Good News! 8% LAV Rate is Back on Lifetime Income Benefit Rider!

American Equity announced today—the 8% IAV rate is back on Lifetime Income Benefit Rider until September 30, 2011! This rate will be applied to any business written between now and the end of September.

With the return of the 8% IAV, LIBR-2010 offers these great features:

• Your clients have the choice of a 5% or 8% IAV Rate. The 5% option remains available for all issue ages for NO FEE. The 8% option is available for issue ages 50 and above with a fee of 90 bps annually.
• For the 8% IAV Rate option the IAV Period will be 7 years and the Reset will be between the 3rd and 7th Contract Anniversaries.
• Remember - FEES MATTER! LIBR-2010 still calculates and deducts the fee from the Contract Value, not the Income Account Value like other income riders on the market today! When comparing Lifetime Income Benefit Riders, it is important to understand how fees are calculated. We believe that American Equity is still the best choice for income!
• Compound vs. Simple Interest - American Equity uses compound interest to compute the rollup on the IAV. Many Income Riders available on the market use Simple Interest. Don't be mislead by IAV Rates when comparing Income Riders, check to see how interest is calculated and credited to the IAV.

PLEASE NOTE: the new LIBR-2010 disclosure (Form #1127 6.6.11) will be required prior to issue to get the new 8% IAV Rate. NO EXCEPTIONS!! Also, contracts may not be sent in for a free-look cancel and then reissued with the new rider.

If you have any questions or would like more information, please call First Annuity at (888) 758-7305.