retirement solutions powered by ing fixed annuities for agent use only. contracts issued by usg...

Retirement solutions powered by ING Fixed AnnuitiesFor Agent Use Only.

Contracts issued by USG Annuity & Life Company®/Equitable Life Insurance Company of Iowa, 909 Locust Street, Des Moines, IA 50309. Neither the company nor its agents can provide tax or legal advice. Clients should consult their tax advisor or attorney. The parent company, ING Group, is not responsible for the contractual obligations of its member insurance companies.

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The Power of ING Fixed Annuities

Presented by: Title


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S A Brief History of ING

As published in the 2002 ING Group Annual Report.

ING Groep, N.V., the parent company of ING, is a multi-national financial services powerhouse with Dutch roots

Active in the fields of banking, insurance, and asset management in 65 countries with over 110,000 employees

ING Group formed in 1990 and in it’s first decade has achieved a 16 fold increase in market capitalization


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Financial results reported for 2001. *Fortune.com July 22, 2002.

Key Facts

Total assets are 624.2 billion (U.S.) with assets under management over 454 billion* (U.S.)

ING currently has over 50 million customers ING is ranked as one of the top financial organizations in

the world:

Top 50 organizations in the world based on profits

10th among the top 20 global financial institutions by market capitalization

#1 publicly traded life and health insurer on the Global Fortune 500, based on revenue*


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*Formerly Duff & Phelps.

Rating Agency

A.M. Best

Fitch*

Standard & Poor’s

ING USG Annuity

A+ (Superior)

AA (Very Strong)

AA (Very Strong)

Ratings


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Why should you sell ING Fixed Annuities?

Good, clean consumer friendly products that sell

Fair compensation for the agents

Diverse and profitable products to sell and market

Consistently deliver excellent service

ING name recognition

Most important….we are looking to develop long term

relationships with our agents!


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S Top 10 Benefits of Fixed Annuities

(Sell Benefits NOT Features) Safety Safety Guaranteed Interest RateGuaranteed Interest Rate Tax deferralTax deferral Lifetime income Lifetime income FlexibilityFlexibility LiquidityLiquidity Death BenefitDeath Benefit May avoid probateMay avoid probate No Annual Fees No Annual Fees (most contracts)(most contracts) Nursing home waiver(not Nursing home waiver(not

available in MA or TX)available in MA or TX)There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified plan, since these are already afforded tax-deferred status. Guarantees are based qualified plan, since these are already afforded tax-deferred status. Guarantees are based

on the claims paying ability of the insureron the claims paying ability of the insurer


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Important Reasons for Buying Annuities According to Consumers

•Earnings would not be taxed until funds used 89%

•Was a safe purchase 88%

•Had a good rate of return 86%

•Wanted a long-term savings plan 79%

•Easy way to save 71%

Source: The Gallup Organization, 2001

Marketing Annuities


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S Marketing Annuities

Where does the money come from?

• Additional Earnings after IRA

• Savings Plans

• Death benefits from life insurance

• Rollovers from retirement savings plans



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Source: LIMRA International.

Guaranteed Income for Life

Very/extremely important to 48% Slightly more important to:

Lower household incomes Women Fixed Qualified (403(b), IRA)



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S The Power of Persuasion

A recent study showed that if you cue the consumer you can strongly influence the return expectations of consumers.

For instance, rather than talking about fixed annuity rates returning4% then showing your product at 4.15%, you should first talk about the fact that CD rates are around 2% then show the client your product that will return around 4.15%.

By cueing the consumer it puts them in a mindset to accept a 4.15% return because it is much greater than a 2% return. However when compared first to a competitors product at 4%, 4.15% doesn’t soundlike such a great deal.

Jack Marrion, The Index Compendium, October 2002Annuities are not FDIC insured.


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S The Power of Persuasion

This can also be done when talking EIA’s. Rather than explainingwhy participation rates are down, the higher volatility and lower interestrates, show comparison index participation rates of several products to establish a value reference, or show that you can still obtain competitive returns at the lower rate this will create a value perception.

CUE your clients and SELL VALUE!

Jack Marrion, The Index Compendium, October 2002Annuities are not FDIC insured.


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S ING Fixed Annuities EIA Selling Points

ING Secure Index Annuity Annual Reset Point To Point

Heritage Offers Strong Appeal on Point-to-Point

Advantage Index Monthly Averaged Annual Reset

Selectra Flexible Premium Multi-Strategy Annuity

Client-Friendly Products

SIMPLICITYFunded plans under ERISA cannot be used with these annuities. IRAs/qualified plans already receive tax-deferred treatment under the Internal Revenue Code. Your client should consider other annuity features. Heritage Index Annuity, Advantage Index Annuity, and Selectra Multi-Strategy Annuity contracts issued by USG Annuity & Life Company®/Equitable Life Insurance Company of Iowa, 909 Locust Street, Des Moines, IA 50309.


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S EIA Sales Tips

EIA’s are for people who are:

Part Bull

Part Bear

Part Chicken

Jack Marrion, The Index Compendium, October 2002



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S Confusing?????


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S Are EIA’s Worth The Trouble???

Yes, And Here Is Why >>>>>>>>>>


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S Equity Index Sales Are IN!(EIA Sales for 2001 and 2002)

2001 Sales were $6B Up 20% from 2000

3Q 2002 Sales Increased 21% from 2Q Up 109% from 3Q in 2001 Through September 2002…Sales over $8B 2002 Projected Sales Over $11B Most Sales are in Annual Reset Designs

92%

LIMRA and Advantage Group 3rd Quarter Results.


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S How Well Do EIAs Perform?

Out Performed the Average Bond Fund and CD by At Least 40%

Had Higher Returns than 61% of ALL Mutual Funds

Out Performed 99% of Bond Mutual Funds

For the five year period ending at the start of 2002. Advantage Group 3rd Quarter Results.


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This is a summary only. Read the contract for complete details. Products/features may not be available in all states. State premium taxes may reduce the final value of the annuity. Withdrawals before age 59 1/2 may be subject to a 10% Federal penalty tax. Funded ERISA plans may not purchase this annuity. IRAs/qualified plans already receive tax-deferred treatment under the Internal Revenue Code. Your client should consider other annuity features. Annuities are not FDIC insured. Neither the Company nor its agent can provide tax or legal advice. Have your client consult an independent tax advisor or attorney. Compensation reduced at older ages. All guarantees are based upon the claims-paying ability of the insurer. The index does not include dividends paid on the underlying stocks.

ING Secure Index Annuity

NEW


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S ONE MOVING PART!


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S ING SECURE INDEX ANNUITY

SIMPLE DESIGN!

SHORT TERM!

STRONG GUARANTEES!

New!!!

SIMPLE, STRAIGHT FORWARD &

EASY TO SELL!


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S Ask Me The Questions?

How do you calculate the Index growth? True point to point

annual reset with NO averaging.

What is the Participation rate? 100% Guaranteed.

Does the product have a Rate cap? Yes, currently 7% on the TIS

strategy, declared annually.

Is there a Spread on the product? No, Spread.

How Liquid is the product? Interest in first year, 10% per year

after year 1, Full Accumulation value at death and at the end of 7

years.

What are the Minimum Guarantees? 3% on 100% of the Premium.

How many moving Parts? 1


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S ING Secure Index

3 Accumulation Strategies!

Rate Guarantees!

Index Guarantees!

And Much More!

SIMPLE, STRAIGHT FORWARD &

EASY TO SELL!


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S Traditional Index Strategy

Annual Reset Point-to-Point with a 7% Cap

Transfers into the TIS will Receive the Index Cap Currently in Effect for Transfers


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S Fixed Interest Strategy

One-Year Interest Guarantee will Earn a Stated Fixed Interest Rate Each Year

The Interest Rate may be Adjusted Annually After Year One

Transfers into the Fixed Rate will Receive the Fixed Rate in Effect for Transfers


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S Index Cap

The Cap is Declared in Advance

Will be Guaranteed for 1 Year

May Change Annually


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S Transfers

Transfers are Permitted Between all Three Strategies

Full Accumulation Value of Each Strategy is Available for Transfer

Transfers are Available Each Year During the 30 Days Following Each Contract Anniversary

No Surrender Charges Apply

Transfers are Made on a LIFO Basis


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Remember, this is only the minimum guaranteed contract value. ING Secure Index Annuity has the

potential to earn much more!

Guarantees

3% on 100% of Premiums Received (Less any Withdrawals, Surrender Charges and Premium Taxes)


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Product Specs



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S Direct Participation Example...

$100 - 50% Loss = $50

$50 + 50% Gain = $75

$100 - $75 = 25% Loss


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850850700700

850850

ING Secure Index Annuity1 Year Reset vs. Direct Participation

Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr surrendersurrender


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ING Secure Index Annuity 1 Year Reset w/ TISDirect Participation

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2 Year Totals2 Year TotalsNet Gain = 0%Net Gain = 0%

Interest Credited = 7%Interest Credited = 7%

Figures shown assume ending average index value of 700, minus beginning index value of 850, divided by beginning index value of 850, with a 7% current cap subject to change each year.

Minimum Guaranteed rate is 3% on 100% of premiumMinimum Guaranteed rate is 3% on 100% of premium



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S Guaranteed Index Strategy

Annual Reset Point-to-Point with a 5% Cap

Transfers into the GIS will Receive the Index Cap Currently in Effect for Transfers

Minimum Guaranteed 2% Interest Increase Rate

Rates subject to change.


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1 Year Reset w/ GIS Direct Participation

0

100

200

300

400

500

0 1 2

2 Year Totals2 Year TotalsNet Gain = 0%Net Gain = 0%

Interest Credited = 7.10%Interest Credited = 7.10%

Interest credited first year = 2%Interest credited 2nd year = 5%. Total over 2 years = 7.10%

Minimum Guaranteed rate is 3% on 100% of premiumMinimum Guaranteed rate is 3% on 100% of premium



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ING SECURE INDEX ANNUITY

An excellent alternative to CDs:

Guaranteed return! 3% on 100% of Premiums Received (Less any Withdrawals, Surrender Charges and Premium Taxes)

3% for 7 Years with the potential to earn MORE!!!

Source of retirement income Tax deferral 10% Free withdrawals Nursing Home Waiver (most states) Ability to typically avoid probate Ability to add premium at anytime

Annuities are not FDIC insured. IRAs/qualified plans are already tax deferred. Withdrawals before age 59 1/2 may result in 10% IRS penalty tax.


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Example assumes 28% Federal Income tax bracket. Annuities are not FDIC Insured. Annuity features not available in all states. IRAs/qualified plans are already tax deferred. Consider other annuity features.

Big Benefits of Traditional Annuities

CD Buyers Just Don’t Get

Tax Deferral

A CD would have to

earn 4.16% to equal

the return of a

3% annuity.

Plus…

Flexible Premiums Nursing home waiver Long-Term Guarantees Income Options

Nursing home waiver (not available in MA or TX)


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Primary Investment Goals of Baby

Boomers

0% 20% 40% 60% 80%

Emergency Healthcare

Child's Education

Home Purchase

Maintain Lifestyle

Retirement Savings

Source: 1997 Baby Boomer Generation Poll


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S Benefits and Advantages

Annuities typically avoid probate process

By naming a living beneficiary, assets can be

directly transferred


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S Benefits and Advantages

Nursing Home Waiver

Allows Access to 100% of Accumulated Value for Nursing

Home, Hospital, or Qualified Care Facility

Nursing home waiver (Not available in MA or TX)



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That’s theSecurity and Power the

ING Secure Index AnnuityOffers Your Clients!!!

That’s theSecurity and Power the

ING Secure Index AnnuityOffers Your Clients!!!


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We reserve the right to alter or end incentive at any time. Applications must be submitted by 4/30/03, Cases issued by6/30/03. $25,000 minimum premium to qualify for bonus. No limit on the amount of bonus you can earn. Only one bonusper client. Bonuses will be paid at end of incentive period.

$250 BonusOn Each Sale Over $25,000



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retirement solutions powered by ing fixed annuities for agent use only. contracts issued by usg...

Documents

power of ing fixed annuities

ing groep

customers ing

benefits of fixed annuities

parent company of ing

employees ing group

excellent service ing

brief history of ing