By staggering allocations, your clients can earn higher rates associated with 2-year accounts annually!
Here’s how: at the time of purchase, allocate 50% to a 1-year crediting strategy and 50% to a 2-year crediting strategy. Then, at the first contract anniversary, reallocate the 1-year allocation to a 2-year crediting strategy. Half their premium will earn index credits each year!
Diversify Indices While Adding a Risk-Control Component
Each EquiTrust index annuity features a choice of 2-year crediting strategies. One is an average-cap strategy based on the S&P 500. The other is a point-to-point participation strategy based on the Barclays Focus50 Index – seeking growth through exposure to US stocks and Treasury indices while limiting volatility.
By allocating premium between these two accounts and indices, your clients achieve growth potential, risk control, index diversification, and the higher rates of 2-year index accounts!