Dear Valued Agent,
After a thorough review of our Lifetime Income Benefit Rider (LIBR), American Equity has determined the need to adjust our LIBR payout factors. Effective July 30, 2015, the gender-based payout factors will decrease slightly while most of the joint payout factors will increase. We will also be increasing many joint payout factors on our Choice Series LIBR. The single life payout factors for the Choice Series LIBR will remain the same. Any application received by July 29, 2015 will receive the current payout factors. Our competitive analysis shows that even with these adjustments, American Equity will continue to be the industry leader in providing guaranteed lifetime income.
The links below connect to our most up-to-date Lifetime Income Benefit Rider Brochures and Disclosures, with the new payout factors listed.
Click For LIBR Sales Brochure and Disclosure
Click For Choice Series LIBR Sales Brochure and Disclosure
This decision is the result of a number of contributing conditions. For one, it has been a year since American Equity became the first indexed carrier on the market to offer gender-based payout factors on its Lifetime Income Benefit Rider. In order to remain within our pricing parameters while remaining competitive we are adjusting this innovative guaranteed lifetime income rider.
Another key component for this decision is the Valuation interest rate. This is the interest rate that insurance companies use to establish required reserves which support our long-term commitments, such as our industry-leading lifetime income benefit payments. These adjustments are vital in maintaining our commitment to provide principal-protected and income-generating products.
In looking ahead, American Equity and other insurance carriers will adopt new mortality tables in 2016. People are living longer; therefore carriers will be making adjustments to lower the guarantees. Although it is too early to predict what exactly those changes will entail, this does indicate the current rates are as good as they will ever be and this is an excellent time to capitalize on the opportunity. That means, now is the time to purchase guaranteed lifetime income.
Our sincere hope is that we continue to earn your business while remaining consistent and competitive in the market place. AEL is dedicated to remaining the industry leader in providing guaranteed lifetime income today, tomorrow, and into the next year and beyond. As always, please contact your Marketing Representative with any questions.
Thank you for your support and your business.
