New FIA with 10.25% Cap and 50% S&P 500 Par Rate (A-Rated w/No Fee)

To sign up for info on the FIA with the “best” par and cap rates, click on the following link (this is the NEW “Best FIA Your IMO Won’t Tell You About”):

DI…Your Trojan Horse to Pick Up Affluent Clients–Webinar on August 4th at 3:00 p.m. EDT.

Click on the following to Sign Up for a WEBINAR I’m doing with our disability insurance expert who has a proven system for using DI as a “Trojan horse” to pick up affluent clients (especially doctors).

NO “A” rated carrier has a 50% participation rate or a 10.25% cap on the S&P 500 index on an annual pt-to-pt product. That is until now!

This new product has No Fee; No Spread; and is NOT a Multi-Year Bucket

To get higher caps/par rates in FIAs, companies throw in a fee, a spread, or you have to use a multi-year bucket. No one likes fees or spreads, and 2+ year pt-to-pt products are dangerous.

Exclusive distribution product!

If you read this and think, hey, I’ll call the IMO I work with to get access, good luck. The ability to wholesale this FIA will be limited to a very small list of distribution partners and we’re happy to announce to that we’re one of them ( You won’t get this FIA from Advisor’s Excel, Gradient, Brokers, , or anyone else ?.  So, if you want info on it, click on the link above.

The Return Potential is Unmatched

Let’s look at a Compound Annual Growth Rate (CAGR) (how the money actually would have grown) as we compare the new product to other A-rated carriers who have the next best terms. I’ll do a 10-year lookback ending in December of 2021 (annual pt-to-pt with no fees/spreads).

10.25% cap = CAGR of 7.00%
9% cap = CAGR of 6.22% 

2.81% = US Aggregate Bond Index (what FIAs can replace in “balanced” portfolios)

Higher cap yielded 11% better returns (and crushed AGG)!

You might think a 50% par rate would be better than a 10.25% cap. But it’s not (at least going back 10 years. What’s surprising is the difference between a 40% and 50% par rate (20% difference).

50% par rate = CAGR of 6.30%
40% par rate = CAGR of 5.06%

It’s true that the caps going back 10 years on all products have fluctuated. The point of this comparison is simply to illustrate how big a difference the yield will be with a product that has significantly higher caps/par rates. Higher caps/par rates are always better!

While you can illustrate higher returns with certain VCI indexes, illustrating an FIA using the S&P 500 index with such strong terms is preferable to a VCI that doesn’t have a long track record.

Bail-Out Cap

High Bail-Out Cap! A bail-out cap is a number where if the cap falls below it, the client can get his/her money back WITHOUT a surrender charge. This is a big deal on all products in case the company you are with dumps caps in the future (American Equity, Nassau Re, and others).

The bail-out cap on the 10.25% annual pt-to-pt product is 5.25%!

Wow, is what you should be saying to yourself. Why? Because new cap rates on products as recently as 12 months ago were lower than 5.25%. And if you look at the renewal caps on some of the products you’ve sold in the last year, you will know that they are 3% or lower without a bail-out cap that allows your clients to get out of the product.

2-Year pt-to-pt—I’m not a fan of these, but if you like them, the par rate is 70% and the annual cap is 18.5% on this new product.