Great American Annuity Rates are Increasing Effective 8/7/2020
Great American announced this morning that they are increasing their annuity rates effective tomorrow, August 7th. This came as a pleasant surprise coming off a week with a half a dozen or so interest rate decreases.
If you are not familiar with Great American, they are a member of the Great American Insurance Group based out of Cincinatti, OH. They are a highly rated Insurance company with an A rating from A.M. Best.
Historically they have had strong accumulation as well and income products. However, their income products and income riders have been suspended for the past couple of months now due to circumstances surrounding COVID 19. With that said, they do offer a solid 3 year, 5 year and 7 year fixed index annuity lineup with multiple crediting and indexing options.
Great American Landmark 3 Annuity Rates
Great American Landmark 5 Fixed Index Annuity Rates
Great American Legend 7 Fixed Index Annuity Rates
It seems that 7 years is kind of the sweet spot right now. As you can see in the interest rates table above Great American Legend 7 offers six different crediting strategies and a declared rates:
- S&P 500 with an annual cap: 4.15%
- iShares US Real Estate 1-year with a cap: 4.75
- S&P 500 monthly sum with a cap: 1.50%
- SPDR Gold 1-year point to point with a cap: 5.00%
- US Retirees Spending 1-year after point to point wit a par rate: 55%
- S&P 500 Risk Control 1-year point to point with a cap par rate: 55%
Easily track the performance of our strategies’ underlying indices using their ticker symbols: S&P 500: SPX, S&P 500 Risk Control 10% Index: SPXAV10P, iShares U.S. Real Estate ETF: IYR, and S&P U.S. Retiree Spending Index: SPRETIRE, MSCI EAFE ETF: EFA
Minimum Guarantees: The guaranteed minimum declared rate is 1.00%. 1-year point-to-point strategies with cap have a minimum cap guarantee of 1.00% for contract duration. 1-year point-to-point strategies with participation rate have a guaranteed minimum participation rate of 5% for contract duration. Future indexed strategies could offer alternate options and rates. The guaranteed minimum surrender value is 87.5% at 1.00%, less withdrawals and applicable charges and adjustments.
Additional Purchase Payments: American Landmark 3 and 5 accept additional premium during the first two months of the contract. Purchase payments will be credited interest while in the holding account (purchase payment account) until terms begin on the 6th or the 20th of the month. After that time, amounts will be credited interest according to the selected strategy(ies). Holding account rate is equal to the declared rate. Rate lock does not apply to additional purchase payments received after the rate lock period at issue.
The S&P 500 Index, the S&P 500 Average Daily Risk Control 10% Price Return Index and the S&P U.S. Retiree Spending Index are products of S&P Dow Jones Indices LLC, or its affiliates (“SPDJI”), and have been licensed for use by Great American Life Insurance Company. Standard & Poor’s®, S&P®, S&P 500®, S&P 500 Average Daily Risk Control 10%™, SPDR® and STANDARD & POOR’S DEPOSITORY RECEIPTS® are trademarks of Standard & Poor’s Financial Services LLC, (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Great American Life. Great American Life’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties makes any representation regarding the advisability of investing in such products nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index, the S&P 500 Average Daily Risk Control 10% Price Return Index or the S&P U.S. Retiree Spending Index.
The iShares MSCI EAFE ETF and the iShares U.S. Real Estate ETF are distributed by BlackRock Investments, LLC. iShares®, BLACKROCK®, and the corresponding logos are registered and unregistered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”), and these trademarks have been licensed for certain purposes by Great American Life Insurance Company. Great American Life annuity products are not sponsored, endorsed, sold or promoted by BlackRock, and purchasers of an annuity from Great American Life do not acquire any interest in the iShares MSCI EAFE ETF or the iShares U.S. Real Estate ETF nor enter into any relationship of any kind with BlackRock. BlackRock makes no representation or warranty, express or implied, to the owners of any Great American Life annuity product or any member of the public regarding the advisability of purchasing an annuity, nor does it have any liability for any errors, omissions, interruptions or use of the iShares MSCI EAFE ETF or the iShares U.S. Real Estate ETF or any data related thereto.
Products issued by Great American Life Insurance Company®, member of Great American Insurance Group® (Cincinnati, Ohio) under contract form numbers P1112916NW and P1134618NW. Contract form numbers and features may vary by state. All guarantees based on the claims-paying ability of Great American Life. All non-guaranteed components of an index formula may change at any time.