American Equity Investment Life Annuity Product Changes
This post will explain American Equity Investment Life Annuity Product Changes. A fixed indexed annuity is a contract between you and American Equity. In this contract the potential interest earned is linked to an external equity or bond index. In a fixed indexed annuity:
- The values of an index can vary daily and certainly are not predictable.
- This Contract is backed by American Equity.
- In brief, clients do not purchase shares of stocks, bonds or any indexes.
Today’s low interest rate environment is challenging the retirement savings business to emphasize the principal protecting and income features that fixed indexed annuities provide. High quality investments, responsible income rider design and pricing integrity are the foundation of American Equity’s commitment to safety and guarantees. In order for American Equity to continue investing clients’ premiums in high credit quality assets, rates on many of their products will be reduced as of March 3, 2015.
In addition, commission rates changed by 0.5% as of Friday, February 27th at 1pm CST. In fact, you can see the changes on the American Equity site for current commission rates.
American Equity continues to be an industry leader in providing guaranteed lifetime income for your clients. By the same token, there will be no changes to the Lifetime Income Benefit Rider.