Trio of Fixed Index Annuities From RBC Insurance Spotlight New Interest Crediting Strategy, Link to Dow Jones Industrial Average

GREENVILLE, S.C., Nov. 10 /PRNewswire/ -- Three new fixed index annuities from RBC Insurance utilize an innovative, client-friendly design that combines safety, flexibility, and liquidity with innovative asset diversification and interest crediting strategies.

The RBC Enhanced Choice 8, Choice 10 and Enhanced Choice 12 index annuities are among the first in the industry to utilize quarterly cap interest crediting, a hybrid crediting strategy that computes interest based on the sum of four capped quarterly results.

"By blending the more potent upside of a monthly cap strategy with the simplicity of annual point-to-point, quarterly cap crediting combines the advantages of the two methods most commonly used in index annuities," said Ronald DiCicco, vice president, sales and marketing for RBC Insurance.

The RBC Choice Series of fixed index annuities employ a client-focused design that includes two indexed accounts linked to the Dow Jones Industrial Average(sm). The Dow is viewed as the market standard by most consumers.

"With indexed accounts tied to the Dow, clients benefit from the familiarity and consistency of the most widely recognized market index. And though the Dow historically has tracked closely with the S&P 500, it has shown stronger upside in recent years," said DeCicco.

Quarterly cap crediting is used in one of the two indexed accounts. The other indexed account uses a monthly averaging strategy with either a cap or a spread fee. There is also a fixed account that performs like a traditional fixed annuity. Accounts automatically rebalance at each contract anniversary, and clients can reallocate assets annually without restriction.

A key goal of the RBC Choice Series is to minimize the complexity and uncertainty producers and clients sometimes associate with fixed index annuities. The combination of indexed and fixed accounts promotes diversification within the contract, allowing the client to pursue upside potential while eliminating the chance of zero interest in any given crediting period.

"Diversification is a valuable tool for managing volatility and creating predictable yields based on individual client goals and risk tolerance," said DeCicco. "We've also simplified the indexed accounts by giving them only one moving part, making them easy to explain."

In addition to their signature asset allocation and interest crediting features, the RBC Choice Series of Fixed Index Annuities offer several competitive liquidity features. These include free annual withdrawals of up to 10 percent of accumulation value after the first contract year as well as confinement and terminal illness waivers. The greater of full account value or the minimum guarantee value is paid at death. The RBC Enhanced Choice 8 and RBC Enhanced Choice 12 also offer a premium enhancement/bonus that is credited at contract issue.

RBC Choice Series of Indexed Annuities Product Overview Product Issue Minimum Interest Rate Surrender Special Age Initial Features Charge Features Premium RBC 0-80 Q $5,000 Two Indexed 8 Years 10% free Enhanced 0-85 NQ Single Accounts withdrawals Choice 8 Premium Linked to Fixed Based on DJIA* Confinement Index age last 2% premium Waiver Annuity birthday enhancement/ -- 1-yr (SPDA) bonus quarterly Terminal additive Illness 1st yr point-to Waiver 1% enhanced -point interest with cap Systematics rate on fixed -- 1-yr Market Value account monthly Adjustment averaging (MVA)** with cap or spread fee One Fixed Account -- 8-yr guaranteed fixed account -- Renews at portfolio rate (1-3% guaranteed min) after yr. 8 RBC 0-80 Q $5,000 Two Indexed 10 Years 10% free Choice 0-85 NQ 5 additional Accounts withdrawals 10 Fixed premiums Linked to Index Based on of at DJIA* Confinement Annuity age last least $500 Waiver (SPDA) birthday each allowed -- 1-yr in the quarterly Terminal first 12 additive Illness months (first point-to Waiver 4 mos. in Pa.) -point with cap Systematics 1st yr 1% enhanced -- 1-yr Market Value interest rate monthly Adjustment on fixed averaging (MVA)** account with cap or spread fee One Fixed Account -- 1-yr guaranteed fixed account -- Renews at portfolio rate (1-3% guaranteed min) RBC 0-80 Q $5,000 Two Indexed 12 Years 10% free Enhanced 0-85 NQ Single Accounts withdrawals Choice 12 Premium Linked to Fixed Based on DJIA* Confinement Index age last 5% premium Waiver Annuity birthday enhancement/ -- 1-yr (SPDA) bonus quarterly Terminal additive Illness 1st yr point-to Waiver 1% enhanced -point interest rate with cap Systematics on fixed account -- 1-yr Market Value monthly Adjustment averaging (MVA)** with cap or spread fee One Fixed Account -- 8-yr guaranteed fixed account -- Renews at portfolio rate (1-3% guaranteed min) after yr. 8 *Regarding Indexed Accounts 1-year Quarterly Additive Indexed Account - Has a quarterly cap. Interest rate calculated using a formula that compares the index value at the start of the quarter to the index value at the end of the quarter. Value is then compared to a quarterly cap and the resulting value becomes the quarterly index interest rate. The quarterly index interest rates for all four quarters are added together to determine the interest rate credited on the last day of the contract year. 1-year Monthly Average Indexed Account - Has either an annual cap or spread fee, which will be determined at time of issue. Interest rate is calculated by comparing the value of the index on the first day of each contract year with the monthly average of the index value for that year. The ratio between the two determines the rate of growth used in a formula (that includes a cap or spread fee) to calculate the interest rate credited on the last day of the contract year. "Dow Jones," "Dow Jones Industrial Average (sm)" and "DJIA(sm)," are service marks of Dow Jones & Company, Inc. They have been licensed for use for certain purposes by Liberty Life Insurance Company. These products are not sponsored, endorsed, sold or promoted by Dow Jones and Dow Jones makes no representation regarding the advisability of purchasing these annuities.

Please consult individual product disclosures for examples of how the indexed accounts work in various market conditions.

**Products and/or features, including MVA, are not available in all states. Contracts may contain limitations. See contract for details.

About RBC Insurance

As the insurance operation of Royal Bank of Canada Toronto, RBC Insurance provides a wide range of creditor, life, health, travel, home, auto and reinsurance products to more than five million North American customers. Based in Greenville, South Carolina, the U.S. life insurance division of RBC Insurance, through its operating entity, Liberty Life Insurance Company, provides life and health insurance, annuities and related personal financial security products to consumers through regional and independent broker dealers, national marketing organizations, RBC banking and investment channels, the Internet, other direct marketing channels and a field force of approximately 300 full-time sales agents. For more information, please visit http://www.rbcinsurance.com/us .