Avoid the 30-Day Renewal Trap

Protect Your Clients (and Yourself) from a True Holiday Disaster

The holiday season is a time for celebration, but for financial professionals, it can also be a season of potential risk for your credibility and relationships. With clients traveling, busy schedules, and end-of-year distractions, critical financial deadlines can easily slip through the cracks. One of the biggest pitfalls? The 30-day renewal window for fixed annuities.

When clients miss this window with a majority of annuity products, their funds often default into a low-interest renewal, locking them into unfavorable terms for years. Worse, the responsibility often lands on the financial professional to explain why this happened—potentially damaging trust and the advisor-client relationship.

That’s why AuguStar Retirement 's LunarLock Prime may be the clear choice to write through the busy holiday season.

The 30-Day Renewal Risk

Most fixed annuities include an auto-renewal clause. Here’s how it works:

• At the end of the contract’s surrender period, clients have only 30 days to decide whether to renew, withdraw, or transfer their funds.
• If they fail to act, their funds are automatically re-enrolled—often at the lowest rate allowed by the carrier, typically around 1%.
• Worse, the funds may be locked into a new surrender period, making it costly or impossible to access the money without penalties.

Now, imagine trying to get in touch with a client during the holidays to guide them through this decision. They’re busy hosting family, traveling, or simply taking a well-deserved break. By the time they’re ready to talk, the renewal window has closed—and the damage is done.

How This Impacts Financial Professionals

When a client discovers their funds are stuck in a low-rate renewal, their frustration is often directed at their financial professional. It doesn’t matter how many phone calls, emails, or texts you sent—the result is the same:

• Clients feel blindsided and blame you for not preventing the situation.
• You’re left explaining why their funds are earning just 1% and why they can’t move their money for another 3, 5, or 7 years.
• The trust you’ve built with your client may be jeopardized, putting the relationship—and potential referrals—at risk.

As financial professionals, we know how challenging it can be to manage these conversations. The 30-day window is unforgiving, and the holiday season only magnifies the difficulty.

How a LunarLock Prime MYGA Can Keep Your Holidays Merry & Bright

AuguStar Retirement's LunarLock Prime eliminates the risks associated with the 30-day renewal process:

1. The Unique No Auto-Renewal Feature With LunarLock Prime, there’s no auto-renewal. Your clients retain full control over their funds without being forced into a low-rate renewal. This flexibility gives both you and your clients peace of mind.
2. No Market Value Adjustments (MVA) Even if rates shift, LunarLock Prime ensures there are no MVAs for accessing funds early. This means your clients can make decisions on their terms, not the market’s.
3. No Holiday Disasters By choosing LunarLock Prime, you’re protecting your clients, and yourself from the stress and fallout of missed renewal deadlines. It’s a product designed to work with your clients’ needs, not against their busy schedules.

The Perfect Gift for Financial Professionals and Clients

While the LunarLock Prime rates are competitive, they may be slightly lower. However, the long-term benefits could be invaluable:

·       For clients: No surprises, no penalties, and no rushed decisions during the holidays.

·       For financial professionals: No awkward conversations, no damaged relationships, and no risk to your reputation.

The holidays are busy enough without adding unnecessary stress. With Augustar Retirement’s LunarLock Prime, you can focus on what matters most helping your clients stay on track with their retirement goals without fear of renewal pitfalls.

Make the Move Now

The coming weeks till the end of the year are critical. By recommending a LunarLock Prime MYGA for your fixed annuity business, you can safeguard your clients from the 30-day renewal trap over the holidays and strengthen your role as their trusted financial professional.

Let’s ensure this holiday season is about celebrating successes, not navigating challenges. Reach out today to learn more about how LunarLock Prime can benefit you and your clients.

Learn More

LunarLock Prime Resources

·      LunarLock Prime Spec Sheet

·      Client Brochure

·      Contact Our Team

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FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.

Guarantees are based upon the claims-paying ability of AuguStar Life Insurance Company, a member of the Constellation Insurance, Inc. family of companies. Product, product features and rider availability vary by state. Not available for sale in the state of NY. Certain features may vary by broker-dealer.

Multi-Year Guaranteed Annuity Issuer: AuguStar Life Insurance Company One Financial Way | Cincinnati, Ohio 45242 513.794.6100 | augustarfinancial.com