INCOMING: LIBR Adjustments on IncomeShield
LIBR adjustments on IncomeShield 7, 9 & 10, effective March 1!
American Equity is proud to offer simple, transparent products at competitive rates within the industry. They remain committed to helping their contract owners protect their retirement dollars.
American Equity will be making adjustments to their Lifetime Income Benefit Rider (LIBR) (details listed below). These adjustments are designed to help simplify income planning for you and your clients. This also allows for more options for your longer-term clients.
IncomeShield 7, 9 & 10 Adjustments
These adjustments impact the LIBR Options 3 and 5* for IncomeShield 7, 9 and 10. Options 1, 2, 4 and 6 are unaffected by these changes.
Options 3 and 5 will have an updated Income Account Value (IAV) rate and an increased accumulation period effective Friday, March 1, 2024.
*Option 5 not available in CA
Current LIBR Options 3 & 5 | New LIBR Options 3 & 5 |
7% compound interest | 6.5% compound interest |
15-year accumulation period | 20-year accumulation period |
The initial 7% IAV rate is guaranteed for the 10-year initial IAV rate guarantee period. For years 11 - 15, the IAV rate will never be lower than the minimum guaranteed IAV rate of 4%. | The IAV rate is 6.5% and is guaranteed for the 20-year accumulation period. |
Will new disclosures be required?
- Applications received on or after March 1, 2024, will require the new disclosure.
- Client will be required to send in the new disclosure in order to receive the 6.5% IAV rate with the 20-year accumulation period.