Hybrid Indexed Annuities
- designed for investors willing to accept limited risk of principal loss
- may offer higher annual maximum interest potential than Equity Indexed Annuities in exchange for exposure to some degree of potential downside risk
- depending on the contract, potential annual losses may be limited to a stated maximum percentage, or some percentage of the total decrease in the index may be covered by the annuity company, with the remainder charged to the contract value
- may be free of annual contract or investment fees
- surrender charges and/or market value adjustments may apply to withdrawals for a specified number of years after contract issue
- annuity contracts usually allow a portion of the contract value (typically 5%-10%) to be withdrawn each year, without surrender charges
- annuities are issued by life insurance companies, and are not guaranteed by FDIC insurance. Annuity guaranteed values are backed by the claims-paying capacity of the issuing insurer (click here for links to information about insurer safety).
- state insurance guarantee associations may provide protection in the event that an individual insurer is unable to fully honor their contractual obligations to an annuitant (click here for more information).
Click here for information about Voya PotentialPLUS Annuity. Voya covers the first 10% of any price decrease in the index each contract year.
Click here for information about MEMBERS® Zone Annuity, which allows you to choose a maximum annual potential loss between 0 - 10%. Choosing a higher potential downside risk results in a higher annual maximum interest rate cap.