We offer fixed index annuities to protect client assets from loss and for the potential for index-based earnings above what can be found in other safe money places. Over the years fixed index annuities have proven this value proposition to be true, but renewal rates can easily take away the opportunity for strong performance.
With the 10-Year Treasury yield at less than 1% carriers have lowered rates throughout 2020. Outliers with higher caps and participation rates may be setting clients up for disaster as renewal rates are adjusted to bring contract pricing in line with where rates were when the contract was purchased. Chasing higher rates can be a losing bet.
Traditionally to combat renewal rate risk we have looked for carriers with a reputable published renewal rate history. We have also avoided premium bonuses or optional riders. These features can be costly to the carrier causing renewal rates to suffer, but ultimately, we have no guarantee against renewal rates.
Finally, Brighthouse Financial introduced a solution. The SecureAdvantage 6 Year gives your clients protection, growth, and clarity in one short term fixed index annuity built for accumulation.
This innovative new product offers greater opportunity for growth than some other FIAs through annual sum index accounts which guarantees the cap or participation rate all 6 years. (6% S&P Cap, or 40% Participation 100K+) Daily tracking of performance offers clarity. Clients can track the values in their contract on any day during the index term. Your clients can even choose one opportunity to lock in the value of their chosen index on any business day during the initial 6-year index term.
Give us a call today for more details! 1-800-535-6080