Ameriprise 2008 Annual Report Download - page 39

Fixed Universal Life Insurance and Traditional Whole Life Insurance
Fixed universal life and traditional whole life insurance policies do not subject the policyholder to the investment risks
associated with variable universal life insurance.
RiverSource fixed universal life insurance products provide life insurance coverage and cash value that increases by a fixed
interest rate. The rate is periodically reset at the discretion of the issuing company subject to certain policy terms relative to
minimum interest crediting rates. RiverSource fixed universal life insurance policies in force provided guaranteed minimum
interest crediting rates ranging from 3.0% to 5.0% at December 31, 2008. We also offer traditional whole life insurance,
which combines a death benefit with a cash value that generally increases gradually over a period of years. We have sold very
little traditional whole life insurance in recent years. Whole life accounts for less than 1% of our insurance sales.
Term Life Insurance
Term life insurance provides a death benefit, but it does not build up cash value. The policyholder chooses the term of
coverage with guaranteed premiums at the time of issue. During the chosen term, we cannot raise premium rates even if
claims experience deteriorates. At the end of the chosen term, coverage may continue with higher premiums until the
maximum age is attained, or the policy expires with no value.
Disability Income Insurance
Disability income insurance provides monthly benefits to individuals who are unable to earn income either at their occupation
at time of disability (‘‘own occupation’’) or at any suitable occupation (‘‘any occupation’’) for premium payments that are
guaranteed not to change. Depending upon occupational and medical underwriting criteria, applicants for disability income
insurance can choose ‘‘own occupation’’ and ‘‘any occupation’’ coverage for varying benefit periods. In some states,
applicants may also choose various benefit provisions to help them integrate individual disability income insurance benefits
with social security or similar benefit plans and to help them protect their disability income insurance benefits from the risk of
inflation. For the nine months ended September 30, 2008, we were ranked as the eighth largest provider of individual
(non-cancellable) disability income insurance based on premiums (according to LIMRA International).
Long Term Care Insurance
As of December 31, 2002, the RiverSource Life companies discontinued underwriting long term care insurance. However, our
branded financial advisors sell long term care insurance issued by other companies, including John Hancock Life Insurance
Company and Genworth Life Insurance Company.
RiverSource Life and RiverSource Life of NY began in 2004 to file for approval to implement rate increases on most of their
existing blocks of nursing home-only indemnity long term care insurance policies. Implementation of these rate increases
began in early 2005 and continues. We have so far received approval for some or all requested increases in 50 states, with an
average approved cumulative rate increase of 44.7% of premium on all such policies where an increase was requested.
RiverSource Life and RiverSource Life of NY began in 2007 to file for approval to implement rate increases on most of their
existing blocks of comprehensive reimbursement long term care insurance policies. Implementation of these rate increases
began in late 2007 and continues. We have so far received approval for some or all requested increases in 46 states, with an
average approved cumulative rate increase of 15.8% of premium on all such policies where an increase was requested.
Additional rate increases may be sought with respect to these and other existing blocks of long term care insurance policies, in
each case subject to regulatory approval.
Ameriprise Auto & Home Insurance Products
We offer personal auto, home and excess personal liability insurance products through IDS Property Casualty and its
subsidiary, Ameriprise Insurance Company (the ‘‘Property Casualty companies’’). Our Property Casualty companies provide
personal auto, home and liability coverage to clients in 42 states and the District of Columbia.
Distribution and Marketing Channels
We offer the insurance products of our RiverSource Life companies almost exclusively through our branded financial advisors.
Our branded franchisee advisors and branded advisors employed by AFSI offer insurance products issued predominantly by
the RiverSource Life companies. In limited circumstances in which we do not offer comparable products, or based on risk
rating or policy size, our branded advisors may offer insurance products of unaffiliated carriers. We also sell RiverSource Life
insurance products through the AAC.
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