Equity indexed annuities offer the best of both
worlds
Whoever said there are not guarantees in life didn't take
into account the future birth of the Equity Indexed Annuity (EIA).
Marketed as an insurance product with stock marked
participation minus the downside risk, the EIA provides even
the most conservative investors with the opportunity to take
advantage of stock market gains.
Armed with a fixed minimum-return
guarantee, the EIA increases in connection with market growth,
but will never decline. And, since the interest rate is
directly linked to the performance of the equity
market--commonly measured by Standard & Poor's Composite
Index of 500 Stocks (S&P 500)--EIA owners reap the
benefits of a strong marked upswing. Sounds good?
It gets better.
Once the EIA contract has been credited
with its gain for a given year, that money can't be taken
away. Prior earnings are safe and sound. And, the
equity-indexed annuity also wins big in the tax arena offering
deferral on accumulations.
So, how does the EIA benefit your
clients? This attractive combination of safety and
growth is ideal for those people who desire more than a fixed
annuity but can't quite stomach the potential loss of their
principal. By blending the best traits of the fixed and
variable annuities, EIA's serve up a hefty helping of
risk-free funds leaving your clients hungry for more.
And best of all, the demand is growing.
According to Advantage Group, a St.
Louis-based research firm, assets in indexed annuities alone
more than doubled last year with record product sales in the
first quarter. A market that began a year ago with a
little over 30 indexed annuities today has grown to nearly 75
products. American Life and Casualty actively markets
three equity indexed annuities--each providing the chance
for higher yields, liquidity and tax-deferral:
Each proved opportunities with no risk to principal, imposes
no caps on earnings and offers additional riders. So, go
ahead. Offer your clients a little certainty in an
uncertain world. Equity indexed annuities--stock
market-type gains without the stock marked risk.
Intro to EIAs
S&P 500 Index
Benefits of the S&P
Advantage 500 Prospects
Gain without Pain
Extended Forecast
Sample Calculation
Selling Points
Best & Worst
Annuity Performance
Why EIAs are Popular
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