Is Usually A Set Indexed Annuity For Me?

A hard and fast indexed annuity could possibly be appropriate for yourself if you would like the likely this site  gain better rates of return than the usual standard preset annuity without the need of acquiring the risk and possible losses involved with a variable annuity. These annuities are getting to be extremely popular financial savings motor vehicles for those who are going to retire or individuals who are now retired.

What's a set Indexed Annuity?

A hard and fast indexed annuity can be a fastened annuity which features the probable annuity consumer the option to participate within an index (S&P) without the need of directly participating in any of the downside risks. These annuities offer many crediting strategies in addition to a hard and fast account. These policies allow the customer to allocate money among the different strategies and make changes to the strategies on a yearly basis.

Principal Protection

Fixed indexed annuities can offer the public the peace of mind that is related that has a fixed annuity and more upside potential for gains. These annuities are regulated and approved for sale by the individual States. One of the key features of an indexed annuity is that you will not lose any policy value and they offer a minimum guarantee.

Your gains will be partly from the gain of an index. Some people choose a 25% preset 75% in the index approach. Keep in mind that the 75% in the index will be subject to a declared cap but will not be subject to any downside market chance. If the market has a negative year, the client simply receives a $0 on their statement instead of a negative.

Estate and Probate Advantages

Most fixed indexed annuities on the market offer a death benefit that distributes the accumulated cash value to the designated beneficiaries without going through probate. If death happens before any payments are received, your beneficiary is guaranteed to receive the account value minus any outstanding loans and cannot be contested in court.

Access to your Cash

These annuities typically allow policy owners to access up to 10% penalty free every year after the first year. Keep in mind that any withdrawals above the free 10% will be subject to surrender charges. Also, some annuity policies give you a Return of Premium (ROP) feature. The ROP will allow you to take out 100% of your original premium with out any surrender penalties. Companies like Great American do not charge a rider fee for this rider. The ROP rider gives you the extra certainty you may be seeking.