This is a post from my friend and colleague Andrew Unkefer. He has been a mover and shaker in the annuity world for a long time and is the genius behind the SUPER AGENT TOOLS that we promote. If you are looking at the new designs it may be smart to heed his warning.
“If you sell FIAs, beware of VOLATILITY CONTROL or RISK CONTROL indices. Several companies have come out with new indexed crediting methods tied to volatility controls as low as 4%. These low volatility indexes will not drive the performance you seek. Some better options? Look for volatility controls of 8% or higher (currently available). OR – Use a traditional index with no volatility restrictions (also currently available). Don’t be fooled by all the “constituents” in a given index. Know the volatility control. If it’s low, let it go!”