Annuity Product Changes In Texas

For Policies Issued On or After June 1, 2010

If you sell annuities in the state of Texas, please take a minute to read this important announcement.

As you may already be aware, there are some upcoming changes to annuity products sold in the state of Texas* (see eNews announcement). The new state regulations will effectively limit withdrawal charges for higher issue ages. LSW annuity products issued after June 1, 2010 will either have lower maximum issue ages or reduced withdrawal charges for higher issue ages.

These changes are affecting products industry wide and we want you to be prepared going forward. Please consider some great alternative products:

SecurePlus Premier 3 (Policy Form 7953) is a single premium indexed annuity that offers a 3% immediate interest credit at the time of deposit and is only a 9-year surrender period. In the first policy year, if the client is older than 591/2, they can access the 3% bonus by check.

SecurePlus Gold (Policy Form 7938, 7912, 7918) is LSW’s time tested 10 year flexible premium deferred annuity that offers easy to understand crediting methods, great rates, and excellent liquidity. It continues to be one of the top LSW annuities. Start with as little as $100 month. Great alternative for the SecurePlus Elite.

RetireMax Millennium Plus (Policy Form 7885) is a single premium traditional fixed annuity for Qualified and Non-Qualified policies. During the first policy year, policyowners will receive an additional 5% interest. As of April 1, 2010 – the current first year rate is 7.4%!

RetireFive/Millennium Flex (Policy Form 7934) Retire Five is a flexible or single premium traditional fixed annuity for non-qualified and qualified policies (excluding 403b or 457). For 403(b)/457 policies, please use the Millennium Flex. These policies give policyowners an additional 5% interest on all monies received during the first policy year.

If you have any questions about the upcoming changes, or would like to know details on commissions, please contact the Annuity Sales Desk at 800-906-3310.

*The regulations and effective date are applicable to all life insurance companies doing business in Texas. Policies issued prior to June 1, 2010 are not affected nor are any contributions made to such policies on or after June 1, 2010. Policies issued after May 31, 2010 are required to conform to new regulations.

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