Index Annuities Starting To Deliver Equity-Linked Returns
Over the preceding three years, most index annuity owners did not receive any equity index-linked interest.
This meant many producers needed to explain to customers once again how those minimum interest guarantees really worked.
However, the environment has changed. Today, owners of these products are opening up statements that show their policies have credited index-linked interest.
For most owners, this is the first time in three years they have seen this. In fact, its probably the first time they have ever seen it.
So, the products are now starting to deliver on their promises.
The reset annuities using annual point-to-point crediting methodology have been paying equity index-linked returns since early July anniversaries. Furthermore, currently many are crediting at or near their maximum interest caps.