"Uncapped" index annuities

[JJ2713]

What are you seeing for the highest cap rates or interest options for indexed annuities?

Keep seeing "uncapped", but the underlying index is less volatile, which means less gains (compared to the S&P).

 

[jasperjohns]

What are you seeing for the highest cap rates or interest options for indexed annuities?

Keep seeing "uncapped", but the underlying index is less volatile, which means less gains (compared to the S&P).

Athene Annexus BCA product will allow allocation to the SP 500 with a 1.5 spread no cap. GILICO also has a uncapped SP 500 option with a par rate of 58%. Not a fan of GILICO yet though they are new to the FIA market place. The low volatility options can perform really well at times. Great American has some risk controlled options and I have seen 7 to 10% in the last couple of years. I do not expect to sustain that but nothing wrong with that for a year or 2.

 

[jboussea]

Athene Annexus BCA product will allow allocation to the SP 500 with a 1.5 spread no cap. .

what's the catch? . what's the par rate?

 

[jasperjohns]

what's the catch? . what's the par rate?[/QUOTE
Well a couple of things. For this option 70% par but the other 30% still earns a fixed declared rate of 1.5 and it is a 2 year term. No above street contracts and servicing is a challenge as one must call FMO for all service related items. That said I have seen 35% returns. That is for 2 years though. So still 17 per year. This is a outlier though. I have seen 5 to 8 as annual averages Over 4 or 5 years pretty consistently. Have to be
Careful and manage client expectations. in my opinion it is the best accumulation FIA on market. Iam not a marketer I'm a producer so no hidden agenda here. Also very complex product so not for the inexperienced agent. Several other details but too much to mention.

 

[DWPCL]

what's the catch? . what's the par rate?

I would actually agree with the poster regarding the BCA. It had been my best performing FIA's I have in the books. Couple corrections though, its a 1.5% fee not a spread, fixed is not 1.5 its .25%
I only use the Schiller index and that thing has killed it.

 

[jboussea]

I would actually agree with the poster regarding the BCA. It had been my best performing FIA's I have in the books. Couple corrections though, its a 1.5% fee not a spread, fixed is not 1.5 its .25%
I only use the Schiller index and that thing has killed it.

I don't do annuities but that would give the customer service thing would give me pause especially after this news

IPB 113: The Stumbling Blunders of Accordia Life Insurance Company aka Global Atlantic • The Insurance Pro Blog

 

[Tahoe Ray]

I don't do annuities but that would give the customer service thing would give me pause especially after this news

IPB 113: The Stumbling Blunders of Accordia Life Insurance Company aka Global Atlantic • The Insurance Pro Blog

Do you know Brandon by any chance?

He used to post on here a lot back in the day...

 

[jboussea]

Do you know Brandon by any chance?

He used to post on here a lot back in the day...

nah.. I just follow his work on his blog.

 

[AboutThatLife]

That said I have seen 35% returns. That is for 2 years though. So still 17 per year.

17 per year is actually a 36% return.

 

[jasperjohns]

17 per year is actually a 36% return.

17x2 is 34 but I didn't think anyone cared that much. The 2 year credit was 35 the exact annual numbers were 17.4 ish and 17.6 ish but this is really a irrelevant detail. (another small detail but I don't feel like explaining again so I will do now) No compounding occurs (in the 2 year period)since interest is not locked in until the second year. All strategy options are 2 year terms.

I would actually agree with the poster regarding the BCA. It had been my best performing FIA's I have in the books. Couple corrections though, its a 1.5% fee not a spread, fixed is not 1.5 its .25%
I only use the Schiller index and that thing has killed it.

Read the "What is the Premium Protection Feature" in the product disclosure. This guarantee explains that the "fee" works like a spread. Thanks for the correction on the declared rate.