Fixed Indexed Annuity

Access to more interest growth as the market performs positively

What is a Fixed Indexed Annuity?


A Fixed Indexed Annuity is a tax-deferred, stable, financial option designed to grow your client’s premium and protect it if the market drops. This product is typically accompanied by multiple crediting strategies that your client can choose to participate in. These crediting strategies include at least one indexed account and may also include a Fixed Rate account, as seen with the Accumulation Protector PlusSM Annuity. When your client selects an indexing strategy, they are credited interest at the end of the crediting period in the event the index value grows.

A Fixed Indexed Annuity offers access to more interest growth potential as the market performs positively. In addition to growth potential, a Fixed Indexed Annuity offers protection of principal in several different ways. Your client does not lose money, including interest earned during previous crediting periods, if the index value drops because their money is allocated to the annuity itself rather than directly to the index (or indices). Additionally, the indexed accounts typically offer a minimum guaranteed interest rate of at least 0%.

Benefits of Having APP!

Free Withdrawals

Some annuities do not offer free early withdrawals, but in the second contract year, the Accumulation Protector PlusSM Annuity allows the policyholder to withdraw up to 5% of their Account Value or Required Minimum Distribution, whichever greater.

Terminal Illness and Nursing Home Waiver

If the policyholder is diagnosed with a terminal illness or needs to move into a nursing home, they can make a full surrender or partial withdrawal with no Market Value Adjustment, Surrender Charge, or loss of any applicable non-vested premium bonus under certain conditions.

Rate Enhancement Rider

The policyholder can choose to add a Rate Enhancement Rider that increases the amount available for free withdrawal up to 10% and increases the fixed, cap, and par rates in the buckets. A 110% ROP guarantee will be offered if the policy owner purchases the Rate Enhancement Rider and persists to year 10.

Choose From Eleven Growth Strategies

Your client has the flexibility to choose how their single premium is allocated across eleven crediting strategies. These crediting strategies include a Fixed Account and ten Indexed Accounts linked to three indices: the CS Momentum Index, the CS ESG Macro 5 Index, and the S&P 500® Index. We know that your client’s life and needs are ever-evolving, and that is why they can adjust their allocations on the policy anniversary coinciding with the end of each strategy’s crediting period.

The crediting periods for the Accumulation Protector PlusSM Annuity’s crediting strategies range from one, two, or three years. The crediting strategies include a Fixed Rate account, a Trigger Rate account, and several Point-to-Point with Participation Rate or Cap Rate accounts. A Point-to-Point strategy measures the difference in the index’s value on each policy anniversary, comparing it to the value of the index either a year earlier, two years earlier, or three years earlier, depending on the option chosen.


Additional Benefits

Premium Bonus

When your client purchases the Accumulation Protector PlusSM Annuity they will receive a one-time premium bonus of 10%. The premium bonus is immediately credited to the policyholder’s account, increasing the value of their account and giving them the opportunity to earn additional interest. The policyholder’s funds can be accessed subject to their vesting schedule.

Surrender Charges

If your client surrenders their policy or requests withdrawals above the penalty-free amount, there may be surrender charges. Policyholders should discuss the surrender charge schedule with their agent.

Death Benefit

Policyholders can protect their loved ones with the product’s Death Benefit feature. If the policyholder passes away before receiving any proceeds*, other than a Withdrawal, the amount payable to their beneficiary(ies) is equal to the greater of the Account Value less any Non-Vested Premium Bonus or the Minimum Guaranteed Surrender Value determined as of the date of death.

*Proceeds are defined as the amount payable when: (1) the Owner takes a Withdrawal; (2) the Owner surrenders their Contract; (3) an Owner dies; or (4) the Contract matures.