Enjoy Market-Linked Growth with Guaranteed Security.

Indexed Annuities are a type of insurance product that blends  the safety of fixed annuities with the growth potential  of a market index. These annuities provide a guaranteed minimum death benefit, ensuring that  your principal is protected, while offering  the opportunity to earn interest based on performance of a market index (such as the S&P500). However, you do not directly invest in the index itself, but rather your returns are linked to its performance

Phases of an Indexed Annuity:

• Accumulation Phase: During this phase, you invest a lump sum or make periodic contributions to the annuity. The performance of your annuity is tied to an underlying index, like the S&P 500, but your principal is protected from market downturns.
• Growth Determination: The growth of your annuity is based on a crediting rate, which represents a percentage of the index’s performance. However, your annuity’s growth is often subject to a cap, meaning there is a limit to how much you can earn each year, even if the index performs exceptionally well. The participation rate determines the percentage of the index’s gain that will be credited to your annuity. For example, if the participation rate is 80% and the index grows by 10%, you would be credited with 8% growth (80% of the index’s growth).

Additionally, indexed annuities typically come with a floor, meaning that even if the index performs negatively, you will not lose money (your account value will not decrease, but you may earn no interest in a down year).

• Cap and Participation Rates:

While indexed annuities offer growth potential, they usually have a cap on the amount of growth you can receive in each period, limiting the upside. Additionally, the participation rate may limit how much of the index’s performance is credited to your account. This means your returns may be less than what you would earn by directly investing in the stock market.

• Fees and Restrictions:

Some indexed annuities may have surrender charges or early withdrawal penalties if you need to access your money before a specified period. Be mindful of these potential restrictions and fees, as they can impact on your overall return.

• Complexity:

Indexed annuities can be more complex than fixed or variable annuities due to the multiple factors (cap, floor, participation rate) that influence your return. It is important to fully understand the terms and limitations before investing.