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The Higher Standard Index Annuity offers Index Interest crediting and Fixed Interest crediting. Flexible crediting options give your clients the opportunity to customize the annuity to fit their retirement strategy.
There is a choice of a 6, 8, or 10-year surrender-charge period, with no surrender charges thereafter.
How the Higher Standard Index Annuity Works
Index Interest Crediting
Funds in the Index Interest account earn interest based on the performance of the S&P 500 index. By tying an annuity's interest crediting to the index, the funds can participate in general market gains. At the same time, they are protected from downturns.
Clients can choose interest crediting using an annual point-to-point Index Rate Cap, an annual point-to-point Index Participation Rate or have funds in both options.
Annual Index Rate Cap
Clients earn interest based on the growth of the index each year, up to the annual index rate cap. Funds in this account will participate in 100 percent of the percentage growth in the index up to the rate cap.
Annual Index Participation Rate
Clients earn interest based on a percentage of the growth of the index each year. That percentage is the annual participation rate. The participation rate is multiplied by the percentage growth in the index at the end of the term.
Index Term and Crediting
Each point-to-point index term is 12 months, and we credit interest once at the end of the term. Interest is based on the growth of the index from the beginning to the end of the index term. As interest is credited, the earnings are locked into the Index Interest account value. Funds in the Index Interest account will never decrease if the market goes down.
At the end of each index term, your clients will receive notice from us of the Index Rate Cap and Index Participation Rate for the next index term. The new rate may be higher or lower than their initial rate.
Fixed Interest Crediting
Funds in the Fixed Interest account are credited daily with the fixed interest rate. We guarantee this interest rate for one year at the time of purchase. Like the Index Interest account, any earnings from interest are locked into the account value.
After that, your clients will receive notice from us of the fixed interest crediting rate for the next year. The rate may be higher or lower than the interest rate of their initial rate guarantee period.
Your clients can choose to place their funds in the index interest account, the fixed interest account or both. A total of at least 15% of premium must be allocated to the index accounts (index rate cap or index participation rate), and no less than $2,000 in any account to which funds are allocated.
The Higher Standard Index Annuity is a good fit if you like the benefits of tax-deferred growth with upside potential based on market performance.
This annuity is also an excellent way to enhance your client’s retirement-savings plan and can be used to fund Traditional IRAs, Roth IRAs, Pensions Plans or Simplified Employee Pensions.
Rates may change without notice. Products of Standard Insurance Company. Product features and availability varies by state.