Guaranteed Minimum Value
Naturally, this is the least amount by policy definition that an owner of a Fixed-Indexed Annuity can receive regardless of stock market performance. With many Fixed-Indexed Annuities, the guaranteed minimum value is 90% of the premium plus 3% annual interest. This means that with many Fixed-Indexed Annuities, the guaranteed minimum value is between 104%-110% of a base premium at the end of the 5 or 7-year term. For example, $100,000 going into a Fixed-Indexed Annuity today will have a guaranteed minimum value of $110,000 at the end of 7 years. If the stock market under performs, your clients get, at the end of the term, all of their money back plus 4% to 10% of the base amount (the premium). Do you know of any other product that will deliver up to 110% of the initial premium if almost everything goes wrong? The Fixed-Indexed Annuity can be unique. With Fixed-Indexed Annuities, your clients can get security plus growth potential; two benefits that few alternatives, if any, have.