There has been a lot going on here at VOYA and want to make sure the announcement below did not get lost in the shuffle…in addition to our Top Tier Caps and Rates holding while we navigate this current interest rate environment, we are re-launching the Monthly Average Index with Spread on the VOYA Secure Series of Annuities (5, 7, and Opps +) available both for new business and anniversary re-allocations for in-force business. Below are a refresher on the strategy, where and how it can be positioned as well as a sample illustration and the rate sheet with the Strategy Spreads attached.
Thank You for your time and Thank You for your business. JR
How The Strategy Works:
The Monthly Average Index Strategy index-linked interest crediting will be determined by the monthly performance of the S&P 500 Index and credited on the annual premium anniversary.
Each month, on the business day prior to the monthly anniversary date, we capture the S&P 500 closing number.
Calculate the Sum of the 12 Monthly Index Numbers and divide the total by 12 to determine the Average Index Number
Determine the total percentage change in the S&P 500:
– (Average Index Number) minus (Beginning Index Number) divided by Beginning Index Number
Deduct a spread from the total percentage change (Rate Sheet with Spreads attached).
The remaining percentage will be credited to the premium held in that strategy
Delivers earning potential with no ceiling where clients can experience significant growth in a rising bull market while enjoying 100% protection against market loss.
Annual ratchets to the Benefit Base as a result of the MAI may be possible when used with the IncomeProtector Withdrawal Benefit rider (in years 18 and 19 of attached illustration, page 10)
The averaging effect of the monthly S&P 500 may smooth out the ups and downs experienced throughout the year, where interest credits could be applied even though the market ended flat or negative.
Competitive Advantage: Index credit based solely on the performance of the S&P 500 which is different to other spread strategies in the market today. Certain competitor carriers use spread strategies that utilize volatility controls that will allocate between equity and fixed income indices with the allocation changing throughout the term based on formula dictated by the insurance company. They promote an uncapped strategy however, the client can be forced into a rather conservative allocation.