ESG Index comes to a Fixed Indexed Annuity!

Fixed Indexed Annuities guarantee that you cannot lose money due to market performance. That quality makes them an option for your Serious Money.

When the index you select gains in value over the period selected, you are credited with interest according to the formula your specific annuity offers. Today's newest Fixed Indexed Annuities offer options with NO CAP on the amount of interest you can earn.

Occasionally new indexes are offered and today one based on ESG became available.

What is ESG and why does it matter? ESG (Environmental, Social, Governance) has become a major issue of interest in the modern corporate world. Usually associated with things like climate change, pollution and resource scarcity, in reality, ESG covers a much wider spectrum of socio-economic issues like employability practices, diversity, social and cultural ethics, data security and sustainability.

One insurance company, Atlantic Coast Life, today added the Credit Suisse ESG Macro 5 Index as an option within one of their indexed annuities.

According to Credit Suisse, "The index offers exposure to components across regions and asset classes in an attempt to mitigate market unpredictability as well as benefit from opportunities across different market cycles and geographies".

This new index's performance over one, two or three-years (your choice) is one part of calculating how much interest (if any) will be credited to your annuity on the anniversary. If the Index goes up 5% over one year, the 5% is one part of determining how much interest is added to your annuity.

The second part of the interest calculation is called the participation rate. The annuity at Atlantic Coast Life offers participation rates that multiply the interest the annuity holder will received.

For example, the option where interest is calculated annually offers a participation rate of 182%. That means if the index goes up 5% over the year, your annuity will receive 9.1% interest.

The interest paid to you becomes part of the locked in principal amount and can't be lost if the index goes down any time in the future.

Fixed Index Annuities often have a minimum premium of $10,000 and can be funded with qualified money (IRAs, SEPS, etc) or money from savings accounts.