Annuities

ISE Insurance Services offers a wide variety of Fixed Index Annuities

Fixed indexed annuities (FIAs) offer a unique combination of features that can be advantageous for certain individuals seeking financial security and growth potential. Here are some advantages of fixed indexed annuities:

Principal Protection

• Like other fixed annuities, FIAs offer principal protection. The initial investment (principal) is typically guaranteed against market downturns, ensuring that the annuity owner will not lose their principal investment, regardless of market performance.

Potential for Higher Returns

• FIAs provide the opportunity for potentially higher returns compared to traditional fixed annuities. The interest credited to the annuity is linked to the performance of a specific market index, such as the S&P 500. While there may be caps, participation rates, or other limitations on the credited interest, FIAs offer the potential for growth based on positive movements in the index.

Tax-Deferred Growth

• Similar to other annuities, FIAs offer tax-deferred growth. Any interest earned in the annuity is not taxed until it is withdrawn. This can be advantageous for individuals seeking to accumulate savings over time while deferring taxes on investment gains.

Guaranteed Minimum Interest Rate

• Even in years when the linked index performs poorly, FIAs often guarantee a minimum interest rate. This provides a measure of stability and predictability in the returns, ensuring that the annuitant will receive a minimum level of interest regardless of market conditions.

Various Crediting Methods

• FIAs typically offer a variety of crediting methods, allowing annuitants to choose how interest is calculated based on the performance of the index. Common crediting methods include point-to-point, annual reset, and monthly averaging, providing flexibility to align with individual preferences and market conditions.

Lifetime Income Options

• FIAs often offer various options for converting the accumulated value into a stream of income for the rest of the annuitant’s life. This can provide a reliable and guaranteed income source in retirement, helping to ensure financial security and peace of mind.

Death Benefit Protection

• Many FIAs come with a death benefit that ensures beneficiaries receive at least the original premium paid, even if the annuity’s value has declined due to poor market performance.

Diversification

• FIAs can be used as part of a diversified retirement portfolio. By incorporating different types of financial products, individuals may aim to manage risk and optimize returns.

Flexibility in Payout Options

• FIAs may offer various payout options, including lump-sum withdrawals, systematic withdrawals, or annuitization for a stream of income. This flexibility allows annuitants to tailor the annuity to their specific needs.

Protection Against Inflation

• Some FIAs offer riders or options that provide protection against inflation by adjusting the annuity payments based on changes in the Consumer Price Index (CPI) or other inflation measures.

Contact Us

It’s important to carefully review the terms and features of any FIA, considering factors such as caps, participation rates, fees, surrender charges, and overall suitability for individual financial goals and circumstances. Call Mike at ISE Insurance Services to learn more about how we can help you find the right product to fit your goals