Today's Best 5 Year Fixed Indexed Annuity Rates
|Insurer||Annuity Name||AM Best||Minimum||S&P 500 Cap|
|Athene IA||Athene Protector 5 *ROP for FEE*||A||$10,000||4.25%|
|Oxford Life Insurance Company||Select 5||A-||$20,000||4.25%|
|Guaranty Income Life||WealthChoice 5||B++||$20,000||4.25%|
|\||American General Life Insurance Company||Power 5 Protector||A||$00,000||4.15%|
|Great American Life Insurance Company||American Landmark 5||A+||$100,000||4.05%|
|Athene IA||Ascent Accumulator 5||A||$10,000||4.00%|
|The Standard||Index Select Annuity 5||A||$100,000||4.00%|
|Great American Life Insurance Company||American Landmark 5||A+||$10,000||3.80%|
|Sagicor Life Insurance Company||Sage Secure 5||A-||$100,000||3.80%|
|The Standard||Index Select Annuity 5||A||$15,000||3.75%|
|Great American Life Insurance Company||American Landmark 5 Non-MVA||A+||$100,000||3.70%|
The S&P 500® has over $9.9 trillion benchmarked to the index, with indexed assets comprising approximately $3.4 trillion of this total.¹
Rates Change Frequently:
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How Does a Fixed Index Annuity Cap Rate Work?
A Fixed Index Annuity offers a chance for upside gains in a good market and protection from possible downturns. To calculate the interest earned in any given contract year using this strategy you first calculate the S&P 500’s performance for the year.
To do this you subtract beginning value from ending value on contract anniversary. Then divide the change in the change in the indexes value by the starting value.
If there was a positive performance your account is credited 100% up to the cap. However, if the index was down for the year you would be credited with 0% interest for the year.
A resource you may find useful when considering annuities is “The Complicated Risks and Rewards of Indexed Annuities“, published by FINRA.
Fixed Index Annuity Rates By Insurance Company
|Fidelity & Guaranty Life||A-|
Fixed Index Annuity Interest Crediting Methods
Since an index annuity doesn’t guarantee a specified interest rate like a fixed annuity it is important to understand how fixed index annuity interest crediting methods work. Below is a brief explanation and example of the different index annuity rates you’ll come accross.
You get 100% of the index performance up to the cap rate; let’s take a look at some examples in the table below:
|Index Performance||Cap||Interest Earned|
Interest using the spread strategy is calculated by subtracting the spread from the market index’s performance. You can think of a spread as a fee that you only pay if there is enough interest earned to pay it; let’s take a look at some examples in the table below:
|Index Performance||Spread||Interest Earned|
A fixed index annuity participation rate is multiplied by the index’s performance for the term to determine the interest rate credited for that contract period. The table below contains a few examples;
|Index Performance||PAR Rate||Interest Earned|
Fixed Index Annuity Rates by Term
Finding the Best 5 Year Fixed Index Annuity Rates for You
Available Indexes: The stock market indexes available in the index annuity. We have a list of available stock market indexes available at each insurance carrier for simplicity.
Index Annuity Crediting methods (or limiting factors): used to determine what interest rate is credited to your account annually. For example, cap rate, spread, or participation rate.
Insurance Company Financial Ratings: An insurer’s financial ratings are very important because they are an indicator of an insurance company’s ability to fulfill it’s obligations to it’s policyholders. To learn more about what these ratings mean we suggest visiting our Insurance Company Financial Ratings Explained page.
Investment Term: Terms range from 3 years to 10 years. During that period of time, you’ll receive a guaranteed rate but will have limited access to your funds. Usually, the longer the term the higher the yield but that isn’t the case in today’s rate environment.
Liquidity: Index annuities almost always offer 10% free withdrawals annually. Some will allow free w/d’s in year 1 while others don’t allow for free withdrawals until the second contract year.
Additionally, almost every index annuity includes nursing home and terminal illness riders at no cost. These make your account 100% liquid should you be confined to a nursing home or diagnosed with 12 months or less to live.
Indexes Available in a Fixed Index Annuity
The below table lists the indexes available in index annuities by insurance company.
Fixed Index Annuity FAQs
Yes. Insurance companies as a whole have a long history of stability, even through our nation’s most difficult economic times. Fixed index annuities, unlike variable annuities, are backed by the full faith and credit of the issuing insurance company.
Fixed index annuities are a type of fixed annuity that earns interest based on changes in a market index, which measures how the market or part of the market performs. The interest rate is guaranteed to never be less than zero, even if the market goes down. The return earned in a variable annuity isn’t guaranteed.
Fixed Index Annuities are a type of fixed annuity that offers a change to earn more when the markets perform and downside protection from potential market downturns.
In the broadest terms, an annuity is a contract between you and an insurance company, where you make a premium payment(s) in exchange for the benefits defined in the contract.
SOURCES: ¹S&P 500®, https://us.spindices.com/indices/equity/sp-500 (accessed Aug. 8, 2018)
Annuities are distributed by My Annuity Store, Inc. Guarantees are subject to the claims-paying ability of the insurer. My Annuity Store, Inc. does not advise clients on the purchase of non-fixed annuity products. The information presented here is not intended to be a recommendation to purchase a fixed annuity (MYGA), fixed index annuity(FIA), variable annuity (VA), registered index linked annuity (RILA), immediate annuity (SPIA), longevity annuity, or Qualified Longevity Annuity Contract (QLAC).
The contract features described may not be current and may not apply in the state in which you reside. Insurance companies often issue contracts which are ‘state-specific’. Insurance companies also change their products and information often and without notice. Annuities are subject to the terms and conditions of the specific contract issued by the insurer, are not FDIC or NCUA insured, are not bank guaranteed, may lose value, and are not a deposit. Please call (855) 583-1104 if you have any questions or concerns.
The information presented here is not a representation regarding the suitability of any concept or product(s) for an individual and it does not provide tax or legal advice. You should always consult your own financial planning, tax, and legal advisors to determine if a fixed annuity, fixed index annuity, annuity with long term care rider, immediate annuity, longevity annuity, or Qualified Longevity Annuity Contract are suitable in your financial situation.