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Fixed Index Annuity

  • Owner Annuitant Age 65
  • Elected to utilize an annuity product to provide lifetime income after a 10-year holding period

Original investment

  • $1 Million, with promised income of $136,500 per year
  • On year Point to Point index election – resulted in 8% increase in
  • Account Value after internal fees at Year 1 - $1,059,787
  • Surrender Value after on Year 1 - $1,113,391
  • Flat life-time benefit
  • 0.90% annual charge on Benefit Base - $136,563 over 10 Years.

New Opportunity

  • 10% Bonus to Protected Income Value at start - $1,243,000 (24.3% higher starting base)
  • 2.5 x Account Value based
  • Increasing benefit over the life of the Annuitant
  • No fee applied to benefit base or account value during the accumulation period
  • Greater flexibility in annuitization and death benefit options

Owner makes tax free exchange, electing to keep the security of owning an annuity
Optionally, client could have made a taxable cash withdrawal equal to the surrender value and invested in the reduced stock market.


The case study shown is for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may view this information. Client’s investment results may differ materially from the results portrayed in this case study. The results shown many not reflect the deduction of all applicable fees.  Neither the information nor any example shown is to be construed as solicitation to buy or sell a security of personalized investment, tax, or legal advice. Contact your financial advisor for information to consider and evaluate before making a decision.