They have some things in common but they are not all alike.
Chief among the similarities is that you can never lose money
in an indexed annuity due to market declines.
The way the product works is that if the market declines during
the policy year you simply get a statement that shows that you
earned zero for that policy year. The main thing is your money
was protected from a falling market. Your balance is the same as
it was a year previous. No headaches or pains for the annuity
owner like some of his friends who are directly in the market
and have big losses. That is a good thing.
But the products are different on what they can do for you on
the upside. In other words, you need to look at the strategies
offered. The ideal plan allows for you to choose an index strategy
that will allow you to make double digit gains in really good years.
The best way to do this in my view is with a monthly average no
cap strategy. If you can find one.
I only know of one and it is going to be discontinued very soon.
Contact me for more information if you are interested.
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