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In planning for your financial future, there are very few guarantees.
And finding a balance between growing your retirement assets
and protecting them from market volatility may cause uncertainty.
Midland National can help.
Introducing the IndexMax ADV fixed index annuity.
IndexMax ADV offers two ways to accumulate:
through annual performance credits
and a term participation credit.
It’s able to offer this accumulation potential through its layered crediting strategy.
Here’s how it works.
Consider a premium payment of $100,000 with a 7-year term.
Your premium is allocated to one underlying index
and the annual performance credit rate, or APC, is set at 7.50%.
This rate is set at the beginning of the term,
and will not change for the first 6 years.
Over the course of the 7-year term, the index will likely go up and down.
For this example, let's say this is how the index preformed.
What does this mean?
In year 1, since the index went up
- regardless of how much -
7.50% of your accumulation value at the start of the term is applied to the current accumulation value.
The same is true in year 2 when the index went up again.
In year 3, the index went down.
The 7.50% is not applied to the accumulation value – but no value was lost.
Years 4, 5, and 6 follow the same process.
7.50% is added each year when the index goes up.
No value is lost when the index goes down.
In the last year of the term,
the annual performance credit does not apply.
A term participation credit, or TPC,
is added to your accumulation value if the index performs positively over the 7-year term.
Here’s how the TPC is calculated:
To help smooth out market fluctuations at the end of the term,
the monthly average in year 7 is used to determine the ending value.
The ending value could be higher or lower than the actual value of the index at the end of year 7.
The difference between the ending value and the starting value is determined.
In this example, the difference was 40%.
100% of that difference is credited to the accumulation value.
So, in this example,
40% of the accumulation value at the start of the term – or $40,000 is added.
Over the 7 year term,
the accumulation value grew from $100,000 to $170,000 in seven years.
$30,000 from the annual performance credits
and $40,000 from the term participation credit.
The layered crediting strategy
is just one of the ways IndexMax ADV
can help take your financial future to the MAX.
Ask your financial advisor
how an insurance product could fit within your overall portfolio.