Are You Serious? A 9.32% Annual Pt-to-Pt Cap on the S&P 500

1 Step 1
Complete the form to access the chart.
First Name
Last Name
Zip Code
I am an insurance producer

Pt-to-Pt Cap


Given this environment, how easy would it be for you to sell an FIA that had an annual point-to-point cap of 9.32%? (3% higher than the highest cap available today)

Most advisors seem to prefer a cap rate strategy over a participation rate strategy because most think having a hard number like 6% sounds much more appealing to a prospect than saying you’ll get 50% or 55% of whatever the number ends up being at the end of a year.

On the surface that does seems to make some sense until you run the numbers and reveal this…

An FIA with a 55% participation rate linked to the S&P 500, over the most recent 10 years would have produced a virtually identical dollar value as a 9.32% annual point-to-point cap rate!

In others words a… 55% Par = 9.32% Cap! 

Now here’s the question….

Since a 9.32% cap is not available (remember that’s at least 3% higher than the highest FIA that’s being offered today)…but there is an FIA that is available with a 55% Par Rate (equivalent to a 9.32% Cap), isn’t this something you should be showing to your perspective clients?

We’ve prepared a chart to show you how a $100,000 premium using a 55% par rate (no fee or spread) would have done for the most recent 10 year period and compared it to a 9.32% cap for the same period so you could see the proof for yourself . 

Show Me The Chart! Complete the form for immediate download.

For Financial Professionals Only