Questions You Should Ask Me or The Company.

December 13th, 2004 at 9:50 am

You should ask the following questions about equity index annuities in addition to the following questions in the Buyer's Guide to Fixed Deferred Annuities.

  • How long is the term?
  • What is the guaranteed interest rate?
  • What is the participation rate? For how long is the participation rate guaranteed?
  • Is there a minimum participation rate?
  • Does my contract have an interest rate cap? What is it?
  • Is interest rate averaging used? How does it work?
  • Is interest compounded during a term?
  • Is there a margin, spread, or administrative fee?  Is that in addition to or instead of a participation rate?
  • What indexing method is used in my contract?
  • What are the surrender charges or penalties if I want to end my contract early and take out all of my money?
  • Can I get a partial withdrawal without paying charges or losing interest?  Does my contract have vesting?  If so, what is the rate of vesting?

Jeff McLeod 1-800-286-1812
McLeod Agency Inc, Equity Index Annuities