Security Benefit Debuts New Crediting Options for Total Value Annuity
January 12, 2015 by GlobeNewswire
TOPEKA, Kan., Jan. 12, 2015 (GLOBE NEWSWIRE) — Security Benefit Life Insurance Company (Security Benefit), a leader in the U.S. retirement savings market, announced today the addition of 1-year and 2-year interest crediting options based on the BNP Paribas High Dividend Plus Index (HD Plus Index) for its Total Value Annuity (TVA).
“The Total Value Annuity has, since its introduction in 2012, been a critical piece of an elite team of financial advisors’ toolkits by offering growth potential along with the ability to create a guaranteed stream of lifetime income, or to leave a legacy for others,” said Doug Wolff, Security Benefit’s President. “The addition of both 1 and 2-year interest crediting options based on the BNP Paribas High Dividend Plus Index further enhances one of the industry’s leading fixed index annuities and provides advisors with additional tools to secure successful retirement outcomes for their clients.”
The HD Plus Index is designed to find high-dividend stocks and attempt to deliver strong returns with a reduced level of volatility and risk. The rules-based strategy starts with a dividend-focused stock portfolio and adds a yield enhancement overlay as well as a risk reduction overlay.
Every month, the HD Plus Index selects stocks that have a high probability of consistently paying strong dividends in the future. On average, the HD Plus Index is typically comprised of 75 to 80 highly liquid, non-financial U.S. stocks. The Index also seeks to limit volatility through cash exposure that is actively adjusted to achieve a targeted volatility rate of 6 percent, which is less than half of the S&P 500(R) Index’s historical volatility.
“We’re delighted to be working with Security Benefit as they continue to introduce leading fixed index annuity products to the U.S. retirement savings market,” commented Tomer Seifan, Head of Institutional Solutions in the New York office of BNP Paribas. “The HD Plus Index combines a strong, fundamental and rules-based high dividend stock-picking methodology with a protective overlay with the aim of generating stable and consistent returns. We are excited that this flagship index is being offered for the first time in both a 1-year and 2-year crediting option as part of the Total Value Annuity product.”
For more information about the Total Value Annuity, including the BNP Paribas High Dividend Plus Index and other innovative features, please call Security Benefit at 800-888-2461.
About Security Benefit
Security Benefit Life Insurance Company is a 122-year-old, Kansas-based insurance company, which in recent years has become one of the fastest growing companies in the U.S. retirement market. Through a combination of innovative products, exceptional investment management and a unique distribution strategy, Security Benefit has become a leader in a full range of retirement markets and wealth segments. To learn more about Security Benefit, visit www.securitybenefit.com.
The Total Value Annuity (Form 5700 (3-12) and ICC12 5700 (3-12)), a fixed index flexible premium deferred annuity contract, is issued by Security Benefit Life Insurance Company. Product features and availability may vary by state.
The BNP Paribas High Dividend Plus Index (the “HD Plus Index” or “BNPP Index”) is the exclusive property of BNP Paribas or one of its affiliates (BNP Paribas and its affiliates collectively, are hereinafter called “BNPP”) and is determined, composed and calculated by BNPP. “BNP”, “BNPP”, “BNP Paribas”, “The BNP Paribas High Dividend Plus Index” and “HD Plus Index” (collectively, the “BNPP Marks”) are trademarks or service marks of BNPP and have been licensed for use for certain purposes by Security Benefit Life Insurance Company (“SBL”). The SBL fixed index annuity is not, in whole or in part, sponsored, structured, priced, endorsed, offered, sold, issued or promoted by BNPP or any of its affiliates, or any third party licensor of information to BNPP. BNPP’s only relationship to SBL is the licensing of the HD Plus Index and BNPP Marks for certain purposes.
BNPP does not have any liability with respect to the SBL fixed index annuity in which an interest crediting option based on the HD Plus Index is included, and is not liable for any loss relating to the SBL fixed index annuity, whether arising directly or indirectly from the use of the HD Plus Index, any BNPP Index methodology, any BNPP Mark or otherwise.
No purchaser, seller or holder of an SBL fixed index annuity, or any other person or entity, should use or refer to any BNPP Mark or other BNPP trade name to sponsor, endorse, market or promote the SBL fixed index annuity without first contacting BNPP. Under no circumstances may any person or entity claim any affiliation with BNPP without the prior written permission of BNPP.
In calculating the performance of the HD Plus Index, BNPP deducts a servicing cost of 1% per annum, calculated on a daily basis. In addition, the HD Plus Index methodology embeds certain costs which cover among other things, transaction, replication and funding costs. Such costs (if any) may vary over time with market conditions as determined by BNPP acting in a commercially reasonable manner. These costs reduce the potential positive change in the HD Plus Index and thus the amount of interest that will be credited to the SBL fixed index annuity that includes the HD Plus Index.
The volatility control applied by BNPP may reduce the potential positive change in the HD Plus Index and thus the amount of interest that will be credited to the SBL fixed index annuity that includes the HD Plus Index.
Contact:
Media Contacts: Peter MacKellar, Communications Strategy Group, (720) 726-5456, pmackellar@csg-pr.com
Chad Liby, Security Benefit, (785) 438-3345, chad.liby@securitybenefit.com
