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Variable Annuity Plan – Is There a Catch?

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By McKenzy Bowers | June 21, 2006

What’s a Variable Annuity Plan and is one right for you? Read on and find out.

Twice in the last 6 months, I’ve been asked to evaluate and comment on a variable annuity currently being offered by AXA Equitable.  The story many consumers are hearing from their sales force is that, regardless whether or not the underlying funds perform well, your “guaranteed” a minimum return of 6% per year.

While this is hardly the whole truth, in defense of the AXA reps that are out there selling this stuff, no one can realistically explain each and every line in a securities prospectus, which can often include dozens of pages of fine print.  That being said, since the 6% guarantee is something that has come up twice in 6 months, the question is, “Can this product deliver a 6% guarantee while at the same time provide the potential upside of better performance if the underlying mutual funds within the product do better than that?”

The short answer is NO.  So, what’s the catch?  How can they say it does, when it doesn’t?

For over 30 years, AccuQuote has been helping customers save a ton of money on their life insurance and other products. We offer many different types of life insurance options, including Term Life, Permanent Life, Disability Insurance and so much more – including annuities. AccuQuote has been mentioned in such media outlets as Kiplinger’s, The Wall Street Journal, Crain’s, The New York Times, Consumer Reports, Forbes and more.

There are no insurance companies “pulling our strings.” Our fierce independence means you’ll get the best values when we shop the market on your behalf. We only represent the top-rated, brand-name life insurance companies that you know and trust.

For more information about annuities or any other life insurance product, call AccuQuote at 800-442-9899.


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