Index Annuities with guaranteed living benefits; Basic description: Newer annuities, including variable annuities, frequently offer optional features that provide various protections or guarantees, subject to certain restrictions. For example, a minimum withdrawal benefit provides for periodic withdrawals of a specified percentage of the investment (e.g., 5% to 7%) and further provides that the insurance company will continue payments of that  amount if the account is depleted by reason of permitted withdrawals and/or investment performance. These withdrawals generally will continue until the original investment has been recouped or, in the case of a so-called “lifetime withdrawal benefit,” for the life of the contract owner. Equity Indexed Annuities

Index Annuities with guaranteed living benefits; Basic description: Newer annuities, including variable annuities, frequently offer optional features that provide various protections or guarantees, subject to certain restrictions. For example, a minimum withdrawal benefit provides for periodic withdrawals of a specified percentage of the investment (e.g., 5% to 7%) and further provides that the insurance company will continue payments of that  amount if the account is depleted by reason of permitted withdrawals and/or investment performance. These withdrawals generally will continue until the original investment has been recouped or, in the case of a so-called “lifetime withdrawal benefit,” for the life of the contract owner. Equity Indexed Annuities

Index Annuities with guaranteed living benefits; Basic description: Newer annuities, including variable annuities, frequently offer optional features that provide various protections or guarantees, subject to certain restrictions. For example, a minimum withdrawal benefit provides for periodic withdrawals of a specified percentage of the investment (e.g., 5% to 7%) and further provides that the insurance company will continue payments of that  amount if the account is depleted by reason of permitted withdrawals and/or investment performance. These withdrawals generally will continue until the original investment has been recouped or, in the case of a so-called “lifetime withdrawal benefit,” for the life of the contract owner. Equity Indexed Annuities

An equity indexed annuity is different from other fixed annuities because of the way it credits interest to your annuity’s value.  Some fixed annuities only credit interest calculated at a rate set in the contract.  Other fixed annuities also credit interest at rates set form time to time by the insurance company.  Equity indexed annuities credit interest using a formula based on changes in the index to which the annuity is linked.  The formula decides how the additional interest, if any is calculated and credited.  How much additional interest you get and when you get it depends on the features of your particular annuity.

Your equity index annuities, like other fixed annuities, also promises to pay a minimum interest rate.  The rate that will be applied will not be less than this minimum guaranteed rate even if the index-linked interest rate is lower.  The value of your annuity also will not drop below a guaranteed minimum.  For example, many single premium contracts guarantee the minimum value will never be less than 90 percent of the premium paid, plus at least 3%  in annual interest (less any partial withdrawals). The guaranteed value is the minimum amount available during a term of withdrawals, as well as for some annuitizations (see “Annuity Income Payments”) and death benefits.  The insurance company will adjust the value of the annuity at the end of each term to reflect any index increases.

Hybrid annuities with guaranteed living benefits; Basic description: Newer annuities, including variable annuities, frequently offer optional features that provide various protections or guarantees, subject to certain restrictions. For example, a minimum withdrawal benefit provides for periodic withdrawals of a specified percentage of the investment (e.g., 5% to 7%) and further provides that the insurance company will continue payments of that  amount if the account is depleted by reason of permitted withdrawals and/or investment performance. These withdrawals generally will continue until the original investment has been recouped or, in the case of a so-called “lifetime withdrawal benefit,” for the life of the contract owner.

Hybrid annuities with guaranteed living benefits; Basic description: Newer annuities, including variable annuities, frequently offer optional features that provide various protections or guarantees, subject to certain restrictions. For example, a minimum withdrawal benefit provides for periodic withdrawals of a specified percentage of the investment (e.g., 5% to 7%) and further provides that the insurance company will continue payments of that  amount if the account is depleted by reason of permitted withdrawals and/or investment performance. These withdrawals generally will continue until the original investment has been recouped or, in the case of a so-called “lifetime withdrawal benefit,” for the life of the contract owner.