Due to the continued low-interest-rate environment, increased hedging costs and ongoing market volatility, we will be decreasing Symetra Accumulator IUL’s index cap by 1% on the S&P 500® Index. While we are decreasing our caps on the S&P 500® Index, we will be increasing our participation rate on the JPMorgan ETF Efficiente® 5 Index 1-Year and 2-Year blended strategies.
These are our first cap and participation rate changes to the indexes since the launch of our Accumulator IUL product in October 2017. These changes will be effective September 16, 2019, 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.
Sept. 6, 2019: The date on which all Accumulator IUL cases must be issued/paid to receive the existing cap and participation rates. (This includes 1035 exchanges.)
Sept. 14, 20191: 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.
Sept. 16, 2019: Segments created after the close of business on this date or later will receive the new cap and participation rates. This is also when our illustration systems will be updated and new max illustrated rates will be in effect.