Due to the unprecedented market volatility and historically low interest rate environment, we will be decreasing Symetra Accumulator IUL’s index cap and participation rates.
These changes will be effective May 14, 2020, 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
May 1, 2020: New cap, participation and max illustrated rates will be available on Symetra Life Illustrator and Winflex.
May 8, 2020: The date on which all Accumulator IUL cases must be issued/paid to receive the existing cap and participation rates. (This includes 1035 exchanges.)
May 14, 2020: 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.
May 15, 2020: Segments created after the close of business on this date or later will receive the new cap and participation rates.
| Indexed interest strategy | Old index caps | New index caps |
|---|---|---|
| S&P 500® Index Base | 9% | 8.50% |
| S&P 500® Index Core | 11% | 10.50% |
| S&P 500® Index Select | 13% | 12.50% |
Participation rate changes
Below you will find our participation rate changes. Please note, there are no changes to the S&P 500® 2-Year Blend cap and participation rates.
| Indexed interest strategy | Old participation rate | New participation rate |
|---|---|---|
| JPMorgan ETF Efficiente® Base | 125% | 120% |
| JPMorgan ETF Efficiente® Core | 140% | 135% |
| JPMorgan ETF Efficiente® Select | 155% | 150% |
| Indexed interest strategy | Old participation rate | New participation rate |
|---|---|---|
| 2-Year S&P 500® JPMorgan ETF Efficiente® Blend—Base | 165% | 150% |
| 2-Year S&P 500® JPMorgan ETF Efficiente® Blend—Core | 180% | 165% |
| 2-Year S&P 500® JPMorgan ETF Efficiente® Blend—Select | 195% | 180% |
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 5.67% to 5.41%
- Core Strategies will change from 6.62% to 6.39%
- Select Strategies will change from 7.44% to 7.25%
Policyholders will see revised index caps beginning May 14- on our website and with their first confirmation statements.