Security Benefit Debuts New Crediting Options For Total Value Annuity
TOPEKA, Kan., Jan. 12, 2015 (GLOBE NEWSWIRE) -- Security Benefit Life Insurance Company (Security Benefit), a leader in the U.S. retirement savings market, announced today the addition of 1-year and 2-year interest crediting options based on the BNP Paribas High Dividend Plus Index (HD Plus Index) for its Total Value Annuity (TVA).
"The Total Value Annuity has, since its introduction in 2012, been a critical piece of an elite team of financial advisors' toolkits by offering growth potential along with the ability to create a guaranteed stream of lifetime income, or to leave a legacy for others," said Doug Wolff, Security Benefit's President. "The addition of both 1 and 2-year interest crediting options based on the BNP Paribas High Dividend Plus Index further enhances one of the industry's leading fixed index annuities and provides advisors with additional tools to secure successful retirement outcomes for their clients."
The HD Plus Index is designed to find high-dividend stocks and attempt to deliver strong returns with a reduced level of volatility and risk.
The rules-based strategy starts with a dividend-focused stock portfolio and adds a yield enhancement overlay as well as a risk reduction overlay.
Every month, the HD Plus Index selects stocks that have a high probability of consistently paying strong dividends in the future. On average, the HD Plus Index is typically comprised of 75 to 80 highly liquid, non-financial U.S. stocks. The Index also seeks to limit volatility through cash exposure that is actively adjusted to achieve a targeted volatility rate of 6 percent, which is less than half of the S&P 500(R) Index's historical volatility.
"We're delighted to be working with Security Benefit as they continue to introduce leading fixed index annuity products to the U.S.
retirement savings market," commented Tomer Seifan, Head of Institutional Solutions in the New York office of BNP Paribas. "The HD Plus Index combines a strong, fundamental and rules-based high dividend stock-picking methodology with a protective overlay with the aim of generating stable and consistent returns. We are excited that this flagship index is being offered for the first time in both a 1-year and 2-year crediting option as part of the Total Value Annuity product."
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