Security Benefit has expanded its lineup of indexes for its Foundations Annuity by two to create additional diversification, the firm announced recently.

The Topeka, Kan.-based Security Benefit Life Insurance Company, a subsidiary of Security Benefit Corp., now offers five indexes designed to perform in varied market conditions.

“By employing an index as an interest crediting option, a fixed income annuity like Foundations has the potential to credit interest when the index goes up,” Toby Leonard, associate vice president and head of product development for Security Benefit, said in a statement. “But if the index goes down, the principal and previously credited interest are locked in and will not decline as contract owners do not actually have any direct participation in the markets.”

The new indexes are designed to help address challenges posed by changing economic conditions, Security Benefit said.

The S&P Multi-Asset Risk Control 5% Index is designed to perform well in multiple market environments, including a growth economy, rising rates, falling rates, high volatility, high inflation, and a weak U.S. dollar, with a goal of a 5% level of volatility, Security Benefit said.

It is designed to track the performance of a risk-weighted portfolio across equities, commodities and fixed income. If some channel in the market experiences a downturn that affects the performance of a specific asset class, the multi-asset construction of the index allows for a systematic re-balancing to less volatile asset classes. If all asset classes are volatile, the risk control aspect allows for reducing market exposure and increasing the allocation to interest free cash.

The second new index, the Morningstar Wide Moat Barclays VC Index is designed to provide stable returns based on the long-term strength of its selected stocks across multiple sectors. The multi-asset class index aims to provide stable returns across different market environments designed to maintain its annual volatility level at or below 7%, Security Benefit explained.

Advisors can use the Foundations Annuity to help their clients meet their retirement goals with tax-deferred accumulation potential and flexible withdrawal options that can play a part in legacy planning, Security Benefit said.

“We were a pioneer in offering custom indexes within a fixed income annuity, and these additions to our index line-up continue that legacy,” Leonard said.