Equity Index Annuities

  So what is an Equity Index Annuity?
This is annuity that allows one to take advantage of the gains of a particular stock index such as the Standard & Poor’s 500 Index, the Dow Jones Industrial Average, the NASDAQ Composite Index or the Russell 2000 Index.  When your Index of choice goes up, your savings grows. When your Index of choice goes down, your policy’s accumulated value is “locked in” and can’t be reduced. There is a minimum interest rate (about 3%) that is always guaranteed which will insure that you walk away at the end of your term with a gain. This is big as we talk to many clients who had heavy losses by participating in the stock market or by purchasing a variable annuity, especially in the early 2000’s when the market crashed. Typical returns you can expect range anywhere between 5% and 7%. That is a lot better than any CD you can purchase.

  There are several “moving parts” to an Equity Index Annuity that one needs to be aware of when shopping for the best deal.
With terms like “Caps”, “Participation Limits”. “Market Value Adjustments” and “Surrender Chargers”, there are many ways one can become confused with Equity Index Annuities. This is where an experienced insurance broker can help by providing an easy-to-understand education on the subject and of course, a variety of choices to fit any need.

  With an annuity, you really need to work with a professional who understands the mechanics of an annuity.
After all, it is your hard earned money. Case in point, I remember a very recent experience at a large bank where a customer was speaking to one of the bank’s employees about putting a lot of money into an annuity. It was painful to listen to as the bank employee was doing her best to explain the mechanics of annuity but could not adequately provide the proper information to the customer. After about ten minutes, the customer became very frustrated at the lack of information he was receiving. He threw up his hands and left the bank without doing a thing.

Not everyone can be an expert and that is why it is so important to deal with an organization that works with annuities day in and day out. Bradley Associates Insurance Service deals with only “A excellent” insurance companies and can help find you the best option for your situation. Bradley Kaskin has authored many insurance industry articles on the subject of annuities and teaches the subject to other insurance agents as well. WE KNOW ANNUITIES! We are successful at what we do as we ALWAYS do what is best for the client, not us.