Guarantee Income Wealth Choice 10

WHAT IS A FIXED INDEXED ANNUITY?

A fixed indexed annuity is a tax-deferred contract with an insurance company, which can also provide payments to the owner at some point in the future when additional income is needed for a comfortable retirement. DEFERRED TAXES Taxes are deferred until you withdraw your earnings, and as a result, you earn interest on principal and interest on interest, all on a compounding basis. A fixed indexed annuity offers crediting options that: Credit fixed interest based on a fixed rate for one year; or Credit indexed interest based on the performance of an external index using a crediting methodology.

FIXED INDEXED ANNUITIES OFFER PARTICIPATION IN UP TIMES & PROTECTION IN DOWN TIMES

While the interest credited to a fixed indexed annuity is linked to various market indexes, the annuity does not participate in any stock, bond or equity investments. You are not buying shares of stock or an index. The index performance is used to determine the indexed interest credited to the funds you have chosen. However, the annuity is not credited the same performance as the measuring index. This is because the annuity premium is also guaranteed to never lose principal due to market downturns. Fixed indexed annuities offer participation for some of the market’s growth in up times, but also protection in down times.

Made with FlippingBook - Share PDF online