AIG announces changes to Power Series Index Annuities
AIG has announced that they have been monitoring the low interest rate environment and it has become necessary to adjust certain components of the Power Series of Index Annuities. Effective October 10, 2016, AIG will implement the following:
Power Select Series
1. Removal of Premium Enhancement
2. New Premium Breakpoint Structure
3. Simplifying with closure of Monthly Index Interest Crediting Strategies
4. Adjustment of the Maximum Annual Withdrawal Rate Changes for the Lifetime Income Plus and Lifetime Income Plus Multiplier
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Power Protector Series
1. Removal of Premium Enhancement
2. New Premium Breakpoint Structure
3. Simplifying with closure of Monthly Index Interest Crediting Strategies
4. Reduce the Income Credit (roll-up) on the Lifetime Income Plus living benefit
5. Adjustment of the Maximum Annual Withdrawal Rate Changes for the Lifetime Income Plus
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TRANSITION RULES:
In general, applications must be signed by October 9, 2016. AIG will allow a 60-day funding period for transfer business. In order for contracts to be issued with the existing product parameters, the following rules apply:
· Cash with Application: Applications must be signed no later than Sunday, 10/9/16. The applications and initial premium must be received in good order by the AGL Annuity Service Center by Monday, 10/17/16 for the contract to be issued with the existing product parameters.
· 1035 or Transfer Business: Both the application and transfer paperwork must be signed no later than Sunday, 10/9/16 and must be received in good order by the AGL Annuity Service Center no later than Monday, 10/17/16. The initial premium must be received no later than Friday, 12/9/16 for the contract to be issued with the existing product parameters.