If you're in search of a long-term financial product, a fixed indexed annuity (FIA) offers you tax-deferred growth potential and the reassurance of a death benefit for your beneficiaries, as well as a guaranteed stream of income in retirement. When you purchase an FIA, the insurance company is going to issue and guarantee a cap, spread, and fixed interest rate for the contract's year. This process occurs each year- the insurance company declares and guarantees a new cap, spread, and fixed interest rate. What determines those cap and spread and participation rate renewals?
In this episode of Money Script Monday, Sean highlights the tax-deferred growth potential behind a fixed index annuity and discusses the 3 main factors insurance companies use to determine a policy’s cap, spread, and renewal rates.
Resources Provided for This Episode
Want consumer-friendly videos sent to your inbox every week? Sign up to receive to receive LifePro's weekly Money Script Monday video series providing financial clarity, dispelling myths, and showing you how money works in 10 minutes (or less). Subscribe now!
Have any questions? Give us a call at 888-LIFEPRO or email us at info@lifepro.com.
Want to learn more about how we can help with your unique financial situation? Fill in your contact information below, and we'll get started right away!