Liquidity focused indexed annuities all share similar characteristics:
- No downside market risk. Guaranteed increase through surrender
- Surrender schedules range from 5-10
years Historicalreturns fall between multi-year-guarantee-annuities and equities.
- Liquidity options that let the client exit the policy without a surrender penalty.
- Some carriers may charge a fee for the liquidity feature. However, that fee may be erased by the guaranteed increase, ensuring a positive return no matter what the index performance.
These products are ideal for a conservative client who wants to have moderate upside with no market downside, a built-in guarantee, and wants to have the flexibility to get out of the annuity if necessary.
If you’d like to discuss this concept in more detail, you can set up a time to talk or simply request a quote for a client.