Guaranteed solutions. Life and disability income insurance offering security, stability and flexibility.

Transcription

1 Guaranteed solutions Life and disability income insurance offering security, stability and flexibility D C (12/10) (9/12)

2 Clients financial priorities change at every life stage. What meets their needs at age 25 is likely different when they reach 55 just as an oak has different needs as it grows from an acorn to a sapling to a tree. Clients need protection solutions that fit their evolving needs, including ensuring a confident retirement. Through life and disability income insurance, clients have a lifetime of solutions to help them protect income, grow assets, and give to loved ones or charity. Whatever life stage you are in, RiverSource life and disability income insurance products may provide appropriate solutions to help you protect your dreams, meet your retirement income needs and achieve your legacy goals. 2

3 Guaranteed solutions Life and disability income insurance can help protect your dreams for yourself and your loved ones. Life insurance provides essential financial security for your family or business for when you re no longer here, and disability income insurance provides continued income should you be unable to work due to injury or illness. At RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York (RiverSource Life), we create innovative life and disability income insurance solutions with guarantees to help you feel confident that what matters most is cared for. Security and stability to weather life s ups and downs. All of the guarantees are based on the continued claimspaying ability of RiverSource Life. With these guaranteed life and disability income insurance solutions from RiverSource Life, you can: Feel secure knowing you or your family will have the income you need in case of death or disability. Be confident your protection is stable and backed by a strong and sound company. Flexibility to adapt to changing needs. In addition to guarantees, RiverSource life insurance solutions offer flexible features, including: Customizable coverage. Optional riders are available depending upon policy type, including waiver of the premium due to disability; acceleration of the death benefit due to terminal illness or to help pay for chronic care expenses; the ability to leave a charitable donation; and more. 1 Control over key decisions. You can change insurance amounts and premiums, as well as beneficiaries and owner designations, as your needs change. Tax-free access to cash values. When permanent life insurance is properly structured, you can take income-tax-free loans and withdrawals for supplemental retirement income, college education funding, emergencies and other needs. Keep in mind that loans and withdrawals reduce the death benefit and can cause the policy to lapse. 2 1 Rider availability is determined by the policy type. Riders also have additional cost and are not available in all states, including New York. 2 Accessing policy cash value through loans and surrenders may cause a permanent reduction of policy cash values and death benefit and negate any guarantees against lapse. The amount that can be borrowed or surrendered will be affected by the surrender charges applicable to the policy. Loans may be subject to interest charges. Although loans are generally not taxable, there may be tax consequences if the policy lapses or is surrendered with a loan (even as part of a 1035 exchange). It is possible that the amount of taxable income generated at the lapse or surrender of a policy with a loan may exceed the actual amount of cash received. Surrenders are generally taxable to the extent they exceed basis in the policy. If the policy is a modified endowment contract (MEC), pre-death distributions, including loans, from the policy are taxed on an income-first basis, and there may also be a 10% federal income tax penalty for distributions prior to age 59½. 3

4 Backed by Strength and Soundness When you purchase life or disability income insurance, you want to be sure your money will be wisely managed for you today. You also want to know that the benefits you re promised are guaranteed to be there for you or your loved ones tomorrow. RiverSource Life has a proven record of fulfilling our obligations to clients. 4

5 We stand by our guarantees Honoring our commitments for over 115 years. RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York are the primary insurance subsidiaries of Ameriprise Financial, Inc. For over 115 years, the Ameriprise Financial family of companies has helped investors achieve their financial objectives prudently and thoughtfully. Since our beginning, RiverSource Life has continued to maintain a solid capital position, appropriate levels of liquidity, a well-positioned investment portfolio and effective risk management. We have an impeccable record of honoring our obligations to clients and we are well-positioned to continue to meet those commitments. Today, RiverSource Life creates innovative products to help clients grow, protect and preserve their assets. Our ratings Our strength and soundness underscores our commitment to supporting the financial security of our clients. The strength and soundness of RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York is reflected in the high ratings we receive from independent rating organizations. As of July 31, 2012, our financial strength ratings were: Rating Agency A.M. Best Fitch Moody s Standard & Poor s Rating A+ Superior (Second highest of 15 ratings) AA- Very Strong (Fourth highest of 24 ratings) Aa3 Excellent (Fourth highest of 21 ratings) AA- Very Strong (Fourth highest of 21 ratings) 5

6 Universal life insurance guarantees Protect those who matter most. RiverSource universal life insurance can be the right solution if your primary financial goal is to secure the financial future of a family or business. Guarantees help ensure the coverage you choose will always be available for the period and level you designate. And, depending on the product you choose, it can also stay at the price you select. Guaranteed death benefit. As long as you pay the necessary premiums, we guarantee the specified death benefit will be paid to your heirs such as family, business or charity. RiverSource Foundations Protector universal life insurance (Foundations Protector) and RiverSource Succession Protector universal life insurance (Succession Protector) offer an affordable guaranteed death benefit for life while RiverSource Foundations universal life and RiverSource indexed universal life insurance offers an optional guarantee for 15 years. Guaranteed interest rate. Protect yourself and beneficiaries from market volatility and feel more secure with a minimum guaranteed fixed rate of return that can create more consistent cash value growth over time. RiverSource Foundations universal life has a 2.5% minimum guaranteed fixed rate and RiverSource indexed universal life has a 2% minimum guaranteed rate in the fixed account. The indexed account option, which is based on indexed linked performance, guarantees a minimum rate of 0%. Guaranteed level premiums. With Foundations Protector and Succession Protector, as long as you pay in full and on time, premiums to guarantee coverage never change and you can feel certain about future premium requirements. 6

7 Variable universal life insurance guarantees Protect your dreams and pursue potential growth. RiverSource variable universal life insurance provides protection for a family or business and an opportunity to take advantage of the upside potential of the market. Guarantees help ensure the coverage will always be available at the level you select, while other features help manage risk. Optional no-lapse guarantee. * Choose the no-lapse guarantee to age 75 or 10 years, whichever is later, to ensure you have the protection you need, regardless of market performance. Note the guarantees do not apply to the management or performance of the subaccounts, which will fluctuate with market conditions. Guaranteed fixed account option. Choose from a multitude of investment options, including a fixed account option with a guaranteed 2% minimum rate of return. RiverSource variable universal life insurance also offers features to help provide security and stability during market volatility, including: Professional investment management. With your variable universal life investment portfolio, you have access to an advice-embedded option which was developed by investment professionals to help you better manage your cash value, and provide potential for better returns over time. Smart investment strategies. An effective way to invest over time is dollar-cost averaging, which means investing a fixed amount of money on a regular basis. If you pay premiums at regular intervals, you automatically use this strategy. It takes advantage of market volatility by buying more units when prices are low and fewer units when prices go up. Dollar-cost averaging does not guarantee a profit or protect against losses in a declining market. Before you purchase, be sure to ask your financial advisor about the life insurance policy s features, benefits, risks and fees, and whether the life insurance is appropriate for you, based upon your financial situation and objectives. Variable life insurance is a complex investment vehicle that is subject to market risk, including the potential loss of principal invested. *Death Benefit Guarantee in Illinois. 7

8 Term life insurance guarantees Protect your loved ones with a simple solution. RiverSource term life insurance provides basic life insurance coverage to meet short-term protection goals and generally lets you pay lower premiums than traditional policies. In addition to an income-tax-free death benefit, guarantees include level premiums for the term you choose as well as the ability to convert to permanent protection without underwriting and to renew your coverage until age 95. Guaranteed premiums. With term life insurance, you ll know in advance what your premiums will be your initial annual premium is guaranteed not to increase during the period you choose (10, 15 or 20 years). Guaranteed convertible. Term life insurance allows you to convert to a permanent cash value policy (universal or variable universal life insurance) without evidence of insurability, as long as you are in the level premium period and age 65 or younger. Guaranteed renewable. You can renew your term life insurance coverage at the end of the specified term until age 95 subject to new underwriting. If health issues arise, you can still continue your coverage at increasing annual rates. 8

9 Disability income insurance guarantees Protect your most important asset your income. RiverSource disability income insurance can help provide the income you need if you become unable to work due to injury or illness. The policies are guaranteed renewable and non-cancelable, which means the coverage you choose will be there when you need it at the price you expect. Guaranteed coverage. As long as you pay your premiums on time, your RiverSource disability income insurance policy will remain active and the policy provisions will stay the same. You don t need to worry about health issues developing which could prevent you from being underwritten for coverage in the future. Guaranteed premiums. With disability income insurance, premiums are guaranteed not to change so there are no surprise increases. In addition to guarantees, there is built-in flexibility to accommodate potential changes in your circumstances. Portability. Even if you change employers or occupations, a RiverSource individual disability income insurance policy will stay with you and remain inforce, as long as you continue to pay premiums. Waiver of premium due to disability. If you become disabled for 90 days or more, all premiums are waived. Plus, the premiums that were paid during those 90 days will be refunded. Waiver of premium for involuntary unemployment. * If you become involuntarily unemployed and collect unemployment benefits, we will waive the premiums and keep the policy in-force for one year as a one-time option during the life of the policy. Customizable coverage. You can select your benefit amount, benefit period and waiting period, and request to change selections as your needs change. You also can choose optional riders ** to meet various needs, including a future purchase option to cover future income increases or a cost-of-living adjustment. * Not available with all policies in all states, including New York. ** Optional riders are not available in all states, including New York, and may require additional cost. 9

10 Protect your dreams with guaranteed solutions Guarantees and other features you can count on The following chart is a sampling of the benefits our universal life, variable universal life, term and disability income insurance provide through guarantees and other unique features: Universal life insurance Indexed universal life Variable universal life insurance Term insurance Disability income insurance Coverage will always be there for you and your family or business. (To age 65 or 67) Your premiums will remain the same. 1 (Initial) If you become disabled, your premiums may be waived but you can keep your coverage. 2 If you become involuntarily unemployed, your premiums may be waived but you can keep your coverage. 2 Coverage stays with you if you change or lose your job. You can choose how much coverage you want and which riders to add. Your cash value grows at a current rate of interest and has a guaranteed minimum interest rate (fixed account for VUL and IUL ). You can take advantage of professionally developed investment portfolios and strategies. You can have indexed-based interest crediting with downside market protection. The death or disability benefits are income-tax free when properly structured. Assumption: All premiums are paid in full and on time. 1 For life insurance, only applies to Foundations Protector universal life insurance and Succession Protector universal life insurance. 2 For disability income insurance, this is automatic. For life insurance, this is a feature of an optional rider. Not available in all states, including New York. 10

11 Security. Meet your financial goals Stability. Weather life s ups and downs Learn more Contact your financial advisor today to discuss guaranteed life and disability income insurance solutions that can help you protect your dreams. Flexibility. Adapt to your changing needs 11

12 The RiverSource Story Life has many twists and turns and we understand the importance of balancing the need to protect what is important to you while you invest toward your financial goals. RiverSource creates innovative products designed with you and your life in mind. Through a balance of asset and risk management and built on a heritage of over 115 years, we work with you and your financial professional to help grow your assets, manage your income and protect what matters most today and tomorrow. RiverSource indexed universal life A policy is made up of a series of segments. RiverSource Insurance credits interest to your indexed account at the end of each segment term (currently 12 months) based on the performance of the S&P 500 index during that segment term subject to a growth cap and a guaranteed floor. The growth cap, subject to change and set at the beginning of each segment, sets an upper limit to the interest credited over the segment term. In exchange for a cap on your growth potential, indexed universal life provides a guaranteed floor of 0% and is guaranteed to remain constant. RiverSource Indexed Universal Life is not a variable contract or investment contract. Although the policy will be affected by changes in the index, the policy does not invest directly in any stock or equity investments. If a policy is fully surrendered or the insured dies before the end of a segment, that segment does not receive any interest. Based on 100% participation in the index, RiverSource credits interest to an indexed account at the end of a segment (currently 12 months) based on the performance of an index during that segment, subject to a growth cap and a guaranteed floor. Ask your financial advisor for a life insurance illustration that provides additional information including expenses, interest rates, and charges. Neither RiverSource Life Insurance Company nor RiverSource Life Insurance Co. of New York can guarantee future financial results. You should consider the investment objectives, risks, charges and expenses of variable life insurance and its underlying investment options carefully before investing. For a free copy of the life insurance prospectus and underlying investment s prospectus, which contains this and other information about variable life insurance, call Read the prospectus carefully before you invest. RiverSource Life Insurance Company 968 Ameriprise Financial Center Minneapolis, MN RiverSource Life Insurance Co. of New York 20 Madison Ave. Extension P.O. Box 5144 Albany, NY riversource.com This brochure applies to the following policy numbers: Succession Protector universal life insurance, with endorsement ; Foundations Protector universal life insurance, with endorsement ; Foundations universal life insurance, ICC and ; Indexed universal life, ICC and ; and in New York: Succession Protector universal life insurance, with endorsement ; Foundations Protector universal life insurance, A with endorsement ; Foundations universal life insurance, , Indexed universal life, RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York, Albany, New York. These companies are affiliated with Ameriprise Financial Services, Inc. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York RiverSource Life Insurance Company. All rights reserved D (9/12)