Why CapLock™ — and How to Position It with Clients
In today’s environment, clients aren’t just asking about rates — they’re asking about greater predictability and clarity.
They want to know:
- What happens next year?
- Will the rules change?
- Can I plan around this?
That’s exactly the challenge the Oceanview CapLock™ Fixed Indexed Annuity was designed to solve for clients who want clearly defined contract features.
CapLock isn’t about chasing the highest short-term number. It’s about removing one of the most common discussion friction points in FIA conversations: annual cap rate uncertainty with traditional FIA designs.
The Problem with Annual Cap Re-Sets
Traditional FIAs typically re-declare cap rates for their strategies every year. While that structure is familiar, it can create challenges in client conversations:
- Today’s illustration may not reflect future caps
- Clients worry about “what happens next year” and the years to follow
- Long-term planning becomes harder to explain and defend due to changing crediting parameters
- Advisors can then spend less time managing expectations and more time on retirement planning for their clients
For clients who value predictability, annual cap resets can feel like a moving target when comparing product features.
Why CapLock Was Built
CapLock was designed to simplify the story.
With CapLock:
- The cap rate is declared at issuance of the annuity contract
- That cap is locked for the full surrender charge period
- There are no annual re-declarations of the cap rate
- There are no mid-term cap changes
The result is a product that allows you to say, confidently: “This is the cap you will receive for the entire surrender charge period and not just for one year”
That clarity is powerful in setting expectations.
What CapLock Is — in Plain Language
CapLock is a fixed indexed annuity that combines:
- Principal protection from market losses
- Market-linked growth potential (excluding dividends) subject to the cap
- A cap rate that stays the same for the full surrender charge period
Interest, if any, is credited annually based on index performance, subject to the locked cap. If the index is negative, interest credited may be zero — but the client’s contract value is not reduced due to market performance.
This is not a performance guarantee. It’s a contractual feature — and that distinction matters.
How to Position CapLock with Clients
Here are a few simple, effective ways to frame CapLock in client conversations while maintaining appropriate expectations:
1. “This helps eliminate surprises.”
Clients understand uncertainty. CapLock gives them fewer changes to worry about related to cap rate re-declarations.
Talk track: “Markets will move, but the cap rate defined in the contract does not change during the surrender charge period.”
2. “It’s designed for planning — not guessing.”
CapLock allows clients to plan around known parameters instead of hoping future rates stay attractive.
Talk track: “You don’t have to wonder what the cap will be next year. You already know it based on the contract terms.”
3. “The cap is guaranteed — returns are not.”
This distinction keeps expectations realistic and compliant.
Talk track: “The cap is locked, but interest credited to the contract still depends on index performance. If the index is negative, interest credited may be zero for that year but the contract will not experience a negative return.
4. “It fits clients who value consistency over complexity.”
CapLock resonates with clients who want fewer moving parts in their retirement strategy and understand the tradeoffs of capped growth.
Ideal client profiles include:
- Pre-retirees and retirees
- Clients repositioning from more volatile strategies
- Clients frustrated by annual cap changes elsewhere
- Clients focused on long-term planning and predictability
Why CapLock Fits the Oceanview Philosophy
CapLock reflects Oceanview’s broader commitment to:
- Clarity over complexity
- Consistency that builds confidence
- Straightforward product design
- Transparent features and clearly disclosed trade-offs
It’s not about reinventing the FIA — it’s about refining it.
Tools to Support the Conversation
To help you introduce and explain CapLock, Oceanview provides clear, straightforward materials designed for financial professionals to support compliant client discussions.
Recommended resources:
These materials reinforce the same themes clients respond to most: predictability, transparency, and protection as defined in the contract.
The Bottom Line
CapLock gives you a simple, confident answer to a question clients are already asking: “What happens to my cap next year?”
With CapLock, the answer is clear — the cap rate is defined at issue and does not change during the surrender charge period – and that clarity can make all the difference to clients.
Disclaimers
FOR FINANCIAL PROFESSIONALS USE ONLY. Not to be distributed to the general public. The Single Premium Fixed Indexed Annuity Contract [ICC19 OLA FIA], or variations of such are issued by Oceanview Life and Annuity Company (d/b/a Oceanview Life and Annuity Insurance Company in California). May not be available in all states. Not available in the state of New York or Vermont. Product features, limitations and availability may vary.
OCEANVIEW ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK NOR INSURED BY THE FDIC OR NCUA/NCUSIF OR ANY OTHER FEDERAL GOVERNMENTAL AGENCY. MAY LOSE VALUE. NO BANK/CREDIT UNION GUARANTEE. NOT A DEPOSIT. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT. GUARANTEES ARE SUBJECT TO THE CLAIM PAYING ABILITY OF THE ISSUING INSURANCE COMPANY.
Annuities issued by Oceanview Life and Annuity Company, 1331 17th Street, Suite 1050, Denver, CO 80202. In California, doing business as Oceanview Life and Annuity Insurance Company www.oceanviewlife.com.
Annuities are generally designed as long-term retirement solutions and have certain limitations. They are generally not intended to replace emergency funds, serve as income for day-to-day expenses, or support short-term savings goals. Please review the contract for full details.
A.M. Best Rating as of December 11, 2024, is subject to change. A (Excellent) rating is third highest of fifteen possible rating classes for financial strength. The outlook assigned to these Credit Ratings is stable.
As each client and prospective client’s financial needs differ, care should be taken in making any recommendation to purchase an annuity. Therefore, nothing in this document should be read as investment advice.
Neither Oceanview Life and Annuity Company nor any of its representatives may provide tax or legal advice.
Withdrawals in excess of any Free Partial Withdrawal amounts are subject to a Surrender Charge and Market Value Adjustment (MVA). The MVA may have the effect of increasing or decreasing the Surrender Value of the withdrawal depending on the market interest rate changes.
The IRS may impose a penalty for withdrawals prior to age 59 ½.
Contracts purchased in an IRA or other tax-qualified plan provide no additional tax-deferral benefit, since they are already afforded tax-deferred status. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan. For non-qualified annuities, tax deferral is not available to corporations and certain other entities.
Rates, renewal caps, and declared interest rates, will always follow contract provisions relative to minimums and maximums stated. Oceanview determines, at its discretion, the rates, renewal caps and, declared interest rates above the contractual minimums that are guaranteed.
Funds allocated to an index do not directly participate or invest in the stock market or any index.