Episode #346: How Annuity Carriers Set and Renew Rates


 

Do you know what to look for when selecting a fixed index annuity? Fixed index annuities offer safe wealth accumulation, but understanding how they set rates can be challenging when analyzing the best option for you and your unique financial situation.

One way to make a more informed decision is to learn how to evaluate annuities based on their rate-setting mechanics and renewal rate history. From how the carrier’s general portfolio invests your premium to how operating costs and profit margins factor in, understanding these details will help you make more informed financial decisions.

In this episode of Money Script Monday, Kyle explains how annuity companies divide their general portfolio investments and the effects interest rates and volatility play in dictating a change in an annuity cap.

Resources Provided for This Episode


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About Kyle Tomko

Kyle Tomko is a Senior Field Support Representative at Simplicity Group. He coaches hundreds of financial professionals on how to build effective financial strategies that achieve their clients' long term goals and helps them stay educated on the latest industry trends.