Episode #185: A Complete Guide to Fixed Index Annuity Cap and Spread Renewals


If you're in search of a long-term financial product, a fixed indexed annuity (FIA) offers you tax-deferred growth potential and the reassurance of a death benefit for your beneficiaries, as well as a guaranteed stream of income in retirement. When you purchase an FIA, the insurance company is going to issue and guarantee a cap, spread, and fixed interest rate for the contract's year. This process occurs each year- the insurance company declares and guarantees a new cap, spread, and fixed interest rate. What determines those cap and spread and participation rate renewals?

In this episode of Money Script Monday, Sean highlights the tax-deferred growth potential behind a fixed index annuity and discusses the 3 main factors insurance companies use to determine a policy’s cap, spread, and renewal rates.

Resources Provided for This Episode

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About Sean Brady

Sean Brady is an Advanced Case Designer at LifePro. He works with financial professionals designing advanced case illustrations that are built for longevity and are always in the best interest of the client.


This information is meant for educational purposes only.

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