Compare fixed index annuities with features of other financial product options
When consumers are creating a financial plan, there is no one “best” product. But there are products that can be a better fit in order to help meet their retirement goals.
Fixed index annuities (FIAs) are an insurance product that offers the potential for a foundation of conservative growth, and can be a valuable piece of a financial strategy. Take a look at how FIA features compare with other products in terms of:
- Protection of principal/premium from market downturns
- Tax deferral1
- Guaranteed lifetime income2
- Growth potential
In summary, FIAs help protect principal/premium from market downturns and offer growth potential, and are one of the few products that can guarantee a stream of income payments for as long as your client lives.
Related Links
Consumer guide to understanding rollovers
This guide to rollovers is intended to walk through the considerations your clients may want to make before deciding if a rollover to a Midland National annuity might be a good fit for them. It also provides an overview of a simple, three-step process they may want to use to start moving their money today.
Rollover resources: Client-friendly IRS rollover chart
This client-friendly IRS rollover chart (inside) can be paired with our client rollover guide, to help your clients understand their options.
Rollover resources: Why an annuity may meet rollover needs
This client-friendly flyer can be paired with our client rollover guide, to help your clients understand how an annuity may meet their rollover needs.
The benefits of a fixed index annuity for a client
Fixed index annuities (FIA) can be a valuable planning vehicle for retirement savings. They offer protection from market downturns and guarantees that clients expect along with growth opportunity to help build retirement savings. Discover more benefits of a fixed index annuity inside.
Busting 5 common myths about fixed index annuities
Annuities are often misunderstood. Many people may find it difficult to understand and navigate these insurance products due to misinformation, rumors, and myths. As a result, many individuals may be put off by the idea of purchasing an annuity. In this consumer-friendly flyer, we’ve debunked 4 common myths we hear about fixed index annuities (FIAs).
How fixed index annuities compare in terms of risk
Fixed index annuities (FIAs) are insurance products that are quickly becoming a household term as a new generation of savers are drawn to growth potential and protection from market downturns. Take a look at where FIAs fit with other products in light of risk.
1. Under current law, annuities grow tax deferred. An annuity is not required for tax deferral in qualified plans. Annuities may be subject to taxation during the income or withdrawal phase. Neither Midland National, nor any financial professionals acting on its behalf, should be viewed as providing legal, tax or investment advice. Your client should be advised to rely on their own qualified tax professional.
2. "Income or lifetime income” refers to guaranteed payment of lifetime payment amounts (“LPAs”). It does not refer to interest credited to the contract. Clients should consult with their own tax advisor regarding tax treatment of LPAs, which will vary according to individual circumstances.
The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.
Insurance products issued by Midland National® Life Insurance Company, West Des Moines, Iowa. Product and features/options may not be available in all states or appropriate for all clients. See product materials for further details, specific features/options, and limitations by product and state.
Fixed index annuities are not a direct investment in the stock market. They are long term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for additional optional benefit riders or strategy fees associated with allocations to enhanced crediting methods could exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index.
33654Y | PRT 7-6-21