Volatility Control Indices:
The Truth Behind the Hype
20643YY| PRT 09-14
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Evolution of Product Innovation
LongTerm
Point-toPoint
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Annual
Reset w/
Averaging
Monthly
Point-toPoint
GLWB
Riders w/
Guaranteed
Rollup
Rates
Volatility Control (VC)
Alternative Indices
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Volatility Defined
“tending to fluctuate sharply and regularly”
“fleeting; transient”
How do your clients react to the word “volatility?”
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FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Volatility Control Defined
Decreased
Volatility
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Decreased cost
of options
Potential for
Uncapped
Crediting
Strategies
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Industry Background
Volatility Control vs Volatility Control Indices
“Volatility Control” is not a new concept
• Annuities
• Crediting Methods
• Indexing
• Averaging
Volatility Control Indices are the innovation
• Familiar faces (i.e. S&P)
• New proprietary index providers
20643YY| PRT 09-14
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
How does it work?
• VC Indices typically offer a choice of VC levels (i.e 5%, 8%, 10% etc)
• Index is designed to achieve or stay within specified level
• In general, Index vs Cash/Non-correlated asset position
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FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
How does it work?
IMPORTANT REMINDERS
• WHAT IT IS – Statistical measure; advanced quantitative approach to
measurement
• WHAT IT IS NOT – Actively managed
• Regulatory Attention
•UNCAPPED Does Not Mean Unlimited
• VC Indices are themselves smoothing out peaks of common indices
(i.e. S&P 500 vs VC version of S&P 500)
• Crediting method levers – Index margins and/or Participation rates
• Similar to other indices, allocation of premium to this index is NOT a
direct investment in the market or index
20643YY| PRT 09-14
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Competitive Landscape
1. Does the illustrated rate seem
“too good to be true?”
2. How does live index performance
compare to backcasted/simulated?
3. Does the index provider have a
proven track record?
20643YY| PRT 09-14
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
The Midland National Difference
Innovation with Integrity
Our Story
Our Solutions
20643YY| PRT 09-14
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Innovation with Integrity
NEW Index - S&P 500 Low Volatility Daily Risk Control 5%
Coming September 30th!
Available on MNL RetireVantage and
MNL IncomeVantage fixed index annuities
KEY BENEFITS
 Uncapped Design - Annual Point to Point with Index Margin*
 Index from proven S&P family
 Transparency for you and your clients via public website
Stable returns
STAY TUNED in coming weeks for state approvals and rates!
***Agent Certification Training Required***
New index certification course available at midlandnational.com
*See disclosure page for specific index disclosure
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FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Midland National Story
Strength – Longevity, Strength and Ownership
• Over 100 Years in the Industry
(Founded as Dakota Mutual Life Insurance Company in 1906)
• $37.4B in Assets
• Rated A+ (Superior, 2nd highest of 15 categories) by A.M. Best
Since 1979
• Rated A+ (Strong, 5th highest of 22 categories) by Standard &
Poor’s
• We Think Like Owners
• Long-Term Focus
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As of December 31, 2013, Midland National has over $37.4 billion in assets.
The life insurance companies of Sammons Financial Group have approximately
$31 billion of annuity reserves for 536,000 contract owners. (2013 Past,
Present, Future brochure)
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Midland National® Rises Above the Rest
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FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Midland National® Rises Above the Rest
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FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Equipping You for Success
“MVP” Education Bundles
– Tools to Help Start Client Conversations and Grow Your Business
– 3 Part Series
• The “WOW” Client Experience
• Pension Rollover
• Social Security Conversations
Contact Sales Support
to see if you’re
eligible for these
great educational
tools!
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FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Thank you!
Sales Support 877-586-0241
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FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Product Disclosures
Fixed Index Annuities are not a direct investment in the stock market. They are long term insurance products with guarantees backed by the issuing company. They
provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or
fluctuation. Although Fixed Index Annuities guarantee no loss of premium due to market downturns, deductions from your Accumulation Value for additional optional
benefit riders could under certain scenarios exceed interest credited to your Accumulation Value, which would result in loss of premium. They may not be appropriate for
all clients.
Products that have bonuses may offer lower credited interest rates, lower Index Cap Rates, lower Participation Rates and/or greater Index Margins than products that
don’t offer a bonus. Over time and under certain scenarios the amount of the bonus may be offset by the lower interest rates, lower Index Cap Rates, lower Participation
Rates and/or greater Index Margins.
These riders and products are issued by Midland National Life Insurance Company, West Des Moines, IA. Product features and riders may not be available in all
states, may not be available on all products, or appropriate for all clients
The MNL RetireVantage® is issued on form AC/AS124A (certificate/contract), AR153A, AR156A, AR159A, AR163A, AR163A-1, AR192A, AR194A, AR201A, AR227A,
AR244A, AR245A, AR246A, AR247A, and AR248A (riders/endorsements) or state variation by Midland National® Life Insurance Company, West Des Moines, IA. This
product, its features and riders may not be available in all states.
Retire X-Cel GMWB Rider is an optional guaranteed lifetime withdrawal benefit (GLWB) available for an additional cost at the time of application on most fixed index
annuities and is issued on form AR202A (rider) and PS202B (spec page) or appropriate state variation. The Income Multiplier (x2) is issued on form AR273A (rider) and
PS273B (spec page) or appropriate state variation and is an electable rider issued in coordination with the Retire X-Cel, for an additional cost. The Income Multiplier (x2)
is not Long Term Care Insurance and cannot be used in conjunction with any Nursing Home Confinement Rider. Forms are issued by Midland National Life Insurance
Company, West Des Moines, IA and may not be available in all states or appropriate for all clients. Please see Rider brochure for further details and limitations.
The MNL Guarantee Ultimate® is issued on AC/AS130A (certificate/contract), AR157A-1, AR159A, AR194A, AR208A and AR209A
(endorsements/riders) or appropriate state variations by Midland National® Life Insurance Company, West Des Moines, IA.
The “S&P 500®”, “S&P 500® Low Volatility Daily Risk Control 5% Index”, “S&P MidCap 400®”, and “DJIA®”, Indices (“Indices”) are products of S&P Dow
Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by Midland National (“the Company”). Standard & Poor’s® and S&P® are
registered trademarks of Standard & Poor’s Financial Services LLC (“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 the Company. MNL
RetireVantage® and MNL IncomeVantageSM are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or 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 Indices.
20643YY| PRT 09-14
FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.