American General Life Companies has brought back their Horizon Index Annuity, as stated in the company’s press release. At the beginning of June it was reintroduced with higher premium bonuses and increased marketing for what AGLC believes is a crucial feature. The overall benefits of an index annuity are that an investor has the potential to gain money based on the stock and bond market performance without losing their principal and they can take advantage of tax-deferred growth. This last point is especially helpful for investors who have maxed out their 401(k) contributions.
The following improvements are what AGLC wants to highlight. For their nine-year index annuity the bonus has doubled, going up to 4% from 2%. There has also been a significant increase in the twelve-year annuity bonus, going up to 5% from 3%. AGLC also wants to bring attention back to their “two-year, point-to-point crediting methodology”. There is a 20 percent cap on this currently which really adds a lot of value and great opportunites to investors in today’s markets. AGLC has brought back this index annuity because they believe it can be the best product for many current investors.