SYMETRA ACCUMULATOR IUL: INDEX CAP DECREASE EFFECTIVE MONDAY, SEPT. 16, 2019

SYMETRA ACCUMULATOR IUL: INDEX CAP DECREASE EFFECTIVE MONDAY, SEPT. 16, 2019  

Due to the continued low interest rate environment, increased hedging costs and ongoing market volatility, we will be decreasing Symetra Accumulator IUL’s index cap by 1% on the S&P 500® Index. While we are decreasing our caps on the S&P 500® Index, we will be increasing our participation rate on the JPMorgan ETF Efficiente® 5 Index 1-Year and 2-Year blended strategies.

These are our first cap and participation rate changes to the indexes since the launch of our Accumulator IUL product in October 2017. These changes will be effective September 16, 2019, and will impact all in-force policies and new business, including new premium, transfers (including DCA) and reallocations of matured segments. We will be updating our illustration software and systems to correspond with the dates below.

Important dates
Sept. 6, 2019: The date on which all Accumulator IUL cases must be issued/paid to receive the existing cap and participation rates. (This includes 1035 exchanges.)Sept. 14, 20191: Segments created on this date will receive the old cap rates; policies must be in-force and premium/and or transfer instructions received at Symetra no later than this date.

Sept. 16, 2019: Segments created after the close of business on this date or later will receive the new cap and participation rates. This is also when our illustration systems will be updated and new max illustrated rates will be in effect.

Index cap changes

Indexed interest strategy Old index caps New index caps
S&P 500® Index Base 10% 9%
S&P 500® Index Core 12% 11%
S&P 500® Index Select 14% 13%

Participation rate changes

Indexed interest strategy Old participation rate New participation rate
Current Guaranteed
minimum
Current Guaranteed
minimum
JPMorgan ETF Efficiente®Base 115% 50% 125% 55%
JPMorgan ETF Efficiente®Core 130% 65% 140% 70%
JPMorgan ETF Efficiente®Select 145% 80% 155% 85%
Indexed interest strategy Old participation rate New participation rate
Current Guaranteed
minimum
Current Guaranteed
minimum
2-Year S&P 500®JPMorgan ETF Efficiente®Blend—Base 120% 80% 165% 110%
2-Year S&P 500®JPMorgan ETF Efficiente®Blend—Core 140% 100% 180% 130%
2-Year S&P 500®JPMorgan ETF Efficiente®Blend—Select 160% 120% 195% 150%

Please note: There are no changes to the S&P 500® 2-Year Blend cap and participation rates.

New max illustrated rates
As a result of the cap and participation rate changes, our AG 49 maximum illustrated rates will also change as follows:

  • Base Strategies will change from 6.12% to 5.63%
  • Core Strategies will change from 6.96% to 6.58%
  • Select Strategies will change from 7.76% to 7.39%

Policyholders will see revised index caps beginning September 14 on our website and with their first confirmation statements.

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