(Photo: Shutterstock)

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.

(Related:  Great American Parent Explains Annuity Unit to Wall Street)

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.

Great-American Life will issue the annuity for use in retirement accounts for people ages 18 to 80, and for use outside of retirement accounts for people ages 0 to 80.

The minimum initial payment is $25,000. A purchaser can then add payments of $10,000 or more during the first two contract months.

The annuity contract includes an extended care waiver rider and a terminal illness waiver rider that let the purchaser withdrawal all of the account assets without penalty after the end of the first contract year.

The extended care waiver rider applies to an annuity user who is confined to a nursing home or other long-term care facility for at least 90 consecutive days.

The terminal illness rider applies to an annuity user with a prognosis of survival of 12 months or fewer.

— Read Great American Reaches Out Through Photos on ThinkAdvisor.

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