Hybrid Annuities Are Fixed Index Annuities
Your state insurance commissioner regulates two annuities, fixed and variable. An
Index 'hybrid' annuity is a fixed index annuity.
You'll receive a little known document published by your state insurance
commissioners. This state insurance government guide is a regulatory document produced for the benefit of annuity
consumers and does not endorse any company.
Complete the form above or the long form below
to receive immediate access to the insurance departments document. Within a few days I will call to confirm you are
a real person. After a 'real person' confirmation, we will email, one, two or three fixed index annuity brochures,
income rider brochures and income quotes based on your goals.
Participation rates with no caps
The participation rate decides how much of the
increase in the index will be used to calculate index-linked interest. For example, if the calculated change in
the index is 10% and the fixed indexed annuity participation rate is 70%, the index-linked interest rate for
your fixed index annuity will be 7% (10% x 70% = 7%). A company may set a different participation rate for newly
issued index annuities as often as each day. Therefore, the initial participation rate in your fixed annuity
will depend on when it is issued by the company. The company usually guarantees the participation rate for a
specific period (from one year to the entire term). When that period is over, the company sets a new
participation rate for the next period.
Some fixed indexed annuities guarantee that the participation rate will never be set
lower than a specified minimum or higher than a specified maximum.
21 Fixed Index Annuity Questions
The 21 questions listed in the insurance regulatory buyers
guide may help you decide which type of annuity, if any, meets your retirement income planning and financial
You should think about what your goals are for the money you may put into the fixed
indexed annuity you choose.
-Does the fixed index annuity let me get money when I need
-What renewal rate is the
company crediting on index annuity contracts of the same type issued last year?
-Does the initial rate include
a Bonus rate and how much is the fixed index annuity Bonus?
These questions put you in control of the sales process, so complete the above form
to receive 21 questions to ask when buying an index 'hybrid' annuity.
Is It Possible
a Participation Rate with no cap could be a better Rate to Choose?
*Complete the short form above for quotes. Long form
*Brochures and income quotes are sent
after a 'get to know each other'
An index annuity is different from other fixed annuities because of the way it
credits interest to your annuity's value. Some fixed annuities only credit interest calculated at a rate set in the
Other fixed annuities also credit interest at rates set from time to
time by the insurance company.
Fixed indexed annuities credit interest using a formula based on
changes in the index to which the annuity is linked. The formula decides how the additional interest, if any, is
calculated and credited. How much additional index interest you get and when you get it depends on the features of
your particular fixed indexed annuity.
JEFFREY SCOTT McLEOD
NATIONAL LICENSED INSURANCE SALES PRODUCER #558629
ARKANSAS INSURANCE PRODUCER LICENSE #558629
McLEOD AGENCY, INC. ARKANSAS INSURANCE LICENSE #1651277