Best Growth Annuities For 2015

There are a number of fixed indexed annuities being offered with uncapped strategies for 2015.   Given the similarities between the various uncapped options it can be hard to tell which companies are offering the best deals.  Although the options with uncapped growth annuities seem endless, they all are relatively similar.  The key if identifying the common components of indexed annuities and comparing them between the companies.  A list of the key areas is provided below.

1-Which index do they use?  This is very important as some of the companies us the S & P 500 which offers strong growth potential  while others use the S & P 500 Risk Control 5% or some other risk control account which limits growth opportunities.   If the index does not perform well in a strong market, your client will never see any substantial gains.

2-How much of the invested money actually participates in the given index?  This is critical because an index performing well is not much of a benefit if you only receive a 20% participation rate.

3-Is there a fee or spread and what is the current rate?  In general, a spread is preferable over a fee for a number of reasons. (That I will get into in a different blog)  If a company has a 3% spread each year and uses the S & P 500 Risk Control 10%, it is going to be tough for the client to capture reasonable gains.

4-What is the renewal history?  Most of the strategies rely on 1-3 year point to point crediting on the uncapped option (1 year is preferable over 2 or 3).  As a result, they can change the percentages and rates above at renewal. It is wise to look at the companies renewal history to avoid someone that substantially lowers participation or increases spread or fee at renewal.

In general, some of the more competitive uncapped options are being offered from AIG, Security Benefit, Annexus and Americo Libertymark but it is important to look at current rates prior to making any decisions.   Call our office at 203-796-5403 or email with any questions.

MassMutual Care Choice One- Life, LTC and Guaranteed Cash All In One Policy

Mass Mutual rolled out a single deposit Long Term Care product that provides Long Term Care, Life Insurance and guaranteed cash value build up all in one policy. Unlike other similar products, the MassMutual product guarantees an increase on all benefits over time.  This is a single deposit product meaning it is intended for lump sum roll-overs only.    An illustration for […]

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Market Linked CD’s Can Provide Higher Returns

Market linked CD’s are a good alternative to traditional bank CD’s and annuities.  Bank CD’s are currently yielding 1% on a short term basis and no higher than 3% on a 5 to 7 year term.  Market linked CD’s work differently as they have a guaranteed minimum return (usually .5% to 1%) but have an […]

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Americo LibertyMark 15% Bonus Annuity

Until recently, few bonus annuities have been approved in Connecticut.  Equitrust had the largest bonus at 6% but now there is a 13% bonus product in CT with the approval of the Americo LibertyMark annuity. (Please Note:  The bonus is 15% in many other states)   The product comes with a 7 year term and 10 […]

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CD Type Fixed Annuity Rates

A fixed annuity works in a very similar manner to a bank CD.  The insurance company offers a fixed rate that does not change for a set number of years.  At the end of the term, the money is free of any type of surrender penalty and can be left in the account, cashed out […]

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Income Annuities

The term “Income Annuity” is a catch all used for any annuity that produces future income on a guaranteed basis.  The three types of annuities that can create guaranteed future income are a SPIA (Single Premium Immediate Annuity), a deferred income annuity and an annuity (fixed indexed or Variable) with an income rider.  All three […]

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Risk Free Investments

There are a number of risk free (no risk to principal) investments available to those looking for safe/conservative ways to earn interest on investments.  While it is smart to be conservative when approaching retirement or in retirement, it can be difficult to keep up with inflation only using strategies without market risk.  Money markets, CD’s and Annuities are three […]

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Is An Annuity Income Rider A Good Deal?

Annuity income riders are available on both fixed and variable annuities.  Although they are not well understood by most, income rider are not that complicated.  Although companies have different bells and whistles on them, income riders are all very similar regardless of the company offering them. The basic concept of an income rider is that […]

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Annexus BCA Annuity

The Annexus BCA annuity is a fixed indexed annuity is a specialized offering from Aviva.  Unlike a traditional fixed annuity offering a fixed interest rate for a set number of years, the Annexus product uses a interest strategy based on performance of the S & P 500 while still providing a 100% principal guarantee. The […]

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Bank CD Compared To Fixed Annuity

How is a bank CD different from a fixed annuity?   They are more similar than you may think.  Here is a review of similarities and differences. Both CD’s and Fixed annuities offer a fixed interest rate for a set number of years. Terms such as 2, 3,5,7 and 10 years are common for both.   CD will provide […]

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