The AssetShield fixed index annuity, American Equity Investment Life Insurance Company’s headlining accumulation product, is about to get a facelift. According to a recent press release, the leading underwriter of fixed index annuities plans to offer more multi-asset index options as well as an option to purchase a higher rate on crediting strategies for additional growth potential. The 5, 7, and 10-year annuity product line aims to give clients a guaranteed income with safe asset growth choices.
“We are excited to continue working with leading global financial institutions to further round out our fixed index annuity portfolio,” said American Equity Chief Executive Officer, Anant Bhalla. “These enhancements give clients new growth options and new control of how their money works for them,” he added.
There will be three new indices added to the product’s existing two S&P 500 Index options.
“Each index was chosen for specific qualities, helping provide diverse allocation strategy options as different markets react to different market conditions,” American Equity President Ron Grensteiner stated.
One of the indices was developed in collaboration with Bank of America and is only available to American Equity.
“The BofA Destination Index is a rules-based strategy and combines three assets using two time-tested investment principles – balanced risk and momentum,” said Will Holligan, head of Americas Insurance Solutions for Bank of America. “By balancing risk and then seeking returns, this index aims to provide stable returns in many market environments.”
Another index, Credit Suisse Tech Edge Index, combines U.S. tech and biotech ETFs and two fixed income components. Using a cutting-edge volatility control mechanism, it can identify changing market conditions using a combination of intraday and end-of-day data.
“We are very pleased to have worked in collaboration with Salt Financial and American Equity to launch the Credit Suisse Tech Edge Index, a differentiated and unique index solution powered by the innovative truVol engine. With a twofold focus on technology, both in its design and in its equity thematic, this innovative index aims at providing investors with an opportunity for consistent performance across various market cycles,” Mike Ebert, head of equity derivatives at Credit Suisse stated.
SG Global Sentiment Index is a multi-asset class index that assesses market sentiments to determine if a market is in a shrinking, intermediate or growth phase. Allocation across a global and diverse asset base is determined by each phase, including equities, bonds and commodities in domestic, European and Asian markets.
Finally, the new optional rider will allow clients an option for increased growth potential in exchange for a fee. The locked fee allows clients to increase the cap, participation rate or replacement rate on elected index-linked crediting strategies.
For more information about this and other annuity products, please contact Annuity FYI at support@annuityfyi.com or 1-866-223-2121.
Written by Rachel Summit
