John Hancock Annuities announced the release of a new fixed annuity product that provides owners with inflation protection.
The “Inflation Guard” product offers principal protection through a fixed interest rate that is guaranteed through the first year of the contract.
After the first year, the interest rate is floating. This floating rate is based on a rate of inflation that is derived from the year-over-year change in the Consumer Price Index-Urban or “CPI-U.”
A guaranteed margin is added to this inflation-based rate. The margin is determined when the contract starts.
The interest rate has a floor or minimum as well as a cap or maximum. The floor is never less than zero. Interest rates are determined on a weekly basis by John Hancock.
Source: Market Watch
- Log in to post comments
