Should You Buy a Rate-Lock Annuity? Watch This First

Have you been offered a rate-lock annuity? Before you sign anything, you need to hear this.

In this episode of the Atlas Annuity Podcast, Marty Becker — owner and founder of Atlas Financial Strategies in St. Louis, Missouri — breaks down exactly what a "rate lock" on a fixed indexed annuity really means, and why it's not automatically the better deal most people assume it is.

Marty explains the basic FIA story: your money isn't directly invested in the market, so if the index falls, you don't lose value — but if the index rises, the insurance company credits interest based on a formula. The problem? The cap, participation rate, or spread you're quoted today may not be the same one you get at your next anniversary. That's where "rate lock" products come in — but the term gets used in at least three completely different ways, and most people don't know which one they're actually being offered.

In this episode, you'll learn:

• Why insurance companies change crediting rates in the first place
• The real difference between a new business rate lock, an index lock, and a cap rate lock
• Why a rate lock guarantees only ONE part of the formula — not your actual return
• The exact questions to ask your advisor before agreeing to a "locked" rate
• A breakdown of how annual point-to-point crediting actually works, with real numbers

If you've been handed an illustration with the words "rate lock" on it, this episode will make sure you know exactly what you're signing up for before you commit a dollar.

Have questions about your own annuity or retirement strategy? Book a call with Marty today.