Offering an uncapped interest crediting potential
ST. PAUL, Minn.–(Business Wire)–Securian Financial Group, one of the nation’s largest financial services providers, and Annexus, a leader in indexed product design and distribution, have formed an alliance and launched Balanced Growth Advantage—a new indexed universal life (IUL) insurance policy with uncapped interest crediting potential.
“Balanced Growth Advantage IUL is for clients who want permanent life insurance and the ability to build cash value with protection from negative market performance,” said Larry Cochrane, Securian’s vice president of retail product distribution. “In addition to providing death benefit protection, the policy can help clients accumulate assets to supplement retirement income or cover other financial needs that may arise later in life.”
IUL has been the fastest-growing life insurance product for several years, and its growth continues. New annualized IUL premium grew 15 percent in 2015, while overall individual life insurance premium grew just 6 percent. IUL represented 21 percent of all new individual life premium in 2015.1
Uncapped interest crediting
A key feature of Balanced Growth Advantage, relative to traditional IUL policies, is its uncapped interest crediting potential. While many traditional IUL policies only provide interest up to a cap, BGA offers clients the ability to benefit from the growth of the S&P 500® Price Index,2 subject to an index allocation factor. Clients also benefit from protection from downside markets3 and partial credits applied to accumulation value withdrawn from the Balanced Indexed Accounts, including policy charges.4
“It’s natural to take the uncapped indexed crediting designs in our fixed indexed annuities and bring them to an indexed universal life insurance policy,” said Don Dady, co-founder of Annexus.
“The enthusiasm this new product has already received from our exclusive network has been remarkable,” added Annexus co-founder Ron Shurts. “We think that financial professionals and clients are going to share our excitement about this new opportunity.”
The new policy is underwritten by Securian’s subsidiary, Minnesota Life Insurance Company, one of the top IUL carriers by sales,5 and was co-developed with Annexus and its product design partner, Genesis Financial. Balanced Growth Advantage is available for sale through the Annexus network of independent marketing organizations and Securian Financial Network-affiliated advisors.6
ABOUT SECURIAN FINANCIAL GROUP
Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Now one of the nation’s largest financial services providers, Securian is the holding company parent of a group of companies that offer a broad range of financial services.
Annexus designs insurance solutions combining principal protection with index growth opportunities. Annexus uses patented technologies developed in partnership with Genesis Financial to help individuals face their retirement future with confidence.
1. LIMRA Press Release, March 17, 2016: LIMRA Reports U.S. Individual Life Premium Increases 6 Percent in 2015.
2. The underlying indices only recognize the changes in stock prices and do not include any dividend returns. While the policy and the Indexed Accounts do not actually participate in the stock market or the S&P 500® Index, and one cannot invest directly in an Index, the performance of the underlying index may exceed the offered indexed growth caps. Interest crediting within these accounts will vary based on the movement of the equities within the underlying index. If the index experiences growth less than or equal to 0%, no index credit will be applied to the account. Administrative and insurance charges are deducted every month, regardless of whether premium outlays are made.
The Policy is not sponsored, endorsed, sold or promoted by Standard & Poor’s (“S&P”) or its third party licensors. Neither S&P nor its third party licensors makes any representation or warranty, express or implied, to the owners of the Policy or any member of the public regarding the advisability of investing in securities generally or in the Policy particularly or the ability of the S&P 500® (the “Index”) to track general stock market performance. S&P’s and its third party licensor’s only relationship to Minnesota Life is the licensing of certain trademarks and trade names of S&P and the third party licensors and of the Index which is determined, composed and calculated by S&P or its third party licensors without regard to Minnesota Life or the Policy. S&P and its third party licensors have no obligation to take the needs of Minnesota Life or the owners of the Policies into consideration in determining, composing or calculating the Index. Neither S&P nor its third party licensors is responsible for and has not participated in the determination of the prices and amount of the Policy or the timing of the issuance or sale of the Policy or in the determination or calculation of the equation by which the Policy is to be converted into cash. S&P has no obligation or liability in connection with the administration, marketing or trading of the Policy.
Neither S&P, its affiliates nor their third party licensors guarantee the adequacy, accuracy, timeliness or completeness of the index or any data included therein or any communications, including but not limited to, oral or written communications (including electronic communications) with respect thereto. S&P, its affiliates and their third party licensors shall not be subject to any damages or liability for any errors, omissions or delays therein. S&P makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the marks, the index or any data included therein. Without limiting any of the foregoing, in no event whatsoever shall S&P, its affiliates or their third party licensors be liable for any indirect, special, incidental, punitive or consequential damages, including but not limited to, loss of profits, trading losses, lost time or goodwill, even if they have been advised of the possibility of such damages, whether in contract, tort, strict liability or otherwise.
3. The Balanced Indexed Accounts employ a Balanced Allocation Strategy with one-year, two-year and five-year index segments—except where noted—established monthly. The Balanced Allocation Strategy blends an equity indexed component, a declared rate component, a segment spread component and a participation rate component. Interest credits for any Balanced Index Account segment will never be less than zero. These policies guarantee that upon surrender, lapse or death of the insured interest will be calculated using an annual minimum interest rate of at least 2.00%.
4. If accumulation value is withdrawn from a balanced indexed account for a policy loan with a fixed policy loan interest rate, no transfers from the fixed account to a balanced indexed account or indexed account are available during a 12-month lockout period. Changes from a fixed policy loan interest rate to a variable policy loan interest rate will not be allowed while the policy is in a lockout period.
5. LIMRA 2013-2015 Confidential Sales Surveys, 4th Quarter. Ranked by Planned Recurring Premium for 30 participating companies.
6. The Securian Financial Network, the marketing name for the sales and distribution arm of Securian Financial Group, Inc., its subsidiaries and affiliates, is a nationwide network of financial services firms. Products and services are offered and sold only by appropriately licensed entities and financial representatives.