Another Useful Accumulation Protector PlusSMFrequently asked questions about the annuity
What is Accumulation Protection PlusSM(APP) Interest?
Traffic jam protection plusSMAnnuity (APP) is a fixed indexed annuity that aims to accumulate wealth and protect it from future market downturns. With access to unique and flexible lending strategies, the APP offers protection and growth potential across all markets.*
* Jam Protection PlusSM(APP) The annuity offers growth potential, whether the market rises, falls or remains the same.
What makes Buildup Protector PlusSM(APP) Single annuity?
The Annuity APP differentiates itself in the industry by offering contract holders exclusive access to two Credit Suisse indices: the Credit Suisse Momentum Index (Bloomberg: CSEAMTM5) and the Credit Suisse ESG Macro 5 Index (Bloomberg: CSEAGESG). Both the Credit Suisse Momentum Index and the Credit Suisse ESG Macro 5 Index have an exclusive 10-year guarantee on participation rates. The Credit Suisse Momentum Index and Credit Suisse ESG Macro 5 Index participation rates are guaranteed for 10 years when the one-year peer-to-peer or two-year peer-to-peer credit strategy is chosen.*
APP Annuity's Credit Suisse Momentum Index credit strategies are unique in the insurance industry in that they allow policyholders to accumulate wealth in both bull and bear markets. The risk-tracked Credit Suisse Momentum Index diversifies its underlying components into stocks, bonds and commodities across four global regions. The Credit Suisse Momentum Index implements a momentum-driven strategy, taking long positions on components that show the strongest trends and short positions on components that show weaker trends. This investment approach, along with the stable structure of the Annuity APP, offers policyholders the opportunity to increase their premiums in turbulent economic environments.
In addition, the Credit Suisse ESG Macro 5 Index is designed to deliver consistent returns. The Credit Suisse ESG Macro 5 Index's unique diversification framework provides exposure to ESG components and macro components across geographies and asset classes to mitigate risk and generate returns. The Credit Suisse ESG Macro 5 Index also targets 5% volatility.
*Participation rates for the Credit Suisse Momentum Index are guaranteed for 10 years when the one-year point-to-point or two-year point-to-point imputation strategy is chosen, provided the Atlantic Coast Life Insurance Company continues to do so . the Credit Suisse Momentum Index. Credit Suisse ESG Macro 5 Index participation rates are guaranteed for 10 years when the one-year point-to-point or two-year point-to-point imputation strategy is selected, provided that Atlantic Coast Life Insurance Company continues to have access to the Credit Suisse ESG Macro 5 Index.
What is the Credit Suisse ESG Macro 5 Index?
The Credit Suisse ESG Macro 5 Index, a global multi-asset index, employs an innovative strategy that combines environmental, social and governance (ESG) equity components with macro components, while a risk control mechanism targets an index volatility of 5%. The Credit Suisse ESG Macro 5 Index uses daily rebalancing to stabilize performance and provide consistent returns over time.
With the ESG component, your pension is exposed to a risk-weighted basket of four MSCI ESG indices that focus on regional activities that are considered positive for the environment and society, are not the subject of controversy, and are the highest ESG values calculated by MSCI .
The Credit Suisse ESG Macro 5 Index framework uses diversification as an approach to creating value for your pension, targeting returns in different market environments while reducing risk.
Access to the Credit Suisse ESG Macro 5 Index is exclusive to Accumulation Protector Plus buyersSMannuity. To learn more about this index, read the Credit Suisse ESG Macro 5 Index brochure or visit:https://indices.credit-suisse.com/CSEAGESG
How Accumulation Protector Plus worksSM(APP) Annuity protects my capital?
Whether the market rises, falls or stays the same, your capital is guaranteed not to fall due to market performance* and is protected by APP's fixed and indexed accounts.
You do not lose money, including interest from previous periods, if the index falls, as your money is allocated to the pension itself and not directly to the index (or indices).
*If Rate Enhancement Rider is purchased, the prime amount will not decrease due to market performance, but may decrease due to driver fee.
How my client can grow with Accumulation Protector PlusSM(APP) Interest?
You have the flexibility to choose how your single premium is distributed across eight credit strategies. These lending strategies include a fixed account and seven indexed accounts linked to two indices, the Credit Suisse Momentum Index and the S&P 500®Index. We know that your life and your needs are constantly evolving, so you can adjust your rewards on the anniversary of the contract, which coincides with the end of the credit period for each strategy. Accumulation Protector Plus credit periodsSMAnnuity accumulation strategies range from one, two, or three years. Credit strategies include a fixed rate account, an activation rate account, and multiple participation rate or peer cap rate accounts. A peer-to-peer strategy measures the difference in index value at each contract anniversary and compares it to the index value one year earlier, two years earlier, or three years earlier, depending on the option chosen.
You can flexibly choose how your single premium is distributed across eleven credit strategies. These lending strategies include a fixed account and ten indexed accounts linked to three indexes, the Credit Suisse Momentum Index, the Credit Suisse ESG Macro 5 Index and the S&P 500®Index. We know that your life and your needs are constantly evolving, so you can adjust your rewards on the contract anniversary, which coincides with the end of each strategy's accrual period. At this point, you can assign any available strategy to a new credit period of one, two, or three years.
Accumulation Protector Plus credit periodsSMAnnuity accumulation strategies range from one, two, or three years. Credit strategies include a fixed rate account, an activation rate account, and multiple participation rate or peer cap rate accounts. A peer-to-peer strategy measures the difference in index value at each contract anniversary and compares it to the index value one year earlier, two years earlier, or three years earlier, depending on the option chosen.
Are fee-free withdrawals possible?
In the second year of the Protector Plus accumulation contractSMThe annuity allows you to withdraw up to 5% of your account value or minimum required distribution, whichever is greater. With the purchase of the Rate Enhancement Rider, this 5% increases to 10%.
What are the benefits of the Rate Enhancement Rider?
The Rate Enhancement Rider is a fantastic feature to add to your annuity if you want to take your accrual performance to the next level! This tab increases the amount available for free withdrawal from 5% to 10% of your annuity account value. Additionally, this tab gives you a better opportunity to earn more interest by increasing the fixed, participation, and cap fees for your annuity accrual strategies. Increasing participation and cap fees offer the potential to benefit significantly from the upside potential of the index, as your premium has access to a larger percentage of an index's growth.
There is a fee when purchasing the pilot. See Our Products page for current rates and fees.
Traffic jam protection plusSMThe annuity offers a 110% Premium Return Guarantee (ROP) when the Rate Enhancement Rider is purchased and the contract is valid for year 10. The premium is adjusted for withdrawals.
When is the earliest I can receive annuity payments?
In all states except Florida, annuity payments can begin after the fifth year of the contract. In Florida, membership dues can begin after the first year of the contract.
What death benefit would be paid to my beneficiary?
The death benefit feature protects your beneficiary. If you die before you have received any proceeds* other than a payout, the amount payable to your beneficiaries will be equal to the account value minus a no vesting premium bonus or the guaranteed minimum return amount, whichever is greater in date of death.
There are no withdrawal fees for death benefits, and your beneficiary has several settlement options in the event of death:
- Continuation of the Spouse – The owner's spouse, the sole primary beneficiary, becomes the owner and continues to receive the benefits of the APP annuity.
- Death Benefit – The entire death benefit is paid to the beneficiary in a single payment.
- Additional Settlement Options - See the answer to the question below for full details on settlement options.
*Revenue is defined as the amount payable when: (1) the owner withdraws from the contract; (2) the contract expires; or (3) a settlement option is selected through the Prepay feature.
What accounting options are available with Accumulation Protector PlusSMInterest?
lifetime income only
With this option, the pensioner receives equal monthly payments for the rest of his life. Payments end with the payment due shortly before the pensioner's death. No death benefit is payable with this option.
Only specific period
This billing option guarantees equal monthly payments for a specified period of between 10 and 20 years. After the fifth year of the contract, you can apply for a period of between 5 and 20 years with guaranteed equal monthly installments. If the pensioner dies before payments for the specified period, the beneficiary will receive the remaining payments for the specified period.
Guaranteed lifetime income
This billing option provides equal monthly payments for the remaining life of the beneficiary or for a specified period. If the beneficiary dies after payments have been made for the specified period, payments end with the payment due shortly before the announcer's death.
What if I need money because of a serious illness?
If you are diagnosed with a terminal illness or are required to move into a nursing home, you may waive in whole or in part under certain conditions without market value adjustment, surrender fee or forfeiture of any applicable no-vest award bonus.
When can I reassign the amount from my account?
APP Anuidade offers a diversified set of fixed and indexed credit strategies with terms of 1, 2 or 3 years, allowing you and your advisor to choose the accounts and terms that best suit your goals. In addition, you can adapt allocations for the contract anniversary, which coincides with the end of the crediting period, according to your needs.
What options do I have after the 10-year payback period?
With the highly flexible APP, you can continue your pension - even after the 10-year buy-back period has ended. You also have the option to withdraw some or all of the account amount or apply a billing option to receive annuity payments over time.
How is the bonus fully acquired?
By purchasing Accumulation Protector PlusSMannuity, you receive a one-time premium bonus of 5%. The Reward Bonus will be credited to your account immediately, increasing your account value and giving you the opportunity to earn additional interest. Your premium bonus and associated interest can be accessed according to your vesting schedule. The vesting plan is valid for 10 contract years, during which the earned premium amount gradually increases from 0% to 100% vesting.
How do I know if Accumulation Protector PlusSMIs annuity the right product for my needs?
Traffic jam protection plusSMThe annuity can be an excellent growth vehicle for anyone looking to accumulate wealth and protect their retirement income. If the following sounds like you, Buildup Protector Plus is itSMThe annuity may be the complement you are looking for! It's Accumulation Protector PlusSMRetirement right for you?
- They have a low risk tolerance and typically invest in CDs, savings bonds, money market mutual funds and Treasuries.
- You are looking for a long term strategy to increase your capital (ideally around 10 years).
- You want to protect your hard-earned money.
- You want to preserve the legacy you've built by reliably accumulating more wealth.
- You like having lots of flexible allocation options as you grow your money.
- Access to two risk-monitored global indices with diversified portfolios.
- Are you thinking of retiring soon or have already retired.