LPL to Distribute Prosperity Life Indexed Annuity
One of the indexes is designed to perform well when inflation runs high.
LPL Financial has agreed to offer a new indexed annuity from Prosperity Life Group to its 4.5 million clients.
The WealthSecure Plus annuity is a single-premium, non-variable indexed menu.
Clients can tie the crediting rate to the performance of one or more investment indexes.
The index menu includes the S&P 500 index; a Fidelity Investments index that invests in industries that have traditionally done well during periods of high inflation; and a second Fidelity index that invests in large and midsize companies that appear to be especially stable.
What it means: The index designers are trying to reflect what clients are thinking, not just match the performance of all stocks.
The players: WealthVest is a Bozeman, Montana-based company that’s been developing and wholesaling annuities for years.
Prosperity Life is a Roanoke, Virginia-based company that was acquired by Paul Singer’s investment firm, Elliott Investment Management, in 2019.
LPL already sells a multi-year guaranteed annuity and a single-premium universal life policy from Prosperity Life.
Prosperity Life announced in October that a subsidiary, S.USA Life, plans to acquire National Western Life, a midsize annuity issuer, for $1.9 billion.
The annuity: Prosperity Life writes the WealthSecure Plus annuities through the S.USA Life subsidiary.
The annuity is now available in 39 states.
The two Fidelity index options have a feature that may help clients lock in a relatively high interest rate.
A client can buy the feature with a two-year term or a five-year term. Instead of getting a crediting rate tied to the performance of a Fidelity investment index at the end of the term, the client can get a rate based on the highest quarterly index value recorded during the term.
Credit: Olivier Le Moal/Adobe Stock