A distinctive combination of indexed accounts and variable investment options helps this investment-only variable annuity (IOVA) stand out from the competition.
Why choose MultiOption Momentum?
when investing, and minimizing their impact can greatly affect your clients’ portfolio over time.
opportunities through available indexed accounts to help address your clients’ risk tolerance.
A few basis points can make a huge impact over time
For investment-focused clients, it’s not hard to see the benefits of a product like MultiOption Momentum — especially when considering the compounding power clients miss out on when paying higher fees.
An investment in MultiOption Momentum could save your client tens of thousands of dollars in expenses when compared to a similar product with an M&E fee that is 20 basis points higher.
Chart data: impact of additional 20 basis points on a $250,000 investment
|Percent||10 years||15 years||20 years|
Hypothetical example for illustrative purposes only.
Built-in hedging through available indexed accounts
Adjust the dial for growth potential, protection – or both!
A combination of underlying variable investment options and indexed accounts lets clients strike the right balance between risk and return for their specific needs. Clients can choose how to allocate their assets between the variable investment options and indexed accounts.
The investment performance of variable investment options is not guaranteed, and can decrease in value. The indexes are not available for direct investment, and crediting is subject to the declared cap and/or participation rate. The indexed accounts are not available with the Premier Protector optional death benefit.
Keep more of your clients’ money working for them
When compared to placing assets in separate investment vehicles, having variable investment options and indexed accounts together in one MultiOption Momentum contract provides clients with impactful tax benefits:
- Ability to make investment changes without triggering a taxable event
- No trade fees since the variable investment options and indexed accounts are all in one contract
- Tax deferral keeps more of your client’s money in their contract and compounding over time
Earnings are taxable as ordinary income when distributed. If the annuity will fund an IRA or other tax-qualified plan, the tax deferral feature offers no additional value.
MultiOption Momentum product details
Issue age: Maximum 85
Purchase payments: $25,000 minimum initial, up to $2 million maximum in purchase payments
- More than 75 options
Indexed accounts (not available with Premier Protector Death Benefit)
S&P 500® Indexed Account
- 1-Year Point-to-Point with Cap
Barclays All Caps Trailblazer 5 Indexed Account
- 1-Year Point-to-Point with Participation Rate
- 1-Year Point-to-Point with 2% Spread and Participation Rate
SG Climate Prepared Indexed Account
- 1-Year Point-to-Point with Participation Rate
- 1-Year Point-to-Point with 2% Spread and Participation Rate
Guaranteed interest accounts
Dollar Cost Averaging (DCA) Fixed Account: 6 or 12 months
Annual cost (applies only to variable investment options)
- 0.75% Mortality & Expense Risk Charge (1.20% if annuitized)
- 0.15% Administrative Charge
- Investment Management Fees (vary by subaccount)
- $50 Maintenance Fee (waived at $75,000)
Deferred sales charge 8% - 8% - 7% - 6% - 5% (5 years from each purchase payment)
- Investment gain, or 10% of purchase payments still subject to charge, or RMD
Waiver of deferred sales charge
- After first contract anniversary for qualifying medical care stay or terminal illness
- Withdrawals or surrender under the optional Enhanced Liquidity Option
Death benefit Contract value, plus any excess of Guaranteed Minimum Surrender Value over value of indexed accounts
Optional benefits (available for an additional cost)
- Enhanced Liquidity Option
- Return of Purchase Payments Death Benefit
- Premier Protector Death Benefit
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. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Please consult a tax advisor for specific information. 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. The variable sub-accounts of variable annuities are subject to market fluctuation, investment risk and loss of principal.
Some products and optional features may not be available in all states and features may vary by state. Optional benefits are available for an additional cost in a variable annuity. Not all products, features and optional benefits are available from all selling broker dealers and certain products/benefits may not be combined. Please consult with your firm before providing any products/services or materials listed here.
The guarantees are subject to the financial strength and claims-paying ability of Minnesota Life. The guarantees have no bearing on performance of the variable investment options. We reserve the right to limit or discontinue acceptance of future purchase payments after the contract is issued.
For Indexed Accounts, the Cap(s), Participation Rate(s), and/or Fixed Interest Rate for the initial Crediting Period are shown in the contract at issue. For each subsequent Crediting Period, rates will be declared at the beginning of the Crediting Period and will be guaranteed for the duration of the applicable period. Rates are subject to the maximums and/or minimums as stated in the contract.
S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). The foregoing trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and S&P 500® are registered trademarks of S&P and have been licensed for use by S&P Dow Jones Indices LLC and Minnesota Life Insurance Company (“Minnesota Life”). The S&P 500® index is a product of S&P Dow Jones Indices LLC and has been licensed for use by Minnesota Life. Minnesota Life Annuities are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P nor their respective affiliates make any representation regarding the advisability of investing in such product(s). Index performance, if shown, does not include dividends.
Barclays Bank PLC and its affiliates (“Barclays”) is not the issuer or producer of Minnesota Life Insurance Company (“Minnesota Life”) Annuities and Barclays has no responsibilities, obligations or duties to contract owners of Minnesota Life Annuities. The Barclays All Caps Trailblazer 5 Index is a trademark owned by Barclays Bank PLC and licensed for use by Minnesota Life as the Issuer of Minnesota Life Annuities. While Minnesota Life may for itself execute transaction(s) with Barclays in or relating to the Barclays All Caps Trailblazer 5 Index in connection with Minnesota Life Annuities, contract owners acquire Minnesota Life Annuities from Minnesota Life and contract owners neither acquire any interest in Barclays All Caps Trailblazer 5 Index nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in Minnesota Life Annuities. The Minnesota Life Annuities are not sponsored, endorsed, sold or promoted by Barclays and Barclays makes no representation regarding the advisability of the Minnesota Life Annuities or use of the Barclays All Caps Trailblazer 5 Index or any data included therein. Barclays shall not be liable in any way to the Issuer, contract owners or to other third parties in respect of the use or accuracy of the Barclays All Caps Trailblazer 5 Index or any data included therein. The indexes are not available for direct investment.
The SG Climate Prepared Index (the “Index”) is the exclusive property of Société Générale and its affiliates (collectively, “SG”). Société Générale has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) (“S&P”) to maintain and calculate the Index. “SG Americas Securities, LLC”, “SGAS”, “Société Générale”, “SG”, “Société Générale Indices”, “SGI”, and “SG Climate Prepared Index” (collectively, the “SG Marks”) are trademarks or service marks of SG or have been licensed for use by agreement with Entelligent Inc. (“Entelligent”) and/or other third parties. SG has licensed use of the SG Marks to Minnesota Life Insurance Company (“Licensee”) and sub-licensed the use of certain Entelligent marks and/or other third-party marks (the “Third-Party Marks”) for use in this Variable Annuity offered by the Licensee (the “Product”). Société Générale’s sole contractual relationship with Licensee is to license the Index and the SG Marks and sub-license the Third-Party Marks to Licensee.
None of Société Générale, S&P, or other third party licensor (collectively, the “Index Parties”) to Société Générale is acting, or has been authorized to act, as an agent of Licensee or has in any way sponsored, promoted, solicited, negotiated, endorsed, offered, sold, issued, supported, structured or priced any Products or provided investment advice to Licensee, and no Index Party makes any representation whatsoever as to the advisability of purchasing, selling or holding any product linked to the Index, including the Products. The Index Parties expressly disclaim any liability with respect to the Products in which an interest crediting option is based on the Index and the quality, accuracy, timeliness and/or completeness of the Index or any data included therein (including any illustrations or demonstrations of returns included herein), and is not liable for any loss relating to the Products, whether arising directly or indirectly from the use of the Index, its methodology, any SG Mark, or otherwise. Obligations to make payments under the Products are solely the obligation of Licensee. The selection of the Index as a crediting option under a Products does not obligate Licensee or Société Générale to invest annuity payments in the components of the Index.
In calculating the performance of the Index, SG deducts a maintenance fee of 0.50% per annum on the level of the Index, and fixed transaction and replication costs, each calculated and deducted on a daily basis. The transaction and replication costs cover, among other things, rebalancing and replication costs. The total amount of transaction and replication costs is not predictable and will depend on a number of factors, including the leverage of the Index, which may be as high as 200%, the performance of the indexes underlying the Index, market conditions and the changes in the market environments, among other factors. The transaction and replication costs, which are increased by the Index’s leverage, and the maintenance fee will reduce the potential positive change in the Index and increase the potential negative change in the Index. While the volatility control applied by the Index may result in less fluctuation in rates of return as compared to indices without volatility controls, it may also reduce the overall rate of return as compared to products not subject to volatility controls.
Variable annuities are sold by prospectus. Your clients should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information.
These materials are for informational and educational purposes only and 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. Securian Financial Group, and its affiliates, have a financial interest in the sale of its products.
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. Variable products offered through Securian Financial Services, Inc. Member FINRA/SIPC.
Securian Financial is the marketing name for Securian Financial Group, Inc., and its affiliates. Minnesota Life Insurance Company and Securian Life Insurance Company are affiliates of Securian Financial Group, Inc.
The information presented above is solely intended for use by financial professionals. Such information is not intended for public consumption or dissemination.