Indexed Annuities

When you’re looking for upside potential with downside protection

A Fixed Indexed Annuity definition:  A tax-deferred, long-term savings option that provides principal protection in a down market and opportunity for growth in a bull market. It gives you more growth potential than a fixed annuity along with less risk and less potential return than a variable annuity.

Profits or losses rely on the performance of an underlying index, such as the S&P 500® Composite Stock Price Index, a collection of 500 stocks intended to provide an opportunity for diversification and represent a broad segment of the market. While the benchmark index does follow the market, as an investor, your money never gets directly exposed to the stock market.

What Benefits do Indexed Annuities Provide?

Tax deferral: Its tax-deferred status allows you to benefit from compounded growth.

Principal protection: The original deposit will not decline if the index performs negatively. Please keep in mind that all guarantees are subject to the ability of the issuing insurance company and that the Federal Government does not Federally ensure these securities.

Lifetime income: When purchased a rider can guarantee set payments regardless of how long you and your spouse (if elected) live. Or, get lifetime income through annualization at no additional cost.

Guaranteed Income Stream: With Americans living longer and spending more time in retirement, many retirees worry about outliving their savings. In turn, they search for a product that can help ensure a steady income stream. Fixed indexed annuities (FIAs) guarantee lifetime income so you can never outlive your earnings.

Beneficiary protection: You can pass assets to beneficiaries and avoid costly probate. Optional riders, available for an additional cost, can enhance the amount your beneficiaries may receive.

Spousal opportunities: Most companies offer spousal continuation only upon the first spouse’s death. They don’t pay a death benefit until the second spouse passes. However, some carriers do offer a joint option that may cover the death of either spouse upon the first passing.

Flexibility: Growth potential can be achieved through the performance of the index or through a fixed interest rate earned on the fixed account — or a combination of the two. Your investment advisor can help you find the best combination for you.

What should you consider before purchasing?

With this type of annuity, results reveal limited gains due to caps, and interest. However, this product does possess some protection from down markets. A fixed indexed annuity does not invest in an index; it’s only based on the underlying index performance.

Our Annuity Counselors stand ready to offer complimentary evaluation services for qualified investors. We’ll analyze the annuities you own or are considering, to explain exactly what these contracts truly provide. We also help qualified investors identify opportunities that maybe more suitable for a portfolio than an annuity. Contact us today to schedule an appointment.