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    David RacichPRO
    Fountain Hills, Arizona
    There are three basic crediting methods used by non-qualified tax deferred annuities. The first is fixed interest rate crediting methods of 5, 7 and 10 year guaranteed rates. Sentinel has a leading 5 year fixed interest rate. The second is the use of indice crediting methods, both domestic and foreign. Genworth has an innovative earnings “rollover” product. The third is separate sub accounts which use equity and bond instruments in variable annuities. Because these accounts are market driven you can lose money. Currently the variable annuity feature of the income rider is attractive for investors with an established risk tolerance. There are many competitive variable annuity contracts available. Prudential is one of the leading manufacturers of variable annuities.   

    Answered on July 5, 2013
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