Fixed Indexed Annuities & Indexed Universal Life

[scagnt83]

Allianz illustrations can give you some insight in what returns would have been over the past 30-40years (broken down by the year) for each of the account options.
It will take into consideration caps/partic and tell you what the returns would have been. Its not perfect but it might help.

LFG and ING have illustration software that will do this as well.

 

[dgoldenz]

The cap rates on EIA's right now are so low that the likelihood of anyone seeing 7% average returns is minimal. Only way to do that right now is to choose a monthly additive crediting method (which carries the most risk of a 0% return) and hoping for the best. Point to point annual caps right now are 4-5.5% on most products. Just a couple years ago they were 10-12%. Most companies drastically reduced caps and guaranteed rates this week.

That said, anyone who bought an EIA before the market crash could probably care less.

 

[dolcemango]

Doesn't the second question cancel out the first?

Yeah, but I wasn't 100% sure that they don't offer it. I've never worked for them and don't know their product line.
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They love to bash indexed products.. I feel that there are two main reasons behind it.

First, it takes away from their core products and marketing position.

Second, it requires that they take on more risk by having to hedge for possible large index gains.
Which will inherently create a slight decrease in their stability/ratings.

Come to think of it, both reasons really go hand in hand... they pride themselves on safe, absolute guarantees with stellar ratings. And they dont want to risk that business model at all.

But because of competition and the improvement of indexed contracts, I would guess that eventually they will enter the market.

Very useful information. Thanks! I've gotten an offer to join New York Life, but I think what you're saying is what is stopping me from joining them right now.