"Uncapped" index annuities

Sep 24, 2018

  1. JJ2713
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    JJ2713 Guru

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    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).
     
    JJ2713, Sep 24, 2018
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  2. jasperjohns
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    jasperjohns Super Genius

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    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.
     
  3. jboussea
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    jboussea Guru

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    what's the catch? . what's the par rate?
     
    jboussea, Sep 28, 2018
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  4. jasperjohns
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    Last edited: Sep 28, 2018
  5. DWPCL
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    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.
     
    DWPCL, Oct 3, 2018
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  6. jboussea
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    jboussea Guru

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    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
     
  7. Tahoe Ray
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  8. jboussea
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    jboussea Guru

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    nah.. I just follow his work on his blog.
     
  9. AboutThatLife
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    17 per year is actually a 36% return.
     
  10. jasperjohns
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    jasperjohns Super Genius

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    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.
    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.
     
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