Great American : American Custom 10 Rider Changes Effective July 20
July 6, 2015
Product News
American Custom 10 Rider Changes
The following changes are effective July 20, 2015:
Simple Income OptionSM – income rider
The rollup credit is changing to 9%
The annual charge is increasing to 1.05%
Stacked Income OptionSM – income rider
The rollup credit is changing to 4%
The annual charge is increasing to 1.35%
Income percentages for these riders will remain the same. Please note the Legacy
Income OptionSM rider is not changing, and will continue to offer your clients the ability to take 5% withdrawals or required minimum distribution payments (whichever is greater), while the rider death benefit remains at initial purchase payment.
These riders are available exclusively with the American Custom 10SM fixed-indexed annuity. For complete details, please see our rider reference guide.
How Do Reserves Affect Annuity Pricing?
Fixed-indexed annuity riders like the Stacked and Simple Income Options, which
offer stronger and or/longer guarantees, require Great American Life® to
hold more capital. The more capital that’s placed into reserves, the lower the
crediting rate that can be offered.
Please see the attached explanation from Mike Prager, Chief Actuary & Chief Risk
Officer, detailing how reserves affect annuity pricing.
New Business Notes
In order to receive current rider benefits, applications must be signed by July 17, 2015
and received by July 24, 2015. All funds must be received in the Home Office by
August 28, 2015.
Great American Life is committed to providing the most competitive products and
rates possible, while following established guidelines and regulations for maintaining proper reserves. This commitment helps to ensure we can meet our long-term obligations to you and your clients. Thank you for your
continued support.
