The FSD Fixed Annuity Journal And Interest Rate Review
A monthly guide for insurance agents reviewing fixed annuity product quality and performance.

November 1999

Equity Index Annuity Returns Are
Up…Up…Up

      Clients whose anniversary were in October are seeing returns in the 30% area. During the same period the S&P was up about 31%. While we accept these types of returns as exceptionally high, we believe it shows what is possible even while we are protected against downside risk. These actual return numbers should provide you with a great story of safe yet outstanding returns in Equity Index Annuity products. The current volatile market bodes well for the averaging approach most E.I.A’s have been promoting since it softens the ups and downs of the market.

Check out our recommended E.I.A. product listing on-line or you can call us for details of this very hot product concept.

      It seems one of the best sellers recently has been the multiple year rate guarantee products from Jefferson Pilot, Reliastar, USG and Lincoln Benefit. These products match the interest guarantee term with the surrender term. This protects your clients against the "trust me" renewal rates.

Beware of 5 year guarantees with longer surrender periods. The final rates will not be known for many years. Clients like to know when and how much they will receive - guaranteed. If your clients have CD’s earning a low taxable yield, talk to them about a higher yield with tax deferral. A company like Jefferson Pilot (A++, AAA, AAA) offering a 6.60% guaranteed tax deferred rate for 5 years should be offered as a CD alternative. Rates, terms and commissions differ by company—check them out!

Page 2

Future Sales

Q. What is the biggest concern of seniors today ?

A. FSD – Give us a call!

Test case, Compare your best Immediate Annuity.

FSD believes that SPIA’s will be one of the fastest growing segments of the market because the "Baby Boomers" will start early (age 55) retirement in just 2 years. This will continue for the next 20 years at least. FSD provides SPIA’s which:

• Provide income for Life.
• Provide a partially tax-free income.
• Provide Joint & Survivor Life Income.
• Provide annual cost of living increases.
• Guarantee a return of at least the amount deposited.
• Are rated due to medical conditions (we have a  great new player in this area).
• Can be guaranteed up to 50 years.

Period Certains with 3 to 50 year pay-outs

(800) 373-9697 

FSD Financial Services

Your One-Stop Annuity Shop

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