Lafayette Life Introduces Fixed Indexed Annuity
October 20, 2015 by N/A
Goldman Sachs-designed multi-asset class index featured in allocation option
CINCINNATI — October 13, 2015 — The Lafayette Life Insurance Company, a member of Western & Southern Financial Group, Inc. (Western & Southern), recently announced the introduction of Marquis SP, a single-premium deferred fixed indexed annuity.
“Ongoing, low interest rates are a risk that jeopardizes the retirement security of many Americans,” said Bryan C. Dunn, president and CEO of The Lafayette Life Insurance Company. “Marquis SP is designed to help advance retirement confidence with growth potential and income guarantees in one insured vehicle.”
The growth potential in Marquis SP comes in four interest-crediting options:
- GS Momentum Builder® Multi-Asset Class (GSMAC) Index, Three-Year Point-to-Point, determines and locks in positive interest, if any, every three index years, based in part on the change in value of the GSMAC Index. Custom designed by Goldman Sachs, the index has a volatility control feature that aims to minimize large swings in the index and limit exposure to market lows and highs. No interest rate cap or interest spread fee limits upside index potential. The account value can never decline due to index performance. A participation rate applies to the credited rate.
Ongoing, low interest rates are a risk that jeopardizes the retirement security of many Americans
- S&P 500® Index, One-Year Point-to-Point, determines and locks in positive interest, if any, annually, based in part on the change in value of the S&P 500 Index from the beginning to the end of a one-year period. The account value can never decline due to index performance. A participation rate and an interest rate cap apply to the credited rate.
- S&P 500® Index, One-Year Monthly Average, determines and locks in positive interest, if any, annually, based in part on the average value of the S&P 500 Index measured monthly over a one-year period. The account value can never decline due to index performance. A participation rate and an interest rate cap apply to the credited rate.
- Fixed Interest Option, One Year, credits daily interest at a fixed rate declared in advance and guaranteed for an index year. The fixed option always credits at least 1 percent.
“We are excited to collaborate with Goldman Sachs in offering a distinctive, custom-designed allocation option,” Dunn said. “This proprietary index-design methodology gives annuity owners exposure to diversified global asset classes and long-term potential for more consistent returns. It offers added choice and potential as Marquis SP owners allocate among four interest-crediting options, including three indexed-interest options, according to their individual needs and outlook for retirement security.”
Marquis SP is designed both to protect its accumulated account value from losses due to negative changes in the market indexes associated with the annuity, as well as to guarantee a lifetime income.
