You asked for it and we are happy to deliver! The 8% IAV Rate
will be available for applications dated between June 6, 2011, and September
30, 2011! With the return of the 8% IAV, LIBR-2010 offers these great
PLEASE NOTE: the new LIBR-2010 disclosure (Form #1127
6.6.11) will be required prior to issue to get the new 8% IAV Rate. NO
EXCEPTIONS!! Also, contracts may not be sent in for a free-look cancel and
then reissued with the new rider.
- Your clients have the choice of a 5% or 8% IAV Rate. The 5%
option remains available for all issue ages for NO FEE. The 8% option is
available for issue ages 50 and above with a fee of 90 bps
- For the 8% IAV Rate option the IAV Period
will be 7 years and the Reset will be between the 3rd and 7th Contract
- Remember - FEES MATTER! LIBR-2010 still
calculates and deducts the fee from the Contract Value, not the Income
Account Value like other income riders on the market today! When comparing
Lifetime Income Benefit Riders, it is important to understand how fees are
calculated. We believe that American Equity is still the best choice for
- Compound vs. Simple Interest - American
Equity uses compound interest to compute the rollup on the
IAV. Many Income Riders available on the market use Simple Interest. Don't
be mislead by IAV Rates when comparing Income Riders, check to see how
interest is calculated and credited to the IAV.
We will continue to accept the current LIBR-2010 with the 7% IAV
Rate for applications SIGNED on or before June 15, 2011. Business must be
issued by July 29, 2011.
Thank you for your business! Please visit our website at
www.american-equity.com or call our Marketing Department at 888-647-1371 for
more information or to order supplies.
*Form number and availability vary by
Click Here for the LIBR Brochure