Index Growth Annuity


A Deferred Annuity That Grows With the S&P 500® and Offers Generous Access to Funds

The Index Growth Annuity is a single-premium, deferred annuity designed to reflect the performance of the well known Standard & Poor’s 500® index. By tying the annuity’s performance to this popular index, your client will participate in the growth of the index and at the same time be protected from downturns with the strong guarantees of a fixed annuity.

A Combination of Fixed- and Indexed-Rate Accounts

This annuity offers a Fixed Interest account with a one-year interest-rate guarantee, and an Index Interest account with an annual, point-to-point index term that participates in 100% of the growth of the index up to an index rate cap. At the end of the index term, your client benefits from competitive renewal rates based on the current interest-rate environment and current market conditions. In addition, a contractual bailout index rate cap is set at 2.00% less than the initial index rate cap.

Choice of Surrender Periods With Flexible Withdrawal Options

There is a choice of a five- or seven-year surrender-charge period and the contract offers a variety of ways for your client to access funds before the end of the surrender-charge period without paying a surrender charge. In addition, there is no window at the end of the surrender-charge period, during which time owners are generally required to make a decision prior to a restart of surrender charges.

Target Clients

The Index Growth Annuity is designed for those people who are interested in guaranteed rates, but who also desire a return that can capitalize on positive economic conditions, and which may exceed traditional fixed products.

This annuity is also an excellent way to enhance your client’s retirement-savings plan and can be used to fund 403(b) TSAs, IRAs and SEPs.

  • Index Interest Account
    • Annual, Point-to-Point Index Term
    • 100% Participation in S&P 500® to Index Rate Cap
    • Bailout Feature: 2.00% Less Than Initial Index Rate Cap
  • Fixed Interest Account
    • 1-Year Rate Guarantee
  • $15,000 to $1,000,000 initial premium (higher amounts may be permitted with prior home-office approval)
  • Issue to Age 90
  • Joint-Owner and Annuitant Available
  • 45-Day Rate Lock
  • Choice Surrender-Charge Period
    • Index Growth Annuity 5 (8%, 7%, 6%, 4%, 2%)
    • Index Growth Annuity 7 (9%, 8%, 7%, 6%, 5%, 4%, 2%)
    • No Automatic Surrender Reset
  • Surrender-Charge-Free Withdrawal Options
    • 10% Annual Withdrawals (beginning immediately)
    • Nursing Home Waiver with partial index credit
    • Terminal Condition Waiver with partial index credit
    • Death Benefit with partial index credit
    • Annuitization with partial index credit
    • Substantially Equal Periodic Payments
    • IRS Required Minimum Distributions
  • No Market Value Adjustment
  • No Annual Contract Fees

Bailout Index Rate Cap

Each contract is assigned a bailout index rate cap of 2% less than the initial index rate cap. If a renewal rate cap is declared below that rate, funds may be withdrawn from the Index Interest account without surrender charge while the rate cap is below the bailout rate.

Partial Index Crediting

Some mid-index-term distribution events (nursing home, terminal condition, annuitization or death) will receive a partial index credit if there were index gains.

45-Day Rate Lock

A rate lock on the index rate cap holds it for 45 days from the time a request for a rollover, transfer or exchange is received in the home office. If funds are received within the 45-day window, your client will receive either the held rate cap or the current rate cap, whichever is greater.