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Interest Rates Changes
In response to the current interest rate environment, new business interest rates for Annuity Care®, Annuity Care® II/III, and Indexed Annuity Care®, will be decreasing effective Thursday, October 15, 2015.
The new rates will be as follows:
Annuity Care:
LTC fund = 1.75%
Cash fund = 1.25%
Annuity Care II/III:
LTC accumulated value = 2.50%
Accumulated value = 1.55%
Important: Please take a moment to update these interest rates in your State Life software. To do so, open the software and click "Configure," then "Interest Rates" on the tool bar at the top of the screen. Select the "Annuity Care/Legacy Care" tab and input the new interest rates accordingly (single life and joint interest rates are the same). Current new business rates may be preserved based on the method of funding:
- Cash Transactions: We must receive a completed application with full premium in the Home Office by the end of business on Wednesday, October 21, to preserve current interest rates.
- Transfer/1035 Transactions: We must receive a completed application with completed transfer or 1035 paperwork no later than Wednesday, October 21. All pending transfers to 1035s must be fully funded by Monday, December 21, to preserve current interest rates.
Indexed Annuity Care:
Point-to point Cap = 3.25%
Point-to point Par = 19%
Monthly average Cap = 3.50%
Monthly average Par = 27%
Fixed account = 1.10%
Indexed Annuity Care continues to offer Most Beneficial Rate:
Indexed Annuity Care offers your clients the opportunity to receive the best declared interest (or cap, or par) rate available between the date their application is received in the Home Office, and the effective date of the contract, if fully funded within 60 days of application. This feature is intended as an easy-to-do-business guide and give you and your clients the peace of mind to know that they can receive the best declared rates during the application process.
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