EIA schedules 'free-out' periods.Conseco Insurance Co. has launched Conseco Command, a single-premium equity-indexed annuity equity-indexed annuity A contract with an insurance company that promises periodic payments keyed in a specified manner to a stock market index. Unlike variable annuities, equity-indexed annuities specify a guaranteed minimum return that is typically 3%. that provides predetermined pre·de·ter·mine v. pre·de·ter·mined, pre·de·ter·min·ing, pre·de·ter·mines v.tr. 1. To determine, decide, or establish in advance: "free-out" windows for owners to access funds without surrender charges Surrender Charge A fee levied on a life insurance policyholder upon cancellation of his or her life insurance policy. The fee is used to cover the costs of keeping the insurance policy on the insurance provider's books. . After four years, owners can withdraw all or part of the cash value. Similar windows occur after eight years and 12 years. Surrender charges end after year 16. Conseco begins paying a persistency bonus of 1% a year from the beginning of year seven through year 16. Owners may annually change the allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of money among four growth options. A death-benefit rider guarantees beneficiaries will receive up to 200% of contributions less withdrawals. |
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