Is Usually A Preset Indexed Annuity For Me?

A set indexed annuity might be ideal for you personally if you need the potential this site  receive bigger charges of return than the usual classic mounted annuity without the need of obtaining the chance and opportunity losses involved by using a variable annuity. These annuities have become extremely popular personal savings cars for those who are about to retire or those that are previously retired.

What is a hard and fast Indexed Annuity?

A hard and fast indexed annuity can be a set annuity which presents the possible annuity buyer the option to participate in an index (S&P) with out 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 affiliated by using 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 today choose a 25% mounted 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 possibility. 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 fastened indexed annuities on the market offer a death benefit that distributes the accumulated cash value to the designated beneficiaries with no 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 without having 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.