Annexus and Securian Financial Announce New Indexed Universal Life Solution for Legacy, Accumulation and Tax-advantaged Income
July 17, 2018 by Annexus
SCOTTSDALE, Ariz., July 16, 2018 (GLOBE NEWSWIRE) — Annexus, a leading designer of indexed life insurance, and Securian Financial launched Balanced Growth Accumulator (BGA), a breakthrough indexed universal life insurance (IUL) policy underwritten by Minnesota Life Insurance Company. BGA builds on the success of the companies’ past collaboration and features a variety of new and unique benefits. In addition to an income tax-free death benefit, BGA offers powerful growth potential, greater income flexibility, chronic illness benefits and more.
One of BGA’s primary innovations is index accounts featuring the dynamic new S&P PRISMSM Index, multifaceted approach for stable long-term growth. The S&P PRISM Index evaluates a broad range of market indicators, including momentum and recession indicators, to anticipate and navigate rapidly changing markets.1 The index leverages diversification in U.S. equities, bonds and commodities, and a daily rebalancing process designed for positive growth potential through both bull and bear markets.
The S&P PRISM Index is used exclusively in BGA’s uncapped indexed accounts. In part due to the consistency of PRISM’s design and hypothetical past performance, BGA offers some of the industry’s highest uncapped index allocations — from 120% to 200%.
Supplemental retirement income may be increased with the optional Income Protection Flex Agreement (IPA Flex). For no additional cost, IPA Flex lets clients split their death benefit into a lump sum and a portion paid out over a period of 10-30 years. “IPA Flex helps clients access more tax-efficient income while living, and, if the client doesn’t need to access the income available in BGA, the total benefit for the beneficiary may actually exceed the policy’s death benefit,” said James Hahn, Executive Vice President of Life Sales & Distribution for Annexus.
BGA also includes options to help clients prepare for life’s ‘what ifs.’ “Clients today are concerned about the impact that chronic care expenses could have for themselves and their families,” said Hahn. “BGA offers two chronic illness benefits, including one that requires no underwriting and may be added at no additional cost.”2
“The IUL market continues to show substantial growth,” said Annexus Co-founder Ron Shurts. “We’re expanding the reach of the client-centered innovations that have made our fixed indexed annuities so successful by placing them in an IUL design. Advisors who offer BGA know they have an exclusive solution — they’re uniquely positioned to help their clients and grow their business. It’s a true competitive advantage.”
BGA also offers a variety of loan options and policy customization including optional agreements for inflation and terminal illness protection. Individuals interested in obtaining more information on BGA should contact their financial professional. Financial professionals should contact their Annexus contracted Independent Distribution Company or visit www.annexus.com/IUL for more information.
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 Financial is the holding company parent of a group of companies that offer a broad range of financial services.
About Annexus
Annexus designs solutions to help Americans grow and protect their retirement savings. For over a decade, Annexus has developed market-leading fixed indexed annuities and indexed universal life insurance products. In close collaboration with design partner Genesis Financial, Annexus has forged relationships with many of the industry’s leading insurance carriers and the world’s largest investment banks. Find out more about Annexus and our products at www.annexus.com.
- Source: Standard and Poor’s. See https://us.spindices.com/indices/strategy/sp-prism-index for additional information, including the Index methodology, which includes the manner and timing for rebalancing.
- The Chronic Illness Access Agreement and the Accelerated Death Benefit for Chronic Illness Agreements are life insurance policy agreements that provide an option to accelerate the death benefit in the event that the insured becomes chronically ill. While there is not additional charge for the Chronic Illness Access Agreement, if you choose to exercise the Agreement, at the time we pay the chronic illness benefit we will reduce your Policy’s death benefit by an amount greater than the Chronic Illness benefit payment itself, as described in the Agreement.
These Agreements may not cover all of the costs associated with chronic illness. These Agreements are generally not subject to health insurance requirements and do not provide long-term care insurance subject to state long-term care insurance law. These Agreements are not state-approved Partnership for Long Term Care Program Agreements and are not Medicare supplement policies. Receipt of Chronic Illness Benefit payments under these agreements may adversely affect eligibility for Medicaid or other government benefits or entitlements.
Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues.
Annexus Enterprises, LLC serves as a distributor of these products and is independently owned and not affiliated with Securian Financial Group, Minnesota Life Insurance Company, or Securian Life Insurance Company.
The Indexed Universal Life Series is designed first and foremost to provide life insurance protection. While the interest crediting options available with these products are attractive for cash value accumulation, your fundamental objective in buying the product should be the peace of mind that the life insurance protection provides to you and your family or business.
Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender charges. One can lose money in these products.
Guarantees are based on the claims-paying ability of the issuing insurance company.
The Balanced Indexed Accounts employ a Balanced Allocation Strategy with one-year, two-year and three- 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%.
The “S&P PRISM Index” is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”) and, and has been licensed for use by Minnesota Life Insurance Company (Minnesota Life). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Minnesota Life. Indexed Universal Life Insurance Policy Series is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the the S&P PRISM Index.
Additional agreements may be available. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements.
The Income Protection Flex Agreement provides for an irrevocable settlement for all or a portion of the policy death proceeds. The beneficiary of the policy will not be able to change the manner in which the death proceeds are paid out upon the death of the insured.
The Income Protection Flex Agreement installment payment could be payable for a period up to 30 years. The installment payment and the interest rate used to calculate that payment will be shown in the policy illustration that you provide to clients either prior to or upon receipt of the policy. The income protection agreement interest rate used in the calculation of the installment payment is at least equal to the Settlement Option Guaranteed Interest Rate shown on the policy data pages. A portion of the benefit that is paid out in installments will be reportable as interest income. This taxable portion represents the amount of the benefit that exceeds the policy death proceeds.
Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender, and will reduce both the surrender value and death benefit. Withdrawals may be subject to taxation within the first fifteen years of the contract. You should consult your tax advisor when considering taking a policy loan or withdrawal.
This is a general communication for informational and educational purposes. The materials and the information are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. If you are seeking investment advice or recommendations, please contact your financial professional.
The underlying indices only recognize the changes in stock prices and do not include any dividend returns. While the policy and the Indexed and Balanced Indexed Accounts do not actually participate in the stock market or the Index, and one cannot invest directly in an Index, the performance of the underlying index may exceed the offered indexed growth caps for Indexed Accounts. Interest crediting within these accounts will vary based on the movement of the investments within the underlying index. Should the index have 0% growth or decline, investors bear the risk that no Index credit will be given to the account. Administrative and insurance charges are deducted every month, regardless of whether premium outlays are made. Depending upon actual policy experience, the Owner may need to increase premium payments to keep the policy in force.
Policy Form Numbers: ICC16-20073, 16-20073 and any state variations; ICC17-20118, 17-20118 and any state variations; 16-20077 and any state variations.
Not a deposit – Not FDIC/NCUA insured – Not insured by any federal government agency – Not guaranteed by any bank or credit union
Press Inquiries Please Contact
Brian Welsh
Vice President of Marketing Annexus
480-321-8992
