Rate Increase and Strategy Charge Decrease Effective 06/14/22
Two competitive changes effective June 14
- Interest rates increase
- Strategy charges decrease from 1.50% to 0.95%
More upside. Lower charge.
Effective June 14, the Enhanced Participation Rate strategy charges will reduce from 1.50% to 0.95% on the following fixed index annuities (FIA):1
- NAC VersaChoiceSM
- Performance Choice®
Rates increase on the following annuities:
- NAC VersaChoiceSM (FIA)
- Performance Choice® (FIA)
- North American Charter® Plus (FIA)
- NAC Guarantee PlusSM multi-year guarantee annuity
NEW BUSINESS GUIDELINES
The changes above apply to applications received in the home office or submitted through e-App on or after June 14. (Application signed date for NAC Guarantee Plus)
On fixed index annuities, Participation and Index Cap rates increase, Index Margins decrease.
Rates are subject to change at any time.
1. Strategy charge: Known as a strategy fee annual percentage in the contract. In exchange for the charge, an enhanced participation rate is received. The charge is multiplied by the number of years in the crediting term and is deducted once each term from the accumulated value allocated to the enhanced participation rate method. The charge will be deducted once each term at the earliest of any partial withdrawal that exceeds the penalty-free amount, a full surrender or the end of the term. The strategy charge will be deducted regardless of the interest credited to the contract and can lead to loss of premium in certain scenarios. For NAC VersaChoice, the strategy charges are considered a partial surrender outside of the available penalty-free amount and for purposes of the return of premium feature will reduce the net premium accordingly.