Insured Investments
Fixed, FIA, Variable Annuities
Fixed Annuities offering a fixed interest rate for a specified period with the option to lock in a higher rate than traditional CDs.
FIA: Fixed Indexed Annuity, providing a return based on a market index, with a minimum interest guarantee to protect the principal.
Variable Annuities: Offering growth potential through investment subaccounts, with the risk of loss of principal.
What Are Fixed Annuities?
Fixed-rate annuities are insured fixed-income investments for conservative investors looking for an attractive rate of return. They’re excellent alternatives to CDs offered by banks, as they are tax-deferred . . .and more often than not, offer higher interest rates.
Fixed Annuities are less complex than other investment options, and your payout is a Guaranteed Insured Fixed Rate.
Fixed Annuities are safe, quality investments with the industry’s highest returns that will also protect principal. Preservation of capital with protected growth is the core mission.
Fixed Index Annuities (FIA)
Wouldn't it be great if you could invest in the stock market with its potential for growth and at the same time have protection against the possibility of loss?
While stocks and bonds can expose you to both gains and risk, FIAs are designed with growth potential and loss aversion in mind—although with important caveats. Two common annuities that fall into this category are fixed indexed annuities (FIAs) and registered index-linked annuities (RILAs), also known as buffer annuities. They are types of tax-deferred annuities that can offer you participation in the market while eliminating or limiting your downside risk.
What is a fixed indexed annuity?
A fixed indexed annuity is a deferred annuity designed to provide growth potential based on the returns of a market index (e.g., the S&P 500® Index) while providing protection against negative returns of the same market index.
What is a registered index-linked annuity?
Registered index-linked annuities also link their growth to the movement of a market index, allowing investors to participate in some market gains. Like fixed indexed annuities, these investments typically offer some protection against losses and typically cap the return you can earn over a specific period of time. However, a key difference is that RILAs typically offer greater market participation than fixed indexed annuities in exchange for less protection against losses.
Variable Annuities
What Are Variable Annuities?
A variable annuity is a contract between an insurance company and an individual that combines insurance features and long-term investments. The funds in a variable annuity are invested in various subaccounts that may contain a mix of bonds, stocks, and money market instruments.
The variable annuity's value can fluctuate with the market performance of its underlying investments. However, variable annuities do offer security in the form of a guaranteed death benefit. They also offer the potential for tax-sheltered growth.
Annuities are long-term insurance products whose features, fees, guarantees, and limitations vary by contract. Fixed annuities offer guarantees subject to the claims-paying ability of the issuing insurance company. Fixed indexed annuities (FIAs) credit interest based, in part, on the performance of a market index, subject to contract limitations such as caps or participation rates; investors do not invest directly in the index. Variable annuities involve investment risk, including the possible loss of principal, and are subject to market fluctuations and fees.