Athene USA has just launched a new registered index-linked annuity (RILA), and according to a recent InsuranceNewsNet article, the design features set it apart from other products in this fast-growing category. Athene® Amplify offers greater asset accumulation potential with a level of market protection that other products may not provide.
“Athene Amplify, our first registered index-linked annuity, is designed to become a preferred accumulation solution for investors seeking more participation in market gains while managing their downside risks,” said Grant Kvalheim, CEO and President of Athene USA. “Amplify is a versatile vehicle for asset accumulation that allows consumers to remaster investing on their own terms. It’s a natural addition to our Athene family of fixed and fixed indexed annuity solutions and reflects our commitment to satisfy evolving consumer needs as they plan for retirement.”
Registered index-linked variable annuities, or RILAs, buffered annuities or structured annuities, are often characterized as a mix between fixed indexed annuities and variable annuities. Similar to fixed indexed annuities, RILAs provide an opportunity for growth based on the performance of a stock market index. However they are not a stock market investment and do not directly participate in stock or equity investments. They differ from FIAs in that investors are eligible for a higher cap on the upside while not assuming responsibility for a portion of any index decline. Sales of RILAs were up 20% in 2018 and up six-fold since 2014, according to LIMRA.
According to the provider, Athene® Amplify separates itself from the competition by the variety of options it offers investors, including:
- Both Buffer (protection down to a specified percentage of index decine) and Floor (protection below a specified percentage) Segment Options.
- Increased flexibility with 1, 2, and 6-year Segment Term Periods and a choice between 3 available indices. Positive Segment Credits are subject to a Cap Rate and Participation Rate declared by Athene at the beginning of each Segment Term Period.
- Opportunity to diversify risk and growth potential with a unique Performance Blend Segment Option. Here, the index change used to determine Segment Credits is based on a weighted average return of all three indices at the end of a 6-year Segment Term Period.
For more information about Athene® Amplify, including current indicative rates, visit www.athene.com/amplify-rates.
Written by Rachel Summit