With so many annuity and insurance carriers to choose from, we carefully seek out quality-rated product partners that provide competitive solutions which best address the goals and needs of our clients. More importantly, working with Kella Financial Partners provides you with access to products and resources from some of the world’s leading financial product providers.
A multi-year guaranteed annuity (MYGA) is a type of investment where an insurance company will enforce a contract which will guarantee that the investment will earn a rate of compound interest for a specified number of years, known as a term. MYGAs grow funds at a fixed interest rate for a set period of time, and taxes are deferred until funds are distributed.
A single premium immediate lifetime annuity (SPIA) is a type of investment contract made with an insurance company whereby a sum of money (also known as premium) is paid up front, and the insurer will pay out a certain amount of money periodically for the remainder of the life of the contract or the policyholder.
A single-premium deferred annuity (SPDA) is a type of annuity contract that is established when a single lump-sum payment is made by the policy owner. The annuity grows on a tax-deferred basis until distribution. SPDAs can be either a fixed rate or a variable rate contract.
A fixed indexed annuity is a type of annuity whose returns are tied to a specified equity index (such as the S&P 500). Insurance companies will typically offer the provision of a guaranteed minimum return, so even if the related index has negative returns, the annuitant will have limited downside risk.
An indexed universal life insurance policy is an insurance product that allows the policyholder the opportunity to allocate the cash value amounts of the policy to either a fixed allocation or an equity index allocation, such as the S&P 500 and the Nasdaq 100.
Indexed universal life policies allow policyholders to decide the percentage of their funds that they wish to allocate to fixed and indexed portions. Also, these types of universal insurance policies will typically guarantee the principal in the fixed portion, but may cap the maximum fixed rate that a policyholder will receive.
A type of life insurance contract in which the policyholder pays regular premiums which goes towards equity growth in a savings account where dividends and interest are allowed to build on a tax-deferred basis. Whole life insurance contracts have both an insurance component and an investment component. The insurance component pays a stated amount (or death benefit) upon the death of the policyholder. The investment component will accumulate a cash value that the policyholder can access to withdraw or borrow against.
Term life insurance is a type of life insurance that provides coverage at a fixed rate of payments for a set period of time, known as the term. After the term is concluded, coverage at the previous rate of premiums is no longer guaranteed and the policyholder must either give up coverage or potentially obtain further coverage. If the life insured dies during the term, the death benefit will be paid to the beneficiary.
A market-linked CD (MLCD) is also referred to as an equity-linked CD, market-indexed CD or simply an indexed CD as well. It is a specific type of certificate of deposit that is linked to the performance of one or more securities or market indexes, like the S&P 500. Additionally, the term length is usually much longer, with periods ranging over many years rather than several months.
