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For Producer Use Only
SALES WEEK: Renewal Rates That Help Clients Stay on Track for Retirement
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ANNUITY RENEWAL RATES SET EQUITRUST APART FROM THE COMPETITION
Why renewal rate integrity and transparency matter
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In your relationships with clients, you’re likely familiar with the conversation about why their fixed index annuity's (FIA's) account option cap or participation rates changed from one contract year to the next. After all, renewal rates play a big role in ensuring your clients’ retirement strategies help them achieve their goals.
At EquiTrust, we make renewal rate transparency a priority, providing more than a flashy, up-front rate. Your clients get a renewal rate they can count on as they plan for the future.
What factors impact renewal rates on FIAs?
At the time your client purchases an EquiTrust FIA, the interest rate environment helps determine the caps or participation rates of the annuity. Renewal rates can be affected by:
Option costs — An insurance company purchases options that hedge the index crediting strategies of the FIA. Changes in market volatility or short-term interest rates impact option costs, which affects where cap and participation rates are set at the time of renewal.
Bond yields — If bond yields change, that affects the rates at which a company can reinvest, which can influence the fixed rate upon renewal.
Strong renewal rates At EquiTrust, we have a proven history of strong renewal rates, and it’s a history we’ll never hide. In fact, take a look at renewal rates over 12 years on our MarketPower Bonus Index® Annuity.
With the exception of the 1-Year Interest Account, renewal rates do not reflect actual credited rates, or the amounts credited to the account. The actual credited amounts are based on the performance of the S&P 500 Index, subject to the renewal cap or participation rate.
EquiTrust does not offer investment advice to any individual or agent/producer and this material should not be construed as investment advice. Products underwritten and issued by EquiTrust Life Insurance Company, West Des Moines, Iowa.
