Choice Series and MYGA Rate Adjustments Effective August 5, 2016
Choice Series and MYGA Rate Adjustments Effective August 5, 2016
American Equity’s Choice Series and MYGA rates will change on August 5, 2016. To receive the current rates, original applications along with cash or 1035/Direct Transfer paperwork must be received in our office by 4:45PM CT on Thursday, August 4, 2016. Transfer funds must be received in our office by 1:00PM CT on Friday, September 2, 2016. Transfer funds received after Friday, September 2, 2016 will receive the new rates as indicated below. NO EXCEPTIONS!
Choice Series Rates:
| Choice 10 | CURRENT RATES | NEW RATES | |
| INTEREST CREDITING STRATEGIES | Fixed Value | 2.25% | 2.00% |
| Annual PTP – Cap | 5.00% | 4.25% | |
| Annual PTP – PR | 40% | 35% | |
|
2.00% | 1.90% | |
| Volatility Control Index w/Spread* | 0.75% | 1.00% | |
| Choice 8 | CURRENT RATES | NEW RATES | |
| INTEREST CREDITING STRATEGIES | Fixed Value | 2.05% | 1.90% |
| Annual PTP – Cap | 4.75% | 4.10% | |
| Annual PTP – PR | 40% | 35% | |
|
1.90% | 1.80% | |
| Volatility Control Index w/Spread* | 1.00% | 1.25% | |
| Choice 6 | CURRENT RATES | NEW RATES | |
| INTEREST CREDITING STRATEGIES | Fixed Value | 1.90% | 1.80% |
| Annual PTP – Cap | 4.50% | 4.00% | |
| Annual PTP – PR | 35% | 30% | |
|
1.80% | 1.70% | |
| Volatility Control Index w/Spread* | 1.25% | 1.50% | |
MYGA Rates:
| Guarantee Series | Current Rate | New Rate |
| Guarantee 5 | 2.25% | 2.15% |
| Guarantee 6 | 2.45% | 2.35% |
| Guarantee 7 | 2.70% | 2.50% |
LIBR Adjustments Effective August 25, 2016
All versions of the Choice Series Lifetime Income Benefit Rider payout factors will be adjusted effective August 25, 2016. Additionally, the Multiplier on the Choice Series Lifetime Income Benefit Rider with Indexing Income Option will increase. To receive current payout factors and the current Multiplier, original applications along with cash or 1035/Direct Transfer paperwork must be received in our office by 4:45PM CST on Wednesday, August 24, 2016. Applications received Thursday, August 25, 2016 and after will receive new payout percentages. NO EXCEPTIONS!
Payout factors will decrease by 25bps for all ages. Please see table below for examples of the new payout percentages for ages 60, 65 and 70.
| Age | Current Single Life Payout Percentage | New Single Life Payout Percentage | Current Joint Life Payout Percentage | New Joint Life Payout Percentage |
| 60 | 4.50% | 4.25% | 4.00% | 3.75% |
| 65 | 5.00% | 4.75% | 4.50% | 4.25% |
| 70 | 5.50% | 5.25% | 4.85% | 4.60% |
Choice Series Lifetime Income Benefit with Indexing Income
| Current IAV Multiplier | New IAV Multiplier | |
| Indexing Income Option | 200% | 220% |
Thank you for your business and support! Please call Marketing at 888-661-1999 if you have any questions.
*Spread is the same as Asset Fee as described in the Contract. Annuity and Riders issued under form series ICC14 IDX8, ICC13 MYGA, ICC14 R-LIBR, 14 R-LIBR-W,ICC16R-LIBR-IDX and state variations thereof. Availability may vary by state.
