Index Annuity Rate

Index annuity questions you should ask: The questions listed below may help you decide which type of annuity, if any, meets your retirement income planning and financial needs. You should think about what your goals are for the money you may put into the equity indexed annuity you choose. Receive the "21 questions to ask", a few brochures and income rider quotes. Complete this form.

• Does the index annuity let me get
  money when I need it?
   
• What renewal rate is the company
  crediting on index annuity contracts
  of the same type issued last year?
   
• Does the initial rate include a
  Bonus rate and how much is the index
  annuity Bonus? When is the bonus vested?
  
• What index annuity offers the best bonus?
   
• Does my index annuity waive withdrawal
  charges for reasons such as nursing
  home confinement, illness or death?
   
• How many index annuities should I buy
  and why two or three should be a
  consideration?
   
• Can I get a sample index annuity policy
  before I buy?
  
• Does my fixed indexed annuity contract have
  an interest rate cap? What is it?
   
• Does my index annuity have an interest
  rate floor? What is it?
   
• Is interest rate averaging used? How
  does it work, monthly or daily?
   
• Is interest credited annually? Is it
  compounded annually?

An index annuity is different from other fixed annuities because of the way it credits interest to your annuity's value. Some fixed annuities only credit interest calculated at a rate set in the contract.

Other fixed annuities also credit interest at rates set from time to time by the insurance company.

Indexed annuities credit interest using a formula based on changes in the index to which the annuity is linked. The formula decides how the additional interest, if any, is calculated and credited. How much additional index interest you get and when you get it depends on the features of your particular indexed annuity.