ST. PAUL, Minn.--()--Major changes are taking place in the annuity industry. Financial security in retirement is weighing on the minds of investors and advisors alike and they are talking about it. Nearly half of all investors (49%) indicate that their top financial goal in retirement is not to run out of money.1 LIMRA also notes that a majority of advisors are very concerned that their clients may outlive their assets.2
“Many advisors told us that offering variable annuities has become more complex”
Securian’s Minnesota Life now offers a simpler variable annuity that is easier for clients to understand and directly addresses their concerns about financial security in retirement.
The MultiOption® annuity line offered by Minnesota Life Insurance company now includes the Guide series. It is easier for clients to understand and designed to meet the needs they describe to their advisors. Chris Owens, national sales vice president, Retail Life and Annuities, says the MultiOption® Guide product is a direct response to feedback from advisors.
“Many advisors told us that offering variable annuities has become more complex,” said Owens. “Developing retirement income strategies for clients and staying on top of product changes has been a challenge. Our new products offer less complexity and guaranteed income in retirement.”
Attributes of the MultiOption® Guide products include:
- A simplified suite of variable annuities that focuses on the most important benefits for clients, making it easier to sell.
- Competitive optional living benefits, including Ovation Lifetime Income II, are attractive options for clients that are available at additional cost.
- A streamlined investment lineup simplifies the process of helping clients build portfolios for their variable annuities.
“We made this product available in a B series with a seven-year surrender charge and an L series with a four-year surrender charge,” said Dan Kruse, second vice president and actuary, Individual Annuity Products. “These structures make the economics of the products work for clients and advisors, even in today’s low interest rate environment.”
Find more information about Minnesota Life’s new MultiOption® Guide variable annuity products, including compensation options, here.
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, it is the holding company parent of a group of companies that include Minnesota Life Insurance Company and Securian Life Insurance Company, a New York admitted insurer.
Compensation options are subject to the terms of the broker-dealer selling agreement.
The variable annuity prospectuses contain details on investment objectives, risks, fees, and expenses, as well as other information about the variable annuity and variable investment options. Encourage your clients to read the prospectus carefully before investing.
An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax-qualified plan, the tax deferral feature offers no additional value. There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals. Variable annuities have additional expenses such as mortality and expense risk, administrative charges, investment management fees and rider fees. Variable annuities are subject to market fluctuation, investment risk and loss of principal. You can lose money by investing in the variable investment options.
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 admitted insurer. 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.
Securities offered through Securian Financial Services, Inc. Member FINRA/SIPC. 400 Robert Street North, St. Paul, MN 55101-2098 • 1-800-820-4205
The guarantees in MultiOption annuities are based solely on the financial strength and claims-paying ability of Minnesota Life. The guarantees have no bearing on the performance of the variable investment options.
Ovation II is an optional living benefits that, once elected, cannot be cancelled. It establishes a Benefit Base for calculating guaranteed annual income either via withdrawals or annuitization. The Benefit Base provides no minimum contract value or investment return and is not available for withdrawals. Withdrawals exceeding allowed guidelines, or taken before certain Benefit Dates, may have a negative impact on the guarantees provided by the optional living benefit. Each benefit requires use of an approved asset allocation strategy.
For financial professional use only. Not for use with the public. This material may not be reproduced in any form where it is accessible to the general public.
1 The Evolution of the Annuity Industry, Retirement Institute (IRI) and Cogent Research, September 10, 2012.
2 The Evolution of the Annuity Industry, Retirement Institute (IRI) and Cogent Research, September 10, 2012.