1. The Power of ING Fixed Annuities
Presented by: Title

2. A Brief History of ING
ING Groep, N.V., the parent company of ING, is a multi-national financial services powerhouse with Dutch roots
Active in the fields of banking, insurance, and asset management in 65 countries with over 110,000 employees
ING Group formed in 1990 and in it’s first decade has achieved a 16 fold increase in market capitalization
As published in the 2002 ING Group Annual Report.

3. Key Facts
Total assets are billion (U.S.) with assets under management over 454 billion* (U.S.)
ING currently has over 50 million customers
ING is ranked as one of the top financial organizations in the world:
Top 50 organizations in the world based on profits
10th among the top 20 global financial institutions by market capitalization
#1 publicly traded life and health insurer on the Global Fortune 500, based on revenue*
Financial results reported for *Fortune.com July 22, 2002.

4. Ratings Rating Agency ING USG Annuity A.M. Best A+ (Superior) Fitch*
Standard & Poor’s
ING USG Annuity
A+ (Superior)
AA (Very Strong)
*Formerly Duff & Phelps.

5. Why should you sell ING Fixed Annuities?
Good, clean consumer friendly products that sell
Fair compensation for the agents
Diverse and profitable products to sell and market
Consistently deliver excellent service
ING name recognition
Most important….we are looking to develop long term relationships with our agents!

6. Top 10 Benefits of Fixed Annuities (Sell Benefits NOT Features)
Safety
Guaranteed Interest Rate
Tax deferral
Lifetime income
Flexibility
Liquidity
Death Benefit
May avoid probate
No Annual Fees (most contracts)
Nursing home waiver(not available in MA or TX)
There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified plan, since these are already afforded tax-deferred status. Guarantees are based on the claims paying ability of the insurer

7. Important Reasons for Buying Annuities According to Consumers
Marketing Annuities
Important Reasons for Buying Annuities According to Consumers
Earnings would not be taxed until funds used 89%
Was a safe purchase 88%
Had a good rate of return 86%
Wanted a long-term savings plan 79%
Easy way to save %
Source: The Gallup Organization, 2001
In 2001, Gallup polled annuity owners to find out what attracted them to the annuity market. This slide depicts what consumers of annuities felt were the most important or convincing reasons for investing in annuities.
Discuss slide
These important reasons for purchase are the very selling points that we should be using to market annuities to retirement planners.

8. Source: The Gallup Organization, 2001
Marketing Annuities
Where does the money come from?
Additional Earnings after IRA
Savings Plans
Death benefits from life insurance
Rollovers from retirement savings plans
Following the selling points, we need to understand where our market potential lies and where sources of money for annuity purchase come from.
Read slide
Realize the potential income sources when discussing annuities with your clients. If you have a client or potential client come to you who just received a death benefit from a life insurance policy and they are looking for investment options, what are you going to suggest to them? Recognize the opportunity: Annuities do not have to be sold, when clients fully understand their potential they will be bought.
Source: The Gallup Organization, 2001

9. Guaranteed Income for Life
Very/extremely important to 48%
Slightly more important to:
Lower household incomes
Women
Fixed
Qualified (403(b), IRA)
Source: LIMRA International.
Source: The Gallup Organization, 2001

10. The Power of Persuasion
A recent study showed that if you cue the consumer you can strongly
influence the return expectations of consumers.
For instance, rather than talking about fixed annuity rates returning
4% then showing your product at 4.15%, you should first talk about
the fact that CD rates are around 2% then show the client your
product that will return around 4.15%.
By cueing the consumer it puts them in a mindset to accept a 4.15%
return because it is much greater than a 2% return. However when
compared first to a competitors product at 4%, 4.15% doesn’t sound
like such a great deal.
Jack Marrion, The Index Compendium, October 2002
Annuities are not FDIC insured.

11. The Power of Persuasion
This can also be done when talking EIA’s. Rather than explaining
why participation rates are down, the higher volatility and lower interest
rates, show comparison index participation rates of several products
to establish a value reference, or show that you can still obtain competitive returns at the lower rate this will create a value perception.
CUE your clients and SELL VALUE!
Jack Marrion, The Index Compendium, October 2002
Annuities are not FDIC insured.

12. ING Fixed Annuities EIA Selling Points
ING Secure Index Annuity Annual Reset Point To Point
Heritage Offers Strong Appeal on Point-to-Point
Advantage Index Monthly Averaged Annual Reset
Selectra Flexible Premium Multi-Strategy Annuity
Client-Friendly Products
SIMPLICITY
Funded plans under ERISA cannot be used with these annuities. IRAs/qualified plans already receive tax-deferred treatment under the Internal Revenue Code. Your client should consider other annuity features. Heritage Index Annuity, Advantage Index Annuity, and Selectra Multi-Strategy Annuity contracts issued by USG Annuity & Life Company®/Equitable Life Insurance Company of Iowa, 909 Locust Street, Des Moines, IA

13. Jack Marrion, The Index Compendium, October 2002
EIA Sales Tips
EIA’s are for people who are:
Part Bull
Part Bear
Part Chicken
Jack Marrion, The Index Compendium, October 2002

14. Confusing?????

15. Are EIA’s Worth The Trouble???
Yes, And Here Is Why >>>>>>>>>>

16. Equity Index Sales Are IN! (EIA Sales for 2001 and 2002)
2001 Sales were $6B
Up 20% from 2000
3Q 2002 Sales Increased 21% from 2Q
Up 109% from 3Q in 2001
Through September 2002…Sales over $8B
2002 Projected Sales Over $11B
Most Sales are in Annual Reset Designs
92%
LIMRA and Advantage Group 3rd Quarter Results.

17. How Well Do EIAs Perform?
Out Performed the Average Bond Fund and CD by At Least 40%
Had Higher Returns than 61% of ALL Mutual Funds
Out Performed 99% of Bond Mutual Funds
For the five year period ending at the start of Advantage Group 3rd Quarter Results.

18. ING Secure Index Annuity
NEW
ING Secure Index Annuity
This is a summary only. Read the contract for complete details. Products/features may not be available in all states. State premium taxes may reduce the final value of the annuity. Withdrawals before age 59 1/2 may be subject to a 10% Federal penalty tax. Funded ERISA plans may not purchase this annuity. IRAs/qualified plans already receive tax-deferred treatment under the Internal Revenue Code. Your client should consider other annuity features. Annuities are not FDIC insured. Neither the Company nor its agent can provide tax or legal advice. Have your client consult an independent tax advisor or attorney. Compensation reduced at older ages. All guarantees are based upon the claims-paying ability of the insurer. The index does not include dividends paid on the underlying stocks.

19. ONE MOVING PART!

20. ING SECURE INDEX ANNUITY
SIMPLE DESIGN!
SHORT TERM!
STRONG GUARANTEES!
New!!!
SIMPLE,
STRAIGHT FORWARD &
EASY TO SELL!

21. Ask Me The Questions?
How do you calculate the Index growth? True point to point annual reset with NO averaging.
What is the Participation rate? 100% Guaranteed.
Does the product have a Rate cap? Yes, currently 7% on the TIS strategy, declared annually.
Is there a Spread on the product? No, Spread.
How Liquid is the product? Interest in first year, 10% per year after year 1, Full Accumulation value at death and at the end of 7 years.
What are the Minimum Guarantees? 3% on 100% of the Premium.
How many moving Parts? 1

22. ING Secure Index SIMPLE, STRAIGHT FORWARD & EASY TO SELL!
3 Accumulation Strategies!
Rate Guarantees!
Index Guarantees!
And Much More!
SIMPLE,
STRAIGHT FORWARD &
EASY TO SELL!

23. Traditional Index Strategy
Annual Reset Point-to-Point with a 7% Cap
Transfers into the TIS will Receive the Index Cap Currently in Effect for Transfers

24. Fixed Interest Strategy
One-Year Interest Guarantee will Earn a Stated Fixed Interest Rate Each Year
The Interest Rate may be Adjusted Annually After Year One
Transfers into the Fixed Rate will Receive the Fixed Rate in Effect for Transfers

25. Index Cap The Cap is Declared in Advance Will be Guaranteed for 1 Year
May Change Annually

26. Transfers Transfers are Permitted Between all Three Strategies
Full Accumulation Value of Each Strategy is Available for Transfer
Transfers are Available Each Year During the 30 Days Following Each Contract Anniversary
No Surrender Charges Apply
Transfers are Made on a LIFO Basis

27. Guarantees
3% on 100% of Premiums Received (Less any Withdrawals, Surrender Charges and Premium Taxes)
Remember, this is only the minimum guaranteed contract value. ING Secure Index Annuity has the potential to earn much more!

28. Product Specs ING Secure Index Annuity

29. Direct Participation Example...
$ % Loss = $50
$ % Gain = $75
$100 - $75 = 25% Loss

30. ING Secure Index Annuity 1 Year Reset vs. Direct Participation
500
400
850
850
300
700
200
100 1 2
Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr surrender

31. ING Secure Index Annuity 1 Year Reset w/ TIS Direct Participation
2 Year Totals
Net Gain = 0%
Interest Credited = 7%
Figures shown assume ending average index value of 700, minus beginning index value of 850, divided by beginning index value of 850, with a 7% current cap subject to change each year.
Minimum Guaranteed rate is 3% on 100% of premium
Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr surrender

32. Guaranteed Index Strategy
Annual Reset Point-to-Point with a 5% Cap
Transfers into the GIS will Receive the Index Cap Currently in Effect for Transfers
Minimum Guaranteed 2% Interest Increase Rate
Rates subject to change.

33. ING Secure Index 1 Year Reset w/ GIS Direct Participation
2 Year Totals
Net Gain = 0%
Interest Credited = 7.10%
Interest credited first year = 2%
Interest credited 2nd year = 5%.
Total over 2 years = 7.10%
Minimum Guaranteed rate is 3% on 100% of premium
Funded plans under ERISA may not be used with EIA’s or annuities with more than 10 yr surrender

34. ING SECURE INDEX ANNUITY An excellent alternative to CDs:
Guaranteed return! 3% on 100% of Premiums Received (Less any Withdrawals, Surrender Charges and Premium Taxes)
3% for 7 Years with the potential to earn MORE!!!
Source of retirement income
Tax deferral
10% Free withdrawals
Nursing Home Waiver (most states)
Ability to typically avoid probate
Ability to add premium at anytime
Annuities are not FDIC insured. IRAs/qualified plans are already tax deferred. Withdrawals before age 59 1/2 may result in 10% IRS penalty tax.

35. Big Benefits of Traditional Annuities CD Buyers Just Don’t Get
Tax Deferral
A CD would have to
earn 4.16% to equal
the return of a
3% annuity.
Plus…
Flexible Premiums
Nursing home waiver
Long-Term Guarantees
Income Options
Example assumes 28% Federal Income tax bracket. Annuities are not FDIC Insured. Annuity features not available in all states. IRAs/qualified plans are already tax deferred. Consider other annuity features.
Nursing home waiver (not available in MA or TX)

36. Primary Investment Goals of Baby Boomers
Following car wrecks and cancer, retirement planning is a top concern for Americans (Source: USA Today, 1999). As a result, baby boomers are seeking investment opportunities at an unparalleled rate.
As you can see, retirement savings is a priority for baby boomers as well as Americans in general. This creates an opportunity to focus your financial services practices to meet the planning needs of baby boomers providing them with options for their retirement savings, and providing you with sales opportunities.
Source: 1997 Baby Boomer Generation Poll

37. Annuities typically avoid probate process
Benefits and Advantages
Annuities typically avoid probate process
By naming a living beneficiary, assets can be directly transferred
In addition, while laws vary by state, generally annuities avoid the probate process. By naming a living beneficiary, assets may be directly transferred to beneficiaries.
Probate has three drawbacks that can be avoided with annuities:
1. Probate is public record; annuities increase privacy
2. Avoid the significant amount of time probate can take
3. Probate can be very expensive

38. Benefits and Advantages
Nursing Home Waiver
Allows Access to 100% of Accumulated Value for Nursing Home, Hospital, or Qualified Care Facility
Annuities provide for nursing home/medical waivers if the need for nursing home or medical care arises. Many variable annuity products allow for withdrawals from the contract for this purpose without surrender charges. In many cases, if the contract owner is confined to a qualified nursing home for 30 days after the purchase of the contract, all withdrawal charges can be waived giving 100% liquidity of assets.
Nursing home waiver (Not available in MA or TX)

39. That’s the Security and Power the ING Secure Index Annuity Offers Your Clients!!!

40. $250 Bonus On Each Sale Over $25,000
ING Secure Index Annuity
$250 Bonus
On Each Sale
Over $25,000
We reserve the right to alter or end incentive at any time. Applications must be submitted by 4/30/03, Cases issued by
6/30/03. $25,000 minimum premium to qualify for bonus. No limit on the amount of bonus you can earn. Only one bonus
per client. Bonuses will be paid at end of incentive period.