6.00% Simple vs 5.25% Compounding Interest | Fixed Annuities True Cost Of Insurance | Risk & Reward

There is more to a Fixed Annuity than just the numbers on a rate sheet. 6.00% Simple Interest = 5.39%
5.25% Compounding Interest = 5.25%

Doing the math 5.25% compounding interest rate:
$645,773.95 Future Value
$500,000.00 Present Value
5 Year Term
$0.00 payments
= 5.25% Interest Rate Yield To Term

Doing the math 6.00% simple interest rate:
$650,000.00 Future Value
$500,000.00 Present Value
5 Year Term
$0.00 payments
= 5.39% Interest Rate Yield To Term

6.00% sure sounds better though!

What else do I look at before offering or marketing a product, watch and see!

| Financial ratings history
| Contractual minimum guarantee
| Surrender / Withdrawal charges
| Product features
| Free withdrawal provisions & beneficiary death benefits

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