The minimum guaranteed interest rate for all new Apollo and Eleos contracts will remain at 1.00% for the 3rd Quarter of 2012. The minimum guaranteed interest rate at the time of issue will remain in effect for the life of the policy.
Keystone-5, -7, and -10 Products
For 3rd Quarter 2012 issues, the Guaranteed Minimum Annuity Value for the Keystone-5, Keystone-7, and Keystone-10 contracts will remain at 100% of premium accumulated at 1.00%. The Minimum Contract Value will remain at 87.5% of premium accumulated at a Non-forfeiture rate of 1.00%.
We will continue to declare the Minimum Guaranteed Interest Rate on a quarterly basis for products filed under the indexed standard non-forfeiture law (Apollo, Eleos, and Keystone products). Increases or decreases in the rates will be dependent upon market conditions, and will be no lower than the 6-month average of the 5 year Treasury Yield minus a spread of 1.25% for fixed rate products or 2.25% for index products (or 1% if greater, and no higher than 3%.)
While minimum guaranteed rates are remaining the same for the upcoming quarter, please keep in mind for future changes that the 45-day rate lock is extended only to interest rates, and does NOT apply to minimum guaranteed rates.
Should you have any questions, please feel free to contact the Annuity Sales Desk.