This presentation is based on research from our quarterly Annuity and Life Insurance Product Update series on the Corporate Insight Blog. The blog articles review 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
second quarter of 2013.
Annuity and Life Insurance Product Update - Q2 2013
1. COPYRIGHT 2013 CORPORATE INSIGHT, INC.
ANNUITY AND LIFE INSURANCE PRODUCT UPDATE
SECOND QUARTER 2013
AUTHOR: ANDREW WAY
PUBLISHED: AUGUST 2013
2. TABLE OF CONTENTS
2
Introduction
Annuity
o Lincoln Financial: Eleven New Funds
o MetLife: Shield Level Selector
o Nationwide: Destination Architect 2.0
o Pacific Life: Pacific Choice
o Prudential: Six New Allocation Portfolios
Life Insurance
o AXA Equitable: Athena SUL IV
o Genworth Financial: Asset Builder IUL
o MetLife: Convertible and Renewable Options Rider
o MetLife: Promise Whole Life Select
o Pacific Life: PremierCare Advantage UL
Corporate Insight Thought Leadership
About Corporate Insight
About the Author
4. 4
INTRODUCTION BACKGROUND
This presentation is based on
research from our quarterly
Annuity and Life Insurance
Product Update series on the
Corporate Insight Blog. The blog
articles review 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
second quarter of 2013.
5. FIRMS COVEREDINTRODUCTION
Below is a list of the firms we track on a daily basis for our Annuity Monitor and Life
Insurance Monitor research services:
5
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 Prudential
o TIAA-CREF
o Transamerica
o VALIC
o Vanguard
o AXA Equitable
o Genworth
Financial
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
7. LINCOLN FINANCIAL: ELEVEN NEW INVESTMENT FUNDS
7
ANNUITIES
Seven new Lincoln ChoicePlus Assurance
fund options and four new American
Legacy fund options were introduced in
late May.
The new investment options seek to
reduce exposure to market risks and
enable clients to create a more diversified
portfolio.
The eleven new options are made up of
asset allocation options, as well as
individual asset class options, and are
managed by several well-known asset
managers, including BlackRock,
Dimensional, Fidelity and MFS.
8. METLIFE: SHIELD LEVEL SELECTOR
8
ANNUITIES
Highly customizable annuity allows clients to allocate the purchase
payment to a number of Shield Options.
Each Shield Option is a combination of a level of protection (Shield
Rate), index option, term length and either a Maximum Growth
Opportunity or Step Rate option.
o Shield Rate is the amount of protection realized if index performance is
negative at the end of a selected term.
o Maximum Growth Opportunity is the max percentage clients can earn for
the term. Step Rate enables clients to lock in a pre-determined growth %.
MetLife Advisor Website Promotional Image
9. NATIONWIDE: DESTINATION ARCHITECT 2.0 VARIABLE
ANNUITY AND LIFETIME INCOME TRACK BENEFIT RIDER
9
ANNUITIES
Both products released in mid-May of 2013.
Destination Architect 2.0 annuity key features:
o One-year enhanced death benefit rider
o Spousal Protection Feature (SPF)
o No surrender charges.
The Lifetime Income Track rider features
guaranteed lifetime income without annuitization.
o Annual step-up feature on the income benefit base
o A joint option that allows income payments to
continue for the contract owner’s spouse
o Lifetime withdrawal percentages based on the
owner’s age and rider duration
o Underlying investment options with a maximum
equity exposure of 70% and a minimum equity
exposure of 40%
10. PACIFIC LIFE: PACIFIC CHOICE VARIABLE ANNUITY
New variable product introduced at the beginning of the second
quarter of 2013.
Key features of the new annuity include:
o Three withdrawal charge options
o Optional stepped-up death benefit
o Guaranteed lifetime income choices.
Withdrawal charge options include terms of 0, 3 or 5 years.
10
ANNUITIES
Pacific Life Advisor Homepage Image
11. PRUDENTIAL: NEW ASSET ALLOCATION PORTFOLIOS
Prudential introduced six new asset allocation portfolios to its line of
variable annuity investment choices in late May.
The new asset allocation portfolios include
o BlackRock iShares ETF Portfolio
o Defensive Asset Allocation Portfolio
o Franklin Templeton Founding Funds Plus Portfolio
o Goldman Sachs Multi-Asset Portfolio
o Prudential Growth Allocation Portfolio
o RCM World Trends Portfolio.
11
ANNUITIES
Prudential Advisor Homepage Image
13. AXA EQUITABLE: ATHENA SUL IV
13
LIFEINSURANCE
Replaces Athena SUL III in approved jurisdictions after a 30-day
transition period.
Offers all same features as Athena SUL III plus a new optional
Extended No Lapse Guarantee rider for an additional monthly cost
and a five-year No Lapse Guarantee rider for no additional cost.
Includes new underwriting classes, guaranteed minimum interest rate
of 1.5%, surrender charge period of 15 years and is available with a
Return of Premium Death Benefit Rider and Cash Value Plus Rider.
AXA Equitable Advisor Homepage Image
14. GENWORTH FINANCIAL: ASSET BUILDER IUL
14
LIFEINSURANCE
First indexed universal life insurance product offered by the firm.
Combines a death benefit with tax-deferred cash accumulation and an
optional Accelerated Benefit Rider for long-term care.
Additional features include:
o Five crediting strategies linked to the % change of the S&P 500
o Fixed account guaranteed to never be credited with less than 2%,
protection from market downside with a minimum crediting rate of 0%
and a 15-year no-lapse guarantee.
The firm also unveiled a new index product-focused sales support
microsite, The Index Institute, in accordance with product release.
New Genworth Financial Advisor Homepage Image
15. METLIFE: CONVERTIBLE & RENEWABLE OPTIONS RIDER
15
LIFEINSURANCE
Introduced on April 27, 2013.
Available for sale with the MetLife One
Year Term policy.
Extends coverage to five years and includes
a conversion privilege that can be
exercised in years two through five.
Includes the MetLife Income Guard that is
designed to meet the financial needs of
executives and medical professionals.
o Offers competitive coverage limits,
optional riders and definitions of disability
that can be attractive to this audience.
16. METLIFE: PROMISE WHOLE LIFE SELECT
16
LIFEINSURANCE
Provides policy owners the option of three product types where they
can elect to pay premiums for 10 years, 20 years or until age 65.
Offers multiple benefit riders including the acceleration of death
benefit rider, the disability waiver of premium rider and The Enricher.
o The Enricher is an optional paid-up additions insurance rider that allows
the policyholder to pay additional premiums, including premium payment
duration to age 100 and a premium load of 5%.
MetLife Advisor Homepage Image
17. PACIFIC LIFE: PREMIERCARE ADVANTAGE UL
Key product features include:
o Improved funds available for long-term care expenses
o Money back option (return of premium benefit)
o Tax-free death proceeds to beneficiaries.
For those in need of long-term care, the policy reimburses customers
monthly for the cost of care received and offers a choice of benefit
periods (2-8 years) and choice inflation benefit options.
o Inflation benefit options enable customers to compound monthly
benefits annually by 5% compound, 5% simple or 3% simple interest.
17
LIFEINSURANCE
Pacific Life Advisor Homepage Image
18. CORPORATE INSIGHT THOUGHT LEADERSHIP
18
Optimizing the Online & Mobile Experience for Retirement Plan Participants
This slide deck features industry best practices and includes five recommendations
for DC plan providers looking to improve their Web and mobile offerings.
2013 Mobile Finance Trends and Innovations
This study includes commentary on mobile developments, key takeaways for
financial services firms and thoughts on what’s next for mobile finance.
Asset Management and Social Media: A Guide to Social Marketing
This guide looks at how asset management firms use popular social media platforms
such as LinkedIn, Twitter, Facebook, YouTube and Google+ to connect directly with
investors and financial advisors. Also available as a slide deck.
The Millennial Opportunity Whitepaper
Examines the marketing tactics, strategies and online resources leading financial
institutions are using to connect with Millennials. Also available as a slide deck.
Apple iOS 7 Ideas for Financial Services Firms
Apple iOS 7: Ideas for Financial Services Firms explains how firms can leverage the
new features in iOS 7 to make their mobile apps more user-friendly.
19. 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 corporateinsight@intermarket.com.
Media Inquiries
19
ANDREW WAY
Senior Research Associate
Annuity Monitor & Life Insurance
212-832-2002 x-136
away@corporateinsight.com
BEN POUSTY
Marketing Manager
212-832-2002 x-134
bpousty@corporateinsight.com
20. ABOUT THE AUTHORABOUTTHEAUTHOR
ANDREW WAY
SENIOR RESEARCH ASSOCIATE
ANNUITY MONITOR AND LIFE INSURANCE MONITOR
Andrew Way is a Senior 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 leading annuity and life
insurance providers offer prospective investors, clients and
financial professionals.
CONTACT ANDREW WAY:
T: 212-832-2002 x-136
E: away@corporateinsight.com
Annuity Monitor, Life Insurance Monitor and P&C Monitor are service marks of Corporate Insight, Inc.; all rights reserved. 20
Andrew graduated from Binghamton University in 2010 and has been a member of the
Corporate Insight team since January of 2011.