Key features and who it’s best for
- Lifetime income
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Provides a guaranteed income stream, with the potential for increased income based on index performance.
- Minimum purchase payment
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$25,000.
- Surrender charges
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Up to 7 percent for withdrawals within the first six years.
- Annual fees
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Base contract fees range from 1.20 percent to 1.45 percent plus investment expenses. However, the prospectus notes that the lowest annual cost for a $100,000 initial premium payment is $3,416, which works out to a 3.4 percent annual fee.
- Who it’s best for
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People with a long-term investment horizon who are willing to accept complex investment strategies and market risks.