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John Hancock Offers ‘Inflation-Guard’ Fixed Annuity

The newest product from John Hancock Annuities offers investors protection of their principal and an opportunity for growth to protect from the rising costs of inflation.  A company press release introduced ‘Inflation Guard’ this week.  While it is a typical fixed annuity because it offers the benefit of principal protection, this annuity has more to offer investors.  John Hancock Annuities’ President says that they are happy to grow their line of fixed annuities with this offer of growth to protect against inflation in the country.

Your principal is guaranteed as long as you keep your annuity to the full term of your contract.  In the contract’s initial year, you have a guaranteed fixed interest rate.  Each year after that, you will receive a floating rate based on yearly changes in the Consumer Price Index.  There will also be a guaranteed margin in your contract.  Interest rates cannot go below zero and will be capped at a rate determined in your annuity contract.  John Hancock does a weekly annuity rates comparison and update.

Inflation Guard seeks to meet a customer demand for flexible annuity products that help them combat inflation.  John Hancock believes that they are providing a solution and adding much value to their clients’ portfolios.  Each year, you can withdraw the interest from the previous year without penalty.  While there are no fees or sales charges up front, you will pay a penalty if you take the money out before your contract is up.  Withdrawing money before age 59 1/2 will cause additional taxes to be owed.  Speak with an expert if you are looking for a fixed annuity to help you combat inflation.

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