Hybrid Indexed Annuity

These products provide consumers with higher index-linked upside potential relative to traditional fixed indexed annuities.

Hybrid indexed annuity. Typically this means if you buy an index annuity you are guaranteed to receive at least a certain amount usually at least 875 percent of your principal back plus 1 to 3 percent interest. Contributing to a variable annuity or hybrid index annuity creates long term tax-deferred growth and future income potential. RILAs provide exposure to a published stock market index along with a level of protection from market loss.

Hybrid Annuity Myth - Hybrids Are Fixed Index Annuities. More and more insurers are designing and offering hybrid annuities also referred to as. Hybrid annuities are one way of achieving lifetime income.

A hybrid income annuity is in essence a type of insurance company investment which allows you to assign your assets to a fixed annuity. The catchy phrase hybrid annuity is easier to type so we can go with that from here. Indexed annuities are the least well known type of annuity.

One type of hybrid annuity is a fixed indexed annuity with a guaranteed lifetime income rider. Created to give investors a hybrid of the risk and return of fixed and variable they provide investors with the opportunity to invest in a stock index without the full risk. Use this calculator to see how a variable annuity or hybrid index annuity might fit into your retirement plan.

Fixed Index Annuity. Index annuities carry whats called a guaranteed minimum return. This state insurance government guide is a regulatory document produced for the benefit of annuity consumers and does not endorse any company.

But before trying to understand how it works you must first understand how a basic fixed index annuity works. A index annuity is a fixed index annuity that earns interest or provides benefits that are linked to an external equity reference or an equity index. Here we explore many of the options which make indexed annuities unique.