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Equity-indexed Annuity Guarantees

Equity-indexed annuities are based on the volatility of the chosen index (e.g. S&P 500, Dow Jones Industrial Average, etc.).  Below are what we view as the pro and cons of equity-indexed annuities:

PRO

  • The value of the contract doesn’t experience volatility and you will never experience a negative return, even if the market is down in a given year.

CONS

  • Performance caps and participation rates set by the insurance company can limit your upside potential and may be subject to change.
  • This type of annuity generally has longer surrender periods and higher surrender fee percentages, which can often exceed variable annuity surrender terms.

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Annuity Fundamentals Annuity Fundamentals
This 8-page guide will help you better understand annuities so you can make well-informed decisions about whether they’re best suited to meet your retirement goals.
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