Fee-Based Annuities:
A Bond Alternative

While the traditional 60/40 portfolio may have worked well in the past, today’s market rewards different approaches. Fixed income investments, like bonds, are commonly used as a source of retirement income. But when interest rates lie near historic lows for extended periods of time, it can be easy to forget the negative impact that rising rates can have on fixed income portfolios. This may have you looking for a bond alternative.

How can you offer clients protection from loss, greater growth opportunity and retirement income?

Allocating a portion of clients’ portfolios to a fee-based annuity may be the answer.



Protection from Loss
A fee-based annuity protects your clients’ principal regardless of what’s happening in the market.
Growth Opportunity

Fee-based fixed-indexed annuities may provide greater growth opportunity than fixed income investments with strategies that earn interest based on a market index or ETF. Interest is guaranteed to never be less than 0%.

Our fee-based fixed-indexed annuities offer strategies based on the following indexes and ETFs:

  • S&P 500®
  • S&P 500 Risk Control 10% Index
  • iShares U.S. Real Estate ETF
  • S&P U.S. Retiree Spending Index
  • iShares MSCI EAFE ETF

For clients who aren't interested in riding the ups and downs of the market, a fee-based fixed annuity may be the right choice. Fixed annuities will grow in value at a fixed interest rate, which is guaranteed for the initial term. So, no matter how the market performs, a fixed annuity will grow at a steady, predictable rate.

Liquidity options

While our fee-based annuities are designed to bring long-term value to a portfolio, liquidity options are available.

Annual withdrawals
Clients may withdraw up to 10% each year without incurring early withdrawal charges or MVAs. This feature may be useful for portfolio rebalancing. Early withdrawal charges and market value adjustments may apply to withdrawals greater than the free withdrawal amount. For more information on product-specific early withdrawal charges and market value adjustments, refer to the fee-based annuities product reference guide.

Included riders 
Extended care and terminal illness waiver riders allow clients to withdraw their money without incurring early withdrawal charges or negative MVAs when certain criteria are met. There is no charge for these riders.

Return of premium 
With an Index Protector 7 fee-based fixed-indexed annuity, clients can surrender their contract after the third contract year and receive no less than their initial purchase payment (minus prior withdrawals and applicable taxes and rider charges).

Ready to learn more?

Check out our suite of fee-based annuities .

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