Suitability

FAQ

Glossary

KNOW HOW FIXED ANNUITIES FIT INTO YOUR FINANCIAL PLAN

Ultimately, the decision whether an Annuity is suitable rests with the consumer, but it's also the responsibility of the insurance agent and Standard Life of Indiana to provide tools to help assure the client is making a good choice. Standard Life Insurance Company of Indiana has initiated a suitability questionnaire which is completed as part of the application process. This suitability checklist helps to put the purchase process into a larger context and reflects on the overall financial situation of the consumer. The goal is that by answering the questions on this form with the agent, the specific needs of each and every customer are reviewed at the time of a new annuity purchase assuring our customers’ best interests are being served.

Fixed Annuities are financial products that can serve a variety of needs. These contracts, assuming the funds are held to the end of the Guarantee Period, may provide a safe haven for growth with important guarantees related to principal. Because returns are not taxed until withdrawn from the contract, Annuities enjoy the advantage of triple compounding. Interest is earned on deposits. Interest is earned on interest. Additionally, interest is earned on money that would have gone to pay taxes, if that money had been placed in a product that is currently taxable.

Within a well-developed financial plan, Annuities may help reduce the portion of income that is currently taxable, deferring those taxes to retirement when a client’s income tax bracket may be lower. They also aid in the inter-generational transfer of wealth since, Annuities avoid probate and pass directly to named Beneficiaries.

Most personal financial plans have different categories of money set aside to serve different purposes; readily available cash, both long and short term investments, and emergency funds. Annuities should be considered a long term commitment. Working with an agent, customers can determine exactly what they want to accomplish with an Annuity. Standard Life of Indiana's Annuities are designed to provide customers with control over almost every aspect of their contract. Interest rate or index guarantee periods and withdrawal options can be elected to optimize the Annuity's guaranteed return. Again, it's important that consumers considering an Annuity have a good understanding of their own situation.  

Before deciding on an Annuity, consumers need to clearly identify their financial goals.

• What is my overall financial strategy?
• What does the purchase of an annuity need to provide?
• Do I need growth, income or some combination of the two?
• If I purchase an annuity, will I have sufficient liquid assets to deal with emergencies?

During the review process with your agent, there are other questions to consider:

• Will the contract provide a balance of liquidity and interest I need?
• Are the Surrender Charges and Market Value Adjustment provisions clear and fully understood?
• What are the options at the end of the Guarantee Period, at the contract maturity or at my death?

It is our hope that our customers will be well informed and satisfied with the contracts they purchase from us. At Standard Life of Indiana, our mission is to provide Fixed Annuities with the highest customer value, offer industry-leading service and always remember that we owe our greatest loyalty to our customers.

If you have any additional questions, please call Customer Service at (800) 222-3216.