CPG Annuity News and Notes

October 2012

Avoid returned applications! 

Have you
… Completed all required, product specific annuity training?
… Correctly completed all suitability questions?
… Pulled all of the required forms?

When in doubt,  

call your  

Annuity Center!

What’s New

ING Performance Trigger Strategy Approved in  



ING USA is excited to introduce the brand new ING Trigger Strategy in CA, CT, DE, MS, NH and WY. This new strategy offers a trigger rate which will be credited if the S&P 500 experiences growth greater than or equal to zero.  Please click here for state approval on the ING Trigger Strategy as of September 24, 2012.  Please click here for the updated forms chart.  Forms became available on September 21, 2012.  Please use this version of the application when submitting new business.  All paperwork must be signed and dated on or after September 24, 2012.


Product Disclosure Transition Rules

Below are the transition rules for disclosures related to the launch of the Trigger Strategy:

  • If the client indicates on the application they want to elect the Trigger Strategy, the 7/9/2012 disclosure is required.
  • For applications received in Trigger-approved states between September 24, 2012 and October 5, 2012, a prior version of the disclosure will be accepted if the Trigger Strategy was not elected. Visit ING’s website at www.ingannuities.com to view the most current state specific disclosures.
  • As of October 8, 2012 if a producer submits business in a state that the Trigger Strategy has been approved, the 7/9/2012 disclosure will be required to issue the contract, regardless if the Trigger Strategy is wanted or not.
  • For applications received in a state where the Trigger Strategy has not been approved, a prior version of the disclosure will be accepted. Visit ING’s website at www.ingannuities.com to view the most current state specific disclosures.

Prior to solicitation producers must complete the ING product specific training. Please click here to view ING’s new 7 minute product specific training!  **All producers appointed through a broker dealer must complete the ING Product Specific Training through the Kaplan website.

Did you know that Genworth Financial has an Understanding Options for Your Retirement Savings Consumer Education Series that you can customize and send to your clients?
Click here to take a look!



Effective September 24, 2012 American General Life Companies announced Index Crediting Methodology Changes.    

Click here to learn more. 



Rate Watch

Rates are subject to change without notice and are not guaranteed.  Agents should verify all rates prior to disclosing any rate to a client.
Updated as of 10/1/2012.  Click hereto enlarge.


Let’s Explore


6 Ways to Build Guaranteed Retirement Income   


Help your clients determine which is best for them.

                              It might not be just one! 

There are many ways to build a nest of guaranteed retirement income:  pensions, annuities, longevity insurance, reverse mortgages, Social Security, and more. Here is what every client should know about using these vehicles to maximize their own guaranteed, lifetime retirement income.


1.  Create Guaranteed Income with Immediate or Fixed Annuities

The easiest way to get guaranteed income is to buy it! When your client purchases an Immediate Annuity, they use a lump sum of funds to purchase guaranteed income for a desired period of time, possibly as long as the client’s lifetime. Single Premium Immediate Annuities (SPIAs) require that income start within 13 months of the deposit date. If your client is not ready for income that soon, a Fixed Indexed Annuity with a guaranteed minimum withdrawal benefit rider (GMWB) or guaranteed lifetime income rider (GLIR) can provide guaranteed income at some point in the future. As the account value of the Fixed Indexed Annuity grows, the “income base” grows with it, increasing the client’s guaranteed withdrawal amount.


2.  Guaranteed Income from Pension Plans

Pension plans also provide a source of guaranteed income, but the level of guarantee is not as comprehensive as with fixed annuities. Pension Plans can get themselves into financial straits where benefits being paid out to existing employees are reduced. There is a type of government insurance called the Pension Benefit Guarantee Corporation which protects pension benefits, but the amount that can be guaranteed is capped, meaning your client’s full pension may not be insured.


3.  Reverse Mortgages Provide Income for Life

Reverse mortgages can provide guaranteed income for life, but are not as popular a vehicle as some of the alternatives. Clients shy away from perceived high fees and the fear that the bank could take their home, but regulations changed greatly in 1993 and these fears are now unfounded.  If your client imagines the fees are too high, a bit of investigation should clear up those misgivings.


4.  Social Security is a Source of Increasing Guaranteed Income

The majority of retirees receive the largest portion of their guaranteed retirement income from Social Security. Not only is the income guaranteed, but each year a cost of living adjustment ensures that purchasing power keeps pace with inflation


5.  Longevity Insurance for Income Later in Life

Longevity insurance is a type of deferred immediate annuity which guarantees income starting at a designated age, often Age 85 or 90. Clients who purchase longevity insurance may feel more comfortable spending during their early retirement years, knowing that this guaranteed income is waiting for them when the time arrives.


6.  Retirement Income Notes – A New Way to Generate Guaranteed Income

Barclay’s Retirement Income Notes are a type of bond designed to pay monthly payments for a set period of time, with each payment consisting of both interest and principal.  They issue these notes in terms that range from 15-30 years. With each note, your client purchases $100 of monthly guaranteed income for the specified term. These retirement income notes are sold as either “level-pay” notes, where your client’s monthly income remains the same, or as “inflation-adjusted” notes, where your client’s monthly income is adjusted with changes in the consumer price index.




Sales Idea

Does one or all of the following describe any of your clients?

  • Looking for guaranteed growth to increase their amount available at retirement
  • They have time for the value to grow
  • Maintaining control is high on their list
  • They have an immediate need for income and for that income to be guaranteed for a set period of time, or for life

North American can offer them income option solutions! 


Click here to learn more or contact us today!


In the Market


What are the latest trends in consumer behavior toward retirement income?*
What Your More Likely to Hear From Pre-Retirees About When They Will Retire:
“I’m Going to Delay Retirement!”


Percentage of People Retiring Sooner Than Expected: 50%


Percentage of People That Have Left the Workforce by Age 65:  74%


In 2010 the Percentage of Male Social Security Recipients That Were Age 62:  42.6%   Females: 47.9%


In 2010 the Percentage of Eligible Recipients That Began Social Security at Age 70+: 
Males – 0.9%   Females – 1.8%


How Much Money is Sitting on the Sidelines:  $10 Trillion


#1 Reason for Sitting on Cash:

“Uncertainty About Where to Invest”


*Sources in order presented above: Wells Fargo-Gallup Investor and Retirement Index; June, 2012, Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2012 Retirement Confidence Survey, Social Security Administration, Table 6.B5, 2011 Annual Statistical Supplement, JP Morgan Weekly Market Recap, April 16, 2012 Definition: M2 – M1 + Institutional Money Market Funds + Cash in IRA & Keogh Accounts


Finish 2012 Strong! 

2012 Fourth Quarter Has Arrived!

 Don’t wait any longer!


Give us a call today to learn about product enhancements, sales ideas, illustration support AND special incentives currently being offered!




For Broker Use Only.  Not Intended for use, distribution, or sharing with the public.