Returns “through a magnifying glass” is what the Athene Amplify contract is all about. What does a magnifying glass do? It makes things larger than they would otherwise be if you were not using a magnifying glass. That is exactly what the Athene “Amplify” variable index annuity does as it pertains to the returns in the account – it makes them larger than they would otherwise be if not using a magnifying glass.
The Athene Amplify product is not your typical variable index annuity. Like other variable index annuities, the Athene Amplify contract gives you upside potential with downside protection. The difference is that the upside potential in the Amplify contract is where we can bust out the magnifying glass. For example, right now, you can build the contract to participate in the S&P 500 Index with no cap and a 130% upside participation rate, and you have a 20% buffer built in to protect against losses.
This specific build is a 6-year point-to-point term like many other variable index annuities out there, but I want to be clear about one thing that initially slipped by me because I was used to the way just about all other variable index annuities work: The 130% is not a cap. The design I mentioned above is an uncapped design. The contract is giving you 130% of your index returns and a downside protection of 20%. In comparison, where other variable annuities may give you a cap of around 125% growth on 20% downside protection, Athene’s Amplify contract will not cap that growth, and it will add 30% to whatever that uncapped growth number is.
Is this too good to be true? No, but it is too good to be free, and that takes us to a second difference between the Athene Amplify contract and most other variable index annuities. The Athene Amplify contract described above does carry a 0.95% annual charge. So, I guess you would have to ask yourself one question when considering a variable index annuity: Do you want one with no explicit fees to the client, or is 0.95% a year worth an extra 30% added to your earnings?
For more information on the Athene Amplify contract, please see the attached material and/or contact the Athene annuity sales desk at (888) 266-8489.