A fixed index annuity is a contract between your client and an insurance company that may help them to reach long-term financial goals. In exchange for your client’s premium payment, the insurance company provides them with income, either starting immediately or at some time in the future. Most fixed index annuities start with an accumulation phase, during which your client lets their money earn interest. This is followed by a distribution or payout phase, during which your client receives money from the annuity.
Your client’s fixed annuity can earn a fixed rate of interest that is guaranteed by the insurance company or an interest rate based on the growth of an external index. With a fixed index annuity, your client defers paying taxes on their contract’s interest until they receive money from the contract… tax-deferred growth that can really add up. These annuities provide for additional growth from one period to the next, often without market risk, meaning they will increase in value when markets rise and will not decrease in value when markets decline.
If you currently market fixed index annuities, or would like our concierge team to manage them for you, call IFC Financial today.