Summit Bonus Index℠agentu.myagencyservices.com/Portals/19/crys/sentinel... · 2017. 1. 28. ·...

Sentinel Plan® Summit Bonus Index℠

INTRODUCING THE NEW

Summit Bonus Index℠


FOR PRODUCER USE ONLY

This presentation is intended for producer use only and should not be disclosed to the public.

The information contained in this presentation is general in nature and is subject to the applicable annuity and rider language.


Contact Information

Main Telephone (801) 484-8514

Toll Free Number (800) 247-1423

New Business Fax (801) 880-1241

(888) 433-4795

New Business/Suitability…........ [email protected]

Policy Services/Withdrawals….. [email protected]

Commissions………………………….. [email protected]

Licensing………………………………… [email protected]

Sales………………………………………. [email protected]

Marketing/Advertising…………… [email protected]

mailto:[email protected]







Product Description

• Single Premium Deferred Annuity

• 10 Year Surrender Charge

• Premium Bonus

• 4 Interest Crediting Strategies

• Fixed Account

• Income Rider

• Guaranteed Lifetime Withdrawal Benefit


Product Highlights

Type/Market Single Premium Fixed Index Deferred Annuity

Markets Qualified or Non-Qualified

Issue Ages 0 to 80

Minimum Single Premium $5,000 (qualified) $10,000 (non-qualified)

Maximum Single Premium $1 Million (qualified or non-qualified)

Market Value Adjustment (MVA) The MVA is specified in the contract. The MVA expires at the end of each Guarantee Period


Premium Bonus

The Base Policy has a one-time Premium Bonus that is credited to the Accumulation Value on the Policy Date

This bonus ranges from 5%-8%* depending on the state

Premium bonus has a vesting schedule* during the surrender charge period *Premium Bonus and vesting schedules vary by state. Please refer to your state’s Summit Bonus Index Agent Quick Sheet for more details.


Interest Crediting

Indexing strategies will be benchmarked against the S&P 500® Index.

– Subject to applicable Caps and minimums (refer to Rate Sheet for current Caps)

– Caps are subject to change on each Policy Anniversary and are guaranteed for that Policy Year

Crediting rate for a particular strategy can never fall below 0%

Accumulation Value may be reallocated on an annual basis, 30 days prior to the Policy Anniversary date.


Interest Crediting - Caps

A cap is a maximum interest rate that is used when calculating the Index Account’s interest rate.

The Point-to-Point, Monthly Average, and Daily Average strategies use an annual cap.

The Monthly Sum strategy uses a monthly cap.

Caps are guaranteed for each Policy Year and can be adjusted annually, but will never be less than the Guaranteed Minimum Cap.


Interest Crediting Strategies

Annual Point-to-Point

Monthly Averaging

Daily Averaging

Monthly Sum


Annual Point-to-Point

Each Policy Anniversary, the S&P index value is compared to the S&P index value of the previous Policy Anniversary.

The resulting return, up to the applicable cap, will be credited to the Accumulation Value.


Annual Point-to-Point - example

Interest Calculation:

Interest Rate = 1.68%

Policy Year 7/1/2011 –

7/1/2012

Ending Index Value 1,362.16

Initial Index Value 1,339.67

Point-to-Point Cap 2.70%

1,3

39

.67

1,2

86

.94

1,2

04

.42

1,1

31

.42

1,2

18

.28

1,2

44

.58

1,2

57

.60

1,3

24

.09

1,3

74

.09

1,4

08

.47

1,4

05

.82

1,2

78

.04

1,3

62

.16

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

Index Value

%68.167.339,1

67.339,116.362,1


Monthly Averaging

Each Policy Anniversary, the S&P index value for the 12 monthly Index Dates will be averaged and compared to the S&P index value of the previous Policy Anniversary.

The resulting return, up to the Applicable cap, will be credited to the Accumulation Value.


Monthly Averaging - example




1/1/2012

12 Month Sum 15,307.41

12 Month Average 1,275.62


Monthly Average

Cap 2.90%

1,2

57

.64

1,3

07

.59

1,3

06

.33

1,3

32

.41

1,3

63

.61

1,3

14

.55

1,3

39

.67

1,2

86

.94

1,2

04

.42

1,1

31

.42

1,2

18

.28

1,2

44

.58

1,2

57

.60

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

Index Value

%43.164.257,1

64.257,162.275,1


Daily Averaging

Each Policy Anniversary, the S&P index values for each trading day of the Policy Year will be averaged and compared to the S&P index value at the beginning of the period.

The resulting return, up to the applicable cap, will be credited to the Accumulation Value.


Daily Averaging - example




10/1/2012

Daily Index Sum

(253 Index Values) 336,851.32

Daily Average 1,331.43


Daily Average Cap 3.10%

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

Index Value

%70.1742.131,1

42.131,143.331,1


Monthly Sum

Each Policy Anniversary, the S&P performance will be determined for each month in the Policy Year.

The sum of monthly changes in the S&P 500® will determine the overall crediting rate for the year.

Each month, the S&P return will be

subject to the applicable cap.


1.05% -0.19%

-9.09%

0.95%

7.68%

2.16%

5.29%

3.78%

2.50%

6.58%

2.29% 2.70%

Monthly Comparison Policy Year 10/1/2011 – 10/1/2012

Monthly Sum Cap 1.61%

Sum of Monthly Comparisons with cap

5.60% 1.61% Cap

Monthly Sum - example



Fixed Account

The interest rate is guaranteed for each policy year and credited daily to the Accumulation Value.

The interest rate will never dip below the guaranteed minimum of 1%.


Optional Income Rider

Only available if the Annuitant is an owner

Subject to a minimum issue age of 45

Available for an additional charge equal to 1.05% assessed on the Income Account Value and deducted from the Accumulation Value

Can be renewed for an additional 10 years


Income Rider – Premium Bonus An additional Premium Bonus equal to 1% of the initial premium is added to the Accumulation Value and Income Account Value when the Income Rider is selected at issue

The Premium Bonus on the Base Policy is also credited to the Income Account Value when this rider is selected

The total Premium Bonus when this rider is selected ranges from 6%-9% (Base Policy Premium Bonus* + Income Rider Premium Bonus)

Subject to Premium Bonus vesting schedule*

* Base Policy Premium Bonus and vesting schedules vary by state. Please refer to your state’s Summit Bonus Index Agent Quick Sheet for more details.


Income Account Value

The Income Account Value is used to calculate the annual Guaranteed Lifetime Withdrawal Benefit (GLWB) once elected

Different than the Accumulation Value from which funds are available for withdrawals and surrenders

It is not an amount that may be withdrawn and is not payable on death


Income Account Value - Rollup

The Income Account Value will earn a 7% Annual Compound Rollup for 10 years provided the GLWB has not started

The Rollup can be renewed for an additional 10 years unless:

– Oldest Owner, or Annuitant if Owner is a non-natural person, has turned 80

– Rider has been terminated

– GLWBs have started


Income Account Value - Rollup

The annual 7% Rollup stops at the earlier of:

– The start of the GLWB payments

– The day the oldest Owner, or Annuitant if the Owner is a Non-natural Person, turns 85; or

– The end of the initial Roll-up Term Period of 10 years unless the rider is renewed for an additional 10 years.


GLWB

Guaranteed Lifetime Withdrawal Benefit

GLWB guarantees that you may withdraw a specified amount each year even if the Accumulation Value is zero.

The annual GLWB is equal to the Income Account Value multiplied by the Payout Factor corresponding to the attained age of the Owner when income starts.

Benefits may begin any time after the first Policy Year once the owner has attained age 55


GLWB – Payout Factors

*Based on the Younger Joint Life


Income Account Calculation

• Issue Age: 55

• Initial Premium: $65,000

• 9% Premium Bonus : $5,850*

• 100% allocated to Point-to-Point

• Initial Accumulation/Income Account Value: $70,850

*9% Premium Bonus = 8% Base Policy Premium Bonus + 1% Income Rider Premium Bonus

Example


Income Account Calculation Example

Policy

Year Age

Point-to-Point

Interest

Accumulation

Account Value

Rollup

Interest

Income Account

Value

1 55 0.00% $70,850.00 7.00% $75,809.50

2 56 2.70% $72,762.95 7.00% $81,116.17

3 57 2.70% $74,727.55 7.00% $86,794.30

4 58 2.70% $76,745.19 7.00% $92,869.90

5 59 2.70% $78,817.31 7.00% $99,370.79

6 60 2.70% $80,945.38 7.00% $106,326.75

7 61 0.00% $80,945.38 7.00% $113,769.62

8 62 2.70% $83,130.91 7.00% $121,733.49

9 63 2.70% $85,375.44 7.00% $130,254.84

10 64 0.00% $85,375.44 7.00% $139,372.67


GLWB Calculation

• GLWB elected at Age: 60

• GLWB Payout Factor: 5.00%

• Accumulation Value: $80,945.38

• Income Account Value: $106,326.75

• GLWB = $106,326.75 X 0.05 = $5,316.34

Example


GLWB Calculation Example

Policy

Year Age

Point-to-Point

Interest

Accumulation

Account Value

Rollup

Interest

Income Account

Value

1 55 0.00% $70,850.00 7.00% $75,809.50

2 56 2.70% $72,762.95 7.00% $81,116.17

3 57 2.70% $74,727.55 7.00% $86,794.30

4 58 2.70% $76,745.19 7.00% $92,869.90

5 59 2.70% $78,817.31 7.00% $99,370.79

6 60 2.70% $80,945.38 7.00% $106,326.75

7 61 0.00% $80,945.38 7.00% $113,769.62

8 62 2.70% $83,130.91 7.00% $121,733.49

9 63 2.70% $85,375.44 7.00% $130,254.84

10 64 0.00% $85,375.44 7.00% $139,372.67


How to Quote

Download rating software from www.sslco.com/agents

OR

Online quote engine through the Producer Portal

http://www.sslco.com/agents


Settlement Options

The Vested Value can be used to purchase one of the following Settlement Options after the 5th Policy Anniversary.

• Life Income Only

• Life Income Period Certain

• Period Certain Only


Life Income Only

We will pay equal monthly payments for the Annuitant’s remaining lifetime.

Payments end with the payment due just before the Annuitant’s death.

There is no death benefit under this option.


Life Income Period Certain

We will pay equal monthly payments for the longer of the Annuitant’s remaining lifetime or the period certain.

If the Annuitant dies after all payments have been made for the period certain, payments shall end with the payment due just before the Annuitant’s death.


Period Certain Only

We will pay equal monthly payments for a period certain of not less than 10 years and not more than 20 years.

After the fifth Policy Year, You may request a period certain of not less than 5 years and not more than 20 years.


Withdrawal Provisions

A maximum of 2 withdrawals are allowed each Policy Year provided

• Each withdrawal must be at least $250

• Accumulation Value cannot drop below $2500

Any withdrawals will impact the GLWB


Withdrawal Provisions

The amount of the Accumulation Value that is available free from any Surrender Penalty, non-vested Premium Bonus and Market Value Adjustment is:

• For the first Policy Year – The interest earned on the Fixed Account

• For subsequent Policy Years – the Required Minimum Distribution OR up to 5% of the Accumulation Value, whichever is greater.


Surrender Value

The Surrender Value is subject to:

• Surrender Charges

• Market Value Adjustment (MVA)

• Non-Vested Premium Bonus

Minimum Guaranteed Surrender Value will never be less than required by Standard Non-Forfeiture Law.


Maturity

Currently set at Annuitant’s age 100, but may change or be state specific depending on state’s approval

Owner may request a lump sum or one of the Settlement Options available

If no request is received, Cash Surrender Value will be used to purchase a Life with Ten Year Certain Annuity


Death of Owner Death Benefit is paid to the beneficiary.

No penalties, non-vested premium bonus, or MVA applies to the Death Benefit.

Beneficiary can take the Death Benefit as one of the following options: – Lump Sum – Distributed within five years – Installment payments using a Settlement Option

If the beneficiary is a non-natural person, a lump sum will be paid.

If the only beneficiary is the surviving spouse of the Owner, the spouse may continue the Policy and become the new Owner.


Death of Annuitant

Owner can designate a new Annuitant.

If no new Annuitant is provided, the Owner, or older owner if jointly owned, will automatically become the Annuitant.

If the owner is not a natural person, the Annuitant’s death would be treated as a death of Owner.


Delivery Receipt?

All Summit Bonus Index℠ Annuity sales of $250,000 or greater will require a delivery receipt before commissions will be paid.


What now?

Make sure you are appointed to sell Annuities through Sentinel

All forms are available on the Producer Portal at www.sslco.com/agents

http://www.sslco.com/agents


Why Sell Sentinel? Founded in 1948 and dedicated to the senior market Expanding product portfolio that includes: • Final Expense Life Insurance • Medicare Supplement/Select • Hospital Advantage • Annuities

Competitive Commissions Strong financial background


Contact Information

Main Telephone (801) 484-8514

Toll Free Number (800) 247-1423

New Business Fax (801) 880-1241

(888) 433-4795

New Business/Suitability…........ [email protected]

Policy Services/Withdrawals….. [email protected]

Commissions………………………….. [email protected]

Licensing………………………………… [email protected]

Sales………………………………………. [email protected]

Marketing/Advertising…………… [email protected]








SUMMIT BONUS INDEX℠

For More Info

www.sslco.com

800-247-1423

http://www.sslco.com/

Summit Bonus Index℠agentu.myagencyservices.com/Portals/19/crys/sentinel... · 2017. 1. 28. ·...

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Transcript of Summit Bonus Index℠agentu.myagencyservices.com/Portals/19/crys/sentinel... · 2017. 1. 28. ·...