PIA and PPC California Updates

Early in 2020, Personal Income Annuity (PIA) and Personal Protection Choice (PPC) became available for sale in California through Nassau Life and Annuity Company (NLA). We’re proud of the value, income, and protection these fixed indexed annuities provide to your current and potential CA clients.

Effective March 15, 2021, a number of product updates will take effect for PIA and PPC in California for both inforce policies and new business issued through NLA*. Current CA clients will receive revised issue packages via mail explaining these new rates/updates:

  • Guaranteed minimum fixed account interest rate will increase to 1%
  • A shorter, 9-year surrender charge schedule with lower charges: Group D
  • Market Value Adjustment limited to +/- 0.5% of contract value
  • Total Guaranteed Value Premium Factor will start at 87.5% of premium instead of 91%
  • Terminal Illness Period for the Terminal Illness Waiver will change to 12 months instead of 6 months

Surrender Charge Schedule Changes

CONTRACT YEAR OLD SURRENDER CHARGE % NEW SURRENDER CHARGE %
1 10% 7.8%
2 9% 6.9%
3 8% 6.0%
4 7% 5.1%
5 6% 4.2%
6 5% 3.2%
7 4% 2.3%
8 3% 1.4%
9 2% 0.4%
10 1% 0%
11+ 0% 0%

Transition Rules

  • PIA/PPC applications signed on or before March 14, 2021 will be issued the new CA rates/updates.
    • An acknowledgement form signed by the producer confirming that they reviewed the updated Indexed Annuity product disclosure document associated with their client’s annuity purchase and determined it still meets their financial needs.
  • PIA/PPC applications signed on or after March 15, 2021 will receive the new CA rates/updates. No additional paperwork will be required.
  • PIA/PPC inforce contracts issued on or before March 14, 2021 will receive the new CA rates/updates retroactively from the issue date.
    • Revised issue packages will be mailed to each contract owner.

Thank you for your continued support of Nassau.

*Only NLA contracts are impacted. Any California contracts previously issued through PHL Variable Insurance Company are not impacted. The Care Rider for PPC remains unavailable in CA. The Nursing Home Waiver is also not available in California.

Disclosures

For producer use only. Not for distribution to the public.

Product features, rider options and availability may vary by state. Actual product details, including all terms and conditions that apply, are contained in the annuity contract. Product sales must be appropriate based on a comprehensive evaluation of the customer’s financial situation, needs, and objectives. Lifetime payments and guarantees are based on the claims-paying ability of the issuing company.

Nassau Personal Income Annuity (19FIA, ICC19EIAN and ICC19EIA) and Personal Protection Choice (19FIA,ICC19EIAN) are issued by Nassau Life and Annuity Company (Hartford, CT). In California, Nassau Life and Annuity Company does business as “Nassau Life and Annuity Insurance Company.” In New York, annuities are issued by Nassau Life Insurance Company (East Greenbush, NY). Nassau Life and Annuity Company is not authorized to conduct business in MA, ME and NY, but that is subject to change. Nassau Life and Annuity Company and Nassau Life Insurance Company are subsidiaries of Nassau Financial Group. The insurers are separate entities and each is responsible only for its own financial condition and contractual obligations.

Insurance Products: NOT FDIC or NCUAA Insured | NO Bank or Credit Union Guarantee.

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Anthony LaRosaPIA and PPC California Updates