Security Benefit is offering a special product that offers unlimited gains without risk to principal. All fixed indexed annuities offer the ability to grow assets without risk to principal but they all have limits on upside potential. Some cap the growth potential on an annual basis while others only pass a percentage of the growth to the client. The Security Benefit Total Value Plan changes all of this.
The total Value offers income riders and death benefit riders and even throws in an 8% bonus. A number of products offer the same benefits however. What makes the Total Value unique is that the accumulation account uses the TVI index and provides 100% of the gain on a 5 year point to point strategy. In other words, you put money in on day 1 you get 100% of any gain in the index 100% vested at the end of year 5.
The TVI index is constructed of 24 highly liquid futures contracts across physical commodities , global currencies, Energy, Grains, Precious Metals, Industry Metals, Softs (Cocoa, Coffee, Cotton, Sugar) and live stock. Principal on this contract is 100% guaranteed which allows the contract holder to be more aggressive with the TVI account without worrying about losing a nest egg. For more info on the TVI click here
Historic results show the worst 10 year average annual return has been 5.08% per year (This does not include the 8% bonus) while the best 10 year average return has been 8.99% (This does not include the 8% bonus)
The product has been available for about 4 weeks and has taken on an unprecedented amount of assets already. The downside is that Security Benefit has a limit of assets it wants to take on and will close this product to new money once the hit the threshold.
If you want more information, please email Edward Crowe at [email protected] or call 203-796-5403