Athene USA has introduced a new registered index-linked annuity (RILA). It’s called Athene Amplify 2.0 and will be issued by Athene Annuity and Life Company, a subsidiary of Athene, which is part of the Apollo Global Management.
“By offering participation rate strategies in addition to the cap rate strategies offered on most RILA products, Amplify 2.0 gives investors the potential for index-linked interest earnings that may even exceed index returns,” the release said.
Currently, investors choosing the product’s six-year term and a 10% downside buffer with a 0.95% annual segment fee can earn uncapped returns equal to 140% of any growth in the S&P 500, an Athene release said.
Amplify 2.0 includes these features:
- Two buffer options that protect contract owners from the first 10% or 20% of index losses
- Three term periods to manage market volatility
- Five indices to track and two unique crediting options to select, Milestone Lock and Performance Blend.
- An additional product option, Athene Amplify 2.0 NF, offers the same features with competitive rates and no annual segment fee.
RILAs, also called registered index-linked variable annuities, buffered annuities or structured annuities, are frequently described as a cross between fixed indexed annuities and variable annuities.
Like fixed indexed annuities, registered index-linked annuities provide the opportunity for growth based on the performance of a stock market index. Unlike variable annuities are not stock market investments and do not directly participate in any stock or equity investments. RILAs differ from fixed indexed annuities in that investors are eligible for higher growth potential but do assume responsibility for a portion of any index decline.
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