Voya 2014 Annual Report Download - page 47

of approximately 170,000 term life insurance policies, representing approximately $100 billion of life insurance
in-force and backed by over $1.3 billion in statutory reserves, to a third-party reinsurer.
In addition, we have completed the introduction of re-priced offerings for term and universal life products,
both of which are high capital consuming products. We expect these actions to slow the sale of the high-capital
products while we simultaneously grow sales in the low capital, cash accumulation and current assumption type
products.
Products and Services
Our Individual Life segment currently offers products that include UL, IUL, variable universal life and term
life, insurance. These offerings are designed to address customer needs for death benefit protection, tax-
advantaged wealth transfer and accumulation, premium financing, business planning, executive benefits and
supplemental retirement income. We believe that our combination of product solutions is well-suited for the
middle-market through the mass-affluent and makes us a full service provider to our independent distribution
partners.
UL. Accumulation-focused universal life products feature the opportunity to build tax-deferred cash value
that can be accessed by consumers via loans and withdrawals for future needs. This money grows income tax-
deferred, meaning no federal or state income taxes apply while it accumulates. The compounding tax-deferred
interest can be an attractive feature to policyholders. These products help policyholders meet longer-range goals
like college funding, supplemental retirement income and leaving a legacy for heirs. Other features include
flexible premium payments that can change to meet policyholders’ evolving financial needs.
IUL. For customers looking for an opportunity for a higher return in a low rate environment, we offer IUL
products, which, along with death benefit protection, provide customers the opportunity for growth through
potentially stronger surrender values than traditional UL products. These IUL products link to both fixed and
indexed crediting strategies and offer protection from downside risk through a minimum interest guarantee,
helping customers who seek solutions that would be advantageous for providing supplemental retirement income,
payment of college costs or executive benefits. One of the IUL products we offer provides up to a lifetime death
benefit guarantee coupled with significant long term surrender value potential through the ability to earn an index
credit linked, in part, to any increases in the S&P 500. In October 2012, we announced the suspension of sales of
this product for No-Lapse Guarantee UL products. In October 2013, we introduced a re-priced Index Universal
Life-Guaranteed Death Benefit (“IUL-GDB”) which focuses on providing a death benefit for the customer
wanting a guarantee but also wanting cash value for future flexibility. We also have a unique global IUL product
that links to multiple international indices, such as the S&P 500, Hang Seng Index or Euro Stoxx 50. Indexed
products are the fastest growing new product segment and are a major focus of our product and distribution effort
as they are less capital intensive and provide attractive returns.
Variable Universal Life. For customers seeking greater growth potential and more control over their
investments, we offer an individual variable universal life insurance product designed to provide long-term cash
accumulation potential with the ability to add optional riders that provide guarantees and more flexibility. We
offer customers the ability to choose from individual variable investment options, which range from conservative
to aggressive stock and bond investments managed by respected investment management firms in the industry or
from diverse asset allocation solutions designed to match a customer’s risk tolerance.
No-Lapse Guarantee UL. No-lapse guarantee universal life products utilize a secondary guarantee to
continue to offer a lifetime death benefit guarantee even if the account value has turned negative. Cash
accumulation is minimized in these products. We suspended sale of these products in 2012.
Term Life. Term life insurance provides basic, economical life insurance for consumers, and we market term
life insurance primarily on competitive pricing and service models. Our term products, basic life and return-of-
premium, offer flexible coverage for periods spanning ten to thirty years. Our term model provides us with added
scale for expense coverage and opportunity for mortality profit.
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