Minimum Rates to be Lowered on BAA Products Effective October 1, 2010

  • Originally published September 24, 2010 , last updated December 31, 2015
Minimum Rates to be Lowered on BAA Products Effective October 1, 2010

Due to the low interest-rate environment, Aviva is announcing changes to the BalancedAllocation Annuity products, effective for all BAA applications received after September 30, 2010:

  • Lowering the Standard Non-Forfeiture Minimum Interest Rate from 2.25% to 1%. This is the rate used to calculate the Minimum Guaranteed Contract Value.
  • Lowering the Minimum Declared Rate from 1.5% to 1%.

You have until September 30, 2010 to submit your BAA business and take advantage of the current rates.

These types of rate adjustments are not isolated to just one carrier. Companies across the industry are reducing interest rates on fixed annuities.

This is a direct reaction to what is occurring in the broader economy. Treasury bond yields are currently at or near all-time lows. NPR reported on August 20 that “the interest rate on two-year Treasury bonds hit an all-time low this morning: 0.47 percent. Yields on 10- and 30-year bonds are also super low.”

If a producer sold annuities primarily based on rates and bonuses in the past, that producer may struggle in this environment. Now is the time when you need to identify your clients’ needs and come up with solutions to their problems.

Senior Market Sales can show you proven concepts to help you with:

  • Clients looking to generate income now for themselves and their spouse
  • Clients looking to accumulate money for income later
  • Clients looking to protect and grow their legacy for the next generation

For coaching on how to incorporate these concepts on your next appointment, call 1-877-645-4939.