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Products December 3, 2012
Genworth Puts a Spin on Interest Crediting
For consumers
anxious about a low interest rate environment, Genworth rolled out CapMax, available
only on Genworth’s SecureLiving Index Annuities.
Reported by Jill Cornfield
The firm says the unique methodology of this strategy can outperform other existing index crediting strategies during consecutive years of S&P 500 Index growth. CapMaxis designed to take advantage of periods of positive momentum in the S&P 500 Index to create the opportunity for greater growth potential.
Instead of locking in gains after just one year, CapMax allows owners of SecureLiving Index Annuities to roll forward a portion of their current year’s interest credit in exchange for the opportunity to multiply next year’s growth potential with the CapMax Multiplier by as much as three times. The contract value of this fixed annuity is protected against downturns in the S&P 500 Index.
“With the Federal Reserve saying it plans to keep interest rates very low for at least the next two and half years, those seeking reliable, sustainable sources of retirement income—and the financial professionals who serve them—are facing a challenging environment,” said Paul Haley, senior vice president and annuity leader at Genworth.