LIBR Adjustments on IncomeShield 7, 9 & 10 Fixed Index Annuities Effective 03/01/2024
American Equity is proud to offer simple, transparent products at competitive rates within the industry. We remain committed to helping our contract owners protect their retirement dollars.
We will be making adjustments to our Lifetime Income Benefit Rider (LIBR) (details listed below). These adjustments are designed to help simplify income planning for you and your clients. This also allows for more options for your longer-term clients.
IncomeShield 7, 9 & 10 Adjustments
These adjustments impact our LIBR Options 3 and 5* for IncomeShield 7, 9 and 10. Options 1, 2, 4 and 6 are unaffected by these changes.
Options 3 and 5 will have an updated Income Account Value (IAV) rate and an increased accumulation period effective Friday, March 1, 2024.
*Option 5 not available in CA
| Current LIBR Options 3 & 5 | New LIBR Options 3 & 5 |
|---|---|
| 7% compound interest | 6.5% compound interest |
| 15-year accumulation period | 20-year accumulation period |
| The initial 7% IAV rate is guaranteed for the 10-year initial IAV rate guarantee period. For years 11 – 15, the IAV rate will never be lower than the minimum guaranteed IAV rate of 4%. | The IAV rate is 6.5% and is guaranteed for the 20-year accumulation period. |
For clients to qualify for the current LIBR Option 3 or 5, applications along with cash or 1035/Transfer paperwork must be received by 5:00 p.m. CT on February 29, 2024, and transfer funds must be received by 5:00 p.m. CT on April 1, 2024.
Will new disclosures be required?
- Applications received on or after March 1, 2024, will require the new disclosure.
What if a client wants the 6.5% IAV rate on pending business?
- Client will be required to send in the new disclosure in order to receive the 6.5% IAV rate with the 20-year accumulation period.
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