November 24, 2015 by Randy Timm
Fixed index annuities are traditionally known for their downside protection from market losses and their potential for upside interest gains. But more recently, fixed index annuity products have become more versatile in their ability to meet a wider range of client concerns.
Here are some features that fixed indexed annuities are combining to create more holistic retirement options:
Income riders. Already a mainstay of fixed index annuities, income riders have surged in popularity thanks to their ability to provide clients with a steady stream of sometimes increasing income that is guaranteed for the life of the annuitant(s). As a result, many fixed index annuities now offer income riders either as a standard feature or optional addition.
Enhanced death benefits. Another popular feature packaged with fixed index annuities are enhanced death benefits that can secure a client’s legacy. These can provide a five-year payout of a benefit base, an enhanced interest credit accessible at death or some other variation.
Additionally, fixed index annuities offer some lesser known features like nursing home confinement benefits, terminal illness waivers, carry-over withdrawals and interest crediting strategies. These features utilize volatility control mechanisms to allow for no explicit interest caps within a client’s retirement strategy.
As consumer needs have changed, the industry has responded with products that can help offer most, if not all of these benefits in one retirement solution.
Brokers International is dedicated to helping you find annuity solutions that meet your clients’ retirement needs. If you need help searching for the right product, running illustrations or proposing multiple options, please give our Annuity Sales Support team a call at 800.362.1097.
April 2, 2013 by Randy Timm
Unfortunately, record low interest rates have reduced the interest potential for many retirement savings vehicles, including fixed index annuities. In fact, five years ago annual interest rate caps on index annuities averaged approximately 7.0%. But, now most caps have fallen to 3% or lower.
If low interest rates are affecting you, Genworth Life and Annuity Insurance Company has developed a possible solution – CapMaxSM.
CapMaxSM is a patent-pending index crediting methodology available exclusively on SecureLiving® Index Annuities. It gives you the opportunity to roll forward current year interest in exchange for the opportunity to multiply next year’s growth potential. It also provides you with the opportunity to potentially outperform other crediting strategies.
Simply put, CapMaxSM allows you one of two options:
Option 1: You can roll positive interest credits earned for the year, up to the current annual cap, in exchange for the full CapMax Multiplier of 3.0.
Option 2: You can lock in positive interest credits earned for the year, as is common in interest crediting strategies.
Here is an example of option #1:
In year one, your interest growth is at 3.5%. You decide to exchange that interest for the opportunity to multiply next year’s interest potential by a factor of 3. In year two, your interest growth is 3.5%. With the multiplier, you would have an available interest credit of 10.5%.
This interest strategy is suited for those who believe the market has potential for consecutive years of positive growth.
Download a consumer brochure with a hypothetical example.
To request an illustration, call Sales Support at 800.362.1097. We can review the illustration with you and answer any questions you may have.
Annuities are designed to meet long-term needs for retirement income. They provide guarantees of principal and credited interest, subject to surrender charges, and a death benefit for beneficiaries.
Issued by: Genworth Life and Annuity Insurance Company, Richmond, VA
SecureLiving® Index Annuities, Individual Single Premium Deferred Annuities with market value adjustment and optional indexed interest crediting, subject to policy form series GA3003-0711, GA302R-06912, ICC11GA3001, and ICC12GA302R et. al. Features and benefits may vary by product, state and market and may not be available in all states. Genworth Life and Annuity Insurance Company is licensed in all states except New York.
All guarantees are based on the claims-paying ability of the Genworth Life & Annuity.
This is a brief product description. Consult the annuity contract for a detailed description of benefits, limitations, and restrictions.
Although the contract value may be affected by the performance of an index, the contract does not directly or indirectly participate in any stock or equity investment including but not limited to, any dividend payment attributable to any such stock or equity investment.
The CapMax strategy is designed to create greater growth potential by taking advantage of consecutive periods of positive momentum in the index. That means that during periods of alternating annual index performance it may not perform as well as other available options.