Criteria for Evaluating Equity Linked CDs

Annuity FYI uses the following criteria when evaluating equity linked CDs:

Criteria we use in evaluating the CD itself are:

1. High participation rate (e.g. greater than 90%) with the corresponding index (e.g. S&P 500®) or a low spread (e.g. 1% or less).
2. No performance cap rate.
3. Length of maturation period - we generally favor CDs with maturations of 6 years or less.

Criteria we use in evaluating the insurance company issuing the annuities and riders are:

1. Company management, customer service, and ease of account access.

 

Updated 02/02/2010