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11.4

All Treats, no Tricks: Annuity Rates Continue to Rise!

As interest rates continue to rise, so do the rates offered by annuity carriers. If you haven’t looked at annuities in a while, take this opportunity to get up-to-date on the most current offerings to help your clients prosper.

The Annuity Highlights

Consider a 5-Year Multi-Year Guarantee Annuity (MYGA) crediting 5.20% OR choose an A+ rated carrier for 5.15% OR capture MARKET UPSIDE while enjoying the principal protection of a 0% floor. ADDITIONALLY, S&P 500 point-to-point accounts have caps as HIGH as 11.0%!

Click HERE for a snapshot of AgencyONE’s top fixed annuity rates and payouts.

Fixed Indexed Annuity & Blended Allocation – Case Study

How can a fixed annuity with a blended allocation help your client prosper across a wide variety of market conditions?

One of AgencyONE’s core annuity carrier partners offers a Fixed Indexed Annuity (FIA) with a 7-year surrender period that currently credits 5.05% to the fixed account and has a current performance trigger rate of 9.55%.

What does that mean?

  • The policy’s Fixed Account credits an interest rate that is guaranteed for one year (in this case 5.05%), specified at each policy anniversary.
  • A Performance Triggered Account credits a specified rate (in this case 9.55%) if there is ANY positive growth in the S&P 500.

Let’s take a look at how a few different scenarios would play out given a 50% allocation to the policy’s fixed account and 50% to the performance triggered account, using today’s rates.

  • In a flat or positive year, the blended allocation returns 7.3%.
  • In a negative year, the blended allocation returns 2.525%.

But how often is the S&P 500 negative? According to Morningstar Direct, the S&P 500 has had positive returns 81% of the time over the last 20 years! With that in mind, let’s look at how a policy would perform over a hypothetical 5-year period:

Annuity solutions should be considered as a part of your holistic financial planning strategy for your clients. If you don’t talk about annuities, perhaps your competition will. Call AgencyONE today to see how we can help!

Please contact AgencyONE’s Annuities Department at 301.803.7500 for more information or to discuss a case.

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