Ohio-based insurer, Nationwide, has recently launched a new, non-variable indexed annuity in an effort to give consumers more of what they’re asking for: control. Nationwide’s Defined Protection Annuity (DPA) contract gives clients the ability to decide how much protection the insurer provides against market losses, an occurrence many of us are far too familiar with these days.
This type of non-variable indexed annuity comes with a protection promise against any loss of account value as a result of investment market ups and downs.
“When an insurer structures an indexed annuity as a variable annuity contract, and registers the contract with the U.S. Securities and Exchange Commission, it can expose the annuity holder to the risk of loss of account value,” according to a recent ThinkAdvisor article.
When purchasing the new Nationwide DPA contract, the consumer has the choice of whether the contract will protect account value against 90%, 95% or 100% of market-related losses. It also offers a menu of crediting rate options that are linked to a variety of investment indices, including the S&P 500 Index, the MSCI EAFE index, the NYSE Zebra Edge Index, and the J.P. Morgan Mozaic ii Index.
A consumer who buys the annuity Nationwide DPA contract can decide whether the contract will protect account value against 90%, 95% or 100% of market-related losses.
Annuity design firm, Annexus, assisted Nationwide in the design of the new annuity product, which Nationwide expects to sell through approximately 300 banks, wirehouses and independent broker-dealers as early as August 31.
For more information about how an annuity product can fit into your retirement savings plan, visit AnnuityFYI.com, email us at email@example.com, or give us a call at 1-866-223-2121.
Written by Rachel Summit