Insurance companies have lowered their premiums.  Yes, that is right!  The individual market has become very competitive, so the companies have acted by lowering their rates as much as 18%.

Get a quote today  and/or call use for more information.

Why Equity Indexed Annuities? Jim Martin- Vice President Annuity Division Roster Financial 2005-08-02

Why Equity Indexed Annuities? Simply put, in addition to lifetime income options and tax deferral, policyholders can receive upside potential with no downside risk. Many individuals, beaten up by the volatile market of recent years and looking for a safe haven, have found it in Equity Indexed Annuities. Contractual guarantees* secure principal while a variety of crediting methods allow policyholders upside participation in the growth of a variety of well known and accepted market indices ie: S&P 500, NASDAQ 100, DJIA, Russell 2000, SP Midcap 400. Monthly or annual gains are normally subject to contractual caps and are locked in – not to be lost in future downturns. In the event the selected index shows a negative return, policyholders are simply credited with no gain. EIA Performance Jack Marrion, President of The Advantage Group, a St Louis research – consulting firm, reports that during the 5 year period extending from Sept 30, 1998 to Sept 30, 2003 the average index annuity total return was 30.4%. While past returns do not guarantee future performance, EIA’s performed competitively in spite of enduring the worst Bear market since the Great Depression. The average index annuity total return was considerably better than the average stock mutual fund (21.2%) or variable annuity equity sub-account (9.3%), better than typical bond vehicles during a reportedly strong bond market (27.6%), a third higher than the return of the average CD (23%) and posted higher returns than index funds (5%) for the same five year period, says Mr. Marrion. Liquidity Policyholders can access a percentage of their account values on an annual basis without penalty. Additional options include withdrawal of interest and/or gains, systematic withdrawals of principal and interest and access to Required Minimum Distributions without penalties. One particular product design that allows access to all gains from 5 years or earlier, regardless of the current account value, would have proved to be a godsend in the recent market. For example, assume a $100,000 initial premium grew to $150,000 at the end of year 3 and then over time fell to an eventual indexed value of $120,000 at the end of year 8. At that point the policyholder could withdraw all of the first 3 years gains of $50,000 without penalty. Other features allow for increased access in the event of nursing home confinement or terminal illness.

-	Why Equity Indexed Annuities?