Please remember that the current version of Empire’s GMWB is changing on October 20th. If you have prospects or clients that are considering purchasing or making additional contributions in excess of $25,000, October 20th will be the last day version 2.1 is available. This is a great opportunity to open new accounts or add to existing contracts. And, start PACs on existing accounts. To recap the changes and transition rules:
October 20th is the last day 2.1 will be for sale, with no deposit size limits between now and then
For the balance of 2017 after Oct 20, the most that can be deposited into a 2.1 contract is $25,000
For 2018 the most that can be deposited into a 2.1 contract will be $25,000
Thereafter, 2.1 will be closed to new deposits except PACs
PACs are included in the $25,000 caps.
They will honor T2033s signed before Oct 20 (arriving at Empire by December 8th) for deposit into version 2.1
The GMWB and MER fees are being reduced marginally in the new version
The bonus will now be 4% and only available for a maximum of 20 years
Resets will continue to be tri-annual
The bonus base will no longer enjoy the potential to reset
The maturity and death benefit guarantees will remain at 75/75
Each age will have its own payout rate rather than being increased every 5th year.
Take care, Scott Edgington Director of Wealth Qualified Financial Services firstname.lastname@example.org 416-786-4140