Contract Provisions Common To Fixed-Indexed Annuities

Indexed Annuity Overview
In 1985, fixed annuity sales exceeded variable annuity sales by 345%1. Times have changed. During the first quarter of 2006, variable annuity sales exceeded fixed annuity sales appreciably.
Why? Some people want returns higher than what most traditional annuities can provide.

Senior citizens and baby boomers have discovered that inflation, the risk of living too long, interest rate risk, lack of diversification, and the risk of losing Social Security are as serious as principal risk. And, these senior citizens and baby boomers are buying variable products at an unprecedented pace.

However, a relatively new product has been designed that offers some unique benefits. These annuities, called Fixed-Indexed Annuities, can lock in a percentage of Index growth plus provide security to principal at the end of the term regardless of negative index performance.

Fixed-Indexed Annuities should be considered if one:
1) wishes diversification, 2) has money elsewhere for unexpected emergencies, 3) wishes to “lock in” stock market gains by repositioning their variable annuity dollars into an Fixed-Indexed Annuity.