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ameritas Advisor Services A Division of Ameritas Life Insurance Corp.

The No-Load Insurance Pioneer

Advisor GUIDE No Load Variable Annuities

PF 499 5/09 Advisor Use only. Not for Use With Clients.

No Load Annuities Discover the Power of A No Load Variable Annuity

Help your clients plan for their retirement by using no load variable annuities to meet their tax-deferred accumulation and guaranteed income distribution needs.

The Retirement Income Market: A Significant Growth Opportunity

As the largest demographic wave in our country’s history transitions into retirement, serving their needs for income generation and principal protection will be a significant emphasis for advisors. The need is not small. Consumers in the 55 to 64 age group, those near or transitioning into retirement, will be the fastest growing population segment over the next five years, growing at more than four times the overall population growth rate.1 Most retirees will need to depend on liquidation of their assets to provide retirement income. No load variable annuities can help. They are long-term investment vehicles designed to provide tax-deferred accumulation and a customized flow of retirement income. For many consumers variable annuities are already part of the solution. In fact, as of December 31, 2008 the variable annuity industry represented over $1.1 trillion in assets. Total variable annuity premium flows reached $155 billion and net flows were $23 billion.2 By using no load variable annuities you can help your clients prepare for retirement and have the opportunity to capture assets under your management.

1 U.S. Census Bureau 2 NAVA Release 2009

Advisor Use only. Not for Use With Clients.

Who is right for an annuity? • Clients who have maxed out on their qualified plans and want to save more. • Clients whose accounts are actively managed and wish to defer the tax consequences. • Clients who already own an annuity that is nearing the end of the surrender period. Please keep in mind that other annuities may have surrender charges, which may be substantial. Carefully evaluate the existing annuity’s expenses to assure any recommended replacement is suitable.

Accumulation Potential Help your clients save more to meet their growing retirement income needs.

Longer life expectancies and shrinking employerprovided retirement benefits mean that your clients need the tax advantage of other retirement savings vehicles. Annuities are tax deferred, which means they have the potential to accumulate more than taxable investments.

Accumulating Retirement Assets

This example shows how powerful tax deferral can be. A single tax-deferred investment of $75,000 earning 8% gross annual interest over 30 years grows to more than $750,000. Even after taxes of 28% are paid upon withdrawal of the lump sum, the amount received is more than $560,000—much more than the $400,000 earned on a taxable investment, which paid 28% taxes annually on average.

And we all know we’re going to have to provide at least some of our own retirement income. In fact, Americans who save expect 62% of their retirement income to come from personal savings and investments.2 Have your clients saved enough?

Actual returns will vary. This chart does not reflect factors which would reduce the performance such as insurance expenses currently 0.55% (guaranteed max 0.80%), annual policy fee of $25 (maximum $40) which is waived for account values over $50,000 or investment option fees (which vary by investment option). Lower tax rates on capital gains and dividends could make the taxable investment returns more favorable, thereby reducing the difference in performance.

There’s no doubt we all need to save as much as possible for retirement. Longer life expectancies mean we’re going to spend more time in retirement. A couple aged 65 today has a 50% chance that one spouse will survive until age 92 and a 25% probability that one spouse will reach age 97.1 Do your clients have enough assets to provide retirement income for 30 years or more?

No load variable annuities can help make sure your clients have what they’ll need for retirement. With no load variable annuities your clients can generally make unlimited contributions into a large, diverse lineup of investment options managed by top names in the mutual fund industry. Any growth is tax deferred, which helps your clients keep more of what they earn.

Hypothetical Tax-deferred Accumulation Example $0






Tax-Deferred Tax-Deferred, After Tax Taxable




$754,700 $564,384


Consider your personal investment horizon and tax rate, both current and anticipated, when making an investment decision. Changes in tax rates and tax treatment of investment earnings may further impact the results of this comparison. 1 Annuity 2000 Mortality Table, Society of Actuaries 2 2006 Retirement Confidence Survey

Advisor Use only. Not for Use With Clients.

Investments Manage your clients’ assets with diverse fund choices and tax-free transfers.

You and your clients can choose from a broad range of investment options managed by a variety of top fund management companies.

Broad Range of Investment Options

Choose from a wide variety of investment options managed by well-known fund families to build your asset allocation models for your clients. These options offer a broad range of choices across asset categories and risk levels. No load variable annuities provide quick, convenient and tax-free transfers among investment options (even between fund families). Tax-free transfers can give you more freedom to manage your clients’ assets. Check out the list below of the fund management companies. See our investment options brochures, prospectuses, or our website for the complete list of investment options. Investment options carry their own expenses.

Ameritas No-Load Variable Annuity • Vanguard® VIF • AIM V.I. Series I • American Century VP • Calvert Variable Series* • DWS VS I • DWS VS II • Fidelity ® VIP • Franklin Templeton • MFS® VIT

• Neuberger Berman AMT • PIMCO VIT • Rydex • T. Rowe Price • Third Avenue • UIF • Summit Mutual Funds, Inc.*

We provide investment related tools to make it easier to manage the assets inside an annuity. • Online trading—With proper authorization, you can make online trades for your clients around the clock. You can reallocate the money currently in the annuity and redirect future contributions within a secure transaction tool. • Portfolio rebalancing—Our free systematic portfolio rebalancing automatically reallocates accumulation values in each investment option periodically to maintain the original allocation mix. • Earnings sweep—This free tool periodically reallocates the earnings (not the original principal amount placed in the investment options). This program preserves the original investment allocation and may help maximize your earnings potential in higher risk investments. • Dollar cost averaging—With this free tool, each month a predetermined amount or percentage is automatically transferred from the money market or fixed account (if available) to the investment options selected. Dollar cost averaging does not assure a profit or protect against a loss.

Ameritas Advisor Select No Load Variable Annuity • ProFund Advisors LLC Advisor Use only. Not for Use With Clients.

*Ameritas affiliate.

Low Costs Save more when high costs aren’t holding down accumulation values.

Even with the power of tax-deferred accumulation and quality investment options, high insurance costs can erode the accumulation potential of a variable annuity. No load annuities are designed to keep those costs down.

Lower Costs Add Up to Big Savings

No load annuities tend to have lower costs when compared to industry averages. Generally, there are three types of fees for a variable annuity: • Insurance expenses pay for costs relating to the development and sale of the product. They also help insure against higher-than-expected mortality costs. Because n0 load annuities are designed for fee-only and fee-based advisors, they tend to have lower M&E and administrative charges. • Investment option fees pay for investment option advisor or subadvisor management advice and the costs of running the investment option. Fees vary by investment option. • Withdrawal or surrender charges are a percentage of the value of the annuity that is forfeited to the insurance company when a contract is cancelled. No load annuities do not have withdrawal charges. Any gains are taxed as ordinary income and withdrawals prior to age 591⁄2 can result in additional tax penalties. Even small differences in fees can make a big difference in potential growth—especially over time. Compare two hypothetical investments. Let’s say you invested $100,000 and it earned 8% gross interest each year for 30 years. With Investment A, insurance expenses (0.55%) and investment option expenses (0.43%)* would be deducted and your investment would grow to more than $750,000. With insurance and investment options expenses totaling the industry average of 2.28%, Investment B would grow to just more than $530,000. In this example, lower expenses helped you accumulate over $234,970 more.

Advisor Use only. Not for Use With Clients.

Hypothetical Accumulation Example Investment A $0


   Investment B $200,000







$765,506 $530,536

* Weighted Average fund expense assumes a Fund Management fee (total fund operating expense including investment management fee and other fund expenses) based on the ratio of each of the subaccounts assets including the fixed account to all portfolios as of December 31, 2008.

Hypothetical example is used for illustrative purposes only. Actual rates of return will vary over time, particularly for a long-term investment like an annuity. But it does illustrate the difference lower expenses can make.

Income Consider these options from a product designed to provide guaranteed income distribution.

As your clients retire or near retirement, their goals will switch from accumulating retirement assets to providing a predictable, lasting retirement income. One of the key concerns your clients will have at this stage is “will my money last?”

Distributing Retirement Income

Because a no load variable annuity is designed for retirement income savings and distribution, it provides a variety of options for providing income, including options that help provide a reassuring solution to a key objective: guaranteed lifetime income. This guaranteed income is based on the claims-paying ability of the insurance company. That is why it is critical to trust your clients’ retirement assets to financially strong and stable insurance companies. Guarantees do not apply to the performance of the underlying investment options available with this product. Carefully consider each of the options for providing retirement income. Each has its own advantages and disadvantages. The Ameritas salaried professionals can provide unbiased assistance in deciding which payout might make the most sense for your clients. Withdrawals—Your clients can simply withdraw money from their annuity. They can arrange for automatic withdrawals to be distributed on a regular basis. The advantage of this option is that your clients remain in complete control of their annuity. But there is no guarantee your clients’ assets will last a lifetime.

Guaranteed Lifetime Withdrawal Benefit (GLWB)— This rider is available on the Ameritas No-Load Variable Annuity (Form 6150) for an additional charge. It can give your clients guaranteed retirement income for life without giving up control of their retirement assets. Unlike some lifetime benefit features, there are no investment restrictions, other than those in the base policy, and no charge for this rider until and unless it is activated. With the GLWB, the Ameritas No-Load Variable Annuity will help you stay competitive in today’s evolving marketplace. The GLWB includes the “most in-demand” features you may have heard about: • The flexibility for you and your client to decide when to activate the rider and there’s no charge until you do. • Flexible withdrawal access during accumulation and withdrawal phases • Age banded withdrawal factors – from 4.00% to 7.00% • A lifetime withdrawal amount that can increase based on potential account value growth or additional deposits – even after withdrawals begin. Remember, all of this is available on one of the lowest cost no load variable annuities in the market. Annuitization—With this option, clients give control of their annuity investments to the insurance company and convert it to a regular stream of income. The following chart gives you an idea of some of the annuitization options that are available. Once again, it is important to remember that all retirement income guarantees are based on the ability of the insurance company to continue income payments. So be sure to trust your clients’ assets to a company you can count on.

Advisor Use only. Not for Use With Clients.

Guaranteed Income Annuitization Options

Help your clients receive their retirement income — when and how they need it.

Payout Option

How Long Income Lasts



Lifetime Income

Annuitant’s lifetime.

The highest amount of income available. Income as long as annuitant lives.

When annuitant dies the income payments stop, even if death occurs shortly after payments begin, which means the full value of the annuity may not be paid.

Joint and Last Survivor Lifetime

Income lasts for the annuitant’s lifetime and the lifetime of the joint annuitants.

Income as long as annuitant and joint annuitants live.

Each payment less than with single life alternatives (although they can last longer). No payment to beneficiary upon death of both annuitants.

Designated Amount

Income of a specified amount paid in monthly installments over at least a five-year period.

Amount of income known. Beneficiary will receive income if annuitant dies before proceeds have been paid.

No lifetime guarantee, so the client may outlive the income.

Designated Period

The owner chooses how long income payments will last.

Annuitant knows how long they will receive income. They are assured of receiving the full value of the investment over the selected time.

No lifetime guarantee, so the client may outlive the income, since all of the assets will be gone at the end of the period.

Interest Payment

Annuitant’s lifetime.

Income as long as annuitant lives. Proceeds remain intact, on deposit with the insurance company and are payable to the beneficiary at the owner’s death.

Each income payment will be smaller than with all other options.

Advisor Use only. Not for Use With Clients.

Advisor Services Determine the level of support that’s right for your practice.

Choosing a partner to help meet your clients’ insurance and annuity needs is an important decision. Take the time to learn more about Ameritas Advisor Services.

Why Ameritas Advisor Services?

When you partner with Ameritas Advisor Services, a division of Ameritas Life Insurance Corp., you don’t need to refer your clients’ insurance needs to another financial professional. You and your clients will work directly with us. We don’t manage assets so we don’t compete with you for clients. You keep the client loyalty and the potential increase in assets under management. As a valuable resource to you, we can provide: • Downloads to many portfolio management systems. • Ability to link to brokerage accounts on well-known platforms. • Online access to policy information and online trading. • Policy comparison, application assistance, marketing support and more. You decide the level of support you need and how you want to work with us. You’re in control. You don’t have to have any special insurance training or licenses to work with us. We can provide a full level of service. Our representatives are salaried, licensed professionals who are available both before and after the purchase to provide any assistance you need.

Who We Are

Ameritas Life Insurance Corp. pioneered the concept of no load life insurance more than 20 years ago and has been serving the fee only advisor community ever since. As you approach the critical task of selecting an annuity partner for your practice, it’s important to consider value, service and company stability. • Value—Our Advisor Series of no load annuity products are designed to have the potential to deliver maximum value with policies unburdened by sales loads and commissions. Advisor Use only. Not for Use With Clients.

• Service—Customize the level of support you want from our experienced, professional staff. • Company Stability—The foundation of our organization is our position of financial strength and integrity. That strength is leveraged to earn the trust of the fee only and fee based advisor community and their customers whom we have been servicing for over two decades.

What Rating Agencies are Saying A.M. Best Company: A (Excellent) rating for financial strength and operating performance. This is the third highest of Best’s 15 ratings.* Standard & Poor’s: AA- (Very Strong) for insurer financial strength. This is the fourth highest of S&P’s 21 ratings.* *Group ratings for Ameritas Life Insurance Corp., Acacia Life Insurance Company, First Ameritas Life Insurance Corp. of New York and The Union Central Life Insurance Company. The financial strength of Ameritas Life Insurance Corp. has no bearing on the performance of variable product subaccount investment options.

Frequently Asked Questions Advisor support is just a phone call away.

You can rely on the salaried professionals at Ameritas Advisor Services for answers to your variable annuity questions.

How does my client purchase an annuity? To get started, after your client has reviewed the product and funds prospectuses, simply have them complete the application (and applicable forms). If transferring funds from an existing annuity, it is not necessary to send money with the application, but the owner will need to enclose a completed 1035 Exchange form with the application. Please note, investment is accepted through some qualified plans. However, special forms are required and additional limitations may apply. Please call before your client submits an application as part of a qualified plan so that we may ensure all of the proper forms are completed. Also, keep in mind, there may be penalties and withdrawal charges, which may be substantial, associated with an early withdrawal from an existing annuity. How long does it take to issue the new annuity with Ameritas? Once we receive the check and completed application, the annuity will be issued within two business days. Payments made by rolling over or exchanging another annuity may take several weeks depending on the processing time at the other insurance company to execute the exchange or rollover. How do I view my clients’ account values? If your client has completed the necessary authorization form, you will be able to view all of your clients’ policies on line. You’ll be asked to sign in with a user id and password. At anytime, if you have any questions, you can contact Ameritas Advisor Services’ salaried associates for assistance.

Advisor Use only. Not for Use With Clients.

What are the ticker symbols for the funds in the annuity? I’d like to follow the performance. Although they may seem similar, the investment options in the annuity are not mutual funds so there are no ticker symbols. However, you can view daily updated investment option performance on our website. Do I get an annuity statement? Yes. Each calendar quarter a statement is sent to you and your client. A summary annual statement is also delivered each contract year. You’ll also receive a confirmation statement any time your client invests more money in their annuity or anytime a trade is made within the annuity. Can my client borrow from the annuity? No, annuities generally do not have loan provisions. The owner can access part of the value of the annuity through partial withdrawals and remember, there are no withdrawal charges. Any gains withdrawn are taxed as ordinary income and withdrawals prior to age 591⁄2 may incur additional penalties. IRAs have minimum required distributions starting at age 70 1⁄2. Do annuities have similar requirements? If the annuity is part of an IRA, the same requirements apply. However, if the annuity is not part of an IRA, no IRS distribution rules apply.

THE AMERITAS Features one of the industry’s lowest current expense charges, NO-LOAD VARIABLE ANNUITY a range of investment options and a guaranteed lifetime withdrawal benefit.

Highlights • No Load—Lower insurance fees means more money can be put to work for your client. Insurance expenses 60% less than the average annuity.*

Facts at a Glance Issue Age



Minimum Initial: $2,000 Maximum: $1 million (higher amounts require prior approval) Additional: $250 Automatic Bank Withdrawal: $50 25% maximum on premium allocation to the Fixed Account.

Sales Load


• Trusted Investment Fund Managers—Including Vanguard, Fidelity, Calvert, PIMCO, Rydex, and Third Avenue.

Withdrawal Charge


M&E Fee

0.55% current annually, (max 0.80%); 0% from the fixed account.

• Diverse Investment Options—Covering a full range of asset classes.

Annual Policy Fee

$25 ($40 Guaranteed) Waived over $50,000 policy value.

• No Withdrawal Charge—There’s no penalty for canceling the policy at any time, which gives your clients flexibility. (Gains taxed as ordinary income and IRS penalties may apply to withdrawals prior to age 59½.)

• Excellent Rollover Opportunities—Compare the cost of an existing annuity. You may be able to lower your client’s variable annuity insurance expenses by 60% while bringing more assets under your management.*

*According to the Morningstar® Annuity Research Center 2008 Industry Expense Report.


Guaranteed Lifetime Withdrawal Benefit. (charges apply only if rider activated after owner age 50) Current/Guaranteed Single 0.95% Joint Spousal 1.10%

(Guarantees based on the claims-paying ability of the insurer.)

Transfers Among Options

No limit on number of transfers. Contractually, a $10 fee may apply after 15 transfers within a policy year. (There may be restrictions on excessive trading.)

Fixed Account Transfers

Transfers out of the fixed account are limited to once a year and the greater of (1) 25% of the fixed account value, (2) the greatest amount of any similar transfer during the previous 13 months or (3) $1,000. Transfers of monies into the Fixed Account are limited to 10% of the total value of the subaccounts as of the most recent policy anniversary.

Standard Guaranteed Death Benefit

If the owner dies prior to annuitization, the designated beneficiary is paid the greater of the policy value or total premiums paid, less a proportional reduction for partial withdrawals.

Partial Withdrawals

No withdrawal charge. Must withdraw at least $250 and leave at least $1,000 in annuity.

Payout Options

Interest Payment, Designated Amount Annuity, Designated Period Annuity, Lifetime Income Annuity, Joint and Last Survivor Lifetime Income Annuity, and Lump Sum.

State Approvals

Not available in NY.

Advisor Use only. Not for Use With Clients.

AMERITAS ADVISOR SELECT Features investment options from ProFund Advisors LLC — NO LOAD VARIABLE ANNUITY especially for the active investor.

Highlights • Unlimited, Online Group Trading—Take advantage of the trading convenience and flexibility of the 22 funds managed by ProFund Advisors LLC.1 • No Load and No Annual Fee—M&E and Investment Option Expenses are the only non-transaction fees and charges. Insurance expenses are 35% lower than the average annuity,2 which means more money can be put to work for your client. • No Withdrawal Charges—There’s no penalty for canceling the policy at any time, which gives your clients flexibility. (Gains taxed as ordinary income and IRS penalties may apply to withdrawals prior to age 59½.) • Trade Until 3:45 ET—Broad Index Funds can be traded until 3:45 ET and Sectors and High Yield Access until 3:20 ET.

1 These investment options are designed specifically for active investors who frequently reallocate portfolio assets in reaction to changing marketing conditions. These funds may not be suitable for all investors because of the aggressive techniques they employ. The use of active investment strategies can decrease performance and increase expenses. You’ll find the investment options you need if your goal is to try to match or exceed the performance of an index, to invest in inverse investment options, to focus on a specific market sector and more. Portfolio management by ProFund Advisors LLC through subaccounts of Ameritas Life Insurance Corp., separate account LLVA. Ameritas Invesment Corp. and ProFund Advisors LLC are not affiliates.

Facts at a Glance Issue Age

0-85, Joint Annuitants/Joint Owners Available


Minimum Initial: $10,000 Additional: $250 Automatic Bank Withdrawal: $50 Maximum: $5 million (higher amounts may require prior approval)

Sales Load


Withdrawal Charge


M&E Charge

0.90%, guaranteed never to increase

Policy Charge



Currently there is no limit on the number of transfers. More than 15 transfers per policy year may incur a $10 fee per transfer. Minimum transfer is $250. Must maintain investment option balance of $250. Group trading: Maximum number of policies per trade list is 50.

Guaranteed Death Benefit

If death occurs prior to age 70, the designated beneficiary is paid the greater of the policy value or premiums paid less a proportional reduction for partial withdrawals. If death occurs after age 69, the death benefit is equal to the policy value. Guarantee is based on the claims-paying ability of the insurer.


No charge. Minimum: $250 ($1,000 must remain in the account). Withdrawals are irrevocable and are taxed as ordinary income. There is a 10% IRS penalty tax for withdrawals prior to age 591⁄2. Systematic withdrawals are available on request.

State Approvals

Not available in NY.

2 According to the Morningstar ® Annuity Research Center 2008 Industry Expense Report.

Advisor Use only. Not for Use With Clients.

800.552.3553 Ameritas Advisor Services Ameritas Life Insurance Corp. P.O. 81889 Lincoln, NE 68501-1889

The Ameritas No-Load Variable Annuity (form 6150), Guaranteed Lifetime Withdrawal Benefit Rider (form 4901) and Ameritas Advisor Select No Load Variable Annuity (form 6151) are issued by Ameritas Life Insurance Corp. and underwritten by affiliate Ameritas Investment Corp. Variable annuities are suitable for long-term investing, particularly for retirement, and are subject to investment risk, including possible loss of principal. Policy features may vary and may not be available in all states.

Before investing, carefully consider the investment objectives, risks, charges and expenses and other important information about the policy issuer and underlying investment options. This information can be found in the policy and investment option prospectuses. Prospectuses are available by calling Ameritas Advisor Services at 800-552-3553 or visiting or Please read the prospectuses carefully before investing.

Ameritas Advisor Services Brochure PF379  

Ameritas Advisor Brochure PF379

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