Annuity Products Head-toHead

Indexed vs. Variable Annuities

FEES
INDEXED

  • Surrender fees for early withdrawals
  • Income rider fee
  • Total fees averaging .6% – .8%
VARIABLE

  • Surrender fees for early withdrawals
  • Base contract fee
  • Sub account fee
  • Income rider fee
  • Total fees averaging 3.25% – 4%

Winner: Indexed Annuities

DOWNSIDE PROTECTION
INDEXED

  • Receive zero interest for a down year
VARIABLE

  • Depreciates in value as the market goes down

Winner: Indexed Annuities

UPSIDE POTENTIAL
INDEXED

  • Capped on upside potential
  • Innovative crediting strategies can be used to obtain higher returns
VARIABLE

  • No cap on upside potential

Winner: Variable Annuities

INCOME RIDERS
INDEXED and VARIABLE

  • The duration and age at which the client will be receiving the income will determine which rider fits best – but the typical payout % tends to favor the Index Product at most ages.

Winner: Depends on each client (but Index seems to win at most ages)

About Jeffrey Berson

40 years in and around the industry has made Insurance a part of my DNA. I have had the pleasure of working with and for some of the greatest minds in our industry. My "Bersonal" View is an attempt to capture some of the best ideas, the best concepts and the best practices in a way that can lead to success for others. It will certainly be my point of view, so please...don't take it "Bersonal".
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