SelecTrack Annuities in the Quick Quoter

Earlier this month we released the last of our annuities into the Quick Quoter, the SelecTracks! There are three different versions of the product: the SelecTrack 5, 7, and 10. Follow along as we highlight some of the key features of this product.

To get started, we will cover a few basic descriptions of the product. The SelecTracks are redeterminable guaranteed interest rate annuities. What that means is the initial guaranteed interest rate is set at issue for each policy and applies until the end of the surrender charge period. This period is equal to the number after the SelecTrack. For example, the SelecTrack 5 has a surrender charge period of 5 years.

Once the policy has gotten past the surrender charge period, there are a few options that the client could take: 

1. withdraw the accumulated value of the policy as a lump sum; 
2. select one of the available payout options; 
3. leave the value of the annuity policy on deposit at an interest rate determined annually; or 
4. apply for a new SelecTrack policy with a new interest rate guarantee period and new surrender charges

Now, there has been a bunch of talk about surrender charges, but we haven't actually gone over what exactly the charge amount is, or when it even applies. For the SelecTracks, an insured may withdrawal up to 10% of the contract value without a surrender charge. One partial surrender is available each contract year without a surrender charge or market value adjustment, beginning in year one. The other option is you may elect to receive automated interest payments or systematic withdrawals. Once these withdrawals exceed 10% of the beginning-of-contract-year value, surrender charges will be assessed. Below is a chart showing the surrender charge percentages based on the product and year.

This chart also reinforces the length of the surrender charge. As mentioned before, you can see the SelecTrack 5 only has charges through year 5, the 7 has charges through year 7, and the 10 has charges through year 10, based on when the percentages zero out in the chart.

Now, head on over to the Quick Quoter and check out our newest addition, the SelecTrack Annuities!

Please don't hesitate to contact us if you have any questions or need help with any step of quoting our annuity products!

Illustration Development Team
1-800-572-2467 x8162
illustrationhelp@kclife.com