Indexed annuities give you the choice to place your contributions in fixed or indexed accounts, or more commonly, a combination of the two. Each type of account has unique benefits. By strategically allocating your contributions, you can achieve your financial objectives based on your individual needs.
Fixed account: Your certificate’s fixed account provides a competitive current interest rate with a minimum guarantee of 1.00 percent. The fixed account provides stable, steady growth without market volatility. The higher the account value the higher the rate band. Those who are closer to retirement may consider allocating more of their premium to this account.
Indexed account: The indexed account credits interest based on the performance of the S&P 500®, subject to a participation rate. When the index performs well, the certificate can earn higher returns than the fixed account. When the index performs negatively, the indexed account still provides a floor rate, protecting your annuity from negative returns while still maintaining some growth. The indexed account is not an investment in the S&P 500® and may result in lower interest credits than the fixed account but can also feature higher interest credits when the index performs well.
Gleaner offers two indexed annuities:
Product Features:
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Issue ages: 0-85
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Minimum initial premium: $1,000 or $100/month ACH
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Penalty-free withdrawals: Withdraw up to 10% each certificate year without incurring a surrender charge