Indexed Annuity Providers’ Latest Twist: Uncapped Index Crediting
December 16, 2015 by ThinkAdvisor
Indexed annuities have become an established member of most financial advisors’ repertoire in recent years, gaining in popularity as clients seek out low-risk ways to participate in rebounding equity markets. Despite this, several years of relatively stable market performance has reduced the appeal of these products, which typically cap the client’s ability to realize the full extent of any gains.
Because of this, carriers have developed new twists on the uncapped index crediting method in order to allow for greater market participation while also tailoring volatility in the underlying equities. While these uncapped crediting strategies may be an attractive option to some clients, others may be in for an unpleasant surprise down the road–making it important that they understand the fine print before jumping in. Click HERE to view article
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