ANICO Value Lock?? Anyone Using It?

[scagnt83]

I was looking at a rate sheet for IAs from an IMO.

It had the ANICO ValueLock 10 on it and I noticed it had no cap and no indexing choices.

So I googled it and found a summary sheet on it.


It allows you to lock in the Index gain on any day you choose in the 10 year period....

The catch is that after the lock in you are restricted to some type of a fixed rate....

It has no cap, no restrictions on when you can lock in your gains, and if no lock in is chosen it treats the end of the 10 year term as the lock in date.


I am having trouble getting my head around this statement in bold that speaks to the fixed rate after lock-in:

"If you elect a Lock-In, interest credited after that date is not related to any index gain that occurs after the Lock-In date.

After the Lock-In date, Interest is credited at a fixed rate. The fixed rate pays the remainder of the interest credited to any Index gain, as of the Lock-In date, plus additional interest. The fixed rate of interest is paid on the entire Annuity Value as of the Lock-In date until the end of the Indexing Term."


What exactly does that mean????

The current participation rate is 100% and is locked in for all 10 years... so how would there be a remainder? Maybe this is just for when there is less than 100% participation for future contracts? idk...

Has anyone sold this product before? Has anyone else looked at this product before?
Does anyone know more about how the fixed rate is credited?

It seems interesting, but IDK....

Here is a link to the summary I found, I just googled it.

 

[DHK]

I'd go to the source for the information.

http://www.img.anicoweb.com/

http://www.img.anicoweb.com/resources/forms/pgi_ip_anico.pdf

 

[padthaiforlunch]

My understanding is it credits 100% of the monthly average at the lock. Then that amount earns minimal interest for the duration of the term. IMO, too much prognostication for the typical client.

 

[Franz Kafka]

Each year your statement will show what the lock in rate will be. If you like that rate, then you can lock in on that rate for the rest of the term. If you think indexing will get better you don't have to lock in any rate until the end of the term.

If you want to know how they arrive at the lock in rate, let me know - I may have to charge you.

 

[scagnt83]

I'd go to the source for the information.

http://www.img.anicoweb.com/

http://www.img.anicoweb.com/resources/forms/pgi_ip_anico.pdf

Ok, I got some more info from your first link.... I wont even get started on the second...


It seems that you can lock it in at any month, but this is were they get you (and is the issue that I put in bold):
Say you lock it in at year 5 and its a credit of a $50K gain.
Since year 5 is half of the contract term; they take half of the $50K and credit the policy; the other half is distributed on a yearly basis for the rest of the term of the contract and it gives you a small interest rate to boot....


Does anyone here actually use this product??

It wouldnt be so bad if they would credit the full amount whenever you locked it in..... theres always a catch I guess..

 

[Newby]

So if you don't lock in it's basically at 10 year point to point with no fees and 100% participation?

 

[VolAgent]

So if you don't lock in it's basically at 10 year point to point with no fees and 100% participation?

Good point. A nice replacement for many GMABs that only return you to the starting point.

 

[scagnt83]

So if you don't lock in it's basically at 10 year point to point with no fees and 100% participation?

Almost.

10 year monthly average with no fees and currently 100% participation.

I read that they can change the participation rate for new issues, but its currently at 100%.

 

[briko3]

I'm not sure if I remember this policy correctly, but I think the interest after the lock in changes year to year but can't go under 1%. Not a bad product and the comission was 10% when I last looked at it.

 

[padthaiforlunch]

Gmab? Que es?

Good point. A nice replacement for many GMABs that only return you to the starting point.