A recent collaboration between Great American Life and Raymond James has produced a new type of variable-indexed annuity. The Index Summit 6℠ is the first of its kind, offering crediting strategies with both upside and downside participation rates. According to a recent InsuranceNewsNet article, the breakthrough product will only be offered through financial institutions, banks and independent broker dealers.
Currently, the crediting strategies feature a 50% downside participation rate and upside rates of up to 120% for the first term. Great American claims that this combinations can mean improved growth opportunity for clients, while they assume only half the risk of index downturns each term. Earning potential will be linked to well-known indexes and ETFs, such as S&P 500®, iShares U.S. Real Estate ETF, and iShares MSCI EAFE ETF.
In a recent press release Great American highlighted the opportunity for diversification along with the unique combination of upside potential and downside protection, pointing out that this new solution can help mitigate the volatility seen in today’s uncertain market.
Other key offerings include a return of premium death benefit, no annual or recurring charges and an early withdrawal charge schedule that ends after six years. The release stated that these features demonstrate Great American Life’s commitment to offering transparent products that help clients achieve their goals with no surprises.
“We are incredibly honored to have worked with Raymond James to create this new, innovative solution in an increasingly competitive market,” said Joe Maringer, National Sales Vice President, Great American Life. “One of our main goals in developing this product wa to provide an alternative to traditionally sold structured investments with the added benefit of tax deferral. This, coupled with its growth potential and protection factor, can make the Index Summit 6 an attractive investment vehicle for growth-focused clients seeking to mitigate market volatility.”
Great American Life Insurance Company is a member of Great American Insurance Group and has received a rating of “A+” by Standard & Poor’s and “A” (Excellent) by A.M. Best for financial strength and operating performance.
Written by Rachel Summit