^
magsbag, I want to clear up a few more things. I agree with most of ucodegen’s post with a few exceptions; and before I go on, I have to say that you’re not doing your profession any favors by over reacting and chupee or taking on a condescending tone.
2) I have not seen any recent variable annuities with ridiculously high surrender charges like 25%. 10% at a maximum and usually only with bonus products. They typically start at 8% and slowly decrease. The products with obscene CDSC schedules are the EIAs (equity indexed annuities).
3) The 7% growth is guaranteed in this Allianz VA as other VAs from other insurance company. This is growth before expenses from my understanding without reading the prospectus; it’s typical. Again, the important part here is that the growth is to the BENEFIT BASE, NOT YOUR ACCOUNT VALUE. Because of, and if you choose, this guarantee, they’ll usually restrict your subaccount selection.
1) Principal is guaranteed while you’re alive usually only if you select what’s called a GMAB rider (and there are terms and stipulations with this). Otherwise, principal is only guaranteed as a death benefit to your beneficiaries. Again, I’m only speaking about VAs here since that’s your question.
2) If you choose one of these relatively new GWLB riders, you will have level payments. For instance, 5% of the BENEFIT BASE for life. There’s that term again.
I pretty much agree with the rest of ucodegen’s post. The product and guarantees are too complicated for a message board. You need to read the prospectus, see various illustrations, talk to several advisors, etc. Every one of the insurance companies named in this topic has some sort of GMAB, GMIB, GMWB, GWLB rider if you’re looking for guaranteed growth, income, principal protection etc, but each have their own calculations, stipulations, advantages, and drawbacks.
Rich won’t chime in because I know it’s prohibited by his compliance department. You might want his opinion or another local independent advisor. My only opinion here is to be wary of advisors selling proprietary products.
Don’t take anything I’ve said as gospel or advice. 🙂 Just trying to help with my limited knowledge.
