Eagle Life Insurance Company, a wholly owned subsidiary of American Equity Investment Life Insurance Co., has added a five-year fixed index annuity (FIA) product to its indexed product lineup: Eagle Select Focus 5.
The contract allows clients the ability to take penalty-free withdrawals of either 5% or 10% per year during the five-year surrender charge period, beginning with the start of the second contract year. The 5% withdrawal option requires election of a market value adjustment rider.
Eagle Select Focus 5 also offers flexible premiums that don’t extend the surrender period, a five year surrender charge schedule, terminal illness and nursing care riders included at no cost and transparent crediting methods, said Kirby Wood, Chief Distribution Officer of Eagle Life, in a release.
Eagle Select Focus 5 offers a new allocation option: the “S&P 500 Dividend Aristocrats Daily Risk Control 5% Excess Return with Participation Rate.” There is no upper limit on the potential rate of return the owner can receive when allocating premium to this index option, but the internal design of the index automatically dampens the owner’s upside potential.
According to an Eagle Life product brochure, this is “a volatility control index that consists of the S&P 500 Dividend Aristocrats Index and a cash component accruing interest at three Month LIBOR.
“The Index is dynamically adjusted between the two components to target a 5% level of volatility. The S&P 500 Dividend Aristocrats Index is made up of S&P 500 members that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. This Index is well diversified across all market sectors.”
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