Equity Indexed Annuities- Short Term Surrenders.
When shopping for an EIA consider a short term product. Shorter terms allow for the freedom to re-evaluate financial situations sooner. Some insurance companies are now offering contracts with durations as short as three years.
We all want to opportunity to benefit from market growth, with no downturn risk on a tax-deferred basis. I also like the idea of being able to change my mind, as far as products, in the shortest amount of time possible.
Short term EIAs are an excellent choice not only because of the growth with no loss, but the fact that they guaranty and income stream that cannot be outlived. EIAs have a better chance of keeping up with inflation that CDs and traditional fixed annuities. If you need to play catch up and offset previous losses, this is a very viable option.
Many of the new generation EIAs are very straight forward and not at all difficult to understand. The easier they are to understand the more apt we are to buy, and the insurance industry knows this.
Most of our financial goals involve accumulation, which makes the tax-deferred growth of an EIA a very attractive benefit. On the other hand we are also looking for flexibility. Being wary of market ups and downs is natural. EIAs protect us from losses that other products cannot deliver. You will lose money in financial products that have a potential for loss.
Shorter contract durations give us the power to decide if our financial choices today are still the right choice tomorrow and for years to come.