INDEX ANNUITY - QUESTIONS YOU
SHOULD ASK YOUR AGENT OR THE COMPANY
You should ask the following questions about index annuities
in addition to the questions in the Buyer's Guide to Fixed
Deferred Annuities.
-
How long is the fixed index annuity term?
-
What is the guaranteed minimum interest rate?
-
What is the fixed index annuity participation rate?
For how long is the participation rate guaranteed?
-
Is there a minimum participation rate? Index
annuity.
-
Does my fixed indexed annuity contract have an
interest rate cap? What is it?
-
Does my index annuity contract have an interest
rate floor? What is it?
-
Is interest rate averaging used? How does it work?
Monthly or daily?
-
Is interest compounded during a term?
-
Is there a margin, spread, or administrative fee?
Is that in addition to or instead of a
participation rate?
-
What indexing method is used in my annuity
contract?
-
What are the surrender charges or penalties if I
want to end my index annuity contract early and
take out all of my money?
-
Can I get a partial withdrawal without paying
charges or losing interest? Does my indexed annuity
contract have vesting? If so, what is the rate of
vesting?
Final Points to Consider
Remember to read your index annuity contact carefully when
you receive it. Ask you agent or insurance company to explain
anything you don't understand. If you have a specific complaint
or can't get answers you need from the agent or company,
contact you state insurance department.
Index Annuity Quote
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