All of the polies we use have a built in Floor to protect you from losses. You cannot lose money due to market downturns.

Floors can vary but the most common floor is 0%. This floor guarantees your retirement dollars against loss. If the stock market is down 10%, 20% or 30% for the year, your policy will show a 0% interest for that year.  The trade-off for the safety is a Ceiling or maximum cap on gains. Caps can vary on different policies and can change.   There are also strategies that are uncapped. Also called the Monthly Average. Instead of a cap the insurance company deducts a spread from any calculated gain.

We never know what the stock market is going to do and big gains right now are very unlikely. However, the market was doing very well from 2004 to the middle of 2007. During that time we had clients that earned very high interest rates without market risk in these policies.