New fixed index annuity uses two crediting tools to seek balance in uncertain times
WEST DES MOINES, Iowa, May 26, 2020 (GLOBE NEWSWIRE) — Investors are well aware that in planning for retirement, few guarantees exist. The challenge has always been finding an ideal balance between growing money earmarked for retirement and simultaneously protecting it from volatility inherent in the market over a span of years.
To address this growing concern, Midland Retirement Distributors® – a distribution business of Sammons Institutional Group℠ – is introducing a new fixed index annuity, or FIA, called Summit℠ Navigate. This annuity is designed as an option for those nearing retirement and layers two interest-crediting strategies to help calm an otherwise uncertain market climate.
“It’s a very real struggle – protecting the initial premium yet still taking advantage of long-term market upswings,” said Bill Lowe, president of Sammons Institutional Group. “This innovative fixed index annuity directly addresses market uncertainty that so many customers fear.”
The Summit Navigate FIA layers two types of interest credits over the term of the investment – an annual performance credit (APC) and a term participation credit (TPC) in the final year of term. These crediting tools work together to take advantage of the long-term point-to-point crediting method to offer greater potential for growth.
“The challenge that often exists with long-term point-to-point crediting methods is the client will not see any credits until the end of the FIA’s term. That is precisely why we built in an annual performance credit that provides the opportunity to add account value each year the index is positive,” said Lowe. “With the dual focus of the APC in the short-term, and the incentive of accumulated point-to-point interest credit at the term end, the Summit Navigate gives the customer potential for interim credits and the opportunity for long-term growth potential of the index.”
Lowe added, the annual performance credit rates and term participation credit rates are set at issue and do not change through the surrender charge period, taking away the concerns of renewal rates during the term. An example of how this layered strategy works is in this brief, two-minute video. The purpose of any fixed index annuity is to protect against market loss and provide stable growth potential through a fixed rate of return, which can be achieved with the crediting strategies offered. As noted in the video example, the term participation credit can optimize potential growth by capturing the previous years’ of market performance.
“Our goal is to help clients fund their retirement plans and that means forecasting potential challenges and being able to adapt to a fluctuating marketplace,” said Lowe. “The innovative Summit Navigate can protect clients from downside market fluctuation, create opportunities for annual growth over the contract term, and reward clients with long-term index performance at the end of the period.”
Sammons Institutional Group℠ includes Midland Retirement Distributors® and Sammons Retirement Solutions®.
About Sammons® Financial Group, Inc.
The companies of Sammons® Financial Group, Inc. help families and businesses protect their future so they can enjoy life’s moments today. A subsidiary of Sammons Enterprises, Inc., Sammons Financial Group is a group of privately-owned financial companies that are among the most enduring and stable companies in the financial services industry. Our companies include Midland National® Life Insurance Company (including Sammons® Corporate Markets); North American Company for Life and Health Insurance®; and Sammons Institutional Group℠ (including Midland Retirement Distributors® and Sammons Retirement Solutions®). Together, we offer some of today’s most sought-after life insurance, annuity, and retirement planning products.
The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.
Fixed index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for additional optional benefit riders could under certain scenarios exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index.
The Summit℠ Navigate is issued by Midland National® Life Insurance Company, West Des Moines, IA on base contract form MC402A/ICC19-MC402A or appropriate state variation including all applicable endorsements and riders.
A surrender during the surrender charge period could result in a loss of premium. Surrender charge structure may vary by state.
Product and features/options may not be available in all states or appropriate for all clients. See product materials for further details, specific features/options, and limitations by product and state.
All guarantees are backed by the financial strength and claims-paying ability of Midland National® Life Insurance Company.
Insurance products are issued by Midland National® Life Insurance Company (West Des Moines, IA). Sammons Institutional Group℠, Inc. provides administrative services. Sammons Financial Network®, LLC., Midland National® Life Insurance Company, and Sammons Institutional Group℠, Inc. are wholly owned subsidiaries of Sammons® Financial Group, Inc. Sammons Retirement Solutions® and Midland Retirement Distributors® are marketing divisions of Sammons Institutional Group℠, Inc.
NOT FDIC/NCUA INSURED, MAY LOSE VALUE INCLUDING LOSS OF PREMIUM, NO BANK/CU GUARANTEE, NOT A DEPOSIT, NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY.
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