American Equity Lifetime Income Rate Change - Effective June 3rd, 2013

 

 

DATE: May 7th, 2013 TO: All American Equity NMOs and Agents FROM: Jessica Kilker, Assistant Vice President - Marketing Services RE: Lifetime Income Rate Change - Effective June 3rd, 2013 Important Information - Please Read Carefully! Please note the following changes for applications received after May 31st, 2013: To receive the Current 6.5% or 4.5% Income Account Value (IAV) Rates and fees, original applications must be accompanied by either cash or 1035/Direct Transfer paperwork and must be received in our office by 1:00pm CT on Friday, May 31st. No faxes will be accepted. Applications received in our office after May 31st, 2013 will receive the new IAV Rates and Fee Rates. NO EXCEPTIONS! The IAV Periods will not change. For the Lifetime Income Benefit Rider (ICC13 R-LIBR.1* / LIBR-2010*), the IAV Period is 10 years and the Reset will be between the 5th and 10th Contract Anniversaries; with 20 year maximum. For the F-LIBR-09, the IAV Period is an automatic 20 years with no Reset. Compound vs. Simple Interest - American Equity uses compound interest to compute the IAV. Many Income Riders available on the market use Simple Interest. Don't be misled by IAV Rates when comparing Income Riders, check to see how interest is calculated and credited to the IAV. American Equity continues to offer Level and Increasing Payment Options. The increasing Payment Percentage will remain at 3%. American Equity's LIBR remains extremely competitive in the income planning marketplace. IAV RATE CHANGES:

CURRENT IAV RATE NEW IAV RATE Lifetime Income Benefit Rider (Age 50+) 6.50% (0.60% Fee) 6.50% (0.75% Fee) Lifetime Income Benefit Rider/ No Fee 4.50% (No Fee) 4.00% (No Fee) LIBR w/Enhanced Death Benefit 4.50% (0.70% Fee) 4.00% (0.70% Fee) LIBR w/Wellbeing Rider 6.50% (0.75% Fee) 6.50% (0.85% Fee) F-LIBR-09* w/Fee (Age 50+) 6.50% (0.30% Fee) 6.50% (0.40% Fee) F-LIBR-09* w/ No Fee 4.50% (No Fee) 4.00% (No Fee)   As always, we appreciate your continued business and support! Please visit our website at www.american-equity.com or call our Marketing Department at 888-647-1371 for more information or to order supplies. *Form number and availability vary by state. Lifetime Income Benefit Rider (ICC13 R-LIBR.1 / LIBR-2010) issued by American Equity Investment Life Insurance Company, West Des Moines, IA. By choosing the 6.5% IAV Rate you will be charged a 0.75% annual fee from your contract value. 4.0% IAV Rate is available for all issue ages for no fee. 6.5% IAV Rate available for issue ages 50+. IAV only used to calculate lifetime income payments. Not part of underlying contract value or available in a lump sum. Interest grows until the earlier of payments beginning or the end of the IAV period. If payments not elected by 10th contract anniversary, growth of IAV will stop unless you elect to reset accumulation period. Claims paying ability based on the financial strength of American Equity. See brochure and disclosure for details. FOR MORE INFORMATION, CALL MARKETING 888-647-1371 www.american-equity.com | PO BOX 71216, DES MOINES, IA 50325 For Agent Information Only. Not for use in soliciting or advertising to the public LIBR Rate Change 5/7/2013

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