fbpx
North American | Get your Apps in Now! Income Changes Coming January 1, 2020

December 10, 2019

North American

Are you ready? Income changes coming to some fixed index annuities effective Jan. 1, 2020 (LPPs/LPAs)

BUSINESS RECEIVED IN 2019 MUST BE FULLY FUNDED AND ISSUED BY DEC. 31

2020 forms will be available on our website and through e-App on Dec. 17

In order to receive current rates and features, contracts must be issued and fully funded by Dec. 31. Anticipating not-in-good-order issues (NIGO) from a funds transfer delay?

  • New business courtesy calls: If you submit transfer business between Dec. 10 and Dec. 31 using the current 2019 disclosure, our New Business team will reach out to discuss your options prior to our sending the transfer request.
  • Anticipate fund transfer delays? Submit 2020 forms now. Using e-App? Upload the new 2020 paperwork.
  • Submitting 2019 forms? If the application is received in 2019, but the funds are received in 2020, the owner(s) and financial professional must submit the new disclosure, then re-date and initial the application for 1/1/2020 or later. The owner(s) will receive the new rates.

Get the new 2020 materials and new business forms now.

Need help with an illustration for the 2020 changes?
Call Sales Support 866-322-7066

Summary of January 1, 2020 Changes

To receive current rates:

  • NAC IncomeChoice┬« 10
    • Lifetime payment percentages (LPPs) are decreasing 10 bps
    • Guaranteed lifetime withdrawal benefit (GLWB) bonus is
      decreasing from 5% to 2%
  • NAC BenefitSolutions┬« 10
    • Lifetime payment amounts (LPAs) are decreasing
  • Strategic Design Annuity X
    • Rider charge increases from .95% to 1.15%
    • Guaranteed lifetime withdrawal benefit (GLWB) value rollup
      decreases from 200% to 150%

Questions? Call Sales Support at 866-322-7066
NorthAmericanCompany.com

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881
support@pfsinsurance.com

0 Comments

Submit a Comment

Contact Us

Contact a Pinnacle Financial Service representative today for assistance.

CallEmail