Here we are March 1 and the mystery surrounding how to best work with the proposed DOL regulation changes is still not evident or clear. There are rumored delays, implementations by larger broker dealers happening in April, and comment periods that give very little time for any review. With all the confusion surrounding product availability, compensation and new procedures, it is apparent that our industry needs to continue forward with sales that are still very popular after the increase in the interest rate environment we have experienced in the last few months. Most importantly, we look forward to new products that will be developed and introduced post-DOL in sync with how most annuity policies will be priced going forward.
In particular, The Standard Insurance Company has announced a new product that we have been fortunate in helping with, in both its inception and design. It features a 7-year term annuity. This striking product will eliminate the # 1 issue with index annuities: the renewal rate adjustments during the term of the product. The Standard’s new product, the SCA 7, has no adjustments once the product is purchased. Additionally, it utilizes a unique and exclusive index created by JP Morgan—the U.S. Sector Rotator 5 Index. Under current market conditions this index is extremely competitive with a 125% participation rate. Like most new low-volatility index methods, the SCA 7 will feature a U.S. sector only with the unique ability to have no exposure to bonds in a market that is increasingly focused on equity momentum.
Voya has also introduced an outstanding new product called Journey in February. Similar to the SCA 7, Journey offers a 7-year term with no moving parts and an annual performance interest bonus available for the first six years. The current available annual locked-in interest rate is 2.25% each qualifying year. The icing on the cake is the 100% participation of two indices—JP Morgan and CITI. It is the advisor’s choice on how these two different strategies are allocated. Both new products definitely are built with consumers in mind and priced to perform exceedingly well.
Please let us now how we can be of assistance in explaining the most current events surrounding the DOL ruling, as well as these brand-new products from The Standard and Voya that will continue to keep sales red hot in 2017.
As always, call (800) 732-1489 or email info@insourcemg.com if we can be of help.
Deck McCormick
CEO, InSource, Inc.
