Great-American Life Insurance Company has introduced a variable indexed annuity that could appeal to clients who like hard assets.
The Cincinnati-based company’s new Index Frontier 7 annuity offers an index menu that include the S&P 500 Index, the iShares U.S. Real Estate ETF, and the SPDR Gold Shares ETF.
Because Great-American Life designed the product as a variable annuity, purchasers who like prospectuses can get a full prospectus.
Great-American Life says it will use its resources to hold an annuity holder’s losses to 10% for each term. Each investment option offers aone-year term.
Great-American Life is part of American Financial Group Inc., a publicly traded company with a large property-casualty insurance operation.
In exchange for accepting some exposure to investment losses, the annuity holders get a chance to earn positive returns as high as 20%, Great-American Life says.
The product does not have annual administrative fees, mortality and expense charges, or 12b-1 fees. It comes with a seven-year early-withdrawal-charge period.