James Cunningham
RFC, CEP, MCEP
Creator of the Family Bank
Equity Index Annuity
What is a Equity Indexed Annuity Policy?
Equity Index Annuity
A Equity Index Annuity is a tax deferred annuity that will guarantee you a minimum return plus interest. The interest you earn is linked to an equity index like the S&P 500.
This protects the cash value while giving the owner of the annuity the opportunity to earn more than a fixed rate. This is based on the performance of the equity index. In most cases there is a cap to the interest rate provided.
The returns that this kind of annuity provide are generally higher than that you might get with a money market account, CDs or other fixed instruments. Equity Index Annuity is best for those who would like a powerful earning vehicle without the risk.
Fixed index annuities are sometimes also referred to as equity-index annuities. They combine the best features of both fixed and variable annuities. The hybrid nature of fixed index annuities has turned them into a very desirable product among annuity buyers.
CFG Consulting LLC are experts in index annuities and are very qualified to assist you with equity index annuity product line.
With variable annuities fixed index annuities allow you to participate in the index by crediting interest according to the changes in the equity index which the value of the annuity is tied to. The equity index policy will guarantee a minimum rate of return and puts a cap on the maximum return so a fixed index annuity policy holder has a minimal risk of loss. This is very powerful.
Equity index annuities can be set up many ways depending on the situation and needs of the client.
• Single Payment Annuity
• Flexible Payment Annuity
• Fixed Annuities
Variable annuity provides you with rates of return depending on how well the annuity's investments performed. The regular payments given when the policy matures are dependent on the performance of the investments. You will have the option to choose the kinds of investments the annuity makes.
Equity indexed annuity is placed in a fixed account. Interest earnings are based on how well or how poorly a particularly stock index is doing. Examples of a stock index that may be used are the Dow Jones Industrial Average, the Standard & Poor's 500 Index or the NASDAQ Composite Index. You are assured that your principal is protected.
Feel Free to Contact CFG Consulting LLC today with any questions you may have regarding equity index annuity policies. We have 20 years of experience in providing equity index policies and would be happy to show you your options based on your requirments and goals.
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