Product Specifications
Contract Description
Places One Can Purchase an Annuity
Issue Ages Type of Monies Accepted Premium Type Minimum / Maximum Deposit How Interest is Earned
Current Interest Credited
Minimum Guaranteed Interest Credited
Annual Charge
Amount of Value Available , Without Penalty
Other Liquidity Means
Benefit Payable on Death
A contract in which an individual agrees to pay premiums to an insurance company and receives , in exchange , a regular stream of income payments from the issuer either now , or at some time in the future .
Banks , Wirehouses , Broker / Dealers , Registered Investment Advisories , Career Agencies , Independent Agents , and ( on a very limited basis ) Direct from Insurance Companies
0 – 100 Nonqualified , traditional IRAs , Roth IRAs , SEP IRAs , and more Single lump sum or multiple , flexible payments $ 1,000.00 / $ 1,000,000 +
Fixed : insurance company declares a stated rate of interest
Indexed : purchaser selects allocation options that earn limited interest , based on changes in equity indices
Structured : purchaser selects purchaser selects allocation options that earn limited interest , and may lose limited interest , based on changes in equity indices and funds
Variable : purchaser selects allocation options that earn unlimited interest , and may lose unlimited interest , based on the changes in equity indices and funds
Fixed : averaging 1.62 % Indexed : 1.00 % – 2.00 % more than Fixed ( above ) Structured : More than Indexed , but less than Variable ( below ) Variable : Unlimited potential for interest earnings
Fixed : generally 1.00 % Indexed : generally 0.00 % Structured : limited potential for losses , subject to a floor Variable : unlimited potential for losses
Fixed : 0.00 % Indexed : 0.00 %, but optional riders cost 0.25 % – 1.50 % Structured : 0.00 % – 1.75 %
Variable : 0.00 % – 1.90 %, but optional riders cost 0.05 % – 1.85 %, plus applicable subaccount charges
Generally 10.00 % annually
In the event of certain events , including : inability to perform activities of daily living , chronic illness , confinement , death , disability , early retirement , extended care , home health care , hospitalization , limited life expectancy , long-term care / nursing home confinement , natural disasters , terminal illness , unemployment , and more .
Generally , the full value of the annuity is paid to beneficiaries on death , for fixed and indexed annuities . Optional riders may be purchased to provide a minimum guaranteed death benefit on annuities that can potentially lose value as a result of market changes .
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