This Is an Ideal Time To Check Out Athene Accumulator 10
Among the most prominent players in the annuity world is Des Moines-based Athene – technically Athene Annuity and Life Company — and there is a sharp distinction between the company and virtually all other annuity purveyors. Many of them also sell life insurance, long-term care insurance, disability insurance, and sometimes even automobile insurance.
This is the difference – most annuity companies are diversified insurance providers. Athene, by contrast, focuses solely on annuities. (The word “life” remains in its former title, but Athene no longer sells life insurance.) This, in part, is why it has consistently offered among the most generous annuity terms. The company tends to leave more money on the table because it doesn’t have to worry about all kinds of diversified insurance claims.
This is obviously a plus for Athene customers. And while they are probably unaware of Athene’s distinction, they do know that Athene is often the place to go if you’re in the market for an annuity. That’s why Athene has been the No. 1 seller of highly popular fixed-indexed annuities (FIAs) – annuities that provide exposure to the stock market while guaranteeing no customer losses in a down market – for three years in a row.
It should come as no surprise, then, that Athene Accumulator 10 is currently offering the best terms for FIAs on the market. The kingpin is Athene Accumulator 10. Customers who invest at least $100,000 in this annuity and decide to invest in the highly popular S&P 500 index, receive a cap rate of 12.25% annually. Those who invest less still get a generous 11.5% cap rate.
And those who decide to invest in shorter-term five- and seven-year contrasts also get one of the best S&P 500 cap rates in the industry.
Customers who invest in the BNP Paribas Multi Asset Diversified 5 index, a so-called low volatility index also come out at the top. Those who fork over at least $100,000 currently receive a whopping 380% index participation rate over two years in the 10-year version of Athene Accumulator. Those who invest in the shorter seven and five-year versions of the product receive a participation rate only marginally less.
Competitors anywhere near this ballpark charge customers an additional fee, unlike Athene Accumulator, making the latter yet more attractive.
For those perhaps concerned that this almost sounds too good to be true, they need not worry. Athene has a stellar ‘A’ rating from A.M. Best — near the apex of the ratings ladder. This reflects the company’s impressive financial stability.
Some perspective is in order. Athene Accumulator trotted out these unusually handsome terms in mid-November. While its terms are enviable, the upward direction they have been taking since March/April 2022 has been par for the course for most annuity competitors because terms have been rising in sync with rising interest rates. The benchmark 10-year Treasury note rose from 1.7% back then to a peak of 4.25% in October. Since then, they have hovered mostly between 3.4% to 3.6%. Annuity terms are still at multi-year highs, far more attractive than they had been across the board.
As interest rates continue to fall, as economists and market analysts project, current annuity terms are highly likely to fall as well. In fact, a number of annuity purveyors have already begun trimming their terms.
Athene Accumulator has yet to do so, and there is a chance that things may stay this way for months because Athene has a history of maintaining better annuity terms for longer. And when at some point they do come down, expect them to remain well above the competitive fray.
Overall, the key point – once again –is that Athene Accumulator’s cap rates and index participation rates are almost always on top or among the best. “I can’t find anything better,” flatly says an annuity broker familiar with the product. If you’re considering buying your first annuity or an additional annuity, this should be of at least some interest.