Index-Deferred Fixed Annuities

Index-linked deferred fixed annuity products typically appeal to people who want to protect their principal and have the chance to benefit from higher potential earnings linked to a stock-price index—without the risk associated with the stock market.

Technically, an index-linked deferred fixed annuity is a contract between you and an insurance company. Basically, it offers the safety and guarantees of a traditional fixed annuity.

• To purchase, simply make a lump-sum payment or a series of payments during the accumulation phase (the time when you contribute money), depending on the product.

• Although index-linked deferred fixed annuity products are considered to be fixed deferred annuities and feature all the benefits that fixed annuities have to offer, they are different from other fixed annuities in the way they credit interest.

  • Most fixed annuities credit interest calculated at a rate set in the contract.

  • Index-linked deferred fixed annuities, on the other hand, credit interest using a formula based on changes in the particular index to which the annuity is linked.

• All guarantees are subject to the claims-paying ability of the issuing insurance company.

The WNL POWER Index Annuity