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 should take a closer look at the Summit 6 contract from Great American.
Contrary to many other variable index annuity contracts, Great American has designed their Summit 6 variable index annuity contract with participation rates on both the upside and downside, rather than the typical 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 as high as 78% of any growth and 50% of any losses, that means your client keeps 78% of what they earn while eliminating 50% of the risk involved in investing in the S&P 500. I don’t know about you, but almost 80% of the upside in exchange for 50% of the risk on the downside sounds like a pretty good deal to me. We are giving up a little potential on the upside for a lot of protection on the downside. Hence, slow and steady wins the race. 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