Sentinel Security Life Insurance Company Product Specific Training

Transcription

1 Sentinel Security Life Insurance Company Product Specific Training 1. Review the attached slideshows. 2. Send an to and with your name, agent number, and the following statement: I have reviewed and understand the product material contained in the training and will comply with company policies and procedures along with regulatory requirements in recommending any product for sale Rawlings Insurance Services, Inc. All rights reserved. No portion of this page may be reprinted or otherwise duplicated without the express written permission of Rawlings Insurance Services, Inc.

2 INTRODUCING THE NEW Summit Bonus Index

3 Important Notice Some of the features and benefits of the Summit Bonus Index Annuity vary by state. Please check specific state materials for more details.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

21 Settlement Options The Vested Value can be used to purchase one of the following Settlement Options after the 5 th Policy Anniversary *. Life Income Only Life Income Period Certain Period Certain Only * Varies by state. Please see state specific materials.

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

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

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

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

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

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

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

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

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

31 SUMMIT BONUS INDEX For More Information

32 Personal Choice Annuity TM Single Premium Deferred Annuity Issue ages Available in either 5, 7, or 10 year periods Customizable with Optional Riders The selection of optional Riders will reduce the annual crediting rate

33 Personal Choice Annuity TM Surrender Charges Year 5 Year 7 Year 10 Year 1 8% 9% 9% 2 8% 8% 8% 3 7% 7% 7% 4 6% 6% 6% 5 5% 5% 5% 6 5% 5% 7 5% 5% 8 5% 9 5% 10 5%

34 Available Riders The Personal Choice Annuity TM was developed with optional riders in mind. That way the client only chooses the riders that best fit their needs without paying for riders that don t; allowing a contract that more closely fits their needs. Required Minimum Distribution Preferred 10% Free Withdrawal Terminal Illness/Nursing Home Care Feature 72(t) Free Withdrawal Death Benefit Feature Accumulated Interest Withdrawal

35 Required Minimum Distribution Rider This rider allows the withdrawal of a Required Minimum Distribution without Surrender Charge or Market Value Adjustment applied to the amount of the distribution. Rate Reduction if selected: 0.16% May be added at issue or the beginning of a guarantee period.

36 Preferred 10% Free Withdrawal This rider allows for the first withdrawal with a value of up to 10% of the contract value (on a non-cumulative basis) or the Required Minimum Distribution. This does not entitle a 10% free withdrawal on full surrenders. Rate Reduction: 0.08% May be selected only at time of issue.

37 Terminal Illness / Nursing Home Feature This rider allows access to some or all of the funds under certain conditions like the diagnosis of a terminal illness or confinement to a nursing home for more than 90 days. Rate Reduction: 0.15% May be added only at time of issue.

38 72(t) Free Withdrawal This rider is for contract owners younger than 59 ½ years old and allows for the withdrawal of Substantially Equal Periodic Payments under IRS Code 72(t) without surrender charge or Market Value Adjustment. Rate Reduction: 0.05% May be added only at time of issue.

39 Death Benefit Feature This rider ensures that upon the death of the annuitant the death benefit paid will equal the total contract value. Any Surrender Charges or Market Value Adjustment will be waived. This rider also allows certain payout options. Rate Reduction: 0.35% May be added only at time of issue. Required for annuitants with issue ages

40 Accumulated Interest Withdrawal This rider allows a withdrawal of accumulated interest without Surrender Charge or Market Value Adjustment during the Surrender Charge Period. Rate Reduction: 0.03% May be added only at time of issue.

41 Personal Choice Annuity TM Disclosures Products and available riders will vary by state Always refer to our Company s Field Guide for specific state variations. Any annuity with surrender charges may present liquidity concerns for the client. The Advisor should review other asset sources with the client and consider short-term income and access to liquid assets for both emergencies and cash needs prior to the expiry of the surrender charge period.

42 Personal Choice Annuity TM Disclosures Optional riders have a charge (in the form of a crediting rate reduction) and can be a valuable benefit for the client, but will affect the accumulation of the annuity. The advisor should discuss both the need for and expenses associated with each optional rider with the client. The advisor should always provide the client with the applicable buyer s guide or other disclosure documentation provided by our Company.