Index-linked variable annuities are insurance plans that use market gains to achieve capped growth but also use pre-established protection methods to shelter against a market decline.
Capital Choice is a tax-deferred annuity that incorporates multiple protection options for advisors to create a strategy that suits their clients’ risk tolerance. The protection options include multi-floor (stop-loss) options, buffers or a combination of the floor and buffer options, says Great-West. The buffers allow Great-West to absorb a portion of negative index performance before Great-West puts a negative strategy credit on the account. Advisors can alter the strategy on the contract’s anniversary.
Advisors can choose one or more index-linked options.