ANICO Value Lock?? Anyone Using It?

[VolAgent]

Gmab? Que es?

Guaranteed Minimum Accumulation Benefit. In 10 years if account value is below premium, restore account value to initial premium. Or, in 20 years if account value is less than twice initial premium, set account value to twice initial premium. Most will let you set the lock-in date annually. So you have to go 10 or 20 years from that point.

For instance, invest 500k today. In 2015 its now 700k, lock in that value. In 2025 if the account value is less than 700k, the company will reset the account value to 700k. Or if I can wait until 2035, the company guarantees to set the account value to 1.4 MM. The account value moves about as usual during that time, and if I don't wait the required number of years, I generally paid the rider fee for nothing. Usually a fairly cheap rider on a VA, but I never saw much value in it.

 

[Franz Kafka]

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....

Not quite. See if this helps.

View attachment Value Lock 10 1 pg Explanation.pdf

 

[ScottLFB]

Just like all the other FIAs out there, someone has to be selling it or ANICO wouldn't keep it on the books as an option.. But, to answer your original question No I haven't seen an Agent successfully sell it.. Basically for the same reason as you guys are talking about, 1) it's a little complicated for the Agent to understand and 2) Pitching it to the client and having them understand it is another big hurdle..

On top of all that, you have a 65-70yr old client calling you everything month wondering if it's a good time to "lock in my rate"

 

[scagnt83]

Not quite. See if this helps.

View attachment 573

Did you not read your own attachment???

They showed the lock in at year 7; they took 70% and credited it to the policy, the other 30% was credited over the remaining 3 years (it said this basically word for word), plus it gives you a small 2% interest rate...... thats exactly what I said except I used year 5 as an example..... although I did not know the fixed rate was 2%... not bad

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....

 

[Franz Kafka]

Did you not read your own attachment???

They showed the lock in at year 7; they took 70% and credited it to the policy, the other 30% was credited over the remaining 3 years (it said this basically word for word), plus it gives you a small 2% interest rate...... thats exactly what I said except I used year 5 as an example..... although I did not know the fixed rate was 2%... not bad

What you are locking in is not the account value but the average interest rate. (Per attachment) 90K was what the contract would have earned at the end of 10 years based on the rate that was locked in at year 7. That's why only 70% of the 90K is getting paid on the year 7.

 

[Norwayguy]

Just like all the other FIAs out there, someone has to be selling it or ANICO wouldn't keep it on the books as an option.. But, to answer your original question No I haven't seen an Agent successfully sell it.. Basically for the same reason as you guys are talking about, 1) it's a little complicated for the Agent to understand and 2) Pitching it to the client and having them understand it is another big hurdle..

On top of all that, you have a 65-70yr old client calling you everything month wondering if it's a good time to "lock in my rate"

The big selling point of this annuity would be the no moving parts...Once the policy is issued there are no parts the company can move on the client ie no participation rate, cap rate, spread rate changes.

How many times have you sold a product and just hope the carrier never decides to just drop to the contract minimum say a 2% cap or 20% participation rate etc.