Fixed Index Annuities

Fixed Indexed Annuity

In addition to a fixed or variable annuity (their definition and chief distinctions can be found on our Annuity Page), we now introduce an insurance/investment/retirement option that combines the essential benefits of fixed and variable annuities: the fixed index annuity.

The purchaser (owner) of such a product will receive a return on investment that parallels the overall performance of a major stock index such as the S&P 500. While this may seem similar to a standard variable annuity, there is a distinct difference. Similar to a variable annuity, fixed indexed annuities offer the policy holder a higher rate of return when its supporting investments increase in value. When those underlying investments decrease in value, however, the non indexed, variable annuity holder is exposed to a higher level of risk than owners of a fixed index annuity. However, with the fixed index option, the insurance company guarantees the original worth of the investment. In other words, there is no risk of loss of the original principle. Additionally, the insurance company promises a fixed minimum return paid on the principal regardless of market conditions. Industry-wide, these minimum interest rates typically bottom out at approximately 2%.

Guaranteed growth is why the term fixed equity indexed annuities is sometimes used to describe this insurance/investment product—a promised wealth preservation plan that still offers the policy holder the opportunity to earn significant returns during a bull market. We advise many of our clients about the enhanced financial security provided by a fixed index annuity, and our industry-leading annuity experts welcome the opportunity to provide you with all the facts about a virtually risk-free insurance/investment/retirement strategy that may benefit you. To learn much more about how a fixed index annuity option can become an important component to your overall financial plan, we invite you to contact one of our helpful annuity experts. We look forward to serving all your insurance and investment needs.


For more information please call us at 1-877-891-8385, or by completing the contact form below and we will get back to you as soon as possible.

 

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