American Equity – Foundation Gold Enhancements

Guaranteed Income Increase and No-Fee LIBR is BACK on the Foundation Gold Effective October 2, 2017

American Equity is pleased to announce Foundation Gold product updates effective October 2, 2017. We added additional Lifetime Income Benefit Rider (LIBR) options as well as a Market Value Adjustment (MVA) to the Foundation Gold.

To receive the current Foundation Gold without MVA, applications must be received by 4:45 p.m. CST Monday, October 9, 2017. Any pending business wishing to receive the new LIBR options and rates must submit a new disclosure (#1148-D dated 10.2.17). No adjustments will be made to previously issued contracts. See options and rates outlined below.

Lifetime Income Rider Benefit (LIBR) Options on the Foundation Gold
Effective immediately, the following LIBR options are available on American Equity’s Foundation Gold for issue ages 50 and above. Payout factors are also changing for the Foundation Gold LIBR. Please refer to the product brochure for details. An updated disclosure (#1148-D dated 10.2.17) must be submitted to receive the new LIBR options and increased rates listed below.

No-Fee LIBR

* 3.0% simple interest

* 10 year accumulation period

 

LIBR

* 7.0% simple interest

* 0.90% rider fee

* 10 year accumulation period

 

LIBR with Wellbeing Benefit (not available in DE)

* 7.0% simple interest

* 1.0% rider fee

* 10 year accumulation period

 

LIBR with Indexing Income (not available in DE)

* Current multiplier is 400%

* IAV Multiplier is set at issue and guaranteed for first contract year

* Interest credited is calculated on a compound interest basis

* 0.90% rider fee

 

Please note: The no LIBR option on the Foundation Gold is still available. Crediting rates may be higher in contracts that do not elect a lifetime income rider. An election must be made at time of issue.

Foundation Gold rates are being adjusted regardless of whether or not the LIBR is selected. Pending business will be issued with the current rates unless a new disclosure is submitted. Please refer to the grid below for rate information.

 

Foundation Gold CURRENT RATES NEW RATES WITH MVA AND LIBR NEW RATES WITH MVA AND NO LIBR
INTEREST CREDITING METHODS Fixed Value 1.00% 1.15% 1.30%
Annual Pt to Pt w/Cap 2.00% 2.25% 2.50%
Annual Pt to Pt w/PR 15% 15% 20%
Annual Monthly Avg w/Cap 2.00% 2.25% 2.50%
Annual Monthly Avg w/PR 25% 25% 30%
Monthly Pt to Pt w/Cap 1.00% 1.20% 1.30%
Performance Trigger 1.75% 2.00% 2.25%
10 Yr. U.S. Treasury Bond w/Cap 2.00% 2.25% 2.50%
Volatility Control Index w/Spread 4.00% 3.75% 3.50%
Bond Yield with Cap and Spread 4.65% CAP
2.00% SPREAD
5.15% CAP
2.00% SPREAD
5.65% CAP
2.00% SPREAD

 

Click Here to Access Foundation Gold Brochures

Use ReadyApp, American Equity’s E-application service, to submit your next piece of business. ReadyApp is compatible with all devices, up-to-date on current forms and can help streamline your application submission. Click Here to get started!

 

The Foundation Gold product updates are not available in CA.

Posted in Bulletins.