If you are a believer of the thought process that long term growth is not achieved by having that big year here and there, but is achieved by smoothing out the ride and protecting against big losses, then you might want to take a closer look at the Summit 6 contract from Great American.
Rather than putting some type of upside cap and downside maximum loss protection on an account like a lot of other variable index annuities do, Great American has decided to “go into business with your client” by sharing in both gains and losses.
What I mean by “go into business with your client” is that Great American has designed their Summit 6 variable index annuity contract with participation rates on both the upside and downside, rather than having a set growth cap number on the upside that is tied to a maximum loss protection number on the downside. With the current participation rates in the S&P 500 Index option being 80% of any growth and 50% of any losses, this makes Great American a 50/50 partner in bad times and an 80/20 partner in good times with your client being the majority owner. I don’t know about you, but 80% of the upside in exchange for 50% of the risk on the downside sounds like a pretty good deal to me.
For more detailed information on the Great American Summit 6 contract, or to discuss a potential opportunity, please contact Brad Latta at 954.288.7098. For an example of how this approach stacks up to a “cap/buffer” or “cap/floor” variable index annuity approach, please click on the link below. Thanks!
Contact Micah Hesting for more information:
Relationships/Business Development Strategist