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Filed Under:Annuities, Sales Strategies

The Standard offers single premium deferred indexed annuity

Strategic Choice Annuity 7 is tied to J.P. Morgan's U.S. Sector Rotator 5 Index

The annuity offers the ability to receive interest based on increases in an index with dynamically adjusting investment allocations.
The annuity offers the ability to receive interest based on increases in an index with dynamically adjusting investment allocations.

Standard Insurance Company (The Standard) is now offering Strategic Choice Annuity 7, a single premium deferred indexed annuity that provides returns based on the performance of J.P. Morgan’s U.S. Sector Rotator 5 Index (Annuity Series). The company said the annuity combines the strength of an annuity contract with the ability to receive interest based on increases in an index with dynamically adjusting investment allocations.

 “Strategic Choice Annuity 7 is an excellent option for clients who are interested in the growth potential of the J.P. Morgan U.S. Sector Rotator 5 Index, with the assurance of a Guaranteed Minimum Accumulation Benefit,” says Rich Lane, senior director of individual annuity sales and marketing at The Standard. “This innovative product is structured to provide safety for clients who want to grow their assets for their post-retirement years.”

Strategic Choice Annuity 7 uses a point-to-point account with a seven-year index term. Unlike the typical index annuity which credits interest annually but limits those credits by a cap, the Strategic Choice Annuity 7 has no cap and credits interest at the end of seven years, the company said in a press release. In addition, Strategic Choice Annuity 7 includes a guaranteed minimum accumulation benefit (GMAB), which guarantees that the annuity value will at least reach the guaranteed value of 107 percent of the original premium after seven years.

“Many clients today are looking for a tax-deferred annuity that ensures their premium is protected, while still providing attractive interest crediting potential,” says Lane. “The GMAB of the Strategic Choice Annuity 7 provides peace of mind to purchasers that, even in a down market, his or her annuity fund will have earned at least the guaranteed minimum in interest growth.”

In addition, Strategic Choice Annuity 7 offers an innovative way to accumulate growth by leveraging the J.P. Morgan U.S. Sector Rotator 5 Index, which targets investment allocations based on market conditions. Each month, the index adjusts to include U.S. sector funds that have exhibited the strongest performance.

“The Index uses a momentum-based strategy, based on the proposition that assets with recent positive performance are more likely to continue such positive trends in the near future,” says Lane. “This helps manage risk and reduces the potential for large index declines by allocating weights to selected sector funds.”

Numerous liquidity provisions are built into Strategic Choice Annuity 7, including the ability to make withdrawals without a surrender charge after the first year if the owner is diagnosed with a terminal condition or is confined to a nursing home.

This product will be distributed by The Standard, select marketing organizations through independent brokers, financial institutions and broker/dealers. 

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Nichole Morford
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