Top Short Term Annuities

Top Short Term Annuities

The demand for short term deferral periods on annuities has ramped up considerably.  Interest rate risk is something that many clients and advisors are weary about given our current rate environment. Given this concern, we are seeing more success with short term contracts ranging from a 3 – 7 year deferral – to provide a solid rate of return for clients without committing them to a lengthy surrender schedule.

Below are some of the best short-term indexed and fixed annuities available to help you get your clients off the sidelines:

Short Term Index Annuities

5 year Index:

  • Best Cap = S&P 500 Annual Point to Point cap of 5%

6 Year Products:

  • Best Participation Rate = S&P 500 Annual Point to Point with participation rate of 40%

7 Year Products:

  • Best Spread = Merrill Lynch Strategic balance Index 2 Year Point to Point with 1.60% spread
  • Best Participation Rate = Goldman Sachs Momentum Builder Index 3 Year Point to Point with 100% participation rate
  • Best Participation Rate = Goldman Sachs Momentum Builder Index 3 Year Point to Point with 120% participation rate with an A+ rated carrier

Short Term Fixed Annuities

Duration

Rate

Issue Ages

AM Best

3 year

2.00%

0 – 90

B++

4 year

2.55%

0 – 100

B+

5 year

3.15%

0 – 90

B++

6 year

3.05%

0 – 85

A-

7 year

3.30%

0 – 85

A-

Contact your Annuity Sales Rep today for complete details on these great product offerings, and to discuss how we can take the next steps to help grow your practice in 2016.