This will add a new annuity purchase to the proposal. This entry allows you to enter the purchase year, the value of the new annuity, and specify which account is being used to fund it:
An optional account value bonus can be entered, which is an upfront bonus that will be applied to the transferred account value for the annuity. Be sure to select 'Indexed Annuity' as the Annuity type, which will allow you to enter the cap, floor, spread, and participation rate.
Entry | Description |
|---|---|
Cap | The maximum rate of return applied to the account in any year; if the Cap is set to 6%, the maximum increase in any year will be 6%. |
Floor | The minimum rate of return applied to the account in any year; if the Floor is set to 0%, in any year where the return is less than 0%, the account value will not decrease but will return 0%. |
Spread | The amount that is used to reduce the index rate each year. For example, if the spread is 2% and the index returns 7%, we will credit 5% (7% - 2%) for that year. |
Participation | The percentage that is used to reduce the index rate each year. For example, if the participation rate is 80% and the index returns 7%, we will credit 5.6% (7% * 80%) for that year. |
- Regular withdrawals will treat the annuity similarly to other investments. Income distribution cards can be added in the Profile > Income section to withdraw a specific amount each year from the annuity.
- Annuitization will surrender the account value in exchange for a guaranteed fixed income stream. This option will populate new fields to enter the details of the annuitization.
- Lifetime income can be used for an annuity that has a guaranteed lifetime income rider or associated benefit. This option will populate new fields to enter the details of the lifetime income guarantee.
