What Is APP?
APP stands for Accumulation Protector PlusSMAnnuity, a fixed indexed single premium deferred annuity contract. The single premium is allocated based on the Policyholder’s choice across a Fixed Account and Indexed Accounts whose values are linked to three equity indices: the CS Momentum Index, the CS ESG Macro 5 Index, and the Standard and Poor’s Composite Stock Price Index (hereafter referred to as the “S&P 500®”). The APP is distinct in the industry because it offers a unique 10-year guarantee of participation rates through the CS Momentum Index and the CS ESG Macro 5 Index with the selection of the One-year point-to-point or Two-year point-to-point crediting strategies.* The product is offered in both non-qualified and tax-qualified markets.
What is a Fixed Indexed Annuity?
A Fixed Indexed annuity is a tax-deferred, lower risk, financial option designed to grow the policyholder’s premium and protect it if the market drops. This product is typically accompanied by multiple crediting strategies that the policyholder can choose to participate in. In addition to growth potential, a Fixed Indexed Annuity offers protection of principal in several different ways. The policyholder will not lose money if the index value drops because the policyholder’s money is allocated to the annuity itself rather than directly to the index (or indices). Additionally, the indexed accounts typically offer a minimum guaranteed interest rate of at least 0%.
Protect Your Principal
Protection is the cornerstone of the Accumulation Protector PlusSM Annuity. Whether the market goes up, down, or remains the same, the policyholder’s principal is guaranteed not to decrease *due to market performance and is protected through the APP’s Fixed and Indexed Accounts.
* If Rate Enhancement Rider is purchased, the principal will not decrease due to market performance but could decrease due to the rider fee.
The APP gives the policyholder exclusive access to the CS Momentum Index, the CS ESG Macro 5 Index, the well-established Standard and Poor’s Composite Stock Price Index (“S&P 500®” Index), and a Fixed Account that provides a guaranteed rate of return. The CS Momentum Index, the CS ESG Macro 5 Index, S&P 500® Index, and the Fixed Account provide opportunities to accumulate wealth over time.
Choose from Flexible Crediting Strategies
Not everyone has the same financial goals, nor the same time horizon for achieving those goals. It is because of these different objectives that Flexibility is another key component of the Accumulation Protector PlusSM Annuity. This annuity offers a diversified set of fixed and indexed crediting strategies with 1, 2, or 3 year periods that allow the policyholder and their advisor to choose the accounts and periods that most align with their goals. Additionally, the policyholder can adjust the allocations on the policy anniversary, coinciding with the end of the crediting period, to continue to meet their changing needs.
Preserve Your Legacy
Help your client achieve greater financial confidence as well as their lifestyle, retirement income, and legacy goals by taking advantage of the flexible options provided by the Accumulation Protector PlusSM Annuity. These strategies were created to help protect what your client has worked hard for. Additionally, the APP was designed to provide your client with opportunities to accumulate wealth, so they can rest easy in retirement knowing they’re preserving the legacy they have built.
*The Participation Rates for the CS Momentum Index One-year point-to-point and Two-year point-to-point crediting strategies are guaranteed for 10 years from the annuity issue date, provided that Atlantic Coast Life Insurance Company continues to have access to the CS Momentum Index. The Participation Rates for the CS ESG Macro 5 Index One-year point-to-point and Two-year point-to-point crediting strategies are guaranteed for 10 years from the annuity issue date, provided that Atlantic Coast Life Insurance Company continues to have access to the CS ESG Macro 5 Index.
Fixed Indexed Annuity
A Fixed Indexed Annuity offers access to more interest growth potential as the market performs positively.
S&P 500® Index
The S&P 500® Index measures the stock performance of the 500 largest publicly-traded companies in the U.S.
CS Momentum Index
The CS Momentum Index is a global multi-asset index that dynamically allocates across its components using a momentum strategy and risk-adjusted weightings, combined with a risk control mechanism.
CS ESG Macro 5 Index
The CS ESG Macro 5 Index is a global multi-asset index that applies an innovative strategy combining environment, social, and governance (ESG) equity components with macro components, and a daily risk control mechanism that targets a 5% volatility.
A global equity component offering exposure to four regional MSCI indices, designed to maximize exposure to positive environmental, social and governance scores.
A basket of macro components that seeks to identify trend patterns in the markets and to benefit from the difference in yields between different instruments.
A daily adjustment to target Index volatility at 5% and attempt to generate consistent returns over time.
CS ESG Macro 5 Index
The CS ESG Macro 5 Index is a rules-based index that combines an ESG equity component with macro components and is complimented by a risk-control mechanism.