People are always looking for the perfect investment. Clients want to earn the highest interest possible without putting any of their money at risk. These sorts of investments have never existed … until now. A Fixed Indexed Annuity (FIA) is a guaranteed insurance product that offers above average returns with no market risk to principal and no management fees ever.
In this historically low interest rate environment, many clients are reconsidering where to park their hard earned cash for the long haul. Certificates of deposit, savings accounts and money markets are literally paying next to nothing and the stock market is at the highest levels in recorded history. So where can clients position their money and earn superior returns without worrying about losing a penny? FIAs offer real double digit returns in up markets without any risk to principal in down markets. Folks everywhere are not only taking notice, but investors are flocking to FIAs.
So how does a FIA actually work? The annuitant buys a traditional guaranteed fixed annuity that also allows him or her to participate in an external index via the carrier’s trading desk. The carrier purchases options against the index either monthly or annually. When the index is up, the options are exercised and the annuitant earn interest, usually subject to a cap. When the index is down during the same time period, the options are allowed to expire and the annuitant is credited the contract’s minimum guarantee of 1%.
So let’s review, when the market index goes up, the annuitant has the ability to earn superior interest and when the market index goes down, the annuitant earns 1%. Further, since the carrier is only tracking the index on a 12 month basis, annuitants do not need to worry about current market levels. Policies are only capturing gains in the next 12 month period. There is never any risk of principal or of losing any prior year credits which are all automatically reset into the policy accumulation value on the policy anniversary.
Fixed Indexed Annuities offer clients the following 12 guarantees:
Over the last 15 years, we have seen scores of clients earn double digit returns in bull markets, while losing nothing during market downturns. Time and time again, clients are astounded by how they can earn so much interest with no market risk. Here are a few actual client examples. One of our 76 year old clients earned 11.47% from May 2013 through May 2014. Another 58 year old client earned 15.63% from September 2013 through September 2014. Finally, one of our clients actually earned 17.67% from March 2014 through March 2015 inside her inherited IRA and did not even know it.
There are few products that offer returns like this with a 100% principal guarantee. Do you own a Fixed Indexed Annuity?
 Surrender charges may apply if withdrawals are taken in excess of the annual free withdrawal schedule.
(2) Fidelity & Guaranty Life, Fixed Indexed Annuity
For more information or answers to your insurance questions, contact us at Allan Block Insurance Agency, www.ambins.com, located in Tarrytown, NY in the heart of Westchester County, a key business district near New York City. We write auto, home, renters, condo, co-op, personal, business, life and group insurance for clients locally and in NYC, CT, NJ, PA, MA and many other states. The Professional Agency with the Personal Touch.