION
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BACKGROUND
This presentation reviews the new product releases from the annuity carriers and life insurers we cover in our Annuity Monitor and Life Insurance Monitor research services.
Inside, we review the new products introduced in the fourth quarter of 2013.
FIRMS COVEREDIN
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Below is a list of the firms we track on a daily basis for our Annuity Monitor and Life Insurance Monitor research services:
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Annuity Monitor Life Insurance Monitor
o Allianz Life
o Aviva
o AXA Equitable
o Fidelity
o ING
o Jackson National
o John Hancock
o Lincoln Financial
o MassMutual
o MetLife
o Nationwide
o New York Life
o Pacific Life
o The Principal
o Prudential
o TIAA-CREF
o Transamerica
o VALIC
o Vanguard
o AXA Equitable
o GenworthFinancial
o John Hancock
o Liberty Mutual
o Lincoln Financial
o MassMutual
o MetLife
o Nationwide
o New York Life
o Northwestern Mutual
o Pacific Life
o Principal Financial
o Prudential
o USAA
ANNUITY PRODUCT UPDATE
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ALLIANZ LIFE: ALLIANZ INDEX ADVANTAGE
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Rolled out in late September, the new variable annuity offers clients the opportunity to capture growth based on the performance of the S&P 500, the Russell 2000 or the Nasdaq 100.
Includes a death benefit, three variable options and two innovative index strategies, both of which protect against negative index performance and limit how much investors can receive based on index performance.
Allianz Life Public Website Promotional Image
ALLIANZ LIFE: CORE INCOME 7
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The firm’s first fixed indexed annuity produced to appeal to the broker/dealer channel.
Guarantees principal and credited interest against loss due to market downturns.
The lifetime withdrawal percentage automatically increases as early as age 45 and continues each year the client waits to begin lifetime withdrawals. Additionally, contract owners can choose between one or more interest crediting allocations, which can be changed annually.
Clients can earn fixed interest or choose to base potential indexed interest on changes in several market indices, including the new Barclays US Dynamic Balance Index.
ALLIANZ LIFE: SIGNATURE 7
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This new fixed indexed annuity focuses on safe accumulation and is the second broker/dealer produced annuity introduced by Alliaz this quarter.
Designed to complement Allianz’s Core Income 7 fixed indexed annuity, whichfocuses more on generating income than accumulation.
Has a seven-year decreasing surrender charge period.
Geared at clients nearing retirement, the product provides upside potential by including a monthly sum crediting strategy and a spread of 1.7% on the Barclays index.
Contract owners can allocate their indexed interest credit to three market indexes: S&P 500 Index, Russell 2000 Index and Barclays U.S. Dynamic Balance Index.
Allianz Life Public Homepage Image
AXA EQUITABLE: INVESTMENT EDGE
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Unveiled in late November, the new variable
annuity focuses on long-term investing,
diversification, deferral and distribution.
Key investing features include over 120 options,
such as alternative investments, sector funds and
ETFs, as well as 38 pre-packaged portfolios that
target specific asset classes.
Provides distribution of withdrawals based on a
variety of customizable, tax-efficient options where
contract owners access distributions in multiple
ways, including the ability to make payments that
are only partially taxed.
Released along with dedicated individual investor
and advisor-focused microsites.
PACIFIC LIFE: INCOME ADVANTAGE
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New deferred fixed annuity that includes a built-in guaranteed
withdrawal benefit with a 6% annual credit for deferring income,
and the choice of several guaranteed interest-rate terms.
Contract owners can include a Guaranteed Withdrawal Benefit for
an additional cost, which allows clients to begin taking lifetime
withdrawals for retirement while the contract continues to earn
interest.
Pacific Life Advisor Homepage Image
TRANSAMERICA: VARIABLE ANNUITY O-SHARE
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This new product offers a premium-based pricing structure and living and death benefit options.
Allows clients to transfer assets to family members.
Optional benefit riders include Transamerica's Retirement Income Choice 1.6, Retirement Income Max and Additional Death Distribution (ADD).
$10,000 minimum initial premium, with an annual fee of $50.
Allows for Dollar Cost Averaging which enables gradual investment over time by systematically buying more units when prices are low and fewer units when prices are high.
LIFE INSURANCE PRODUCT UPDATE
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NATIONWIDE: YOURLIFE GUARANTEED LEVEL TERM
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Targets clients ages 35 to 50 who want an easier, affordable and faster way to protect their families and businesses.
10-, 15-, 20- or 30-year guaranteed level term periods with enhanced conversion periods to match the 10-, 15- and 20-year guaranteed level periods and a 20-year conversion period on the 30-year product.
Offers an Accelerated Death Benefit.
Unique customer benefits such as late premium payment alerts,express claims process and Electronic Funds Transfers (EFT) for all payment modes.
NATIONWIDE: YOURLIFE CAREMATTERS
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New long-term care coverage plan that is linked to a fixed-premium universal life insurance policy.
Geared towards individuals who seek long-term care benefits with greater choice, flexibility and control.
Includes a death benefit option and targets individuals between ages 40-70.
Key features include benefits that are paid out indemnity style (the monthly benefit is paid to the policy owner regardless of monthly expenses) with the option to pay a qualified family member for care rather than a professional.
CareMatters guarantees that the cash value of the policy will never be less than the premiums paid.
YourLife CareMatters Information Video
THE PRINCIPAL: INDEXED UNIVERSAL LIFE FLEX
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Offers clients greater cash accumulation potential with less risk through long-term death benefit guarantees and strong cash value accumulation potential.
Policyowners can choose from three index-linked accounts, including two featuring the S&P 500 Total Return Index.
Choice between a 10-year no-lapse guarantee provision or an optional extended no-lapse guarantee rider with guaranteed protection to the lesser of 25 years or age 90.
The policy includes an automatic trigger of over-loan protection and provides living benefits through accelerated benefit riders for chronic and terminal illness.
The Principal Advisor Site Image
CORPORATE INSIGHT THOUGHT LEADERSHIP
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Electronic Delivery: Key Trends Across the Insurance IndustryThis slide deck highlight some key findings and trends from the Annuity Monitor, Life Insurance
Monitor and P&C Insurance Monitor reports that focused on electronic delivery and offers a few
tips for insurers looking to improve their electronic delivery services.
2013 Mobile Finance Trends and InnovationsThis study includes commentary on mobile developments, key takeaways for financial services
firms and thoughts on what’s next for mobile finance.
Facebook Marketing Campaigns - Social Media Initiatives in the Insurance IndustryThis slide deck highlights some of the engaging Facebook marketing campaigns initiated by P&C
Insurance Monitor firms this year and offers a few Facebook marketing tips for insurers.
Social Media Trends: Annuity and Life InsuranceThis presentation analyzes the current social media initiatives and promotions undertaken by
leading insurers, highlights key social media findings and trends across the insurance industry, and
offer tips for insurers looking to bolster their social presence.
Tablet-Friendly Web Design: Best Practices for Financial ServicesThe study examines the tablet-friendly website features provided by four leading firms across
financial services and provides recommendations for financial services firms building tablet-
optimized websites.
http://www.corporateinsight.com/blog/2844-2013-mobile-finance-trends-and-innovations-slide-deck.html
http://www.corporateinsight.com/blog/2844-2013-mobile-finance-trends-and-innovations-slide-deck.html
ABOUT CORPORATE INSIGHT
Connect With Us
Corporate Insight provides competitive intelligence and user experience research to the nation’s leading
financial institutions. For over 20 years, the firm has tracked technological developments in the financial
services industry, identifying best practices in online banking and investing, online insurance, mobile
finance, active trading platforms, social media and other emerging areas. There are no assumptions in
Corporate Insight’s work – we use live accounts at all of the firms we research, providing our clients with
unparalleled, unbiased intelligence on the competition.
Corporate Insight welcomes the opportunity to speak with the media. If you are interested in citing our
research or would like to schedule an interview with one of our analysts, please contact Intermarket
Communications at 212-888-6115 or [email protected].
Media Inquiries
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JOSE MIGUEL SANTANA
Research Associate Annuity Monitor & Life Insurance Monitor
(646) 751-6971
BEN POUSTY
Marketing Manager
(646) 454-2662
ABOUT THE AUTHORA
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Jose Miguel Santana
Research AssociateAnnuity Monitor and Life Insurance Monitor
Jose Miguel Santana is a Research Associate for Corporate Insight’s Annuity Monitor and Life Insurance Monitor research services. He has conducted extensive research on the annuities and life insurance industries, examining the online platforms, customer service capabilities and technological innovations offered to prospective investors, clients and financial professionals. This report is the result of Jose Miguel’s ongoing research into the online platforms of the leading annuity and life insurance providers throughout Q4.
Jose Miguel graduated from James Madison University in 2010.
Contact Jose:
T: (646) 751-6971
Annuity Monitor, Life Insurance Monitor and P&C Monitor are service marks of Corporate Insight, Inc.; all rights reserved. 19
