How Foundations Annuity Addresses Volatility

An Index that uses the inverse correlation between volatility and market performance

This investment strategy aims to deliver consistent performance even in unstable and low-interest scenarios by focusing on the 100 least volatile stocks in the S&P 500. By incorporating a risk management technique, this strategy is able to maintain a stable volatility level of 5%. Additionally, it employs a 5% Daily Risk Control mechanism, adjusting allocations between the index and cash based on the prevailing volatility levels, favoring index investments during low volatility periods and cash during high volatility times.

Having the option to choose crediting strategies benchmarked against a Low Vol Index can be helpful, especially in periods of market turbulence. With the S&P 500 Low Vol Index Accounts within Foundations, clients have access to both an Annual and 2-yr Point to Point Index Account from which to receive interest credits. Both these crediting strategies offer uncapped interest potential (annual spread applies), which in some cases, could provide greater interest potential than a capped account. 

Learn more ab out the S&P 500® Low Vol Index with the client-friendly materials at right, or watch and share our short video below that explains the Index construction and how interest credits are applied.

S&P 500 Low Volatility Daily Risk Control 5% Index Account

Find out how interest is credited using this uncapped strategy designed to manage market volatility (an annual spread applies).

 

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SELLING FOUNDATIONS

The first steps in selling Foundations:

  1. Check with your Broker-Dealer to see if Foundations is approved
  2. Get Appointed with Security Benefit
  3. Complete Product Training

FIAs don’t have to be complicated, and with Foundations, we’ve created content to help make it easier to educate your clients on how the product works. From client-friendly presentations to sales ideas and direct mail pieces to help you generate interest, use the resources linked below to start conversations with your clients.

Selling Foundations

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FINANCIAL PROFESSIONAL USE ONLY — NOT FOR USE WITH CONSUMERS
 

The Security Benefit Foundations Annuity (form 5800 (11-10) and ICC10 5800 (11-10)), a fixed index flexible premium deferred annuity is issued by Security Benefit Life Insurance Company. Product features, limitations and availability may vary by state. In Idaho, Foundations is issued on form ICC10 5800 (11-10).
 

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Annuities are not FDIC or NCUA/NCUSIF insured; are not obligations or deposits of and are not guaranteed or underwritten by any bank, savings and loan, or credit union or its affiliates; and are unrelated to and not a condition of the provision or term of any banking service or activity. 

The “S&P 500 Index,” “S&P 500 Low Volatility Daily Risk Control 5% Index,” “S&P Multi-Asset Risk Control (MARC) 5% Index,” and “S&P 500 Factor Rotator Daily RC2 7% Index” are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and have been licensed for use by Security Benefit Life Insurance Company (SBL). S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”), and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by SBL. The Foundations Annuity is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of purchasing the Foundations Annuity nor do they have any liability for any errors, omissions, or interruptions of the above named indices.
 

Fixed index annuities are not stock market investments and do not directly participate in any equity, bond, other security, or commodities investments. Neither an index nor any fixed index annuity is comparable to a direct investment in the equity, bond, other security, or commodities markets.

SB-10008-81  |  2024/02/02